CLARENCE HOUSE, MARKET STREET, HINCKLEY - FREEHOLD TOWN CENTRE BLOCK INVESTMENT
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FREEHOLD TOWN CENTRE BLOCK INVESTMENT CLARENCE HOUSE, MARKET STREET, HINCKLEY
INVESTMENT SUMMARY
• Prime and prominent block
• Two banks, one shop and one office suite
• Tenants include Barclays Bank and Clydesdale Bank
• Total current rent £111,250 per annum
• Guide Price £1,160,000
• Initial yield 9.00% with immediate opportunity to increase
HINCKLEY
Hinckley is a market town with a long history extending back to Anglo Saxon times. It became established as a centre of the hosiery industry during the industrial
revolution but is now better known as the home of Triumph Motorcycles. The resident population is 45,249 and the local authority population is 105,000.
It is located in the Midlands halfway between Leicester and Coventry some 12 miles from each and about 5 miles from Nuneaton.
Communications are good with ready access to the Rail services are available to Birmingham and Nearest airports are East Midlands and Birmingham.
M69, M6 and A5. Leicester with onward links to London St Pancras
from Leicester.
HINCKLEY – CLARENCE HOUSE, MARKET STREET 2
INTRODUCTION The proposition comprises the freehold interest in a prominent town centre block with three well balanced units let to two banks and a café, with a small vacant office suite which might have suitability for a residential conversion. LOCATION The lively shopping area is centred on Castle Street, Market Place and The Borough and supplemented by the Britannia Shopping Centre. The market is very popular and operates on Mondays, Fridays and Saturdays. The new Crescent Scheme is now open and trading. It is located within walking distance of the town centre and anchored by a Sainsbury’s Superstore, Cineworld multiplex and Simply Gym. Leisure units have been taken by Costa, Burger King, Prezzo, Loungers and Rossini. Retail accommodation is limited but large units have been taken by TK Maxx and Poundland – both of whom are new to the town. The leisure elements of the scheme have undoubtedly enhanced Hinckley as a destination but the unit retail element is considered too limited to adversely effect the existing and vibrant town centre. The property occupies a very prominent trading location right in the centre of town at the junction of Castle Street, The Borough and Market Place. This location is particularly popular with banks with Barclays, Yorkshire, Halifax, HSBC and NatWest all represented. These, together with the Market and national retailers, ensure the pitch is busy. The location is indicated on the Goad plan extract. EPC EPC ratings are – Yorkshire Bank D, Café Rio D, Barclays C, Office suite B. Certificates and Reports are available on request. HINCKLEY – CLARENCE HOUSE, MARKET STREET 3
BRIEF DESCRIPTION 3 Market Place – Café Rio
The accommodation is predominantly arranged on ground and first floors within Gross Frontage 29’ 04” 8.94 m
an attractive building having brick and rendered elevations under pitched and
tiled flat roofs. There are three similarly sized units on the ground floor, two of Net Window Frontage 24’ 09” 7.54 m
which have full first floor cover whilst the other has a small office suite above.
Shop Depth 44’ 08” 13.62 m
The units are occupied by Barclays Bank, Yorkshire Bank and a café. Barclays
extends into the adjoining building (which is not included in this sale) however,
Ground Floor Sales Area 763 sq.ft. 70.88 m²
a substantial portion of the branch - including first floor - is within the subject
property.
Ground Floor Ancillary Area 301 sq.ft. 27.96 m²
ITZA (combined sales and ancillary) 616 units
DIMENSIONS
The property has the following approximate dimensions and floor areas (see 5 Market Place – Barclays Bank
also Summary page):-
1 Market Place – Yorkshire Bank Gross Frontage 18’ 10” 5.74 m
Net Window Frontage 16’ 07” 5.05 m
Gross Frontage 28’ 06” 8.69 m
Shop Depth 51’ 02” 15.60 m
Net Window Frontage 17’ 09” 5.41 m
Ground Floor Area 806 sq.ft. 74.88 m²
Splay Frontage 6 ’03” 1.91 m
ITZA 532 units
Return Frontage 48’ 07” 14.81 m
First Floor Area 1,107 sq.ft. 102.84 m²
Shop Depth 61’ 10” 18.85 m
3A Market Place – Vacant Office Suite
Ground Floor Area 1,921 sq.ft. 178.47 m²
ITZA 1,193 units Ground Floor Lobby 51 sq.ft. 4.76 m²
First Floor Area 1,507 sq.ft. 140.00 m² First Floor Offices 985 sq.ft. 91.51 m²
HINCKLEY – CLARENCE HOUSE, MARKET STREET 4
TENURE TENANT COVENANTS
(See also Summary page) Clydesdale Bank Plc (Company No. SC001111) is a major Scottish based
bank with about 200 branches and a subsidiary of National Australia Banking
The property is freehold. Group. For the year ending 30th September 2015 the company had
1 Market Place – Yorkshire Bank is let on an effective full repairing and shareholders funds of £3.458 billion. Experian rate the company ‘Below
insuring basis to Clydesdale Bank Plc (t/a Yorkshire Bank) for a term of 10 Average Risk’.
years, without breaks from 10th August 2009 and expiring on 8th August 2019 Barclays Bank Plc (Company No. 1026167) is one of the largest UK banks
at a current rent of £53,250 per annum. with over 1,800 branches and is the main operating subsidiary of Barclays Plc.
