Retail premises for sale in Middle Gate, Newark NG24

Description

The properties comprise a substantial range of buildings fronting both Castle Gate and Middle Gate, within the centre of the well regarded market town of Newark-on-Trent.
Sketchley House fronts on to Castle Gate and is a Grade II Listed building, providing office accommodation over ground and first floor levels with storage on the second floor. This building is occupied by well regarded local solicitors Ringrose Law.

Behind this and leading through on to Middle Gate sit Central Buildings, which also have a pedestrian and delivery access off Castle Gate, with predominantly single storey accommodation, with brick elevations under a pitched roof. The front section of Central Buildings on to Middle Gate is of two storey brick construction under a pitched tiled roof and incorporates a separate self-contained entrance off Middle Gate leading to a suite of offices that are occupied by a local Financial Adviser, albeit the owners have previously secured Planning Permission for the conversion of this space into 1 x one bedroom and 1 x two bedroom apartments. Plans are available showing the proposed layout for this scheme

Central Buildings are predominantly occupied by the Yorkshire Trading Company, who occupy the whole of the ground floor, the majority of which is used for retailing. Internally, this accommodation has a solid floor overlaid in tiles, painted plaster walls and a suspended acoustic tiled ceiling.

The first floor office accommodation fronting Middle Gate has recently been refurbished by the Vendor in advance of the letting and has a solid floor overlaid in carpet and tile with painted plaster walls and ceilings throughout.

Location

The properties are situated in a prominent location within Newark Town Centre, at the busy roundabout junction on Castle Gate, close to a range of national and retail occupiers.
These include well know national brands Loungers, Zizzi’s, Specsavers, White Stuff and Phase Eight, as well as highly regarded local retailers and operators including Strays, Ann et Vin, Vix Shoes, Jane Youngs Fashion and Masdings.

As referred earlier in these particulars, the properties link Castle Gate to Middle Gate, with the latter forming the main shopping street in the town centre.

Newark is an expanding and prosperous market town with a population of around 35,000 and a large and affluent catchment within 15 miles of around 160,000.

The town enjoys a strategic location at the junction of the A1, A46 and A17 trunk roads and has excellent direct rail links to London King’s Cross with a travel time of around 1 hour 20 minutes.
Nottingham is situated around 22 miles to the south west and Lincoln around 18 miles to the north east.

Services

We understand that mains water, electricity and drainage supplies are available and connected to the property. These have not been tested and interested parties are advised to make their own investigations to the relevant utility service providers.

Tenure

The properties are being offered For Sale Freehold subject to the following leases:

Gf Retail Unit – Middle Gate
Let to the Yorkshire Trading Company Ltd on a 5 year lease with effect from January 2022 at a current rent of £40,000 per annum plus VAT. The lease is drawn on Internal Repairing and Insuring terms.

Gf & ff Offices - Sketchley House – Castle Gate
Let to Ringrose Law Solicitors on a 10 year lease from January 2022, with a tenant break option at the end of year 5 at passing rent of £22,000 per annum. The lease is drawn on Internal Repairing and Insuring terms.

Ff Offices – Middle Gate
Let to a local Financial Adviser pn Dales Ltd on a 7 year lease, with a tenants break option after 3 ½ years, at a rent of £9,000 per annum. The lease is drawn on Internal Repairing and Insuring terms .

Therefore the total rental income is £71,000 per annum.
The rent on the Yorkshire Trading Company unit was rebased in 2022 to a low rate of less than £4 per sqft and therefore in our opinion offers good prospects for future rental growth.

For the whole - £725,000
A purchase at this price would show a purchaser a Net Initial Yield of circa 9.30% after allowing for standard purchasers costs.
Alternatively the vendor would consider a sale of Sketchley House and Middle Gate separately at prices of:
Middle Gate - £495,000 niy - 9.45%
Sketchley House - £230,000 niy - 9.35%

Town & country planning

We understand that the properties have consent for uses falling within Class E (Commercial, Business & Services Use) of the Town and Country Planning (Use Classes) Order 1987 (as amended 2020).

As referred to earlier in the particulars, the owners secured Planning Permission for the conversion of the first floor offices on Middle Gate into 1 x one bedroom and 1 x two bedroom apartments. Plans showing this scheme are available on request.

We understand that Sketchley House, fronting Castle Gate is a Grade II Listed building. The whole building falls within a Conservation Area.

Interested parties are advised to make their own investigations with the Local Planning Authority with regards to any planning queries they may have.

Tenant covenant strength

Yorkshire Trading Company Limited (ytc Limited 03423582) have a Creditsafe rating of A96 and their last Trading Accounts for the year ending October 2021 show a turnover of £44,591,120, pre-tax profits of £7,067,959 and shareholder funds of £25,900,107.

Ringrose Law Solicitors are a long established regional firm of solicitors with 5 offices located in Lincoln, Grantham, Boston, Sleaford and Newark.

Pn Dales Ltd are a Newark based firm of Financial Advisers incorporated in 2008 and have a Credit Safe Rating of 77A.

Copies of all leases and respective Creditsafe ratings on each company are available on request.

VAT

The properties are elected for VAT. However, the Vendors are prepared to consider a sale by way of a togc.

Legal costs

Each party is to be responsible for their own legal costs incurred in documenting the transaction.