THE HALLMARK OF GOOD AGENCY

Retail News

Steve Young of Fisher Hargreaves Proctor has acquired a unit at Trentham Gardens on behalf of Penmark Cards.

Penmark currently trade from fourteen sites across the Eastern-West Midlands and is regarded as one of the premier Hallmark and Thorntons franchisees within the UK.  The latest acquisition is a unit of approximately 1,120 ft² within Trentham Shopping Village which lies in the heart of the Trentham Estate.

The premises were already occupied by a Hallmark and Thornton franchisee who were experiencing trading difficulties across their portfolio.  Penmark had previously considered purchasing this business as a going concern some two years ago and were therefore well aware of the potential profitability.  However, despite their desire to secure the unit, the process was always going to be challenging as the incumbent tenants occupied under a five year lease outside The Act with approximately six months remaining.  Furthermore, their interest was not permitted to be assigned or sublet. 

In order to secure the site, FHP entered into bi lateral negotiations with both the landlord and the existing lessee and devised a structure for the deal which was acceptable to all parties.

Penmark have taken a new five year lease at a commencing rent of £22,380 or 12% of turnover and benefitted from a rent free period of two months.

A premium of £15,000 plus VAT was paid to the outgoing tenant as consideration for all their fixtures and fittings.

Steve Young of Fisher Hargreaves Proctor commented:-

“When taking into account that Penmark previously considered purchasing the business from the outgoing tenant two years ago at a price of £100,000 I was delighted that we were able to secure the premises at such a competitive level.  The early indications from the first two weeks trading are that they are on track to grow the turnover of the unit by circa 30% which will make the store one of the most profitable in their portfolio.”