Burgess Hill is situated in the county of West Sussex in the South East of England, 36 miles south of Central London.
Affluent population with 42.3% of the 15 minute drive time catchment within the top Acorn Group ‘Affluent Achievers’.
Very limited supply of retail warehousing in the town and the surrounding area.
The property was developed in 2013 to a BREEAM standard of ‘Very Good’.
The scheme extends to 54,429 per sq ft GIA.
Let to B&Q plc and Pets at Home Ltd – ‘5A1’ covenants – on 15 year leases with no breaks, giving a WAULT of 11.00 years.
Current income of £869,941 per annum, off low rents of £15.46 per sq ft and £18.57 per sq ft.
The B&Q lease benefits from 5 yearly RPI linked rent reviews with collars and caps of 1.0% and 2.5% per annum compounded.
Significant RPI related reversion in the B&Q rent and potential reversion in the Pets at Home rent, both in 2018.
The property benefits from a ‘wide bulky goods’ planning consent and unimplemented mezzanine consent.
We are instructed to seek offers in excess of £14,810,000 (Fourteen Million, Eight Hundred and Ten Thousand pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.50% (assuming purchaser’s costs at 6.80%).
The yield rises to an anticipated 6.09% following a rent review settlement at £22.00 per sq ft, upon the Pets at Home rent review in July 2018 and the RPI linked B&Q rent review in August 2018.