F.A.Q.
You will no doubt have many questions you would like to ask. Listed below are some Q+A’s that will help answer some of your queries. For further information, please contact Gary Coyle on gary@postmasternet.co.uk or ring 01622 844555
Q. Tell me more about The Local Shopping Reit plc (LSR)?
A. LSR is a publicly listed company having listed on the London Stock Exchange earlier this year. The company raised £160 million from investors to help fund future acquisitions in the local retail property market.
Q. How many properties does LSR currently own and operate?
A. As of June 2007, the company has a portfolio of 536 properties, 1464 tenants with an estimated value of £214 million.
Q. Is there a particular type of property LSR is interested in?
A. LSR look for retail properties (including post offices) which are well established within strong sustainable local communities. They also invest in new developments of local shops where these are supported by exisiting or new residential property.
Q. What are the main advantages of me selling my property to LSR?
A. There are several. Firstly you will not pay any Business Transfer Agent fees so you will save an average of £10,000 based on a valuation of £350,000 for your property. Secondly, you are able to sell your business discreetly (no for sale boards) so your staff and customers do not have to know that you are selling. Lastly, dependent upon your solicitors, most sales can be completed within three months.
Q. I have a residential element to my retail property. Will I have to dispose of this separately?
A. Not in all cases, LSR generally likes to purchase the complete building and then lease out the shop and the living accommodation either separately or as a complete package.
Q. Do I have to own my retail property in order to be considered?
A. No, of course LSR would prefer properties to be freehold but will consider leaseholds if they have 75 or more years to run.
Q. In order to continue trading at the same premises do I have the option of leasing the premises?
A. Absolutely, LSR would actively encourage Sub postmasters to continue trading as long as there was evidence that the Accounts showed that the tenant had the funds to pay the rent.
Q. Do I need to get my property valued?
A. LSR will instruct a local surveyor to your area to value your property if they decide to move forwards with your application.
Q. I am very interested, what do I do now?
A. You need to complete the Confidential Application form which can be downloaded once you submit your details and provide us with the last two years set of Accounts for your business. We will then process your Application and if it fits the strict criteria of LSR we will contact you to arrange for a local valuation of your property.
Q. Can I confirm who will be buying the property?
A. LSR will be purchasing your property on behalf of their investors. Gary Coyle and Postmasternetwork Ltd are simply acting as introducers of Sub postmaster retail properties to The Local Shopping Reit PLC.
Q. What type of lease will I be offered?
A. A full repair and insuring lease for a term of 9 years with rent reviews every 3 years.
Q. What will the initial rent be?
A. This will be determined by LSR and yourselves and will be based on the purchase price of the property, market evidence and affordability.
Q. What happens at the rent review?
A. The rent review mechanism will be based on the open market value for the property, and or an increase in the RPI or a combination of the two.