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For Sale£685,000.00

INVESTMENT FOR SALE FREEHOLD

Leisure Property, Pubs/Bars/Clubs, Restaurant/Cafes, Licensed & Leisure
Property type: Leisure Property, Pubs/Bars/Clubs, Restaurant/Cafes, Licensed & Leisure
Tenure: For Tender, Investment Opportunity, For Sale Freehold
Price: £685,000.00
Location: 57 - 58 Ironmarket, Newcastle, ST5 1PE
Income producing investment property fully let at £51,000 per annum exclusive.

Guide Price: £685,000
FREEHOLD SUBJECT TO CONTRACT

LOCATION

Newcastle Under Lyme is a market town in North Staffordshire situated 40 miles south of Manchester and 40 miles north-west of Birmingham and directly adjoins Stoke-on-Trent. The town has a population of over 75,000 and has become a very popular choice for students to study, due to Keele University. This University was founded in 1949 and is the UK’s largest campus University combining research facilities and science park.

Newcastle Under Lyme is a mixture of a vibrant centre with young people enjoying the bars and cafés, and an ancient market town famous for not being Stoke on Trent. It has a market 6 days a week and the famous amusement park, Alton Towers is not far away.

The property is well located on the South side of the pedestrianised Ironmarket in the heart of the town centre in Newcastle Under Lyme. Ironmarket is just off the A52 which links Newcastle Under Lyme and Stoke on Trent and is close to the M6 motorway. Nearby occupiers include Coral, HSBC, New Look, Wilkinson, Scotts, BetFred, Café Nero and Halifax and the Yates Public House amongst many others.

DESCRIPTION

The premises are arranged as ground, first and second floors with two tenants, Loungers Ltd (Company No: 04595806) on the ground and part first floor benefitting from rear courtyard/outside seating area, paying a passing rent of £40,000 per annum, with the first floor and second floor offices let to Meridian Business Support Ltd (Company No: 02386774) paying a rent of £11,000 per annum.

TENANCY
Loungers Ltd in relation to ground and part first floor, 57 – 58 Ironmarket, Newcastle Under Lyme – the Lease is for a straight 15 years on effective full repairing and insuring Lease terms with no breaks, commencing 26th October 2015, expiring 25th October 2030, paying an annual passing rent of £40,000 exclusive, quarterly in advance with rent reviews, upwards only, every fifth anniversary of the term to market rent.

Meridian Business Support Ltd relating to the first and second floor office premises at 56 and 58 Ironmarket, Newcastle Under Lyme have been tenants of the building since 2010 – the current Lease dated 21st October 2014 is for a term of 5 years from 31st October 2014, expiring 30th October 2019, paying an annual rent of £11,000 per annum. The tenants break option on 31st October 2017 was not activated.

GUIDE PRICE
We are instructed to seek offers in excess of £650,000 (six hundred and fifty five thousand pounds) freehold subject to contract and both commercial leases producing a combined rental income of £51,000 pax. A purchase at this level would reflect a gross initial yield of 7.85% and a Net Initial Yield of 7.56% after purchase costs at 3.8%.

TENANT INFORMATION

Loungers Ltd for the year ending 27th April 2017 Loungers recorded an increase in revenue from £68.5m to £91.8m and pre-tax profits of £3,186,658.

Meridian Business Support Ltd incorporated 19th May 1989. For the year ending 31st December 2016 Meridian Business Support reported a turnover of £98,687,640 and profit before tax for the year of £807,633.

VIEWING
For further information please contact sole agents Messrs Nicholas Percival, for the attention of T Noble – 01206 563222
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