Retail and Residential Investment/Development Opportunity
63 High Street | Hythe | CT21 5AJ
offers in the region of
Attractive property occupying prominent corner position within Hythe
Available with vacant possession
Upper parts offer development opportunity with planning consent recently granted for residential accommodation
Offers in the region of £400,000 (£80 per sq ft / £860 per sq m gross external), subject to contract
Hythe is a popular coastal town located within the district of Folkestone and Hythe in Kent. Folkestone is approximately 13 miles to the east with Ashford approximately 24 miles north west. Road links are good with the M20 situated less than 4 miles away. The nearest train station is at Sandling which is less than 2 miles from the town, where regular trains travel to the Capital in around an hour and 40 minutes. The Eurotunnel at Folkestone, which offers regular crossings to France, is only a 15 minute drive from Hythe.
The subject property occupies a prominent corner position within the centre of High Street, opposite the junction with Mount Street, immediately adjacent to a Costa Coffee unit. The site extends along Great Conduit Street through to Batholomew Street at the rear.
The town generally attracts good quality independent operators, popular with tourists and residents alike. There are also several national occupiers in the town including Aldi, Boots, Nationwide and Cancer Research. The property is within the Hythe Conservation Area.
The property comprises a vacant commercial unit on the ground floor with ancillary accommodation on part of the first floor. The remainder of the first floor and the second floor currently comprise a vacant residential flat.
Plans of the existing accommodation are available to download, showing the self-contained nature of the upper floors and access points from the street.
The property provides the following accommodation in accordance with a Plowman Craven measured survey which is available to download:
|Ground||204.5 sq m||2,201 sq ft|
|First||204.9 sq m||2,206 sq ft|
|Second Floor||55.5 sq m||597 sq ft|
|Total Gross Internal Area||464.9 sq m||5,004 sq ft|
A detailed breakdown of the accommodation can be found within the measured survey. A summary breakdown of the existing commercial areas is as follows:
|Retail Ground Floor||97.2 sq m||1,047 sq ft|
|Retail ITZA||63.2 sq m||680 sq ft|
|Office||31.7 sq m||342 sq ft|
|Storage||34.5 sq m||371 sq ft|
|Ancillary||48.3 sq m||520 sq ft|
|Overall Total Net Internal Area||211.7 sq m||2,280 sq ft|
|Gross Frontage||6.78 m||22 ft 3 inches|
|Retail Depth||14.51 m||47 ft 7 inches|
|Built Depth||24.72 m||81 ft 1 inch|
Planning permission has been obtained to convert the upper accommodation into three flats under application 20/0488/FH: Flat 1 will comprise a 1 bed flat on the first floor of 39 sq metres (420 sq ft); Flat 2 will comprise a 2 bed flat over first and second floors totalling 76 sq metres (820 sq ft); Flat 3 will comprise a 2 bed flat on the first floor of 60 sq metres (645 sq ft).
Full plans of the development, as well as the Design and Access Statement, are available to download.
The property is offered with vacant possession.
Residential Capital Values:
Our enquiries indicate that residential accommodation above commercial in the area has a current value in the order of £300 per sq ft / £3,220 per sq m. For example, we are aware of a two apartment at The Maltings which sold in May at £235,000 (£300 per sq ft / £3,220 per sq m), and we are aware of a one bed apartment on Great Conduit Street available at £139,000 (£300 per sq ft / £3,220 per sq m).
Accordingly, we suggest that the residential accommodation after redevelopment will command values in excess of:
|Flat 1||1 Bed||£135,000|
|Flat 2||2 Bed||£175,000|
|Flat 3||2 Bed||£200,000|
Residential Rental Values:
Based upon our enquiries, we suggest that the new flats will command rents in the order of:
|Flat 1||1 Bed||£600 per month|
|Flat 2||2 Bed||£700 per month|
|Flat 3||2 Bed||£800 per month|
|Total||£2,100 per month|
Retail Capital Values:
We suggest that the retail unit will command a rental value in the order of £18,500 per annum. In arriving at our opinion, we have had regard to recent lettings and assignments of units in secondary positions – 137/139 High Street let at £14,000 per annum, £25 Zone A, was subject to an assignment in February 2020; 109 High Street was let in September 2020 at £9,000 per annum, £19 Zone A.
The property has not been elected for VAT.
We are seeking offers in the region of £400,000 (Four Hundred Thousand Pounds), subject to contract, for the freehold interest.
The asking price represents only £80 per sq ft / £860 per sq metre on the existing gross internal area.
Allocating an investment yield of 7.0% to the retail accommodation equates to a value of only £257,500, leaving an allocated value for the upper parts of £142,500 in comparison to anticipated sales at £375,000. In addition, the gross income yield on the residential accommodation in relation to the residential values will be an attractive 5.75%.
Please note that a purchaser will be re-charged the costs of searches which are provided in the data room.
An opportunity to acquire a freehold retail and residential development opportunity in an attractive town;
The property occupies a prominent position within the town centre;
The property is offered with vacant possession;
Planning permission has been obtained to create three flats over the first and second floors;
Attractive lot size to an investor;
A purchase at the asking price reflects a capital value at a significant discount to the residential exit values, by applying a fair investment yield to the retail accommodation.
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|Cradick Retail||+44 (0) 189 251 5001|
|Emma Clarkeemail@example.com||+44 (0) 189 270 7512|