MIXED RETAIL/RESIDENTIAL INVESTMENT FOR SALE - ROMA COURT, PENPOL TERRACE, HAYLE TR27 4BQ - Hayle - Cornwall

LOCATION:
Hayle lies at the western end of the Cornish peninsula on the north coast of the county at the head of the Hayle Estuary. The town has a resident population of around 9,000 persons which increases considerably during the holiday season due to the popularity of the area as a tourist destination. Hayle lies in the former district of Penwith, now incorporated in the Unitary Authority of Cornwall, and is midway between Camborne and Penzance. Communications are good with the A30 trunk road skirting around the southern perimeter of the town while the Marsh Lane Retail Park incorporating Next, Boots and Marks and Spencer has proved most successful.

SITUATION:
The properties are situated within the popular retailing section of Foundry Square in close proximity to many of the town’s busy pubs, restaurants and retail units. The town’s railway station is situated in proximity as is the main Foundry Square car park, albeit the property does also benefit from its own commercial parking to the front and private parking to the rear.

DESCRIPTION:
The well-constructed 1970’s property offers retail investment at ground floor level producing a total income of just over £50,000 per annum. The six flats, situated on the first and second floors, are presently all occupied under Assured Shorthold Tenancies but, subject to refurbishment, are capable of either being sold off individually or used as holiday accommodation benefitting from views across Hayle Bay towards Lelant and Porthkidney Beach. A shared car park at the front provides beneficial short stay parking to the retail units, comprising a small McColls supermarket along with Dominos takeaway pizza. To the rear are situated 12 garages providing private parking for both the flats and additional income from letting to residents within the vicinity.

SALE PRICE:
£1,800,000 (One Million Eight Hundred Thousand Pounds). Consideration would be given to selling the commercial investment separate to the first and second floor residential flats.

LEASE DETAILS:
The ground floor comprises, fronting Penpol Terrace and the communal car park, two self-contained separately leased units as follows:

McColls, 12/13 Penpol Terrace
10-year lease commencing 23rd June 2021 at £28,500 per annum on proportional full repairing and insuring terms. The tenant has the option to determine the lease at the end of the fifth year by giving due notice. The lease contains five yearly upward only rent reviews.

DP Reality Limited (t/as Dominos), 14 Penpol Terrace
20-year lease commencing 8th December 2015 at present passing rent of £22,000 per annum. The tenant is responsible for internal repair and decoration and contribution to insurance. There is a tenant break clause at the end of the fifth year. The tenant has the benefit of a break clause with effect form 7th December 2025 by giving prior notice. The rent reviews are fixed with the agreed rent effective from 8th December 2025 increasing to £26,000 per annum and with effect from 8th December 2030 to £28,000 per annum. There is an option for the tenant to extend the lease.

The six residential flats are all let under Assured Shorthold Tenancies producing an annual income of £51,600 (effectively £695 per calendar month each) with the most recent letting at £795 per calendar month.

The 12 garages are situated to the rear of the property. The shops have one garage each as do the six flats. The four remaining garages are let out separately at a rent of £20 per week equating to a total income of approximately £4,160 per annum. The total rental income at present is therefore approximately £104,500 per annum increasing to £108,500 per annum in 2025 with the Dominos fixed rent review.

Advertising Rights
The billboard, comprising eight panels, brings in an income of £1,460 per annum.

The total income at present is therefore £107,720 with the potential to increase the rental on the remaining five flats.

ACCOMMODATION: (all dimensions and areas are approximate)

Ground Floor

McColls
Approximately 130.3 m² (1,400 ft²) retail space along with ancillary kitchen, store and toilet facilities.

Externally the shop benefits from shared parking to the front along with an individual garage to the rear.

Dominos
52.7 m² (567 ft²) retail space along with ancillary kitchen/remainder of 11.2 m² (121ft²), storeroom and toilet facilities.

The property benefits from shared parking to the front along with individual garage to the rear.

First/Second Floor Residential
The six flats are of identical layout incorporating two bedrooms, lounge, separate kitchen area and bathroom. The flats have views across the harbour towards Lelant and Porthkidney Beach.

Approximate gross internal area: 68 m².

BUSINESS RATES/COUNCIL TAX:
The properties are assessed accordingly:

McColls “Shop and Premises” Rateable Value £20,500
Dominos “Takeaway and Premises” Rateable Value £14,000

Residential
Each of the flats are assessed at Council Tax Band A.

Cornwall Council are the charging authority and enquiries regarding the rates payable should be made with them - Tel: 0300 123 4171.

VAT:
We understand the property is not registered for VAT.

ENERGY PERFORMANCE CERTIFICATE:

McColls
The property has a rating of 65 (Band C)
Certificate Reference Number: 6487-9108-8141-4606-6777
Property Reference Number: 2040-8290-6391-3713-8856

Dominos
The property has a rating of 86 (Band D)
Certificate Reference Number: 9479-3023-0250-0800-6195
Property Reference Number: 0220-0346-4739-5924-5002

Flat 6 Band E

Flat 7 Band D

Flat 8 Band E

Flat 9 Band D

Flat 10 Band D

Flat 11 Band D

SUMMARY:
The property offers a great investment income secured from two good quality commercial/retail tenants. The six flats above again offer a good rental income but also the possibility to refurbish and sell off individually on long leases to create a developers profit. Alternatively, the flats are suitable for second homes and holiday lets which would increase the income benefitting from the popularity of Cornwall as a tourist destination.

MONEY LAUNDERING REGULATIONS:
In line with The Money Laundering Regulations 2017, Charterwood are obligated to verify ID for all clients that are conducting property transactions through the Company.

VIEWING:
By appointment through sole agent Charterwood on (01872) 261216.
Contact Chris Waters or Rosie Brenton.