Gloucester - 7 Eastgate Street
• Prime retail investment situated in close proximity to Gloucester Cross.
• The purchase price of £425,000 equates to a gross initial yield equating to 12.66% or a net initial yield of 12.23%, after purchaser's costs of 3.5% have been taken into account.
• For the year end 31st August 2017, Boots Opticians Professional Services Limited reported a pre-tax profit of £26,250,000, shareholders' funds of £143,111,000 and a net worth of £72,683,000.
The property comprises a mid-terrace building of brick construction under a pitched tiled roof which is protected by a parapet wall. The accommodation is over 3 floors with the main retail area and an office on the ground floor with consulting rooms and staff facilities on the first floor. There is no access to the second floor at present.
It mainly has painted plastered walls, suspended ceilings with inset lighting and floor coverings. The retail area has a fully glazed frontage and comfort cooling.
The property has an Energy Performance rating of D-94. Certificate Ref. No. 0960-9983-0357-0390-1094.
The property is let to Dollond & Aitchison Ltd (now Boots) for a period of 10 years to expire 31st March 2019. The passing rent is £53,812 per annum exclusive. The lease included a rent review on the 5th anniversary of the term. The tenant is required to keep the property in good repair and condition and to decorate the interior in every 7 years and the exterior every 5 years. The property is to be decorated throughout during the last 6 months of the term. Under the terms of the lease the tenant was permitted to assign their interest to Boots Opticians Professional Services Ltd at any time within the first 2 years of the term, without landlord's consent.
A copy of the lease is available upon request.
The property is situated in a prominent position on Eastgate Street within close proximity of Gloucester Cross, which is traditionally regarded as the City centre. Occupiers in the immediate area include Marks & Spencers, Top Shop, Clarks, Waterstones, EE, Thorntons and Lloyds Bank.
Gloucester is well connected to the motorway network, being served by three junctions of the M5; junction 11 provides access via the A40 (3 miles), junction12 to the south (5 miles) and junction 11a (3 miles) connects to the Brockworth Bypass, Cirencester/Swindon and the M4 motorway at junction 15 (34 miles).
The approximate net internal areas are as follows:
112.32 sq m (1,209 sq ft)
The Rateable Value currently featuring on the Valuation Office Agency website is £33,500.
The property has been used for general retail which falls within Class A1 of the Use Classes Order 1987.
We are instructed to offer the property at a price of £425,000 exclusive of VAT, subject to the occupational lease to Dollond & Aitchison Ltd (now Boots). A purchase at this level reflects an attractive Net Initial Yield of 12.23% assuming purchaser's costs of 3.50%.
Our client has elected to waive exemption of VAT and accordingly VAT will be payable on the purchase price although we anticipate the sale will be treated as a TOGC.
Each party to bear their own legal costs incurred in the transaction.
Simon McKeag 07737 691453
Rebecca Rigg 01452 300433
Harry Pontifex 01242 255242
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