Allsop Pre-Auction Snapshot for April 2018

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Glastonbury has a population of approx. 8,932 and is a town located in the Mendip district, which has a total population of 112,500. Mendip is a district within the county of Somerset, which as the GDHI (gross disposable household income) per head of £19,079. Looking at nearby property sales for North Somerset, from January 2017 to January 2018, the total value property sales were approx. £667 million and the total number of property sales 1,801 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is part let to an Individual on a new 15-year lease; therefore, the covenant is not as strong as if a more established company was the occupier. The building is a Grade II listed property, so the development potential is limited.

This Grade II listed property is arranged on ground and two upper floors to provide a ground floor shop with residential and office accommodation above. The upper floors have been sold off on long leases. The property is situated on the north side of High Street, between the junctions of The Archers Way and Market Place as well as adjacent to St. John’s Church. This is an established trading location within the town. There are blue-chip occupiers nearby occupiers, which include Boots Chemist, Post Office and Co-Op Food.

The pre-auction yield is 10.8%, we consider average yields for the Somerset area to be between 6% – 9%. Therefore, if the property is acquired at the guide price, this is a good yield. However, we could see this property selling for above the guide price.

The current Rateable Value for the commercial shop unit is £7,100, while the rent is £15,100. The previous Rateable Value was £9,100 in 2010, so there was a depreciation of Rateable Value.

We consider this investment opportunity as a buy and hold.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Lewes has a population of 101,400 and is a town in the county of East Sussex. The GDHI (gross disposable household income) per head is £20,258 for East Sussex. For Lewes, from January 2017 to January 2018, the total value of property sales was approx. £624 million and the total number of property sales 1,599 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is part let to Done Brothers (Cash Betting) Ltd t/a Betfred, so this is a blue-chip covenant with a further 5 years on the lease. Important to note that there is a break-clause option for 2020. This is a Grade II listed building located in the town centre. Given that it is a Grade II listed property, the development possibilities are limited.

The property is arranged on basement and ground and three upper floors to provide a ground floor shop with ancillary basement accommodation, together with a flat above, which has been sold on a long lease. The property benefits from rear access from Market Street.

The pre-auction yield is 9.0%, we consider average yields for the East Sussex area to be between 5% – 8%. Therefore, if the property is acquired at the guide price, this is a good yield. We could also see this property selling for higher than the guide price.

The current Rateable Value for the commercial shop unit is £19,250, while the rent is £21,000. The previous Rateable Value was £18,250 in 2010, so a slight appreciation in Rateable Value.

We consider this investment opportunity as a buy and hold.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Southampton has a population of 254,300 and is considered the 61^st largest district in England.  The GDHI (gross disposable household income) per head is £15,397.  From January 2017 to January 2018, the total value of property sales was approx. £954 million and the total number of property sales 3,786 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is part let to Power Leisure Bookmakers Ltd t/a Paddy Power, which is a blue-chip covenant. However, important to note that Paddy Power’s leases expires in 2020. The other commercial unit is let to an Individual and is currently holding over, but evidently in advanced talks with the Tenant for a 15-year lease at £19,000 per annum. Therefore, the property is comprising of two shops and upper parts is residential accommodation (sold off on a long lease).

The property is situated on the south side of Poundtree Road, in-between it’s junctions with Above Bar Street and Sussex Road in an established trading location, in the City Centre. Nearby occupiers include Coral & Betfred (both opposite), JD Sports (adjacent) Nationwide, NatWest, Card Factory, TK Maxx and Barclays.

The pre-auction yield is 10%, we consider average yields for the Hampshire area to be between 5% – 8%. Therefore, if the property is acquired at the guide price, this is a good yield. We could also see this property selling for higher than the guide price.

The current Rateable Value for the commercial shop units are £38,000, while the rent is £45,750. The previous Rateable Value was £40,750 in 2010, so there was a depreciation of Rateable Value.

