Mixed use Investment For Sale 21-23 Friar Gate, Derby, Derbyshire

The investment for sale is located on the periphery of Derby city centre. Friar Gate is generally regarded as the heart of the City's main professional and business district and is within the Cathedral Quarter.

Friar Gate itself is one of the main arterial routes into the city and forms part of the inner ring road and links with the A38/A52 (Burton/Ashbourne) to the west and A52/A38 (Nottingham/M1) to the east.

The property is situated at the busy Ford Street crossroads, opposite the University College of Law and New University Business School. There are a number of quality student blocks, restaurants and bars within a short walk.

Within a 0.5 mile walk to the west, is the new Becketwell Performance Venue; a 3,500 seat arena, Derby Intu Centre and the newly refurbished Market Hall, opening soon as a city centre market hub with a vibrant food and beverage offering.

Highly prominent mixed use investment. Producing £123,220 p.a. (c£100,000 after costs). Popular Irish Pub with live music tenanted to 2038 with fixed increase to £55,000 p.a. in 2029 and a further Index Linked review in 2034. + 7 residential Lets fully refurbished in 2021. Comprising 2x apartments, 4 x studios & a 4-bed HMO. Tenanted furnished on standard AST's. Ideal location for Air BnB.

There are two entrances to the residential; one off Ford Street to 5 Flats, and one off Friar Gate to 2 Flats, limiting common areas for reduced maintenance costs.

Areas are from Architect plans and should be confirmed.

The commercial unit has been used under Sui Generis and the Apartment under C3 (Residential) of the Town and Country Planning (Use Classes) Order 1987. The buildings are Grade II listed ref 1216455 & 1366060, and are within the Friar Gate Conservation Area.

The Irish Pub is separately metered and benefits from mains gas and 3 Phase Electric. There is a separate electric supply to the residential element, the residential rents include electric costs.

The Irish Bar and premises is on VOA.gov.uk with a ratable value of £77,000. Each residential unit has a Council Tax Band of A. With the exception of Cluster Flat E, the tenants are directly responsible for these bills

Freehold

The Irish Pub is tenanted to The Drinking Consultants Ltd (T/A O'Dwyers Bar) by a 15 year lease from 29 April 2024. The lease is on effective FRI terms and with a commencing rent of £47,500 per annum. There is a fixed increase to £55,000 per annum in April 2029 with a further Index Lined review in 2034. There is a tenant break in 2034, also on a 6 months prior notice.

The residential units are separately let by way of 6 month ASTs and produce £75,720 per annum.

The management costs associated with running the residential element is typically 30-35% of the residential income p.a. This covers common area maintenance, common area & residential utilities, letting/management fees, insurances and Council Tax (Flat E). I.E. assuming c32.5% of the current gross residential income of £75,720 p.a. the Net residential income is c£51,100 p.a.

£1,175,000 for the Freehold. All figures are quoted exclusive of VAT. We are advised the Pub (the commercial element) is registered for VAT. VAT will be applicable at the prevailing rate, however subject to the qualifying criteria being met the parties may treat the purchase TOGC.

Pub D(95), Flat A C(71), Flat B C(70), Flat C C(78), Flat D C(76), The Cluster D(67), Apt 1 and Apt 2 C(72).

Please contact us or visit the OMEETO website for full details and a virtual tour. Physical viewings with proceedable parties can be arranged on request by contacting our commercial property agents. OMEETO do not take any responsibility for any loss or injury caused whilst carrying out a site visit.