Secure Retail Investment in Affluent and Dominant Market Town
15 Butter Market | Bury St. Edmunds | IP33 1DB
subject to contract
Let to TUI UK Retail Limited – Shareholders’ Funds £193m. TUI AG Group, market cap of £4.9 bn.
Located in affluent market town
Tenant recently extended their occupation at a rebased rent
Tenant has been in occupation for over 25 years
100% prime retailing pitch
£380,000, subject to contact
8.25% net initial yield
Bury St Edmunds is an historic and affluent market town forming the main commercial centre for West Suffolk. The town is located approximately 82 miles (132 km) north east of Central London, 26 miles (42.8 km) east of Cambridge and 42 miles (67.6 km) south west of Norwich.
The town has good road communications being located on the A14 dual carriageway, which in turn provides direct access to the M11 and A1 (M) and to the national motorway network. The town is served by Bury St Edmunds railway station, with the fastest journey time to London Liverpool Street being approximately 1.5 hours.
In addition, Bury St Edmunds is approximately 65 miles (104.6 km) north east of Luton airport and 65 miles (104.6 km) north of Southend airport.
Bury St Edmunds is an affluent sub-regional shopping destination with a catchment population of 1,400,000 people within a one hour drive time. It is a dominant retail centre for its catchment population and benefits from low competition from competing retail centres. (Source www.westsuffolk.gov.uk).
The property occupies a 100% prime retailing pitch on Butter Market which is the towns’ principal retailing thoroughfare and is adjacent to Market Square. Nearby occupiers include Holland & Barratt, Marks & Spencer, The Body Shop, JD Sports, EE, Specsavers, Superdrug and McDonald’s.
Butter Market benefits from a vibrant market every Wednesday and Saturday, resulting in a high level of footfall.
The property comprises a retail unit arranged over ground, first and second floors. The ground floor comprises a sales area and the upper floors comprises staff/ancillary accommodation.
The property has been fitted out by Tui in their usual corporate style. This branch provides a full range of services.
The property has been measured by BKR Floor Plans and provides the following Net Internal Areas:
|Net Frontage||15'5"||4.70 m|
|Gross Frontage||17'7"||5.36 m|
|Sq Ft||Sq M|
|Ground Floor Total||547||50.82|
The measured survey report is available to download and will be re-addressed to a purchaser at a cost of £425 + VAT.
The property is Grade II Listed and is located within a conservation area.
The property is let TUI UK Retail Limited on a full repairing and insuring basis for a term of 5 years from 28th August 2019, expiring 27th August 2024. There is a tenant break option on 27th August 2022, subject to 6 months prior written notice. Should the tenant exercise the break clause a break penalty will be payable to the landlord in the sum of £8,125.
The current passing rent is £32,500 per annum which based on our analysis equates to £75 Zone A.
The tenant’s previous lease was for a term of 25 years. At the lease renewal in August 2019, the rent was rebased from £49,000 per annum to £32,500 per annum and the tenant received a 3 month rent free period from 28th August 2019. The vendor will ‘top-up’ the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
Tui UK Retail Limited has reported the following figures:
|30th September 2018||30th September 2017|
|Pre-Tax Profits (Loss)||(£15,000,000)||£1,000,000|
TUI UK Retail Ltd is a subsidiary of the TUI AG Group, a multi-national travel company dating back to 1923. TUI have been voted the ‘World’s Best Leisure Airline’ at the World Airline Awards for five consecutive years and operate from over 600 travel agencies in the UK. The TUI AG Group is listed on the London Stock Exchange in the FTSE 100 Index and have a market cap of £4.9 bn.
In 2018 TUI AG Group reported a turnover of €19.5 bn, and an underlying EBITA of €1,147 m.
For further information visit www.tuigroup.com.
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in excess of £380,000 (Three Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT for our clients’ freehold interest. A purchase at this level would reflect a net initial yield of 8.25%, assuming purchasers’ costs of 4.04%.
Please note that a purchaser will be re-charged the cost of searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £2,500 + VAT.
An opportunity to acquire a freehold retail investment in an affluent market town;
Let to TUI Retail Limited (Shareholders’ Funds £193m);
Tenant recently renewed their lease at a rebased rent;
Tenant has been in occupation for over 25 years;
Situated in a 100% prime retailing pitch;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size to an investor.
Data Room and clicktopurchase®
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|Joelson Law||+44 (0) 207 580 5721|