Location

Plymouth is the largest conurbation in the south west region of England and a major centre with a growing population of some 263,000.

It is located some 72 km (45 miles) south west of Exeter, 87 km (54 miles) east of Truro and 200 km (124 miles) south west of Bristol. It is well connected by road and rail lying at the junction of the A386 and A38, which links to the M5 motorway at Exeter.

Plymouth’s mainline railway station has a journey time to London of just over 3 hours and to Bristol Temple Meads of approximately 2 hours. In addition, the city is an important continental and national sea port.

Plymouth is the south west’s administrative hub and has a diverse economy with a GVA of £5.2 billion and 105,100 jobs (Source: www.visitplymouth.co.uk). Plymouth University is home to 30,000 students and 3,000 staff.

Plymouth is the largest centre for shopping in the South West, outside of Bristol.

Summary

City centre investment opportunity
Located in the heart of Plymouth’s prime retailing centre
£315,000, subject to contract

Situation

Retailing in Plymouth is principally confined to three streets (New George Street, Cornwall Street and Armada Way) and the Drake Circus Shopping Centre. The city provides an excellent retail offer with major multiple retailers including Primark, Marks & Spencer and House of Fraser all having large stores in the city centre.

The property is located in a prime position on New George Street, between the entrances to Drakes Circus Shopping Centre and Armada Way. Surrounding occupiers include Virgin Media, Trespass, The Body Shop, EE, Halifax, Tesco Metro and McDonald’s.

Drakes Circus Shopping Centre is one of the West Country’s most popular shopping destinations with around 70 shops and restaurants and 1,270 parking spaces. Key occupiers include M&S, Apple, Primark, Next, H&M and Hotel Chocolat. The centre has an annual footfall of around 18 million people (Source: British Land).

In 2019 British Land opened The Barcode, a circa 9,290 sq m (100,000 sq ft) leisure scheme next to the Drakes Circus Shopping Centre including a 12 screen Cineworld cinema, 15 restaurant units and 420 car park spaces. In 2016, British Land acquired the New George Street Estate linking the retail centre with the leisure scheme.

Plymouth Council has committed £27 million to the ‘Better Places’ project which aims to improve the look and feel of the city centre’s main thoroughfares, making it more attractive for shoppers and visitors as well as encourage more inward investment in retail, leisure, employment and housing into the heart of Plymouth. As part of this project, plans have been approved to revamp Old Town Street and the upper end of New George Street with new shops, seating and trees.

A number of major projects are already underway in the City Centre and Waterfront area, including the £200m regeneration of Millbay by English Cities Fund with over £90m already invested in the completion of 400 homes, employment space, a new school, marina and restaurant. A new coach station has been opened, work has started on the new £34 million Box – the city’s new history, arts and culture centre on North Hill, set to open in spring 2020, plus Plymouth Market has undergone a £3.5 million renovation.

Description

The property comprises a retail unit on ground floor which is predominantly open plan with ancillary areas. The first and second floors have been let to a hair/beauty salon.

The ground floor unit is currently unoccupied.

Rateable Value

According to the Valuation Office website the rateable value for the property is as follows;

20 New George Street

£68,500

The business rate multiplier is 51.2 pence per pound.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:

Net Frontage	6.73 m	22’1”
Gross Frontage	7.42 m	24’4”

Zone A	44.13 sq m	475 sq ft
Zone B	51.37 sq m	553 sq ft
Zone C	52.67 sq m	567 sq ft
Remainder	51.00 sq m	549 sq ft
ITZA
Ground Floor Total	199.18 sq m	2,144 sq ft

First Floor	113.15 sq m	1,218 sq ft
Second Floor	58.06 sq m	625 sq ft

Total	171.21 sq m	1,843 sq ft

The measured survey report is available to download and will be re-addressed to a purchaser at a cost of £297.50 + VAT.

Tenure

The property is held under a head lease from Plymouth City Council for a term of 125 years from 7th July 1999, expiring on 6th July 2124 (approximately 103 years unexpired) at a ground rent of 10% of rents received. There is no head rent payable if the property is vacant.

The current rent payable under the head lease is £8,300 per annum.

Tenancy

The ground floor is currently vacant.

The first and second floors have been let to Tanya Bader (t/a March Hair) from 28th June 2017, expiring on 29th March 2026 at a passing rent of £13,000 per annum.

VAT

The property has not been registered for VAT and therefore VAT is not applicable on the purchase price.

Investment Evidence

28 New George Street was sold in January 2022 for £490,000, reflecting a net initial yield of 15.0%. Arranged over ground, first and second floor totalling 171 sq m (1,843 sq ft), the property is let to Johar Limited (t/a The Body Shop) for a term expiring on 16th November 2023 at a passing rent of £86,000 per annum.

Proposal

We are instructed to seek offers in excess of £315,000 (Three Hundred and Fifteen Thousand Pounds), subject to contract.

Please note a purchaser will be re-charged the cost of the searches (£974.50) and measured survey (£297.50) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of 1.0% plus VAT of the final agreed sale price.

Investment Considerations

An opportunity to acquire a city centre investment;
The property is located in the heart of Plymouth’s prime retailing centre;
No head rent payable if the property is vacant;
Attractive lot size for an investor.

Contacts

Singer Vielle
Singer Vielle	+44 (0) 207 935 7200
Dale Henry	+44 (0) 203 701 1356 dale@singervielle.co.uk
Vendor's Solicitor Firm
Dechert LLP	+44 (0) 207 184 7892
Elizabeth Le Vay	+44 (0) 207 184 7892 elizabeth.levay@dechert.com

See website for full details : https://singervielle.com

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All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.

Protected: City Centre Retail Opportunity