Retail & leisure investment opportunity.
• Attractive & prominent building let in its entirety to Prezzo until 24 January 2041
• Passing rent of £51,500 per annum
• Net initial yield 8.24%
• Ground Floor of 345 sq m (3,714 sq ft)
• Nearby occupiers include Costa & Cinco Lounge
LOCATION:
The property is located in Grantham, which is an established historic and popular south Lincoln market town and which has a population of c. 45,000 and a large and affluent catchment of close to 120,000.
The town benefits from excellent road communication links via the A1 running to the west of the town, and Grantham also benefits from the mainline rail connection to London Kings Cross, with a journey time of approximately 75 minutes.
The property is positioned in the prime retail and leisure pitch fronting St Peters Hill and immediately adjacent to the town's dominant The Isaac Newton Shopping Centre, anchored by a Morrisons supermarket, along with other occupiers including Lloyds Bank, Boots the Chemist, Costa Coffee and Cinco Lounge (Loungers).
The property's location is also a three minute walk to the town's modern Savoy Cinema which generated c. 300,000 visitors in its first year of operation.
DESCRIPTION:
The property comprises a period three storey mid terrace building fronting the prime retail pitch of St Peter's Hill.
Internally, the ground floor is open plan and forms the restaurant and bar trading area which is visible from the glazed shopfronts. To the rear of the ground floor there is the kitchen which incorporates a feature pizza oven and access to the first floor dry store.
At first floor level there are ladies and gents WC facilities along with staff back of house accommodation. Part of the first floor and the entirety of the second floor is not utilised by the tenant.
The building has been fitted out and maintained to a high standard by Prezzo.
Externally, at the rear there are the bin stores and rear fire escapes.
ACCOMMODATION:
Ground Floor: 345.07 sq m (3,714 sq ft)
First Floor: 83.27 sq m (896 sq ft)
Second Floor: 87.96 sq m (947 sq ft)
TOTAL: 516.30 sq m (5,557 sq ft)
The floor areas are taken from the VOA and we have been unable to inspect part of the first floor and all of the second floor.
Floorplans are available upon request.
EPC:
B - 38 - A copy is available upon request.
TENANCY INFORMATION:
The property is let on the following terms:-
Tenant - Prezzo
Lease Start - 25/01/2016
Lease Expiry - 24/01/2041
Break Clauses - 25/01/2031
Rent Review - 25/01/2026
Rent PA - £51,500
Unexpired Term to Next Break - 7 Years
Unexpired Lease Term to Expiry - 17 Years
The property is let on Full Repairing and Insuring lease terms.
A copy of the Lease and Licence to Alter are available upon request.
TENANT COVENANT:
The property is let to Prezzo Trading Limited T/As Prezzo (Company No. 13150050) who took as assignment of the lease granted to PRZ Realisations Limited formerly Prezzo Limited.
Prezzo are an Italian casual dining restaurant who operate from 156 sites around the country.
In late 2020, Prezzo were bought out of administration by the private equity house, Cain International who are looking to drive performance of the chain.
An Experian Credit Report is available upon request.
TENURE:
Freehold under title number: LL47950
VAT:
Vat is applicable to the purchase price and we anticipate the sale to be proceed as a TOGC.
PROPOSAL:
Offers are invited in excess of:-
£595,000
which reflects a net initial yield of 8.25% and purchasers' costs at 5.04%
INVESTMENT CONSIDERATIONS:
The sale has the following considerations:-
• Let for a further 7 years and 17 years should the tenant not exercise their break option in 2031
• January 2023 Rent Review saw an increase to £51,500 per annum from the previous passing rent £45,000 per annum
• Scope to convert the unutilised upper floors to residential, subject to varying the lease and obtaining planning
• High quality tenant fit out throughout
• Only national Italian restaurant in Grantham and occupies a prime position adjacent to Costa and Cinco Lounge (Loungers)
ANTI MONEY LAUNDERING:
In order to comply with anti-money laundering legislation, the purchaser will be required to provide identification documents to include a valid passport / drivers licence together with a recent utility bill.
DATA ROOM:
Access to the data room can be provided upon request.
FURTHER INFORMATION:
For further information or to arrange a viewing please contact:-
Will Torr
07866 716 974
wtorr@heb.co.uk
Or
Jonathan Emmerson
07977 556 070
jemmerson@heb.co.uk
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