May 5, 2016 - to offer marketing advice and we helped and ... marketing strategy along with our database of ... mailing
This Issue
Devon We Have it Covered
“
Charles Darrow’s new Barnstaple office is open for business, headed up by Director Simon Mitchell.
Devon We have it
Our Commitment to South Devon
Charles Darrow Network Auctions Success
Our most important deal so far – making Newton Abbot our permanent regional hub.
Discover how an auction could be the best answer for you. From the leading UK auction house..
Opening an office in Barnstaple was a key strategic decision for us
“
Inside
2016 Edition 3
covered
As promised, we can bring you further news of our new North Devon office.We are proud to introduce Simon Mitchell, our newly appointed director, who will be heading up our operation, strategically located on Barnstaple’s high street. Simon has worked across the South, London and South West for a leading business agency, specialising in the sale and acquisition of licenced and retail businesses. He was born in North Devon and lived and worked in the region for many years. Director Jon Clyne said: “Opening an office in
Barnstaple was a key strategic decision for us as many purchasers looking on the South Coast were enquiring about opportunities in the North which we felt could not effectively be serviced from a single South Devon office. Simon was the ideal choice for us as he has extensive knowledge of the area and experience of commercial property. Our clients are in safe hands.” Simon adds: “I was delighted to return to North Devon and take this opportunity to join the Charles Darrow team. This is a stunning part of the country with great commercial potential. 2016 has seen an
increase in activity across all sectors. Investors have been encouraged to seek high yielding investments due to the low interest rate environment and the news of possible improvements to the A361/A39 North Devon Link road should boost the economy and attract new enterprise and investors. There is a real appetite in the business community for Charles Darrow’s expertise.”
North Devon Office: 21 High Street, Barnstaple, Devon, EX31 1BG Tel: 01271 321122
CO.UK
News Bites Charles Darrow in the Local Community The last quarter has been a very active one at Charles Darrow with a variety of events in the diary. Most recent was The Source Trade Show on 10th and 11th February 2016 where we offered advice on buying and selling commercial properties and businesses. We also ran a quiz competition to win a hamper from Westcountry Direct, packed with delicious locally sourced goodies. Our winner pictured here, was Sharon Mann, Senior Relationship Manager from NatWest. Well done!
Promising Start to 2016 for Leisure and Tourism The South West’s leisure and tourism industries have had a promising start to 2016 as the region seems to be undergoing something of a renaissance with these sectors going from strength to strength.
abundance of private equity funds and a healthy supply of suitable opportunities to satisfy appetites.With prices competitive in the region there is value in the market right now and yields continue upwards.
Tourist numbers are on the rise and as the economy improves we are seeing more investment in leisure activities. More than 100 million trips took place in the South West in 2015, with over £452 million spent in Cornwall and over £900 million in Devon.
Low interest rates have encouraged appetite for profitable businesses and despite rumours of a rate rise there has been no movement, with more recent suggestions of a further rate drop. The UK property market has stayed strong which has led to confidence amongst UK commercial developers. Commercial activity in the UK continues to rise with over 42 consecutive months of growth.
2015 saw stronger merger and acquisition activity across all sectors of the leisure market. The trend looks set to continue with an
Events
Our Commitment to South Devon
South West Tourism Awards 4th February 2016. We sponsored the Pub Of The Year Award. The Ship Inn, Wadebridge and The White Post, Rimpton were joint winners.
Devon Tourism Awards 26th November 2015. We sponsored the Restaurant Of The Year Award. The winner was The Coach House by Michael Caines at Kentisbury Grange, Barnstaple.
Torbay Property Show 22nd November 2015. We were there to offer marketing advice and we helped and advised people looking to find new business premises.
North Devon Food Drink & Tourism Awards 26th Oct 2015. We sponsored the Guest house/BB and Best hotel of the year categories. The winners were: Guest house/BB – Olive Branch, Ilfracombe, and Hotel – Watersmeet Hotel, Woolacombe.
Up and Coming
Devon Business Expo
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On 28th April 2016. We will be offering on the spot valuations, market commentary and expert advice on business. We hope to see you there!
