Property Auctions 19/May/2016 | 8 / 10 Hagley Street, Halesowen, West Midlands, B63 3AS

Substantial Retail Investment

Majority let to Wilko Retail Limited and WH Smith Retail Holdings Limited
Close to Cornbow Shopping Centre which houses retailers including Asda, Peacocks and Argos
Approximately 4,705.26 sq m (50,647 sq ft)
Adjacent to a 450 space public car park
Rent: £310,300 p.a.x. (gross) £281,702.48 p.a.x. (net)
For the Seller's Legal Pack, please click the Property Documents tab below

Lot 64
Auction 19th May 2016
Rent £310,300 per Annum Exclusive
Status Withdrawn Post
Price
Sector
High Street Retail
Auction Venue
The Radisson Blu Portman Hotel
22 Portman Square
London W1H 7BG
On Behalf of Receivers, Knight Frank

Property Information

Location

Miles: 5 miles south-west of West Bromwich, 6 miles west of Birmingham
Roads: A456, A458, M5 (Junction 3)
Air: Birmingham Airport

Situation

The property is prominently located on the eastern side of the pedestrianized Hagley Street, opposite its junction with Hagley Road. The location of the property benefits from the town's main 450 space car park being immediately adjacent. The property is within close proximity to Cornbow Shopping Centre, which houses retailers including Asda, Argos, Greggs, Card Factory, Peacocks and Savers. Other retailers in the town include Iceland, JD Wetherspoon and branches of HSBC, TSB and Halifax banks.

Tenure

Long Leasehold. Held for a term of 99 years from 19/01/1979. The head rent is currently being charged at a rate of £28,597.52 p.a. The head rent is is calculated to be the greater of (a) 9% of the aggregate of the annual rent received under the terms of any under lease (excluding service charge or insurance rent and any rent payable in respect of the Borough Hall); and (b) The yearly rent paid in respect of the first rental year (which was to be the greater of (a) 9% of the annual rent (excluding service charges, insurance rent and any Borough Hall rent) and (b) £11,344. Landlord’s consent to assignments is required.

Location

Miles: 5 miles south-west of West Bromwich, 6 miles west of Birmingham
Roads: A456, A458, M5 (Junction 3)
Air: Birmingham Airport

Situation

The property is prominently located on the eastern side of the pedestrianized Hagley Street, opposite its junction with Hagley Road. The location of the property benefits from the town's main 450 space car park being immediately adjacent. The property is within close proximity to Cornbow Shopping Centre, which houses retailers including Asda, Argos, Greggs, Card Factory, Peacocks and Savers. Other retailers in the town include Iceland, JD Wetherspoon and branches of HSBC, TSB and Halifax banks.

Tenure

Long Leasehold. Held for a term of 99 years from 19/01/1979. The head rent is currently being charged at a rate of £28,597.52 p.a. The head rent is is calculated to be the greater of (a) 9% of the aggregate of the annual rent received under the terms of any under lease (excluding service charge or insurance rent and any rent payable in respect of the Borough Hall); and (b) The yearly rent paid in respect of the first rental year (which was to be the greater of (a) 9% of the annual rent (excluding service charges, insurance rent and any Borough Hall rent) and (b) £11,344. Landlord’s consent to assignments is required.

Description

The property comprises a retail building and Borough Hall arranged over two floors. The retail building is split into three units on the ground and first floors with The Borough Hall arranged over ground and first floors.

Six Week Completion

NB: As to the VAT status please refer to the special conditions.

Note
This property is being marketed for sale on behalf of Joint Law of Property Act 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 Law of Property Act Receivers to the best of their knowledge but the purchaser must rely solely upon their own enquiries. The Joint Law of Property Act Receivers are not bound to accept the highest or any offer and are acting in respect of this sale without personal liability.

VAT

VAT is applicable to this lot.

EPC

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

Description

The property comprises a retail building and Borough Hall arranged over two floors. The retail building is split into three units on the ground and first floors with The Borough Hall arranged over ground and first floors.

Six Week Completion

NB: As to the VAT status please refer to the special conditions.

Note
This property is being marketed for sale on behalf of Joint Law of Property Act 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 Law of Property Act Receivers to the best of their knowledge but the purchaser must rely solely upon their own enquiries. The Joint Law of Property Act Receivers are not bound to accept the highest or any offer and are acting in respect of this sale without personal liability.

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	GIA Floor Areas (Approx)		Tenant	Term	Rent p.a.x	Reviews/ (Reversion)
Ground First	Retail Ancillary	2,428.67 sq m 716.47 sq m	(26,142 sq ft) (7,712 sq ft)	WILKO RETAIL LIMITED (1)	20 years from 29/11/2006 until 28/11/2026	£270,000	29/11/2016 and 29/11/2021
Ground First	Retail Ancillary	323.80 sq m 323.90 sq m	(3,485 sq ft) (3,486 sq ft)	WH SMITH RETAIL HOLDINGS LIMITED (2)	5 years from 25/06/2015 (3)	£33,000	(24/06/2020)
Ground	Retail	20.20 sq m	(217 sq ft)	LESS4 INK LIMITED	7 years from 24/06/2015	£7,250	(23/06/2022)
Ground & First	Performance Hall/Offices	1,020.63 sq m	(10,986 sq ft)	THE BOROUGH COUNCIL OF DUDLEY	Approximately 99 years from 19/01/1979 (4)	£50	(15/01/2078)
Totals		4,742.67 sq m	(52,028 sq ft)			£310,300

(1) For the year ending 31st January 2015, Wilko Retail Limited reported a turnover £1,444,563,000, pre-tax profits of £5,496,000 and a total £160,898,000 (Source: Experian Group 18/04/2016).
(2) For the year ending 31st August 2014, WHSmith Retail Holdings Limited reported a turnover of £164,447,000, pre-tax profits of £105,938,000 and a total net worth of £466,645,000 (Source: Experian Group 18/04/2016).
(3) The lease is subject to a tenant option to determine on 25th June 2018.
(4) The lease is subject to a landlord option to determine after 18th January 2028. Please refer to the legal pack for further information.