We consider this investment opportunity as a buy and hold.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Salford has a population of 248,700 and is considered a part of Greater Manchester. The GDHI (gross disposable household income) per head for Manchester is £13,307. For Salford, from January 2017 to January 2018, the total value of property sales was approx. £697 million and the total number of property sales 3,074 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Investment Angles:

For the residential 2-bedroom maisonette, a break-up opportunity could exist.  According to Rightmove.co.uk, within a 1 mile radius of the property, 2-bedroom flats are selling for £105,000 to £175,000.

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is let to an Individual, with 2 years remaining on the lease and a rent review in 2019. The property is arranged on basement, ground and two upper floors to provide a ground floor shop with basement ancillary accommodation and a self-contained 2-bedroom maisonette above (holding over).

The property is situated adjacent to Salford Royal Hospital in a local shopping parade on the south side of Eccles Old Road (A576) and close to Junction 2 of the M602.

The pre-auction yield is 11.40%, we consider average yields for the Lancashire area to be between 8% -10%. Therefore, if the property is acquired at the guide price, this is a good yield. We could also see this property selling for higher than the guide price.

The current Rateable Value for the commercial shop unit is £7,600, while the rent is £12,000. The previous Rateable Value was £8,200 in 2010, so a slight depreciation in Rateable Value.

We consider this investment opportunity as a buy and hold.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Swadlincote is a town located in South Derbyshire, which has a population of 100,300.  The GDHI (gross disposable household income) per head is £18,152.  South Derbyshire, from January 2017 to January 2018, the total value of property sales was approx. £491 million and the total number of property sales 2,134 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Investment Angles:

Conversion potential – Part or whole of the property may lend itself to residential conversion subject to obtaining all the necessary consents.

For the residential 89a and 91a, there is a potential break-up value. We estimate that each flat could be sold for £70,000, so a total of £140,000.

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is part let to Intrinsic Facilities Services Ltd and the other two parts let to Individuals. The strength of the covenant is not equivalent to blue-ship, however the remaining lease for the company is 9 years and the Individual 5 years with rent reviews in 2022 and 2021, respectively. The other Individual renting the commercial space is holding over.

The property is comprising of two shops, two self-contained flats and an office suite. This large property is arranged on ground and one upper floor to provide two shop units, one of which is a double unit on ground floor only with two self-contained flats above. The second shop unit is arranged on ground and first floor. To the rear is a ground floor office suite.

The property is situated on the north side of Church Street, in between its junctions with School Street and Thorpe Downs Road, within a local neighbourhood parade. Nearby occupiers include Coral (adjacent) and Tesco Express amongst other local occupiers.

The pre-auction yield is 11.3%, we consider average yields for the Derbyshire area to be between 7% – 10%. Therefore, if the property is acquired at the guide price, this is a good yield. We could also see this property selling for higher than the guide price.

The current Rateable Value for the commercial properties is £19,250, while the rent is £17,694. The previous Rateable Value was £9,500 in 2010, so a significant appreciation in Rateable Value

We consider this investment opportunity as a potential buy and develop or buy and sell.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Grays is the largest town in the borough and unitary authority of Thurrock in Essex. Thurrock has a population of 167,000 and GDHI (gross disposable household income) per head of £17,375. From January 2017 to January 2018, the total value of property sales was approx. £614 million and the total number of property sales 2,093 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is a leasehold (169 years unexpired) and is let to an Individual, although the covenant is not blue-chip, there is still 18 years remaining on the lease with a rent review in 2021. The property is arranged on ground floor only to provide a lock up shop. The property forms part of a larger building, not included in the sale. To the front of the property, the parade benefits from unallocated customer car parking.

The property is located on the East side of Crammavill Street, in an established local shopping parade within a large residential suburb of Grays.

The pre-auction yield is 10.5%, we consider average yields for the Essex, area to be between 6% – 9%. Therefore, if the property is acquired at the guide price, this is a good yield. We could also see this property selling for higher than the guide price.

