Retail premises for sale

Investment For Sale, 1-3 & 10-12, Station Road, Billingham TS23

The property is situated on Station Road in Billingham, a town within the Borough of Stockton-on-Tees in the Tees Valley. The parade lies approximately three-quarters of a mile south of Billingham town centre, around one mile east of Norton and three miles north-west of Middlesbrough, with good road links via the A19 and A1027.
Station Road is an established suburban shopping parade serving the surrounding residential area, with a mix of local occupiers including convenience retail, hair and beauty, takeaways and service uses. The subject parade benefits from customer parking directly in front of the units in the Bullgarth Car Park which is owned and maintained by the Council.
Investment summary

● Freehold
● Mixed-use parade of five shops and two flats in an established neighbourhood shopping location
● Total floor area of approximately 311 m2 (3,352 sq ft) NIA
● Total current income £49,500 per annum, with reversionary potential
● Commercial units let on full repairing and insuring (Fri) leases
● Offers in the region of £550,000 exclusive, reflecting a net initial yield of 8.71% allowing for purchaser's costs at 3.30%, and a reversionary yield of 9.19%
● No VAT

The investment comprises a two-storey end-of-terrace building of rendered construction beneath a pitched tiled roof with brick chimneys, providing ground floor commercial units with two self-contained one-bedroom flats above (10a and 12a Station Road).

Adjoining is a single-storey parade of rendered retail units, part flat-roofed and part beneath a pitched tiled roof, with uPVC shopfronts and entrance doors and roller shutter protection to several units. In total the property provides five commercial units and two flats.

The units front a tarmac forecourt car park with marked bays and a disabled bay, giving customers convenient parking directly outside. Current occupiers include Billingham Mini Market, Ink Driver Tattoo & Piercing, Devine Glow Hair & Beauty and Perfect Fit Alterations Service.
Tenancy schedule

The property is let to five commercial tenants and two residential tenants, producing a total current income of £49,500 per annum. A full tenancy schedule is set out overleaf.
The commercial leases are on full repairing and insuring terms and are within the security of tenure provisions of the Landlord and Tenant Act 1954.
Covenant

The commercial units are let to sole traders/individuals rather than corporate covenants. No trading accounts or credit information have been provided by the tenants, and interested parties are advised to make their own covenant enquiries prior to submitting an offer.
Rates

Each commercial tenant is responsible for its own business rates liability. Current rateable values range from £3,750 to £6,100, below the £12,000 threshold, allowing eligible occupiers to benefit from Small Business Rates Relief. The flats are subject to Council Tax. See Schedule belpow.
Interested parties should verify current assessments with the Valuation Office Agency and Local Rating Authority.
Legal fees

Each party is to be responsible for their own legal fees incurred with any transaction.
VAT

VAT will not be charged on the sale.
Energy performance certificates

Unit 1: B33; Unit 2: B41; Unit 3: B34; 10 Station Road: C59; 12 Station Road: B41; Flat 10a: E51; Flat 12a: Tbc.
Copies will be made available for inspection prior to exchange.
Money laundering

In accordance with the Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
Capital allowances

To be confirmed.
Price

Offers in the region of £550,000 exclusive, reflecting a net initial yield of 8.71% allowing for purchaser's costs at 3.30%, and a reversionary yield of 9.19%.

Accommodation:
Unit 1: 312.00 sqft
Unit 2: 538.00 sqft
Unit 3: 538.00 sqft
10 Station Road: 431.00 sqft
12 Station Road: 653.00 sqft
Flat 10a: 377.00 sqft
Flat 12a : 503.00 sqft
Total: 3,352.00 sqft