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HIGH STREET, GUILDFORD, GU1 3ESRARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
WITH POTENTIAL TO DEVELOP THE UPPER PARTS
HIGH STREET, GUILDFORD, GU1 3ESPRIME FREEHOLD HIGH STREET
INVESTMENT FOR SALE
INVESTMENT CONSIDERATIONS
Guildford is a highly affluent south east town and is amongst the UK’s premier retail destinations
outside of Central London
•The town’s catchment population is one of the most affluent of the PROMIS centres, ranking
second on the PMA Affluence Indicator
•Prime retail unit situated on the pedestrianised
High Street adjacent to Gapkids and within close proximity to Jack Wills, Gap, GANT and WH Smith.
•Let to Vodafone Ltd for a further 4 years at a
current rent of £232,500 p.a. reflecting a Zone A rent of £307.50 psf
•Freehold
•Potential to unlock the residential accommodation and expand further by extending the upper floors
to the rear, subject to the existing lease and obtaining all relevant planning consents
•We are instructed to seek offers in excess of
£5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 4.15% assuming purchaser’s costs of 6.60%.
Heathrow
Gatwick
StanstedLuton
J27J25J23
J21
J20
J19
J16
J15
J12
J10
J7J8
J9
J6
J5
J3
J2
J29
J28
A127
A505
A418 A602
A120
A131
A130
A138
A130
A229
A243
A217
A232
A331
A322
A339
A316
A309
A232
A264
A264
A229
A404
A355
A404
A413
A4010
A4142
A414
A414
A5
A1
A2
A3
A3
A2
A34
A41
A40
A40
A33
A31
A24
A24
A23
A22
A21
A20
A12A10
A10
A10
A12
A12
A13
A26
A21
A21
A22
A22
A23
M4
M4
M2
M3
M3
M1
M25
M10
M40
M40
M25
M25
M25
M23
M26
M25 M20
M20
M25
M11
M11
M25
A1(M)
M1
Harlow
Bishop’sStortford
EppingPotters Bar
Knebworth
Hertford
Luton
Aylesbury
DunstableStevenage
LONDON
Hatfield
Dartford
Bromley
Gravesend
Gillingham
Shoreham
Rochester
Sittingbourne
Croydon
Biggin Hill
Romford
Sevenoaks
Tonbridge
RoyalTunbridge
Wells
Maidstone
Snodland
Sheerness
StaplehurstPaddock
Wood
East Grinstead
Crawley Three Bridges
Horley
Horsham
Witley
Godalming
Cranleigh
NorthHorsham
HaywardsHeath
Burgess Hill
Redhill
Oxted
DorkingGUILDFORD
Reigate
Staines
Slough
HemelHempstead St Albans
HighWycombe
Watford
WembleyUxbridge
Ruislip
Harrow BrentCross
Woking
SouthOxney
Rickmansworth
Harefield
BorehamwoodEnfield
Windsor
Famborough
Aldershot
Alton
Basingstoke
Famham
Fleet
Wokingham Ascot
Reading
Henley-on-ThamesMaidenhead
Epsom
Chessington
Tolworth
Sutton
Clapham
Swanley
Fulham
Weybridge
Ashford
RichmondHounslow
KingstonUpon Thames
Billericay
Wickford
Stanford-le-Hope
Southend-on-SeaBenfleet
CanveyIsland
Brentwood
Chelmsford
ChippingOngar
Basildon
Welwyn GardenCity
HIGH STREET, GUILDFORD, GU1 3ESRARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
WITH POTENTIAL TO DEVELOP THE UPPER PARTS
LOCATION
Guildford is the main commercial and administrative centre of Surrey and is one of the premier retailing locations in the UK. The town is located approximately 33 miles (53 km) south west of Central London, 7 miles (11 km) south of Woking and 10 miles (16 km) east of Farnham. The A3 London to Portsmouth trunk road runs along the edge of the town and provides fast road access to London, the south coast and the M25 motorway at junction 10. Guildford also benefits from a mainline rail service with direct services to Waterloo, with a journey time of approximately 33 minutes. Both London Heathrow and London Gatwick Airports are within a 30 minute drive.
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HIGH STREET, GUILDFORD, GU1 3ES
RETAILING IN GUILDFORD
Guildford is an affluent market town and is a leading retailing centre across the country, popular with occupiers and investors. The town benefits from being within close proximity to London and is a popular commuter town. The town attracts some of the highest consumer spending in the South East, with retail expenditure expected to grow in the near future.
The core shopping area within Guildford town centre focuses around the High Street and North Street, which lie parallel to one another. The prime pitch is found along the pedestrianised section of the High Street. There are three shopping centres within the town:- The Friary Centre, White Lion Walk and Tunsgate Square however the traditional High Street remains the heart of the town’s retail offer.
The retail offer in Guildford is very strong with a good provision of upper middle/quality fashion retailers including GANT, Hobbs, Kurt Geiger, Phase Eight, Ted Baker, Urban Outfitters, Jack Wills, Superdry and Hollister all having representation. Recent arrivals in the town include Massimo Dutti, Timberland, Joules and Anthropologie further underlining the town’s prominence as a leading retailing centre. These national brands are supplemented by an array of independent boutiques.
The vacancy rate in Guildford town centre currently stands at 6.8%, well below the national average. The refurbishment of Tunsgate Quarter will bring further occupiers coming to the town with OKA Direct, Loaf and The Ivy Brasserie having taken pre-lets. Prime rents in the town currently stand at £310 psf Zone A. This is now approximately 11% above the pre-recession peak outlining the strength of Guildford as a retail centre.
