Lot 4
Freehold Town Centre Restaurant Investment – Gross Yield 10.8%
6 week completion
Situation
Located near to the junction with Charlotte Street in the town centre, just a few yards from the pedestrianised section of Commercial Road and amongst such multiples as McDonald's, Argos, Savers, Greggs, Poundland, Specsavers, Boots and many others.
Portsmouth lies approx. 70 miles south-west of London via the A3(M) and M27 (Junction 13).
The city is famous for its Naval links and is a major tourist attraction and Port with regular services to the Isle of Wight.
Property
An end of terrace building comprising a Deep Ground Floor L-shaped Restaurant with internal access to Ancillary Storage on first and second floors (see Note 1).
In addition, there is a rear service road for unloading together with a lofty Double Garage.
VAT is NOT applicable to this Lot
FREEHOLD
Note 1: The first and second floors benefit from Planning granted on the 3rd October 2023 for the conversion to 2 × 2 bedroom flats with associated bin and cycle stores - the lessees might implement this consent in the future.
Accommodation
Ground Floor Restaurant (60 Covers)
Gross Frontage 18'2"
Internal Width 15'9"
Rear Width 29'9"
Restaurant Depth 99'11"
Area Approx. 3,240 sq ft
incl. 7 WCs
First Floor Ancillary
Area Approx. 2,518 sq ft¹
Second Floor Ancillary
Area Approx. 301 sq ft¹
________________
Total Area Approx. 6,059 sq ft
Plus Rear Double Garage 14'3" × 23'3"
¹Not inspected by Barnett Ross. Areas supplied by Vendor.
Tenancy
The entire property is to be let on a full repairing and insuring lease to T Bello Group Limited (see Tenant Profile) for a term of 20 years from completion at a rent of £70,000 per annum exclusive.
Rent Reviews 2029 and 5 yearly to RPI with a collar and cap at 1% and 3% respectively.
There are no Tenant Breaks.
Tenant Profile
T Bello Group Ltd form part of the Caskade Group which is a rapidly growing organisation established in 1984. They have a Taco Bell franchise with 52 stores, a KFC franchise with 55 stores and a Pizza Hut franchise with 3 stores, all in the UK.
For Y/E 31.12.22, T Bello Group Ltd reported a T/O of £34.81m, a Pre-Tax Loss of £1.085m and a negative Shareholders' Funds of £1.083m. These figures reflect the costs involved in opening 19 new Taco Bell units in 2022.