How To Sell A House In Portmouth For \U00A31.5M

Transcription

1 Prime Freehold Retail Investment Property Commercial Road, Portsmouth PO1 1BU

2 M4 M4 M25 Windsor LONDON A346 A339 A342 M25 M3 Basingstoke A3 A287 A34 A303 Guildford A24 A31 Salisbury Winchester M3 A36 A338 A272 A272 M27 A286 Southampton Investment Summary A3 A31 A3(M) M27 A27 M275 Portsmouth is one of the major retailing centres on the south coast Brighton Chichester A27 PORSMOUH Situated in the prime pedestrianised retail pitch at the entrance to the Cascades Shopping Centre Excellent retail covenant with a reversionary lease for a further term of 5 years granted from September 2015 Re-based rent of 125,000 pa ( Zone A) with reversion to 130,000 pa ( Zone A) Our client will top up the rent to 130,000 pa from the date of completion until the start of the reversionary lease We are instructed to seek offers in excess of 1,638,000 which reflects a net initial yield of 7.50% assuming acquisition costs of 5.80%, subject to contract and exclusive of VA Location Portsmouth is Hampshire s second largest city and is a major commercial and retailing centre situated on the south coast. It is one of the country's main shipping ports and is home to the Royal Navy. he city is located 19 miles east of Southampton, 20 miles west of Chichester, 29 miles south east of Winchester and 70 miles south west of London. Portsmouth benefits from excellent road communications with immediate access from the city centre via the M275 to the M27/A27 which forms the main coastal route with Southampton to the west and Eastbourne to the east. In addition, this route links to the A3(M) providing access to the M25 and London. Portsmouth mainline railway station provides regular services to London Waterloo, with an average journey time of approximately 1 hour 30 minutes. Southampton Airport is located 20 miles to the west.

3 Demographics Portsmouth has an estimated primary catchment population of 483,000 people of which 250,000 consider Portsmouth as their main shopping destination. he city has a higher than average ABC1 population of 51.3% with unemployment below the national average. he city is a major tourist location and the local economy is boosted by an average 4.6 million tourists spending close to an additional 233 million per annum (source: PROMIS). Retailing in Portsmouth he city centre provides approx 1.2 million sq ft of retail floor space, with the prime retail pitch being focused on the pedestrianised section of Commercial Road, between the Cascades Shopping Centre and Arundel Street. he Cascades Shopping Centre was opened in 1989 and has recently had a 20m refurbishment and offers approximately 275,000 sq ft of retailing space. he major anchors are M&S, H&M, and Primark, who all have major frontage on Commercial Road, adjacent to the subject property. he city centre is set to be greatly improved by the proposed development of the Northern Quarter between Commercial Road, Market Way and the Cascades Shopping Centre. he scheme is intended to be leisure led, with restaurants, a cinema and potentially a hotel and there will also be a retail element within it. Outline plans have been submitted with a view to the build commencing in 2017 and predicted practical completion date in 2018.

4 HE PROPERY IS M AR M O CA HER RE VI VA C RG IN VA C PO H & OLL BA A RR ND E UN DL D SA VIL LS USC MENKIND Situation he subject property occupies a 100% prime trading position on the pedestrianised Commercial Road at the entrance to the Cascades Shopping Centre and adjacent to H Samuel, H&M and Primark. In the parade opposite the property are New Look, WH Smith, opshop, Costa and Carphone Warehouse. Importantly, the property will link with the pedestrianised circuit, which will result following completion of the proposed Northern Quarter development. VA C CH EU AR RO G E Description he property was constructed in 1989 at the same time as the Cascades Shopping Centre. he building is of a concrete framed construction and comprises a retail shop on ground floor with ancillary storage and office accommodation at the rear of the ground floor. here is further storage, WC and a staff kitchen at mezzanine level with steps up to a fire exit and loading bay at first floor, accessed via the Cascades Shopping Centre. he first floor also provides self-contained office accommodation with an entrance from Commercial Road. he ground floor may be used for any purpose within class A1 of the 1987 use classes order. he first floor may be used for purposes within classes A2 or B1, namely financial services or offices. VO DA FO NE LLOYDS W AL LI S

