Property Description
INVESTMENT SUMMARY
• St Peter Port is the pre-eminent retail destination in Guernsey and the Island’s capital.
• The Property is prominently located at the junction of Smith Street, Le Pollet and the High Street which is the centre point of the town centre and the prime retail pitch.
• A rare opportunity to acquire a truly iconic building with a rich history dating back over 150 years.
• Well secured to the excellent covenant of Lloyds TSB Bank Plc for a further 9.5 years.
• Current rent passing of £226,557 per annum with the next rent review being due in December 2024.
• Freehold.
• We are quoting £3,500,000 (Three Million, Five Hundred Thousand Pounds) subject to contract. A purchase at this level reflects a Net Initial Yield of 6.16% after allowing for the deduction of purchasers costs.
The Island of Guernsey is located 30 miles north west of the Normandy coast of France and 70 miles from the south coast of England. It is the second largest of the Channel Islands with an area of 24
square miles (63 square kilometres) with an affluent population of approximately 64,000. The Island is serviced by regular sea and air links to both the United Kingdom and Continental Europe. It also
caters for a large volume of cruise ship visitors and visiting yachts. The town of St Peter Port is the main retailing centre for the Island. The attraction of its retail offer is enhanced by the fact the parking is free all year round in all of St Peter Port’s public car parks. The prime retail area centres around the High Street, Le Pollet and Smith Street and is home to both local and UK national retailers.
Guernsey has a vibrant retail economy with a low town centre vacancy rate. Much of this success is down to the Retail Pathway scheme introduced by The Guernsey Retail Group which sees landlords
and businesses work collaboratively to provide short and medium term rental opportunities at rebased rents. This has encouraged a number of new openings post the pandemic. One of the largest town centre occupiers Creasey’s is currently undertaking a £10 million pound refurbishment of their department store at 15 – 19 High Street including an extension into the former
HSBC bank premises at 13 High Street. This is a further statement of the confidence in St Peter Port’s retail offering
The Property is located in a prime position on the western side of the High Street. More specifically, it is prominently located at the junction of Smith Street, Le Pollet and the High Street. This forms
the core prime retailing area in St Peter Port in a pedestrianised area where footfall is high. Neighbouring retailers include; Boots, Next, Superdry, Creasey’s, Schuh, IQ (Guernsey’s Apple Store) and Clinton Cards to name but a few.
The Property comprises a prominent Listed building which is considered to be one of the most recognisable and iconic buildings in St Peter Port. It has a solid stone construction and the roof is clad
in several materials including slate, lead and copper and incorporates a mansard, flat roof sections, and a number of dormers. There is a feature dome with a cupola which is clad with copper.
The retailing element comprises a full service banking hall and a double fronted retail unit which faces Le Pollet currently sub-let to Derek Birch Limited Jewellers. The upper floors are all occupied
as offices serving the bank’s wider operations.
The lower ground floor office below the banking hall is occupied by Lloyds subsidiary Black Horse Offshore. It comprises a lobby area, small office, a meeting room and disabled WC. At the same level,
there is an ATM room with three ATM’s which is accessible at street level from Le Pollet due to the topography of the site and is available out of hours. A bank vault is situated at basement level.
Above the Banking Hall, the offices are fitted out with suspended ceilings and LED lights with carpeted floors in the bank style. The specification also includes sash style double glazed windows as
well as cassette mounted Daikin air conditioning units. The upper floors are generally used as offices or meeting rooms constructed with demountable partitioning. There is a passenger lift serving all the floors with capacity for 8 people up to 600kg. The retail unit at 4 – 6 Le Pollet has a frontage to Le Pollet of approximately 10 meters (33 feet).
The property is let to Lloyds TSB Bank Plc on a full repairing and insuring lease for 30 years from 9th December 2003 providing 9.5 years unexpired. They are fully occupying the premises and have
been in occupation for over 100 years. The current total rent passing is £226,557 per annum. The rent is reviewed on every 3rd anniversary to the greater of rent passing or market rent. The next rent review is due on 9th December 2024. There was a 15 year break option in 2018 which the tenant chose not to action. Part of the property at 4-6 Le Pollet on the ground floor has been sub-let to Michael Birch t/a Derek Birch Jewellers on a 9 year lease which expired on 23/03/2022 at a rent of £23,000 pa. The tenant is currently holding over.
ADDITIONAL INFORMATION
TENURE Freehold.
TAX There is no VAT payable in Guernsey.
EPC Energy Performance Certificates are not a legal requirement in Guernsey.
PROPOSAL We are instructed to seek offers in excess of £3.500,000 (Three Million Five Hundred Thousand Pounds) subject to contract, reflecting a net initial yield of 6.16% after the deduction of purchaser’s costs.