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    Key features

    • High Yielding Investment Opportunity
    • Parade of Five Retail Units and Yard
    • Fully Let - Producing £42,000 per annum
    • Contracted Rent of £50,000 per annum
    • Lease Expires 19/06/2026
    • Site Area: 0.22 acres (0.07 hectares)
    • Previous Consent for Redevelopment to Provide a Single Retail Unit and 18 Flats
    • Asset Management Potential
    • Prominent Corner Site in Established Port Town
    • Guide Price Reflects 11.9% Gross Yield
    • No VAT

    Description

    The property comprises a high yielding retail parade investment occupying a prominent corner site in Felixstowe.

    Arranged as a parade of five, ground floor, retail units with a garage and yard area to the rear, the property is let in its entirety to Felixstowe Auto Centre Limited. The lease is on full repairing and insuring terms, expiring 19/06/2026. The initial rent was £45,000 per annum, rising to £50,000 per annum in 2018. However we understand the tenant is currently paying £42,000 by informal agreement. This was agreed during the Covid-19 pandemic and there is no formal variation to the lease to reflect this rent reduction.

    We understand the tenant originally occupied the entire premises and it was used as a car showroom. However now the tenant uses the yard area for storage of vehicles in conjunction with an adjacent business and sub-lets the retail units to individual occupational tenants.

    We consider the property offers evident asset management potential and rental reversion by directly letting the individual units upon expiry of the lease. We estimate the rental value of the property to be in the order of £60,000 per annum.

    The property previously obtained planning consent under reference DC/15/2471/FUL for the development of a single ground floor retail unit with 18 residential apartments to the upper floors.

    Additional information

    Tenure

    Freehold

    Tenancy

    The property is let in its entirety to Felixstowe Auto Centre Limited. The lease is on full repairing and insuring terms, expiring 19/06/2026. The initial rent was £45,000 per annum, rising to £50,000 per annum in 2018. However we understand the tenant is currently paying £42,000 by informal agreement. This was agreed during the Covid-19 pandemic and there is no formal variation to the lease to reflect this rent reduction.


    There was a rent review on 29th June 2021 and we understand this was not exercised.

    Planning

    The property previously obtained planning consent under reference DC/15/2471/FUL for the development of a single ground floor retail unit with 18 residential apartments to the upper floors. The proposed scheme offered the below accommodation:


    Ground Floor

    Retail - 4,095 sq ft (380.5 sq m)


    First Floor

    Residential - 3 x One Bedroom Flats & 3 x Two Bedroom Flats


    Second Floor

    Residential - 3 x One Bedroom Flats & 3 x Two Bedroom Flats


    Third Floor

    Residential - 3 x One Bedroom Flats & 3 x Two Bedroom Flats

    Rent

    £50,000 per annum
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      Guide prices and common auction conditions

      •Guide prices given are indications within 10% upwards or downwards of where the reserve price may be set at the time of going to print. Please note they are not an indication of the anticipated sale price or a valuation.

      •The reserve price is the minimum price at which the property can be sold.

      •Both the guide price and reserve price may be subject to change up to and including the day of the auction.

      •For unsold properties after an auction an Available price may be listed. This is the price that the seller(s) are looking for post auction, subject to contract and no higher offers, and has no relation to the guide prices listed prior to the auction sale.

      Please note that all prices listed, whether prior to or post auction, are subject to contract.

      The Auctioneers and sellers accept no responsibility for any loss, cost or damage that a buyer may incur as a result of relying on any guide price. It is the buyer's responsibility to decide how much they should bid for any lot. Please check with us for regular updates as guide prices are subject to change prior to the auction.

      The guide price does not include the buyer's fee charged by the auctioneer or VAT which may apply to the sale or other amounts the seller may charge. The seller's Special Conditions of Sale will state whether there are other seller's charges and whether the seller has elected to charge VAT on the sale price.

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