PRIME GREATER LONDON RETAIL INVESTMENT OPPORTUNITY ST ANN S ROAD HARROW HA1 1LA

Transcription

1 PRIME GREATER LONDON RETAIL INVESTMENT OPPORTUNITY ST ANN S ROAD HARROW HA1 1LA

2 INVESTMENT SUMMARY Harrow is an affluent north-west London suburb and one of Greater London s major commercial centres. Excellent road and rail connections into central London, via mainline and underground stations. Prime freehold retail parade, opposite Marks & Spencer. A strong tenant line-up of Card Factory, Foot Locker and Sports Direct.com (all in occupation since 1995). Re-based rents reflecting low Zone A rates of psf to psf. Total accommodation of sq m (10,620 sq ft), with well configured ground floor retail space. Total current rent of 225,000 per annum exclusive, with an AWULT of 4.25 years to expiry (no breaks). Seeking offers in excess of 3,675,000 (Three Million, Six Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 5.75%, allowing for purchaser s costs of 6.51%.

3 HARROW Harrow is an established residential and commercial centre located in the north west of Greater London. The town is approximately 12 miles north west of Central London, 11 miles north of Heathrow Airport and 4 miles north west of Wembley Stadium. Harrow benefits from excellent communications with the M1 motorway (Junction 1) approximately 6 miles to the east. In addition, the town is located 4 miles to the north of the A40, which provides direct access to the M25 motorway (Junction 16) and the M40 motorway (Junction 1). Harrow is also served by Harrow-on-the-Hill Mainline and Underground Railway Stations which provide direct access to Central London (Kings Cross St. Pancras) via the Metropolitan Line with a journey time of approximately 32 minutes. In February 2015, the Greater London Authority (GLA) awarded Harrow Council 31.3m of investment as a designated Opportunity Area for ambitious house building plans (1,679 homes). As part of the 1.75bn Heart of Harrow regeneration programme, the council plans to deliver over 5,500 new homes, as well as improve the town centre, public realm, transport, access points and evening economy. M40 READING M4 MILTON KEYNES A41 AYLESBURY A5 M1 LUTON DUNSTABLE A1 (M) HERTFORD HEMEL ST HEMPSTEAD ALBANS A414 M1 HARLOW HATFIELD AMERSHAM M25 HIGH WYCOMBE M25 WATFORD M1 HARROW SLOUGH LONDON CITY M4 HEATHROW BRACKNELL A6 LUTON A1 A505 STEVENAGE LONDON BISHOP S STORTFORD M25 STANSTED A120 CHELMSFORD A414 M20 A12 BASILDON A13 A2 SUDBURY A12 ROCHESTER RETAILING IN HARROW The retailing provision in Harrow is relatively confined being bounded by a railway to the south, Greenhill Way to the north, St George s Shopping Centre to the west and Station Road to the east. St Ann s Road, the pedestrianised precinct, forms the heart of the shopping area in Harrow. This links Station Road to St George s Shopping Centre, with an entrance to St Ann s Shopping Centre in the centre. The two shopping centres accommodate many of the main UK fashion multiples including; Primark, H&M, Monsoon, Accessorize, as well as Boots, Holland & Barrett and WH Smith. St Ann s Road benefits from very low vacancy rates, with only one vacant unit (48 St Ann s Road) noted at the time of our inspection. Key retailers on St Ann s Road include, Next, Marks & Spencer, JD Sports, Waterstone s and Vodafone, as well as many UK high street banks.

