For Sale
Warners Parade,
1-5 South Farm Road,
Worthing,
West Sussex,
BN14 7GA
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Investment
4,000 Sq Ft (371.6 Sq M)
- Well located in South East, close to Worthing town centre
- Strong neighbourhood shopping area, with high levels of passing vehicular traffic
- Ground floor unit configured as a lock-up shop with a GIA 4,000 sq ft
- EPC rating of B
- Let to Tesco Stores Limited (D&B rating 5A 1) who have been in occupation since 2008
- FRI lease until March 2038 with 8 years to a break
- Tenure: long leasehold at a peppercorn rent
- Rent £62,000 pax
- Open market upward only rent reviews in 2028 and 2033
- Offers in excess of £950,000 which would reflect a NIY of 6.17% (after purchasers costs of 5.69%)
Location
Worthing is a large seaside town, located in the county of West Sussex. It is conveniently located along the A27 south coast trunk road, and lies approximately 15 miles west of Brighton, and 38 miles east of Portsmouth.
The property occupies a prominent corner position on the western side of South Farm Road, at its junctions with Teville Road, Tarring Road and Clifton Road. This location is a neighbourhood shopping area, with high levels of passing vehicular traffic, about a quarter of a mile to the northwest of Worthing town centre
Description
The subject accommodation comprises the ground floor of a substantial, three-storey building. The building is of a traditional construction, beneath a pitched slate-tiled road, and incorporates stucco-rendered and painted elevations above a traditional timber-framed shop front.
Internally, the ground floor is configured as a lock-up shop, which is currently occupied as a convenience store by Tesco Express. The configuration of the ground floor allows the premises to be occupied as a whole, or as three individual units.
Accommodation
We calculate the property to have a Gross Internal Area (GIA) of 4,000 sq ft (371.60 sq m).
Energy Performance Rating
We understand the property has an EPC rating of B.
Taxation
The Rateable Value for the property is £41,500.
Tenancy Information
The premises is let to Tesco Stores Limited (D&B rating 5A 1 and company number 00519500) on an effectively full repairing and insuring sublease for a term of 15 years from 25 September 2023 (expiring 24 September 2038) having been in occupation since 2008. It is a protected lease under the 1954 L & T Act.
The passing rent is £62,000 per annum, with provision for upward only open market reviews at the 5th (25.09.2028) and 10th (25.09.2033) anniversaries of the lease.
There is a tenant break at the 10th anniversary of the lease, being 25 September 2033, subject to 6 months notice.
Covenant
Let to Tesco Stores Limited (D&B rating 5A 1).
Terms
The premises is held on a long leasehold interest for a term of years expiring on 29 June 2128, at a peppercorn rent (approx. 103 years unexpired). The permitted use is for Classes A1, A2 and A3 use under the Schedule of the Town and Country Planning (Use Classes) Order 1987 (as amended).
We have been instructed to market the long leasehold interest at offers in excess of £950,000 which would reflect a NIY of 6.17% (after purchasers costs of 5.69%).
VAT
We understand that the property is elected for VAT and therefore it is assumed that the sale will be treated by way of a Transfer of A Going Concern (TOGC).
Legal Fees
Each party to bear their own legal costs incurred.
Anti-Money Laundering Regulations 2017
In accordance with current Government legislation, we are legally required to conduct Anti-Money Laundering (AML) checks on all prospective purchasers or tenants where the transaction involves a capital value of €15,000 (EUR) or more, or a rental value of €10,000 (EUR) per calendar month or greater.
This process includes verifying identity, as well as confirming the source and availability of funds. Please note that we must obtain and record this information before any transaction can be formalised or contracts exchanged.
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.