102-108 High St 8,010 SF 100% Leased Retail Building Redcar TS10 3DL $587,068 CAD ($73.29 CAD/SF) 11.71% Cap Rate

Investment Consideration:
Gross Initial Yield: 11.71%
Rental Income: £36,880 p.a.
VAT is applicable to this property. TOGC available.
Comprises 2 ground floor shops No.106 and 102-104 and self-contained offices at first floor No.108
Shop No 102-104 and first floor offices let to the same tenant until July 2037. Rent reviews linked to RPI every 5 years. Tenant break clause in 2031.
Offices benefit from access from the High Street, as well as via external staircase at rear, providing future residential development potential, subject to planning
Situated in the heart of the town centre with nearby occupiers including Sports Direct, Iceland, Morrisons, B&M, The Works, Costa Coffee, Café and many more.
Property Description:
The property comprises 2 retail shops (102-104 & 106) at ground floor and self-contained offices at first floor (108). Shop (102-104) and Offices have been let to the same tenant t/a Charitable Aid Foundation. First floor benefits from access from the High Street, as well as external staircase at rear, providing the following accommodation and dimensions:
Ground Floor No.102-104: 400 sq m (4,305 sq ft)
Open plan retail, storage, office, kitchenette, wc
Ground Floor No.106: 180 sq m (1,937 sq ft)
Open plan retail, storage, office, kitchenette, wc
First Floor No.108: 173 sq m (1,862 sq ft)
8 office rooms, kitchen, wc
Total GIA: 753 sq m (8,104 sq ft)
Future residential development potential of first floor offices, subject to vacant possession and obtaining planning.
Tenancy:
No. 102-104 is at present let to The Imaginarium Creative Studios Ltd for a term of 12 Years from 1st August 2025 at a current rent of £20,000 p.a. and the lease contains full repairing and insuring covenants. Rent review every 5 years linked to RPI. Tenant option to determine on 01.08.31 with min 6 months notice. Deposit held of £5,000. Lease within Landlord & Tenant Act 1954
No. 108 is at present let to The Imaginarium Creative Studios Ltd for a term of 12 Years from 1st August 2025 at a current rent of £5,000 p.a. and the lease contains full repairing and insuring covenants. Rent review every 5 years linked to RPI. Tenant option to determine on 01.08.31 with min 6 months notice. Deposit held of £1,250. Lease within Landlord & Tenant Act 1954. Tenant benefits from rent free period until 30th July 2027. The vendor will top up rent, so the buyer received the equivalent to £5,000 p.a. from sale completion
No.106 is at present let to Farplace Animal Rescue* for a term of 10 years from 20th August 2019 at a current rent of £11,880 per annum and the lease contains full repairing and insuring covenants. No breaks. *Farplace Animal Rescue has sublet the premises to the charity DC Mobility Ltd. Farplace remains liable for the lease. Farplace are an animal welfare charity that operate from 39 charity shops across the UK and have been established since 2008.
Location:
The property is situated in the heart of the town centre on the south side of High Street, close to Regent Walk Shopping Centre where retailers include Home Bargains and JD Sports. Other nearby occupiers of the High Street include Iceland, Morrisons, B&M, The Works, Wilko, Costa Coffee, Greggs, Sports Direct and WHSmith, amongst others.