Commercial Development
An opportunity to purchase a site comprising 0.34 acres which has development potential.
The site comprises a triangular shaped parcel of land extending to 0.34 acres, part of which is clear and part of which still has a number of buildings in place.
Located on the site are four buildings:
19-21 Pall Mall: A vacant two storey former retail property.
23 Pall Mall: An occupied three storey shop with tenant holding over since 2014.
25 Pall Mall: An occupied three storey restaurant with the tenant holding over since 2019.
27 Pall Mall: A vacant single storey former restaurant premises.
The vendors have submitted a planning application for 19-25 Pall Mall for change of use of commercial premises to residential accommodation comprising 12 units; demolition of existing rear ground floor extension at 23-25 Pall Mall and creation of ground floor cycle storage; addition of 2nd floor with replacement roof at 19-21 Pall Mall; and elevational alterations (Decision awaited - Reference 70369/FUL – 19-25 Pall Mall). A pre-planning fee has also been paid for the creation of 24 apartments at 27 Pall Mall (ref: 70570/MDS – 27 Pall Mall). Please note planning has not yet been granted however pre-planning previously for 60 apartments.
The site represents a rare opportunity to construct what would become a landmark residential development in the city centre in what is now an established and vibrant location and forms part of the Cultural Quarter.
As an alternative, the site could be purchased and used to provide a rental income from the existing properties. We are advised by the vendor that No. 23 is currently let at £5,200pa and No. 25 is rented at £10,500pa. We are informed there is a principle agreement in place for placing the tenants from 23 and 25 to the units of 27 Pall Mall and generate £32,000pa. This would leave three vacant units with potential income of £18,000pa. Overall potential income from commercial units £50,000pa.
The car park is currently achieving £3,500 where each parking space is let for £250 per annum (less than 70pence per day). There is potential to increase the income with a going rate per space per day of £2.50, which would be a total income of £12,775pa if increased.
Apartments in the area for a similar size for a new development is approx. £7,800 per annum per apartment, meaning a total possible income of £93,600pa for the 12 apartments. The 24 apartments on top of 27 Pall Mall would be £187,200 per annum; total residential potential income £280,800 (all subject to planning permission).
Potential income pa:
Car park £12,775
Residential (36 apartments) £280,800
Commercial units £50,000
Total: £343,575pa (please note figures have been provided by the seller and all subject to planning permission).
Majestic is located just off Piccadilly which continues to be the most popular street and location in the city. The site has a 50-meter frontage to Marsh Street South and a 44-meter frontage to Pall Mall and is centrally located in the City Centre within the very popular Cultural Quarter where a wide range of retail, leisure and office orientated businesses are located.
We have been advised that the vendors have recently had Asbestos removed, a GPR investigation which shows no coal mine and have had 6 Trail pits dug to determine foundations which show foundations are strong to hold two levels and only require small underpinning. We advise interested parties to inspect the legal pack for more information.
The recently established Smithfield development is within 200 yards, where over 210,000 sq. ft. of Grade A office space has already been built and occupied with another 214,000 sq. ft. in the pipeline. The Hilton Garden Inn hotel and an 11 storey 151 unit apartment block have also been constructed and a 730 space multi-storey car park is currently under construction. Festival Park is within a 15-minute walk where a significant number of office businesses are located together with leisure outlets such as Waterworld, the Odeon Cinema and Stoke Ski Centre.
VAT
We are advised that 19-25 Pall Mall are not subject to VAT and that VAT will apply to the sale of 27 Pall Mall.
Site Area
Using Ordinance Survey Promap we calculate the site to extend to 0.34 acres.
Freehold. Part let/part vacant.
Auction Details
The sale of this property will take place on the stated date by way of Auction Event and is being sold as Unconditional with Variable Fee (England and Wales).
Binding contracts of sale will be exchanged at the point of sale.
All sales are subject to SDL Property Auctions Buyers Terms. Properties located in Scotland will be subject to applicable Scottish law.
Auction Deposit and Fees
The following deposits and non- refundable auctioneers fees apply:
• 5% deposit (subject to a minimum of £5,000)
• Buyers Fee of 4.8% of the purchase price for properties sold for up to £250,000, or 3.6% of the purchase price for properties sold for over £250,000 (in all cases, subject to a minimum of £6,000 inc. VAT). For worked examples please refer to the Auction Conduct Guide.
The Buyers Fee does not contribute to the purchase price, however it will be taken into account when calculating the Stamp Duty Land Tax for the property (known as Land and Buildings Transaction Tax for properties located in Scotland), because it forms part of the chargeable consideration for the property.
There may be additional fees listed in the Special Conditions of Sale, which will be available to view within the Legal Pack. You must read the Legal Pack carefully before bidding.
Additional Information
For full details about all auction methods and sale types please refer to the Auction Conduct Guide which can be viewed on the SDL Property Auctions home page.
This guide includes details on the auction registration process, your payment obligations and how to view the Legal Pack (and any applicable Home Report for residential Scottish properties).
Guide Price & Reserve Price
Each property sold is subject to a Reserve Price. The Reserve Price will be within + or - 10% of the Guide Price. The Guide Price is issued solely as a guide so that a buyer can consider whether or not to pursue their interest. A full definition can be found within the Buyers Terms.
