INVESTMENT FOR SALE PRIME HIGH STREET RETAIL - 47-49 LINTHORPE ROAD MIDDLESBROUGH TS1 5BS - Fastly
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INVESTMENT FOR SALE 47-49 LINTHORPE ROAD PRIME HIGH STREET RETAIL MIDDLESBROUGH TS1 5BS
INVESTMENT SUMMARY
• 100% Prime Pitch in Linthorpe Road,
Middlesbrough.
• Rents rebased and considered reversionary.
• Let to 2 strong regional covenants DARLINGTON
BUILDING SOCIETY & HAYS TRAVEL LTD plus
125 ground lease on uppers sold off on Long
Leasehold interest.
• TOTAL NET INCOME £98,000 PAX.
• We are instructed to seek offers of £1,200,000
(ONE MILLION & TWO HUNDRED THOUSAND
POUNDS), subject to contact and exclusive
of VAT.
A purchase at this level reflects an attractive
NET INITIAL YIELD OF 7.49% assuming standard
Purchaser’s costs of 5.92%. The property is
elected for VAT which will therefore be payable
on the purchase price. It is envisaged that the
sale will be treated as a Transfer Of a Going
Concern (TOGC).
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BS
LOCATION
Middlesbrough is a sub-regional centre and the
principal administrative centre of the Teesside
conurbation, combining Stockton, Thornaby and Redcar.
Middlesbrough is the third biggest retail shopping centre
in the North East with over 1.7m Sq ft of retail floor space.
It is the retail heart of the Tees Valley.
The town is located approximately 40 miles South of
Newcastle, 12 miles East of Darlington and 52 miles
North of York. The town has a population of 138,900
(Middlesbrough Council 2016) with Teesside having a
population of 662,600.
Middlesbrough has good road and rail communications,
with the A66 dual carriageway linking to the regions
primary North/South arterial routes, the A19 and the
A1(M). Middlesbrough has direct rail links to Darlington
situated on the East Coast Mainline, which has a journey
time to London King’s Cross of approximately 2.5 hours.
Durham Tees Valley airport is situated approximately 10
miles to the South-West of the town.
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BS
Middlesbrough
SITUATION
The subject property is located in Linthorpe Road in what is, without
doubt, a 100% prime location on the pedestrianised western side of
the pitch. The property is located immediately opposite The Cleveland
Shopping Centre, with nearby retailers including House of Fraser,
Debenhams, Boots, Top Shop, River Island, Holland & Barret and
Deichman Shoe. The former BHS store close by is undergoing a c.£3m
refurbishment for retailers Flannels, USC and Sports Direct.
DESCRIPTION
The property is a mid-terraced modern brick built retail property
providing two retail units at ground floor with basement storage. The
self-contained first and second floors are accessed separately from
DARLIN Linthorpe Road and have been sold off on a long leasehold interest.
BUILDING SOGTON
CIETY
HAYS TRAV
EL
The property benefits from rear access by way of a loading alleyway
AGENT
within the ownership.
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BS
Experian Goad Plan Created: 16/05/2017
Created By: Connect Property North East Ltd
50 metres
ACCOMMODATION | TENANCY | EPC
UNIT TENANT RENT PAX TERM LEASE RENT REVIEW AREAS ITZA BASEMENT COMMENTS EPC
START (BREAK) SQ FT SQ M SQ FT SQ M SQ FT SQ M
47 Linthorpe Road Darlington £52,500 10 26/02/2015 26/02/2020 1,030 96 653 61 682 63 2 years rent free
Building Society reflecting £66 ZA D (80)
49 Linthorpe Road Hays Travel Ltd £42,500 10 24/11/2016 24/11/2021 1,299 121 595 55 625 58 3 months rent penalty
(24/11/2021) on break. 9 months rent
tenant only free reflecting £64 ZA E (101)
Uppers 20|20 Residential £3,000 125 Estimated Long leasehold interest.
01/07/2017 Fixed ground lease rent
TBC increase to £6,000 pax
at 5th anniversary
review then annual RPI
compounded 5 yearly N/A
TOTAL £98,000 2,329 217 1,248 116 1,307 121
TENURE
Freehold.
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BSTENANT COVENANT INFORMATION
HAYS TRAVEL LIMITED (01990682) DARLINGTON BUILDING SOCIETY
www.haystravel.co.uk www.darlington.co.uk
Hays Travel Limited is the UK’s largest independent travel agent, trading Darlington Building Society is an independent building society mutually
from over 100 retail stores and online. Based predominately in the owned by members, headquartered in Darlington, County Durham
North East the business acquired Bath Travel Limited in October 2013 and founded in 1856. They trade from 10 locations in Teesside, North
increasing its presence on the south coast on England. Yorkshire and County Durham.
Hays Travel Limited receives a creditsafe rating of A 87/100, signifying Darlington Building Society receives a creditsafe rating of 62/100,
“Very Low Risk.” Hays have traded in the town for over 20 years and signifying “Low Risk”. Darlington Building Society is an operator who by
relocated to the current unit from Corporation Road. They represent a their nature is geographically focused, and have also relocated into the
strong tenant with strong business roots in the town. established and better located pitch of Linthorpe Road.
YEAR TO DATE TURNOVER PRE TAX PROFIT SHAREHOLDER’S
YEAR TO DATE TOTAL INCOME PRE TAX PROFIT TOTAL ASSETS
FUNDS
31/10/2016 £332,041,000 £7,514,000 £24,561,000 331/12/2015 £9,583,000 £1,883,000 £532,293,000
31/10/2015 £307,699,000 £6,721,000 £19,309,000 31/12/2014 £9,467,000 £1,717,000 £531,347,000
31/10/2014 £253,055,459 £3,300,212 £13,942,028
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BSRETAIL MARKET COMMENTRAY
Middlesbrough is the dominant retail core for Teesside and the wider
area, with The town‘s four shopping centres and high Street together
attracting almost 18 million visitors per year.
