Retail Portfolio Sale

15 Cornhill, Bury St Edmunds, IP33 1DY

The property is let to WH Smith who offer a strong covenant. There are 9 years remaining on the lease and 4 years to the break clause. The property appears to be overrented at £160,750 per annum.

Comment: this is a comparatively large lot size for the town. The quoting yield needs to reflect this fact. We are offering a bank in Newmarket, smaller lots size, 3.5 years on the lease at 8% / £770,000 ? interest is limited at the moment but we are just one week into the marketing.

Try initially guiding £1,890,000 which reflects a net initial yield of 8% though the market may be closer to £1,680,000 / 9%.

29 High Street, Camberley, GU15 3RE

The property is let to HSBC who offer a strong covenant. There are 3 years remaining on the lease and 1 year to the break clause. The passing rent is £35,000 per annum.

Comment: The lot size is helpful to attract private investors but the short income will deter many. There is a chance that HSBC serve notice to break the lease so ideally this property sells prior to that.

We recommend guiding offers in excess of £283,000 which reflects a net initial yield of 12%.

15 High Street, Chipping Norton, OX7 5AE

The property is let to Barclays Bank who offer a strong covenant. There are 3 years remaining on the lease and no breaks. The passing rent is £36,900 per annum.

Comment: Note our quote on the bank in Newmarket.  The small lot size in this instance is helpful to gain private investor interest.

We recommend guiding £440,000 which reflects a net initial yield of 8%.

15 High Street, Clacton on Sea, OX7 5AE

The property is let to Barclays Bank who offer a strong covenant. There are 5 years remaining on the lease and no breaks. The passing rent is £48,000 per annum.

Comment: We refer again to the evidence mentioned in Newmarket and again there is an argument to quote a higher yield. However:

We recommend initially guiding £509,000 which reflects a net initial yield of 9%.

6 Bridge Street, Warrington, WA1 2QW

The property is let to Yorkshire Building Society who offer a strong covenant. There are 3 years remaining on the lease and 1 year to the break clause. The passing rent is £30,000 per annum.

Comment: We can suggest in the marketing that there is some value to be released on the upper floors should the tenant vacant at the end of the lease. There is a chance that Yorkshire Building Society serve notice to break the lease so ideally this property sells prior to that.

We recommend guiding offers in excess of £265,000 which reflects a net initial yield of 12%.

10 The Shambles, Worcester, WR1 2RF

My understanding is that this property has recently been let to a local tattooist on a 25-year lease with no breaks at a rent of £25,000 per annum.

We are assuming that the tenants covenant is ?weak? for the purpose of this exercise.

Comment: Whilst the 25-year lease appears attractive, the tenant does not offer any financial strength so investors are unlikely to place much value on the long lease.

We recommend guiding offers in excess of £204,000 which reflects a net initial yield of 12%.

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25-35 Nottingham Street, Melton Mowbray, LE13 1NN

As discussed, due to the tenant being Wilko, we will wait to see what happens with this site.

Legal Pack & Timing

We will e-mail your solicitor and copy you in with clear instructions on compiling the legal pack. The pack should include all documents a prospective buyer?s solicitor will need to review. Leases, title documents, searches, CPSEs, EPC, insurance documents etc.

We will instruct your solicitor to add into the special conditions of sale that the buyer is to reimburse you for cost of the searches.

Depending on photographers and flight path availability we can usually prepare the marketing within one or two weeks. The legal pack will typically take around three weeks for the solicitor to collate.

General

We will manage the whole process from start to finish. For example, collating the legal pack with the solicitors, arranging access to the properties for photos and viewings, dealing with buyers and their solicitors and anything else which may arise.

Should you decide to instruct us, I will send terms of business to you and the marketing costs invoice. Then you can leave everything to us to deal with and keep you informed.