THE GEORGE CENTRE HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH - HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT - Allsop
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THE GEORGE CENTRE HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
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THE GEORGE CENTRE, HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH
INVESTMENT CONSIDERATIONS
■■ Grantham is an attractive and historic market town with a journey time to London ■■ Freehold
of 1 hour ■■ Various asset management opportunities including the potential to increase
■■ Busy covered shopping centre in the heart of Grantham income through letting vacant units
■■ Grantham is a fast growing town with plans in place to construct 3,700 new homes ■■ Our client is seeking offers in excess of £2,850,000 (Two Million Eight Hundred
■■ Multi-let Shopping Centre with additional office accommodation producing a total and Fifty Pounds) subject to contract and exclusive of VAT. A purchase at this level
passing rent of £367,001 p.a. and a potential reversion to £488,385 p.a. fully let would reflect an attractive net initial yield of 12.1% and a triple net yield of 11.0% and
a potential reversionary yield of 16.1% after allowing for purchasers costs of 6.3%.
ST WULFRAM’S
CHURCH
LIDL
ASDA
THE GEORGE CENTRE
HIGH STREET
WESTGATE
ST AUGUSTIN
RETAIL PARK
SIR ISAAC NEWTON
SHOPPING CENTRE
MORRISONS
BUS STATION
RAIL STATION
THE GEORGE CENTRE, HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH
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Doncaster
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Rotherham
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SHEFFIELD
LOCATION
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The historic market town of Grantham is situated in the south
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Kesteven district of Lincolnshire approximately 25 miles (40km) east
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of Nottingham, 35 miles (56 km) north of Peterborough and 41 (66
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km) miles north east of Leicester. The town benefits from excellent
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access to Nottingham and the M1 motorway. Approximately 1 mile
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to the west of the town is the major north-south dual-carriageway
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the A1 which links Edinburgh to the north and London to the south.
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Grantham railway station provides regular high speed services
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fastest journey time to Kings Cross London of 1 hour. East Midlands
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HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
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G THE GEORGE CENTRE, HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH Grantham
DEMOGRAPHICS GRANTHAM – A CHANGING LANDSCAPE
Grantham has a primary catchment area of 95,000 Grantham is benefiting from significant investment
with an estimated shopping population of 48,000, spearheaded by the government backed £23 million new
which is forecasted to see growth over the period A1 junction project which will enable plans for a new 193
2017-2020. Grantham’s primary catchment population hectare Spitalgate Heath Garden Village urban extension to
is adults aged over 45 with a high proportion of the move forward. This is set to consist of up to 3,700 homes
population aged 65 and above. Grantham also has and bringing with it new jobs and facilities.
an above average percentage of home owners and The town centre is also undergoing significant redevelopment
has experienced an above average growth in house with a £5 million council backed scheme featuring a cinema
prices between 2015 and 2016. alongside food and beverage offerings set to enhance the
town centre.
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Ground Floor
SITUATION 25 metres
Experian Goad Plan Created: 27/01/2017
Created By: Allsop
The George Centre is situated on Grantham High Copyright and confidentiality Experian, 2017. © Crown For more information on our products and services:
Street with additional frontages on Guildhall Street
copyright and database rights 2017. OS 100019885 www.experian.co.uk/goad | goad.sales@uk.experian.com
EP
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| 0845 601 6011
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and Westgate which form part of the primary retail
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thoroughfare in Grantham. The centre benefits
from strong pedestrian flow and retailers in close
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proximity include WHSmith, H Samuel, Clintons,
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Boots and Argos. Grantham railway station is located
a 10 minute walk to the south.
First Floor
© Crown Copyright, ES 100004106. For identification purposes only.
HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
THE GEORGE CENTRE, HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH
DESCRIPTION
The property comprises a part grade II listed building dating
back to the 1600’s which was converted into a shopping
centre in 1990.The ground floor provides 23 retail units
with further retail and office accommodation to the
first floor and additional office suites to the second floor.
The shopping centre further benefits from on-site parking
for approximately 41 cars.
TENURE
Freehold
HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
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G TENANCY SCHEDULE
Unit Tenant Floor Floor Area Floor Area Lease Start Next Rent Lease Expiry Annual ERV Comments
Sq M Sq Ft Review (Next Break) Rent
Units 1 & 2 Under Offer - Subject to contract GF 585.8 6,306 £30,000 £30,000 Terms agreed for new 10 year lease at £30,000 pa with
12 months rent free and £1,000 stepped increases up to
first review at year 5. Vendor will top up rent until the
unit becomes income producing alongside a rates and
s/c guarantee until the letting is complete.
