James Pilcher House, 49-50 Windmill Street, Gravesend, , DA12 1BG Tel: 01474 537733 Email: [email protected]

91-93 KING STREET, , KENT, ME14 1GB

MIXED USE INVESTMENT OPPORTUNITY WITH REDEVELOPMENT / CONVERSION POTENTIAL (STPP)

Location

Maidstone is the county town of Kent, situated stations; Maidstone West, Maidstone Barracks on approximately 32 miles south east of London and the Valley Line, and Maidstone East on the with a population of 113,137 (2011 census). The Ashford line. The high speed train now stops at town is ranked in the top five shopping centers in Maidstone West and goes direct to London St the south east of England for shopping yields and, Pancras in 47 minutes. with more than one million square feet of retail floor space, is in the top 50 in the UK. Much of The subject property is located in King Street, a this space is located in the two main shopping main road leading west off the A249, toward the centers in the town, The Mall Maidstone and town, with the property being situated less than half which opened in 2006. Other recent a mile outside of the centre of Maidstone. It is has a developments include the riverside Lockmeadow good mix of both commercial and residential Centre, with a multiplex cinema, restaurants, properties with predominately commercial on the nightclubs, and the town's market square. ground floor, including both offices and retail.

Maidston e is a hub for major roads; the A20, M20 Nearby occupiers include Wards and Haart Estate motorway , the A229, A249, A20 and A26. The M2 Agents, The Townhouse Boutique Hotel, Swinton motorway is a short distance to the north and the Insurance and further toward the town a gymnasium A21 also runs close to the town. There are three and a Boots.

91-93 King Street Maidstone Kent

Key Features Tenancies Please see a copy of the tenancy schedule

attached.  Mixed use commercial investment – producing £38,200 per annum Tenant Covenant  Pote ntial income of £57,200 per Evans and Langford is a Limited Liability annum when fully let Partnership and was incorporated at Companies  Att ractive net initial yield of 6.6% and House in November 2003, some 17 years ago now.

potential net yield of 10% when fully Their accounts, made up to March 2018, are let abbreviated as they are exempt from filing full  Potential to convert / redevelop into accounts, but their balance sheet shows net assets of £319,665. residential use

 Ideal SIPP purchase Gorillas Kung Fu LLP operates as limited liability partnership and has been in occupation since 2007, albeit previously traded under a different name. Description 91-93 King Street comprises a period property on Rental Commentary the corner of King Street and Queen Anne Road The lease for 91 King Street was renewed to Evans and the main (front) part of the building is of and Langford at a revised rent of £25,000 per traditional brick construction with a pitched roof, set annum which reflects £5.72/ft2 overall, on both the behind a low parapet wall. ground, first floors and second floors. Given this was reviewed and negotiated fairly recently, and 91 King Street is listed and possibly an early to mid- both parties were represented by local surveyors, 19th century building. It is two storey and both floors we feel this is a fair reflection of the current market are used as offices. 93 King Street is attached to rent for the premises. no. 91 and is presumed to be mid to late 19th century. The ground floor was recently used as an 93b King Street, was let to the predecessor undertakers, although is currently vacant. The first company of Gorillas Kung Fu LLP in 2007 at £9,500 floor is used as offices, currently used by the tenant pa. They renewed their lease in April 2020, at an of 91 via a door opening cut through the party wall. increased rent of £13,200 pa which annum reflects The rear (north) end of no. 93 is attached to a large £7/ft2. two storey building which has a frontage onto Queen Anne Road. This building may date from the There have been some other lettings of D2 late 19th or early 20th centuries. The ground floor is premises in Maidstone, to gym operators, and used as a martial arts studio and the first floor is although some of the deals are quite historic, they used as offices, currently also used by the tenant of do present a pattern of rents in the region of £7.50- 91 via a door opening cut through the party wall to 10/ft2 and on this basis we feel the rent is no. 93. The gap between the rear (north) of no. 91 reversionary. and the side (south) of the rear building forms a small open courtyard with a large metal fire escape The vacant premises at 93 King Street, is currently staircase. being marketed at a quoting rent of £19,000 pa, which reflects a rent of £25/ft2 in terms of Zone A. There is also a basement accessed via a staircase in the main offices of no. 91 but it not currently used for anything other than utility meters.

