The town of Andover is situated in the county of Hampshire, occupying a strategic location in central southern England. It is located on the A303 trunk road which links to the M3 and serves as one of the main routes from the capital to the West Country. The A34, 11.3km (7 miles) to the east of Andover, connects the south coast ports with the Midlands via the M40 to the north.
Further information on Andover's catchment area and demographics can be found in the marketing brochure.
The development is being undertaken by Kier and will comprise a purpose built stand-alone foodstore of approximately 2,084 sq m (22,432 sq ft), a two unit A3 terrace of around 232 sq m (2,500 sq ft) and a drive thru unit extending to approximately 167 sq m (1,800 sq ft).
Primary customer access will be located on Colombus Way, along the south-eastern boundary of the site. A secondary access will also serve the site to the north west, from Magellan Close. Forecourt parking around the units will provide 176 spaces (1:153 sq ft). The site itself extends to approximately 3.5 acres (1.4 hectares).
Construction has started on site (1st October 2018) and practical completion is due in June 2019.
A new 150 year leasehold interest will be granted by Test Valley Borough Council on practical completion
of the development.
The lease will be subject to an initial annual pay away to the council of £24,781, thereafter reviewed 10 yearly to the higher of the current passing rent or 5% of the market rent.
Upon completion, the development will be let on FRI terms providing an average weighted unexpired lease term of 23.4 years to expiry (14.9 years to break). 87% of the income (Lidl & Starbucks) benefits from 5 yearly 2% per annum compounded rent reviews. We have detailed the tenancies in the table below:
The property has been elected for VAT purposes and it is anticipated that the investment sale will be treated as a TOGC.
Offers are invited on a Forward Commitment basis at a price in excess of £8,400,000 (Eight Million, Four Hundred Thousand Pounds) reflecting a net initial yield of 5.25%, assuming purchaser's costs of 6.68% and a net rent of £470,844 pa.
* Rent pa assumes 2% fixed increases on Starbucks and Lidl.