5 Accommodation he property provides the following net internal areas: Zone A Zone B Zone C Storage 1 Storage 2 Mezzanine First Floor OAL Area (sq m) Area (sq ft) ,421 he property has an approximate net frontage of 8.36m. enure Freehold enancy he property is let to AG Retail Cards Ltd until 28 September 2015 at a re-based rent of 125,000 pa ( Zone A). A new reversionary lease for a further 5 year term has been granted to A G Retail Cards Ltd from 29 September 2015 at a rent of 130,000 pa ( Zone A). he lease is drawn on full repairing and insuring terms. he first floor offices are sublet to a private individual. enant Covenant Information AG Retail Cards Ltd trades as Clinton Cards. Clintons was founded in 1968 and is a leading retailer of greetings cards, gifts and wrap. here are currently 400 stores in the UK. he company is managed by Schurman Retail Group which also operates 400 stores in North America. AG Retail Cards Ltd have a Dun & Bradstreet Rating of 4A2 which represents a lower than average risk of business failure. he tenant has shown the following recent financial performances:..... b... Sales urnover Profit / (Loss) Before axes angible Net Worth Net Current Assets (Liabilities) Fiscal Fiscal Non Consolidated Non Consolidated GBP GBP 1 Feb Feb 2013 ( 000s) ( 000s) 210,702 (1,774) 16,420 6, ,369 5,643 4,717 4,178

6 Market Commentary Portsmouth's retail core is focused on Commercial Road and the Cascades Shopping Centre. he prime pedestrianised thoroughfare is anchored at one end by Marks & Spencer and Boots and Debenhams at the other. he 960,000 sq ft Cascades Shopping Centre underwent a 20 million refurbishment in 2008, which incorporated a new 42,000 sq ft until for K Maxx and a 24,000 sq ft unit for Next. Retailing in Portsmouth city centre is due to be significantly boosted by the redevelopment of the Northern Quarter, where Centros are working in partnership with the Portsmouth City Council to bring forward a 500,000 sq ft scheme to the north of the Cascade Centre and the subject property. he mixed use scheme is due to boost retail provision in the city and is scheduled for completion in his will undoubtedly benefit the subject property, drawing and concentrating the prime retail pitch around the subject unit. Portsmouth has a good level of retailer demand which is reinforced by below average competition from neighbouring retail centres. Prime rents in Portsmouth reached circa 185 Zone A by 2008, however this level has since flattened to Zone A in the prime pitch. he table below illustrates some of the most recent, relevant transactions: Address... enant Date ransaction Rent (psf Zone A) 156 Commercial Road W H Smith Jan 2015 Rent Review 134 (net) 135 Commercial Road Commercial Road Vodafone July 2014 New Letting Costa Aug 2013 New Letting 130 (net) 119 Commercial Road Schuh Sep 2011 New Letting 157 Comment hird Party Award 145 (headline) Vodafone relocating from their existing 135 (net) store 234 Commercial Road A1 / A3 Consent 12 months rent free EPC Rating Proposal he property has been given an EPC Rating of C73. We are instructed to seek offers in excess of 1,638,000 for our client's freehold interest, which reflects a net initial yield of 7.50% assuming acquisition costs of 5.80% (based upon our client topping up the rent to 130,000 pa from completion until the start of the reversionary lease), subject to contract and exclusive of VA. VA he property is elected for VA. We anticipate the transaction will be treated as a transfer of a going concern. Further Information Should you have any queries or wish to make an inspection, please contact: Katherine Ilett DD: katherine.ilett@bidwells.co.uk Lucy Young DD: lucy.young@bidwells.co.uk Bidwells 25 Old Burlington Street London W1S 3 el: June 2015

7 IMPOR NOICE RELAING O HE MISREPRESENAION AC 1967 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: hese particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP have no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. he text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, rumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection. bidwells.co.uk Cert No 8542 ISO 9001, ISO 14001