English 
Arabic 
Chinese 
French 
German 
Hebrew 
Spanish 
Accommodation
The property has been measured by BKR Floor plans and provides the following net initial floor areas:
| Gross Frontage | 9.37 m | 30’9” |
| Net Frontage | 8.69 m | 28’6” |
| Ground Floor NIA | 286.97 sq m | 3,089 sq ft |
| Ground Floor GIA | 301.74 sq m | 3,248 sq ft |
| Zone A | 53.97 sq m | 581 sq ft |
| Zone B | 61.13 sq m | 658 sq ft |
| Zone C | 65.03 sq m | 700 sq ft |
| Remainder | 106.84 sq m | 1,150 sq ft |
| ITZA | 1,228.75 UNITS |
A measured survey and set of floor plans are available to download. This will be assigned to a purchaser at a cost of £695 + VAT.
Tenure
Virtual Freehold.
A new 999 year long leasehold, from completion of this transaction at a peppercorn rent.
Tenancy
The property is let to 200 Degrees Coffee Shops Ltd (t/a 200 Degrees° Coffee) on a full repairing and insuring lease for a term of 10 years, from 24th February 2023, expiring 23rd February 2033. The lease is subject to a tenant only break option on 24th February 2028, subject to 6 month’s written notice.
Therefore there are 9.5 years unexpired and 4.5 years to the break clause.
The passing rent is £60,000 per annum, rising to £62,500 from 24th February 2025 and rising again to £65,000 from 24th February 2026. There is an upwards only open market value rent review effective 24th February 2028.
The tenant benefits from a rent-free period which will expire on 24th August 2024. The vendor will top up the rent by way of an adjustment to the completion sum so that a purchaser will effectively receive £60,000 per annum from completion.
The passing rent equates to a Zone A rate of £49 per square foot.
The property was previously let to Patisserie Valerie who were paying a rent of £75,000 per annum.
Service Charge
The property forms part of The Grosvenor Shopping Centre for which it has a share of communal charges. The budget for 2023 is £13,542.
The service charge is fully recoverable from the tenant.
Covenant
200 Degrees Coffee Shops Ltd (Co. No. 08902756) has reported the following figures:
| 31 March 2022 | 31 March 2021 | |
| Total Assets Less Current Liabilities | £1,757,410 | £881,097 |
| Cash at Bank and in Hand | £1,309,601 | £1,167,857 |
| Net Worth | £1,101,552 | £269,034 |
200 Degrees° Coffee is a coffee shop chain and barista school trading from 20 coffee shop locations and 7 barista schools locations across the United Kingdom.
In addition to the physical store business, 200 Degrees° Coffee operate an online shop selling coffee beans, coffee pods, coffee machines, home brew equipment and merchandise.
The company has grown sustainably over last 10 years to a successful and profitable business.
For further information visit www.200degs.com.
VAT
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.
Proposal
We are instructed to seek offers of £715,000 (Seven Hundred and Fifty Thousand Pounds), subject to contract, reflecting a Net Initial Yield of 8%, and a guaranteed Reversionary Yield of 8.3% from February 2025 and 8.63% from February 2026, assuming standard purchaser’s costs of 5.33%.
Please note that a purchaser will be re-charged the costs of the measured survey (£695 + VAT), the searches (£xxx) which are provided in the data room and a transaction fee of 1% + VAT.
Investment Considerations
Well located next door to the Grosvenor Shopping Centre;
The property benefits from a generous amount of outdoor seating;
The tenant has extensively refurbished the property;
The property is Grade II listed – no risk of having to pay empty business rates;
200 Degrees currently trade from 20 locations;
The rent has been rebased to £60,000 per annum from £75,000 per annum
Let on a new lease from February 2023;
9.5 years to expiry and 4.5 years to the break clause;
Fixed rental increases in February 2025 and February 2026;
Attractive lot size to an investor.
- 8% Net Initial Yield, Guaranteed Yield of 8.3% in 2025 and 8.63% in 2026
