51, 52, 52A & 52B Commercial Street and (part of) 3A Union Street Hereford Herefordshire HR1 2DJ

51, 52, 52A & 52B Commercial Street and (part of) 3A Union Street
Hereford
Herefordshire
HR1 2DJ

Substantial Freehold Retail Investment (with Residential Ground Rent)

Predominantly let to H&M Hennes & Mauritz UK Limited and HMV Retail Limited
Asset management opportunities (including possible surrender and dilapidations claim)
Re-based HMV rent with recent tenant break option removed (4)
Prominent City Centre location opposite Maylord Shopping Centre
High Yielding on Guide Price
For the Seller's Legal Pack, please click the Property Documents tab below
For a Buyer's Legal Report please click <a href="/media/32613/buyers legal report v4.pdf" target="_blank" title="Buyers legal report available">here</a>

Lot
8
Auction
11th February 2016
Rent
£360,000 per Annum Exclusive
Status
Sold
Price
£1,380,000
Auction Venue
Radisson Blu Portman Hotel
22 Portman Square
London W1H 7BG
On behalf of Joint Fixed Charge Receivers CBRE

Interested?

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Substantial Freehold Retail Investment (with Residential Ground Rent)

Predominantly let to H&M Hennes & Mauritz UK Limited and HMV Retail Limited
Asset management opportunities (including possible surrender and dilapidations claim)
Re-based HMV rent with recent tenant break option removed (4)
Prominent City Centre location opposite Maylord Shopping Centre
High Yielding on Guide Price
For the Seller's Legal Pack, please click the Property Documents tab below
For a Buyer's Legal Report please click <a href="/media/32613/buyers legal report v4.pdf" target="_blank" title="Buyers legal report available">here</a>

Lot 8
Auction 11th February 2016
Rent £360,000 per Annum Exclusive
Status Sold
Price £1,380,000
Sector
High Street Retail
Auction Venue
Radisson Blu Portman Hotel
22 Portman Square
London W1H 7BG
On behalf of Joint Fixed Charge Receivers CBRE

Property Information

Location

Miles: 25 miles south-west of Worcester, 65 miles south-west of Birmingham
Roads: A49, A438, M5, M50
Rail: Hereford Railway Station
Air: Birmingham Airport

Situation

The property is situated in a highly prominent location on the southern side of
the pedestrianised section of Commercial Street, close to its junction with High
Town and St Peter’s Street and opposite The Maylord Shopping Centre.
Nearby occupiers include Marks & Spencer, Sports Direct, Argos, McDonald’s,
TK Maxx, Topshop and River Island.

Tenure

Freehold.

Location

Miles: 25 miles south-west of Worcester, 65 miles south-west of Birmingham
Roads: A49, A438, M5, M50
Rail: Hereford Railway Station
Air: Birmingham Airport

Situation

Tenure

Freehold.

Description

The property comprises two large shops, with self-contained residential accommodation above (sold off on a long lease).The part let to H & M Hennes benefits from retail accommodation on the ground and part first floors with ancillary accommodation on the part second floor. The part let to HMV benefits from retail accommodation on the ground floor with ancillary accommodation on the first floor. In addition, there is self-contained residential accommodation (sold off) on the part second and third floors.

Six Week Completion

Note
This property is being marketed for sale on behalf of Joint Fixed Charge Receivers and therefore no warranties or guarantees in any respect, including VAT, can be given. The information in these particulars has been provided by the Joint Fixed Charge Receivers to the best of their knowledge, but the purchaser must rely solely upon their own enquiries. The Fixed Charge Receivers are not bound to accept the highest or any offer and are acting in respect of this sale without personal liability.

Buyer's Legal Report
For the ease and convenience of prospective buyers, to speed up the process of investigating a possible purchase and to minimise the legal costs an independent legal title report is available here.

VAT

VAT is applicable to this lot.

EPC

The EPC will be available to view online in the solicitor’s legal pack.

Description

VAT

VAT is applicable to this lot.

EPC

The EPC will be available to view online in the solicitor’s legal pack.

Tenancy & Accommodation

Floor	Use	Floor Areas (Approx)		Tenant	Term	Rent p.a.x	Reviews
Ground First Second	Retail Retail Ancillary Ancillary	718.23 sq m 640.38 sq m 71.11 sq m 65.59 sq m	7,731 sq ft) (6,893 sq ft) (765 sq ft) (706 sq ft)	H&M HENNES & MAURITZ LIMITED (1)	15 years from 29/09/2006 until 28/09/2021 (2)	£290,000	29/09/2016
Ground First	Retail Ancillary	371.80 sq m 268.89 sq m	(4,002 sq ft) (2,894 sq ft)	HMV RETAIL LIMITED (3)	10 years from 24/08/2009 until 23/08/2019 (4)	£70,000 (4)
Part Second/Third	Residential	–	(–)	LOMBARD CENTRAL PROPERTIES LIMITED	150 years from 24/10/2006 until 23/10/2156	Peppercorn
Total Commercial Area		2,135.86 sq m	(22,991 sq ft)			£360,000

(1) For the year ending 30th November 2014, H & M Hennes Mauritz UK Limited reported a turnover of £957,003,452, pre-tax profits of £61,013,944 and a total net worth of £114,984,544 (Source: Experian Group 02/11/2015). Please note that the tenant is not currently in occupation of the property.
(2) The lease provides for a tenant option to determine on 25/10/2016.
(3) For the year ending 3rd January 2015, HMV Retail Limited reported a turnover of £365,746,000 and pre-tax profits of £-8,451,000 (Source: Experian Group 02/11/2015). HMV was purchased by Hilco Capital in 2013 and they now trade from 120 stores in the UK.
(4) The lease to HMV Retail Limited was subject to a tenant only break option on 23/08/2014. By way of a Deed of Variation dated 13/02/2014, the tenant break option on 23/08/2014 was removed and extended to 31/01/2015. The tenant did not operate their break option in January 2015 and the lease is therefore not subject to any further break options. A one month rent free period in February 2014 was granted in return, as well as a reduction in rent to £70,000 p.a.x. fixed until lease expiry.