Prime Retail Investment 93-99 High Street, Yarm Stockton on Tees Ts15 9Bb Prime Retail Investment 93-99 High Street, Yarm, Stockton on Tees, Ts15 9Bb 2

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Prime Retail Investment 93-99 High Street, Yarm Stockton on Tees Ts15 9Bb Prime Retail Investment 93-99 High Street, Yarm, Stockton on Tees, Ts15 9Bb 2 PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 1 PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM STOCKTON ON TEES TS15 9BB PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 2 Investment Summary • Freehold multi let retail and ground rent investment • Located in the affluent market town of Yarm • Excellently situated in a prime patch opposite Sainsbury’s and Barclays Bank • Comprising 4 ground floor units with the residential ground rents • The retail element extends to net internal area of 4,637 sq ft • The residential leases have only 68 years unexpired, providing the opportunity for the landlord to extend for a capital premium • Fully let producing £176,120 per annum • AWULT in excess of 10.5 years certain (6.5 years to break) • Seeking offers in excess of £2,350,000, reflecting a NIY of 7.05% having allowed for purchasers’ costs PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 3 Brafferton High St A19 Coatham A66 Mundeville Middlesborough Little Stainton Yarm Back Ln Stockton-on-Tees A1046 A1(M) A68 A1085 A66 Beaumont Hill Barmpton Bishopton Ln Norton Back Ln A66 A1045 A172 A68 Elton Sadberge Durham Ln A167 A66 Long Newton Great Burdon Thornaby Long Newton Ln Marton-in-Cleveland A66 Yarm Rd Darlington Memorial Hospital A174 Newcastle H A174 B1365 Yarm Darlington Yarm Rd A135 A67 Coulby A67 B1380 Stainton A67 Oak Tree Newham Leeds A67 Manchester A167 Middleton St George Durham Tees Valley A66 International Airport River Tees Middleton Hurworth High Leven Newby One Row YARM Birmingham Moor Aislaby Rd A1044 Hilton Neasham Rd A67 Low Dinsdale Green Ln River Tees London Hurworth-on-Tees Neasham A19 Middleton-on-Leven Seamer Croft-on-Tees B1265 Kirklevington Low Worsall A67 Girsby Picton Location Yarm is a busy and affluent Georgian market town situated 4 miles south of Stockton-on-Tees and 8 miles east of Darlington. It draws from an affluent residential population (9,750 people) within the immediate vicinity of the town as well as a much wider rural hinterland. The town is an enclave of wealth and is the most desirable area to live in for the business community within the Stockton on Tees, Middlesborough, Darlington area. Yarm School is the largest and most successful independent school in the area and is a huge driver of traffic to the town. Road communications are via the A67 either south to the A19 (3 miles) or west to Durham Tees Valley Airport (4 miles) and Darlington beyond. The A135 leads to the A66 and Stockton to the North. Rail access is via Yarm Station and also Eaglescliffe railway station on the north side of the river Tees. Yarm PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 4 Situation The property itself is well situated on the High Street which is the main thoroughfare through the village and from which many of the local retailers are situated. It is directly opposite Sainsbury’s and Barclays Bank and amidst a wider established network of retail outlets, restaurants and tourist attractions. The goad plan adjacent identifies the property in relation to the surrounding occupiers. NORTH Experian Goad Plan Created: 03/06/2016 Created By: Barker Proudlove Ltd 50 metres Copyright and confidentiality Experian, 2016. © Crown copyright and For more information on our products and services: database rights 2016. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 5 Description Low vacancy along the High Street highlights The property comprises 4 ground floor unit shops beneath 2 floors of residential accommodation above which has been converted to 6 flats each sold off on a long leasehold basis. the strength of retail spend and reinforcing The property is of a traditional construction with brick elevations and pitched slate roof. Windows are an attractive sash style with stone the excellent continuity of income on offer detail surrounds. Car parking is provided off the main road to the front of the units. The total site area of the property extends to 0.367 acres (0.148 hectares). Tenancy Schedule The property produces a total passing rent of £176,120 per annum as per the tenancy schedule below: - Unit Tenant Areas (sq ft) Start Date Expiry Next rent Rent (psf) Comments (Break) review Unit 1, 93 High Callum Murray 462 15/01/2014 14/01/2022 15/01/2019 £18,000 Street, Yarm (£38.96 psf) Unit 2, 95 High Right Homes 527 29/09/2015 28/09/2020 25/03/2018 £28,470 Street, Yarm North East Ltd (£54.00 psf) Unit 3, 97 High Waterstones 1,463 06/08/2016 05/08/2026 06/08/2021 £57,000 12 month rent Street, Yarm Booksellers Ltd (£38.96 psf) free to be topped up by vendor. Unit 4, 99 High Uno Momento 2,185 18/07/2016 17/07/2031 18/07/2021 £72,500 3 month rent free Street, Yarm (Yarm) Ltd (18/07/2021) (£33.18 psf) to be topped up (18/07/2026) by vendor. 12 month rent deposit. 6 upper floor flats 01/08/1985 01/08/2084 £150 Fixed ground rent at £25 per annum per apartment. Total 4,637 sq ft £176,120 The property benefits from an AWULT in excess of 10.5 years (6.5 years to break) PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 6 Tenure The property is held freehold and consists of the main building and gardens to the rear. The 6 flats to the upper 2 floors have been sold off on a long leasehold basis with the benefit of a ground rent being paid to the freehold owner. The total site area extends to 0.367 acres (0.148 ha) as per our understanding below:- RIVER TEES ourt gs C ndlin Bra 5 1 1 5 8 1 8 3 3 dene Holm 11 1 10 9 0 o 7 t 1 0 1 8 6 4 ace Terr 2 ton 3 1 arle 0 C 1 TC Bs LB HIGH STREET 6 Bank t y 7 r er 2 u w 6 C o re 4 n B ge Bank avo otta 1 n C Ble 3 9 PH Brewery Yard 9 8 6 PH 8 ouse ac H Minley Dene Lil e rd ottag 1 l Ya tage nd C ape C ot ichmo Ch R 6 6 2 3 6 8 4 1 6 2 ouse or H 1 nk an 8 a M ws 6 B Me 0 3 5 9 6 7 a W Y a E 5 S a 1 3 8 T r m S T R V Church Wynd House E i E a T d PC 7 u 1 5 c 0 t 9 1 1 7 4 8 1 1a 3 2 War Meml 13 7 1 Y ND 41 W 4 1 to 29 23 C H 4 3 27 HUR 6 urch G H C 8 High Ch HI 6 s 1 Mew 2 eys Inn 5 ross K 2 C The (Hotel) Scholars 3 PH 6 YARM 2 Court 3 The Orchard 4 1 rove Wing 6 ge 4 tta 2 t C o o e d 9 M grov 8 6 yn S n 5 Wi y W 1 b P 10 n H a 1 t D 1 e 3 . 5 H 6 0m 25m 50m 75m p a I 7 G o h 5 u 9 e s H n 4 1 to 7 e s use 5 Hall ht Ho o rig Arkw S n T Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 R E E T Subject property totalling 0.367 acres (0.148ha) PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 7 Leasehold Enfranchisement The 6 upper floor residential units are held long leasehold by individual tenants until 1st August and 31st July 2084 at a fixed ground rent of £25 per annum (Total rent of £150 per annum). The leases therefore provide just over 68 years unexpired. We understand the tenants have instructed a lawyer to represent them in an informal Lease Extension Process. Please note the tenants have not served Section 42 notices. The Leasehold Extension Calculator (http://www.lease-advice.org.uk/calculator/ ) provides an indication of the possible value attributable to a lease extension. Further information can be provided on request. EPC Section 5 EPC’s available upon request, A 0-25 ranging from C (63) to E (120) Notices 26-50 B We understand Section 5 notices are This is how energy efficient C 51-75 63 the building is. not required in this instance as the square footage (excluding common D 76-100 areas) of the residential element is less E 101-125 than 50% of the total building. The purchaser’s solicitor is to verify the F 126-150 validity of the above. G over 150 VAT We understand the property has been elected for VAT and it is envisaged that the transaction will be structured as a transfer of a going concern (TOGC). PRIME RETAIL INVESTMENT 93-99 HIGH STREET, YARM, STOCKTON ON TEES, TS15 9BB 8 Proposal We are instructed to seek offers in excess of £2,350,000 (Two Million Three Hundred and Fifty Thousand Pounds) for our client’s freehold interest. A purchase at this level reflects a7.05% net initial yield, after deducting purchaser’s costs.
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