A rare opportunity to acquire an office investment in Penzance with income of £135,550 pa.
Let to an undoubted covenant of "The Secretary of State for Communities and Local Government" on a 10 year lease from 1 April 2018.
The property comprises approximately 15,200 sq ft (NIA) of purpose built space, with 12 demised car parking spaces.
Income of £135,550 per annum (£8.92 per sq ft) with an upward only rent review in April 2023.
Offers are invited in excess of £2,000,000 (two million pounds) subject to contract and exclusive of VAT, which shows a net initial yield of 6.38% after purchasers costs of 6.28% and a capital value of £140 per sq ft.
Penzance is a busy market town with a port located on the southwest peninsular of Cornwell, a short distance from Land's End. The town lies approximately 25miles (45km) southwest of Truro and 77miles (125km) southwest of Plymouth.
The property is located in the town centre and on a prominent corner junction of Clarence Street and Alverton Road opposite the Royal Mail delivery office. Alverton Road leads into The Greenmarket, linking Causeway Head and Market Place which is a pedestrianised retail centre. The property is within walking distance of Penzance Station which provides national rail services to Plymouth, Bristol and London (Paddington).
Nearby occupiers include, NatWest, Lloyds Bank, Boots Pharmacy and other local retail stores. The Town Hall is close by.
Penzance has a residential population of circa 20,000.
The property is formed of 4 floors plus a basement and was purpose built in 1989 as a Government Jobcentre Plus facility. At the rear of the property, there are 12 demised car parking spaces adjacent to a public car park.
The external walls are of cavity construction with metal framed double glazed windows. Internally the offices are in good condition, with carpeted floors and suspended ceilings. The ground floor has been split into a main reception area and a series of meeting rooms. The upper floors are primarily used as office space which are either open plan or have been divied into a series of smaller offices.
The main entrance to the building is on the corner of Clarence Street and Alverton Road. There is a separate staff entrance at the rear of the property adjacent to the demised car parking area.
This Jobcentre Plus outlet serves the western end of Cornwell. The nearest alternate Jobcentre Plus is located 22miles to the east in Penryn which is approximately a 50 minute drive.
On our calculations, the approximate Net Internal Floor Area (NIA) of the offices is as follows:
Ground Floor - 413.5sqm / 4,450 sq ft
First Floor - 369.2sqm / 3,974 sq ft
Second Floor - 367.2sqm / 3,952 sq ft
Third Floor - 262.7sqm* / 2,827 sq ft*
Total - 1,412.6sq m / 15,203 sq ft
* excludes approx. 50sqm (537 sq ft) below 1.5m in height
There are plant rooms, including boiler and meter rooms in the basement. These have been excluded from the above mentioned areas.
The property comes within the Cornwell Council area and has a Rateable Value of £122,000. The hereditament is described as "Office and Premises"
The property is freehold. There is a right of way over part of the public car park for access to the demised car parking spaces.
The property is let to The Secretary of State for Communications and Local Government for a term of 10 years on full repairing and insuring terms from 1 April 2018. The initial rent is £135,550 pa with an upwards only rent review on 1 April 2023. There is a tenant only option to break the lease at the end of the 5th year, subject to six months notice.
Each party is to pay their own legal costs.
The property has been elected for VAT and it is proposed that the transaction is dealt with by way of a TOGC (Transfer of a Going Concern).
Davis Brown for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers, or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Davis Brown or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property; (iv) all rentals and prices quoted are exclusive of VAT (if chargeable)
SUBJECT TO CONTRACT