8 NEWBOROUGH, SCARBOROUGH

Investment Considerations

  • Prime location with prominent frontage onto the pedestrianised Newborough and return frontage to St Nicholas Street.
  • A well configured store arranged over ground and two upper floors, with a total area of 66,510 sq ft (6,179 sq m).
  • Freehold.
  • 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.
  • Benefits from fixed annual rental uplifts of 1.95% on 29 September each year.
  • Current passing rent of £580,436 per annum (£8.72 per sq ft).

PROPOSAL

Offers sought in excess of £7,500,000 subject to contract and exclusive of VAT.

Net Initial Yield 7.26%
Equivalent Yield 8.03%
Reversionary Yield 8.31%

Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.66%.

Description

Attractive retail store in prime position

The property comprises a prominent and attractive retail unit with excellent frontage onto pedestrianised Newborough, 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. The Foodhall also benefits from secondary frontage onto St Nicholas Street. Further sales space and the M&S Café are located at first floor, with stock rooms and staff accommodation on the second floor.

The store is serviced directly from the front on Newborough by means of a dedicated service area

TENANCY

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 £580,436 per annum from 29th September 2019 is subject to fixed uplifts of 1.95% per annum on 29th September annually. The rent reflects £8.72 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).

TENURE

The property is held freehold under title number NYK251591.

Location

Scarborough is a popular seaside town located on the North Yorkshire coast, approximately 41 miles (66 km) north east of York and 45 miles (72 km) north of Hull. Scarborough is the principal town on the south side of the North Yorkshire Moors National Park and, as such, benefits from a strong tourist industry, particularly during the summer months.

Contacts

For further information please contact:

Becky Hance

020 7344 6841
becky.hance@colliers.com

Hannah Greenland

020 7344 6559
hannah.greenland@colliers.com

James Bryer

020 3758 8261
james.bryer@hpfour.co.uk

Jeremy Roger

020 3758 8262
jeremy.roger@hpfour.co.uk


Colliers International

Colliers International

50 George Street
London W1U 7GA

www.colliersretailcapitalmarkets.com

HP Four

HP Four

128 Wigmore Street
London W1U 3SA

http://www.hpfour.co.uk


Misrepresentation Act
Colliers International and HP Four Investment LLP gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person employed or engaged by Colliers International or HP Four Investment LLP has any authority to make any representation or warranty whatsoever in relation to this property. (May 2019). Colliers International is the licensed trading name of Colliers International Property Advisors UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA. October 2019.

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