mfi, victoria street south, grimsby dn31 1nh - Wilkinson Williams

MFI, Victoria Street South Grimsby
7.0 TENANCIES
The property is let on a lease to MFI Properties Ltd
for a term of 25 years from 15 February 1989 at a
current rent of £315,000 per annum, equating to
£8.97 per sq ft. The lease is guaranteed by
Galiform Plc.
MFI have granted subleases to Anglo Baltic Ltd
(Floors to Go)(4,840 sq ft) at a rent of £43,560 per
annum (£9.00 per sq ft), and Factory Shack 1997 Ltd
(The Bed Shed)(10,026 sq ft) at a rent of £90,234 per
annum (£9.00 per sq ft).
The property is let on a lease to MFI Properties Ltd for a term
of 25 years from 20 February 1989 at a current rent of
£315,000 per annum, equating to £8.97 per sq ft.
8.0 TENANTS/GUARANTORS COVENANTS
The most recent accounts for the tenant and guarantor are summarised below.
Tenant Date Turnover Pre -Tax Profits Net Currant Assets
MFI Properties Ltd 24/12/05 £9.22m £19.54m £15.48m
Galiform Plc 30/12/06 £733m £25.00m £35.20m
9.0 ASSET MANAGEMENT
We believe that through a combination of regearing
the lease with MFI, reletting part of the accommodation
and undertaking a refurbishment of the scheme,
considerable additional value could be created.
Discussions have suggested that MFI are keen to take
a new lease on a unit of 20,000 sq ft and that it should
be possible to take back the unit let to Bedshed. Terms
have been put to Mothercare to take the refurbished
unit currently occupied by Bedshed and this would then
leave Floors 2 Go as a direct tenant of the landlord.
Further details can be provided on request.
10.0 pROpOSAL
Our clients are seeking a price of £4,580,000, subject to
contract and exclusive of VAT, which would produce a net
initial yield of 6.50% on the basis of the existing lease to MFI,
assuming purchaser’s costs of 5.7625%.