Chester – 157-167 Foregate Street
Investment Considerations
Chester is the largest City in Cheshire West, serving as its’ commercial and administrative centre.
Substantial two storey property. With a car park roof resurfaced 2024 with 10-year warranty.
Located on one of the busiest arterial routes into the City – a few metres from the City Centre.
Fully let to three commercial tenants, with additional car parking income.
Total rental Income: £164,489.16 ( 50% secured by blue chip companies).
Additional Fixed Service charge income £9,600pa.
MyDentist passing rental devalues to a low level of £10.72 overall – considered highly reversionary at next review.
Leases on IRR terms with full Building insurance premium reimbursement.
Property held in SPV, (no debt) for sale as 100% shareholding (meaningful SDLT savings).
Probable carry forward tax allowance loss of £175k plus.
Offers over £2m, reflecting 8.02 % initial return (net of reduced SDLT) purchasing costs at 2.5%. This rises to 8.7% including fixed service charge contributions.
Chester
Chester is one of the strongest retailing centres in the UK and a major national tourist destination. In addition, the city is the administrative centre for Cheshire and serves a resident population of approximately 120,000, rising to over 560,000 within 20 km (12.5 miles).
It is located approximately 32 km (12 miles) south of Liverpool, 56 km (35 miles) south-west of Manchester and 331 km (205 miles) north of west of London.
It has excellent road and rail connections to Liverpool and Manchester, via the M53/M56/ M6 networks and is the springboard into North Wales via the A55 expressway, and mainline rail route to Holyhead.
The historic nature of Chester City Centre is also a significant tourist draw, attracting an estimated eight million overnight visitors to the city each year, generating annual revenue of £1.2 Bn and supporting over14,000 jobs.
This property being a 5-minute walk from Chester Mainline Railway station, and just a few metres away from Prime pitch City Centre Retailing.
Demographics
The Chester area has a very strong services employment base employing some 81% of the city’s working population.
There has been a number of large, high profile service sector employer relocations to the city over the past 10-15 years, with some 32% of the Urban Area Population (UAP) now employed in the banking, finance and business sectors, (compared with 17.5% nationally).
Over 60% of the UAP is employed in growth industries, (compared with 53% nationally).
Class Groupings: 27% of the UAP are Class AB compared with 23.5% nationally
Home Ownership: 68.3% of houses owner occupied, compared with 62.5% nationally..
Car Ownership: 83.3% of the Chester UAP own either one or two cars compared with 78% nationally.
Chester University employs approximately !,900 staff and attracts nearly 20,000 students to its campus’s pa.
Property
This property was originally constructed as the main motor vehicle showroom for ‘Henleys’, and when acquired by the current owners some 25 years ago, had previously been used as their main HQ, originally serving a much larger site behind, which has now been redeveloped for apartments.
This property presents as two storeys to the front, but much of the first floor to the rear of the offices is actually given over to car parking accessed by a vehicle ramp from City Road.
The first-floor office suite also derives its access from this car park.
The ground floor comprises two large commercial spaces, Both having full height shopfronts and each sharing a rear loading/ service corridor accessed by doors and roller-shutter protected, leading onto a shared level access service yard on Russel Street.
The larger unit 1 is tenanted to Whitecross Dental Care Ltd t/a MyDentist, who relocated a smaller practice in 2023. This property has been completely remodelled to create 17 surgeries and ancillary space, and has a rear frontage to Ethos Plaza.
Unit 2 is occupied by Kutchenhaus, a designer kitchen business which has a number of outlets across North-West England.
The office suite at first floor is accessed from the roof level and is occupied by
Relive Physiotherapy, who expanded a smaller business into this suite a few years ago.
Accommodation
Unit 1: 7,228 sq ft (671 sq m)
Unit 2: 2,476 sq ft ( 230 sq m)
First Floor Offices: 1,584 sq ft (147 sq m)
Tenant’s Covenant Information & Service Charges
Unit 1 – MyDentist
Whitecross Dental Care trade as MyDentist and are one of the UK’s largest dental businesses. They have been trading in the UK for over 25 years with over 500 trading locations, treating over 4 million patients and with a turnover of £334.4m (2023 accounts).
They have an international credit score of B and net assets of £13.4m
The guarantor company, First Choice Dental Limited (Co. Number 05943470) has an international credit score of A, with Current assets of £195.37m (2023 accounts)
Unit 2 – Kutchenhaus https://uk.kutchenhaus.com/
MA Design (Chester) Limited, company number 11264203, are a NW franchisee partner for this exclusive German Kitchen Brand. The parent company having over 24 UK outlets across the UK. They established this showroom in 2018, and the March 2023 filed accounts show net assets of £158,261.
Offices: – Relive Physiotherapy Ltd. https://www.relivephysiotherapy.co.uk/
Relive Physiotherapy expanded their existing business relocated to Foregate Street in 2022. The two-director business operates this as a single outlet for their business.
EPC’s
Available on request.
Tenure
Freehold subject to the tenancies described above.
Proposition
The asset is available by way of a sale of the entire company shareholding.
Costs
Each party will be responsible for their own legal costs.
Anti Money Laundering Compliance
Purchasers will be required to submit to and satisfy such Anti Money Laundering checks as may be required.
Viewing
Strictly by arrangement with the sole agents kenneymoore.
Subject To Contract