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Freehold Town Centre Retail Investment
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sold
private treaty
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£
425,000
Asking price
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Location
Stockport is a large town located within Greater Manchester, approximately 11 km (7 miles) south of Manchester city centre, 39 km (24 miles) east of Warrington and 64 km (40 miles) west of Sheffield.
The town benefits from excellent road communications, being located 0.8 km (0.5 miles) from with Junction 27 of the M60 Motorway which forms the Manchester ring road. The A6 is the main arterial road providing access to the town centre. Stockport is also connected to the national railway network with a fastest journey time to London Euston of 1 hour 56 minutes. Manchester International Airport is located 13 km (8 miles) to the south-west.
Stockport is undergoing a radical and exciting £1 billion programme of investment. This includes:
• Stockport 8 – one of the largest town centre regeneration projects currently underway in the UK. The 8-acre site will create a new digitally capable, walkable neighbourhood comprising over 1,000 new homes. Early stage plans also include retail, leisure and office space. The site is adjacent to the town’s historic viaduct and to Stockport Interchange – a major new redevelopment in partnership with Transport for Greater Manchester which will see the creation of a new urban park, alongside enhanced connectivity.
• Stockport Exchange – A new commercial quarter, attracting major employers Stagecoach, musicMagpie, and BASF into the town centre – has already brought forward two new Grade A office buildings, a successful hotel, and new car parking. Stockport Exchange has a further four commercial development phases planned over the next decade, continuing its legacy to create new jobs and opportunities in the North West, while driving economic growth and social prosperity right into the heart of the town.
• Mailbox – Rise Homes’ Mailbox development has taken a long-neglected former Royal Mail Sorting Office in the heart of Stockport town centre and creatively redeveloped it as 117 new apartments for private rent along with flexible workspace and a glass fronted restaurant unit on the ground floor.
• Interchange – Stockport’s new £135m mixed use Interchange scheme will deliver a state-of-the-art transport interchange and high-quality residential development with at-ground access from Wellington Road South, a main arterial route connecting regions south of Stockport with Manchester to the north. To be completed by Spring 2024, the new Interchange will further boost Stockport’s position as one of the best-connected town centres in the North-west.
For further information visit www.stockportmdc.co.uk.
Summary
- Freehold retail investment/part vacant
- Stockport town centre undergoing £1bn programme of investment
- Situated within the heart of the town centre
- 48 Prince’s Street – trading as Creams, the UK’s biggest desert brand
- 46 Prince’s Street – vacant, providing an opportunity to re-let and enhance the income
- £425,000, subject to contract
- 9.0% Net Initial Yield
- 12.4% Estimated Reversionary Yield
Situation
The property is located on Prince’s Street in the heart of Stockport town centre.
To the immediate north of the property is the Redrock retail and leisure complex, which runs adjacent to Prince’s Street. The complex features a 12-screen cinema and bowling, The Gym Stockport and a range of eateries including Zizzi, Pizza Express, Berretto Lounge and Afiyet. Redrock has its own 350 space on site car park.
The property also benefits from being in very close proximity to the Merseyway Shopping Centre, Stockport’s prime retail destination. Totalling approximately 308,000 sq ft, the centre is home to over 90 stores along with 1,175 car parking spaces. Retailers include Primark, Ikea, JD Sports, River Island, H Samuel, Waterstones, WHSmith, Pandora, McDonald’s and Greggs.
Stockport train station is located approximately 0.8 km (0.5 miles) to the south of the property.
Description
48 Prince’s Street comprises a retail unit arranged over ground and first floor, trading as an ice cream parlour (Creams) which has been fitted out by the tenant to a high standard in their usual trademark branding. The ground floor provides a dining area along with staff office, staff & customer toilets. On the first floor is additional dining space along with a children’s play area, staff kitchen and staff office.
46 Prince’s Street is a vacant retail unit, previously occupied by The Money Shop, arranged over ground and first floor.
Accommodation
Double Table Template
| 46 Prince’s Street (Vacant) | ||
|---|---|---|
| Net Frontage | 3.73 m | 12’3” |
| Gross Frontage | 4.27 m | 14’0” |
| Zone A | 23.04 sq m | 248 sq ft |
| Zone B | 23.50 sq m | 253 sq ft |
| Zone C | 16.81 sq m | 181 sq ft |
| ITZA | 420 UNITS | |
| Ground Floor Total | 63.36 sq m | 682 sq ft |
| First Floor Ancillary | 44.59 sq m | 480 sq ft |
| Total NIA | 107.95 sq m | 1,162 sq ft |
48 Prince’s Street (Creams Gelato) | ||
Net Frontage | 5.87 m | 19’3” |
Gross Frontage | 6.55 m | 21’6” |
Zone A | 36.97 sq m | 398 sq ft |
Zone B | 37.62 sq m | 405 sq ft |
Zone C | 28.61 sq m | 308 sq ft |
Remainder | 43.48 sq m | 468 sq ft |
ITZA | 736 UNITS | |
Ground Floor Total | 146.69 sq m | 1,579 sq ft |
First Floor | 166.01 sq m | 1,787 sq ft |
Total NIA | 312.70 sq m | 3,366 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 £620 + VAT.
Tenure
Freehold.
Tenancies
48 Prince’s Street is let to Ras Creams Limited (t/a Creams Gelato) on a full repairing and insuring lease for a term expiring on 7th December 2033, with a mutual break option on 7th December 2028. The current passing rent is £40,000 per annum and is subject to an upwards only rent review on 8th December 2028. A £10,000 rent deposit is held by the Landlord.
46 Prince’s Street is currently vacant. The unit is on the market to let at a quoting rent of £15,000 per annum.
Therefore, assuming the vacant unit is re-let at £15,000 per annum, an investor will benefit from a total income of £55,000 per annum.
Rateable Value
The Rateable Value for the property is as follows:
The uniform business rates multiplier is 49.9 pence per pound.
Covenant
For the year ending 28th February 2022, Ras Creams Limited reported Shareholders’ Funds of £45,929. We understand Ras Creams Limited is a franchisee of Creams. A rent deposit of £10,000 is held by the Landlord.
Founded in 2008, Creams is the UK’s biggest desert brand with circa 100 stores across the UK. The company’s focus on quality and innovation has been recognised with several awards including ‘Best Brand Partner’ at the Menu Innovation and Development Awards 2022 (Midas), ‘Best Innovation’ at the Best Business Awards 2021, and ‘Best Family Restaurant’ at the Deliveroo Restaurant Awards 2021. They have also been recognised as one of the top ten most loved Eating Out brands in the UK in 2019, 2020 and 2021 by Savanta Research. For further information visit www.creamscafe.com.
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 £425,000 (Four Hundred and Twenty-Five Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0%, rising to an estimated 12.4% once the vacant unit is let, assuming standard purchaser’s costs of 4.3%.
Please note that a purchaser will be re-charged the costs of the measured survey (£620 + VAT) and searches (£700.99) 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 is situated within the heart of Stockport town centre;
Stockport town centre is currently undergoing a £1bn programme of investment;
48 Prince’s Street – trading as Creams, the UK’s biggest desert brand;
46 Prince’s Street – current vacant, providing an investor with an opportunity to re-let and enhance the income;
A purchase at the asking price reflects an attractive yield profile;
Attractive lot size to an investor.
Contacts
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Singer Vielle
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Joint Agency
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Vendor's Solicitor Firm
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