Coronavirus Act 2020
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82. This is no reflection upon the tenants’ ability to meet their rental obligations but an understandable protection for a purchaser. The guarantee is to end the earlier of the end of the rent moratorium, or a period of 6 months, whichever is the sooner.
Freehold retail investment opportunity
Potential to significantly increase the massing on the upper floors, subject to planning
Let to Specsavers Optical Superstores Limited
Secure income (Net Assets £86 million)
£55,000 per annum
Prominent retailing pitch in the heart of the town centre
Let until August 2025
£650,000, subject to contract
8.00% Net Initial Yield
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82
Located off the south coast of England, the Isle of Wight is separated from the mainland by the Solent with Portsmouth the nearest large town being 21 km (13 miles) to the north east. The island can be easily accessed with up to 200 ferry crossings a day operating from Portsmouth, Southampton and Lymington. There are excellent rail connections to all the major ferry ports, providing fast access to the Isle of Wight from across the UK. Travel time from London stations to most of the ports is around two hours. Flights from Heathrow and Gatwick airports serve The Isle of Wight, along with regional flights from Bournemouth and Southampton.
The population on the Isle of Wight increases significantly during the summer months as a result of an influx of tourists. Newport is the principal town on the Isle of Wight and lies at the heart of the island, often referred to as its capital. From the town centre, the A3020 provides access to the port of Cowes to the north if the island whilst the A3054 provides access to the ports of Ryde and Fishbourne (the main car ferry) to the north east of the island.
The historic town of Newport is the main retail location on the Isle of Wight. The subject property occupies a prominent retailing pitch on High Street, in the heart of the town centre. Surrounding occupiers include wh Smith (opposite), jd Sports, Vodafone, B&M, Poundland and The Body Shop.
The property comprises a retail unit on ground floor with additional customer accommodation and ancillary areas on first floor, plus ancillary accommodation on second and third floors.
The unit has been fitted out by the tenant to their usual corporate style. This branch provides a full range of services including eye tests, audiology services, children’s eye care, contact lense services, eye health services and home eye tests.
As can be seen from the images within the photo gallery, the ground floor is far deeper than the upper floors. In addition, the adjoining properties include upper floor areas of residential and ancillary uses, indicating the ability to re-configure the property and increase the massing, subject to appropriate consents.
The property has been measured by bkr Floor Plans and provides the following Net Internal Areas:
Gross Frontage 6.68 m 21 ft 11 inch
Net Frontage 6.22 m 20 ft 5 inch
Sq M Sq Ft
Zone A 35.21 379
Zone B 34.65 373
Zone C 35.77 385
Remainder 105.44 1,135
Total Ground Floor 211.07 2,272
First Floor Ancillary 49.61 534
Second Floor Ancillary 43.48 468
Third Floor Ancillary 10.50 113
Total Net Internal Area 314.65 3,387
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £425 + VAT.
The entire property is let on a full repairing and insuring lease to Specsavers Optical Superstores Limited (t/a Specsavers) for a term of 10 years from 20th August 2015, expiring on 19th August 2025.
The current passing rent is £55,000 per annum, equating to £60 Zone A. This is based upon £7.50 per sq ft on the first floor, £5.00 per sq ft on the second floor and £2.00 per sq ft on the third floor.
Specsavers are liable for quarterly rent payments under the terms of the lease of £13,750 + VAT, hence £16,500.
The tenant has been making monthly payments since March at the rate of £5,500 per month. Hence, receipts from Specsavers during 2020 have been as follows:
Date Rent Paid Amount inc VAT
25 March £5,500 (rent monthly)
24 June £0
27 July £5,500 (rent monthly)
24 August £5,500 (rent monthly)
29 September £5,500 (rent monthly)
22 October £5,500 (rent monthly)
30 October £5,500 (rent monthly)
12 November £5,500 (rent monthly)
27 November £5,500 (rent monthly)
10 December £5,500 (rent monthly)
24 December £5,500 (rent monthly)
There are arrears of £11,000 (2 months’ rent) as at 6/01/2021, re: December quarter rent invoiced. We include within the legal package a full payment history including those relating to insurance premiums.
Specsavers Optical Superstores Limited (Co. No. 01721624) has reported the following figures:
29th February 2020 29th February 2019
Turnover £696,410,000 £667,158,000
Pre-Tax Profits £20,929,000 £14,066,000
Net Assets £86,047,000 £69,065,000
Established in 1983, the family-run business provides optometry, audiology and other healthcare services for its customers. The company can be found in the UK, Ireland, Netherlands, Norway, Sweden, Denmark, Finland, Spain, Australia and New Zealand, employing over 32,500 people who work across 1,978 stores, as well as in support offices and throughout the supply chain ().
The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (togc).
We are instructed to seek offers in the region of £650,000 (Six Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.00%, assuming standard purchaser’s costs of 5.18%.
Please note that a purchaser will be re-charged the costs of searches and surveys which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
An opportunity to acquire a freehold retail investment with development potential;
The property occupies a prominent position in the heart of Newport town centre;
Let to the strong covenant of Specsavers Optical Superstores Limited;
Potential to significantly increase the massing on the upper floors, subject to planning;
A purchase at the asking price will provide an investor with an attractive net initial yield of 8.00%;
Attractive lot size for an investor;
The property is sold with the benefit of a rent guarantee from the vendor to ensure an investor has no issues receiving income in light of the Coronavirus Act 2020 Part 1 Section 82.
For full details please visit our website or view PDF brochure below