Riverside, Exchange Street

Kidderminster DY10 1BY

Overview

  • Located in a busy waterside location in the heart of the Worcestershire town of Kidderminster
  • Modern development comprising four leisure units totalling 1,064 sq m (11,453 sq ft) and a refurbished period office building (which has been sold long leasehold)
  • Fully-let with an income-weighted average unexpired lease term of 17 years 9 months to expiry and 11 years 9 months to break
  • Headline rental income of £197,000 per annum exclusive


We are instructed to seek offers in excess of £2,750,000 (two million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 6.73% having deducted normal purchaser's costs of 6.42%.

Location

Kidderminster is a town of 55,530 people and the principal centre for the largely rural Wyre Forest district in north Worcestershire, located approximately 14 miles north of Worcester, 10 miles south west of Dudley and 16 miles south west of Birmingham.

The town became famous for carpet manufacturing after Brintons established itself in the town in 1783 and manufacturing remains important to the local economy, accounting for 15.8% of employment (compared with the national average of 8.8%). Nevertheless, retail is the most important sector overall, accounting for 19.5% of employment; the town has an estimated catchment population of 102,000 people extending across the Wyre Forest district and beyond (PMA, 2018), while the district attracts 700,000 tourists a year (Wyre Forest District Council, 2010).

The location of Kidderminster is reflected in its transport links. The town is at the intersection of the A456 (Birmingham-Tenbury Wells road) and the A449 (Worcester-Wolverhampton road), which give access to junction 3 of the M5 (approximately 10 miles to the north east) and to junction 6 of the M5 (approximately 14 miles to the south) respectively. It has a station on the Worcester-Birmingham Snow Hill railway line, served by trains about every 15 minutes at peak periods, with approximate journey times of 20 minutes to Worcester and 40 minutes to Birmingham; the station is also served by some direct Chiltern Railways trains to London Marylebone at peak periods.

Situation

The property is situated in the heart of Kidderminster town centre, to the west (rear) of the Town Hall and on the northern side of Exchange Street, overlooking the River Stour. Kidderminster Library and Kidderminster College are on the southern side of Exchange Street, while the bus station and Weaver's Wharf shopping park are on the opposite side of the river; Weaver's Wharf is the major managed scheme in the town, totalling approximately 20,530 sq m (221,000 sq ft) with extensive car parking. Riverside fronts a busy walkway along the River Stour.

Description

Riverside is the income-producing element of a larger property, created through the refurbishment and partial redevelopment of the historic Brintons Carpets head office and works.

Riverside comprises a terrace of four single-storey retail/leisure units overlooking the River Stour. The building, which is mainly a new development, is of steel frame construction under a decked flat roof and incorporates the flank walls of the former building, while the western (front) elevation has fully-glazed shop fronts with charcoal-coloured cladding panels above. There is a south-west facing hard-paved deck to the front of the units, providing outside seating areas for 200+ covers and walkway, along the full length of the riverside frontage.

The end units (1 and 4) incorporate elements of, and are partially over-sailed by, the original building. Now known as Brinton House, the remainder of the property is a three-storey building of masonry construction with stone dressings, which dates to 1876 with later extensions. Brinton House, which faces east, has been refurbished as office accommodation.

The whole property is Grade II listed - as such, an Energy Performance Certificate is not required - and located within the Vicar Street Conservation Area.

Accommodation

Riverside the leisure units provides a total of approximately 1,064 sq m (11,453 sq ft); floors areas for individual units are set out in the tenancy schedules on the following page.

Tenure

The property, comprising both Riverside and Brinton House, is held freehold.

Tenancy

The property is fully let on five effectively full repairing and insuring leases. Riverside is let to four tenants, as per the tenancy schedule below, with an income-weighted average unexpired lease term of 17 years 11 months to expiry and 11 years 11 months to break. The headline rental income is £197,000 per annum exclusive, with each lease having five-yearly, upwards-only, open market rent reviews.

Brinton House is let to the Trustees of the Highlands Pension Fund for 999 years from 29th April 2016 at a peppercorn rent without review; the trustees are directors of TH Baker and Brinton House is the jewellery retailer's head office.


Covenant Information

Information on the four tenants of the Riverside units is set out in the link below.


VAT

The property is elected to tax for VAT, but it is anticipated that the transaction will be treated as a Transfer of a Going Concern ("TOGC") provided the necessary conditions are met.

Service Charge

There is a service charge to cover the maintenance and repair of the common parts, exterior and structure of the property.

The budget for the year ending 24th June 2019 is £9,860, which equates to £9.27 per sq m (£0.86 per sq ft).

Proposal

We are instructed to seek offers in excess of £2,750,000 (two million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property.

A purchase at this level would reflect a net initial yield of 6.73% having deducted normal purchaser's costs of 6.42%.

Download Brochure



Google Maps

NET INITIAL YIELD:
6.73%
PRICE:
£2,750,000
REGISTER INTEREST
OR CONTACT US

Please select a contact *

 
 
 

(* Required Field)