Unit 3 Anita Palmer GF 114.0 1,227 01/07/2015 24/06/17 24/12/2018 £7,000 £7,000 Stepped rental increases: 24/06/2017 to £8,250 pa
(t/a Plants by Anita) 24/06/2018 to £10,500 pa
Rent Deposit - £1,200
Lease is outside act
Unit 4 James Oughton GF 92.2 992 04/08/2016 04/08/17 09/03/2020 £5,500 £5,500 Lease is outside act
(t/a James Oughton Upholstery) Annual rent increases linked to RPI or market rent
Unit 5 Vacant GF 57.5 619 £0 £4,952
Units 6 & 7 Vacant GF 327.8 3,528 £0 £19,404
Unit 8 Teaspoon Tea Company Limited GF 179.4 1,931 21/03/2014 21/03/18 20/03/2019 £12,000 £12,000 Stepped rental increase: 21/03/2018 to £13,000 pa
(21/03/2018) Rent Deposit - £3,000
Lease is outside act
Unit 9 Vacant GF 110.7 1,192 £0 £7,748
Units 10 & 11 Vacant GF 116.1 1,250 £0 £8,125
Unit 12 Raj Kaur GF 31.6 340 09/09/2015 15/10/17 14/10/2020 £3,000 £3,000 Stepped rental increase: 15/10/2017 to £4,000 pa
(t/a R&R Threading) (15/10/2018) Guarantor in place
Rent Deposit - £2,169.11
Lease is outside act
Unit 13 Vacant GF 131.5 1,415 £0 £9,198
Units 14 & 14a PizzaExpress (Restaurants) Limited GF 302.9 3,260 24/06/1999 24/06/2019 23/06/2032 £44,500 £44,500 Guarantor in place (Ask Restaurants Limited)
Lease is inside act
Unit 15 Lisa Richardson GF 19.9 214 17/08/2012 16/08/2017 £4,000 £4,000 Lease is outside act
(t/a The Gift Box)
Unit 16 Deborah Traynor & Kamala Sylvia GF 70.6 760 01/04/2014 28/02/2019 £6,250 £6,250 Rent Deposit - £3,000
Rashell Gray (t/a Juice 'e' Vaporium) Lease is outside act
Unit 17 Steven Charles Thorsen GF 78.7 847 02/04/2013 01/04/2023 £18,950 £18,950 Lease is outside act
(t/a Oblio's Deli & Bistro) (01/04/2018)
Units 18 & 19 The Edinburgh Woollen Mill Limited GF 244.0 2,626 01/04/2017 31/03/2017 £5,000 £26,260 AGL in place for a new term from 01/04/2017 until
29/05/2018 at a rent of £5,000 pa and a fixed service
charge of £15,000 pa
Lease is outside act
Unit 20 Thi Hieu Vo GF 51.9 559 29/04/2015 29/04/2020 28/04/2025 £8,600 £8,600 Rent Deposit - £2,580
(t/a Glamour Nail Bar) Lease is outside act
Units 21 & 22 Under Offer - Subject to contract GF 119.9 1,291 £8,000 £8,000 Terms agreed for new 3 year lease at £8,000 pa with
3 months rent free. Vendor will top up rent until the
unit becomes income producing alongside a rates and
s/c guarantee until the letting is complete.
Unit 23 Stuart Vyse GF 78.6 846 22/07/2013 22/07/2018 21/07/2023 £8,000 £8,000 Lease is outside act
(t/a Tailored Computer Systems)
Unit 24 Jeannie Crabtree & Suzanne Mary GF 45.2 486 15/10/2010 15/10/2020 14/10/2022 £8,000 £8,000 Rent Deposit - £2,400
Hewis (t/a Jenny Wren) (15/10/2017) Lease is outside act
HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
THE GEORGE CENTRE, HIGH STREET, GRANTHAM, LINCOLNSHIRE NG31 6LH
Unit Tenant Floor Floor Area Floor Area Lease Start Next Rent Lease Expiry Annual ERV Comments
Sq M Sq Ft Review (Next Break) Rent
Unit 25 Lunettes Opticians Limited GF 68.5 737 29/09/2015 28/09/2020 £13,500 £13,500 Lease is outside act
(28/09/2018)
Unit 26 Aymatt Limited (t/a Cappacinos) GF 175.4 1,888 25/03/2015 10/12/2017 09/12/2022 £24,650 £24,650 Lease is outside act
Unit 27 Paul Stokes GF 297.0 3,197 09/07/2014 09/07/2019 08/07/2024 £14,500 £14,500 Guarantor in place
(t/a Oscars Wine Bar) (08/07/2019) Rent Deposit - £3,000
Lease is outside act
Units 28, 41 & 42 Feel Good Enterprises Limited 1F 426.7 4,593 10/09/2015 28/09/2020 28/09/2025 £31,000 £31,000 Lease is outside act
(28/09/2020)
Unit 29 Vacant 1F 77.1 830 £0 £7,055
Unit 30 Education Recruitment Limited 1F 49.1 528 22/07/2013 21/07/2018 £5,800 £5,800 Lease is outside act
Units 31 & 32 Creeperhost Limited 1F 93.3 1,004 28/05/2013 28/02/2026 £9,500 £9,500 Rent Deposit - £2,850
Lease is outside act
Units 33, 34 & 35 Grantham College 1F 593.9 6,393 16/05/2003 16/05/18 15/05/2023 £41,087 £41,087 Lease is outside act
(16/05/2018)
Unit 36 Tropicana Tan (Grantham) Limited 1F 38.2 411 17/08/2014 17/08/2017 21/12/2024 £2,500 £2,500 Annual tenant break options.
