Kendal is a popular Lake District market town
Located in a prime retailing pitch
Retail units let to tui (Net Assets £193m) and Greenhalgh’s (Net Assets £15.8m)
Active Management Opportunities on Upper Parts
£600,000, subject to contract
10.2% net initial yield
Kendal is an attractive market town situated on the edge of the Lake District and known as the gateway to the Lakes being situated approximately 32 km (20 miles) north of Lancaster, 53 km (33 miles) north-east of Barrow in Furness and 75 km (47 miles) south of Carlisle.
Kendal benefits from good road communication being situated 9.6 km (6 miles) west of Junction 37 of the M6 Motorway. The town is served by the A65 from North Yorkshire to South, the A591 from Barrow to Ulverston to the North and the A685 from Appleby to the North East. Oxenholme Train Station which is situated on the West Coast main railway line is located 4.8 km (3 miles) to the south-east, providing direct services to London Euston (2 hours 50 minutes) and Glasgow (1 hour 50 minutes).
The town is the third largest settlement in Cumbria, the administrative centre for South Lakeland District Council and a popular centre for tourism.
The property occupies a prime position on the eastern side of Highgate, one of the principal retail locations within the town centre, close to its junction with Finkle Street. Nearby occupiers include Savers (adjacent), Mountain Warehouse, Tesco Express, Phase Eight, tk Maxx, Fat Face, Pavers, Barclays and Halifax.
The property comprises a 3 storey, mid terrace building of traditional stone construction beneath a pitched slate roof.
The ground floor and basement of 5 Highgate comprises a retail unit which has been fitted out by the tenant, Greenhalgh’s, to their usual corporate style.
The ground, basement and part first floor of 5A Highgate comprises a retail unit which has been fitted out by the tenant, tui, to their usual corporate style.
The remainder of the first and second floors of 5-5A Highgate comprises self-contained office accommodation which is accessed via a separate entrance located down a passageway off Highgate, to the south side of the building. The first floor is refurbished and the second floor previously beneffited from planning permission for 3 x 1-bedroom apartments and 1 x 2-bedroom apartments.
The property also includes part of the first floor adjacent building (9 Highgate).
We have been advised that the property provides the following Net Internal Areas:
5 Highgate (Greenhalgh’s)
Ground Floor Sales 74.60 sq m 803 sq ft
Basement 52.30 sq m 563 sq ft
Total 126.91 sq m 1,366 sq ft
5A Highgate (tui)
Ground Floor Sales 109.81 sq m 1,182 sq ft
Basement 15.42 sq m 166 sq ft
First Floor 40.13 sq m 432 sq ft
Total 165.36 sq m 1780 sq ft
5/5A Highgate – First Floor (Simon Gill)
First Floor 110.0 sq m 1,184 sq ft
5/5A Highgate – Second Floor (Vacant)
Second Floor 104.0 sq m 1,119 sq ft
9 Highgate – Part First Floor (Barclays)
Part First Floor 34.1 sq m 366 sq ft
total 540.23 sq m 5,815 sq ft
According to the Valuation Office website the rateable value for the property is as follows:
Address Description Rateable Value
5 Highgate Shop & premises £19,500
5A Highgate Shop & premises £27,750
1st Floor, 5A Highgate Beauty Salon & Premises £6,200
2nd Floor, 5-5A Highgate Offices & Premises £6,400
The business rate multiplier is 49.1 pence per pound.
The ground floor and basement is let to Greenhalgh’s Craft Bakery Limited on a effectively a Full Repairing and Insuring lease for a term of 10 years from 9th May 2012, expiring on 8th May 2022. The current passing rent is £22,000 per annum which, based on our analysis, equates to £42.50 Zone A.
The ground floor, basement and part first floor is let to tui Retail Limited on effectively a Full Repairing and Insuring lease for a term of 5 years from 29th August 2018, expiring on 28th August 2023. There is a tenant’s option to break on 30th August 2021, subject to at least six months’ prior written notice. The current passing rent is £27,640 per annum which, based on our analysis, equates to £42 Zone A.
