For Sale
West Lodge,
The Esplanade,
Bognor Regis,
West Sussex,
PO21 1GF
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Investment
3,422 Sq Ft (317.9 Sq M)
- Bognor Regis is an affluent and popular resort town
- Prominent and attractive newly built opportunity with panoramic views within short walk of town centre
- Attractions locally include, Butlins, Bognor Regis Pier, and a long pebble beach
- Fully fitted restaurant premises finished to high standard throughout andInternally there is seating for around 110 covers, together with external seating
- Restaurant let on new 20 year FRI lease at a headline rent of £50,000 pax.
- Additional income from five flats sold off above producing £600 per annum
- Total income £50,600 per annum
- EPC rating A
- £17 million refurbishment of the Alexandra Theatre and new Premier Inn boosting the attractiveness of this strongly performing seaside town
- Freehold investment with Guide Price of £585,000, subject to contract and the existing lease which represents a net initial yield of 8.24% (after graduated purchasers costs of 5.01%) (No VAT)
Location
Bognor Regis is an affluent and popular resort town in West Sussex ideally located on the south coast approximately 55 miles south west of London 24 miles west of Brighton and six miles south east of Chichester.
Bognor Regis Railway Station offers direct and regular services to London Victoria and the South Coast.
The property is situated on the seafront at the edge of the main commercial and retailing centre to the east. It directly overlooks The Esplanade onto the beach and the leisure pier to the front.
Bognor Regis is a well known UK holiday destination situated on a stretch of southern Sussex coastline boasting the largest holiday centre in the south of England: Butlins Bognor Regis.
The town is also home to the University of Chichester's flagship £35 million Tech Campus accommodating the Engineering, Design and Creative Digital Technologies departments.
Nearby, the Alexandra Theatre is undergoing a £17m refurbishment project and there is also a new Premier Inn that has been constructed and is trading.
Description
The property was recently constructed and occupies a prominent corner position on The Esplanade and is arranged over five floors. The upper floors are configured as five self-contained apartments, which have been sold off on long leases. The restaurant element is accessed via a ground floor lobby entrance, with stairs leading to both the lower ground floor and upper floor. There is also a customer lift servicing each floor.
Internally, the lower ground floor provides seating for around 30 covers, a bar area, fully fitted kitchen (electric only), preparation areas and storage, together with customer and staff WC's.
The upper floor benefits from panoramic views of the seafront, providing around 80 covers, and serving bar. There is also further storage and an office.
Externally, the property benefits from a bin store, and plant room, which is accessed from Manor Place.
Accommodation
The accommodation has the following approximate floor areas:
| Description | Sq Ft | Sq M | Status |
|---|---|---|---|
| Lower Ground Floor | 1582 | 146.97 | Under Offer |
| Upper Ground Floor | 1636 | 151.98 | Under Offer |
| Entrance Lobby | 204 | 18.95 | Under Offer |
| Total | 3,422 | 317.90 |
Energy Performance Rating
We understand the property to have an EPC rating of A (15).
Planning
We understand the premises originally had planning consent for Class A3.
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 commercial element of 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.
Licencing
There is currently a Premises Licence in place for the sale of alcohol, further details available on request.
Taxation
Rateable Value (2026): £45,000
Tenancy Information
The premises comprising the ground and lower ground floor are let on a new effectively full repairing and insuring lease for a term of 20 years from 25.02.2026 expiring 24.02.2046 to a new business called La Vida Ltd. There is a tenants break option on 31.03.2031. The rent is reviewed on an upward only basis at every 5 years.
The rent payable is on a stepped basis as follows:
Year 1 £42,500 per annum
Year 2 £45,000 per annum
Year 3 £45,000 per annum
Year 4 £47,500 per annum
Year 5 £50,000 per annum
The tenant has also acquired some inventory at the premises and pays an additional rent as follows but until the end of the 4th year the inventory remains in the ownership of the freeholder:
Year 1 £6,250 per annum
Year 2 £5,000 per annum
Year 3 £5,000 per annum
Year 4 £2,500 per annum
The Vendor intends to top up the restaurant rent from completion to £50,000 per annum in the first year where there is a £1,250 shortfall.
Additionally, there are five flats sold off above which produce an additional £600 per annum. Total rent received therefore £50,600 pax.
S5 notices have been served.
Covenant
The property is let to a new business called La Vida Ltd. The tenant is obliged to pay a rent deposit of £14,166 on or before 1st anniversary of the lease.
Terms
Investment - We have been instructed to market the freehold interest, subject to the existing tenancy and contract, at a guide price of £585,000 which represents a net initial yield of 8.24% (after graduated purchasers costs of 5.01%). No VAT.
VAT
We understand that the property is not elected for VAT.
Legal Fees
Each party to bear their own legal costs incurred.
Anti-Money Laundering Regulations 2017
Anti-Money Laundering Regulations 2017 Due to Government legislation we are legally obliged to undertake Anti-Money Laundering checks on prospective purchasers on transactions which involve a capital value of 15,000 euros or more. We are also required to request proof of funds. Further information available on request.
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.