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Please consider the environment before printing this Property |
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Prime Town Centre Retail Investment Let to JD Sports
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for sale
Private Treaty
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£
178,000
Subject to contract
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Location
Cannock is located in the county of Staffordshire, approximately 39 km (24 miles) north of Birmingham, 19 km (12 miles) north of Walsall and 14 km (9 miles) south of Stafford.
The town benefits from good road communications with Junction 7 of the M6 Toll being located approximately 1.6 km (1 mile) to the south and Junction 12 of the M6 Motorway approximately 5 km (3 miles) to the west. The town is also served by the A34 (north-south) and A5 (east-west).
The town is connected to the national railway network with a fastest journey time of 2 hours 30 minutes to London Euston and 38 minutes to Birmingham New Street. Birmingham Airport is approximately (28 miles) to the south-east.
Summary
- Town centre high street retail investment
- Prime retailing pitch
- Secure income from JD Sports
- Formally part of the Cannock Shopping Centre but located on the high street
- £178,000, subject to contract
- 11.0% Net Initial Yield
Situation
The property is situated in the heart of Cannock town centre and occupies a prominent position fronting Market Hall Street. The property forms part of the Cannock Shopping Centre and is located close to the main entrance.
Cannock Shopping Centre is the town’s primary covered shopping area. With over 35 places to shop, eat and drink, occupiers in the centre include New Look, Specsavers, EE, Costa Coffee, Holland & Barrett, Bodycare and Poundstretcher.
In addition, Cannock Market Hall is a thriving indoor market located within the shopping centre, housing services ranging from jewellery, clothing and craft supplies to watch repairs, nail technicians, food & drink and more.
The town’s main bus station is immediately adjacent to the Centre.
The shopping centre is located directly opposite the site of a significant regeneration scheme, set to transform the town centre. Cannock Chase Council has secured £20 million from the Government’s Levelling Up fund towards the project. The transformation is set to include refurbishment of the Prince of Wales Theatre, business workspace and a new “northern gateway” into Cannock. In addition, the Centre will benefit from a new pedestrianised crossing linking it directly to a to-be refurbished Beecroft Road Car Park, Cannock’s principal town centre car park. Outline planning permission has been granted and the Council is set to begin the delivery of phase one of the scheme. For further information see here.
Description
The property comprises a retail unit arranged over ground and first floor.
The ground floor sales accommodation has been fitted-out in the tenant’s usual style with the first floors providing ancillary/staff accommodation.
The property benefits from a rear service area, accessed via Stafford Road.
Accommodation
The property provides the following internal floor areas:
| Gross Internal Floor Area | ||
| Ground Floor | 219.71 sq m | 2,364.94 sq ft |
| First Floor | 144.67 sq m | 1,557.21 sq ft |
| Total | 364.38 sq m | 3,922.15 sq ft |
| Net Internal Floor Area | ||
| Ground Floor | 217.48 sq m | 2,340.94 sq ft |
| First Floor | 140.95 sq m | 1,517.18 sq ft |
| Total | 358.43 sq m | 3,858.12 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 £595 + VAT.
Rateable Value
According to the Valuation Office website the rateable value for the property is as follows:
| 25 Market Hall Street | £36,000 |
The business rates multiplier is 49.9 pence. The seller has appealed the valuation and expects the tenant to benefit from lower rates going forward.
Tenure
Long leasehold interest until 22 July 2146 at a peppercorn rent (approximately 122 years remaining).
Tenancies
25 Market Hall Street is let to JD Sports Fashion Limited on a full repairing and insuring lease from 9th January 2023, expiring 8th January 2026. The current passing rent is £20,000 per annum (paid monthly). The lease contained a tenant break option effective from January 2025; the tenant did not exercise the break option.
Service Charge
The service charge for 2024-2025 is £6,933.05, reflecting £1.80 per sq ft / £19.34 per sq m.
Importantly, note the service charge for the units in question has only a limited contribution to the main shopping centre. Please refer to the service charge information in the data room.
Covenants
JD Sports Fashion Plc has reported the following figures:
| 53 Weeks Ending | 3 February 2024 | 3 February 2023 |
| Turnover | £10,542m | £10,125m |
| Pre-Tax Profits | £692.6m | £272.5m |
| Net Assets | £2,868.4m | £2,286.4m |
VAT
The property has been opted for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Market Evidence
The adjoining property at 27-29 Market Hall Street was sold by Singer Vielle in October 2024. The property is let at £60,000 per annum and was sold for £602,500 reflecting a net initial yield of 9.48%.
Proposal
We are instructed to seek a figure of £178,000 (One Hundred and Seventy Eight Thousand Pounds), subject to contract, reflecting a net initial yield of 11.0%, assuming purchasers’ costs of 2.11%.
Please note that a purchaser will be re-charged the cost of the Measured Survey (£595 + VAT) and the searches (£307.29) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
Investment Considerations
An opportunity to acquire a high yielding high street retail investment;
The property occupies a prime retailing pitch in the heart of the town centre, forming part of the Cannock Shopping Centre;
Secure income from a leading retailer
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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Disclaimer
This disclaimer applies to www.singervielle.com (the “Site”) which is owned by Singer Vielle Limited (“Singer Vielle”) and operated under licence by Singer Vielle 2 LLP.
All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.
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