LONG LEASEHOLD RESTAURANT INVESTMENT FOR SALE NEW 15 YEAR FRI LEASE ON COMPLETION ESTABLISHED COVENANT 31-33 HIGH STREET SOUTHAMPTON SO14 2DF 31-33 HIGH STREET, SOUTHAMPTON SO14 2DF
Executive Summary Imposing period building extending to 2,140 sq m (23,035 sq ft). On completion the building will be let by means of a 15 year FRI lease to KL (Management) Ltd t/a Cosmo. The tenant will then carry out an extensive fitout to the existing premises and commence trading thereafter. The rent will be 120,000 per annum and will be reviewed on the basis of 5 yearly open market rent reviews OR in accordance with RPI increases (whichever is greater). Unexpired term of 15 years to a growing restaurant operator. The premises has a very attractive and spacious backyard with good potential to extend (STPP) Established leisure location in the prosperous city of Southampton. Extremely low capital value 700.80 psqm ( 65.11psf). Highly reversionary initial rental - 56.07 psqm ( 5.20psf). Price of 1,500,000 equating to approximate net initial yield of 7.5% after the deduction of the usual purchaser s costs of 5.8%.
Location Southampton is a major coastal city and sea port located on the South Coast of England within the county of Hampshire. The city is a major employment, retail and administration centre for the surrounding area with communication links including the M27 Motorway which passes the city to the north with a connection to the M3 Motorway. Surrounding towns include Winchester, 12 miles to the north and Portsmouth, 19 miles to the east, Salisbury, 22 miles to the northwest and Bournemouth, 32 miles to the southwest. High Street is an unclassified highway, aligned in a broadly north/south direction, with the subject property being situated on its eastern side, close to the junction with West Street. The main retail centre begins a few hundred metres to the north of the property at the junction of High Street and East Centre, West Quay, which has in excess of 800,000 sq ft of retail space. The immediate area is an established leisure destination with surrounding occupiers including public houses, hotels, restaurants, pubs and hot food takeaway premises. Situation The site is broadly rectangular in shape having frontages to High Street and Eastgate Street. Pedestrian and vehicular access is available from both streets, a small site courtyard is accessed from the front of the building whilst there is a large terraced area accessed from Eastgate Street. The site is level as other surrounding areas with the entire site being covered either by buildings or hard standing. The site area is approximately 14,501 sq ft (1,347.2 sq m) as measured from the ordnance survey extract. The site coverage of buildings is approximately 55%. Description The subject property is a former bank premises being two storeys in height with double level basement beneath the original structure to the front of the site. To the rear is a two storey extension. The original building is believed to date from the early to mid - 1800 s although its exact age could not be accurately determined. The extension is believed to have been constructed in the late 1970 s. The ground floor building comprises trading areas for a public house whilst the first floor comprises managers and staff accommodation, with the basements comprising ancillary storage.
The original building is of solid masonry construction with a stone façade incorporating high parapet concealing the main roof structure which has a tiled finish. Accommodation We are advised that the total gross internal area extends to 23,035 sq ft (2,139.97 sq m) comprising:- Area Sq m Sq ft Subbasement 335.81 3,615 Basement 43.91 4,563 Ground Floor 658.02 7,083 Mezzanine 99.53 1,071 First Floor 540.41 5,817 Roof 82.3 886 Total: 2,139.97 23,035 Tenure The property is held long leasehold from Oracle (Southampton) Ltd for a term of 999 years from 11 June 2007 at a peppercorn rent. Tenancy The tenancy will be by way of a 15 year FRI lease to KL (Management) Limited t/a Cosmo Restaurants. VAT We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price.
Covenant The tenant is KL (Management) Ltd trading as critically acclaimed Pan Asian restaurateurs Cosmo. A more detailed description of their operation is available at www.cosmo-restaurants.co.uk Full accounts are available on request. Year Turnover Profit before Taxation 2010 1,859,960 284,914 2011 1,758,032 94,154 Proposal We are seeking a price in the order of 1,500,000 (One Million Five Hundred Thousand Pounds) equating to a net initial yield of 7.5% after deduction of purchaser s costs of 5.8%. For further details please contact: Mark Short mark.short@argroup.co.uk Aitchison Raffety, 5 th Floor, 388-396 Oxford Street, London W1C 1JT, Tel: 020 7518 3440, DDI: 0207 518 3441 www.argroup.co.uk or John Kirwan john.kirwan@argroup.co.uk Aitchison Raffety, 5 th Floor, 388-396 Oxford Street, London W1C 1JT, Tel: 020 7518 3440, DDI: 0207 518 3448 www.argroup.co.uk IMPORTANT NOTICE Aitchison Raffety (AR) for themselves and for the vendors/lessors of this property, whose agents they are, give notice that these particulars are set out as a general guideline only for the guidance of prospective purchasers/lessees and do not constitute the whole, nor any part, of an offer or contract.