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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.
Accommodation
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
| Net Frontage | 7.52 m | 24’8” |
| Gross Frontage | 8.15 m | 26’9” |
| Zone A | 47.29 sq m | 509 sq ft |
| Zone B | 8.73 sq m | 94 sq ft |
| ITZA | 556 | |
| Total Ground Floor NIA | 603 sq m | 56.02 sq ft |
| First Floor Ancillary | 66.05 sq m* | 711 sq ft* |
*Note that an additional first floor ancillary is included in the demise. This area has not been measured.
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 £490 + VAT.
Tenure
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).
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 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.
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 Hays Travel Limited (Co. No. 01990682) on a full repairing and insuring lease for a term of 10 years from 10th August 2023 expiring on 9th August 2033. There is a tenant’s break option 10th August 2028. The current passing rent is £25,000 per annum, rising to £27,500 per annum on 10th August 2028. Please note the lease contains a Schedule of Condition.
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 £1,656.73. Full information of the budgets and reconciliations is available to download.
EPC
The property has an Energy Performance Certificate assessment as “B”.
Covenant
The tenant, Hays Travel (Co. No. 01990682), has reported the following figures;
| 30 April 2024 | 30 April 2023 | |
| Turnover | £2,547.177m | £2,186.057m |
| Pre-Tax Profits (Loss) | £73.403m | £51.553m |
| Shareholders’ Funds | £118.786m | £70.331m |
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 £225,000 (Two Hundred and Twenty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 11%, rising in August 2028 to 12% (assuming standard purchaser’s costs of 1.91%).
Please note that a purchaser will be re-charged the costs of the searches.
Please note that a purchaser will be charged a Transaction Fee of 1% of the Sale Price plus VAT.
Additional properties adjoining are for sale and can be combined into one transaction should a purchaser submit an acceptable proposal.
Investment Considerations
An opportunity to acquire the most prominent retail unit in Bangor, within an area of significant improvement;
The investment is located on the pedestrianised walkway leading to the new health and wellbeing hub;
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 is let to a strong covenant;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
