The property comprises a substantial Victorian building erected 90 100 years ago, with accommodation arranged on ground and two upper floors.
Gateford Road’s main frontage consists of 5 individual shops, 2 of which are occupied by 1 tenant, including 2 residential apartments above. Approached from the rear, there are 6 individual flats, including those referred to above, with some occupied as double units.
Units 5a and 11a are arranged on first and second floors and are capable of being split into 1 bedroom flats, which has already occurred in respect of Units 13a and 13b and these units produce an income in excess of £9,000 per annum. There is the potential to increase the reversionary income further.
At the rear of the property there are a number of dilapidated buildings which, subject to planning consent, are capable of being developed to provide further residential accommodation.
Location
Worksop is a north Nottinghamshire market town with a resident population of approximately 39,000 and a district population of circa 108,000. The prime shopping facilities for Worksop are located upon the pedestrianised centre of Bridge Place and Priory Centre. In Worksop town centre there are many multiple retailers represented including; B&M Bargains, Peacocks, Bonmarche, Iceland, Wilkinsons, M&Co, Thomas Cook and JD Sports. Close by there are branches of Matalan and Halfords.
Gateford Road is a northern continuation of Bridge Place and one of the main thoroughfares out of the town centre connecting ultimately with the M1, M18 and M62 Motorway. This property is located in the middle of Worksop town centre fronting onto the busy Victoria Square which in turn connects with the main arterial roads through Gateford Road, Carlton Road, Eastgate and Watson Road.
The property, being north of the town centre, occupies a secondary retail position but remains popular with retailers with significant traffic and footfall as a result of its location.
Accommodation
Tenancies and Income - The property currently produces a gross income of £85,840 per annum.
A new 5 year lease has just been agreed on Unit 11 at £ 6,500 p.a. A verbal agreement is in place with Speedy Peppers who has been in occupation for many years.
The residential elements are let at rents between £375 and £550 pcm.
There is a car park currently let to Speedy Peppers producing an income of £9,500 per annum. Currently there is an advertising hoarding on a 3 year lease, expiring in April 2021,
producing a further income of £3,000. We consider that this element is reversionary.
There is the potential therefore to increase the income further closer to a gross figure of £90,000 per annum. Please see the above schedule of income, areas and tenancies.
Terms
EPC - Full details of the EPC are available upon request.
VAT and Costs - The property is partially elected for VAT (No. 7 & 9). VAT is not payable on the remaining part of the purchase. Each side will be responsible for their own costs.
Tenure - Freehold
Price - Offers are invited at:-
£740,000 (Seven Hundred and Forty Thousand Pounds) This will show an initial yield of 11.60% and a reversionary yield of 11.87% net of purchasing costs at 6.85%.
Asset Management Opportunity - There is the opportunity to increase the income from the advertising hoarding and also to split the residential tenancies of 5a and 11a to provide two, one bedroom flats which can be let at figure in excess of £4,500 per annum, per unit, as has already occurred in respect of No. 13.
There is also development potential, subject to planning, of the outbuildings to the rear to provide further residential units, including possible development of the car park.
Specification
- 4 ground floor units and 6 flats – fully let
- Asset management potential
- High income producing investment
- Current income £85,840 per annum
- Offers sought in the region of £740,000 to show a gross yield of 11.60% and a reversionary yield of 11.87% net of costs
- Partially elected for VAT