High Yielding Retail And Leisure Investment

AIR AMBULANCE SERVICE TRADING LTD & THE GLASSWORKS PUBLIC HOUSE,BREWERY STREET, RUGELEY, WS15 2DY

INVESTMENT SUMMARY

n Located in Rugeley town centre.

n Multi let retail, leisure and car park investment.

n WAULT of 11 years to break and 12 years to expiry.

n Pub let for over 18 years.

n Total income £111,710 per annum.

n We have been instructed to seek offers in excess of £815,000 which reflects a net initial yield of 13.0%, after purchaser’s costs of 5.80%

LOCATION

The historic market town of Rugeley is in the district of Cannock Chase and the county of Staffordshire. Located approximately 27 miles north of Birmingham, 6 miles north-east of Cannock, 9 miles south-east of Stafford and 7 miles north west of Lichfield.

The town is served by the A51 Lichfield to Stone trunk road as well as the A460 from Cannock which provides direct access to J11 of the M6, 9 miles to the south-west. The town has two railway stations, Rugeley Trent Valley and Rugeley Town, which connects the town to Walsall and Birmingham. Rugeley Trent Valley lies on the West coast main line, with regular services to London via Lichfield. The town has a resident population of approximately 25,000 people.

SITUATION

The property is situated in Rugeley town centre in close proximity to the town’s main retail pitch over-looking Brook Square and is accessed via Brewery Street which is part pedestrianised, and Albion Street.

Occupiers in the vicinity include Boots, Lloyds Bank, Coral, Greggs, WH Smith, Stead & Simpson, New Look, Peacocks, Card Factory, Clintons, Specsavers, Savers and Costa.

DESCRIPTIONThe property comprises a former Somerfield supermarket which has been comprehensively refurbished to provide a ground floor retail unit with ancillary accommodation at first floor and a single storey pub.

The property is of steel frame construction with a combination of brick and glazed elevations and a slate tiled and metal clad roof. Both units are fully fitted to the tenants’ specifications.

Externally there is a 44 space tarmacadam surface car park and loading yard for both units.

ACCOMODATION

TENUREFreehold.

TENANCIESThe retail unit is let to The Air Ambulance Service Trading Ltd for a term of 6 years expiring on 23 July 2018. The lease is held on effective full repairing and insuring terms subject to a Schedule of Condition, a copy of which is available on request. There is an upwards only rent review on 23 July 2015 to open market value. The tenant has an option to break the lease on 23 July 2015, subject to six months prior written notice. The current rent is £35,000 per annum (£6.55 psf).

The leisure unit is let to Central Drinks 4 Ltd, on assignment from Bramwell Pubs and Bars Ltd, for a term expiring on 23 July 2032. The lease is held on full repairing and insuring terms, subject to 5 yearly upward only reviews to open market value. The current rent is £64,500 per annum (£12.01 per sq. ft)

The car park is let on a license to Euro Car Parks Ltd expiring on 30 June 2015. The tenant has been in occupation under a rolling annual license for over five years. The car park is operated under a management contract and the rent payable to the landlord for 2013 was £12,210 per annum.

Total income is £111,710 per annum.

PREMISES DESCRIPTION AREA sq.m. AREA sq.ft.

Retail Unit Ground Floor 489.26 5,266

First Floor 86.15 927

Sub-total 574.41 6,193

Leisure Unit 515.75 5,552

TOTAL 1,090.16 11,745

COVENANTSCentral Drinks 4 LtdCentral Drinks are a pub operator with 15 pubs in their portfolio. The company operate pubs locally in Cannock, Oldbury and Burton upon Trent.

The company owners also own the Simply Fresh convenience store chain which has 48 stores in the group.

Air Ambulance Service Trading LtdThe Air Ambulance Service Trading Ltd was set up to fund the many doctors, paramedics, and pilots in their charity scheme. The company has 27 shops throughout the UK extending not just to bargain stores but also designer boutiques. The subject property is the only unit in the Midlands with a large furniture offer alongside clothing and other items. Company accounts are available on request.

Euro Car Parks LtdEuro Car Parks are a market leader in the car parking industry with over 750 car parks across the UK, Ireland and Europe. The company employs over 1000 staff. Company accounts are available on request.

EPCThe units have the following ratings:

Retail unit - C71Leisure unit - D83

VATThe vendor has elected to waive exemption for VAT and accordingly VAT is charged on the rent. The sale should qualify as a TOGC, subject to purchaser’s status.

PROPOSALWe are instructed to seek offers of £815,000, for the freehold interest in the property. A purchase at this level reflects a net initial yield of 13%, after purchaser’s costs of 5.80%.

CONTACTSFor further information or if you wish to arrange a viewing, please contact :-

BEN BLACKWALL 0121 513 0893ben.blackwall@fspproperty.co.uk

ANDREW PRICE0121 513 0892andrew.price@fspproperty.co.uk

Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Franck Steier Price Ltd

Third Floor, Victoria House

114-116 Colmore Row, Birmingham, B3 3BD