Neighbourhood Retail Investment
Popular residential location
26 retail units let to 22 tenants
High Yielding – 11.74% NIY
Opportunities to enhance value
£1,050,000, subject to contract
www.singerviellesales.com
134 - 199 Scargreen Avenue & 245 - 255 Utting
Avenue East, Liverpool L11 1DE
Liverpool is the sixth largest city in the United Kingdom and the principal commercial centre for the Merseyside conurbation. The city serves an Urban Area Population of
approximately 470,000 extending to over 1.5 million within 20 km (12.5 miles).
The City sits on the east coast of the North West of England, 56km (35 miles) west of Manchester and accessed via the M62.
Liverpool is well connected to the main rail network with connections to London between 2hrs 15 minutes to 3 hours. Liverpool John Lennon Airport is some 9 miles along
the River Mersey from the City Centre, providing national and international destinations.
The investment is located in the Norris Green area of Liverpool, located approximately 6km (4 miles) to the east of the city centre.
Norris Green is a large residential neighbourhood of Liverpool with its own population of c.18,000. The majority of the area was developed in the 1920’s and is bordered
by Walton to the west, Fazakerley to the north, Croxteth to the north east and east, West Derby to the south and Clubmoor to the south-west.
The subject property is located in the heart of Norris Green, on Scargreen Avenue and Uttington Avenue East, the latter being the main thoroughfare through the ward,
and one of the main bus routes into central Liverpool.
The subject property comprises two retail parades on either side of the road,
with parking directly outside the units and a large extended pedestrian kerb.
The parades were constructed in the 1930’s with brick walls, tiled roofs and
concrete floors. Both parades are predominantly ground floor lock up shops
with sold off residential uppers. One two bed maisonette is retained (156
Scargreen Avenue.)
Six of the units have ancillary accommodation on the first floor, with 245 Utting
Avenue. East benefiting from a more considerable first floor, again currently
used for storage. None of the upper parts are presently rentalised.
We understand the property has a total floor area of 18,255 sq ft (1,696 sq m)
ITZA on the ground floor and 3,648 sq ft (339 sq m). The property is split into
26 separate units, let to 22 separate commercial tenants and 1 residential
tenant. Two tenants occupy double units.
The units facing Utting Avenue East have a curved frontage following round
from Scargreen Avenue.
We believe the unit sizes range from 420 sq ft (39 sq m) to double units of
1970 sq ft (183 sq m). Please refer to the Tenancy Schedule for a full
breakdown of floor areas.
We estimate the site area to be approximately 0.36 acres (0.15 Hectares).
The site is held on a long leasehold title from
Liverpool City Council for a term of 999 years
from 2nd March 1991 at a peppercorn rent.
The property comprises 26 units let to 22
tenants and 1 residential let. In total the
parades produce a total current income of
£130,380 per annum and are paid quarterly
in advance.
There are currently two voids in the parade,
175 & 199 Scargreen Avenue.
At present, rents are currently charged at
£100 per week, per unit + VAT irrespective
of the unit size. There have been no rent
reviews since 2004 and therefore a more
strategic rent policy run on a per square foot
basis could significantly increase the rental
income.
Based on the existing rents, the ERV is
£141,480 but we believe that a number of
the rents are significantly below where they
should be.
Rents range from £5.61 psf (Unit 160) to
£12.38 (unit 253) and are calculated solely
on a fixed price of £100 per week per unit.
