Investment for sale

The Asset Portfolio
This 334 sq m (3,598 sq ft) Freehold property is split into five income-producing units: a substantial Ground Floor
retail unit and four self-contained residential flats (two 2-bed and two studio flats) above, each with independent rear
access.
Commercial Tenancy: Stability and Growth
The cornerstone of the investment is the ground-floor retail unit, let to The Works Stores Limited on a 10-year Full
Repairing and Insuring (FRI) lease. This provides secure income from a recognised high street tenant.
The commercial income is structured for clear, built-in rental growth:
Current Rent: £32,500 p.a.
Fixed Increase (Year 3 & 4): £32,500 p.a.
Fixed Increase (Year 5): £37,500 p.a.
Review: Open market, upward only rent review in October 2027.

KNOW YOUR TENANT -
The Works is a well-known UK-based value retailer focusing on books, arts and crafts, stationery, toys, and games.
Evaluating them as a potential commercial tenant involves looking at their financial health, business model, and
property requirements.

The Works Retail:
Financial Health and Business Strategy
Turnaround Strategy: The company has recently been focused on a new five-year strategy aimed at transforming the
business, targeting increased revenue and profit margins. Recent financial reports (around late 2024/early 2025)
indicated a significant improvement in profitability (slashing losses) driven by cost-saving measures and product
margin growth.
Store-Driven Growth: The core of their business remains their physical stores, which typically account for over
90% of total revenue. They have reported like-for-like store sales growth, indicating a resilient performance in their
physical estate, even against a "challenging consumer backdrop."
Online Challenges: While store performance has been relatively strong, the company has faced declines in online
sales, which they are working to address as part of their strategy., although High Street presence remains their focus.
Store Estate Optimization: They have been actively managing their store portfolio, which includes opening new
stores, refitting existing ones, relocating some, and closing underperforming ones. This suggests a strategic and
active approach to their property leases. Minehead is a thriving site, owing to its Zone A and Resort town locale.
Financial Outlook: They have been working well towards meeting market expectations for full-year profitability and
are aiming for sustained profit growth in the coming years, underpinned by their new strategy, and deliver decent
credit scores.

Residential Income: (All ASTs with longevity of tenant averaging 5 yrs +)
The four residential flats are let on established Assured Shorthold Tenancies (ASTs), providing £24,240 p.a. in
supplementary income, diversifying the risk profile of the investment. Longevity of tenants is good, with nearly short
to zero void periods. Current rents have not been reviwed for several years now. 
Unit                                      Bedrooms                   Current Annual Rent
Flat 1 (1st Floor)                        2                            £6,600 p.a.
Flat 2 (1st Floor)                        2                            £7,140 p.a.
Flat 3 (2nd Floor)                      Studio                   £5,700 p.a.
Flat 4 (Rear Ground)                 Studio                  £4,800 p.a.
Total Residential Income                                       £24,240 p.a.

This is an attractive, hands-off investment that delivers an initial gross yield of 7.57% and includes guaranteed rental
increases to enhance future returns.

Minehead Zone A retail district, centered on The Avenue and The Parade, represents the primary commercial hub
of the town. This is the highest-footfall area, benefiting from year-round local trade and significant seasonal uplift.
Premium Footfall: As a major seaside town and the Gateway to Exmoor, Minehead benefits from a substantial
seasonal influx of tourists, particularly families, which dramatically boosts retail activity and turnover, far exceeding
typical non-coastal market performance. The town is home to a major holiday resort (Butlins), ensuring a regular
captive and large-scale audience. Strong Trading Environment: Properties here command the highest retail rents, reflecting their prime positioning and
visibility to both residents and visitors. Investment stock in this core area often includes mixed-use opportunities
(retail on the ground floor, residential/office conversion potential above), offering diversified income streams and
greater long-term value. High Visibility: The Edwardian architecture of The Avenue creates a distinctive and attractive setting, ensuring your
asset stands out in a clean, well-maintained environment.

DRIVERS OF GROWTH & TENANT DEMAND
Your investment here is underpinned by stable economic drivers that mitigate risk and promise sustainable demand.
Anchor Tourism: Minehead's status as the start of the South West Coast Path and its proximity to major attractions
like Dunster Castle and the West Somerset Railway guarantee continuous visitor traffic, supporting a strong mix of
retail, leisure, and hospitality tenants.
Targeted Regeneration: Local development plans, such as the Minehead Plan: Inspiring People & Place, focus on
'Energising the Economy' and enhancing the town's sense of place. These initiatives are designed to improve the
year-round visitor experience and support local business growth.

Coastal Resilience: Unlike purely commuter towns, Minehead's economy is resiliently tied to its unique tourism and
leisure offering. Data often shows that smaller coastal centers maintain or exceed pre-pandemic footfall levels, as
they are favoured by domestic tourists and those working remotely.
Minehead, West Somerset, Zone A offers the investor a balanced portfolio opportunity:
Location Risk | Prime Zone A, Low Risk.
Tenant Mix | Diverse demand from national retailers, regional chains, established local independent businesses,
undersupply/shortage of residential property to let, especially flats and apartments.
Rental Opportunity | Highest achievable rental incomes in the local area, both residentially and commercially.
Capital Growth | Solid growth, running at above 2.25% since 2020.

Richard Payne viewed and assessed this property and will be pleased to discuss the opportunity in further detail or
arrange viewing access - All details are subject to verification by any interested party and are prepared to the best of our knowledge using the information as provided by our client. Our particulars do not form part of any contract and your own due diligence is recommended. Although
provided with careful consideration and to the best of their ability, no warranty is given by Richard Payne - Stanton Cheever IG. - or their clients.