• 1 / 5

    Location

    Location map based on postcode therefore indicative. Where two markers may be shown (green and red), green arrow points to location.

    View larger map in Google

    For Sale
    Investment, Lincoln, LN1

    Crosstrend House
    10a Newport
    Lincoln
    East Midlands - Lincolnshire

    LN1 3DF

    Reference 2032461

    Type Investment

    Tenure Freehold

    Freehold: £5,000,000

    Contact LSH Surveyor

    Sam Elkington | Head of Office - Lincoln | Lincoln
    Sam Elkington
    Director - Planning & Development

    01522 814696

    Description

    •The property comprises a freehold student block extending to a total gross internal area of approximately 21,339 sq ft (1,982 sq m) developed over ground and two upper floors with 25 on-site car parking spaces, converted from office to student accommodation in 2012, providing 76 beds in total.

    The building is let in its entirety to Bishop Grosseteste University College Lincoln for a term expiring 23 September 2033. The lease has a Tenant only Break Option on 22 September 2022 and 22 September 2027. The passing rent is £364,672 pa and is reviewed 5 yearly in line with RPI.

    Based on current Indices, the rent is therefore expected to increase to a minimum of £400,800 pa at the next review in September 2017. The vendor intends to top the rent up to this level. The rent is paid in three equal instalments in advance on 30 September, 31 January and 30 April.

    The Landlord is responsible for Repairs and Decoration and is also required to provide various "Services" for the tenant. Given the typical annual expenditure the Landlord has incurred since the commencement of the lease, we anticipate that the net income will be circa £320,000 pa.

    We are seeking offers in excess of £5,000,000 (Five million pounds) for the Freehold interest, subject to contract, reflecting a yield of 7.52% on the gross rent and 6.00% against our estimate of Net Operating Income. Purchaser's costs assumed to be 6.59%.

    Similar properties

    See all 57 properties