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Please consider the environment before printing this Property |
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Newly Refurbsihed High Street Retail/Leisure Investment
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for sale
Private Treaty
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£
700,000
Subject to contract
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Location
The Cathedral and University City of Bangor is located in North-West Wales, approximately 96 km (60 miles) west of Chester and 100 km (62 miles) north-west of Wrexham. The city is also within easy reach of Liverpool and Manchester.
The city benefits from good road communications, being served by the A5 and A55 which links with the M56 Motorway to the east. Bangor is also connected to the national railway network with a fastest journey time to London Euston of 3 hours and 38 minutes.
Situated on the doorstep of the Snowdonia National Park and with beaches, areas of natural beauty and family attractions in close proximity Bangor is a popular tourist destination, particularly during the summer months. Attractions include Bangor Cathedral dates from the 6th century; Penryth Castle provides breathtaking views; and the iconic Menai Suspension Bridge which connects Bangor to Anglesey.
Bangor University has over 10,000 students and contributes significantly to the local economy. It has been named Welsh University of the Year in the Daily Mail’s University Guide 2024 and was ranked 44 in the UK in The Times & The Sunday Times Good University Guide 2024.
Summary
- Prominent, recently refurbished, retail/leisure unit, forming part of the Menai Shopping Centre, within an area of significant regeneration.
- Significant Government investment at the Menai Shopping Centre with the development of a Health and Wellbeing Hub (£30m investment).
- Retail/Leisure unit let to City Sports and Cocktail Bar Limited
- Energy Performance Certificate Rating – “A”
- New 15 year lease at an initial rent of £60,000, rising to £70,000 per annum
- New 999 year leasehold
- £700,000, subject to contract
- 8.2% Net Initial Yield, rising to 9.5%
Situation
The property is prominently located in the heart of the town centre, within the pedestrianised section of the High Street. Nearby occupiers include Costa, Boots, JD Sports and Cafe Nero. .
Nearby at 290-294 High Street, Varcity Living Limited is undertaking a substantial redevelopment of the former Peacocks store to comprise commercial space on ground floor with residential accommodation on the upper floors. The project is part-funded by the UK Government through the UK Shared Prosperity Fund.
Description
The property comprises a large and promiment retail/leisure unit arranged on ground and first floors. The property fronts High Street and has the benefit of rear servicing access.
The property has recently been substantially refurbished by the new tenant, providing a highly-fitted bar as can be seen by the photography and video of the property.
The Menai Shopping Centre – New £30m Bangor Health Hub
The Menai Shopping Centre forms the central retail location in Bangor. Totalling some 130,000 sq ft / 12,077 sq metres, occupiers include Caffé Nero, Hays Travel, Three, The Factory Shop, Superdrug and Burger King. Greggs have recently occupied unit 9.
The Menai Shopping Centre was previously anchored by a Debenhams department store. The store is to become a significant health and wellbeing hub with some £30m of investment having been approved by the Betsi Cadwaladr University Health Board and Gwynedd Council. Plans have been submitted to the Health Board and Welsh Government for formal approval. Completion of the sale to the Health Board is anticipated during 2025 once formal Welsh Government approval has been granted. See here a press release reported in the North Wales Chronicle – view.
It is anticipated that completion of the development will provide a significant boost to Bangor city centre with an increased footfall.
The sale of the former Debenhams unit includes passing the ownership of the town-centre multi-story car park to the Health Board.
Description
The property comprises a large and promiment retail/leisure unit arranged on ground and first floors. The property fronts High Street and has the benefit of rear servicing access.
The property has recently been substantially refurbished by the new tenant, providing a highly-fitted bar as can be seen by the photography and video of the property.
Accommodation
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
| Net Frontage | 18.26 m | 59’11” |
| Gross Frontage | 18.39 m | 60’4” |
| Zone A | 105.81 sq m | 1,139 sq ft |
| Zone B | 95.41 sq m | 1,027 sq ft |
| Zone C | 83.70 sq m | 901 sq ft |
| Remainder | 121.14 sq m | 1,304 sq ft |
| ITZA | 2040.75 | |
| Total Ground Floor | 406.07 sq m | 4,371 sq ft |
| First Floor | 400.96 sq m | 4,316 sq ft |
| Total | 807.02 sq m | 8,687 sq ft |
A set of floor plans and measurements is available to download; the measured survey report will be re-addressed to a purchaser at a cost of £525 + VAT.
Rateable Value
According to the Valuation Office website the rateable value for the property is £81,000.
The business rates multiplier is 0.562.
Tenure
The sale structure will provide an investor with a long leasehold interest in the retail unit, and ultimately a share (with appropriate voting rights) in a management company which will own the Menai Shopping Centre.
The interest being sold is a 999 year leasehold at a peppercorn rent. In addition the purchaser will be granted a share of the “Management Company”, Menai Centre Management Limited (Co. no. 16118710).
18 shares in the Management Company will be granted in relation to the various retail units at the Menai Shopping Centre. The current freeholder, Bearmont Capital Ltd, is obligated to currently continue managing and insuring the Menai Centre, by way of appointing a suitable managing agency; the agency current appointed is Mason Partners.
The vendor is gradually disposing of long leasehold interests of all the retail units. At the point when the last unit is sold, Bearmont Capital Ltd will relinquish control of the Management Company. The freehold title will transfer from Bearmont Capital Ltd to the Management Company, with a long-stop date of three years from completion of the sale of the first unit.
The 999 year leasehold interest will oblige the unit holder to pay a fair and proper proportion of the insurance and service charge relating to the Menai Centre. The unit holder will then be able to recover these costs from the tenant under the terms of the occupational lease.
The purchasers of the various retail units will be required to enter into a deed of covenant with two adjoining title owners in regard to the maintenance obligations over the service area, such maintenance being organised through the service charge of the centre. Please refer to the legal package.
Freeholder
Bearmont Capital Ltd is part of the Bearmont Group, a highly regarded multi-disciplined property investment business. Further details can be found on the company’s website.
Tenancy
The ground floor unit is let to City Sports & Cocktail Bar Limited (Co. No. 15870818) on a full repairing and insuring lease for a term of 15 years from 25th December 2024, expiring on 24th December 2039.
The initial passing rent is £60,000 per annum, rising after three years to £65,000 per annum and then to £70,000 after five years.
The lease provides for a six month rent free period, with the rent commencing 25th June 2025. The vendor will “top-up” the rent free by a reduction on the completion sum, to ensure the purchaser does not suffer and income shortfall.
Service Charge
The service charge budget for the Menai Shopping Centre for the year 2024-2025 is £327,460. The allocation to this unit is £12,499.95. Full information of the budgets and reconciliations is available to download.
EPC
The property has an Energy Performance Certificate assessment as A.
Covenant
The tenant, City Sports & Cocktail Bar Limited (Co. No.15870818) was incorporated 1st August 2024. Whilst this is a new company, significantly the tenant has reported invested over £400,000 in the fit-out of the property, reflecting their commitment to the property.
VAT
The property is elected for VAT. We anticipate the sale should be capable of being treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek a figure of £700,000 (Seven Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 8.2% rising to 9.5% (assuming standard purchaser’s costs of 45.05%).
Please note that a purchaser will be re-charged the costs of the searches (£1,388.91) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1% of the Sale Price plus VAT.
Investment Considerations
An opportunity to acquire a prominent retail unit in an area of significant regeneration;
The property occupies a prominent position in the town centre;
999 year leasehold interest for sale, along with a share in the management company due to own the freehold of the Menai Shopping Centre.
The property has an EPC rating of “A”;
The property is newly refurbished and let on a new 15 year lease;
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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