Retail rents in Middlesbrough have adjusted from their peak of £135
47-49 LINTHORPEZone A with the established tone now at £60-75 Zone A. There have
ROAD been a number of recent transactions including those at the subject
MIDDLESBROUGHproperty.
TS1 Holland & Barret - doubling their unit opposite reflecting
5BS £75.82 ZA & Eat 4 Less opening at 75 Linthorpe Road reflecting
£61.36 ZA.
The 2017 rates revaluation has benefitted Middlesbrough significantly,
reducing occupation costs for retailers which in time should lead to
rental growth. With rents stabilising and uptake increasing in the town
there is a strong chance of rental growth before the reviews.
47-49 LINTHORPE ROAD
MIDDLESBROUGH TS1 5BS• Teesside University - recently undergone
KEY MIDDLESBROUGH STATISTICS a £260m refurbishment and home to
29,000 students with numbers due
• 1,147,115 total retail catchment (CACI Retail Footprint 2015).
to increase over the next few years.
• £256.7m p.a. comparison goods spend (CACI Retail Footprint 2015). The University contributes additional
wealth to the local, regional and national
• £4,353 p.a. average household comparison goods spend. economies as measured by Gross
• Middlesbrough has a thriving independent retail sector that includes Baker Street, home to a Value Added (GVA). It is estimated this
variety of independent retailers, traders, eateries and bars. This is complemented by Linthorpe contributes a total of £124 million GVA
Road Central with its array of designer boutiques such as Psyche and Triads. per annum.
• Middlesbrough recently named a ‘rising star’ in the Great British High Street competition to • Major investment projects totalling
recognise the great strides it is making in improving the town centre. £500m have resulted in significant
changes in the town with the creation
• Centre Square is the largest civic space in Europe and home to MIMA (Middlesbrough Institute of of over 4,000 new jobs, support for new
Modern Art) and the focal point for outdoor events in Middlesbrough hosting Middlesbrough MELA, and growing business, expanded learning
Music Live, Proms in the Park and the start of the Tour De Yorkshire in 2016. and leisure / retail opportunities and the
building of 7,000 new homes.
• The eastern side of Centre Square will be the focus of 250,000 sq ft of a new Grade A1 office
development over the next few years. www.centre-square.co.uk • Middlesbrough College has invested
over £100m on its new purpose built
• Le Bistrot Pierre have agreed terms to take in Albert Road with a planned opening for July 2017.
campus, including; MC6, the Sixth form
• A 159 bed Holiday Inn Express opened August 2015 and is overtrading. Centre to accommodate a growing
number of students.
• £8m Heritage Lottery Funded refurbishment of Middlesbrough Town Hall commenced in March
2016 and will include a major improvement to the performance space venue with a new entrance
off Albert Road, new registry office and new heritage visitor attraction. Projected audience
numbers post refurbishment: 2018/19 – 106,526 | 2019/20 – 114,654 (Currently between 70,000 –
80,000 per annum) Projected opening date - December 2017.
• The Cleveland Shopping Centre opposite attracts 195,000 visitors per week.
47-49 LINTHORPE ROAD
• Centre North East in Newport Road is being converted into 540 new student apartments and will MIDDLESBROUGH TS1 5BS
include a new 7 lane bowling alley, restaurants and bars opening Summer 2017.VAT
The property is elected for VAT so all
costs will be subject to VAT at the PRICING
prevailing rate.
We are instructed to seek
offers of £1,200,000 (ONE
EPC MILLION & TWO HUNDRED
The Energy Performance Certificates THOUSAND POUNDS), subject
for the various demises are to contact and exclusive
summarised above, a full copy of the of VAT. A purchase at this
certificates are available upon request. level reflects an attractive
NET INITIAL YIELD OF
VIEWING 7.49% assuming standard
Purchaser’s costs of 5.92%.
Strictly through the sole agents The property is elected for
Connect Property North East Ltd: VAT which will therefore be
Andrew Wilkinson payable on the purchase price.
T: 01642 602001 It is envisaged that the sale
E: andrew@cpne.co.uk will be treated as a Transfer Of
www.cpne.co.uk a Going Concern (TOGC).
IMPORTANT NOTICE: whilst every reasonable effort has been made by Connect Property North East to
ensure accuracy, interested parties are strongly advised to take appropriate steps to verify by independent
inspection or enquiry all information for themselves and to take appropriate professional advice. (i) No
description or information given about the property or its value, whether written or verbal or whether or
not in these particulars (‘information’) may be relied upon as a statement of representation or fact. Connect
Property North East nor its employees have any authority to make any representation and accordingly
any information given is entirely without responsibility on the part of Connect Property North East or the
seller / lessor. (ii) Any photographs show only certain parts of the property at the time they were taken. Any
areas, measurements or distances given are approximate only. (iii) Any reference to alterations to, or use
of any part of the property is not a statement that any necessary planning, building regulations or other 47-49 LINTHORPE ROAD
consent has been obtained. These matters must be verified by any intending buyer / lessee. (iv) Any buyer/
lessee must satisfy himself by inspection or otherwise as to the correctness of any information given. (v)
VAT is applicable unless expressly stated otherwise. Connect Property North East Ltd Registered Company
MIDDLESBROUGH TS1 5BS
Number 9404628. May 2017.You can also read
