Kings Arcade, King Street, Lancaster, Lancashire LA1 1LE

Online Auction 9th - 10th December 2025

Fully Let Mixed Use Investment Property – Currently Producing £103,018 pa – ERV £119,568 pa

This is an exceptional opportunity to acquire a fully let mixed-use investment property, comprising an independent retail arcade of 10 ground floor shops with upper floor ancillary accommodation and 3 student flats providing 17 bedrooms, ideally located in a prominent location in Lancaster City Centre.

The property is situated on the corner of Middle Street and King Street, the latter being one of Lancaster’s prime commercial thoroughfares. The retail arcade is accessed via a decorative archway, leading to a vibrant mix of retail units of varying sizes and uses with a range of goods and services from an award winning gelato to a destination sports specialist, as well as a jeweller, discerning menswear, retro record shop and health specialists, amongst others. Some tenants have been in occupation for well over 10 years.

Front-facing retail units feature prominent glazed frontages, providing excellent visibility and footfall, while additional retail spaces are located within the arcade, offering flexibility for a range of occupiers and business types.
To the rear of the precinct secure gated access is offered to the student accommodation. Currently let and managed through a specialist letting agent, IPM Ltd. The accommodation consists of 3 flats providing 6, 7 and 4 bedroom units respectively, which have largely been
refurbished over the last few years to include redecoration, flooring, new secondary double glazing to the front elevation and replacement furnishings/white goods as required.

Further details and photographs of the student accommodation can be accessed via the Escape
Campus website on _https_escapecampus.co.uk/?s=kings+arcade

Tenure: Freehold
Title number: LA66665
Length of Lease/Term:
Ground Rent : £
Service Charge: £
Council Tax Band :
Local Authority: Lancaster

Finance is available on this lot. For a decision-in-principle visit togethermoney.com/amydip/

INVESTMENT DETAILS The current total rental income is £103,518 per annum. The 10 shops are held on effectively fully repairing and insuring leases producing £58,800 per annum. In addition, a service charge is collected from the shop tenants towards the external maintenance.

Eight out of the 10 shop leases were renewed in 2024 or 2025 for a term of 3 to 5 years and only one lease incorporates a future break option. Further tenancy details contained within the legal pack.

The 3 flats are fully registered HMO’s (Houses in Multiple Occupation) and provide a total of 17 bedrooms, licences by Lancaster City Council (renewal due March 2029). There has been a regular annual agreement in place to let the 3 flats to IPM Ltd for many years. IPM Ltd in turn sublet each bedroom to the individual students and also organise minor internal repairs as well as health and safety compliance. Total rental income from the flats has generally been in excess of £55,000 p.a. Less for current year due to late marketing for unit 11 in 25/26 year.

The tenancy details (in brief) are summarised below (with additional information available in the legal pack).
Retail Units: Unit 1 – 3 years from July 2024 - £9,250 pa
Unit 2 – 3 years from September 2024 - £3,250 pa
Unit 3 – 5 years from August 2024 - £9,000 pa
Unit 4 – 3 years from August 2024 - £3,500 pa
Unit 5 – 5 years from September 2024 - £6,000 pa
Unit 6 – 5 years from November 2025 - £5,000 pa
Unit 7 – 3 years from September 2025 - £4,750 pa
Unit 8 – 5 years from April 2022 - £4,750 pa
Unit 9 - 5 years from December 2023 - £4,000 pa
Unit 10 - 5 years from September 2024 - £9,300 pa (increasing to £10,500 pa yrs 3-5)
Total Rental Income – Retails Units = £58,800 pa
(increasing to £60,000 pa September2026)
Residential: Unit 11 (6 bed flat) – 48 weeks from September 2025 - £6,174 (only 3 students in occ. 25/26 – ERV £21,024)
Unit 12 (7 bed flat) - £24,528
Unit 13 (4 bed flat) - £14,016
Total Rental Income Residential Units - £44,718 pa
(ERV when fully let £59,568 pa)

Current Rental - £103,518 pa
ERV - £119,568 pa
LOCATION The property is located in the heart of Lancaster, on the corner of King Street and Middle Street, close to national multiples such as Tesco, Primark and J D Wetherspoon, and within walking distance of a mix of retail and residential properties, most notably the Market Gate Shopping Centre. Lancaster is a thriving university city, home to two major campuses — Lancaster University, consistently ranked among the top 10 universities in the UK, and the University of Cumbria’s Lancaster Campus, situated close to the city centre.

Nearby attractions include Lancaster Castle and Lancaster Cathedral. Lancaster is roughly equidistant between Preston, Blackpool and Kendal in the Lake District (20 – 25 miles away) and is just over 50 miles north of Manchester. The property benefits from excellent transport connections, with Lancaster’s main railway station close by and very easy access to Junctions 33 and 34 of the M6 motorway.

The city is a strategically significant commercial centre, which together with its neighbouring towns, provides a substantial catchment population of approximately 145,000 residents.
IMPORTANT INFORMATION Buying at auction is a contractual commitment, you are legally obliged to buy the lot on the terms of the sale memorandum at the price you bid. If you are the successful bidder, you are required to pay the deposit and auction fees immediately. As agent for the seller, we treat any failure to satisfy your obligations as your repudiation of the contract and the seller may then have a claim against you for breach of contract. You must not bid unless you wish to be bound by the common conditions of auction.
ANTI-MONEY LAUNDERING REGULATIONS In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser. Every effort has been made to confirm the accuracy of the lot details including any defect in the title both with the vendor and their solicitor. Auction House will not be held responsible for any failure to disclose any such defects.

Any purchasers choosing to buy without viewing in person are doing so at their own risk and acknowledge that the auctioneer will not be held responsible for any issues that may arise due to them being unintentionally missed from the video or sales particulars.

Please refer to legal pack for additional fees and the Auction Information document for guidance prior to bidding.

Tenure: Freehold

EPC Rating: Units 1,2,4,5,8&9 = C, Units 3,7,10 & Flats 12&13 = D, Unit 6 & Flat 11 = E

Administration Fee: 2.5% inc VAT of the purchase price, subject to a minimum of £2500 inc VAT, payable on exchange of contracts.

Disbursements: Please see the legal pack for any disbursements listed that may become payable by the purchaser on completion.