82-86 LONDON ROAD NORTH, LOWESTOFT
- Prime location with prominent frontage onto the prime pedestrianised London Road North.
- Opposite the main entrance to the Britten Shopping Centre.
- A well configured store arranged over ground and two upper floors, with a total area of 32,086 sq ft (2,980.9 sq m).
- Let to the 5A1 covenant of Marks and Spencer P.L.C. until March 2027.
- Restricted alienation clause and tenant option to renew for a further 40 years from expiry.
- Current net passing rent from 29th September 2019 of £254,325 per annum (£7.56 per sq ft).
- Benefits from fixed annual rental uplifts of 1.95% on 29th September each year.
- Benefits from dedicated car parking for approximately 26 cars.
- Predominantly freehold.
Offers sought in excess of £3,185,000 subject to contract and exclusive of VAT.
|Net Initial Yield||7.50%|
Yields are net of purchaser’s costs of 6.47%.
An attractive retail unit with prominent frontage onto London Road North
The property comprises an attractive retail unit with prominent frontage onto pedestrianised London Road North, with accommodation arranged over ground and two upper floors.
The ground floor comprises an open plan sales floor, with a large proportion of sales space utilised as an M&S Foodhall. Stock rooms are located on the first floor, with further storage and staff accommodation on the second floor.
The store also benefits from a secondary entrance and dedicated customer car park to the rear, with 26 spaces, which provides direct access to the Foodhall.
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 Grove Road to the side of the property. There is also a Collect by Car customer collection point here.
The property is let in its entirety to Marks and Spencer P.L.C. for a term commencing 6 July 2001 and expiring 31 March 2027.
The current rent of £254,825 per annum from 29th September 2019 is subject to fixed uplifts of 1.95% per annum on 29th September annually. The rent reflects £7.56 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 to assign to a company within the Marks and Spencer group or “of no less a financial standing” than Marks and Spencer P.L.C. 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 SK217061.
The tenure also includes the benefit of the first floor of the adjoining property 78-80 London Road North held under title number SK216757 on a lease expiring on 1st July 2027 at a rent of £500 per annum. This area forms part of the demised area of the occupational lease to Marks and Spencer P.L.C.
The property is located in the coastal market town of Lowestoft, Suffolk. Lowestoft is the most easterly town in the UK and is a popular holiday destination, located approximately 25 miles (40.2 km) south east of Norwich, 43 miles (69.2 km) north east of Ipswich and 105 miles (169.0 km) north east of Central London.