Charles Darrow has demonstrated its commitment to Newton Abbot by buying their office building. Director Jon Clyne said: “ As much as we like to partake in a January detox, we were cracking open the fizz to celebrate the completion of sale on our office premises! “We had been renting the Grade II listed premise in the heart of Newton Abbot since setting up in 2013, but when the opportunity arose to buy it we saw it as the perfect time to establish our regional base in the town.” Director Paul Heather added: “We have experienced an excellent trading period over the past couple of years, despite a challenging trading climate. After the
opening of our Barnstaple office, we felt it only right to secure our premises here in Newton Abbot. “The town has a thriving economy and has served us well. We have been able to sell a number of businesses in town, including Queens Hotel, Newton Electric Light Company and The Pharmacy Café, to name a few. “There is currently much activity in the South West region and we look forward to working with traders and potential buyers in Newton Abbot and the wider area in the near future.” Give us a call on 01626 330022, or visit our website for further details www.charlesdarrow.co.uk.
Charles Darrow Network Auctions Success Charles Darrow Network Auctions the current NAVA auction house of the year, announced the largest ever catalogue ahead of the February auction at the Grosvenor Hotel in London. It proved a great success with Strathmore Apartments, Torquay having sold for £980,000 pre-auction £130,000 above guide price, with many pre-auction bids and Fountain Court, Bovey Tracey which sold for around the guide price. Paul Heather said: “The auction was an ideal opportunity for investment buyers ahead of the 3% stamp duty surcharge on second properties, effective from 1st April 2016. Whilst this has undoubtedly boosted interest, it is also a reflection of our growing status as the leading UK auction house. This follows a number of notable sales in South Devon in the last 12 months, worth over £5.5 million.” Could an auction be for you? Some of the main benefits are: •
Efficiency - Serious buyers with cash or finance in place
The threshold for business rate tax relief will rise from £6,000 to a maximum of £15,000. So from April next year 600,000 smaller businesses will pay no business rates. Not having to pay rates on empty properties below £15,000 means less risk for commercial property investors. The plans to introduce a zero rate band for commercial stamp duty are also a reason for optimism. Commercial stamp duty will be zero on properties up to £150,000, with 2% on the next £200,000 and a top rate of 5% on £250,000.
Lyme Regis PO 37 Broad Street | Lyme Regis Dorset | DT7 3QF Lyme Regis Post Office, the last remaining branch in the affluent town, was recently saved from the brink of closure. The Post Office occupied a prominent position in the town centre but faced closure unless it could be relocated within the town. At the point of closing and surrendering the soon to expire lease, they sought help from Paul Heather, Retail Specialist at Charles Darrow, with whom the owners’ family had a long-standing professional relationship.
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Certainty - No protracted negotiations or fall throughs Speed – exchange contracts on the fall of the gavel, complete within 20 working days Some of the services we offer include: Expert comprehensive advice about the process Extensive database of buyers and investors Highly effective marketing strategy
Our next auction is 5th May 2016. Join our mailing list at www.networkauctions.co.uk, or visit our web page for more information www.charlesdarrow.co.uk/auctions/index.php.
Budget Boost for Commercial Property Investors The commercial property market has been dealt a massive boost in the recent budget, which will delight commercial property investors and small businesses alike.
Case Studies
Charles Darrow director Jon Clyne says: “These changes will have a massive impact on the sector and are positive for the South West. We are already seeing residential property investors shift to commercial investments and with the additional 3% surcharge on stamp duty for residential property, we expect this to increase. Investors have also been encouraged by a return on investment that can be anywhere between 10-15% compared to an average yield of 6-7% on residential properties. “We have also seen an influx of property investors coming to the West Country as it offers better value for money property than London and the South East. The budget changes will only accelerate that process.”
Paul Heather says: “At this critical point, the owners needed specialist advice from a trusted source. Understanding the business was crucial, as was utilising our unique marketing strategy along with our database of potential buyers to find a suitable new subpostmaster quickly. “We believe it is important to have a comprehensive understanding of buyers’ needs also.A buyer came to mind who was searching Devon and Dorset but was from Lyme Regis. This Post Office was ideal for him and the deal was swiftly completed, saving the Post Office from closure, much to the relief of both the owns and Lyme Regis community.”