DEMOGRAPHICS
Guildford has a primary catchment area population of 507,000 with an estimated shopping population of approximately 241,000 and the area is expected to see above average growth in population across the next 5 years. Given the breadth of the retail offer in Guildford and the attractive character of the town centre, we would expect the town to draw a significant number of shoppers from beyond the primary catchment area.
The Guildford catchment population is one of the most affluent catchments in the UK, ranked 2nd out of the PROMIS centres on the PMA Affluence indicator. This is reflected by the spending habits of the catchment population where per capita retail spending levels are significantly above the PROMIS average.
The town includes a large student population with the University of Surrey accommodating in excess of 15,000 students. Guildford is also a popular commuter town with over 8.2 million people using the station in 2015/16.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE WITH POTENTIAL TO DEVELOP THE UPPER PARTS
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HIGH STREET, GUILDFORD, GU1 3ES
© Crown Copyright, ES 100004106. For identification purposes only.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE WITH POTENTIAL TO DEVELOP THE UPPER PARTS
HIGH STREET, GUILDFORD, GU1 3ES
SITUATION
The property is situated on a prominent trading position on the southern side of the pedestrianised High Street close to its junction with Chapel Street. Nearby occupiers include Gapkids, Gap, WH Smith, Jack Wills, GANT, Waterstones and Boots.
DESCRIPTION
The subject property is an attractive building, comprising a single retail unit that is arranged over ground and mezzanine levels and three storeys of residential accommodation across first, second and third floors. The residential accommodation benefits from separate access across a flat roof to the rear of the property and comprises three bedrooms. There is car parking for up to 3 cars to the rear of the property.
ACCOMMODATION
We have been informed by our client that the property comprises the following approximate dimensions and floor areas:
Sq M Sq Ft
Ground Floor (NIA) 169.6 1,826
Ground Floor ITZA 64.3 692
Mezzanine Ancillary (NIA) 20.2 217
First Floor Residential (GIA) 48.4 521
Second Floor Residential (GIA) 48.4 521
Third Floor Residential (GIA) 48.4 521
Total Area 335.0 3,606
TENURE
Freehold
TENANCY
The entire property is let to Vodafone Ltd on a 10 year lease from 24th June 2011 at a current passing rent of £232,500 p.a. The 2016 rent review has recently been provisionally settled rising from a starting rent of £229,000 p.a.
We understand that the property was fully refitted in 2015 and that it sits within the top 25 of circa 500 stores across the UK in terms of performance.
RENTAL VALUE
The current rent passing of £232,500 pa reflects a Zone A rent of approximately £307.50 psf. We have applied A/20 to the mezzanine ancillary accommodation. This has allowed for £1,500 pcm to be attributed to the flat less 25% for management and voids. £1,000 has been attributed for each car park space.
We consider that the unit is rack rented.
The most current salient rental evidence can be set out as follows:
1 66 HIGH STREET, GUILDFORD The subject property underwent a rent review last year which has recently been settled increasing to £232,500 pa. The rent passing reflects £307.50 psf Zone A
2 133-135 HIGH STREET, GUILDFORD The property was let to Massimo Dutti UK on a 10 year lease from February 2016 at a rent of £390,000 pa. The rent passing reflected £320 psf Zone A.
3 76-78 HIGH STREET, GUILDFORD Kikki-K has taken an assignment of an existing lease expiring in June 2020 at a rent of £146,500 pa reflecting £314 psf Zone A.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE WITH POTENTIAL TO DEVELOP THE UPPER PARTS
ASSET MANAGEMENT
The property provides a number of potential asset management opportunities including:
• Negotiating with the tenant to release the residential upper parts from the lease which are currently not used by the tenant.
• Extending the upper parts to the rear to create further residential accommodation subject to obtaining the necessary planning consents. A recently commissioned planning report is available in the dataroom.
• Extending the lease to Vodafone.
COVENANT
Vodafone LtdVodafone Group Plc is one of the world’s leading mobile communications providers and has over 480 stores in the UK. Vodafone operate in a further 30 countries with almost 360 million customers and is a constituent of the FTSE 100 Index.
Vodafone Ltd forms part of the Vodafone Group. The company has a D & B rating of 5A1 and has the following financial information:
31 March 2016 31 Mar 2015 31 March 2014
Sales Turnover £6,183,500,000 £6,294,200,000 £6,969,200,000
Profit Before Taxes (£636,800,000) (£832,800,000) (£304,800,000)
Tangible Net Worth £3,506,200,000 (£1,991,600,000) (£1,658,000,000)
HIGH STREET, GUILDFORD, GU1 3ESRARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
WITH POTENTIAL TO DEVELOP THE UPPER PARTS
HIGH STREET, GUILDFORD, GU1 3ES
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 07.17
www.allsop.co.uk
For further information or to make arrangements for viewing please contact:
Alex Butler020 7543 [email protected]
Jonathan Butcher020 7543 [email protected]
PROPOSALWe are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 4.15% after allowing for purchaser’s costs of 6.60%.
VAT
The property is elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern (TOGC).
EPC
The EPC is available upon request.
DATAROOM
For access to the Allsop Dataroom please use the following link: http://datarooms.allsop.co.uk/register/guildford
INVESTMENT COMPARABLESWe are aware of the following high street investment comparables:
Date Address Tenant Price NIY
Under Offer 22-23 East Street, Chichester Vodafone Ltd c. £2.1m c. 3.75%
January 2017 92 – 94 High Street, Guildford EE Ltd and Nimogen Ltd £7.6m 4.3%
May 2016 133/135 High Street, Guildford Massimo Dutti £9.3m 3.95%
November 2015 123 High Street, Guildford L’Oreal (UK) Ltd £3.3m 4.3%