The property has been measured by BKR Floor Plans and provides the following floor Net Internal floor areas:
|Net Frontage||13.72 m||45’|
|Gross Frontage||14.17 m||46’6”|
|Zone A||68.93 sq m||742 sq ft|
|Zone B||67.26 sq m||724 sq ft|
|Ground Floor||136.19 sq m||1,466 sq ft|
|First Floor||124.58 sq m||1,341 sq ft|
|Ground Floor ITZA||1,104 UNITS|
|Total NIA||260.77 sq m||2,807 sq ft|
|Total GIA||318.37 sq m||3,427 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 £475 + VAT.
The property is let to The Air Ambulance Service Trading Limited on an internal repairing and insuring lease for a term of 3 years from 25th January 2022, expiring 24th January 2025 at a passing rent of £12,000 per annum. The rent is paid monthly. There is a tenant break clause effective 25th January 2024, subject to 6 months’ notice. The tenant did not exercise their 25th January 2023 break clause, demonstrating their commitment to this location.
Therefore, there are 2 years unexpired.
Whilst the tenant is responsible for internal repairs, this excludes air conditioning. The tenant pays a fair and reasonable proportion for external and structural repairs by way of the service charge, subject to a cap of £3,000 per annum.
The rent payable under the previous lease to The Air Ambulance Service Trading Limited was £30,000. Therefore, the rent has been rebased to just 40% of the previous rent.
Based on our analysis the passing rent equates to a Zone A rate of just £10.87 per square foot.
The two flats on the second floor have been sold off on one long lease with just 93 years unexpired. The ground rent is a peppercorn.
The car park at the rear is let to under a management agreement to NCP Commercial Services Ltd for an initial term of 18 months from 1st December 2022 at a rent of £9,000 per annum. After the first 12 months, the agreement is to automatically extend on a month-to-month basis until terminated by either party, subject to providing 1 months’ notice.
Therefore, the total passing rent is £21,000 per annum.
The Air Ambulance Service Trading Limited (Co. No. 06987161) has reported the following figures:
|31st December 2021||31st December 2020||31st December 2019|
The company have been providing vital air ambulance services since 2003 across five countries and operate the national children’s Air Ambulance and the local air ambulance services for Warwickshire, Northamptonshire, Derbyshire, Leicestershire and Rutland.
Critical care paramedics, doctors and pilots attend an average of ten rescue missions a day. There are various forms of fund raising in place including donations, online shop, will gifting and a lottery to name a few.
For further information see www.theairambulanceservice.org.uk.
NCP Commercial Services Ltd (Co. No. 06065600) has reported in their September 2020 accounts – Total Shareholder’s Funds of £8,977,000.
NCP is the UK’s most recognised and longest standing private car park operator having been sounded in 1931. NCP operates car parking spaces across the UK at over 500 sites, possessing a 30% market share.
The company’s immediate parent company is MEIF II CP Holdings 3 Limited, incorporated and registered in England. The ultimate parent company is Park24, a company incorporated in Japan and listed on the Tokyo Stock Exchange.
For further information see www.ncp.co.uk.
The property has been registered for VAT. It is anticipated that the sale of this property will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in the region of £200,000 (Two Hundred Thousand Pounds), subject to contract. This price reflects a net initial yield of 10.26%, assuming purchasers’ costs of 2.3%.
Please note that a purchaser will be re-charged the costs of the measured survey (£475 + VAT) and searches (£750.82) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1% of the Purchase Price plus VAT.
An opportunity to acquire a retail investment in the most populated urban area of Hertfordshire;
The property occupies a busy pitch in the town centre with a return frontage;
The property benefits from a service yard with car parking to the rear;
Let to an established Air Ambulance company and NCP Commercial Services Ltd;
Re-based retail rent to 40% of the previous rent;
Potential for lease extensions on the sold off flats;
Opportunity to add residential accommodation above the existing flats, subject to planning consent;
Tenant has been in occupation since 2016;
The purchase at the asking price reflects an attractively high net initial yield;
Attractive lot size to an investor.