583 Bearwood Road, Smethwick, Birmingham, B66 4BH

High street retail investment.

Property details

Type Investment, Retail
Tenure Long leasehold. 999 years from completion at a peppercorn ground rent.
Price Offers based on £875,000
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Features
  • Prominent location in thriving neighbourhood shopping suburb
  • Rear car park, with service access for collections
  • Let to established Home Furnishings store till 04/12/2025
  • Tenant established in 1951
  • Passing Rent - £60,000 per annum
  • Offers based on £875,000 (NIY of 6.49%)
Location
The property occupies a prominent position on the main A4030 Bearwood Road, which leads directly off the A456 Hagley Road. Bearwood is a thriving commercial and residential suburb and forms the southern part of Smethwick to the north of the Hagley Road (A456). The town is centred on Bearwood Road at the crossroads of Sandon Road and Three Shire Road, bordering the city centre, 4 miles (6.4 km) to the east. The town also benefits from excellent communications strategically lying within the motorway network which skirts the city (M5, M6, and M42).
Description

583 Bearwood Road comprises a substantial mid-parade two-storey retail premises, currently trading as a long established home furnishings store, extending to 10,699 square feet over two floors

Accommodation
Ground floor: 5,491 sq ft/510.13 sq m
First floor: 5,208 sq ft/483.83 sq m
Total: 10,699 sq ft/993.96 sq m
Price
Offers in the region of £875,000 are sought for the property. A purchase at this level would equate to a net initial yield of 6.49% (after purchasers costs of 5.60%), based on a passing rent of £60,000 pa.
Tenancy
The property is let to Levine Brothers (Home Furnishings) Ltd for a term of ten years from 7/5/2015 and expiring on 4/12/2025. The passing rent is £60,000 pa.

Tenant profile:
Levine Brothers is a third generation family business specialising in home furnishings. The business was founded in 1951 and has outlets throughout the West Midlands. The tenant has been based in Smethwick since 1959
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
The property has an EPC rating of C.
Legal Costs
Each party are to 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.