Retail premises for sale in Fargate, Sheffield S1

£3,850,000 (£199.68/sq. ft)
Retail premises for sale 19,281 sq. ft*
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Property description

Summary
100% prime retailing pitch

Highly Secure income let to wh Smith Retail Holdings Ltd (Net Worth £614 m)

Over 6 years unexpired – no breaks

Extremely busy store trading over 3 floors with 50 foot frontage

Freehold

Tenant has recently completed a c.£1.5m internal and external refurbishment

Potential future redevelopment of the upper parts, subject to planning

Potential to extend the third floor and add another storey, subject to planning

The only WHSmith in Sheffield City Centre

£3,850,000, subject to contract

9.40% net initial yield

Location
Sheffield is England’s fifth largest city, third largest metropolitan centre and the main commercial, administrative and retailing centre in South Yorkshire. The city is located 150 miles (240 km) north of London, 38 miles (61 km) east of Manchester, 35 miles (56 km) south of Leeds and 22 miles (35 km) south west of Doncaster.

The city of Sheffield is strategically located close to the geographical centre of the UK. The city is served well by the national motorway network, with junctions 31 to 34 of the M1 Motorway on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to key towns: To the north (Leeds, Barnsley and Wakefield) and to the south (Nottingham, Milton Keynes and London). In addition, the M18 Motorway, accessed at Junction 32 of the M1, provides direct access to the Humberside Ports. Furthermore, the A57 and M67 provide access to Manchester, approximately 38 miles (61 km) to the west.

Sheffield railway station provides direct services to many UK cities with the following approximate fastest journey times: London St Pancras 122 mins, Leeds 40 mins and Manchester 51 mins. The city benefits from a light railway service, Supertram and local bus network, making the city one of the least congested in the United Kingdom.

Sheffield will also be one of the key stations on the HS2 Northern Extension which encompasses Leeds, Manchester and an East Midlands hub between Nottingham and Derby. Manchester, East Midlands and Leeds-Bradford airports are located 47 miles (76 km), 53 miles (85 km) and 45 miles (72 km) away respectively. All provide a range of national, European and international services.

Sheffield has a strong financial presence with companies such as McLaren, Jaywing, Boeing, Sky Betting and Gaming, all recently making significant investments into the city. There is also a large public sector presence within Departments of Education & Skills, Work & Pensions and the Home Office having strong representations.

The City is home to two distinguished universities; The University of Sheffield and Sheffield Hallam University, with a combined student population of 60,000.

Sheffield is a tourism hub with an estimated 20 million tourists visiting every year. Attractions include the surrounding countryside, the Peak District, Winter Gardens and The Crucible Theatre. The population as of 2016 was over 575,000 and the city is the third largest district authority. It is projected that by 2039 the population will grow to over 650,000. [Source: ].

Sheffield City Centre Regeneration
Future High Streets Funding
Sheffield City Council have won £15,800,000 in government funding allocated to Fargate and High Street. Part of the plan is to reposition Fargate and High Street as ‘Social Hubs’ with a diverse mix of leisure, entertainment, retail and event space.
Bob Johnson, Leader of Sheffield City Council announced that “Our Future High Streets Fund proposals focus on adapting the underused upper levels of buildings on Fargate and High Street to become much-needed homes and workspaces.”

It is anticipated that the council will be forthcoming when landlords apply to change the use of the upper parts along Fargate (for example to residential use).

New lighting, public realm and infrastructure plans are also underway.

The Future High Street development will integrate with the recently announced ‘Connecting Sheffield Scheme’, promoting attractive spaces and active travel across the City Centre.

As part of the funding agreement, this is to be delivered by March 2024.

Further information can be viewed via the following link - .

The Heart of the City II
The Heart of the City II is the second stage of the city centres regeneration initiative which is focused around Pinstone Street and is a joint venture between the council and Queensbury. The £470m scheme will include luxury hotels and over 1.5m sq ft of retail, leisure and office accommodation. Further information can be viewed via the following link - .

Situation
Sheffield’s prime retailing pitch is linear, running from Fargate onto Pinstone Street and further onto the Moor.

The property occupies a 100% prime retailing position on the pedestrianised Fargate, adjacent to Santander.

Other tenants in the immediate vicinity include Pret A Manager, Boots, Caffé Nero, Marks & Spencer, Starbucks, Greggs, Pandora, Tesco, tk Maxx, McDonald’s, Sainsbury’s, H&M, All Bar One, Metro Bank, hsbc, Lloyds and Barclays Bank.

The subject property is the only WHSmith in Sheffield, other than a small kiosk in the railway station and in the hospital with both being out of the city centre.

The former Next shop, directly opposite the property, is to undergo a £1.5m internal and external refurbishment with a new roof terrace and façade.

