The property has listed building consent for the conversion of the second floor. There is currently 1 x 1 bedroom flat on the second floor and the permission is to create an additional 5 x 1-bedroom flats with open plan living room and kitchen. Planning Application Number 7-2021-12534-P.
There current 1×1 bedroom flat is currently producing £10,800 per annum.
Based on the passing rent of the existing flat, we suggest that the ERV of the flats once the planning permission is implemented will be in the order of £65,000.
Ellis & Partners currently manage The Arcade. The service charge runs on a calendar year basis and is demanded quarterly on account based on a service charge budget.
The service charge budget for the year ending December 2023 is £64,994 which reflects £xxx psf.
For the year ending December 2023, there is a total of £9,922 in service charge arears owed by tenants and £1,518 relating to the previous year.
The property has been measured by BKR Floor plans and provides the following net initial floor areas:
MS Table here
A measured survey and set of floor plans are available to download. This will be assigned to a purchaser at a cost of £xxx + VAT.
- Extend / re-gear existing leases.
- Implement residential planning permission for to create an additional 5 x 1 bedroom flats on the second floor.
- Seek rental increases at renewals.
- Refurbish the arcade.
Units 12, Unit 13 and the old House of Fraser are held in separate ownership but have entrances on to the Arcade. A deed of covenant dated 1922 sets out several provisions in respect of The Arcade. Further information can be downloaded from the data room.
The Arcade is currently multi let to 8 tenants. There are 3 vacant units and vacant basement accommodation. The vendor will provide a 2-year rental and service charge top up on the vacant elements.
The total rental income, including vendor top ups is £576,906 per annum. The total annual top up amount is £75,000.
The previous total rent was approximately £878,406 per annum.
So, the rent has been re-based downwards to 66% of the previous rent.
The occupied units are let on full repairing and insuring leases to a mix of national and local retailers.
Some tenants include Waterstones, Space NK, Charles Fox Jewellers (whose lease is from 1961), Gembox Jewellers and Vintage Paradise to name a few.
A full tenancy schedule can be downloaded from the downloads section below.
The rents range from £xxx psf ZA to £xxx per sq ft Zone A. The highest Zone A rate achieved historically was £154 psf ZA.
57% of the income is secured against Waterstones Booksellers Ltd, Space NK Ltd and Charles Fox (Jewellers) Ltd.
The weighted average unexpired lease term is approximately 9 years.
|1||Space NK Ltd||Beauty products retailer with over 75 stores in the UK & Ireland. Previous lease commenced in 2007.||Website|
|2||Vintage Paradise||Vintage clothing and accessories.||Website|
|03-Apr||Richmond Classics||Founded in Bournemouth in 1988. Designer fashion.||Website|
|05-Jun||Gembox Jewellers Ltd||Jewellery Shop. Previous lease commenced in 2009.||Website|
|14-16||Waterstones Booksellers Ltd||British book retailer with over 300 stores. Previous lease commenced in 2014.||Website|
|17||Essential Jewellers||Founded in 1990. Jewellery Shop with 5 stores. Previous lease commenced in 2014.||Website|
|18-19||Fantastic Things||Gifts, Homeware and clothing shop.||Website|
|20||Charles Fox (Jewellers) Ltd||In occupation of Units 21-22a since 1969. Have recently expanded into Unit 20. Official Rolex dealer, fine jewellery and diamonds.||Website|
|23-23a||Maravi Brands||Coffee Shop.||Website|
Space NK Ltd (Co. No. 02773985), has reported the following figures:
|26 March 2022||27 March 2021||28 March 2020|
For further information visit www.spacenk.com.
The high profits in 2021 are because of an intercompany sale.
Waterstones Booksellers Ltd (Co. No. 00610095), has reported the following figures:
|30 April 2022||24 April 2021||25 April 2020|
For further information visit www.waterstones.com.
Charles Fox (Jewellers) Ltd (Co. No. 00202014) has reported the following figures:
|31 January 2022||31 January 2021||25 April 2020|
For further information visit www.charlesfoxjewellers.com.
Richmond Classics Limited (Co. No. 02192148) has reported the following figures:
|31 January 2022||31 January 2021||25 April 2020|
The property has been registered for VAT and it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC) so that VAT will not be payable on the purchase price.
We are instructed to seek offers of £6,500,000 (Six Million Five Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 8.32%, assuming standard purchaser’s costs of 6.64%.
Please note that a purchaser will be re-charged the costs of the measured survey (£xxx + VAT), the searches (£xxx) which are provided in the data room.
- Rare opportunity to acquire an iconic retail arcade in the heart of
- BournemouthPlanning permission to create an additional 5 flats on the second floor
- Rent has been rebased downwards to 66% of the previous rent
- Prominent frontages onto Old Christchurch Road and Gervis Place
- Potential to increase the massing on the upper parts, subject to planning permission
- Grade II listed – no empty rates payable
- Future rental growth potential
- Significant investment has been deployed into the surrounding area
- Located just 350 from the famous Bournemouth Pier