South Street, Dorking

THE OPPORTUNITY

This excellent town centre freehold retail investment opportunity comprises one of Dorking’s primary shop units on the prominent corner where High St, South St and West St converge on the busy A25 offering prominent frontage in all directions, next to Costa Coffee and close to Sainsburys. This unit is also on the main access route by car to Waitrose. The premises  comprises large ground floor retail premises currently let to Waterstones Booksellers Limited on a ten year lease expiring 29.5.23 with the upper floors forming four modernised self contained flats all subject to long leases. We are instructed to sell the freehold title Title No SY227525 subject to the existing leases. The remaining flats being marketed are also available for purchase.

 

 THE RETAIL UNIT

 

The unit is subject to the aforementioned lease granted for 10 years from 30.5.13 to Waterstones Bookshops Limited (Company Reg No 00610095) at passing rent of £40,000 pax which remains the passing rent through to expiry. The freeholder recovers 2/5ths share of the building repairs from Waterstones. The Tenants repair obligations are limited to a Schedule of Condition agreed at lease commencement. 

 

Ground floor sales area               1713 sq ft (159.14 sq m)

Basement (trap door access)        800 sq ft (74.32 sq m)

Kitchenette

WC

 

 THE RESIDENTIAL UPPER PARTS

 

The uppers form four modernised self contained one and two bedroom flats all subject to new 125 year leases. One flat has been sold and three are currently being offered for sale with vacant possession. Each flat provides £100 pa ground rent and share of maintenance costs via service charge.

 

Residential summary

 

Flat 1 First floor flat                    One bedroom flat

Flat 2  First floor flat :       Two bedroom flat

Flat 3  Second floor flat     Two bedroom flat

Flat 4  Third floor flat        Already subject to an existing 125 year lease.

 

PRICE

Offers in the region of £455,000 for the freehold interest with the shop and each flats subject to the respective leases. This represents a yield of 8.75% excluding the additional income to be provided from the ground rent income from the remaining flats if/once sold.OUR CLIENT IS WILLING TO SELL THEIR FREEHOLD INTEREST TO INCLUDE THE REMAINING THREE FLATS WITH VACANT POSSESSION SHOULD THE BUYER BE INTERESTED IN ACQUIRING THE RESIDENTIAL PROPERTIES TOO.

  

VAT

We are advised that the premises is not elected for VAT at present.

 

 COSTS

Each party are to bear their own legal costs in the transaction.

 

BUSINESS RATES

Rateable Value :  £35,000   The Tenant is responsible for business rates under terms of the lease:

 

COUNCIL TAX

 

Each flat is banded separately as follows;

 

Flat 1               Band B

Flat 2               Band C

Flat 3               Band C

Flat 4               Band B

  

EPC

 

EPC’S are available for each part of the premises as follows:

 

Retail unit   :          E (110):      

Flat 1                     D (62)

Flat 2                     E (52)

Flat 3                     D (61)

Flat 4                     E (47)

 

A full copy of the EPC for each unit is available for the above upon request.