57 High Street CHELMSFORD

Transcription

1 57 High Street CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE

2 INVESTMENT SUMMARY Chelmsford is one of the largest and most affluent retail centres in Essex, with a thriving economy with over 11,000 businesses and 50,000 jobs. 100% prime freehold retail investment situated between the City s two shopping centres. Newly agreed reversionary lease at a market rent. Let to the strong national covenant of Nationwide Building Society with just over 9 years unexpired. Ideally situated to benefit from the Bond Street Development, which will be anchored by John Lewis, which is predicted to increase comparison spend by 27%. Voted one of the top 10 most 'Credit Crunch Resistant Towns' (CACI 2010). 51% more 'Wealthy Executives' (CACI's highest affluence group) in Chelmsford than the national average. Our clients are seeking offers in excess of 2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 5.25%, after allowing for purchaser s costs of 6.44%. 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 2

3 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION LOCATION Chelmsford is located in the heart of Essex, 30 miles north east of central London, 21 miles south of Colchester and 16 miles east of Harlow. The city has excellent communication links with the A12, providing dual carriage access to the M25, 12 miles to the south west. Other nearby roads include the A131, running north to Braintree and south to Basildon, and the A414 which runs west to Harlow. Chelmsford Railway Station has a fast and frequent commuter service to London Liverpool Street Station, with a fastest journey time of 34 minutes. The station is the busiest station in the east of England, with over 7,000,000 passengers a year. IPSWICH Stansted Airport is approximately 13.5 miles to the north west and is a base for a number of major European low cost carriers. In 2015 it was the fourth busiest airport in the UK. A1(M) Stansted Airport A120 M11 A10 A120 BRAINTREE A12 HARLOW A1(M) COLCHESTER A133 A12 CHELMSFORD A414 M25 M25 A131 A12 M11 M1 A127 A12 M25 LONDON 57 HIGH STREET, CHELMSFORD SOUTHEND-ON-SEA A13 PRIME RETAIL BANK INVESTMENT FOR SALE 3

4 DEMOGRAPHIC PROFILE Chelmsford is the only city in Essex and has a large and dominant primary catchment area of 404,000, which is above the sub regional centre average. The catchment population is one of the most affluent of the PROMIS catchments, ranking it 29 of the PROMIS centres. 62% of the population is within the highest social grade of A, B and C1 grouping. Major employers in the town include M&G Investments, BAE Systems, The Royal Sun Allliance and Amlin. RETAILING IN CHELMSFORD Chelmsford has an estimated 1.16 million sq ft of retail accommodation, making it comparable with the sub regional centre average. The prime retailing within Chelmsford is concentrated on the pedestrianised High Street, between the city s two covered shopping centres, The Meadows and High Chelmer. Retailers on the High Street include Marks & Spencer, Debenhams, H&M, GAP and Waterstones. The Benson Elliott owned Meadows Shopping Centre is anchored by Wilkinsons, Odeon Cinema and Sportsworld, and offers more mass market retailing. The LaSalle owned High Chelmer Shopping Centre is anchored by Primark, with tenants including Boots, New Look and Topshop. The new proposed Bond Street development is an open air 300,000 sq ft retail and leisure development anchored by a 120,000 sq ft John Lewis department store and a 5-screen Cineworld. The developers, Aquila, started construction on the scheme in March 2015, with completion due in autumn The new development will add significantly to Chelmsford s retail and leisure offer, and retailers who have already committed include Monsoon, Fat Face, Hotel Chocolat, Schuh and Snow + Rock, with restaurant retailers including Byron, ASK, Las Iguanas and Prezzo. The Bond Street development will see comparison spend in Chelmsford increase by 27% to 660.9m, placing it alongside Tunbridge Wells, York and Maidstone (CACI 2014). The subject property is ideally situated to benefit from the new development. 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 4

5 TO BE SCHUH BOND STREET DEVELOPMENT Anchored by N Other tenants include: THE WHITE COMPANY LONDON BLUE SKY For illustrative purposes only 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 5

