Retail/office investment in heart of Clacton town centre.

Retail/office investment in heart of Clacton town centre.

  • Located in a prominent location in Clacton town centre. 
  • 7 retail units, large office suite with flats above (sold off).
  • Tenants include an NHS Trust, Dominos Pizza and Salvation Army.
  • Income £147,465.84 from July 2022.
  • Large rear car park, with permission on part for two houses. 

FOR SALE BY AUCTION ON 20th JULY 2022 (NO VAT).

Property Location

Reunion House,
27-43, Jackson Road,
Clacton-on-Sea CO15 1JA.
Property Specification
Description

The property comprises a substantial property in Clacton town centre, on ground and three upper floors. There is a forecourt onto Jackson Road in front of the retail units, and a large secure car park to the rear, accessed from Ellis Road. This car park has an electricity sub-station and also houses refuse compounds for all occupiers. recently planning permission has been granted (on appeal) to a part of the car park fpor the construction of 2 no. semi-detached houses - application 20/00960. Details on request.

Accommodation/Tenancies

Shops                          Area (sq. ft.)                Description                                                                                                                                                                               EPC       Current Rent

27, Jackson Road        625                         Let to an individual, as a health and beauty salon. Lease expires on 14th January 2026.                                             E            £10,250 p.a.

29, Jackson Road       698                         Let to an individual, as a haberdashery/fabric shop. Lease expires on 28th September 2025.                                     E           £10,450 p.a.

31, Jackson Road       698                         Let to an individual, as a fast food takeaway. The lease expires on 13th March 2024 but the tenant is currently

in discussions for a new 10 year lease.                                                                                                                                        C           £11,000 p.a.

33, Jackson Road       735                         Let to an individual, as a convenience store. The lease expires on 5th February 2025.                                                    F           £11,000 p.a.

37, Jackson Road    1,114                          Let to D P realty (Dominos Pizza) for a term expiring on 15th September 2028, with a rent review in 2023.             E          £14,800 p.a.

39/41, Jackson Road  1,026                    Let to Salvation Army Trustee Company as a charity shop. The lease expires in August 2023, and there is a

rent review in August 2022.                                                                                                                                                    E (39) & G (41)  £17,000 p.a.

43, Jackson Road       698                       Let to two individuals, as a nail bar. The lease is due to expire on 23rd May 2023.                                                              E           £11,000 p.a.

Rear of 27/42, Jackson Rd                     Sub station let to EDF Energy Networks plc for a term expiring on 23rd June 2023.                                                         N/A        £1,940.84 p.a.

First Floor Offices   4,996                       Let to Essex University Partnership University NHS Foundation Trust for a term expiring on 20th July 2022.

However, the tenants have just complete a new lease for a further 5 years from 21st July 2022, at £60,000 for

the first three years, rising to £62,500 in Year 4 then to £65,000 in Year 5. The new lease excludes Sections 24

to 28 of The Landlord & Tenant Act 1954 and there are tenant-only options to break at the end of Years 3 and 4.          E      £58,500 p.a.

The current income is therefore £145,965.84, however rising to £147,465.84 with effect from 21st July 2022.

The second floor comprises 9 flats (Flats 10 to 18) and the third floor a further 8 flats (Flats 19 to 26). All of the flats have been sold off on 999 year ground leases at peppercorn rents. Each flat contributes to a service charge which repairs and maintains the car park and common parts.

All of the commercial leases are effectively full repairing and insuring, contributing to the service charge detailed above, with the exception of EDF Energy Networks.

Price

The guide price for the auction is £1,500,000 (one million five hundred thousand pounds) for the freehold interest, reflecting a gross yield of 9.8% on the rental income. We understand that VAT will not be charged on the sale price.

For further information on this property, please contact the joint auctioneers, Joel Smith of Dedman Gray (01702) 311051) or Jon Ablewhite of Morley Riches & Ablewhite - jon@mrallp.co.uk or (01206) 505707.

 

 

 
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