Tenure The property is marketed for sale freehold subject to the occupational tenancies.

91-93 King Street Maidstone 91-93 King Street Kent Maidstone Kent

No. 91 (main offices):- 2 2 Development / conversion potential Description Area ft Area m Our client has investigated the possible conversion Basement 426.27 39.60 of the property into nine residential flats. The plans Ground floor 799.81 74.30 did not originally include the vacant unit at 93 as this offices was let up until recently, so development of this part First floor offices 3574.42 332.07 was not thought possible initially, whereas the Second floor 145 13.49 leases to the other two tenants had been allowed to storage hold over for a sustained period (albeit both have Total ground 4374 406.38 subsequently been renewed). and first floor only (NIA) Positive pre-application advice from the local planning authority has been received, albeit No. 93 (retail premises now vacant):- 2 2 indicating our client would need to reduce the Description Area ft Area m number of units from nine to seven, for planning Zone A 493 45.81 permission to be forthcoming. Our client has Zone B 542 50.37 reconfigured the plans to comply with this advice. Zone C 20 1.89 Plans can be downloaded from the data room for Total floor area 1055 98.1 the property (link below). (NIA) Total area ITZA 769 71.47 Whilst we are aware 91 King Street is listed, we believe 93 and the Rear of 93 is not, therefore Rear of 93 (martial arts / gym premises):- 2 2 permitted development rights for conversion to other Description Area ft Area m uses, including residential use, should apply. Ground floor area 1869 173.6 (incl. hall, toilets, Proposal office and internal Our client is seeking offers in the region of £550,000 storage) reflecting a net initial yield of 6.6% on the current

passing rent, and 10% on the potential rent when Please note that as we have not measured the the vacant unit is let, and after acquisition costs of premises we cannot confirm the accuracy of these 4.89% of the purchase price. areas and interested parties should therefore satisfy themselves that they are accurate. Legal costs and VAT

Each party is to bear their own legal costs Income Profile associated with the transaction. We understand that 91-93 King Street the property is not elected to tax and therefore VAT Current passing rent £25,000 pa is not payable on the purchase price.

93b King Street Current passing rent £13,200 pa Data Room Legal documents and plans for the property can be 93 King Street downloaded from the data room by clicking on the Market rent £19,000 pa link below:- https://caxtons- Current passing rent £38,200 pa my.sharepoint.com/:f:/p/cbland/EoaWlQEPY Market rent when fully let £57,200 pa ttJlZcaOQPK18cBPwdgMeu_Zl63dBtzTNf0Y w?e=mQKDOU EPC The property has an Energy Performance Viewing Certificate rating of E105. A copy of the certificate is Strictly by appointment with sole agents Caxtons - available upon request. via Charlotte Laherty Neil Chatterton on 01474 537733 or [email protected] / [email protected]

91-93 King Street Maidstone 91-93 King Street Kent Maidstone Kent

TENANCY SCHEDULE

Description Tenant Name Lease Breaks Rent (per Repair basis L&T Act annum) 91-93 King Street Evans and Langford 5 years expiring on 17 Aug Tenant break on £25,000 Internal repairing with Yes LLP 2023 17th Aug 2021 tenant responsible for internal and external redecs 93 King Street Vacant N/A N/A £19,000 quoting N/A N/A rent

Part ground floor Gorillas Kung Fu LLP 3.5 years expiring 17th August Tenant break on £13,200 FRI Yes 93b King Street 2023 28th Oct 2010 (co-terminus with Evans and Langford lease)

TOTAL INCOME £38,200 plus possible £19,000 pa from vacant unit = £57,200