Location

The site is prominently located on South Cliff, Walton-on-the-Naze with spectacular views over a large sandy beach, and Walton Pier. Walton-on-the-Naze is a popular seaside resort located approximately 18 miles to the North East of Colchester on the Tendring peninsular.



Description

The site is freehold and totals approximately 1.5 acres. It has 116 beach hut plots, car park and sea front kiosk. All of the beach huts have been sold to individual owner occupiers who are required to pay an annual licence/pitch fee to the freeholder. The freeholder is responsible for the maintenance and upkeep of the communal areas, hard landscaping and car park. They also supply two fresh water taps and site lighting.



The beach kiosk is currently let under a standard law society lease on a 3 year term expiring 31.03.2023 at a current rent of £5,000 PA with annual reviews.



Individual hut owners can sell their huts subject to the freeholders consent and payment of a fixed administration fee of £360 inclusive of VAT.



Income /Expenditure

The freeholders currently receive an income of £90,589 for the 116 pitch fees, car parking permits, insurance payments and admin fees. Total expenditure to run the site currently totals £7,060 providing a net income of £83,529 per annum.



Management

The vendors manage the site themselves. Invoices are issued once a year in January. The site maintenance is carried out by an independent contractor.



Note

Within the car park there is the possibility to create a further 16 beach hut pitches subject to planning consent (as shown on the plan) to create further pitch fee income of up to £8,667 PA.



The sale of sixteen new beach huts could create a net profit of between £350,000 to £500,000 based on the current selling prices of the beach huts on site.



Terms

The site is for sale Freehold with the benefit of the income as outlined, at a price of £1,250,000 plus VAT, reflecting a gross yield of 6.7% on the net income received with the opportunity to increase this income as outlined, providing a gross yield of 7.38%. Sales of the beach huts could further increase the yield to between 10% and 12%.



A sale as a Transfer of a Going Concern (TOGC) may be possible subject to detailed discussions.



Business Rates

Business rates are levied by Tendring District Council. The rateable value of the car park is £2,250. Individual hut owners are liable for their own rates if demanded.



Insurance

The freeholders hold public liability insurance and block insurance for most of the beach huts and kiosk. 109 hut owners contribute with the other self insuring.



VAT

The site is elected for VAT and VAT is charged on all pitch and licence fees.



Legal Costs

Each party will bear their own legal costs.



Anti-Money Laundering Regulations

Anti-Money Laundering Regulations require Fenn Wright to formally verify prospective purchaser's identify, residence and source of funds prior to instructing solicitors.



Note

Under section 21 of the Estate Agents Act 1979, an employee of Fenn Wright has a related interest in this property.



Viewing

Strictly by appointment via sole agents:

Fenn Wright