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Accommodation
The property has been measured by BKR Floor Plans and provides the following net internal floor areas:
| 16 Market Place – Molino Coffee | ||
| Net Frontage | 6.96 m | 22’10” |
| Gross Frontage | 8.46 m | 27’9” |
| Zone A | 46.73 sq m | 503 sq ft |
| Zone B | 35.58 sq m | 383 sq ft |
| Zone C | 0.46 sq m | 5 sq ft |
| ITZA | 696 | |
| Storage | 19.70 sq m | 212 sq ft |
| Total Ground Floor | 102.47 sq m | 1,103 sq ft |
| First Floor | 106.47 sq m | 1,146 sq ft |
| Total | 208.93 sq m | 2,249 sq ft |
| *Second floor – decomissioned (not measured) | ||
| 17 Market Place – Flawless Vape Shop | ||
| Net Frontage | 3.76 m | 12’4” |
| Gross Frontage | 3.99 m | 13’1” |
| Zone A | 24.34 sq m | 262 sq ft |
| Zone B | 10.78 sq m | 116 sq ft |
| ITZA | 320 | |
| Storage | 31.68 sq m | 341 sq ft |
| Total Ground Floor | 66.80 sq m | 719 sq ft |
| First Floor | 31.96 sq m | 344 sq ft |
| Second Floor | 34.75 sq m | 374 sq ft |
| Total | 133.50 sq m | 1,437 sq ft |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £745 + VAT.
Tenure
Freehold.
There is a flying freehold towards the rear of 16 Market Place, whereby the title extends over a small section of the adjacent property (48 Chapel Street). Please refer to the data room for further information.
Tenancies
Tenancies
16 Market Place
Let to Sabri Alaybeyi (t/a Molino Coffee) on a full repairing and insuring lease, for a term of 15 years from 5th September 2023, expiring on 4th September 2038. There is a tenant’s break option on 5th September 2028, subject to six months’ notice.
The passing rent is £25,000 per annum. The lease benefits from 5 yearly upwards only rent reviews to open market rental value. The tenant benefits from a rent free period expiring on 4th March 2024. The vendor will ‘top-up’ the income by way of an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
A rent deposit of £8,250 + VAT is held by the Landlord. This deposit will be released at any time after five years in the event that the tenant can produce audited accounts showing three continuous years when the net profit exceeds the rent by a multiplier of at least 3 times the rent passing.
17 Market Place
Let to Flawless Vape Shop Limited on a full repairing and insuring lease, subject to a Schedule of Condition, for a term of 5 years from 15th September 2023, expiring on 14th September 2028. There is a tenant’s break option on 15th September 2026, subject to six months’ notice. The lease is outside 1954 Act protection.
The passing rent is £16,000 per annum. The tenant benefits from a rent free period expiring on 24th December 2023. The vendor will ‘top-up’ the income by way of an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
The tenant has been in occupation since 2019 and entered into a new lease in September 2023, demonstrating their desire to remain in the property. The previous rent was £16,000 per annum exclusive.
Therefore, an investor will benefit from a total income of £41,000 per annum.
Both of these lettings equate to approximately £30 psf Zone A net. This is in line with other open market transactions that have occurred in the immediate vicinity and we believe fairly reflects the current OMRV.
Covenant
For the year ending 30th November 2022, Flawless Vape Shop Limited (Co. No. 10411202) reported Shareholders’ Funds of £629,991.
Flawless Vape Shop is the UKs leading distributor of vape, vaping hardware, accessories, starter kits, tanks and E-liquids, with stores in Leicester, Loughborough, Rugby, Hamilton and Beaumont Leys. For further information visit www.flawlessvapeshop.co.uk.
With regards to 16 Market Place (Sabri Alaybeyi), a rent deposit of £8,250 plus VAT is held by the Landlord.
VAT
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek a figure of £436,000 (Four Hundred and Thirty Six Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0%, assuming standard purchaser’s costs of 4.39%.
Please note that a purchaser will be re-charged the costs of the measured survey (£745 + VAT) and searches (£913.17) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price + VAT.
Investment Considerations
An opportunity to acquire a freehold retail investment;
The property occupies a prime retailing pitch within the heart of the town centre;
16 Market Place is let on a new 15 year lease from September 2023;
17 Market Place is let on a renewed lease from September 2023, demonstrating the tenant’s commitment to the property;
Significant upper parts providing future repurposing potential, subject to planning;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
