Midland investors looking for sound long-term tenants are likely
to show strong interest in the latest Bigwood auction.
The sale, at the Warwickshire County Cricket Ground, Edgbaston,
on Wednesday July 22 at 11am will feature sought-after properties
in Wolverhampton, West Bromwich and Birmingham, among others.
The city's biggest commercial property auction offers solid
investment opportunities, according to Bigwood.
Director Ian Tudor said: "One of the principal lots is a modern
petrol station with convenience store in Dysart Way, Leicester, let
to Total UK Limited for 24 years with effect from 1995.
"The passing rent is £222,037 pa subject to five-yearly
upward stepped increases, the next in 2010 when the rent increases
to £270,142 per annum. The guide price is £3.1 million,
with a net yield calculated at 10.4% in 2015, with initial yield of
7% on the passing rent."
A 2,238 sq ft virtual freehold office investment at 7 Charles
Court, Budbrooke Road, Warwick, is subject to one occupational
lease held by the Secretary of State for Transport and the building
is occupied as a driving test centre.
The lease is for 15 years from January 2002 and the current rent
is £27,250 pa with the next review in 2012. Ian Tudor added:
"This represents an excellent opportunity to acquire a modern
courtyard office, let to a Government-strength covenant."
A vacant petrol station on Cannock Road, Wolverhampton, which
while not trading is still let to Total UK for a term of 24 years
with 10 years unexpired, has a guide price of £1.3
million.
"The current rent is £103,617 per annum with stepped
increases over the next 10 years to £126,066 pa in 2010 and
£153,379 pa in 2015. The yield on this property in the four
years from 2015 is calculated at 11.5%.
"We see this as an excellent opportunity to either acquire a
ten-year investment income from the fifth largest oil company in
the world or to terminate the lease, negotiate a reverse premium
from the tenant and redevelop the site, which extends to
approximately 0.75 acres, at a time when the land sector
recovers."
In West Bromwich, a substantial freehold former pub on just over
half an acre, is being offered with vacant possession and is
suitable for a variety of alternative uses subject to planning
permission.
The Stone Cross, in Walsall Road, occupies a prominent trading
position among national and independent retailers including Tesco
Express, Spar and Ladbrokes.
"It is within a densely populated residential neighbourhood and
next to a new development of apartments. Keen interest is already
being shown in this lot," said Mr Tudor.
Bigwood's joint head of auctions Ron Darlington added: "There
are many retail and commercial opportunities coming under the
hammer from small businesses upwards, including a freehold former
care home and day centre in Small Heath on two floors with an
adjoining single storey unit, on nearly two acres of land.
"We feel the property may be suitable for a number of
alternative uses for community use in Small Heath, or for
redevelopment subject to planning permission.
"The guide price on the care home and day centre at 160 Grange
Road and 1 Baker Street is £850,000. This is one of a number
of lots being entered by Birmingham City Council.
"There is a freehold development opportunity on a parcel of land
with planning permission for five three-storey terraced houses in
Montgomery Street, Sparkbrook, with a guide price of £160,000
to £180,000. Planning permission for the project was granted
by Birmingham City Council in January."
In its May sale Bigwood realised £5 million from
residential and commercial property sales in Birmingham and the
Black Country, achieving a 70 per cent conversion rate from its
catalogue.
"This represented a significant improvement on the same period
last year and we are hoping for more of the same this time," added
Ian Tudor.
For more information or to order a catalogue, contact Bigwood at
51/52 Calthorpe Road, Birmingham B15 1TH or call 0121 456 2200.