For Sale
42 South Street And 1 Old Market Avenue,
Chichester,
West Sussex,
PO19 1SP
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Investment
8,227 Sq Ft (764.29 Sq M)
- Central Business District location close to public car parks, bus and railway stations, retail and restaurants.
- Fully Let with WAULT of 6 years (expiry of leases)
- Modern four storey building that has undergone refurbishment throughout
- EPC ratings of B and C (with ability to upgrade C to B)
- Ground floor let to a restaurant use, first floor is a newly refurbished office as is the third floor, with the second floor being a Yoga studio.
- Chichester is a busy and attractive Cathedral city
- Third Floor benefits from large terrace overlooking Cathedral and formerly residential.
- Total size 8,227 Sq Ft (764.29 Sq M) NIA
- Total passing rent of £141,477 pax and possible reversion
- Price £1,650,000 represents 8.08% Net Initial Yield after usual purchasers costs.
Location
Chichester is a historic cathedral city located on the south coast in West Sussex between Portsmouth and Worthing, and lies approximately 70 miles south west of London. The city benefits from good road links via the A27 dual carriageway which runs along the south coats between Portsmouth to the west and Brighton to the east. There are also regular rail links to London Victoria.
The subject property is situated in Market Avenue just off of South Street one of the three principle retail trading streets in the City, it is a 2 minutes walk from The Market Cross in Chichester City Centre. The area is well serviced by public car parks, a number of major bus routes, and Chichester train station lies 5 minutes' walk to the south of the property. Nearby occupiers include Tesco Express, Zizzi, Subway, Pizza Express and Sweaty Betty.
Description
Property Description
This central business district mixed-use building comprises a ground floor restaurant with three upper floors of high-quality E Class accommodation. The building has been thoughtfully refurbished throughout and is well-suited for a variety of occupiers seeking open-plan, flexible workspace in a vibrant setting.
Ground Floor - The Fat Fig
The ground floor is currently occupied by a well-presented restaurant, offering excellent street frontage and strong footfall.
First Floor Offices - Linn Systems
The first-floor offices are predominantly open plan, with several partitioned meeting rooms offering flexibility for collaboration or private use. This self-contained floor includes its own dedicated kitchen, male and female WC facilities, and benefits from direct lift access.
Second Floor - Lano Yoga Studio
Similar in layout to the first floor, the second-floor offices offer largely open-plan workspace. This level shares many of the same modern amenities, ensuring a consistent standard throughout the building.
Third Floor Offices - Flude Property Consultants
The third floor has recently undergone significant refurbishment, providing high-standard finishes including new kitchen facilities, upgraded WC accommodation, and new flooring. This floor benefits from excellent natural light and a modern, professional feel together with substantial terrace looking out over the city scape and cathedral.
Building Amenities
All floors enjoy access to the following features:
Good natural light throughout
Lift access to all upper floors
Suspended ceilings with integrated LED lighting
Air conditioning
Accommodation
See tenancy and accommodation schedule.
Energy Performance Rating
Ground Floor: B (27)
First Floor: B (44)
Second Floor: C (63)
Third Floor: C (70)
Planning
A new Use Classes Order (UCO) came into effect on 1st September 2020. Under the new UCO a new Use Class E was introduced to cover commercial, business and service uses. Use Class E encompasses A1, A2, A3, B1 and some D1 and D2 uses under the former UCO. We therefore understand that the premises benefit from Class E 'Commercial Business and Service' use within the Use Classes Order 2020. Interested parties should make their own planning enquiries and satisfy themselves in this regard.
Taxation
Ground Floor Rateable Value: £38,750
First Floor Rateable Value: £25,750
Second Floor Rateable Value: £20,000
Third Floor Rateable Value: £ 8,800
Tenancy Information
The building is currently let to four different occupiers on a floor by floor basis.
Ground Floor - Kopcel Catering Limited t/a The Fat Fig
Let to Kopcel Catering Limited t/a The Fat Fig on a 2,146 sq ft unit for retail use (Class A3). The effectively FRI lease runs from 29 September 2018 to 28 September 2033, with a rent review 29 September 2028 upwards only to open market. The passing rent is £45,000 p.a.x and the lease is within the 1954 Act.
First Floor - Linn Systems Ltd
Occupied by Linn Systems Limited under an effectively FRI lease, comprising 2,284 sq ft of office space. The term runs from 9 July 2024 to 8 August 2029, with no breaks or rent reviews. The passing rent is £40,477 p.a.x. The lease is inside the 1954 Act.
Second Floor - BGTY Ltd t/a Lano Yoga
Let to BGTY Ltd as a hot yoga centre (Class D2) on a 2,319 sq ft effectively FRI lease. The lease runs from 2 February 2015 to 1 February 2030 and is outside the 1954 Act. Headline rent is £31,000 p.a., with a tapered increase agreed: £27,000 (2025), £29,000 (2026), and £31,000 (2027). Landlord will top up rent to £31,000 pax. The lease is outside the 1954 Act.
Third Floor - Flude Group Ltd t/a Flude Property Consultants
1,478 sq ft of office space let to Flude Group Ltd on an effectively FRI lease from 18 November 2022 to 17 November 2032. The passing rent is £25,000 p.a. with a tenant break on 18 November 2025 and rent review on 18 November 2027 upwards only to open market. The lease is outside the 1954 Act.
Covenant
Kopcel Catering Limited t/a The Fat Fig has a Dunn & Bradstreet rating of H with a low/moderate business risk. There are personal guarantees for this lease.
Linn Systems Ltd have a D&B rating of 4A3 with a tangible net worth of approximately £30m.
BGTY Ltd t/a Lano Yoga have a B&B rating of N3 and have been trading since 2014. There are personal guarantees for this lease.
Flude Group Ltd - further information on request.
Terms
We are instructed to market the freehold interest at a price of £1,650,000. Based on a receivable rent of £141,477 pax this equates to a Net Initial Yield of 8.08% after purchasers costs of 6.16%.
VAT
We understand that the property is elected for VAT and therefore it is assumed that the sale will be treated by way of a Transfer of A Going Concern (TOGC).
Anti-Money Laundering Regulations 2017
In accordance with current Government legislation, we are legally required to conduct Anti-Money Laundering (AML) checks on all prospective purchasers or tenants where the transaction involves a capital value of €15,000 (EUR) or more, or a rental value of €10,000 (EUR) per calendar month or greater.
This process includes verifying identity, as well as confirming the source and availability of funds. Please note that we must obtain and record this information before any transaction can be formalised or contracts exchanged.
Flude Property Consultants for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Property Consultants has any authority to make or give any representation or warranty whatsoever in relation to this property.
Please note that whilst we endeavour to confirm the prevailing approved planning use for properties we market, we can offer no guarantees in this regard. Planning information is stated to the best of our knowledge. Interested parties are advised to make their own enquiries to satisfy themselves in respect of planning issues.
We advise interested parties to make their own enquiries to the local authority to verify the above and the level of business rates payable in view of possible transitional arrangements and any reliefs.