Property Auctions 24/Oct/2019 | 71 / 79 Alcester Road South, Kings Heath, Birmingham, B14 7JG

Unbroken Freehold Retail and Residential Parade Investment

Fully let parade comprising four shops with six self-contained flats and maisonettes above, all let on ASTs
Recently let and renewed shop leases from 2017, 2018 and 2019
Located opposite large Sainsbury's supermarket and Alcester Road South Retail Park
Popular Birmingham suburb close to the city centre
VAT-free investment

Lot 23
Auction 24th October 2019
Status Sold Prior
Price
Sector
High Street Retail
Auction Venue
The Montcalm Hotel
2 Wallenberg Place
London W1H 7TN

Property Information

Location

Miles: 4 miles south-east of Birmingham city centre; 6 miles east of Solihull
Roads: A435, M5, M40, M42
Rail: Yardley Wood, Birmingham New Street
Air: Birmingham Airport

Situation

Kings Heath is a well established suburb of Birmingham located 4 miles south-east of Birmingham city centre, with Junction 3 of the M42 motorway a short distance to the south. The property is located on the eastern side of Alcester Road (A435), which is one of the main arterial routes to central Birmingham, on a prominent corner at its junction with Mossfield Road and directly opposite Alcester Road South Retail Park. Nearby retailers include Sainsbury's, Dreams, Poundstretcher, JD Sports, Greggs and Coffee #1. A large Sports Direct Gym is located adjacent to the property.

Tenure

Freehold.

Location

Miles: 4 miles south-east of Birmingham city centre; 6 miles east of Solihull
Roads: A435, M5, M40, M42
Rail: Yardley Wood, Birmingham New Street
Air: Birmingham Airport

Situation

Kings Heath is a well established suburb of Birmingham located 4 miles south-east of Birmingham city centre, with Junction 3 of the M42 motorway a short distance to the south. The property is located on the eastern side of Alcester Road (A435), which is one of the main arterial routes to central Birmingham, on a prominent corner at its junction with Mossfield Road and directly opposite Alcester Road South Retail Park. Nearby retailers include Sainsbury's, Dreams, Poundstretcher, JD Sports, Greggs and Coffee #1. A large Sports Direct Gym is located adjacent to the property.

Tenure

Freehold.

Description

The property comprises an unbroken parade of four shops (including one restaurant) arranged on the ground floor, with six self-contained flats and maisonettes arranged on the first and second floors. There are rights to park 8 cars to the rear of the property.

VAT

VAT is not applicable to this lot.

EPC

Available from the legal pack at acuitus.co.uk

Description

The property comprises an unbroken parade of four shops (including one restaurant) arranged on the ground floor, with six self-contained flats and maisonettes arranged on the first and second floors. There are rights to park 8 cars to the rear of the property.

VAT

VAT is not applicable to this lot.

EPC

Available from the legal pack at acuitus.co.uk

Tenancy & Accommodation

	Floor	Use	Floor Areas (Approx)		Tenant	Term	Rent p.a.x.	Reviews
71	Ground	Retail	74.00 sq m	(797 sq ft)	SHERVON SPADANO LIMITED t/a Hair by Shervon	10 years from 06/03/2017 until 05/03/2027 (1)	£10,000 (rising to £11,000 on 06/03/2020)	06/03/2023 (2)
73	Ground	Retail	76.00 sq m	(818 sq ft)	SUU VAN NGUYEN & JULIE BARTOSIK t/a Envy Nails & Beauty	10 years from 13/06/2018 until 12/06/2028 (3)	£10,000	13/06/2023
75	Ground	Retail	73.20 sq m	(788 sq ft)	THE-SALON.NET LIMITED t/a The Salon.net Hairdressing	10 years from 10/05/2019 until 09/05/2029	£7,000 (rising to £10,000 on 10/05/2020)	10/05/2024
77-79	Ground	Retail/ Restaurant	121.60 sq m	(1,309 sq ft)	SOUL CHICKEN LIMITED t/a Soul Chicken	5 years from 14/06/2019 until 13/06/2024	£17,000 (rising to £17,500 on 14/06/2020 and then by £500 annually rising to £19,000 by 14/06/2023) (4)	Annual fixed rental increases from 14/06/2020
71a	First/ Second	Residential	2 bedroom maisonette		INDIVIDUAL	12 month AST from 16/02/2019	£6,000
73a	First/ Second	Residential	2 bedroom maisonette		INDIVIDUALS	12 month AST from 26/05/2019	£5,700
75a	First/ Second	Residential	2 bedroom maisonette		INDIVIDUALS	12 month AST from 01/05/2019	£6,600
77a	First/ Second	Residential	2 bedroom maisonette		INDIVIDUALS	12 month AST from 11/12/2017 (holding over)	£6,720
79a	First	Residential	2 bedroom flat		INDIVIDUAL	12 month AST from 24/08/2018 (holding over)	£6,120
79b	Second	Residential	2 bedroom flat		INDIVIDUALS	12 month AST from 28/03/2019	£5,871
Total Commercial Areas			344.80 sq m	(3,172 sq ft)			£81,011

(1) The lease is subject to a tenant option to determine on 6th March 2024.
(2) The lease is subject to a fixed rental increase to £11,000 per annum in March 2020 with an Open Market Rent Review on 6th March 2023.
(3) The lease is subject to a tenant option to determine on 13th June 2021.
(4) The tenant is paying half rent until 14th March 2020. The vendor has agreed to top up the rent to £17,000 per annum from completion of the sale until the expiry of the concessionary rental period on 14/03/2020.
NB: In addition to the retail and residential units, there is a telecoms agreement between the landlord and Orange Personal Communications Services Limited, whereby the landlord receives a payment of £1,971.19 annually which was last received on 1st July 2019. There is also an electricity substation lease between the landlord and The Midlands Electricity Board, whereby the landlord receives a payment of £1 annually.