SEQUOIA PROPERTIES LTD. JANUARY 2015
NUMBER
SHOP
SCARGREEN
AVENUE
134
138
144
146
152
154
160
162
163
167
168
170
173
175
181
183
189
191
197
199
156
UTTING
AVENUE
EAST
245
247
249
251
253
255
TENANTS NAME
MISS. L. LAVIN
ANFIELD CITIZENS ADVICE BUREAU
M.COOK BOOKMAKERS
M.COOK BOOKMAKERS
THARMALINGAM t/a LOCAL ZONE
THARMALINGAM t/a LOCAL ZONE
PEI HUA t/a TAKEAWAY
MR YAFAI
MR CAVANAGH t/a BARBER SHOP
MRS P DEE t/a PAT-A-DOG
DISCOUNT FURNISHINGS
NASAR MORADI t/a DE-PAN-EXPRESS
MRS. P. JOHNSON *
EMPTY 16/04/14
LITTLE DINER
VIRGINIA CHICKEN
MRS. S.SHEAD *
MR S NEWPORT t/a CITI-PARTS
PJ REPAIRS
EMPTY 28/09/14
RESIDENTIAL FLAT
MR.SOGHANLOU t/a Pizza Avenue
MISS H. CUMMINGS t/a Glo-4-U
MRS L PERRY
MISS YANG t/a JUMBO
MR SLATER *
MR.SHARRIFE KATAYEF
TERM
YEARS
COMMENCEMENT DATE
RENT
ACHIEVED
NEXT
P.A. (incl
REVIEW
VAT)
5200
Oct-15
5200 Hold. Ov
5200
Jan-15
5200
Jan-15
5200
Aug-16
5200
Aug-16
5200
Jan-16
5200
Feb-17
5200
Jan-16
5200
Dec-17
5200
Jul-15
5200
Apr-16
5200
Apr-17
6
10
25
25
20
20
20
27
6
6
6
20
6
01-Oct-12
01-Mar-98
09-Jan-10
09-Jan-10
04-Aug-10
04-Aug-10
08-Jan-98
02-Feb-05
01-Jan-13
28-Dec-14
01-Jul-12
01-Apr-10
01-Apr-11
6
20
6
6
6
01-Jan-15
01-Oct-14
28-Jun-07
01-Apr-14
01-Sep-13
5200
5200
5200
5200
5200
Jan-18
Oct-17
Hold. Ov
Apr-17
Sep-16
S/HOLD
01-Apr-13
3500
Rolling
20
6
20
11
20
21
03-Sep-07
01-Jan-15
02-Jun-97
28-Mar-08
01-Jul-12
01-Jan-08
7280
5200
5200
5200
5200
5200
130380
Sep-16
Jan-18
Jun-15
Mar-17
Jul-15
Jan-17
Total Rent =
LEASE EXPIRY
Oct-18
1 yr. roll
Jan-35
Jan-35
Aug-30
Aug-30
Jan-18
Feb-32
Jan-19
Dec-20
Jul-18
Apr-30
Apr-17
Jan-21
Oct-34
1 yr. roll
Apr-20
Sep-19
Sep-27
Jan-21
Jun-17
Mar-19
Jul-32
Mar-29
Total Floor Area =
SIZE (ITZA)
M²
42.5
99.5
183
Double Unit
182
Double Unit
86
79.5
55
56.5
63
51.5
55
457
1072
1970
55.5
55.5
71
55.5
53
55.5
51.3
67.5
597
597
764
597
570
597
552
727
57.5
39.3
39.5
45
39
57.5
619
423
425
484
420
619
18255
* = Rent in Arrears
GF & FF total area =21,902 sq ft
ERV on current rents =
£141,480
SIZE
firstfloor firstfloor
(ITZA)
sq m
sq ft
ft²
1959
926
856
592
608
678
554
592
65.5
704
65.5
704
93
1001
27.5
35.5
52
339
296
382
560
3647
We are instructed by our client to invite offers in the region of
£1,050,000 (One Million and Fifty Thousand Pounds), subject
to contract.
This reflects a Net Initial Yield of 11.74%
The property is registered for VAT, and VAT will be payable
on the sale. It is assumed the matter will be dealt with via a
TOGC.
From speaking to local agents, we understand that rents for
secondary retail units of this nature are currently in the region
of £8 - £10 per sq ft on ground floor sales, with a 50%
discount for second floor storage.
The current average rent is £7.75 per sq ft (not reviewed
since pre 2004) based on the ground floor and none on the
storage elements. Using an average of £9 per sq ft on the
ground floor and £4.50 per sq ft on the storage areas –
potential ERV =
GF sales = £164,295
FF Storage = £16,412 TOTAL = £180,707 per annum.
This gives a potential reversionary yield of 16.27%
1. High Yielding Retail Investment
2. Virtual Freehold
3. Multi let to a variety of covenants
4. Significant asset management opportunities
5. Net Initial Yield 11.74%
6. Potential reversionary yield of 16% +
Alititude Investments
20 Southernhay West,
Exeter. EX1 1PR
Tel: 01392 660 000
Vendors Solicitor
Stephens & Scown
Curzon House, Southernhay West,
Exeter EX1 1RS
George Turnbull
[email protected]
M: 07815 867 807
Tel: 01392 429201
Nigel Coveney [email protected]
Misrepresentation Act 1967
Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:
1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract
2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of
them.
3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.
4. All maps are for identification purposes only and should not be relied upon for accuracy.
5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.
Finance Act 1989
Unless otherwise stated, all prices and rents are quoted exclusive of VAT.
Property Misdescriptions Act 1991
These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.
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