11 Sutton Road St Helens, WA9 3BN£290,000
The premise comprises a detached brick built converted warehouse with parking to the front, side and rear, which has been converted and subdivided into three units, it is a little tired looking but it has main road frontage with income, asset management angles and development potential.
The property is let on four different tenancies:
A convenience store (Kenzy’s Ltd) for a term of 10 years from 1st July 2016 with no breaks at a rental of £9,360pa with 3 yearly rent reviews based on RPI but capped at 3% per annum but with a minimum of 1% per annum.
A takeaway for a term of 10 years from 1st October 2016 at a rental of £8,840pa with 3 yearly rent reviews based on RPI capped at 3% per annum but with a minimum of 1% per annum.
A joinery workshop to the rear with side yard (1st Step Joinery Ltd) for a term of 10 years from 1stAugust 2016 at a rental of £10,140pa with a rent review at the end of the 5th year of the term based on RPI capped at 3% per annum but with a minimum of 1% per annum.
Advertising hoarding let to JC Decaux at an annual rent of £1,000pa.
The tenants of each of the units, particularly the takeaway and the joinery workshop / display area have invested significantly in the units, and each of the tenants have recently renewed former tenancies with no arrears on any of the rentals. In addition the rent reviews for each unit are fixed increases to RPI.
There is the potential to construct, subject to planning, two further units on the side of the property (one retail on the front and one storage unit / office from the rear), which are capable of producing a further circa £15,000pa.
We understand from the vendor that two of the tenants have expressed an interest in buying their own units and we would look to achieve £120,000 for each. That would leave the final unit and the advertising hoarding income together with the side and back land with a potential for further development.
We have managed to secure the contracts at £290,000
showing an initial 10.1% return.
Purchase Price: £290,000
Rental Income: £29,340
- 9.3% Rental Yield
- Asset Management/Development Potential
- Rental Income: £29340