PRIME FREEHOLD RETAIL INVESTMENT
14 VICTORIA STREET, BLACKPOOL FY1 4RW
INVESTMENT SUMMARY
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Prime Location
Let until 2021 with no breaks
Low, rebased rent
Growth potential
Current rent £33,000 per annum
Guide Price £350,000
Net Initial yield 9.00%
BLACKPOOL
Blackpool is a major tourist destination and conference centre. It is the most popular
seaside resort in the UK with some 17 million visits per year and hosts an array of
attractions including the Blackpool Tower, Pleasure Beach, Winter Gardens and the
famous Illuminations.
The resident population is 140,000 persons with over 500,000 living within 10 miles,
making the town the 14th largest in Britain.
The town is located 17 miles West of Preston, 27 miles north of Liverpool and 41 miles
north-west of Manchester.
There are well established transport links connecting Blackpool with the rest of the
region and easy access to the M55 and national motorway network
Blackpool is well-connected to the national railway network with direct services from
Blackpool to Manchester and Liverpool. Virgin Trains have a high speed service
direct to London Euston with a journey time of 2hrs 45 mins.
Nearest International Airports are Liverpool (27 miles) and Manchester (41 miles).
14 VICTORIA STREET, BLACKPOOL FY1 4RW
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LOCATION
The subject premises are situated in a prominent location on the north side of
Victoria Street, within the central Blackpool shopping core. The shop adjoins
Vodafone and Ann Summers close to branches of Top Shop, Miss Selfridge,
Boots, Prezzo and Marks & Spencer.
Prezzo and Ann Summers have both recently taken shops in the street.
The location is indicated on the attached Goad plan extract..
BRIEF DESCRIPTION
The. premises are arranged over ground and first floor levels within a
modern building featuring attractive brick elevations.
The ground floor provides a large open trading area with a rear section
fitted with changing rooms.
The first floor provides storage and ancillary space.
14 VICTORIA STREET, BLACKPOOL FY1 4RW
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DIMENSIONS
The property has the following approximate dimensions and net floor areas Ground Floor Sales
Ground Floor Ancillary
First Floor Storage
ITZA
1,117 sq.ft.
109.34 m²
334 sq.ft.
31.03 m²
1,196 sq.ft.
111.11 m²
877 Units
Gross Frontage
21’ 02”
6.45 m
Net Window Frontage
15’ 10”
4.83 m
COMMENT ON RENT
The shop was let on the open market in January 2016. We devalue
the passing rent to a Zone A rate of £32.80 per sq.ft. with £2.50 per
sq.ft. on the first floor and £3.50 per sq.ft. on the ground floor ancillary.
In common with most UK shopping centres, Blackpool has been hit by
recession and rents have fallen back. Victoria Street been through a
difficult period but key retailers such as Marks & Spencer, Boots and
Top Shop are still there and have now been joined by the likes of
Prezzo opposite and Ann Summers next door.
The Ann Summers rent devalues to a Zone A rate approaching £50
per sq.ft. and Prezzo to around £38 per sq.ft. Both these figures are
usefully ahead of the subject property.
TENURE
The property is freehold.
The entire premises are let to Instinct FBZA Ltd on a full repairing and
insuring lease for a term of 5 years from 21st January 2016 expiring on 20th
January 2021 at a rent of £33,000 per annum. There are no breaks but there
is a schedule of Condition.
The tenant has a rent-free period and the vendor will cover any remaining
period for the purchaser.
TENANT COVENANT
BUSINESS RATES
The tenant pays business rates on the property. The current rateable
value is £88,000 – a huge amount compared to rental value but a
common problem in Blackpool. Such high rates have a dampening
affect on the rents that tenants can afford.
However, change is coming with the 2017 rates revaluation. The
2017 draft rateable valuation has been set at £44,750 for the
property, almost 50% lower than the current figure.
INSTINCT FBZA LTD (09143538) is a Private Limited Company incorporated
on 23rd July 2014. They retail menswear under the trading name UIKO.
Being a new private company, little useful financial information is publicly
available so the tenant has provided a three month rent deposit of £8,250
which will be passed to the purchaser.
14 VICTORIA STREET, BLACKPOOL FY1 4RW
EPC
Certificate and Report are available on request.
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14 VICTORIA STREET, BLACKPOOL FY1 4RW
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PRIME FREEHOLD RETAIL INVESTMENT
14 VICTORIA STREET, BLACKPOOL FY1 4RW
PROPOSAL
For the freehold interest subject to the letting, we seek a price of £350,000 subject to contract to
show a net initial yield of 9.0% with allowance for costs at 3.8%
This is an opportunity to purchase a prime shop at a very attractive initial yield. The street is
exhibiting encouraging signs of recovery with recent transactions including Prezzo and Ann
Summers. With the substantial reduction in rates liability, prospects for growth appear good.
The property is registered for VAT and it is expected the sale will be by way of a TOGC.
FURTHER INFORMATION
We can provide copy leases and floor plans. For further information please contact:
Stephen Powell
020 7318 5751
[email protected]
John Loveday
020 7318 5753
[email protected]
Smith Price LLP | 5/7 John Princes Street | London W1G 0JN | 020 7409 2100
SUBJECT TO CONTRACT
MISREPRESENTATION ACT
These particulars are intended only as a guide to prospective purchasers to enable them to
decide whether to make further inquiries with a view to taking up negotiations but they are
otherwise not intended to be relied upon in any way or for any purpose whatever and
accordingly neither their accuracy nor the continued availability of the property is in any way
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vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP
have any authority to make or give any representation or warranty whatsoever as regards the
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whether oral or in writing, such information or expression of opinion must be treated as given
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and, except where expressly otherwise stated, offers will be considered only subject to
contract.
Smith Price LLP is a limited liability partnership registered in England and Wales.
Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN