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Accommodation
The property has been measured by BKR Floor Plans and provides the following net internal floor areas:
| 27 Market Hall Street (Co-operative Travel) | ||
| Net Frontage | 4.42 m | 14’6” |
| Gross Frontage | 4.88 m | 16’0” |
| Zone A | 26.20 sq m | 282 sq ft |
| Zone B | 25.64 sq m | 276 sq ft |
| Zone C | 17.37 sq m | 187 sq ft |
| Remainder | 12.73 sq m | 137 sq ft |
| ITZA | 484 | |
| Ground Floor Total | 81.94 sq m | 882 sq ft |
| First Floor | 39.30 sq m | 423 sq ft |
| Total | 121.23 sq m | 1,305 sq ft |
| 29 Market Hall Street (Pyramid Pharmacy) | ||
| Net Frontage | 6.55 m | 21’6” |
| Gross Frontage | 7.62 m | 25’0” |
| Zone A | 39.20 sq m | 422 sq ft |
| Zone B | 40.60 sq m | 437 sq ft |
| Zone C | 39.58 sq m | 426 sq ft |
| Remainder | 16.35 sq m | 176 sq ft |
| ITZA | 769 | |
| Ground Floor Total | 135.73 sq m | 1,461 sq ft |
| First Floor | 63.17 sq m | 680 sq ft |
| Total | 198.90 sq m | 2,141 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 £810 + VAT.
Rateable Value
According to the Valuation Office website the rateable value for the property is as follows:
| 27 Market Hall Street | £18,000 |
| 29 Market Hall Street | £28,250 |
The business rates multiplier is 49.9 pence.
Tenure
Long leasehold interest until 22 July 2146 at a peppercorn rent (approximately 122 years remaining).
Tenancies
27 Market Hall Street is let to Kenmare Estates Limited (t/a Co-operative Travel), on a full repairing and insuring lease for a term of 10 years from 4th March 2019, expiring 3rd April 2029. The current passing rent is £25,000 per annum. The lease contained a tenant break option in April 2024; the tenant did not exercise the break and agreed to keep the rent at the existing level whilst being granted a rent-free period by the landlord of 6 months from September 2023.
29 Market Hall Street is let to Gillpharm Limited (t/a Pyramid Pharmacy), guaranteed by Pyramid Pharma Pharmaceuticals Limited, on a full repairing and insuring lease for a term of 15 years from 30th August 2021, expiring on 30th August 2036 (in excess of 12 years unexpired). There is a tenant’s break option on 31st August 2031, subject to six months’ notice. The current passing rent is £35,000 per annum. The lease benefits from 5 yearly upwards only rent reviews, the next being on 31st August 2026. The tenant had a break option on 31st August 2026 which was recently removed in return for a payment of just £2,083 (+ VAT) from the landlord, the rent remaining the same.
Therefore, an investor will benefit from a total income of £60,000 per annum, £25,000 secured for 4.75 years terms certain and £35,000 for approximately 7 years term certain.
Service Charge
The service charge for 2022-2023 was only £5,056.71, reflecting £1.47 per sq ft / £15.80 per sq m. The current service charge budget for the year 2023-2024 is £9,198.18, still low at £2.67 per sq ft / £28.73 per sq m. The service charge is elevated in the current year due to one-off works to the service yard (including a new access barrier).The service charge budget is expected to return to 2022-2023 levels next year.
Importantly, note the service charge for the units in question has only a limited contribution to the main shopping centre. Please refer to the service charge information in the data room. Note: referred to as “Unit 2, Market Hall St” and “Unit 3, Market Hall St” in the budget.
Covenants
27 Market Hall Street
Kenmare Estates Limited has reported the following figures:
| Year Ending | 28th January 2023 | 28th January 2022 |
| Turnover | £24,775,319 | £20,264,701 |
| Pre-Tax Profits | £11,322,319 | £1,774,536 |
| Net Assets | £11,145,023 | £4,414,506 |
Kenmare Estates is a Registered Society whose principal activity is property management on behalf of fellow Group companies. The Society is a wholly owned subsidiary of The Midcounties Co-operative Limited.
The Midcounties Co-operative is a thriving co-operative with over 700,000 members, making it one of the largest co-operatives. It operates the Your Co-op family of businesses which spans Food, Travel, Childcare, Energy, Telecoms, Post Offices and Flexible Benefits. The society’s heartlands are in Oxfordshire, Gloucestershire, Buckinghamshire, Shropshire, Staffordshire, the West Midlands, Wiltshire and Worcestershire.
For the year ending 27th January 2024, The Midcounties Co-operative Limited reported a Revenue of £837,025,000 and Net Assets of £106,387,000. Travel had a record year for gross sales, delivering £176.4 million, an increase of £23.1 million over the previous year. For further information please visit www.midcounties.coop.
29 Market Hall Street
For the year ending 31st December 2022 the tenant, Gillpharm Limited (Co. No. 13058137), reported Net Assets of £107,881.
For the year ending 30th April 2023 the guarantor, Pyramid Pharma Pharmaceuticals Limited (Co. No. 03844664), reported Net Assets of £6,248,011.
Pyramid Pharmacy is a family run business which was established in 2010. The company’s vision is to provide the best possible service to the local community without the usual stress associated with healthcare. The company has branches in Beaconsfield, Iver, Golders Green, Acton, Kew Gardens, Barkingside, Englefield Green, Ashford, Woolwich, Blackheath and Penge. For further information please visit www.pyramidpharmacy.co.uk.
Please refer to the payment histories in the data room. Note the pharmacy and Co-op both have good payment histories with no outstanding debts to the landlord.
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).
Proposal
We are instructed to seek a figure of £635,000 (Six Hundred and Thirty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0%, assuming purchasers’ costs of 5.15%.
Please note that a purchaser will be re-charged the costs of the measured survey (£810+ VAT) and searches (£1,033.29+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
An opportunity to acquire a high yielding high street retail investment;
The property occupies a prime retailing pitch in the heart of the town centre, forming part of the Cannock Shopping Centre;
Secure income with recent lease events;
27 Market Hall Street is let to Kenmare Estates Ltd (t/a Co-operative Travel), part of the The Midcounties Co-operative (Net Assets £106m);
29 Market Hall Street is let to an established pharmacy, providing in excess of 12 years unexpired lease term;
Attractive net initial yield;
Attractive lot size to an investor;