6 SITUATION The subject property occupies a prime trading location on the pedestrianised High Street, adjacent to Moss and Goldsmiths and opposite the main entrance to the Meadows Shopping Centre. The goad plan extract highlights the unit in red. DESCRIPTION The property comprises a well configured ground floor retail unit with ancillary, office and storage space on the first and second floors. The property is serviced to the rear. ACCOMMODATION Jackson Criss have inspected the property and can confirm the following approximate dimensions and areas:- Gross Frontage 24 ft 4 in 7.4 m Net Frontage 22 ft 7 in 6.9 m Shop Width 23 ft 7.0 m Shop Depth 98 ft 29.9 m Ground Floor Sales 1,951 sq ft sq m Ground Floor ITZA 847 units First Floor Offices / Staff 1,214 sq ft sq m Second Floor Stock Offices / Ancillary 260 sq ft 24.2 sq m Total Area 3,425 sq ft sq m 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 6

7 RENTAL VALUE The rent passing of 154,000 pax agreed with Nationwide at the June 2015 rent review reflects a Zone A rent of 170 per sq ft, applying 7.50 per sq ft to the first floor and 3.50 per sq ft to the second floor. The most salient rental evidence can be set out as follows: High Street (Metrobank) Open market letting April The company have taken a 25 year lease at a rent of 325,000 pax, reflecting a headline Zone A of 200 per sq ft and net Zone A of 198 per sq ft High Street (McDonalds) Lease renewal April 2016, on a 10 year lease, at a rent of 310,000 pa, reflecting a headline Zone A rate of per sq ft and a net Zone A of per sq ft High Street (icandy) Open market letting September 2015, on a new 10 year lease, at a headline Zone A of per sq ft and a net Zone A of per sq ft High Street (RBS) Lease renewal effective August 2015, agreed at a rent of 210,000 pax, reflecting a net Zone A of per sq ft. TENURE The property is held freehold. TENANCY The property is let to Nationwide Building Society on a Full Repairing and Insuring lease, for a term of 10 years from 24 th June 2015, at a rent of 154,000 per annum exclusive. There is therefore just over 9 years unexpired on the lease /41 High Street (Barclays) Rent review March 2015, 378,000 pa, reflecting a net Zone A of per sq ft. It is therefore our opinion that the rent passing reflects the current market rental value as of today s date, devaluing to a Zone A rent of 170 per sq ft and offers excellent prospects for rental growth, given the most recent evidence and the past 200 ZA rental tone. 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 7

8 COVENANT Nationwide Building Society is a British mutual financial institution and the largest building society in the world. They currently have around 700 branches within the UK. A summary of the financial results can be set out as follows:- 04/04/2015 m 04/04/2014 m 04/04/2013 m Turnover Pre-tax profit 1, Net Worth 8,701 7,950 5,686 TOWN PLANNING We have made verbal enquiries to the local planning authority who have confirmed that the property is Grade II listed and is situated within the conservation area. VAT The property has been elected for VAT purposes, and it is anticipated that the investment sale will be treated as a Transfer Of a Going Concern (TOGC). EPC The property has an EPC rating of D88. An EPC report for the property can be provided upon request. 57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 8

9 PROPOSAL We are instructed to seek offers in excess of 2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.25%, after allowing for purchaser s costs of 6.44%. The most salient investment evidence can be set out as follows:- 68/71 High Street, Chelmsford 100% prime retail block of 4 units let to Carphone Warehouse, Claire s Accessories, icandy and Clintons, within a WAULT of 7.56 years (to break 5.16 years). The property was sold in January 2016 at a price of 8.5m, which reflected a net initial yield of circa 4.95%. FURTHER INFORMATION For further information, please contact: Philip Hay phay@jacksoncriss.co.uk Brook Wannop brookw@jacksoncriss.co.uk DESIGNED BY TCC Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0087. April HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 9