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Prime City Centre Retail Investment
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sold
private treaty
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£
442,000
Asking price
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Location
Carlisle is located within the county of Cumbria, approximately 488 km (305 miles) north west of Central London, 187 km (117 miles) north of Manchester, 293 km (183 miles) north of Birmingham, 93 km (58 miles) west of Newcastle, 154 km (96 miles) south east of Glasgow and 146 km (91 miles) south of Edinburgh.
The city benefits from good road communications being situated approximately 3 km (2 miles) west of Junction 43 and 5 km (3 miles) south of Junction 44 of the M6 Motorway. The A74(M) is approximately 5 km (3 miles) to the north and provides direct access to the M74 and Glasgow to the north west. In addition, the A7 and A69 link Carlisle City Centre directly with Edinburgh to the north and Newcastle to the east respectively.
The city is connected to the national railway network by Carlisle Station. Journey times are approximately 3 hours 30 minutes to London Euston, 2 hours 50 minutes to Birmingham New Street, 1 hour 15 minutes to Edinburgh, 1 hour 14 minutes to Glasgow
Central, 1 hour 50 minutes to Manchester Piccadilly and 1 hour 20 minutes to Newcastle. Newcastle International Airport is approximately 91 km (57 miles) east of Carlisle and is accessed via the A69.
The University of Cumbria is headquartered in Carlisle with a history dating back to 1882. In addition, Carlisle is home to a castle and a cathedral hence it is a city rich in both culture and heritage.
Summary
- To be sold by clicktopurchase® Best Offers by 3.00pm on Wednesday 21st June 2023, unless sold prior.
- City centre retail investment
- Let to Blacks Outdoor Retail Ltd, wholly owned by JD Sports (Market Cap £8.69 billion)
- New lease from 6th March 2023
- Significantly rebased rent – 68% below previous rental level
- Prime retailing pitch
- Freehold
- Offers in the region of £442,000, subject to contract
- 8.0% Net Initial Yield
Situation
The property occupies a prime retailing pitch on the west side of the pedestrianised English Street, the principal retail thoroughfare in the city centre. Surrounding occupiers include Virgin Money (adjacent), Boots, Marks & Spencer, Primark, Shoe Zone, Clintons, White Stuff and WHSmith.
The subject property is also in close proximity to The Lanes Shopping Centre which provides around 70 retail and restaurant units with many of the national, multiple high street retailers present. These include Primark, Next, River Island, Superdrug, JD Sports and New Look. There is also dedicated car parking for 600 vehicles.
Description
The property occupies a prime retailing pitch on the west side of the pedestrianised English Street, the principal retail thoroughfare in the city centre. Surrounding occupiers include Virgin Money (adjacent), Boots, Marks & Spencer, Primark, Shoe Zone, Clintons, White Stuff and WHSmith.
The subject property is also in close proximity to The Lanes Shopping Centre which provides around 70 retail and restaurant units with many of the national, multiple high street retailers present. These include Primark, Next, River Island, Superdrug, JD Sports and New Look. There is also dedicated car parking for 600 vehicles.
Accommodation
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
| Zone A | 60.76 sq m | 654 sq ft |
| Zone B | 62.43 sq m | 672 sq ft |
| Zone C | 48.87 sq m | 526 sq ft |
| Remainder | 87.51 sq m | 942 sq ft |
| ITZA | 1,239 UNITS | |
| Ground Floor Total | 259.56 sq m | 2,794 sq ft |
| Ground Floor Total | 239.50 sq m | 2,578 sq ft |
| Second Floor | 107.67 sq m | 1,159 sq ft |
| Total NIA | 606.73 sq m | 6,531 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 £770 + VAT.
Tenure
Freehold.
Tenancy
The property is let to Blacks Outdoor Retail Limited (t/a Go Outdoors) on a full repairing and insuring lease, subject to a Schedule of Condition, for a term of 10 years from 6th March 2023, expiring on 5th March 2033. There is a tenant’s break option on 5th March 2028, subject to six months’ notice.
The current passing rent is £37,000 per annum. The lease benefits from an open market rent review on 6th March 2028.
The lease is subject to a 15 month rent free period expiring on 5th June 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.
The property was previously occupied by Outdoor and Cycle Concepts Limited (t/a Cotswold Outdoor) at a rent of £115,000 per annum. Hence, the rent has been significantly re-based (a 68% reduction).
Covenant
Blacks Outdoor Retail Limited (Co. No. 07795258) has reported the following figures:
| Year Ending | 29th January 2022 | 30th January 2021 |
|---|---|---|
| Turnover | £151,164,000 | £123,914,000 |
| Pre-Tax Profits (Loss) | £6,344,000 | (£1,423,000) |
| Shareholders’ Deficit | (£25,946,000) | (£31,321,000) |
Established in 1863, Blacks is a retailer of specialist outdoor footwear, apparel and equipment.
The company is a wholly owned subsidiary of JD Sports Fashion Plc. The Group operates across multiple outdoor brands including Blacks, Go Outdoors, Millets, Naylors, Tiso, Wheelbase and more.
Go Outdoors mission is to inspire and equip everyone for life outdoors. Go Outdoors is the UK’s leading outdoor specialist retailer, having the widest in-store range of outdoor clothing, footwear and equipment while serving a broad range of outdoor activities including walking, camping, caravanning, cycling, fishing, running and equestrian. For further information see www.gooutdoors.co.uk.
Established in 1981, the JD Group is a leading global omnichannel retailer of Sports, Fashion and Outdoor brands. The Group now has approximately 3,400 stores across 32 territories, with a strong presence in the UK, Europe, North America and Asia Pacific. For the year ending 29th January 2022, JD Sports Fashion Plc reported a Revenue of £8.6 billion, Pre-Tax Profits of £654.7 million and Total Equity of £2.4 billion.
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 £442,000 (Four Hundred & Forty Two Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, assuming standard purchaser’s costs of 4.42%.
Please note that a purchaser will be re-charged the costs of the measured survey (£770 + VAT) and searches (£707.35) 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 city centre;
Let to Blacks Outdoor Retail Ltd, wholly owned by JD Sports (Market Cap £8.69 billion);
New lease from 6th March 2023;
Rent significantly rebased from £115,000 per annum to £37,000 per annum thereby offering good prospects for future rental growth;
New rent is 68% less than previous rent;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
Contacts
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Singer Vielle
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Vendor's Solicitor Firm
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