• 40 year lease
  • Annual RPI +1%
  • Strong South West location
  • Local authority backed income
  • NIY 5.83%
  • Freehold
  • Asking Price £6,000,000.00
  • Now Sold

Location

Exeter is the capital city and county town of Devon and has firmly established a reputation of being the commercial centre of the South West.

The city has a population of approximately 130,000 with a ‘drive to work’ population of some 490,000 within a 45 minute catchment area. The City has two mainline railway stations and a popular central shopping area including the Princesshay Retail scheme.

Exeter airport is approximately 5 miles with regular National and International flights with Plymouth approximately 35 miles distant boasting a Ferry Port with regular sailings to Northern France and Spain.

Situation

The property is situated in central Exeter, within 200 yards of the historic Exeter Cathedral. It’s is surrounded by a mixture of retail outlets, including KFC, Nisbet and residential accommodation.

Description

The property comprises a 32 bed assisted living scheme, with 32 one bed apartments build to the required specification of Exeter City Council. The accommodation contains –

  • x3 PD (physical disability)
  • x10 LD (learning disability)
  • x19 MH (mental health)

Accommodation

The apartments total a NIA of 15,970 sq ft ( 1,483 sq m)

VAT

The property has been elected for VAT. Therefore, it is envisaged that the transaction will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Our client is seeking offers of £6,000,000 (Six Million Pounds), subject to contract, reflecting a net initial yield of 5.8%%.

Tenure

Freehold

Tenancy

The property is let over two phases, both of which have completed and handed over to the tenant.

Phase 1 consists of 13 units let at a rent roll of £142,187 per annum

Phase 2 consists of 19 units let a a rent roll of £207,812 per annum

Total Rent = £350,000

Rent Reviews – Annually, based on RPI + 1%

Tenant – Inclusion Housing CIC (Company no. 06169583)

Company Guarantee from Lifeways Community Care Ltd (Company no. 4126127) for the first 5 years of the lease.

If the lease if ever forfeited, there is a clause stating Inclusion are removed and Lifeways step in with monies paid directly to the landlord

In addition to the guarantee, Inclusion are

Asset Management

Investment Considerations

  • Central Exeter location
  • Long and strong income
  • Built in annual rental growth
  • Local authority backed income
  • Future value preserved as residential

Photo Library

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Exeter Office

20 Southernhay West
Exeter
Devon
EX1 1PR
01392 660 000

London Office

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Mayfair
London
W1C 1ES
0203 770 2828

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Henley In Arden
West Midlands
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