- Freehold trade counter investment
- Located close to the town centre
- Single let to Imperial Chemical Industries Ltd (ICI)
- Current rent of £42,500 per annum (£7.00 per sq ft)
- Rent review in March 2021
- GIA of 6,061 sq ft
- We are instructed to guide a price of £700,000 subject to contract and exclusive of Vat.
- A net initial yield of 5.77%, assuming purchasers costs of 5.30%, and a reversionary yield of 7.40% after the 2021 review (based on an ERV of £9.00 per sq ft)
Haywards Heath is a historic town located in West Sussex and is considered as one of the most affluent London commuter towns. The town is conveniently located 36 miles south of London, 15 miles north of Brighton and 9 miles south east of Crawley. The town benefits from excellent communications, being situated on the A272, providing access to the A23. The A23 provides access northwards to the M23, Gatwick Airport and the M25, and southwards toward Brighton.
Haywards Heath Station provides regular services to London Victoria, London Bridge, Gatwick Airport, Brighton and the South Coast. During peak times, there are regular services between Haywards Heath and London Victoria, with a fastest journey time of 43 minutes.
The Property is located a short distance to the south of the B2272 and west of the B2112, two of Haywards Heath’s principal arterial routes. Accessed from Gower Road, the immediate area is a mix of retail and residential uses.
The property provides well configured trade counter accommodation with a large retailing area and further ancillary storage on a site extending to 0.43 acres. The elevations are of brick construction with flat roofs at various levels. The yard area surrounding the unit provides approximately 22 parking spaces
The property extends to an approximate GIA of 6,061 sq ft, on a total site area of 0.43 acres.
Imperial Chemical Industries Limited (ICI) researches, manufactures, and sells paints and other chemical products. ICI was bought by AkzoNobel in 2008 for £8 billion.
In the past three years the company has reported the following figures in their annual accounts:
|Pre Tax Profit||£181,000||£108,000||£710,000|
The property is elected for VAT. We envisage the sale would be treated as a transfer of a going concern.
Our client has instructed us to guide £700,000 (Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of Vat. This reflects a net initial yield of 5.77%, assuming purchasers costs of 5.30%, and a reversionary yield of 7.40% after the 2021 review (based on an ERV of £9.00 per sq ft)
The entire property is let to Imperial Chemical Industries Limited on full repairing and insuring terms at a rent of £42,500 per annum. The lease commenced on 24th March 2016 and expires 23rd March 2026.
There is an upwards only rent review on 24th March 2021 and the tenant has the option to break the lease on 24th March 2021 on 6 months’ notice.
There is a sub-lease in place on part of the warehouse area to Hayward’s Heath Glass who have also been in occupation for over 15 years. The sub lease commenced on 24th March 2016 and expires on 21st March 2026 with a passing rent of £7,500. There is a mutual break on 6 months’ notice on the 24th March 2021.
The yard area and the sub-let unit are subject to a schedule of condition dating from the granting of the new lease in 2016.
- South East trade counter investment
- Freeholds are rare for this type of property In the local area
- Strong reversion at the 2021 rent review
- Previous consent for a residential scheme underpinning the value
- Strong covenant