Accommodation
The property has been measured by BKR Floor Plans and provides the following net internal floor areas:
Unit 23 (Costa Coffee) | ||
Net Frontage | 6.17 m | 20’3” |
Gross Frontage | 6.63 m | 21’9” |
Zone A | 37.62 sq m | 405 sq ft |
Zone B | 32.05 sq m | 345 sq ft |
Zone C | 18.86 sq m | 203 sq ft |
ITZA | 628 | |
Ground Floor Total | 88.53 sq m | 953 sq ft |
First Floor | 72.18 sq m | 777 sq ft |
Total | 160.72 sq m | 1,730 sq ft |
Unit 24 (EE) | ||
Net Frontage | 6.02 m | 19’9” |
Gross Frontage | 6.48 m | 21’3” |
Zone A | 34.47 sq m | 371 sq ft |
Zone B | 33.07 sq m | 356 sq ft |
Zone C | 6.69 sq m | 72 sq ft |
ITZA | 567 | |
Ground Floor Total | 74.23 sq m | 799 sq ft |
First Floor | 45.34 sq m | 488 sq ft |
Total | 119.56 sq m | 1,287 sq ft |
Unit 25 (Cardstop) | ||
Net Frontage | 5.26 m | 17’3” |
Gross Frontage | 6.02 m | 19’9” |
Zone A | 33.82 sq m | 364 sq ft |
Zone B | 31.49 sq m | 339 sq ft |
Zone C | 8.18 sq m | 88 sq ft |
ITZA | 556 | |
Ground Floor Total | 73.48 sq m | 791sq ft |
First Floor | 43.66 sq m | 470 sq ft |
Total | 117.15 sq m | 1,261 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 £865 + VAT.
Rateable Value
According to the Valuation Office website the rateable value for the property is as follows:
Unit 23 | £25,500 |
Unit 24 | £23,000 |
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).
Tenancies
Unit 23 is let to Costa Limited on a full repairing and insuring lease for a term of 5 years from 29th September 2023, expiring 28th September 2028. The current passing rent is £22,500 per annum. The tenant pays the rent monthly. The lease contains a tenant break option on 29th September 2026.
In the event of a Government enforced lockdown as a result of a health emergency event, the rent payable will be reduced by 50% during this period.
The tenant has been in occupation since 2012 and renewed their lease in 2023, demonstrating their commitment to this location.
The rent was rebased at renewal from £42,291 pa (inclusive of a turnover top-up).
Unit 24 is let to EE Limited on a full repairing and insuring lease from 9th January 2023, expiring 8th January 2028. The tenant did not exercise their break option on 9th January 2025, demonstrating their commitment to the unit. There is a further tenant break option on 9th January 2027, subject to 6 months’ prior notice.
In the event of a government enforced lockdown as a result of a health emergency event, the rent payable will be reduced by 50% during this period.
The tenant has been in occupation since 206 and renewed their lease in 2023, demonstrating their commitment to this location. The rent was rebased from £48,000 pa. The tenant has been in occupation for over 18 years.
The current passing rent is £18,500 per annum. The tenant will have a 2-month rent free period from 9th January 2025, and a 1-month rent free period from 9th January 2027 if they do not exercise their break. The seller will top up the 2-month rent free period.
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 tenant pays the rent monthly. 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.
Therefore, an investor will benefit from an income of £54,000 per annum
Service Charge
The service charge for 2024-2025 for the three units totals £24,385, reflecting £5.26 per sq ft / £56.61 per sq m. Please note that the service charge is fully paid for by the tenants. Please refer to the service charge information in the data room.
Covenants
Costa Limited (Co. No. 1270695) has reported the following figures
Year Ending | 31st December 2022 | 31st December 2021 |
Revenue | £1,222,856,000 | £ £1,117,450,000 |
Pre-Tax Profits (Loss) | -£9,632,000 | £245,950,000 |
Net Assets | £276,518,000 | £374,260,000 |
EE Limited (Co. No. 02382161) has reported the following figures (in thousands):
Year Ending | 31st March 2024 | 31st March 2023 |
Revenue | £7,169,000 | £6,913,000 |
Pre-Tax Profits | £1,405,000 | £1,771,000 |
Net Assets | £8,614,000 | £8,570,000 |
Card Stop Limited (Co. No. 12800451) has reported the following figures:
Year Ending | 31st August 2023 | 31st 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 £414,000 (Four Hundred and Fourteen Thousand Pounds), subject to contract, reflecting a net initial yield of 12.5%, assuming purchasers’ costs of 4.26%.
Please note that a purchaser will be re-charged the costs of the searches (£307.29) and the measured survey (£865 + VAT).
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
Investment Considerations
An opportunity to acquire a high yielding retail block;
The property occupies a prime retailing pitch, forming the entrance to the Cannock Shopping Centre;
Secure income from leading retailers;
Attractive net initial yield; and
Attractive lot size to an investor.