8 bedroom commercial property for sale

High Street, Southend-On-Sea, Essex, SS1

Offers in Excess of 4,614 sq. ft. | £1,750,000

Property Description

Commercial information

  • 4,614 sq ft (428 sq m)

Key features

  • Major commercial, retail centre and tourist destination in Essex
  • The property is located in 100% prime retail pitch on the pedestrianised High Street
  • Ground floor and basement let to Savers
  • Vacant possession of the upper flats finished to a high standard and ready for occupation
  • Freehold
  • Income from Savers 70,000 pa rising to 75,000 pa in years 4 and 5
  • low re-based rent
  • opportunity to let or sell the flats
  • Price: Offers in excess of 1,750,000 (subject to contract and exclusive of VAT)

Full description

Tenure: Freehold

LOCATION

Southend-on-Sea is one of the principal commercial centres in Essex and a popular tourist
destination, located 15 miles east of Basildon, 20 miles south east of Chelmsford and 42 miles
east of Central London.
The town benefits from excellent road communications, with the A127 and A13 providing access
to the M25 (Junction 29) and Central London. National Rail services are available from three
Southend stations to Liverpool Street and Fenchurch Street stations, with the fastest journey time of 46 minutes.
London Southend Airport offers scheduled flights to destinations across Europe, whilst Stansted
Airport (32 miles) provides a greater number of flights to more destinations.

DEMOGRAPHICS AND LOCAL ECONOMY

Southend-on-Sea is a Unitary Authority area and has borough status. It has a resident population in excess of 174,000 persons, with an estimated catchment population of over 628,000 people (within 12 miles). Major employers in the town include HMRC, whose main VAT office is in Southend, RBS Card Services, British Telecom and InsureandGo. The town is a popular tourist destination with estimated day visitors in excess of 6 million annually. The University of Essex is situated close by and is host to some 15,000 students in the Southend campus alone.

RETAILING IN SOUTHEND

With little competition Southend benefits from a large and loyal catchment population and has an impressive retail offer, with the prime High Street (almost entirely pedestrianised) providing the link between two Shopping Centres. The Victoria Plaza Shopping Centre (main anchors - Next, New Look, Wilkos and Peacocks) comprises 390,000 sq ft of retail space with 600 car spaces lies at the northern end of the High Street. The Royals Shopping Centre (main anchors - Debenhams, Boots, Primark and TK Maxx) comprises 280,000 sq ft of retail space with 500 car parking spaces lies at the southern end of the High Street.
The subject property is situated in a prime retailing location adjacent to numerous national multiples including WH Smith, McDonalds, Costa, Virgin Media and Top Shop.
Prime rents within Southend peaked at around 120 Zone A in 2006 but fell back during the recession. Following recovery they now stand at around 70 - 75 Zone A.
We analyse the passing rent to Savers at approximately 48 Zone A. In our opinion the rent is highly reversionary.

DESCRIPTION

The property is a brick construction beneath a pitched roof and provides a retail unit on ground and basement and recently converted upper parts comprising four 1-bed and two 2-bed flats. Rear access is via a passage approached off Queens Road.

TENANCY

The ground and basement floors are let to Savers Health and Beauty Limited for a term of 10 years with effect from 4th November 2015 (approx.9 years unexpired ) at a current rent of 70,000 pa rising to 75,000 pa in years 4 and 5. The lease is on full repairing and insuring terms and provides for an upward only rent review on 4th November 2020.
There is a tenant only break option on 3rd November 2020 subject to a 3 month rent penalty if effected.

TENURE

Freehold.

RESIDENTIAL

Southend is a growing town with a great future benefitting from an award winning rail link to London served by Southend Victoria Station (for Liverpool Street) and Central Station (for C2C
Fenchurch Street). Inward investment is evident generated by the vastly improved and expanding airport. The town continues to attract considerable investment from a number of sources including the new Essex University campus, new hotels, and the upgrading of the seafront and cliffs area. For those with an eye to impending exceptional capital growth Southend is an ideal choice.
With the exciting new Victoria regeneration project and the interest already being received from Investors and private buyers the outlook for Southend is certainly bright.

ASSET MANAGEMENT / OPPORTUNITY

The purchaser has the opportunity of either letting the flats on ASTs, or selling them on long leases ,or a combination of both. In addition there is the potential to benefit from a higher rental income on the shop on review in November 2020.

COVENANT INFORMATION

Savers currently trade from 379 branches throughout the UK. They are a subsidiary company of A.S. Watson ( Health and Beauty UK ) Ltd; Hutchison Whampoa is the ultimate parent company.
For the year ended 26th December 2016 the company made a profit of 29,106,000 on a urnover of 362,314,000 and have a below average credit risk.

VAT

We understand that the property is elected for VAT.

EPC

EPCs for the property are available on request.

PROPOSAL

Offers are sought in excess of 1,750,000 (One million seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT which reflects an initial yield of 7.7% rising to 8.2% in November 2019 after allowing for purchasers costs of 5.9% and assuming a capital value of 325 per sq ft for the residential accommodation.

More information from this agent

Nearest stations

  • Southend Central (0.1 mi)
  • Southend Victoria (0.2 mi)
  • Prittlewell (0.8 mi)
Distances are straight line measurements from centre of postcode

To view this property or request more details, contact:

Ayers & Cruiks, Southend - Commercial

86-88 Baxter Avenue, Southend-On-Sea, SS2 6HZ

01702 744038 Local call rate

How much will it cost me to call the number displayed on the site?

Standard geographic charges from landlines and mobiles apply and calls may be included in your telecom provider's call package.

Map & Street View

Nearest stations

  • Southend Central (0.1 mi)
  • Southend Victoria (0.2 mi)
  • Prittlewell (0.8 mi)
Distances are straight line measurements from centre of postcode

To view this property or request more details, contact:

Ayers & Cruiks, Southend - Commercial

86-88 Baxter Avenue, Southend-On-Sea, SS2 6HZ

01702 744038 Local call rate

How much will it cost me to call the number displayed on the site?

Standard geographic charges from landlines and mobiles apply and calls may be included in your telecom provider's call package.

Disclaimer - Property reference 191-193HighStreet. The information displayed about this property comprises a property advertisement. Rightmove.co.uk makes no warranty as to the accuracy or completeness of the advertisement or any linked or associated information, and Rightmove has no control over the content. This property advertisement does not constitute property particulars. The information is provided and maintained by Ayers & Cruiks, Southend - Commercial. Please contact the selling agent or developer directly to obtain any information which may be available under the terms of The Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 or the Home Report if in relation to a residential property in Scotland.

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