Investment: Lloyds Bank, North Shields, Tyne and Wear, NE29 0AU
- Located on pedestrianised section of high street with return frontage to West Percy Street. Nearby occupiers include Newcastle Building Society, Leeds Building Society, 4 Seasons Fruiterers and YMCA.
- 10 year FRI lease to Lloyds Bank PLC from 28 February 2013
- 4.5 years unexpired
- Rent increased to £33,300pa at February 2018 review from £32,300
- Passing rent reflects £21 per sq ft ITZA. Recent lettings on this section of Bedford Street have achieved £21 – £23.50 per sq ft ITZA.
- Tenant has undertaken an extensive refurbishment in past couple of years to the sales area.
- Lloyds are a blue chip covenant with turnover in excess of £21bn and pre-tax profit of £5bn for year ending 31.12.17
- Client is looking for £425,000 for freehold interest which reflects a NIY of 7.5% assuming purchase costs at 4.33%.
- Property is not elected for VAT
The property comprises a prominent retail two storey building arranged as a retail unit at ground floor with associated offices and facilities at first floor and storage facilities and walk in safe within the basement. There are two staircases between ground and first floor and a lift which serves all floors. The property is finished to a high specification throughout.
- Prime Retail
- Lloyds Bank
- High Street
The property is let in its entirety to Lloyds Bank PLC at a passing rent of £33,300pa for a term of ten years from 28th February 2013 on full repairing and insuring terms. The rent increased at the recent rent review from the previous passing £32,300pa. Lloyds Bank PLC has been a tenant at the property since 1997, having previously owned the property prior to this. An extensive refurbishment of the property was undertaken by the tenant during 2016.
Lloyds Bank PLC are a blue-chip covenant and for the year ending 31 December 2017 had a turnover of £21.86bn and pre-tax profits of £5.03bn. The company has a net worth of £47.67bn and a Creditsafe Score of 86/100.
The passing rent of £33,300pa equates to £21 per sq ft ITZA and, the increase achieved at the February 2018 rent review, reflects the general increase in rents over the past five years along the pedestrianised section of Bedford Street. Recent lettings of neighbouring units have achieved rents ranging from £21.50 per sq ft to £26 per sq ft.