Sale price: £546,500
Middlesbrough is the economic and administrative centre for Teesside. Located 40 miles south of Newcastle and 52 miles north of York the town has a population of 140,400 (Middlesbrough Council, 2016) with the Tees Valley having a population of 1.202 million (2019 – Eurostat).
The town is easily accessible from the A66, leading to the A19 and A1(M). By rail the town is connected to the rest of the UK via Darlington or York on the East Coast Mainline, with journeys to London being 2 hours and 50 minutes. The nearest airport is Durham Tees Valley Airport, located 12 miles to the south.
The property is centrally situated between The Cleveland Centre and Captain Cook Square Shopping Centre on the pedestrianised section of Linthorpe Road, the principal retail thoroughfare. Sports Direct have recently acquired the Freehold of the former BHS Department Store, which is located close by and are now separately trading their Sports Direct, USC and Flannels brands.
New Look and Boots occupy large stores directly opposite, with National operators Beaverbrooks, Select, Holland & Barrett, McDonalds and Deichmann Shoes located nearby.
The property is a mid-terraced brick-built retail property providing one retail unit arranged at ground floor with basement stores and with two upper floors, which historically have been used for office space. There is a private parking area at the rear of the property, suitable for 4 vehicles.
The subject premises comprise the following dimensions and floor areas: –
|Ground Floor Sales||163m2||1,754ft2|
|Ground Floor Staff/Stores||47m²||504ft²|
|ITZA (adjusted for 10%
W:D allowance at GF)
The property is held by way of a freehold.
Waklin Limited occupy the premises by way of a 5-year FRI lease from 21st May 2021 at an annual rental of £43,000. Please note the tenant is paying half rent for 12 months from 21st August 2021, after an initial 3 months’ rent free.
The repair liability is limited to a Schedule of Condition and copies of this document along with the lease are available upon request.
TENANT COVENANT INFORMATION
Waklin Limited (Co No 05072301) trade as Cash Generators (CGX) from originally 8 units in the North West, located in Manchester, Harpurhey, Ellesmere Port, Barrow, Bradford, Accrington, Leigh and Hyde. In early 2021 they carried out the first phase of an acquisition programme within the North East of England, which has resulted in 5 stores being acquired in locations including Darlington, Stockton, Gateshead and Middlesbrough. Waklin Limited were incorporated in March 2004 and have a Creditsafe Score of 59, which is classed as Low Risk. This is based upon the company’s latest industry classification, the score of 59 places the company in the middle to upper 25% of 1753 companies sampled from the same industry.
RETAIL MARKET COMMENTARY
Middlesbrough is the dominant retail core for Teesside and the wider area, with three major shopping centres and a total of 120,775 sq m (1.3 million sq ft) of retail accommodation.
Middlesbrough Council are looking to future proof the town centre, with vast transformations planned, a number of projects are already in progress, including a new campus for the Northern School of Art, grade A offices on Centre Square and an extension of the Boho Zone to provide space for the thriving digital and creative centres.
The Council has successfully bid for significant funding through the government’s Town Fund and Future High Streets Fund and they are looking to carry out a number of projects in the town centre, which include a £35 million transformation of Middlesbrough Railway Station, and Captain Cook Square will become a leisure destination with around 300,000 sq ft of space repurposed to create the largest cultural and leisure hub within a 50 mile radius. The subject letting equates to a headline rent of circa £36.50 Zone A after a 10% allowance for width:depth and NOI rent of circa £34.60 Zone A. Historic Zone A rates for this stretch of Linthorpe Road being circa £50-£65 psf.
The property is elected for VAT and all costs will be subject to VAT at the prevailing rate.
The property has an Energy Performance Certificate of Band D (82). A full copy of the EPC is available upon request.
We are instructed to seek offers in excess of £546,500 (five hundred and forty-six thousand five hundred pounds), which reflects a Net Initial Yield of 7.5% after allowing for usual Purchasers Costs of 4.88%.
FURTHER INFORMATION & VIEWING
For further information or to arrange an inspection please contact:
M: 07949 938210
Property type: Retail
Planning use: E
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