The Westberry Hotel Rhind Street | Bodmin Cornwall | PL31 2EL The Westberry Hotel, in the heart of Bodmin, had seen 13 successful years for the owners before they decided to sell up and retire. The hotel was profitable and ideally located for tourists to the local area.A combined hotel and European/Oriental restaurant, it was an unusual business to sell and the previous agents failed to find a buyer. Diretor Jon Clyne said: “The Westberry is an appealing and well run hotel.We were delighted to take it on and confident we could find the right buyer for this niche business. We find an active strategy is why we find success where a previous agent fails. We provide accurate, honest advice and utilise social media and other online portals to ensure maximum market exposure – our Twitter following is currently over 96,000.” This strategy proved successful as buyers were found for The Westbury. The new owners have many ideas to develop the business further including a capital refurbishment program and a new seasonal menu.
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Properties and Businesses For Sale or To Let £575,000
Leisure - Pubs Masons Arms, Somerset
ER FF O
LE SA
P.O.A
Devon
RENT
Newton Abbot Town Centre 2,501 Sq ft, third floor suite Communal areas Grand entrance lobby with twin passenger lifts • Highly visible location • New lease available, flexible terms
• • • •
TO T LE
£85,000
leisure - Cafes & Tea Rooms, Devon
R FO LE SA
FREEHOLD
Office, Sherborne House,
FREEHOLD
• Same ownership since 2005 • Located within the rural town of Moretonhampstead • 30+ internal covers • Set within a mock Tudor façade • Previously a very well-regarded lifestyle operation
R
£1,500,000
LEASEHOLD
• Grade II listed Elizabethan premises • Prime location in the heart of Totnes • Highly characterful Tea Rooms • Same ownership since 1999 • Robust NET turnover of £193,077 • Open plan trading area & ancillary areas
leisure - The Shipwrights Arms, Cornwall
R DE UN
R DE UN
R FO
ER FF O
ER FF O
LE SA
• High Volume BP Petrol Filling Station • Part Projected Fuel Volume 3.5mlpa to 4mlpa • Spar Store significantly re-developed in June 2015 • Annual Shop Sales Part-Projected Circa £900,000
£275,000
Devon
FO
LE SA Retail - Matford Filling Station, Devon
LEASEHOLD
• High Turnover Convenience Store • Weekly Sales £20,000, Gross Margin 19% • 1,500sq ft Modern Fitted Store • Prominent central Plymouth • Mostly Staff Run Operation • Option to apply for Post Office
R DE
FREEHOLD
• Affluent Business in Highly Sought After Village Location • Spacious 4 Bedroom Owners Accommodation • Attractive Enclosed Rear Garden • Annual Turnover Circa £130,000 • Huge Potential to Increase Trade
£210,000
Devon
UN
T LE
£399,950
Retail - Drewsteignton Post Office, Devon
Retail - Convenience Stores,
leisure - Tea Rooms,
LEASEHOLD
• Long established business (over 20 years) • Superbly presented 50 cover restaurant • Ancillary with superbly equipped kitchen • Two bedroom apartment
LE SA
RENT
• Prominent position • Located in close proximity to local amenities • Situated within a popular trading estate • Range of office/ meeting rooms • Superb kitchen/ activities area
£60,000
Devon
R
£7,650 p/a
Devon
Leisure - Restaurants,
FO
Office - Unit 8 Bradley Lane,
R FO
LE SA
FREEHOLD
• A high quality family run retail and food service business • Deli, Gift Shop, Newsagents, Tobacconist, Confectioner, Off Licence, Café • Annual turnover of £650,312 • Adjusted Net Profit £125,479
RENT
• Workshop / Warehouse with 3 phase electric • Various sizes available with B1 & B8 usage • 2,000 sq ft- 5,000 sq ft • Large roller entrance door • Allocated parkingy
T LE
T LE
R FO
£499,950
Somerset
P.O.A
Devon
TO
O /T LE SA
LEASEHOLD