4 SITUATION The subject property is a mid-terrace parade at the western end of St Ann s Road, on the north side of the pedestrianised thoroughfare. It is well located, in prime pitch opposite the Marks & Spencer store. N VACANT ST ANN S ROAD CHOPSTIX SECOND CUP COFFEE SHOP ST ANN S SHOPPING CENTRE ST ANN S SHOPPING CENTRE Copyright and confidentiality Experian, 2016 Crown copyright and database rights OS Experian Goad Plan Created: 25/04/20

5 DESCRIPTION The subject property was built in 1994, and is of red brick construction, with a canopy covering the shop fronts on the façade. The property comprises three, regular-shaped, retail units on ground, first and second floors (the latter being accessed via an external walkway running along the back of the property). The units are serviced for loading and unloading at the rear, via a lay-by on Greenhill Way. TENURE Freehold. PLANNING The property is not listed, nor does it lie within a Conservation Area. ACCOMMODATION & TENANCIES The property provides total accommodation of approximately sq m (10,620 sq ft) net internal area (NIA), as set out in the table below. The subject unit rentals have been re-based through recent asset management and lease renewals, at headline rents of between psf Zone A and psf Zone A. Due to the recent deals on the subject units, we consider them to be rack-rented. Address Tenant Floor Area (sq ft) Lease Start Lease Expiry Rent per annum ( psf Zone A) Comments 32 St Ann s Road Sportswift Limited (t/a Card Factory) Ground ITZA First (storage a/20) Second (storage a/50) Total 1, ,040 3,612 4/10/2014 3/10/ ,000 ( 89.52) Previous rent of 70,000 pa. 34 St Ann s Road Freedom Sportsline Ltd (t/a Foot Locker) Ground ITZA First (storage a/20) Second (storage a/50) Total 1, ,050 3,635 23/10/ /10/ ,000 ( 94.27) Previous rent of 101,000 pa. Rent free period to 22/07/2016 remaining rent free to be topped-up by the vendor. 36 St Ann s Road Sportsdirect.com Retail Ltd (t/a Sports Direct. com) Ground ITZA First (sales a/12) Second (storage a/40) 1, /01/ /01/ ,000 ( 93.45) Deed of Variation (27/07/2015), removed a break option in return for a rent reduction from 90,000 pa to 75,000 pa, with rent free from 30/01/2016 to 29/10/2016 remaining rent free to be topped-up by the vendor. Total 3,373 Overall Total 10, ,000 AWULT of 4.25 years

6 COVENANT INFORMATION Below is a summary of the last reported financial accounts for each tenant, which illustrates the excellent strength of the tenant line-up within the parade. Tenant Date Sales Turnover ( 000 s) Pre-Tax Profit/(Loss) ( 000 s) Tangible Net Worth ( 000 s) D&B Rating Sportswift Ltd (t/a Card Factory) Freedom Sportsline Ltd (t/a Foot Locker) Sportsdirect.com Retail Limited (t/a Sports Direct. com) 31/01/ ,676 62,320 58,862 31/12/ ,816 2,821 22,957 26/04/2015 2,074, , ,400 5A1 minimum risk of business failure 4A1 minimum risk of business failure 5A1 minimum risk of business failure VAT We understand the property is currently elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged the sale will be dealt with as a Transfer of a Going Concern.

7 ASSET MANAGEMENT There is potential to secure vacant possession of the second floor above Card Factory and Foot Locker and change the use to residential subject to planning consent. A larger residential scheme to extend the first and second floors at the rear could also be considered, subject to planning consent. PROPOSAL We are instructed to seek offers in excess of 3,675,000 (Three Million, Six Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 5.75%, allowing for purchaser s costs of 6.51% FURTHER INFORMATION A copy of this brochure and additional supporting information, including EPC ratings, is available to view at: Ross Hewes John Burnside +44 (0) (0) (0) (0) ross.hewes@capita.co.uk john.burnside@capita.co.uk 65 Gresham Street London EC2V 7NQ +44 (0) Subject to Contract Capita Property & infrastructure Ltd ( CPI ), trading as Capita, for itself and as agent for the vendors or lessors (the Seller ) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on the part of CPI or the Seller, (b) no such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements, particulars (3) The Seller does not make or give, and neither CPI nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the incidence of VAT. (5) No liability is accepted and no representation is made by either CPI or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CPI would otherwise have for any fraudulent concealment or for any statements made fraudulently by it, its employees or agents. Capita l Real Estate: May 2016 Produced by Barbican Studio: +44(0)

8