Burton Menswear, 78-80 London Road North, Lowestoft, NR32 1ET
Franck-Steier Price has recently completed the sale of a high street retail investment in Lowestoft on behalf of an overseas client.
The property is located in the prime retail pitch of London Road North, Lowestoft, and comprises two storey retail unit with ground floor sales and first floor storage accommodation.
The property is let to Arcadia Group Ltd (formally named The Burton Group Plc), for a term expiring 27 August 2027 (10.75 years unexpired). The current rent is £88,500 per annum.
The landlord has a right to break the lease on 28 August 2021 for the purpose of demolition, rebuilding, reconstruction or redevelopment, subject to providing 9 month prior written notice.
The first floor is sub-let to GEP (South) Ltd, with privity of contract from Marks & Spencer Ltd, for a term of 80 years from 1 January 1947, expiring 31 December 2026. The rent is £500 per annum without review. The sublease is subject to tenant break options every 10 years from 1 July 1958 subject to providing 6 months prior written notice. If the tenant exercises the break option, vacates the first floor on expiry or assigns the lease to head-tenant the head-tenant is to re-construct the dividing wall at first floor and install a new stair case from the ground to the first floor.
The purchase price of £970,000 reflected a net initial yield of 8.63%. The purchaser was a private investor represented by Peridot Consultancies.