The property is held freehold.
The property is let in its entirety to Guernsey Gas Limited for a term of 15 years from 28th April 2016 on a Full Repairing and Insuring Lease, expiring on 27th April 2031, providing a term certain of 14.6
years unexpired. The current passing rent is £355,000 per annum (£15.02 per sq ft overall) and is subject to upward only Guernsey Retail Price Index (GRPI) increases, compounded annually and
capped at 2.5% per annum. There is also a coinciding three yearly upwards only open market rent review mechanism, reviewed to the higher of the preceding rent or market rent.
Guernsey Retail Price Index
The Guernsey Retail Price Index has averaged an annual change of 2.3% between June 2011 and June 2016 (Guernsey Quarterly Inflation Bulletin).
The Guernsey Policy & Resources Committee have a GRPI target rate of 3%, which they hope to attain by mid-2017. A target of 3% illustrates excellent potential for maximising annual rental uplifts through achieving increases at the cap level of 2.5%.
Guernsey Gas Limited (Guernsey Reg Number: 19923)
Guernsey Gas Limited was incorporated in January 1911 and supplies and distributes gas on the island. They are Guernsey's only gas provider and have remained privatised as compared to Guernsey's electrical and water suppliers, who are ultimately controlled by the States of Guernsey. The company also provides gas maintenance and installation services, as well as retailing a variety of appliances and electrical equipment at the subject property's on-site showroom.
Guernsey Gas is one of five operating companies under ownership of the International Energy Group (IEG), who also own gas providers in the offshore centres of Jersey (Jersey Gas Company Limited) and The Isle of Man (Manx Gas Limited). IEG has more than 40,000 customers connected to its networks and has been supplying gas in the Channel Islands and the Isle of Man since the 1830s.
The International Energy Group was acquired by Ancala Partners LLP in May 2016 for its UK Infrastructure Platform. Ancala is a long-term infrastructure investor, investing on behalf of pension plans. The company do not disclose their financial records and are registered in Guernsey.
Currently neither VAT nor GST (Goods and Services Tax) are applicable in Guernsey.
Offers are invited in excess of £5,430,000 (Five Million, Four Hundred and Thirty Thousand Pounds) for the freehold interest, subject to contract. A purchase at this level reflects a net initial yield of 6.44%, after allowing for purchaser's costs of 1.50%, assuming an acquisition of the SPV.