(23/12/2017) Guarantor in place
Lease is outside act
Stepped rental increases: 17/08/2017 to £3,500 pa
17/08/2018 to £4,500 pa.
Unit 37 Tropicana Tan (Grantham) Limited 1F 49.4 532 23/12/2009 23/12/19 22/12/2024 £5,850 £5,850 Further tenant break option 22/12/2023
(22/12/2017) Guarantor in place
Rent Deposit - £959.04
Lease is outside act
Unit 38 Next Step Recruitment Limited 1F 68.8 741 08/12/2016 08/12/2017 07/12/2021 £7,500 £7,500 Lease is outside act
(08/12/2019) Annual rent increases linked to RPI or market rent
Unit 39 Pearson Professional Assessments Limited 1F 67.8 730 15/10/2014 30/06/17 14/10/2019 £8,750 £8,750 Lease is outside act
Unit 40 Grantham College 1F 93.3 1,004 15/10/2002 15/10/17 14/10/2022 £11,615 £11,615 Lease is outside act
(15/10/2017)
Office Suite 1 Vacant 2F 204.8 2,205 £0 £16,537
Office Suite 2 Vacant 2F 180.4 1,942 £0 £14,565
Office Suite 3 Yell Tech Limited 2F 31.1 335 29/09/2014 None 28/09/2017 £3,500 £3,500 Lease is outside act
Office Suite 4 M M Shopfitting & Joinery Limited 2F 21.2 228 14/09/2016 None 13/09/2019 £2,424 £2,424 Lease is outside act
(14/03/2018)
Office Suite 5 Howard Rudder & Christopher Buck 2F 20.1 216 20/02/2015 None 19/02/2018 £2,400 £2,400 Rent Deposit - £480
(t/a RecruitME) Lease is outside act
Office Suite 6 Vacant 2F 37.1 399 £0 £3,990
Store Room 109 Creeperhost Limited 2F 38.6 415 01/11/2013 None 28/02/2026 £3,725 £3,725 Lease is outside act
41 Car Park Spaces Various £9,900 £18,450 Full car park schedule available upon request
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Totals 5,389.9 58,017 £367,001 £488,385
All leases are IRI with service charge in place for external elements
HIGH YIELDING TOWN CENTRE RETAIL INVESTMENT
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LANDLORDS SHORTFALL
The service charge budget for the year ending 28/09/17
is £253,750. Once the current lettings are complete the total
service charge liability for the Landlord will be £26,511 p.a.
In addition, the rates payable by the landlord equates to
£43,302 (2017 rates) however the vendor is currently benefitting
from a rates mitigation scheme costing them approximately
£7,500 p.a. The current triple net rent is £332,991 p.a.
VAT
The property is elected for VAT. It is anticipated that the
transaction will be treated as a transfer of going concern (TOGC).
DATAROOM
For access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/grantham
PROPOSAL
Our client is seeking offers in excess of £2,850,000 (Two Million Eight Hundred and Fifty
Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an
attractive net initial yield of 12.1% and a triple net yield of 11.0% and a potential reversionary
yield of 16.1% after allowing for purchasers costs of 6.3%.
For further information or to make arrangements for viewing please contact:
Alex Butler Jonathan Butcher Liam Stray
020 7543 6722 020 7543 6755 020 7543 6769
alex.butler@allsop.co.uk jonathan.butcher@allsop.co.uk liam.stray@allsop.co.uk www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on
as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual
obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement
contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name
of Allsop LLP. Design CommandD www.commandHQ.co.uk 02.17
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