For Sale

Nottingham – Freehold Bank & Student Investment

12-16 Lower Parliament Street, Nottingham, NG1 3DA

Offers in excess of £4,650,000

Property Types:
Commercial, Student
Sub Types:
Student Accommodation, Retail
Tenure:
Freehold
Net Initial Yield:
6.20%

Income

£307,250pa

Description

  • Nottingham is a historic city and the regional capital of the East Midlands.
  • The city is home to two globally renowned universities which boasts in excess of 60,000 students with Nottingham Trent University named University of the Year 2019 by the Guardian.
  • The property comprises a Prime City Centre Freehold Bank and Student Investment.
  • Ground Floor commercial let to Lloyds Bank plc at a Current Rent Passing of £130,000 per annum for a further 7.75 years.
  • The Lloyds is the only branch in Nottingham city centre.
  • The upper parts comprise 18 studios and 2 one bed flats newly converted in 2018.
  • Located short walking distance from Nottingham Trent University.
  • Situated in the heart of Nottingham City Centre opposite the entrance to Intu Victoria Centre with the city’s retail, leisure and entertainment offerings within short walking distance.
  • Upper parts fully let for academic year 2018/19 subject to Assured Shorthold Tenancies with a current gross rent passing of £177,250 per annum.
  • The student accommodation is 100% pre-let for the next academic year with each unit under offer at higher rents than the current year. The projected gross rent passing for the student accommodation is £186,850 per annum.
  • Nottingham student rental market experienced 3.65% headline growth in 2018/19.
  • Overall Total Current Gross Rent: £307,250 per annum increasing to £316,850 per annum for the academic year 2019/20.
  • We are seeking offers in excess of £4,650,000 for the freehold of the building which reflects an attractive gross initial yield of 6.20% and a gross reversionary yield of 6.40% assuming purchaser’s costs of 6.5%.