Description
The property has recently undergone an c.£1.5m external and internal extensive refurbishment funded by the tenant which demonstrates its commitment to this location and property.
The property comprises an impressive retail premises arranged over basement, ground, first, second and third floors.
The ground, basement and first floors consist of sales accommodation with the second and third floors being used as staff and ancillary accommodation.

The property benefits from escalators from the basement to the first floor, a customer lift and a goods lift.

As demonstrated in the aerial photography, there is potential to considerably extend the third floor onto the flat roof to the rear and to add an additional storey to the property in line with other properties along the parade, subject to planning permission.

This store offers the full range of services such as dhl pick up and drop off and free store delivery.

The property benefits from rear access.

The property is of Yorkshire stone construction under slate roofs and is one of the most superior buildings in Sheffield city centre in terms of aesthetics, position and future development potential.

Accommodation
The property has been measured by bkr Floor Plans and provides the following accommodation:

Net Frontage 14.17 m 46’6”
Gross Frontage 15.47 m 50’9”

Zone A 81.57 sq m 878 sq ft
Zone B 78.04 sq m 840 sq ft
Zone C 70.70 sq m 761 sq ft
Remainder 139.26 sq m 1,499 sq ft
Ground Floor itza 1,675.63 units
Total Ground Floor 369.56 sq m 3,978 sq ft

First Floor 348.56 sq m 3,752 sq ft
Second Floor 356.83 sq m 3,841 sq ft
Third Floor 140.65 sq m 1,514 sq ft
Basement 341.59 sq m 3,677 sq ft

Total nia 1,557.19 sq m 16,762 sq ft
Total gia 1,791.20 sq m 19,281 sq ft
The total Gross Internal area of the property is

A set of floor plans is available to download and will be re-addressed to a purchaser at a cost of £745 + VAT.

Tenure
Freehold.

Tenancy
The property is fully let to wh Smith Retail Holdings Limited, on a full repairing and insuring lease for a term of 10 years from 24th June 2017, expiring on 23rd June 2027 at a passing rent of £385,000 per annum.

Therefore, there are over 6 years unexpired with no breaks.

The lease is subject to an upwards only rent review on 24th June 2022.

The rent is payable monthly in advance. There are no rental arrears.

By applying a reasonable rate of £12 per square foot for the basement and first floor sales area and £4 per square foot to the second and third floors ancillary area, our analysis shows a Ground Floor Zone A Rate of £163 per sq ft.

Covenant
wh Smith is one of the longest standing chain stores in the world, being founded 230 years ago. The brand is now one of the leading retail groups and household names in the United Kingdom.

With 568 high street stores in the United Kingdom and a total of 1,174 stores across 30 countries the company has also become and internationally recognised brand, servicing over 240 million customers worldwide every year.

For further information visit .

Wh Smith Retail Holdings Limited (00471941) has reported the following figures:

31 August 2019 31 August 2018 31 August 2017
Turnover £187,524,000 £180,610,000 £181,024,000
Pre-Tax Profits £116,655,000 £115,766,000 £67,219,000
Total Net Worth £614,113,000 £440,781,000 £450,726,000
WHSmith has a market cap of £2.26bn


VAT


The property has been opted for tax and it is anticipated that the sale will be treated as a Transfer of a Going Concern (togc).

Proposal
We are instructed to seek offers of £3,850,000 (Three Million Eight Hundred and Fifty Thousand Pounds), subject to contract. This price reflects a net initial yield of 9.4%, assuming purchasers’ costs of 6.53%.

Please note that a purchaser will be re-charged the cost of searches which are provided in the data room and amounting to £645.64 including VAT.

Investment Considerations
Sheffield is England’s 5th largest city and 3rd largest metropolitan centre

Highly secure income from wh Smith (Pre-Tax Profits £116.6m);

Fargate is Sheffield’s premier pedestrianised retailing thoroughfare;

The property is the only wh Smith in Sheffield City Centre;

Tenant has recently investment £1.5m into the property;

An opportunity to acquire a rare freehold;

Major regeneration location;

Future redevelopment potential of the upper parts, subject to planning.

For full details please visit our website or view PDF brochure below

* Sizes listed are approximations. Please contact the agent to verify actual sizes.

Property info

* Sizes listed are approximate. Please contact the agent to confirm actual size.

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Singer Vielle, W1G on +44 20 8128 4245 * (local rate)

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Property descriptions and related information displayed on this page, with the exclusion of Running Costs data, are marketing materials provided by Singer Vielle, and do not constitute property particulars. Please contact Singer Vielle for full details and further information. The Running Costs data displayed on this page are provided by PrimeLocation to give an indication of potential running costs based on various data sources. PrimeLocation does not warrant or accept any responsibility for the accuracy or completeness of the property descriptions, related information or Running Costs data provided here.

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