FREEHOLD PRIME RETAIL INVESTMENT UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN - Smith Price
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FREEHOLD PRIME RETAIL INVESTMENT UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN
INVESTMENT SUMMARY
• Pedestrianised High Street location
• Affluent market town NEWCASTLE-UNDER-LYME
• Let to Superdrug Stores PLC
• Freehold
• Income £60,000 per annum Newcastle-under-Lyme is an historic, affluent market town
• Guide Price £710,000 located to the west of Stoke-on-Trent, in the county of
• Net initial yield 8.02% Staffordshire. The town is situated 38 miles south of
Manchester, 34 miles south east of Chester and 45 miles
north west of Birmingham.
Newcastle-under-Lyme has a primary catchment
population of approximately 128,500 persons (source
Staffordshire County Council, 2017). The town’s
population exhibits an above average representation of
the most affluent AB social groups.
During the majority of the year the population is enhanced
by both Keele and Staffordshire Universities, who together
boast a student population of approximately 25,000,
located within 2.5 miles from the town centre.
The town benefits from excellent communications, being
situated at the junction of the A50 / A34 and 3 miles north
of Junction 15 of the M6. The A50 link road provides easy
access to the M1 motorway to the east.
The nearest railway station is located in Stoke-on-Trent
accessible by local bus services (2 miles east) and
provides a regular service to London Euston in
approximately 1 hour 27 minutes.
UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN 2
RETAILING DESCRIPTION
Retailing in Newcastle-Under-Lyme is focused on the pedestrianised sections The building forms part of a three storey, terraced retail parade, fronting onto
of the High Street, Ironmarket and Castle Walk, as well as The Roebuck High Street. The accommodation is arranged over ground and first floors
Shopping Centre. having rendered elevations under a pitched tiled roof.
The property occupies an excellent retailing location on the pedestrianised The property is arranged to provide open sales space on the ground floor, with
section of the High Street and benefits from good levels of footfall created by ancillary accommodation situated on the first floor. There is a rear service
the traditional market which operates here. Nearby retailers include Edinburgh yard accessed by a common corridor, which also provides access onto
Woollen Mill, The Works, WHSmith and Laura Ashley. Further representation Scarlett Street, located at the side of the premises.
in the vicinity comes from Clarks, Caffé Nero and Boots the Chemist.
The location is indicated on the attached Goad plan extract. EPC
Energy Performance certificate available upon request.
UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN 3
TENANCY The property is held freehold. The ground and first floors are let to Superdrug Stores PLC. The current lease commenced in March 2016 for a term of 5 years expiring in March 2021 at a rent of £60,000 pa. Superdrug have been in occupation of their unit for over 32 years, since November 1984. This demonstrates Superdrug's longstanding commitment to the area. DIMENSIONS The property has the following approximate dimensions and net floor areas:- Unit 3 – t/a Superdrug NIA (m²) NIA (sq. ft.) Ground Floor Sales 265.7 2,860 ITZA 1,137 units Ground Floor Ancillary 20.2 217 First Floor Ancillary 277.0 2,981 TENANT COVENANT Superdrug Stores PLC (No. 00807043) are part of the A.S. Watson Group, one of the world’s largest international health and beauty retailers. Trading from nearly 900 stores across the United Kingdom and Ireland, Superdrug Stores PLC generated a turnover of £1.21 billion and a pre-tax profit of £80.38 million for the year ending 31st December 2016. Experian rate the company as ‘Very Low Risk’. ASSET MANAGEMENT The tenant has indicated that they may consider re-gearing the lease, subject to agreeing suitable terms. NB: Our client owns the adjoining premises, 61 High Street which has recently been let to Greenwoods Menswear. These premises may be purchased by separate negotiations. UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN 4
UNIT 3, 61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN 5
FREEHOLD PRIME RETAIL INVESTMENT
UNIT 3, 61/63 HIGH STREET,
NEWCASTLE-UNDER-LYME ST5 1PN
PROPOSAL
• This investment provides an opportunity to purchase a prime retail property in an affluent
market town, on the pedestrianised section of the high street at the heart of the
traditional market. The property is well let to a national multiple and has been let to the
existing tenant for over 32 years.
• For the freehold interest, subject to the benefit of the letting, we are instructed to seek a price of
£710,000 subject to contract to show a net initial yield of 8.02% having taken purchase costs at
5.40%.
• We understand the property is registered for VAT and it is anticipated the sale will be
undertaken as a TOGC.
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
For 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
John Loveday Stephen Powell Charlie Taylor 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 5753 020 7318 5751 020 7318 5762 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
johnloveday@smithprice.co.uk stephenpowell@smithprice.co.uk charlietaylor@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 | 5/7 John Princes Street | London | W1G 0JN Smith Price LLP is a limited liability partnership registered in England and Wales.
Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN
SUBJECT TO CONTRACT
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