Retail premises for sale in Fore Street, Hexham NE46

Location

Hexham is situated approximately 22 miles (35.4km) west of Newcastle and 30 miles (48.2km) east of Carlisle and has a resident population of 10,683 persons, with a district population of 58,808 persons.

It is an attractive market town which serves a wealthy agricultural hinterland. Due to its attractive surroundings Hexham is a popular commuter town for Tyneside, particularly with white collar workers, directors and those in upper management hence it is a very wealthy town. Statistics show that Hexham under the Urban Area Classification Symbol of Success stands at 23.9% compared to a national average of 9.7%.

Hexham benefits from good communications, lying on the A69 trunk road which forms a dual carriageway between Carlisle and Newcastle. The town also benefits from a railway station and is located on the Newcastle-Carlisle line with frequent services to both.

The town benefits from tourist trade with tourists using the town to explore Northumberland and the attractive Hexham Abbey.

Retailing in hexham / situation

The principal retailing in Hexham is situated on the pedestrianised Fore Street with supplementary retail facilities on Market Place, Cattle Hill and Battle Hill.

Given its distance from Newcastle and Carlisle, it is a popular town with national retailers. M&S, Next, B&M, Costa Coffee, Boots, White Company, Superdrug, Clarks, Mountain Warehouse and Iceland are all represented in the town.
Hexham also boast a number of high quality local and regional retailers who significantly add to the retail offer, attracting shoppers to the town.

The move to local retail during the pandemic has benefitted Hexham.

The subject property occupies a prime location on Fore Street towards its southern end. The property sits between Dawson & Sanderson Travel Agents and Restored, close to Waterstones, Specsavers, Holland & Barrett, Mackays, Hays Travel and Yorkshire Trading Company.

Description

The property comprises a mid-terrace retail unit offering ground floor sales accommodation with first floor staff and storage facilities.

The ground floor is fitted out in standard Greggs shopfit with a number of customer tables inside offering the opportunity to eat in or takeaway.

The property forms part of a terrace of 5 units constructed at the same time and is of mock stone frontage with sash Georgian design windows at first floor under a pitched tiled roof. The rear wall is of brick construction with a small covered flat roof at the rear, after the pitch.

There is a small service yard to the rear of the property.

Accommodation

The property has the following approximate areas and dimensions:-

Frontage – 5.79m (19’0”)
Shop Width – 5.4m (18’0”)
Shop Depth – 18.29m (60’0”)
gf Sales – 94.80 sq.m. (1,010 sq.ft)
itza – 605.5 units
ff Storage/Staff – 63.20 sq.m. (680 sq.ft)

Tenure

Freehold.

Tenancy

The property is let to Greggs plc on a full repairing and insuring lease, expiring 31st December 2025 at a current rent of £30,000 per annum exclusive.

The original 25 year expired on 1st January 2023 but was re-geared and extended during the pandemic which we believe demonstrates Greggs commitment to the location. They have traded from the unit for over 24 years.

Covenant information

Greggs now have over 2,000 stores throughout the UK, employing over 21,500 staff. They have a presence in most towns and cities and are an extremely popular retailer with shoppers and hence investors. Greggs plc have a D&B rating of 5A1 with a maximum recommended credit of £18.5 million.

Rental devaluation

The current rent devalues to £45.00 Zone A which is in line with other recent transactions in the town.

Rateable value

We understand the property has a Rateable Value of £30,250

EPC

The property has been independently assess and certified as having a rating of E(102) expiring 17th October 2031.

Price

We are seeking offers in the region of £410,000 subject to contract and exclusive of VAT which would show a net initial yield of 7% allowing for the normal costs of acquisition.

VAT

The property is registered for VAT and therefore it is anticipated the transaction will be treated as a togc.

Anti-money laundering

In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.