Substantial Retail Investment in Ferndown
Ferndown is an affluent east Dorset town located approximately 7 miles to the north of Bournemouth and 6 miles to the south west of Ringwood. The property is located in a prominent position fronting Victoria Road which is the main retail thoroughfare in Ferndown. Nearby occupiers include Boots, Iceland, Wilkinson’s, Pets Corner, Holland & Barrett, Nationwide, Barclays and Lloyds Bank.
The property comprises a three storey mixed use building that was subject to a substantial redevelopment in 2014. The redevelopment incorporated the construction of 12 new residential units above the existing commercial accommodation. All of the flats have subsequently been sold off on long leases. The ground floor is arranged with three separate retail units, each providing a prominent frontage on to Victoria Road. The property benefits from a large tarmacked car park which is accessed from Library Road to the rear.
The property is let as follows: 77-79 Victoria Road is let to The Bournemouth Coffee Company Limited t/a Costa on a full repairing and insuring lease from 11th April 2014 for a term of 10 years at a current rent of £32,500 per annum. The lease has the benefit of an open market rent review on 11th April 2019. 81 Victoria Road is let to Cedar Veterinary Services Limited t/a Cedar Veterinary Group on a full repairing and insuring lease from 25th March 2005 for a term of 15 years at a current rent of £16,000 per annum. The lease benefits from additional security in the form of three personal guarantees. 83 Victoria Road is let to Wessex Children’s Hospice Trust t/a Naomi House on a full repairing and insuring lease (limited by way of a photographic schedule of condition & a service charge cap of £500 per annum) from 19th February 2015 for a term of 5 years at a current rent of £16,500 per annum. The 12 upper floor flats (& associated parking spaces) have been sold off on 125 year leases. The total ground rent income is £2,500 per annum. We understand the residential leases incorporate index linked rent reviews every 25 years. 3 parking spaces have been let on an annual licence to CVS (UK) Limited generating an annual income of £2,500. The total income currently receivable is £70,000 per annum.
The Bournemouth Coffee Company Limited is an established Costa franchisee with over 12 outlets. For the year ending 30/06/2016 they reported a net worth of £331,005. The company has an Experian Credit Risk Score of ‘Very Low Risk’. Cedar Veterinary Services Limited is a wholly owned subsidiary of CVS (UK) Limited. For the year ending 30/06/2016 CVS (UK) Limited reported a turnover of £157m and pre-tax profits of £6.6m. The company has an Experian Credit Risk Score of ‘Very Low Risk’. CVS (UK) Limited is a subsidiary of CVS Group plc which is the largest integrated veterinary services provider in the UK. Wessex Children’s Hospice Trust t/a Naomi House are a well-known and respected charity with an established retail division trading out of 25 shops in the south of England.
We understand the property has not been elected for VAT purposes.
MIXED USE INVESTMENT IN BOURNEMOUTH TOWN CENTRE – 8 LANSDOWNE ROAD
The property is located within Bournemouth Town Centre, close to the Lansdowne Roundabout at the edge of the town centre in an established secondary trading area. This part of Bournemouth has seen much development over the past few years, mainly linked to the University.
We understand the shop is configured with a suspended ceiling throughout, separate kitchenette and WC facilities along with a good quality basement arranged as two rooms. Flat 1a Bedroom 1 with en-suite, shower & WC – 2.5m x 2.8m Living room / kitchen – 4.11m x 3.31m Notes: Includes balcony and electric central heating EPC rating of E-(50) Flat 1 Bedroom 1 – 5.0m x 2.57m Bedroom 2 – 3.17m x 3.72m Living Room – 4.32m x 4.4m Kitchen (includes hob, cooker, fridge/freezer) 3.32m x 2.33m Bathroom/shower & WC with basin & heated towel rail EPC rating of D-(59) Flat 2 (second floor) Bedroom 1 – 4.79 x 2.63m Bedroom 2 – 4.02m x 3.18m (max) Living Room – 4.29m x 4.54m into bay Kitchen (includes hob, cooker, fridge/freezer) – 2.6m x 3.21m Bathroom/shower & WC EPC rating of D-(66) Flat 3 (third floor) Bedroom 1 – 3.04m x 4.02m Living Room – 3.96m x 4.84m Kitchen (includes hob, dishwasher, fridge/freezer) – 2.62m x 3.23m max Bathroom/shower & WC with basin & heated towel rail EPC rating of C-(79) Garden Flat Bedroom 1 – 2.6m x 4.05m Bathroom – 2.5m x 1.7m Living room / kitchen (fully fitted with units, built in fridge freezer) – 40.5m x 3.65m Leads out to terrace EPC rating of E-(50) Cottage Flat (5 Lansdowne Rd) Ground floor entrance hall & cloakroom/WC Living room / kitchen (fully fitted with hob, cooker, gas fired boiler) – 6.6m x 4.12m First Floor: Bedroom 1 – 2.07m x 3.11m Bedroom 2 – 2.98m x 2.64m Bathroom / shower / WC EPC rating of B-(83)
The shop is let on a 12 year lease from 12 November 2008 with 3 yearly upwards only rent reviews.