OPENING BID

Timed Online Auction

21 October 2021, 10am-3pm

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  • TypeCommercial
  • Ownership Freehold
  • Occupation Tenanted
  • Rateable Value Search SAA

Description

Full Address: 200 King Street, Douglas Arms Hotel, Castle Douglas, DG7 1DB

Iconic Town Centre Hotel, Bar & Restaurant and Substantial Private Car Park. Fully Renovated & Trading 23 Bedrooms. Twin Function Suites. LET TO 2051 with Stepped Increase To 24,000p.a. in 2024.

Held On F.R.I Lease Expiry: 28th January 2051. Tenant: Payman Holdings 8 Ltd (Part of larger group of companies operating small hotels throughout the U.K)

Comprises a substantial and extended corner 2 storey painted stone property under pitched and slated roof, the hotel being laid out to offer 23 upper floor bedrooms.

Large ground floor, sectioned to provide corner restaurant (with side lounge), and public bar (accessed from St Andrews Street).

Castle Douglas is a town of around 4,200 persons approximately 18 miles south west from Dumfries in rural Dumfries and Galloway

The Douglas Arms Hotel is understood to be over 200 years old and a former coaching inn. It comprises a substantial and extended corner 2 storey painted stone property under pitched and slated roof, the hotel being laid out to offer 23 upper floor bedrooms (only 11 in use) and large ground floor, sectioned to provide corner restaurant (with side lounge), and public bar (accessed from St Andrews Street). There are two meeting/small function rooms, and a large 80 cover rear function suite (Stewart Room) situated to the rear of reception desk. There is also a private, 3 apartment managers flat on the first floor. At the rear is a detached 2 storey red brick building which is not being used due to suffering fire damage around 2006. Next to this is a sheltered, walled external seating/drinking area. Attached to the red brick building is a steel framed industrial styled canopied roof over approximately 15 car parking spaces, accessed via a pend off King Street or from the rear from Cotton Street. Executive Summary Tenant: Payman Holdings 8 Ltd (Part of larger group of companies operating small hotels throughout the U.K) Expiry: 28th January 2051 Rent: 2022-2023: 11,000p.a. 2023-2024: 23,000p.a. 2024-2026: 24,000p.a. Deposit: 10,000 Option To Buy: The tenant has a fixed option to purchase creating a fantastic R.O.I. for any investor looking for a short term hold with uplift: 1st Year: 260,000 2nd Year: 240,000 3rd-5th Year: 220,000

Castle Douglas is a town of around 4,200 persons approximately 18 miles south west from Dumfries in rural Dumfries and Galloway and benefits from an expanding tourist industry, tourists being attracted into the area because of the easy access to the Solway Coast and the Galloway hills. It lies west of the town of Dalbeattie (6 miles) and east of Gatehouse of Fleet (14 miles). The hotel is situated at the corner of King Street and St Andrew Street opposite the clock tower in a secondary trading location in Castle Douglas town centre.

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Tenancy Details

Type of Agreement: Full Repairing & Insuring (FRI)
Length: 2051
Rent: 24,000 per year / 2,000 per month
Yield: 10% (approx)
Tenant: Company
Notes: Tenant: Payman Holdings 8 Ltd (Part of larger group of companies operating small hotels throughout the U.K) Expiry: 28th January 2051 Rent: 2022-2023: 11,000p.a. 2023-2024: 23,000p.a. 2024-2026: 24,000p.a.

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Location

Pricing Information & Bidding

Opening Bid: £196,000

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Terms of Sale

  • 10% Deposit
  • Standard Completion
  • Buyers Fee = 2.5% of Sale Price (Minimum £2,500 + vat)

* STANDARD TERMS are 4 week completion with 1 week extension. Sellers can request a varied completion and buyers must satisfy themselves prior to bidding.

Auction Details

Date & Time: 21 October 2021, 10am-3pm
Type: Timed Online Auction

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