freehold MIXED USE investment opportunity 227-231 North Street, Bedminster, Bristol, BS3 1JJ
Investment summary Freehold Ground floor let to the strong covenant of Loungers Limited Unexpired term of 12.5 years Residential uppers intact providing five flats let on AST s Ground floor sales area of 1,449 sq ft Total gross passing rent of 103,900 per annum Well located on the bustling North Street in the popular Bedminster area of Bristol Seeking offers in the region of 1,300,000 (One Million Three Hundred Thousand Pounds) for the freehold interest reflecting a net initial yield of 7.5% based on the gross income, after purchaser s costs of 5.99%.
Location Bristol is the 5th largest conurbation in the UK and is the regional and business capital of the South West. The city lies approximately 125 miles west of London, 40 miles east of Cardiff and 88 miles south of Birmingham. Bristol benefits from excellent transport links and provides direct access to 80% of the UK within 4.5 hours. The City benefits from two excellent universities namely the University of Bristol and University of the West of England providing the area with a large skilled labour pool. The City has developed a strong service sector and is recognised for its expertise across a broad range of industries including aerospace, defence, engineering, media and finance. Due to this, it has grown to become one of the largest employers outside of London in banking, finance, professional and insurance sectors. Bristol has an estimated population of 550,000 and an estimated catchment of 1.6 million residents. Bristol has the fifth highest GDP per capita in the UK and in 2015 was recognised as the European Green Capital. Road Bristol benefits from excellent motorway connections and is situated just 4 miles south of the M4 / M5 intersection providing fast access to London, Birmingham, Cardiff and the South West. The M32 provides a direct motorway connection between Bristol City Centre and Junction 19 of the M4. Rail Bristol has two major railway stations at Temple Meads and Bristol Parkway. Temple Meads and Parkway provide regular, high speed intercity services to major UK destinations with a journey time to London Paddington Station of 1 hour 40 mins. Air Bristol has one of the fastest growing airports in the UK. It currently serves over 100 destinations around the United Kingdom and handled over six million passengers in 2014. It is situated approximately 8 miles south west of the city centre via the A38.
Situation The proper ty is located on Nor th Street, a lively and vibrant road in Bedminster. Bedminster is a popular area located in the south of Bristol and is approximately 2 miles from Bristol Temple Meads station and 1 mile south of Bristol city centre. Bedminster also benefits from its own train stations, Bedminster and Parson Street, providing access to Temple Meads and north Bristol stations. Bedminster is a popular area for both students and young professionals to live and North Street in particular, is a bustling road full of independent shops, restaurants, bars and regular street markets. The local population is a successful mix of established workers, young professionals, families and students. Bristol City s Ashton Gate football ground is within close proximity. North Street links the A370 and the A38, providing access to the south. The A4 and M32 are within 3 miles and provide access to the wider motorway network. The nearby Tobacco Factory, a café and theatre, is often viewed as the focal point of North Street. Other occupiers on North Street include Souk Kitchen, Coffee 1, Parsons Bakery, Lloyds Pharmacy and many independent shops, pubs and restaurants. Plan is for illustrative purposes only.
Description The property comprises three combined shop units let on a single lease to Loungers Limited. The Loungers unit is largely open plan with three interconnecting seating areas providing approximately 84 covers with a bar and kitchen area and toilet facilities to the rear. The café is open from 9am to 11pm every day. This Lounge is the biggest of the Bristol Lounges and has a small outside seating area to the rear. The upper floors are residential lets and provide: two one bedroom flats; one three bedroom flat, one four bedroom flat and a studio flat at ground floor level. There are four car parking spaces to the rear of the building for use by the residential flats on a first come first served basis. FLAT NUMBER NO. OF BEDS TENANCY CLASSIFICATION RENT PER MONTH 227a 1 Professional 775 Accommodation The ground floor restaurant provides the following approximate Gross Internal Floor Areas. The residential accommodation has not been measured. Description Area (sq ft) Area (sq m) Ground Floor Sales 1,449.4 134.6 Ancillary 389.6 36.2 Ground Floor ITZA 1,220 Total 1,839 170.8 227b 1 Professional 755 229a 4 Student 1,840 231a 3 Student 1,380 231b 1 Professional 575 TOTAL 5,325
Tenure Freehold. Tenancy The ground floor of the property is let to Loungers Limited on a 20 year FRI lease from 28th January 2010 giving an unexpired lease term of approximately 12.5 years. The rent passing is 40,000 per annum with upward only, open market rent reviews in 2019 and 2024. This reflects a Zone A rent of 32.80, assuming A/10 on the ancillary areas. The residential accommodation is let to a mixture of young professionals and students. The student lets (299a & 231a) are on 12 month Assured Shorthold Tenancy Agreements (AST), from approximately 1st July - 30th June. The professional lets (227a, 227b, 231b) are on 6 month AST s rolling into a monthly Tenancy at Will. The total rent for the residential element is 63,900 per annum and therefore the total gross income for the whole property is 103,900 per annum. Covenant Loungers was founded in 2002 by Bristol based friends, Dave Reid, Alex Reilley and Jake Bishop. This North Street Loungers was the site of the original Lounge. Bristol now has six Lounges and the concept is a relaxed, all day café bar which is open all day, every day of the week. In January 2017, a majority stake of the business was sold to Lion Capital in a transaction that valued the business at circa 137m. Loungers has opened 20 sites a year since 2014. The 100th site opened in May 2017 with a target of reaching 200 sites within the next four to five years. For more information please visit: www.thelounges.co.uk Headline financial details for Loungers Limited for the past three years are outlined below: year to date turnover pre-tax profit shareholder s funds 24/04/2016 68,474,732 1,206,462 5,952,197 26/04/2015 48,015,329 1,700,804 4,733,525 27/04/2014 33,730,594 1,276,477 3,290,594
Further Information & Inspection arrangements EPC Energy Performance Certificates can be provided on request. VAT The property has been elected for VAT and therefore it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). For further information or to arrange an inspection please contact the sole agents: Pembroke House 15 Pembroke Rd Bristol BS8 3BA PROPOSAL Seeking offers in the region of 1,300,000 (One Million Three Hundred Thousand Pounds) for the freehold interest reflecting a net initial yield of 7.5% based on the gross income, after purchaser s costs of 5.99%. Lucy Costain 0117 317 1108 Oli Stretton 0117 317 1121 Important: Alder King for themselves and for the vendors of this property, whose agents they are, give notice that: 1. The particulars contained herein are for guidance purposes only and do not constitute either part or whole of an offer or contract. 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation 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, and must satisfy themselves as to their correctness. 3. No person in the employment of Alder King has any authority to make or give any representations or warranties whatsoever in relation to these properties. 4. No responsibility can be accepted for expenses incurred by intending purchasers in inspecting and considering the properties which are offered. Under the Control of Asbestos Regulations 2006 (CAR 2006), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAR 2006 is an offence and could adversely affect the value of the property. The detection and management of asbestos and asbestos related compounds is beyond the scope of our expertise and does not form part of the services that we have agreed to provide in respect of the property. Accordingly: 1. Alder King do not accept any responsibility for, and you should not place any reliance on us in respect of, the detection and/or management of any asbestos and/or asbestos related compounds contained in the property. 2. We strongly recommend that you obtain advice from specialist environmental consultants in respect of asbestos related issues. July 2017, Subject to contract & exclusive of VAT. Designed and produced by www.kubiakcreative.com 172650 07/17