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Accommodation
The property has been measured by Trueplan and provides the following accommodation:
| Retail (NIA) | ||
| Ground Floor | 63.6 sq m | 684 sq ft |
| Basement | 70.8 sq m | 762 sq ft |
| Retail Total | 136.0 sq m | 1,446 sq ft |
| Residential (GIA) | ||
| Ground Floor | 21.5 sq m | 231 sq ft |
| First Floor | 94.3 sq m | 1,015 sq ft |
| Second Floor | 51.9 sq m | 558 sq ft |
| Residential Total | 167.7 sq m | 1,804 sq ft |
| Garage / Stores | 56.1 sq m | 603 sq ft |
A copy of the measured survey is available to download.
Rateable Value
According to the Valuation Office website the rateable value for the shop is £48,000. The business rates multiplier is 49.9 pence. However, listed property rates exemption applies so there are no rates currently payable.
Tenure
Freehold.
Tenancies
The property is multi-let to three tenants, producing a total net income of £58,400 per annum.
The income is split as follows:
| Retail | 51% |
| Residential | 26% |
| Car Park | 23% |
Please refer to the summary below and the tenancy schedule which is available to download.
Retail
The ground floor and basement are let to Electronic Cigarettes Limited (t/a Vape Shop), on a full repairing and insuring lease for a term of 10 years from 13th May 2024, expiring on 12th May 2034. There is a tenant’s break option on 12th May 2029, subject to six months’ notice. The passing rent is £30,000 per annum. The lease benefits from an upwards only rent review on 13th May 2029.
The tenant has been in occupation since 2019 and signed a new lease in May 2024, demonstrating their commitment to this location. The rent was previously £40,000 per annum so has been re-based.
Residential
The first and second floor residential maisonette is let on an Assured Shorthold Tenancy (AST) for a term of 12 months from 29th June 2024, expiring on 28th June 2025 at a rent of £1,250 per calendar month (£15,000 per annum). One car parking space is included.
Car Park
15 spaces within the rear car park are let to NCP Commercial Services Limited under a parking agreement for a term of 12 months from 1st November 2023. Thereafter, the agreement will be automatically extended on a month-to-month basis until terminated by either party.
The gross rent is £19,000 per annum. In accordance with the agreement the Landlord pays the rates. Therefore, after deduction of rates, the net income is £13,400 per annum.
NCP has expressed an interest in renewing their agreement. In addition, the Landlord has received an offer from another national car parking operator who have proposed a 4 year lease, subject to a break option at year 2, at an increased gross rent of £21,500 per annum.
Hence, an investor will benefit from a total income of £58,400 per annum increasing to £60,900 per annum if the new car parking proposal is accepted.
Service Charge
In accordance with their occupational lease the retail tenant is required to contribute to the service charge. The service charge information is available to download.
Given that the property was comprehensively refurbished in 2017 and has been well maintained, expenditure has been minimal.
Covenant
For the year ending 31st December 2023, Electronic Cigarettes Limited (t/a Vape Shop) reported Net Assets of £759,846.
Established in 2014, Vape Shop is an online and in-store outlet supplying quality vape products at everyday low prices. With 13 stores throughout the UK, Vape Shop is an official member of the UK Vaping Industry Association (UKVIA) which is the largest trade body in the UK representing the vaping sector. For further information visit www.vapeshop.co.uk.
NCP is the UK’s number one car park operator, whose estate spans the whole of the United Kingdom with over 200,000 parking spaces in over 800 sites. NCP Commercial Services Limited’s ultimate controlling party is Park24, a Japanese company operating across seven countries and listed on the Tokyo Stock Exchange.
Development Potential
The property extends to approximately 0.19 acres and benefits from a low site cover of 25%.
As shown from the aerial photographs, there is a substantial car parking area at the rear totalling approximately 381 sq m (4,100 sq ft). The property offers potential for extension and development on this rear site, subject to obtaining the necessary planning consents.
In addition, the storage and garage areas to the rear of the building provide further development potential, subject to planning. A proposal for a residential scheme was previously submitted and is available to view in the data room.
VAT
The property has been opted for tax and 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 £650,000 (Six Hundred and Fifty Thousand Pounds), subject to contract, for the freehold interest.
Allocating an investment yield of 9.0% to the retail accommodation and the car park equates to a value of £468,000, leaving a value of £182,000 in relation to the residential element.
The maisonette has been valued by local agents at a figure of £230,000, hence at the apportioned value of £182,000 it is at a substantial discount to the vacant possession value.
The overall blended yield is 9.0% (gross).
Please note that a purchaser will be re-charged the cost of searches (£846.11) 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 + VAT.
Investment Considerations
- An opportunity to acquire a South East, mixed-use investment;
- The property occupies a prime retailing pitch in the heart of Maidstone town centre;
- Retail unit let to an established tenant who signed a new lease in May 2024, demonstrating their commitment to this location;
- Large residential maisonette on first and second floors, let on an AST;
- Large car park at the rear currently let to NCP (23% of the income);
- Opportunities to enhance the value and extend the property onto the rear car parking area, subject to planning;
- Grade II listed building, hence no empty rates payable;
- The property was comprehensively refurbished in 2017;
- Freehold;
- A purchase at the asking price reflects an attractive yield;
- Attractive lot size for an investor.
