• City centre multi-let retail investment opportunity
• Prominently located within the city’s prime retailing pitch
Portsmouth is located on the south coast of the UK and is the second largest city Hampshire. It is a major commercial and retailing centre, one of the UK’s main commercial ports and is home to the Royal Navy. Portsmouth is a popular tourist destination with attractions such as Portsmouth Historic Dockyard, which houses HMS Victory and the Mary Rose, the Charles Dickens Birthplace Museum, Spinnaker Tower and the Gunwharf Quays shopping centre.
Portsmouth is located approximately 112 km (70 miles) south west of Central London, 29 km (18 miles) south east of Southampton, 72 km (45 miles) west of Brighton and 80 km (50 miles) south of Reading.
The city benefits from good road communications with convenient access provided into Portsmouth city centre via the M275, which in turn links the city to the M27 and A27 which form the main coastal route. The M27 provides access west towards Southampton and the A27 provides access east towards Chichester and Brighton, as well as to the A3(M) and A3, linking to the M25 and London.
Portsmouth is well connected to the national railway network with two train stations in the city centre; Portsmouth & Southsea Station and Portsmouth Harbour Station. The fastest journey time to London is approximately 1 hour 30 minutes. Portsmouth is also connected via the M27/M23 to two major airports; Southampton Airport, situated approximately 32 km (20 miles) to the north-west and London Gatwick, situated 90 km (56 miles) to the north-east.
Commercial Road is Portsmouth’s principal retail thoroughfare. The subject property occupies a prominent retailing pitch on the northern end of the pedestrianised section of Commercial Road, opposite its junction with Charlotte Street. Nearby occupiers include Argos, Sports Direct, McDonald’s, TUI, Specsavers and Subway.
The property benefits from being in close proximity to the entrance to the Cascades Shopping Centre which provides 60 stores with a wide range of high street and independent boutique style shops. The scheme is anchored by Marks & Spencer, Primark and H&M with other retailers including Next, Lush, Starbucks, Thorntons, TK Maxx and Dorothy Perkins.
250/252 Commercial Road comprises a retail unit on ground floor and part first floor (t/a KFC), plus a betting shop on first floor (t/a Betfred) which benefits from its own separate, self-contained access via Commercial Road.
Pedestrian access is provided at the front of each premises from Commercial Road and vehicular access from the rear via Commercial Place.
The Ground Floor is currently let to Harland South Limited with a guarantee from Amsric Foods Limited (t/a KFC) on a Full Repairing and Insuring lease for a term of 10 years from 25th June 2014, expiring on 24th June 2024. The current passing rent is £60,000 per annum (£62 Zone A). Pursuant to a re-gear of this lease, the break option in June 2019 has been waived in return for the rent reducing at that time to £52,500 per annum (£54 Zone A).
A new reversionary lease has been granted to Amsric Food Limited for 5 years from 25th June 2024, expiring 24th June 2029 at a rent of £52,500 per annum (£54 Zone A). As part of the agreement to enter into 5 year reversionary lease, the tenant has been granted a six month rent free period. In order that a purchaser does not suffer an income shortfall the vendor will top up the rent on completion by way of an adjustment to the purchase price.
The First Floor is let to Done Brothers (Cash Betting) Limited (t/a Betfred) on a Full Repairing and Insuring lease for a term of 5 years from 29th September 2013, which expired on 28th September 2018. The current passing rent is £12,500 per annum. The tenant is currently holding over.
The property is let to Savers Health & Beauty Limited on a Full Repairing and Insuring lease for a term of 10 years from 17th August 2018, expiring on 16th August 2028. There is a tenant’s only break option on 16th August 2023, subject to 6 months’ prior written notice and a 6 month rent penalty (£30,000) if the break is exercised.
The initial rent is £60,000 per annum (£44 Zone A). The lease benefits from an upwards only rent review on 17th August 2023.
We are instructed to seek offers in the region of £1,550,000 (One Million Five Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.0%, assuming standard purchaser’s costs of 6.12% and a reversionary yield of 7.6%.
2. Passing rents at a significant discount to the prime rents within Portsmouth;
3. The property occupies a prominent trading position on Portsmouth’s principal retailing thoroughfare;
6. A purchase at the asking price will provide an investor with an attractive net initial yield;
This shop, retail unit for sale is located in Portsmouth
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