For Sale
14-15 East Street,
Chichester,
West Sussex,
PO19 1HE
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Investment, Development
5,652 Sq Ft (525.07 Sq M)
- Chichester is a busy and attractive Cathedral city
- Strong retail centre with limited vacancies and good occupier demand
- 100% prime position on East Street close to the Market Cross
- Well configured retail unit recently let to Holland and Barrett Retail Limited (D&B Rating 5A 2)
- Rebased rent of £115,000 pa, but opportunities for further rental growth in Chichester
- Planning on going for the conversion of the first and second floors to create two further flats
- Third floor vacant 2 bedroom flat
- Freehold, subject to the tenancies
- Guide Price of £2,015,000, which reflects a NIY of 7% after usual purchases costs of 6.80% on the retail unit and £475,000 for the uppers
- Nearby occupiers include Mountain Warehouse, The Ivy, Mint Velvet, HSBC, Franca Manco, Fat Face, M&S and Superdrug
Location
The cathedral city of Chichester is a prosperous and historic market town located in West Sussex, approximately 68 miles south-west of London, 17 miles east of Portsmouth and 34 miles west of Brighton. It is the only city in West Sussex and is the County Town.
The property occupies a prominent location on the northern side of East Street, close to the Market Cross. East Street is one of the principal retailing streets in the city and is fully pedestrianised. Nearby occupiers include Mountain Warehouse, The Ivy, Mint Velvet, HSBC, Franca Manco, Fat Face, M&S and Superdrug.
Description
Prime High Street Retail Investment with Development Potential
Total Size - 525 sq m (5,652 sq ft)
Accommodation
The property comprises an attractive and prominent Grade II Listed building arranged over four storeys, plus a basement. The retail unit is configured over the ground floor, basement and part first floor.
The remainder of the part first and the second floors was historically used as a Pilates Studio / office space. The third floor comprises a vacant 2 bedroom flat.
The property has the following approximate NIA:
Ground Floor Sales Area - 1,803 sq ft
Basement - 985 sq ft
First Floor - 309 sq ft
Total NIA - 3,097 sq ft
E Class
First Floor - 1,004 sq ft
Second Floor - 853 sq ft
2 Bedroom Flat
Third Floor - 698 sq ft
Total Size - 5,652 sq ft
Energy Performance Rating
Available on request.
Planning
Planning has been submitted to convert part of the first and second floors to two x 2 bedroom flats. The third floor flat requires a certificate of lawful use.
Interested parties should make their own planning enquiries and satisfy themselves in this regard.
Taxation
Ground floor and part 1st floor Rateable Value (2023): 158,000.
Part 1st floor and 2nd floor Rateable Value (2023): £8,100
Covenant
H&B International is one of the world's leading health and wellness retailers and the largest in Europe supplying its customers with a wide range of vitamins, minerals, health supplements, specialist foods and natural beauty products. With over 145 years of experience in the industry, our name is a familiar sight in almost every major city and town across the UK and is becoming increasingly more visible further afield, in markets as diverse as the Netherlands and Malta to the UAE, China and India.
They have D&B rating of 5A 2 and a tangible net worth of just under £200m.
Terms
Covenant
H&B International is one of the world's leading health and wellness retailers and the largest in Europe supplying its customers with a wide range of vitamins, minerals, health supplements, specialist foods and natural beauty products. With over 145 years of experience in the industry, our name is a familiar sight in almost every major city and town across the UK and is becoming increasingly more visible further afield, in markets as diverse as the Netherlands and Malta to the UAE, China and India.
They have D&B rating of 5A 2 and a tangible net worth of just under £200m.
Tenancy
The retail unit is let to Holland and Barrett Retail Limited, for a term of 10 years from 05 November 2024, subject to a tenant only break after six years. The passing rent is £115,000 per annum which reflects £121 Zone A. The lease is subject to a five year, upward only, open market rent review.
Historically, Zone A rates in prime Chichester reached around £200 per sq ft, and we have seen in the last 12 months 20% rental growth.
The lease is drawn on an Effectively Full Repairing and Insuring Basis, which is subject to a schedule of condition and a service charge with a cap of £5,500 per annum, plus annual RPI increases.
The remainder of the building is currently vacant.
Terms
We have been instructed to market the freehold interest at a Guide Price of £2,015,000, which reflects a NIY of 7% after usual purchases costs of 6.80% on the retail unit and £450,000 for the uppers.
Anti Money Laundering Regulations 2017
Anti-Money Laundering Regulations 2017 Due to Government legislation we are legally obliged to undertake Anti-Money Laundering checks on prospective purchasers on transactions which involve a capital value of 15,000 euros or more. We are also required to request proof of funds.
Further information available on request.
VAT
The property is elected for VAT and it is anticipated that the sale will be treated as a transfer of a going concern (TOGC).
Legal Fees
Each party to bear their own legal costs incurred.
Flude Property Consultants for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Property Consultants has any authority to make or give any representation or warranty whatsoever in relation to this property.
Please note that whilst we endeavour to confirm the prevailing approved planning use for properties we market, we can offer no guarantees in this regard. Planning information is stated to the best of our knowledge. Interested parties are advised to make their own enquiries to satisfy themselves in respect of planning issues.
We advise interested parties to make their own enquiries to the local authority to verify the above and the level of business rates payable in view of possible transitional arrangements and any reliefs.