Investment Property, Mixed Use, Primary Location, Popular Resort Town, Somerset

Investment Opportunity on Freehold basis. 

Gross Initial Yield: 7.57%
Current Rental Income: £56,740 p.a. (before any reviews and increases)
VAT is NOT applicable to this property
Comprises Ground Floor Shop with 2 x 2-Bed and 2 x Studio Flats above (self-contained units with rear independent access) 
Commercial unit Let to The Works Stores Limited for 10 years from 20th October 2022 at a current rent of £30,000 per annum. Fixed rental increase to £32,500 in Year 3 & 4, and £37,500 in Year 5
Open market, upward only rent review October 2027

The Property - 
Ground Floor: Retail Shop 187 sq m (2,015 sq ft)
Open plan retail area, Storage, staff & ancillary area/WC. 
Rear Ground Floor: Detached Studio Flat 25 sq m (269 sq ft)
Double Bed, Kitchen/Living Room, Bathroom
First Floor: Flat 1 47 sq m (506 sq ft)
2 Bedrooms, Kitchen, Living Room, Bathroom
First Floor: Flat 2 47 sq m (506 sq ft)
2 Bedrooms, Kitchen, Living Room, Bathroom
Second Floor: Flat 3 28 sq m (302 sq ft)
Double Bed, Kitchen/Living Room, Bathroom
Total area size: 334 sq m (3,598 sq ft)

Current Agreements: 
The ground floor shop is let to The Works Stores Limited for a term of 10 Years from 20th October 2022 at a current rent of £30,000 per annum on a FRI basis. The Vendor will top-up this rent upon completion, to the equivalent of £32,500 per annum.
Fixed rental increase to - £32,500 in Year 3 and 4.
Fixed rental increase to - £37,500 in Year 5.
Rent review open market, upward only from October 2027.
Tenant option to determine in October 2027 with min 6 months notice.

The First Floor Flat 1 is at present let on AST to an Individual for a term of 12 Months from 31st March 2017 at a current rent of £6,600 p.a. Deposit held of £550.
The First Floor Flat 2 is at present let on AST to an Individual for a term of 12 Months from 23rd January 2021 at a current rent of £7,140 p.a. Deposit held of £686.
The Second Floor Studio Flat 3 is at present let on AST to an Individual for a term of 12 Months from 31st January 2022 at a current rent of £5,700 p.a. Deposit held of £548.
The Rear Ground Floor Studio Flat 4 is at present let on AST to an Individual for a term of 12 Months from 25th July 2022 at a current rent of £4,800 p.a. Deposit held of £400.

Minehead is a busy resort town in West Somerset, offering easy access to the nearby county town of Taunton, and Exmoor National Park which straddles the Devon border into Lynton and Lynmouth beyond. A desirable location with an average residential property value of £350,000, and a busy thriving town centre both in and out of season. To the opposite end of the main shopping area, is a stunning sandy beach with harbour, Butlins Holiday Resort, and a stunning links golf course (the oldest course in Somerset) Minehead is a busy and popular location throughout all seasons and supports several corporate chains including Premier Inn, Lidl, Tesco, Morrisons, Brewers Fayre, and Poundland. Its continued growth is evident with other brands such as Travelodge desperately seeking land for a hotel site.