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Peter Heather Partner View Profile

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Call: 01872 247007
Email: pgh@miller-commercial.co.uk

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SOLD - 6-7, Victoria Square, Truro, Cornwall

Investments Commercial for sale

£1,500,000 Price

Freehold

A prominent retail investment in a strong secondary trading pitch. The property comprises a total of approximately 16,397 sqft over 3 floors and has great strategic value as a City centre building backing onto Moorfield car park. The property is let to Mallet and Son Ltd on a 15 year lease, expiring December 2019 at a passing rent of £138,000 pax. We are instructed to seek offers of £1.5 million, reflecting a Net Initial Yield of 8.7% after purchaser's costs estimated at 5.8%.

  • PROMINENT RETAIL INVESTMENT IN GOOD SECONDARY LOCATION
  • NET INITIAL YIELD 8.7%
  • LONG ESTABLISHED TENANT WITH OVER 100 YEARS HISTORY
  • DEVELOPMENT POTENTIAL
  • 16,397 SQFT OVER THREE FLOORS
  • EPC RATING C

Property Brochure PDF Location Map

Location

The cathedral city of Truro is Cornwall’s principle administrative and retail centre, with a population of 20,000. The city centre benefits from a wide range of retail occupiers, with a significant number of new entrants over the past few years including The White Company, L’Occitaine en Provence, Jack Wills and Primark. The market for A3 occupiers is similarly strong, with a good mix of independent and national operators. The city is located approximately 55 miles west of Plymouth and 30 miles east of Plymouth.

The city enjoys excellent transport links via the A390 and A39 to the A30 trunk road which leads westwards out of the county via Bodmin, Launceston and the through to Exeter, and eastwards to Penzance via Camborne and Redruth.

Truro railway station offers regular direct train links to London Paddington and the North,

Situation

The property is located in a prominent corner position on Victoria Square, one of the main retail areas with the city. Nearby occupiers include Subway, Rowes, Argos, Moshulu, Starbucks, Costa and Boots. The nearby bus stop in front of the unit, and Moorfield multi-storey car park to the rear ensure significant footfall throughout the day.

Description

This property comprises two buildings, Number 6 has been extended twice, The property offers significant retail space on the ground and first floor levels and has further ancillary space on the second floor. Number 7 was completely rebuilt in circa 1987 and although the facade shows three storeys, it is in fact two level floors. The entire property may easily be split into separate buildings if required in the future, with independent utilities.

The property is accessed both from Victoria Square at the front, and at ground and first floor level at the rear, providing a direct cut- through from Moorfield car park and separately from Lemon Street Market. The building’s position in relation to the car park and Lemon Street, together with its size give it great strategic importance for any future development in this position.

Tenancy

The property is let in its entirety to Mallet and Son Limited on a 15 year lease from 12th December 2004, expiring on 11th December 2019 at a passing rent of £138,000 pa . The lease is let under Internal Repairing and Insuring terms with a further tenant obligation to decorate the exterior of the building.

Schedule Of Accommodation

(All Areas and Measurements are approximate)

Rental Analysis

We calculate the passing rental of £138,000 pax to equate to £57.58 Zone A (£9.74psqft overall). This calculation is before allowing for a quantum discount of 20% and a premium of 8% to reflect IRI terms.. The most recent comparable lettings are:1) the the open market letting to Amplifon at 8 Victoria Square at £57.47 Zone A (allowing for incentives), 2) The ground floor letting of Unit 3B Calenick Street to ATOS at £15psqft overall, 3) the mainly first floor letting to Anytime Fitness of Unit 3D Calenick Street at £12psqft overall, and 4) 25 Victoria Square to Mountain Warehou rentedse at £80psqft Zone A. We consider that the unit is rack rented.

Covenant Status

Mallets Home Hardware is one of the best know properties in Truro and has traded in this position for over 100 years. Mallet and Son Limited is now part of the Home Hardware Southwest Limited group, which for the year ended June 2015 achieved sales of £30.56m, operating profit of £0.46m and Net Assets of £2.48m. For the year ended June 2015 Mallet and Son Limited achieved sales of £2.65m and operating loss of £.042m and Net Assets of £0.15m

Tenure

Freehold, subject to the occupational lease to Mallet and Son Limited dated 12th December 2014

Investment Proposal

We are instructed to seek offers of £1,500,000 reflecting a Net Initial Yield of 8.7% after allowing for purchaser’s costs estimated at 5.8%.

Vat

We understand that an option to tax has been made for this property and we anticipate the sale being treated as a TOGC.

Legal Costs

Each party to bear their own.

Business Rates

BUSINESS RATES
We refer you to the valuation office website www.voa.gov.uk or call 0300-1234-171

Services

Prospective owners should make their own enquiries of the appropriate statutory undertakers:
Western Power: 0845 601 2989
South West Water: 0800 169 1144
Transco: 0800 111 999

Epc

The Energy Performance Rating for this property is within Band C.

Contacts

Peter Heather: tel. 01872 247007 email. pgh@miller-commercial.co.uk
Will Attlee: tel. 01872 247004 email. wa@miller-commercial.co.uk

PLANS: Plans and maps reproduced under Ordnance Survey Licence No LIG1179. Not to scale and for identification of the property only. They are not intended to show actual site boundaries and not guaranteed to be accurate.

AGENTS NOTE: Miller Commercial for themselves and for the Vendor/s or lessor/s of this property give notice: [a] These particulars are for an intending purchaser or tenant and although they are believed to be correct their accuracy is not guaranteed and any error or misdescriptions shall not annul the sale or be grounds on which compensation may be claimed and neither do they constitute any part of a Contract: [b] Any intending purchaser or tenant must satisfy him/herself by inspection or other wise as to the correctness of each of the statements contained in these particulars; [c] No responsibility is taken for expenses incurred should the property be sold, let or withdrawn before inspection: [d] None of the services or appliances, plumbing, heating or electrical installations have been tested by the selling agent.

Miller Commercial is the trading name of Miller Commercial LLP registered in England and Wales under Registration No.OC373087. The Registered Office of Miller Commercial LLP is Mansion House, Princes Street, Truro TR1 2RF. We use the term Partner to refer to a member of Miller Commercial LLP. VAT Registration No.643 4519 39.

VIEWING: Strictly by prior appointment through Miller Commercial.

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Peter Heather Partner View Profile

Contact us about this property

Call: 01872 247007
Email: pgh@miller-commercial.co.uk

Property Brochure PDF