An opportunity to purchase a freehold commercial investment providing secure long-term income.
The freehold comprises a land plot of c.9,000sqft on which there is a 2-storey brick built building with a flat roof measuring 5,351sqft internally. Externally there is a garden and parking area for 8 vehicles. The property has full planning consent for day nursery use and is Ofsted registered for 93 child places. The most recent Ofsted inspection of the day nursery was in March 2023 where a 'good' grading was awarded.
The property is let to 'Squiggles Childcare Limited' however trades under and is fully owned by the 'Busy Bees' brand who have been in occupation since 2019. The passing rent was recently increased to £158,304 per annum and the lease is for a term of 10 years, expiring in 2029. Whilst the lease is outside of the 1954 Landlord and Tenant Act, the day nursery is trading well and a lease renewal is highly probable if required.
We believe the property will appeal to investors, however, the building also appears to offer longer term potential for conversion into residential accommodation (stpp).
A purchase at the guide price would reflect a gross initial yield of 8.1%.
