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Brighton – High Street Bank Investment Opportunity

HSBC, 153 North Street & 2 Bond Street, Brighton, BN1 1RE

Property Type:
Commercial
Sub Type:
Retail
Tenure:
Freehold

Income

£304,974 per annum

Description

  • Brighton is a major commercial centre in the south east located approximately 53 miles south of London.
  • City centre High Street bank totalling approximately 10,684 sq ft.
  • The city benefits from a strong tourism economy with approximately 11 million visitors per annum.
  • Situated on one of the main retail pitches within the city centre and commands a prominent corner position.
  • Freehold.
  • Current income of £304,974 per annum.
  • Unexpired lease term of approximately 8.75 years.
  • Let to the 5A1 covenant of HSBC Bank Plc.
  • The rent is reviewed annually in line with RPI with a collar and cap of 3%-5%, additionally there is an upwards only market rent review in 2023.
  • Offers are sought in excess of £5,200,000 subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 6.60%.
  • Assuming the collar of 3% a purchase at this price gives a reversionary yield in:
    2020: 5.67%
    2025: 6.57%