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For Sale£345,000.00

FREEHOLD RETAIL INVESTMENT

Retail, Leisure , 1279 Sq Ft
Property type: Retail, Leisure
Tenure: Investment Opportunity, For Sale Freehold
Size: 1279 Sq Ft
Price: £345,000.00
Location: 3 Market Street, SO50 5RJ
LOCATION & DESCRIPTION
Eastleigh is a former railway town about 5 miles to the north of Southampton, with excellent road, rail
and air links to the rest of England & the continent. As a result it has built an enviable reputation as a
distribution and manufacturing centre. The retail centre of Market Street and the more secondary High
Street is supplemented by The Swan Shopping Centre where visitors to its Vue based leisure extension
are up to nearly 3m a year.
The property itself comprises a two storey retail unit with a well established Charity trading from the
ground floor. They have been in the premises since 2014 and utilise all of the rear storage area for the
sorting, cleaning and storage of charity donations.
The first floor is a self-contained 1-2 bed flat, let until recently on an Assured Shorthold Tenancy to the
same tenant for 9 years, but it will be vacant from the beginning of April.
ACCOMMODATION
Ground floor retail unit -
Net Sales 607 sq ft
Rear Ancillary 672 sq ft
WC. Rear Access, one parking space
Total Ground Floor Net Area 1279 sq ft
First floor flat comprising Living Room, Kitchen, Double Bedroom & Bathroom with additional second
floor Living Room/Bedroom. This would benefit from some modernisation.
TENANTS
The ground floor is let to Life 2009, a registered charity https://lifecharity.org.uk/ established in 1970,
and in 2016 they had a total income of £3.6m.
They have a 10 year lease from November 2014 with a 5 year upward only rent review and the tenant
break at the end of the third year was not used. The current rent is £16000 pa exclusive, representing
an ITZA rent of just under £31.00 psf. Recent lettings and lease renewals in Market Street have tended
to be in the region of £40 psf ITZA so it is our contention that the rent is reversionary and could see an
uplift on review.
Total current income therefore is £22600 pa.
However, even at £35 psf ITZA the ground floor rent equates to £17750 pa, plus the flat income once a
tenant is found.
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