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High Yielding Town Centre Retail Investment

Unit 25, Cannock Shopping Centre, Cannock, United Kingdom, WS11 1WS
for sale Clicktopurshase Icon Private Treaty
£ 91,000 Subject to contract

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 unit
  • Located at the entrance to the Cannock Shopping Centre
  • Let to Card Stop
  • New lease from February 2024
  • £91,000, subject to contract
  • 14.0% Net Initial Yield

Situation

The property is prominently located at the entrance to the Cannock Shopping Centre.

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, JD Sports, 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 area is for sales with the first floor providing ancillary/staff accommodation.

The property benefits from a rear service area, accessed via Stafford Road.

Accommodation

Unit 25 (Cardstop)  
   
Net Frontage5.26 m17’3”
Gross Frontage6.02 m19’9”
Zone A33.82 sq m364 sq ft
Zone B31.49 sq m339 sq ft
Zone C8.18 sq m88 sq ft
ITZA 556
Ground Floor Total73.48 sq m791sq ft
   
First Floor43.66 sq m470 sq ft
   
Total117.15 sq m1,261 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 £288.33 + VAT.

Rateable Value

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

Unit 25 £21,250

The business rates multiplier is 49.9 pence. The seller has appealed the valuations and expects tenants to benefit from lower rates going forward.

Tenure

Long leasehold interest until 22 July 2146 at a peppercorn rent (approximately 122 years remaining).

Tenancy

Unit 25 is let to Card Stop Limited on a full repairing and insuring lease for a term of 3 years from 1st February 2024, expiring on 31st February 2027.  The current passing rent is £13,000 per annum.  The lease contains a rolling mutual break option exercisable on 6 months’ notice after the first anniversary of the term commencement.  The lease is outside 1954 Act protection.

Service Charge

The service charge for 2024-2025 for  Unit 25 is £7,173.43. Please note that the service charge is fully paid for by the tenant. Please refer to the service charge information in the data room.

Covenant

Year Ending31st August 202331st August 2022
Net Assets£19,084£16,050

Card Stop is a local card shop offering cards, gifts, balloons and more.

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 £91,000 (Ninety One Thousand Pounds), subject to contract, reflecting a net initial yield of 14.0%, assuming purchasers’ costs of 1.8%.

Please note that a purchaser will be re-charged the costs of the measured survey (£288.33+ VAT) and searches (£115.49+VAT) 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 plus VAT.

Investment Considerations

  1. An opportunity to acquire a high yielding retail investment;

  2. The property occupies a prime retailing pitch, forming the entrance to the Cannock Shopping Centre;

  3. Let to an established retailer;

  4. New lease from February 2024;

  5. Attractive net initial yield;

  6. Attractive lot size to an investor.

Contacts

Singer Vielle
Singer Vielle
+44 (0) 207 935 7200
Neil Singer
+44 (0) 207 935 7200
neil@singervielle.co.uk
Dale Henry
+44 (0) 203 701 1356
dale@singervielle.co.uk
Sam Kayne-Levenson
+44 (0) 203 478 9121
sam@singervielle.co.uk
Vendor's Solicitor Firm
Fisher Jones Greenwood Solicitors
0845 543 5700
Agency Image
Keeley Miller
+44 (0) 124 545 7098
kmiller@fjg.co.uk
See website for full details : https://singervielle.com

Disclaimer

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

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