12-16 Horsemarket Street, Warrington, WA1 1XL

  • 00 sq ft
Investment
£525,000

Prime Town Centre Investment Opportunity

Location

The property is prominently positioned on the pedestrianised section of Horsemarket Street close to Market Gate opposite Lloyds TSB and Sports Direct within close proximity to the Golden Square and Bus Station, in the heart of the Town Centre.

Description

The property comprises a substantial investment asset that is currently fully occupied, with two commercial lettings and two residential lettings.

12-14 Horsemarket Street is occupied as a gent’s hairdressing salon/barbers shop at ground floor (they also occupy 5 other shops in the north west) together with two residential apartments above that benefit from separate access at the rear ground floor.

16 Horsemarket Street is occupied as a hair salon and is arranged over three floors.  The occupier also trades from an established and successful salon in nearby Stockton Heath, which has been trading for 10 years.

The upper floor apartments over 12-14 Horsemarket Street have recently been converted and were let out almost immediately following their completion.

Accommodation

12-14 (Ground)  75.0 m²  807 ft²

12-14 (First )  2 bedroom apartment

12-14 (Second)  2 bedroom apartment

16 (Whole)  145.0 m²  1,561 ft²

Tenure

The Asset is held on a 125 year ground Lease from 29 September 1994 at a ground rent of £9,375 pa. The Lease incorporates an upwards only 5 yearly rent review pattern and the rent was last reviewed in 2004. The ground rent is geared to 15% of the rent receivable. This means that the occupational rent would need to be greater than £62,500 to generate an increase in ground rent payable.

Lease Terms

12-14 Horsemarket Street (Ground Floor) – Let for a 10 year term from 2 September 2016 with a 5 year rent review and tenant break.  The current rent is £16,000 per annum rising to £18,000 per annum in September 2020.  The property is let to Barbers No. 1 Warrington Ltd with director’s personal guarantee.

12-14 Horsemarket Street (First & Second Floors) – Each floor is let on an Assured Shorthold Tenancy Agreement at £549 pcm per apartment.

16 Horsemarket Street (Three Floors) – Let for a 5 year term from 30 June 2016.  The current rent is £20,000 per annum rising to £24,000 per annum in June 2020. The property is let to Peter Walsh Hairdressing (Warrington) Ltd with director’s personal guarantee.

Rental Income

12-14 (Ground) – Current £16,000 pa rising to £18,000 pa (September 2020).

12-14 (First ) – £6,588 pa (£549 pcm).

12-14 (Second) – £6,588 pa (£549 pcm).

16 (Whole) – Current £20,000 pa rising to £24,000 pa (June 2020).

Total:  £49,176 pa rising to £55,176 pa (2020).

Sale Price 

The quoting sale price is £525,000 which represents a net initial yield of 7.25% after taking into account purchase costs of 5% and ground rent payable.

VAT

The purchase of this property will be subject to VAT, however, the transaction can be treated as a Transfer of a Going Concern (TOGC).

Contact 

Rob Bates – RBates@morganwilliams.com

Josh Morgan – JSMorgan@morganwilliams.com

Brochure

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Contact Information:

Morgan Williams

Mobile: 01925 414909 Fax: 01925 637619

720 Mandarin Court, Centre Park, Warrington, WA1 1GG