Prime, Reversionary, High Street Retail Investment€¦ · Prime, Reversionary, High Street Retail Investment Investment Summary| Location | Demographics | Retailing in Bristol| Situation

Prime, Reversionary, High Street Retail Investment

81 Broadmead, Bristol BS1 3DT


Investment Summary | Location | Demographics | Retailing in Bristol | Situation | The Property | Accommodation | Tenure | Tenancy | Rental Analysis | EPC | VAT | Proposal | Further Information |

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INVESTMENT SUMMARY■ Bristol is ranked one of the top 10 retail centres in the UK.

■ A prime retail investment, on Broadmead within close proximity to the main entrance of the The Galleries.

■ An established retailing pitch where national retailers include Tesco Metro, The Carphone Warehouse, Marks &

Spencer, Sainsbury’s Local, Accessorize, Flight Centre, Boots, EE and Card Factory.

■ Well secured to the strong covenant of Shoe Zone Retail Limited for an unexpired term of 4.75 years.

■ Long leasehold (105.69 years unexpired).

■ A passing gross rent of £75,000 per annum and a net rent of £72,267.50 per annum after head rent deduction.

■ Offers in excess of £1,012,000 (Subject to Contract & exclusive of VAT) which reflects a net initial yield of 6.75%, reversionary yield of 7.28% and a nominal equivalent yield of 7.12%, assuming purchasers costs of 5.8%.



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In 2011 the service sector accounted for 83% of total employment in

Bristol with financial and business services accounting for 34% of total

employment. Key finance and insurance firms within the city include Friends

Provident, Allianz Insurance, RAC Insurance, Lloyds Banking Group,

LOCATIONBristol is the largest city in the south west of England and is located

approximately 120 miles (193 km) west of London, 80 miles (128 km)

south of Birmingham, 78 miles (125 km) north east of Exeter and 50 miles

(80 km) east of Cardiff.

The city is strategically located and benefits from excellent road

communications being situated just south of the intersection of the M4 and

M5. The M5 provides direct access to Birmingham to the north and Exeter

to the south whilst the M4 provides access to London to the east and Cardiff

to the west. In addition, the city benefits from 2 railway stations; Temple

Meads which provides a fastest journey time to London Paddington in 1

hour 40 minutes and Parkway which provides a fastest journey time to

London Paddington in 1 hour 20 minutes.

Bristol International Airport is located approximately 8 miles south of the

city centre and provides a range of international and domestic flights. The

Airport Flyer Express is a bus service from Bristol Temple Meads in a journey

time of 30 minutes and leaves up to 10 minutes every day 24/7.

DEMOGRAPHICS Bristol has a total population within its primary catchment of 962,000

ranking the city the 10th largest in the UK on this measure and has an

estimated shopping population of 497,000. Bristol is projected to see

above average growth in population over the period 2015-20. The city

centre draws shoppers and spending from beyond the primary catchment

area, particularly to the east and south. In total, VisitEngland estimates that

there were 1.51 million visitors to the city in 2013, generating spend in

the region of £252 million.

The Bristol catchment population is moderately affluent containing a

significantly above average proportion of adults of working age categorised

within the most affluent AB social group. Social group C1 is also over-

represented whilst the least affluent social groups D and E are particularly

under-represented.

Barclays and NatWest. As well as the service sector, Bristol claims to have

the largest cluster of computer chip designers and manufacturers outside

Silicon Valley. The wider region has one of the biggest aerospace hubs in the

UK, centred on Airbus, Rolls-Royce and GKN at Filton airfield. In addition,

Bristol has 2 major universities, University of Bristol and the University of the

West of England which combined accommodates over 50,000 students.

RETAILING IN BRISTOLBristol’s central shopping area comprises an estimated 2 million sq ft of

retail floor space, which ranks the city 16th in the UK on this measure.

Bristol central shopping area was transformed by the completion of Cabot

Circus in 2008. This development provides in excess of 1 million sq ft of

modern retail and leisure accommodation together with a 2,500 space

car park. It has attracted many new retailers to the city including Harvey

Nichols and a large variety of national aspirational retailers such as Zara,

The White Company, Reiss, French Connection, Apple, Hugo Boss,

Joules and Urban Outfitters. The scheme also benefits from a Showcase

de Lux Cinema, a restaurant quarter and residential apartments.

BRISTOL



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The other main shopping centre is

The Galleries which is situated at the

western end of Broadmead, with the

main entrance adjacent to the subject

property. It benefits from a variety of

national retailers including Boots, WH

Smith, Peacocks, The Perfume Shop

and Hawkin’s Bazaar.