• Established in 1999 • Rapidly growing turnover now in excess of £2m • Net profit forecast circa £200,000 • Mostly e-commerce based with small retail shop • 5,500sq ft warehouse
LE SA
LE SA R FO
£650,000
Retail - Outback Trading, Cornwall
Warehouse & Industrial Units,
TO
R
LEASEHOLD
• Well-presented throughout with glorious sea views • Ground floor bar/ restaurant • First floor function suite with balcony, owners accommodation • Late night venue/ further function room
FREEHOLD
• Very well established Freehold Public House • Lounge Bar & Pool Area • Large restaurant/Function room (upto 70 Covers) • 3 Immaculate En-Suite Letting Rooms
R
LE SA FO
£675,000
Devon
£399,950
Leisure - Pubs Old Market Inn, Devon
FO
R
FREEHOLD
• Rare Ground floor Freehold Investment • Superb Corner Trading Position On High Street • Busy Cafe/Coffee Shop Tenant • 6 Year Lease • £6,000 Rental Income Per Annum
LEASEHOLD
• Detached Modernised Premises with Customer Car Park • Weekly Shop Sales Circa £3,000 • Community Post Office Income £14,116 pa • Growing Net Profit of £34,326 • Recently Refitted to a High Standard
LE SA
LE SA FO
£79,950
Devon
£59,950
Devon
R
R Investment - 9 Grenville Street,
Retail - Coffee Shop,
LEASEHOLD
• Highly visible road frontage • Presented to a high standard throughout • 40+ internal covers • Outside seating for 20+ • Ancillary areas including a bake off kitchen
Retail - Convenience Stores,
FO
FO
£65,000
Leisure - Cafes & Tea Rooms, Cornwall
leisure - The Terrace,
FREEHOLD
• Idyllic rural setting near the west Somerset coast • Landmark building in exceptional condition • Lounge bar (29) & 2 restaurants • 5 ground floor en suite letting bedrooms
£1,000,000
FREEHOLD
• 18th Century thatched freehouse • Many period features with a modern twist • Significant investment in the past 4 years • Charming internal areas with covers for 92+
Properties & Businesses Recently Sold Retail - Hulham Convenience Stores, Devon
£595,000
FREEHOLD
LEASEHOLD
• Petrol Forecourt, Customer Car Park & Jet Wash • Annual Fuel Sales approximately £4.5m litres • 5 year Gulf fuel supply agreement • Shop sales £11,000 per week, gross profit margin 22%
Investment - Strathmore Apartments, Devon
£980,000
FREEHOLD
• 28 Investment Apartments in Central Torquay • 4 recently constructed 1 & 2 bedroom apartments • Mix of studio apartments and 1 bedroom flats • Current Rental Income £154,217
leisure - Westberry Hotel - B&B, Cornwall
Investment - St Georges Court, Devon
LD SO
Delightful Victorian Riviera Hotel 13 En-suite Guest Bedrooms Guest Lounge and Bar Owner's Accommodation Heated Outdoor Swimming pool Guest Vehicle Parking
LD
• • • • • •
£249,950
Cornwall
LD SO
Devon
Retail - Petrol Stations,
SO
LD
SO
04
FREEHOLD
LD SO
LD SO leisure - The Devon Court Hotel,
£499,950
• Convenience Store & Superb Family Home • Affluent location in East Devon Seaside Town • Improving year on year turnover • Turnover year end 31/3/15 £596,692
£685,000
FREEHOLD
• 21 Letting rooms, all en - suite • Spacious public area • Function room 120 covers plus bar • Conference suite • Large 3 bed owners apartment • Prominent town centre location • Guest car parking
£995,000
FREEHOLD
• 32 investment studio flats • Current rental income £114,408 • Potential income in excess £188,768 • Potential yeild 18.9% • EPC Range from D-E • Auction guide price £995,000+
South Devon:
12 St Paul’s Road, Newton Abbot,TQ12 2HP
Why use us:
Tel:
01626 330022
| A brand new approach to commercial property
North Devon:
21 High Street, Barnstaple, Devon, EX31 1BG
| Over 50 years’ experience in the south west
Tel:
01271 321122
| Unrivalled website & bespoke print/online packages
Email: Web:
[email protected] www.charlesdarrow.co.uk
| Highly skilled & professional team | Unique Social Media coverage