The current Rateable Value for the commercial shop unit is £11,000, while the rent is £9,983. The previous Rateable Value was £8,500 in 2010, so a significant appreciation in Rateable Value.

We consider this investment opportunity as a buy and hold with potential to increase rent during rent review for 2021.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Macclesfield is a market town in Cheshire with a population of 52,044 and is located in Cheshire East, which has a GDHI (gross disposable household income) per head of £20,756. Nearby, Cheshire West and Chester, from January 2017 to January 2018 had total value of property sales was approx. £570 million and the total number of property sales 2,002 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Investment Angles:

Find strong tenant for the commercial unit and resell in auction or private treaty.

For the residential 4-bedroom maisonette, a break-up opportunity could exist. According to Rightmove.co.uk, within a 3 mile radius of the property, 4-bedroom flats are selling for £115,000 to £369,000.

Blue Alpine’s Pre-Auction Commentary (PAC):

This property is a Grade II listed building and is vacant (both the commercial unit and residential). No. 17 is currently occupied by a charity on a temporary basis at Nil fees, subject to a two week notice period.

The property is comprising a shop and a self-contained flat and is arranged on basement, ground and two upper floors to provide a ground floor shop with basement ancillary accommodation. The upper floors comprise a self-contained maisonette of four rooms kitchen and bathroom.

The property is in Macclesfield, an attractive town lying approximately 20 miles South of Manchester and 8 miles from Junction 19 of the M6. Located on the eastern side of the town centre, fronting Church Street, an attractive and historic street linking the railway station and Mill Street, the main shopping location in the town centre. Nearby occupiers include Martin & Co Estate Agents, Salt Bar, Max Spielmann and other local occupiers.

The current Rateable Value for the commercial shop unit is £6,400. The previous Rateable Value was £11,750 in 2010, so a significant depreciation in Rateable Value.

We consider average yields for the Cheshire area to be between 7% – 10%. Therefore, if the commercial property is acquired at the guide price, and one assumes the commercial rent could be equivalent to the Rateable Value of £6,400, and the average rent per annum for the residential of £7,200, the yield would be approximately 15.11%. We could also see this property selling for higher than the guide price.

We consider this investment opportunity as a long term buy and hold.

Blue Alpine’s Proprietary Scoring: Pre-Auction

Locational Analysis:

Eastbourne is a town located in East Sussex, which has a population of 103,100. The GDHI (gross disposable household income) per head is £20,258 for East Sussex. Eastbourne, from January 2017 to January 2018, the total value of property sales was approx. £710 million and the total number of property sales 2,456 transactions.

Snapshot of Property Pre-Auction:

Tenancy & Accommodation:

Investment Angles:

Find strong tenant for the commercial unit and resell in auction or private treaty.

Blue Alpine’s Pre-Auction Commentary (PAC):

This commercial property is vacant, and the flat is sold off on long lease. The Property is arranged on ground and one upper floor to provide a ground floor shop with a self-contained flat above (approached via a separate rear entrance). To the rear is a lock-up garage let with the flat.

The property is located to the north-west of Eastbourne town centre in the residential suburb of Hampden Park. The property forms part of a shopping precinct situated at the junction of The Broadway and Lindfield Road and serves the needs of the densely populated residential area. The precinct is made up of predominantly local occupiers and a newly opened Co-Operative food store.

The current Rateable Value for the commercial shop unit is £6,100. The previous Rateable Value was £6,100 in 2010, so no change.

We consider average yields for the East Sussex area to be between 5% – 8%. Therefore, if the property is acquired at the guide price, and one assumes the rent could be equivalent to the Rateable Value of £6,100, the yield would be approximately 24.4%. We could also see this property selling for more than the guide price.

We consider this investment opportunity as a potential buy and sell. There is an opportunity to find a strong tenant and resell in an auction of private treaty. There may be refurbishment necessary for the property, which would need to be considered in a detailed cost-benefit analysis.