Description
Canterbury is a major commercial, tourist and administrative centre that benefits from strong road and rail connections. Canterbury has a student population of over 40,000 and is home to four key universities including the University of Kent, Canterbury Christ Church University, University for the Creative Arts and Canterbury College. The property occupies a prominent corner block within the city centre at the junction of St George's Place (A257) and Upper Chantry Lane. Within a 10 minute walk of Canterbury East station, which provides direct access to London Victoria and St Pancras in under 55 minutes. In May 2022 the property underwent a £1.12m tenant refurbishment which included upgrading the M&E and replacement of VRF system. Rochester House is arranged over basement, ground and five upper floors extending to 27,290 sq ft (NIA). The property benefits from 37 car parking spaces, offering a car parking ratio of 1:737 sq ft. The property is single-let to University for the Creative Arts providing secure income on a new 20 year lease from 01 April 2022 with a break option in year 15. Five yearly upward only rent reviews to the higher of either the open market rental value, or CPI (1%-4%). The University for the Creative Arts is a public university and rated as a minimum risk covenant by D&B (O:1 rating). The annual rent is £350,000 pa reflecting a low rent of £12.96 psf, versus comparables which have achieved in excess of £20.00 psf. Longer term, the property lends itself well to a number of alternative uses including residential, student accommodation, hotel, care home and other uses (subject to planning permission).
Location
Canterbury is a cathedral city located in the heart of Kent approximately 62 miles south east of London. Canterbury is a major commercial, tourist and administrative centre that benefits from strong road and rail communications. The city is a popular tourist location with Canterbury Cathedral having the enviable status of being considered a UNES
Terms
We are instructed to seek offers in excess of £5,970,000 subject to contract and exclusive of VAT. A purchase at this price would reflect a net initial yield of 5.50%, a reversionary yield in year 5 of 6.20% and a capital value of £219 psf, assuming purchaser's costs of 6.65%.
EPC
The property benefits from an EPC rating of B-40. An EPC is available on request.
Built (Year)
1970
Key Tenants
University for the Creative Arts
