Victoria Court, The Horsefair

Wetherby LS22 6JA

Overview

  • Opportunity to acquire a prime food store investment in Wetherby
  • Situated on The Horsefair adjacent to the High Street in the heart of Wetherby, a popular and affluent market town
  • The property provides a food store at ground level with 24 apartments over three upper floors (sold off on 999-year leases), together with a detached two-storey restaurant unit
  • Generating a total income of £233,500 per annum
  • Over 80% of income contracted to the 5A 2 covenant of Marks and Spencer plc, with over 10 years remaining on the lease
  • Seeking offers in excess of £3,500,000 (Three Million, Five Hundred Thousand Pounds), exclusive of VAT
  • A purchase at this level reflects a Net Initial Yield of 6.25% assuming standard purchaser's costs of 6.50%

Location

Wetherby is a small affluent market town in West Yorkshire with a population of 19,979 (2011 Census), located close to the border of North Yorkshire on the banks of the River Wharfe.

The town is situated approximately 11 miles north east of Leeds, 7 miles south east of Harrogate and 12 miles west of York, ideally located and well sought after by commuters.

Wetherby is positioned adjacent to the A1 (M), which can be easily accessed from Junctions 45 and 46. The A58 provides direct access from Wetherby to Leeds City Centre, Harrogate is accessed by the A661, and York via York Road (B1224), with approximate drive times of 30 minutes, 20 minutes and 25 minutes respectively.

Wetherby benefits from its own designated bus station, with regular services to nearby towns and cities.

Situation

The Horsefair is the site of the old cattle market, and is therefore located centrally within the town, close to the popular High Street. The subject property is located opposite the 'Cluster of Nuts' car park, which is free to use and serves the town centre.

Road access to the courtyard area is via Victoria Street. It can be accessed on foot from the High Street (Via Cattle Market Walk), from The Horsefair (Via Teasdale & Metcalfe Walk) and from Nags Lane.

Directly opposite the subject property is The Horsefair Shopping Centre, comprising 26 retail units, open 7 days a week. Occupiers include Argos, Boots, Holland & Barrett, New Look, Greggs, Costs and The Card Factory, plus several more household names.

Description

The property comprises two separate buildings; a purpose-built four storey development, constructed in 2006, providing a food store at ground level and 24 apartments arranged over the first, second and third floors, together with a detached two-storey restaurant unit.

The two buildings are arranged around a central courtyard and car park, providing a total of approximately 40 parking spaces which service the food store and restaurant unit, as well as parking provision for the residential units.

Accommodation

A Schedule of Accommodation can be found within the link below.


Tenure

Freehold.

Tenancy

The property is let in accordance with the schedule below, generating a total income of £233,500 per annum, with a WAULT to expiries of 35.0 years (34.1 years to breaks). Excluding the residential ground rents, the WAULT of the commercial units is 9.9 years to expiries (9.1 years to breaks).

Service Charge

There is a service charge in place which covers the maintenance of the external common areas, including the car park. There is also a separate service charge in place to maintain the internal common areas of the retail and residential block.


Covenant Information

Marks & Spencer PLC
(CRN: 00214436)


Marks and Spencer is a renowned British retailer and a household name, founded in Leeds in 1884 and now operating 959 stores across the UK.

The business employs over 78,000 people, serving approximately 32 million customers annually. The retailer is committed to futureproofing the business, with food sales remaining at the core of their strategy and now accounting for £6.03bn of revenue (approximately 60%). UK food revenue and profit before adjusting items increased by 2.1% and 11.0% respectively from 2019-20. Covid-19 has unsurprisingly had a positive effect and increased demand.

Marks and Spencer plc have a Dun & Bradstreet rating of 5A 2. A summary of their last three years of accounts is set out in the link below:

Bengal Brasserie

The Bengal Brasserie is an independently owned chain of restaurants operating over five sites: Wetherby, Leeds City Centre, Roundhay, Burley and York.

No trading accounts are available; however, the restaurant has remained open for takeaway throughout the most recent lockdown in accordance with Government Guidelines and are fully up to date with rental payments.


VAT

The property is VAT elected and VAT will therefore be payable upon the purchase price. It is anticipated that the sale can be treated as the Transfer of a Going Concern (TOGC).

EPC

The food store provides an EPC rating of B 49 and the restaurant unit shows a rating of C 55.

Copies of certification is available on request.

AML

In accordance with Anti-Money Laundering (AML) Regulation, the purchaser will be required to provide two forms of identification and confirmation of the source of funding.

Proposal

We are instructed to seek offers in excess of £3,500,000 (Three Million, Five hundred Thousand Pounds), exclusive of VAT which reflects a Net Initial Yield of 6.25%, assuming standard purchaser's costs of 6.50%.

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NET INITIAL YIELD:
6.25%
PRICE:
£3,500,000
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