2 & 4 Parade, Leamington Spa, Warwickshire, CV32 4DW

Prominent retail investment opportunity

Property details

Type Investment, Retail
Tenure Long Leasehold. A new 999 year lease from completion at a peppercorn ground rent.
Price Offers in the region of £625,000
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Features
  • Prominent retail investment opportunity
  • Royal Leamington Spa is an affluent spa town, with attractive Regency architecture
  • Located in Prime Trading Position close to Tesco, Greggs and Poundland
  • Currently let to Hammonds Furniture Limited on a 10-year lease, expiring 03/10/2032
  • Passing rent - £52,500 per annum
  • Offers in the region of £625,000 are sought. A purchase at this level represents a net initial yield of 7.99%
Location
Royal Leamington Spa is an affluent spa town in the county of Warwickshire. The town is located approximately 3 miles east of Warwick, 10 miles south of Coventry and 20 miles south east of Birmingham. Royal Leamington Spa benefits from excellent road communications with direct access to the M40 (Junctions 13, 14 and 15). The M6, to the north (Junction 3) and the M1, to the east (Junctions 16 and 17), are also within easy reach. The town’s National Rail station provides direct services to Oxford (35 minutes), Birmingham (Moor Street, New Street, Snow Hill and International stations: 35 minutes, or less) and London (Marylebone and Euston: 1 hour and 20 minutes). Birmingham Airport is located approximately 16 miles north west of the town, offering a wide variety of domestic and international flights.
Description

The subject property is a ground floor corner retail unit that extends from the main Parade around to Clarendon Avenue. The approximate area is 2,022 sq ft, and there is also service access to the rear.

Accommodation
Ground floor retail - 2,022 sq ft/187.84 sq m
Price
Offers in the region of £625,000 are sought. A purchase at this level would equate to a net initial yield of 7.99%, based on a passing rent of £52,500 per annum.
Tenancy
The property is currently let to Hammonds Furniture Limited on a ten-year lease from 04/10/2022, expiring 03/10/2032 at a passing rent of £52,500 per annum. There is a break clause and rent review on 04/10/2027 and the tenant is to pay a 6 months rent penalty if the break is excerised. The tenant has been granted a rent free period until 04/04/2023, which will be topped up by the vendor upon completion. Hammonds have operated from this location long term and have recently expanded into the adjacent unit, demonstrating commitment to this location.
VAT
We are advised that VAT is payable, although it is anticipated that the transaction will be dealt with by way of a TOGC.
EPC
Available upon request.
Legal Costs
Each party is to be responsible for their own legal costs that may be incurred in this transaction.
Anti Money Laundering
In accordance with anti-money laundering regulations, two forms of identity and confirmation of the source of funding will be required from the successful purchaser.