8 NEWBOROUGH, SCARBOROUGH
- 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).
- 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 £569,334 per annum (£8.15 per sq ft) rises to £580,436 per annum (£8.72 per sq ft) at the next fixed uplift on 29 September 2019.
Offers sought in excess of £7,750,000 subject to contract and exclusive of VAT.
|Net Initial Yield||7.02%|
Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.66%.
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
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 £569,334 per annum (£8.15 per sq ft) is subject to fixed annual uplifts on 29th September by 1.95%. The passing rent will increase to £580,436 per annum on 29th September 2019 which 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 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 NYK251591.
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.