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  • For Sale
  • Offers Over £875,000
  • 3-5 High Street, Southend, Essex, SS1 1JE
  • Commercial Investment

Commercial Investment

| November 26, 2021

Executive Summary

  • Freehold commercial unit arranged over ground floor and basement let to Live With Intent Ltd t/a Energie Fitness.
  • Let on a 15-year lease from April 2018 with a current passing rent of £65,000 per annum, rising to £69,950 per annum in April 2023 and with a further fix uplift to £74,818 in April 2028.
  • Located on High Street, Southend centre approximately 0.2 miles to Southend Central railway station providing a direct service to London Fenchurch Street.
  • Offers are invited in excess of £875,000 subject to contract and exclusive of VAT. This represents an approximate gross yield of 8% based on the uplifted rent due in April 2023.

Location
The building is situated in a prominent position on the High Street in the heart of the popular seaside town of Southend-on-Sea at the junction with Royal Mews. Southend-on-Sea is home to over 174,000 residents (according to the 2011 Census) and receives millions of visitors each year. It is 40 miles east of London.

Southend Central railway station is 0.2 miles north of the property (providing a direct service to London Fenchurch Street in approximately 51 minutes). The main arterial road into the area is the A127 which links to the M25, A13 and A12. London Southend Airport is located 1.5 miles to the north of the town centre, providing regular flights to a number of European destinations. Southend-on-Sea boasts the largest leisure pier in the world.

Local occupiers include Costa Coffee, H &M, Marks and Spencer, Waterstone’s, McDonald’s, Boots, as well as a range of independent retailers and restaurants.

Please note all distances given are approximate only.

Description
The property is arranged over ground floor and basement and is currently used a gym. The ground floor is split into 2 units with one accessible from the High Street and the other accessed via Royal Mews. Sizes as follows;

Ground Floor Front Unit = 236.15 square metres (2,541 square feet)
Ground Floor Rear Unit = 45 square metres (484 square feet)
Basement = 262 square metres (2,819 square feet)

Total = 543 .15 square metres (5,844 square feet)

The upper parts have been sold off on a long lease. We understand that they have recently been converted into apartments.

Please note that the sizes provided are approximate only and all interested parties are advised to rely on their own inspection and survey.

Tenancy
The property is let on a 15-year lease from April 2018 with a current passing rent of £65,000 per annum, rising to £69,950 per annum in April 2023 and with a further fix uplift to £74,818 in April 2028. The tenant Live With Intent Ltd t/a Energie Fitness – www.energiefitness.com - has been in occupation via an assignment since August 2019. The landlord holds a £39,000 rent deposit. There is a tenant only break at end of year 10, subject to 6 months written notice. There are currently no rent arrears and rent statements can be provided to show an excellent payment record by the tenant throughout their occupation of the property.

Terms
Offers are invited in excess of £875,000 subject to contract and exclusive of VAT. This represents an approximate gross yield of 8% based on the uplifted rent due in April 2023 or an approximate capital value of £150 per square foot.

Tenure
The freehold interest is to be sold subject to the existing tenancy. The upper parts have been sold off on a 999 year lease from 2015 with a peppercorn ground rent.

VAT
The building is elected for VAT, although we expect the sale can be treated as a transfer of a going concern (TOGC). Interested parties are advised to seek appropriate professional advice on this point.

Data Room
A data room has been set up and access is available on request.

EPC
The property has an EPC rating of C.

Viewings
Viewings are strictly by appointment through sole agents Harston&Co.

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The Site and all the content on the Site is provided for use "as is" and "as available" and any reliance upon the same is at your sole risk. Whilst We take all reasonable care to ensure that the content on this Site is accurate, We cannot guarantee its accuracy and We reserve the right to change the content on this Site at any time. We make no representations or warranties of any kind with respect to this Site or the content of the Site, including any text, graphics, advertisements, links or other items. Further more, neither We nor any other contributor to this website make any representation or gives any warranty, condition, undertaking or term either expressed or implied as to the condition, quality, performance, accuracy, fitness for purpose, completeness or freedom from viruses of the content contained on the Site or that such content will be accurate, up to date, uninterrupted or error free.