78-79 HIGH STREET, BARNSTAPLE
- Prime location with prominent frontage onto the pedestrianised High Street and direct access to the town’s principal surface car park to the rear.
- A well configured and established store trading over ground and first floors, with a total area of 49,407 sq ft (4,590 sq m).
- A significant proportion of ground floor space dedicated to M&S Foodhall.
- Let to the 5A1 covenant of Marks and Spencer PLC until March 2027.
- Restricted alienation clause and tenant option to renew for a further 40 years from expiry.
- Benefits from fixed annual rental uplifts of 1.95% on 29 September each year.
- Current passing rent of £486,016 per annum (£9.37 per sq ft) rises to £495,494 per annum (£9.55 per sq ft) at the next fixed uplift on 29 September 2019.
Offers sought in excess of £6,640,000 subject to contract and exclusive of VAT.
|Net Initial Yield||7.00%|
Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.64%.
Well configured and fit for purpose
The property comprises a substantial, attractive retail unit with prominent frontage onto pedestrianised High Street, with accommodation arranged over ground and two upper floors. The store benefits from three additional customer entrances onto Paiges Lane and Holland Street where the Cattle Market Car Park is located. The property is of modern construction behind a retained period façade.
The ground floor comprises a large open plan sales floor, including M&S Foodhall, while the first floor comprises further sales space and the main stock rooms. The very popular M&S Café is also located at first floor.
Access to the first floor is provided via an escalator and customer lifts. Goods lifts provide direct access to the stock rooms on all floors from the loading bay, which is located at ground floor level and accessed via Holland Street to the rear of the property.
Staff facilities and further ancillary space are located on the second floor.
The property is let in its entirety to Marks and Spencer PLC for a term commencing 6 July 2001 and expiring 31 March 2027.
The current rent of £486,016 per annum (£9.37 per sq ft) is subject to fixed annual uplifts on 29th September by 1.95%. The passing rent will increase to £495,494 per annum on 29th September 2019 which reflects £9.55 per sq ft (incorporating an addition of 5% for fittings).
The alienation provisions are restrictive and highly beneficial to the landlord; the tenant can only assign to a company “of no less financial standing” than Marks and Spencer PLC as at the start of the lease in 2001, i.e. an investment grade rating of ‘A’ or better.
The lease is FRI and is outside the L&T Act 1954.
On expiry, the tenant has the right to renew the lease for a term of 40 years, at open market rent, with a break at the 15th year (31st March 2042).
The property is held freehold under title number DN452888.
The property is located in the coastal market town of Barnstaple, North Devon. Barnstaple is located approximately 45 miles north west of Exeter, 50 miles west of Taunton and 85 miles south west of Bristol.