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Accommodation
We understand that the property provides the following accommodation
| Retail Unit | ||
| ITZA | 489 sq ft | 45.4 sq m |
| Ground Floor | 858 sq ft | 79.7 sq m |
| Basement / Cellar | 390 sq ft | 36.2 sq m |
| Total Net Internal Area | 1,248 sq ft | 115.9 sq m |
| Residential Units | ||
| Flat 1 | 417sq ft | 38.7 sq m |
| Flat 2 | 417 sq ft | 38.7 sq m |
| Total Gross Internal Area | 828.28 sq ft | 76.95 sq m |
A set of floorplans is available to download.
EPC
| 51 Buttermarket | Shop | B | Valid until 18th April 2033 |
| Flat 1 | Residential | C | Valid until 24th April 2033 |
| Flat 2 | Residential | C | Valid until 24th April 2033 |
Rateable Value
According to the valuation office website the property does not currently have a listed rateable value, being removed 18th July 2022. Prior to that, the Rateable Value was £22,750.
The business rates multiplier is 49.9 pence.
Tenure
Freehold.
Tenancies
The ground floor and basement is let to Magazin Romanesc Bacau Limited (t/a Bacau European Food), for a term of 10 years from 15th January 2024, expiring 14th January 2034. There is a mutual break option on 15th January 2029, subject to 6 months’ notice.
The current passing rent is £16,000 per annum. The lease benefits from 3-yearly rent reviews, the next being on 15th January 2027. A rent deposit of £4,800 is held by the Landlord.
The upper parts comprise two residential apartments:
Flat 1, situated on the first floor, is let on Assured Shorthold Tenancy (AST) agreement for a term of six months from 10th August 2024 and thereafter shall continue as a monthly contractual periodic tenancy. The current rent is £775 per month (£9,300 per annum). A deposit of £894 is held by the Landlord.
Flat 2, situated on the second floor, is let on Assured Shorthold Tenancy (AST) agreement for a term of six months from 11th December 2024 and thereafter shall continue as a monthly contractual periodic tenancy. The current rent is £775 per month (£9,300 per annum)
Therefore, an investor will benefit from a total gross rental income of £34,600 per annum.
There are no rent arrears – all tenants are up to date with their rental payments.
Rental and Capital Values
The shop is let at a rent of £18.65 per sq ft. We understand that the adjoining shop at 49 Buttermarket has recently been let at £15,000 per annum, equating to £19.35 per sq ft, thereby supporting the passing rent.
Our enquiries indicate that residential values in the area are in the region of £95,000 to £125,000, indicating a value for the residential element of the property in the order of £200,000 to £250,000. By adopting a fair value of £225,000, the residential investment element is reflecting a gross yield of 8.3%
Applying £225,000 for the residential, the commercial element of the property is reflecting a gross initial yield of 10.0% at the asking price.
Covenant
For the year ending 29th February 2024 Magazin Romanesc Bacau Limited (13182441) reported Net Assets of £69,743.The company is a European grocery store offering a large variety of products including snacks, fresh bread, fresh produce, packaged foods and beverages at reasonable prices.
A £4,800 rent deposit 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 offers in the region of £385,000 (Three Hundred and Eighty Five Thousand Pounds) subject to contract, reflecting a gross initial yield of 9.0%.
Please note that a purchaser will be re-charged the costs of the searches (£1,010.50) 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 plus VAT.
Investment Considerations
An opportunity to purchase a mixed-use investment;
The property is situated in the heart of Ipswich city centre, near to a new Sports Direct store;
Ground floor retail unit let on a new lease from January 2024;
Two recently refurbished residential units on the upper floors, let on AST’s;
Freehold;
A purchase at the asking price reflects an attractive yield;
Attractive lot size for an investor.