3 Market Place – Café Rio is let on an effective full repairing and insuring basis For the year ending 31st December 2015 the company had a turnover of
to Mr A B Harris and Mr M Shipway for a term of 15 years without breaks from £26.755 billion and pre-tax profit of £2.309 billion. Experian rate the company
1st June 2006 and expiring on 31st May 2021. The current rent is £30,000 per as ‘Low Risk’.
annum which is subject to rent review in 2018 and 2021. Café Rio is the trading name of two individuals and trading information is not
5 Market Place – Barclays Bank is let on an effective full repairing and publically available. We understand they took an assignment of the lease from
insuring basis to Barclays Bank Plc for a term of 18 years from 29th September Branagans (International) Ltd.
2009 and expiring on 21st June 2027 with a tenant break option on 21st June
2022 at a current rent of £28,000 per annum. There are rent reviews in 2019
and 2024. (Note, the adjoining portion of the branch is held on a co-terminus COMMENT ON RENT
basis with the same break date).
The passing rents reflect the following approximate zone A rates –
3A Market Place – Vacant offices are currently on the market at a quoted rent
of £8,000 per annum. 1 Market Place – Yorkshire Bank £53,250 per annum – Zone A rate of £41.20
per sq.ft.
Total current income is £111,250 per annum which should increase to
around £119,250 per annum on letting the offices. 3 Market Place – Café Rio £30,000 per annum – Zone A rate of £48.70 per
sq.ft.
5 Market Place – Barclays Bank £28,000 per annum – Zone A rate of £47.67
per sq.ft.
The general tone for Zone A rents in the town centre is around £40 - £50 per
sq.ft. so we consider the units to be fairly let with potential for rental growth.
HINCKLEY – CLARENCE HOUSE, MARKET STREET 5
SUMMARY
Dimensions
GF AREA 1ST AREA ITZA
UNIT TENANT FRONTAGE DEPTH
(sq.ft.) (sq.ft.) (units)
No.1 Clydesdale Bank Plc 28’ 06” 61’ 10” 1,921 1,507 1,193
No.3 Messrs A Harris and M Shipway 29’ 04” 44’ 08” 1,064 n/a 616
No. 5 Barclays Bank Plc 18’ 10” 51’ 02” 806 1,107 532
No. 3A Vacant 51 985
Totals 3,842 3,599
Tenancies
UNIT TENANT TRADING AS EXPIRY BREAK REVIEW RENT COMMENT
Well fitted modern branch on
No. 1 Clydesdale Bank Plc Yorkshire Bank 08/08/2019 None £53,250
ground and first floors.
Lease held by two individuals.
No.3 Messrs A Harris and M Shipway Café Rio 31/05/2021 None 2018,2021 £30,000
Lease assigned to current tenants.
Half of overall Barclays branch.
No. 5 Barclays Bank Plc Barclays Bank 21/06/2027 21/06/2022 2019, 2024 £28,000 Other half recently sold at circa
6%.
Office suite over Café Rio
No. 3A Vacant Vacant £0
available at £8,000 per annum.
Total £111,250
HINCKLEY – CLARENCE HOUSE, MARKET STREET
HINCKLEY – CLARENCE HOUSE, MARKET STREET 7
FREEHOLD TOWN CENTRE BLOCK INVESTMENT
CLARENCE HOUSE, MARKET STREET, HINCKLEY
PROPOSAL
For the freehold interest subject to the three incomes and vacant possession of the office suite
we seek a price of £1,160,000 subject to contract to show a net initial yield of 9.0% with costs at
5.9%. This should increase to 9.7% on letting the office suite.
Note – the other half of the Barclays Bank is let on a co-terminus lease with coinciding
break and reviews at a rent of £30,000 per annum. The investment was sold in the
Acuitus auction of 19th May 2016 where it sold for £490,000 to show a net yield of under
6%.
The property is registered for VAT and it is expected a sale will be by way of a TOGC.
The vendor wishes to retain the benefit of any capital allowances.
MISREPRESENTATION ACT
FURTHER INFORMATION These particulars are intended only as a guide to prospective purchasers to enable them to
decide whether to make further inquiries with a view to taking up negotiations but they are
otherwise not intended to be relied upon in any way or for any purpose whatever and
accordingly neither their accuracy nor the continued availability of the property is in any way
guaranteed and they are furnished on the express understanding that neither the agent nor
We can provide copy leases and floor plans. For any further information please contact: the vendor is to be, or come, under any liability or claim in respect of their contents. The
vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP
have any authority to make or give any representation or warranty whatsoever as regards the
property or otherwise. Any prospective purchaser or lessee or other person in any way
Stephen Powell Mark Cherry interested in the property should satisfy himself by inspection or otherwise as to the
correctness of each statement contained in these particulars. In the event of the agents
020 7318 5751 020 7318 5752 supplying any further information or expressing any opinions to a prospective purchaser,
whether oral or in writing, such information or expression of opinion must be treated as given
stephenpowell@smithprice.co.uk markcherry@smithprice.co.uk on the same basis as these particulars. These particulars do not form part of any contract
and, except where expressly otherwise stated, offers will be considered only subject to
contract.
Smith Price LLP is a limited liability partnership registered in England and Wales.
Smith Price LLP | 5-7 John Princes Street | London, W1G 0JN 020 7409 2100 Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN
SUBJECT TO CONTRACT
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