The property is a purpose-built unit retail warehouse unit originally constructed in the 1980s and totals 25,215 sq ft GIA over the ground and first floor. It comprises steel portal frame construction with brick and steel cladding elevations. The unit benefits from a pitched, insulated steel clad roof with translucent roof lights.
Customer access to the property is afforded via Allerton Road, which runs directly from Bristol Road. Separate servicing access is situated to the end of Allerton Road.
Onsite customer car parking is situated to the front of the property with a total of 127 spaces, including 5 disabled spaces and 5 parent and child spaces, providing a ratio of 1:198 space per sq ft.
Freehold site extending to approximately 1.7 acres (0.7 hectares).
The property was originally let for a term of 35 years to B&Q from 4th December 1985, so expiring on 3rd December 2020.
Matalan Retail Ltd took assignment of the lease on 23rd March 2010, and a reversionary lease was documented in March 2016, extending the expiry to 3rd December 2030 with a tenant only break option on 3rd December 2025.
The current passing rent of £203,000 p.a. equates to £8.05 per sq ft and there is a fixed increase on 4th December 2020 to £228,375 p.a. (£9.06 psf). Should the December 2025 break not be optioned, there is a further review to the higher of OMV as non food retail use or, OMV for use as a warehouse plus 30%.
The unexpired term certain to break is 6.4 years and 11.4 years to expiry.
Matalan was founded in 1985 and is one of the leading fashion and homeware retailers in the UK. The company trades from 227 stores throughout the UK. Matalan Retail Limited (02103564) has a Dun & Bradstreet rating of 5A1 with a 'minimum risk of business failure'. For 13 weeks to 24 November 2018, the company reported a 'total revenue increase of 4.9% (£308.3m vs 2018 £293.8m)'.
The table in the link below sets out recent account information.
We understand the property has been elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern.
Offers are sought in excess of £2,544,000 (Two Million, Five Hundred and Forty-Four Thousand Pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a 7.50% IY based on purchaser's costs of 6.39%. The fixed increase at review in December 2020 will provide a reversionary yield of 8.43% and an equivalent yield of 7.76%.