Broadmead remains a prime retailing

location within the town centre where

the key anchor retailers are represented

such as Boots, Marks & Spencer and BHS. The Horsefair runs parallel to

and north of Broadmead where Debenhams department store is located as

well as Primark’s regional flagship store at just under 100,000 sq.ft.

SITUATIONThe subject property is located in a prime retail destination on the western

end of Broadmead, situated in a prominent position opposite Marks &

Spencer, Sainsbury’s Local and Three. Other national retailers in close

proximity include Tesco Metro, The Carphone Warehouse, Accessorize,

Foot Locker, Flight Centre, Boots, EE and Card Factory.

This location benefits from significant footfall as a result of a large number

of office buildings and residential dwellings located nearby. The amount of

residential accommodation in the area is also set to increase further as a

result of a number of major building and conversion projects nearby. Sites

include the former Police Station, the Magistrates’ Court, Lewins Place,

Froomsgate House and Westgate which, between them, will add 1,000 new

apartments to the immediate vicinity over the next few years.

THE PROPERTYThe property provides well configured sales accommodation on ground floor

with ancillary accommodation on the first and second floors.

ACCOMMODATIONThe property comprises the following net internal floor areas:

Floor Area (Sq. m.) Areas (Sq. ft.)

Ground Floor Sales 175.31 1,887

Ground Floor ITZA - 827.83 units

First Floor Ancillary 50.54 544

Second Floor Ancillary 35.95 387

TOTAL 261.80 2,818

TENUREIn common with Bristol’s central shopping area, the property is held Long

Leasehold from The City Council of Bristol, for a period of 125 years from

22nd August 1996 (105.69 years unexpired). The current head rent is the

greater of £2,732.50 per annum or 2.5% of net revenue.



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This Goad Plan is for identification only and not to be scaled as working drawing. No part of this plan may be entered into an electronic retrieval system without prior consent of the publisher. © Crown copyright 2016. Licence number PU100017316. For full terms and of copyright conditions visit www.goadplans.co.uk/copyright

Shoe Zone



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TENANCYThe property is let in its entirety to Shoe Zone Retail Limited on a new 5 year, full repairing and insuring lease from 21st October 2015. The passing rent

is £75,000 per annum and the tenant benefitted from 12 month’s rent free which will be topped up by the vendor. The net rent after head rent deduction

is £72,267.50 per annum.

Shoe Zone was founded in 1917 under the name Bensonshoe and was acquired by the Smith family in 1980. Since then the

company has acquired a number of businesses namely Tylers in 1986, The Oliver Group Plc in 1986, Shoefayre in 2007 and

Stead & Simpson in 2008. The shoe retailer has over 500 stores within the UK and Republic of Ireland with over 4,000 employees.

Company Name Date of Accounts D&B Rating Sales Turnover Profit before Tax Net Current Assets

Shoe Zone Retail Limited 04/10/2014 4A 1 £172,861,000 £11,677,000 £28,403,000

RENTAL ANALYSIS We calculate that the current passing rent equates to £88.15 Zone A headline reflecting a rebased rent.

The historic prime Zone A rate in the west end of Broadmead was £180 psf. The pitch has experienced a considerable decline in rents since the opening of

Cabot Circus however rents have since stabilised and created a good platform for rental growth.

A number of recent transactions are set out in the below table:

Address Tenant Date Transaction Rent (Headline ITZA)

57 Broadmead Sally Salon Jun 2015 OML £91.26

84 Broadmead Three Feb 2015 LR £95.00

86-88 Broadmead Sainsbury’s Local Apr 2014 OML £96.00

93-95 Broadmead Pret A Manager Oct 2013 OML £108.00

75 Broadmead Flight Centre Jan 2013 OML £94.00

We believe the property is reversionary with an estimated rental value of £80,700 pa reflecting £95 Zone A.

EPCAn EPC is available upon request.

VATThe property has been elected for VAT and any disposal will be by way of a

Transfer of a Going Concern (TOGC).

PROPOSAL We have been instructed to seek offers of £1,012,000 (One Million and

Twelve Thousand Pounds), Subject to Contract & exclusive of VAT. The

net rent of £72,267.50 reflects a net initial yield of 6.75%, allowing

for purchaser’s costs of 5.8%. A purchase at this price would produce the

following yield profile:

Net Initial Yield 6.75%

Reversionary Yield 7.28%

Equivalent Yield (nominal) 7.12%

FURTHER INFORMATION

For further information or to arrange an inspection please contact:

James Baillie 020 7659 4839

[email protected]

Patrick Over 020 7659 4832

[email protected]

MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. January 2016.

Adrian Gates Photography & Design 07710 316991

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Prime, Reversionary, High Street Retail Investment€¦ · Prime, Reversionary, High Street Retail Investment Investment Summary| Location | Demographics | Retailing in Bristol| Situation