High Street, Southend

Freehold let to Wendy's (subsequently sold a 999 year long lease), M&S and a gym operator. Development opportunity to convert to residential under permitted development rights or a hotel or hostel.

At a Glance:

• Freehold with excellent position on prime pitch
• Permitted development to convert existing upper floors in excess of 9,000 sq ft (10 apartments)
• Positive pre-app for development of two additional floors in excess of 9,000 sq ft
• £20,000 p.a rent for lower ground unit, let to a gym for 3 years Outside the Act
• £34,000 p.a. from Marks and Spencer plc until March 2027 (ERV £50,000)
• Structural report positive
• Seaside and Southend Central Railway Station just minutes walk away
• Basement gym investment at £20,000 pa

The property comprises a large four storey building totalling 19,465 gross sq ft (1,808 sq m). The upper floors are let to Marks & Spencer on a lease expiring in March 2027. The basement is let “Outside the Act” to a Ladies’ fitness centre.

Marks & Spencer PLC – 45 years at £34,000 pa to March 2027 (Outstanding rent review – ERV £50,000 pa)

First (Sales) : 4,857 sq ft / 451.22 sq m
Second (Ancillary) : 4,904 sq ft / 455.58 sq m
Total GIA: 9,761 sq ft / 906.8 sq m

Lower ground floor – Fitlife Essex Ltd on 3 year lease to March 2028 (£20,000 pa rent) Outside the Act.

Lower Ground (Sales) : 2019 sq ft / 187.57 sq m
Ground (Entrance) : 255 sq ft / 23.69 sq m
Total GIA : 2,274 sq ft / 211.26 sq m

Wendy’s – sold off on 999 year lease

Ground (Sales) : 4,338 sq ft / 403 sq m
Lower Ground (Ancillary) : 2432 sq ft / 225.93 sq m
Total GIA : 6,770 sq ft / 628.93 sq m

The pre-app on the potential to build two additional upper floors above the existing two upper floors is very positive:

6.2 Building heights in the vicinity are varied such that no objection is raised in principle to the provision of two additional storeys at the site.
6.4 It is considered that the proposal to extend the upper floor to provide residential units would accord in principle with the above development plan policies, which recognise that providing additional residential uses into town centres can enhance their vitality.

The pre-app envisions the additional floors being developed into flats, but there is also the potential to develop 18 co-living studios: see sketch. Also, see structural engineer’s opinion.

The CGI image shows potential redevelopment on a floor plate of c.5,000 sq ft. This image shows the potential development within the profile of the existing street. Whilst undertaking planning, the property is underpinned by substantial rental income. Great roof top views of the sea.