Prominent Investment Opportunity

50 Dunstable Road, Luton, LU1 1EF

Well Secured Investment Opportunity with Long Term Development Potential

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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• Prominent investment opportunity comprising two detached buildings

• Conference centre &wedding venue with two ground floor retail units

• Self-contained public house with residential upper parts

• Freehold

• Gross site area of 0.75 acres (0.3 ha)

• 24,455 sq ft of existing buildings

• Current income of £149,500 per annum

• Fixed uplifts in rental income from 1st June 2018

• Reversionary rent of £206,175 per annum by 2021

• 25% of the income secured against Enterprise Inns for over 53 years

• Long term development potential (subject to planning)

• Offers invited in excess of £2.9 million

• Capital value of only £118 per sq ft

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Location Luton is a major commercial centre located 33 miles north of London, 22 miles south of Milton Keynes and is situated adjacent to junctions 10 & 11 of the M1 Motorway approximately 2 miles to the west of the town centre. The town also benefits from direct rail links to St Pancras International Station, the City of London and Brighton beyond with both Thameslink and Midland Mainline providing fast and frequent services. London Luton Airport provides a wide range of domestic and international flights and in 2016 saw passenger numbers increase to 14.6m making it the fifth busiest airport in the UK. The airport is currently undergoing a £110m redevelopment plan which will see passenger capacity increase to 18m by 2020.

The subject property is located just to the west of Luton town centre on the A505 Dunstable Road close to its busy intersection with Telford Way & Hatters Way which provides easy access to Junction 11 of the M1 Motorway.

Situation

The property occupies a prominent location on the north side of Dunstable Road at its junction with Francis Street in the thriving Bury Park area of the town. It is immediately adjacent to a Sainsbury’s supermarket with 322 surface car parking spaces and a recently extended Lidl supermarket. There are a wide range of retailing and restaurant uses along Dunstable Road and the property is short walking distance from Luton railway station and the towns extensive retail and leisure facilities. Description

The opportunity comprises two detached buildings. The main building comprises a modern two storey building constructed in the early 1990’s of a steel frame with brick elevations under a pitched roof. The property is arranged to provide two self-contained ground floor retail units, one at the southern end having the benefit of a fully glazed return frontage fronting the Sainsbury’s car park and the other at the northern end fronting Francis Street. The remainder of the ground floor comprises the main entrance and ancillary accommodation to the conference and wedding venue operated under the name of Crescent Hall which is located over the entire first floor. This accommodation benefits from a passenger lift, air-conditioning, double glazing, full kitchen facilities with a bar area and male & female toilet facilities on each floor. Crescent Hall provides full catering for up to 1,000 guests and further information is available at www.crescenthall.co.uk.

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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To the rear of is a detached two storey public house constructed in the early 1970’s which was previously known as the Nelsons Flagship but now trading as Kabanas Bar & Restaurant. The property provides a ground floor bar & restaurant area with offices and residential accommodation on the upper floor having the benefit of a separate entrance. To the rear is a car park accessed from Francis Street which has the benefit of with 43 car parking spaces. It is also possible to park a further 4 cars to the side and front of the property.

Accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and the approximate Gross Internal Areas are set out on the attached tenancy schedule.

Site The site extends to 0.75 acres (0.3 ha).

Planning We understand that planning was granted in 1988 for the construction of three shops, offices and a casino. The property has been used as a conference and wedding venue since 2011.

Tenure

The property is held freehold.

Tenancy Information The property is fully let and income producing in accordance with the attached tenancy schedule.

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Property

Tenant

Size Sq ft

Lease Term

Lease Start

Lease Expiry (Break Clause)

Annual Rent £ Per Annum

ERV

£ Per Annum

Comments

Part Ground Floor

Crescent Hall Events Ltd

4,650

24 Years

01/06/2017

02/05/2041

Yr1 £25,000 Yr2 £35,000 Yr3 £40,000 Yr4 £45,000

£45,000

Ground floor premises with a separate entrance fronting Francis Street. Five yearly rent reviews. No break clauses.

Part Ground

Floor

Textile Centre Ltd

1,195

10 Years

13/05/2011

12/05/2021

£21,000

£21,000

Lease outside L&T Act. Ground floor retail unit fronting Dunstable Road

Part Ground Floor & First

Floor

Crescent Hall Events Ltd

13,557

25 Years

02/05/2016

01/05/2041

(02/05/2021)

£65,000

£101,675

Tenant break clause on 6 months notice. Five yearly rent reviews

Public House

Enterprise Inns (EI Group Plc)

5,053

99 Years

25/03/1972

24/03/2071

£38,500

£38,500

Enterprise Inns have sub-let Seven yearly rent reviews

TOTAL

24,455

£149,500

£206,175

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Tenant Covenants Crescent Hall Ltd is a private company established in 2013. Its business is that of providing a venue for wedding and corporate events and is a very popular wedding venue in Luton but also caters for parties, conferences and charity functions. Crescent Hall has entertained clients for Indian, Bangladeshi, Pakistani, Polish, English and Chinese weddings and events. In the year to 30th June 2016 it reported total assests of £156,184. Textile Centre Ltd is a private company established in 1997. Its business is that of a wholesaler and retailer of textiles both through its own chain of five stores located throughout the UK and to other clothing retailers. In the year to 30th June 2016 it reported net assets of £455,769. Enterprise Inns (now known as EI Group Plc) is one of the countries largest operators of leased and tenanted pubs in the UK having a portfolio of more than 5,000. In the year to 30th September 2016 it reported a turnover of £632m, a pre-tax profit of £75m and shareholder funds of £1,447m.

VAT

The property has been elected for VAT. We anticipate the sale being treated as a Transfer of a Going Concern (TOGC).

Energy Performance Certificates 50 Dunstable Road - D (78) Public House - C (60)

Proposal

We are instructed to seek offers in excess of £2.9 million, subject to contract, to show the following yield profile: Initial Yld - 4.84% June 2018 - 5.17% June 2019 - 5.33% June 2020 - 5.49% June 2021 - 6.68% The net equivalent yield is 6.39% assuming purchasers costs of acquisition of 6.43%.

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

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Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

Prominent Investment Opportunity - 50 Dunstable Road, Luton, LU1 1EF

Further Information For further information, please contact: Paul Jessop MRICS T: 01582 346110 M: 07881 360210 E: paul@jessopco.co.uk

The Vendors give notice that: (1) These particulars are given and any statement about the property is made without responsibility on the part of Vendor and do not constitute the whole or any part of an offer or contract. (2) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (3) No employee of Vendor has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (4) Price or rent may be subject to VAT and any prospective buyer must satisfy themselves concerning the correct VAT position. (5) Except in respect of death or personal injury caused by the negligence of Vendor, the Vendor will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by the Vendor. Oct 2017.