The tenant has been in occupation since May 2003 and renewed their lease in August 2018.
5/5A Highgate – Part First Floor
Let to Simon Gill on effectively a Full Repairing and Insuring lease for a term of 4 years from 1st July 2016, expiring on 30th June 2020. The current passing rent is £7,000 per annum.
5/5A Highgate – Second Floor
The second floor is under offer to psj (Kendal) Limited for a term of 5 years with a tenant's option to break at the end of the third year, subject to 6 months' prior written notice. The agreed initial rent is £5,500 per annum. A copy of the Heads of Terms is provided in the Data Room.
Planning consent was previously obtained to convert this space into 3 x 1-bedroom apartments and 1 x 2-bedroom apartments. This planning consent lapsed in February 2017.
9 Highgate – Part First Floor
Let to Barclays Bank Plc on an Internal Repairing and Insuring lease for a term of years from 1st March 2015, expiring 6th March 2022. The current passing rent is £2,000 per annum.
Therefore, assuming the second floor letting completes, an investor will benefit from a total income of £64,140 per annum.
Tui UK Retail Limited has reported the following figures:
30th September 2018 30th September 2017
Turnover £180,000,000 £201,000,000
Pre-Tax Profits (Loss) (£15,000,000) £1,000,000
Total Assets £559,000,000 £784,000,000
Shareholders’ Funds £193,000,000 £196,000,000
tui UK Retail Ltd is a subsidiary of the tui ag Group, a multi-national travel company dating back to 1923. Tui have been voted the ‘World’s Best Leisure Airline’ at the World Airline Awards for five consecutive years and operate from over 600 travel agencies in the UK. The tui Group is listed on the London Stock Exchange in the ftse 100 Index.
In 2018 tui Group reported a turnover of €19.5 bn, and an underlying ebita of €1,147 m.
For further information visit .
Greenhalgh’s Craft Bakery Limited (Co. No 00580014) has reported the following figures:
31st January 2018 31st January 2017
Turnover £27,273,012 £25,085,000
Pre-Tax Profits (Loss) (£591,382) (£370,970)
Net Assets £15,769,390 £16,343,184
Greenhalgh’s is a long-established family Craft Bakery which was founded in 1957. The Company employs approximately 950 staff with a chain of 61 retail shops, along with a wholesale and fleet sector, supplying high quality bakery products to convenience stores, high street retail stores, farm shops and sole proprietorships, through to nationwide providers including major supermarket chains. The company also supplies to a network of hotels, airlines, garden centres, theme parks and motorway service stations together with an established export market. The Company operates from two manufacturing sites in Lostock, Bolton.
For further information visit .
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (togc).
The adjoining property, 3 Highgate, was sold in September 2019 for £545,000 reflecting a net initial yield of 8.0%. Arranged over ground and part first floor, the property is let to Savers Health & Beauty Limited for a term of 10 years from 12th June 2017, subject to a tenant’s break option on 12th June 2022, at a passing rent of £46,000 per annum.
Our client is seeking a figure of £600,000 (Six Hundred Thousand Pounds), subject to contract. Assuming a total income of £64,140 per annum, this reflects a net initial yield of 10.2%, after allowing for standard purchaser’s costs of 5.05%.
Please note that a purchaser will be re-charged the cost of the searches which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of 1% of the Purchase Price plus VAT.
An opportunity to acquire a freehold investment in a popular Lake District market town;
The property occupies a 100% prime retailing pitch;
Ground floor retail units let to the secure tenants of tui (Net Assets £193m) and Greenhalgh’s (Net Assets £15.8m);
Opportunities for asset management including converting the upper floors to residential, subject to planning;
A purchase at the asking price reflects an attractive net initial yield;
Attractive lot size for an investor.
For full details please visit our website or view PDF brochure below
* Sizes listed are approximations. Please contact the agent to verify actual sizes.