The Worthgate School, 56-60 & 68 New Dover Road, Canterbury, Kent, CT1 3LQ

Property specification

• 56-60 & 68 New Dover Road comprise the majority of the campus for The Worthgate School, a highly respected international boarding school offering accommodation and summer programmes for secondary school students.
• A total of 51,701 sq ft (GIA) providing teaching space and student accommodation (73 en-suite bedspaces across 51 single rooms and 11 twin rooms).
• Freehold.
• Two co-terminus full repairing and insuring leases assigned to Cambridge Arts & Sciences Limited (CATS) with an Authorised Guarantee Agreement from Cambridge Education Group (CEG).
• Both leases have a tenants option to renew for a further 15 years at lease expiry.
• Total passing rent of £657,679 p.a. with 5 yearly rent reviews in line with RPI (collar of 2% and cap of 4% compounded annually).
• The vendor will top up the rent from the December 2022 review at the minimum uplift of 2% per annum for two years, providing a topped up rent of £684,249 p.a.
• Strong underlying alternative use values given the affluent neighbourhood and proximity to the city centre.
• We are instructed to seek offers in excess of £9,866,000 (nine million eight hundred and sixty six thousand pounds) subject to contract and exclusive of VAT A purchase at this level reflects a net initial yield of 6.50% (on the topped up rent) and a low capital value of £190 per sq ft (GIA) after purchaser's costs of 6.69%. Minimum reversionary yield of 7.17% (based on uplifts of 2% per annum) and maximum reversionary yield of 7.91% (based on uplifts of 4% per annum) at the December 2027 rent review. Offers may be considered on an individual basis for each building.
• £9,866,000 / NIY 6.50%