Post on 26-Aug-2020
PARADE, SUTTON COLDFIELDPRIME HIGH STREET RETAIL INVESTMENT LET TO NATIONAL COVENANTS
INVESTMENT SUMMARY
100% prime retail pitch on Parade
Directly opposite main entrance to Gracechurch Shopping Centre
Let to two multinational, 5A1 occupiers: Superdrug Stores Plc and HSBC Bank Plc
Superdrug and HSBC have been in occupation for at least 27 and 16 years respectively
Freehold
Total passing rent of £198,500 pa
WAULT to expiry of 4.34 years (2.68 to break)
Potential redevelopment plan on upper floor (STP)
PROPOSAL
Offers sought in excess of £2,400,000 reflecting a net initial yield of 7.78%.Subject to contract and exclusive of VAT. Yields are net of purchaser’s costs of 6.36%
Sutton Coldfield is the most affluent borough of the West Midlands conurbation with high levels of household income and low unemployment
PARADE, SUTTON COLDFIELD
LOCATION AND DEMOGRAPHICS
Sutton Coldfield is located approximately 8 miles (13 km) north of Birmingham city centre, 11.5 miles (18.5km) east of Walsall and 8.5 miles (13.5km) south west of Tamworth.
The town benefits from excellent road links via the M6 which provides access to Manchester (95 miles) and the North West. The town also has easy access to the M42, to the east of the town, which in turn leads to the M5 and the south and west of England.
By rail there are direct and frequent commuter services from the town to Birmingham New Street (19 mins), which in turn provides direct connections to London (81 mins). Sutton Coldfield railway station is located within a 5 minute walk of the property.
Birmingham International Airport is located 14 miles (22.5 km) south east of the town, providing regular domestic and international flights.
CATCHMENT AND LOCAL ECONOMY
Sutton Coldfield is the most affluent borough within the West Midlands, the second most populous area of the UK after Greater London. The town has a substantial primary catchment population, with a Primary Retail Market Area estimated at 119,000 people and is expected to see above average growth in population over the period 2018-2023.
Reflecting the affluent demographic profile, the town contains a significantly above average proportion of adults of working age categorised within the most affluent AB social group (PROMIS).
In contrast, the least affluent D and E social groups are particularly under represented.
The area is regarded as one of the most desirable and prestigious residential locations within central England and contains eight out of the ten most expensive residential streets in the West Midlands.
The level of owner occupation in Sutton Coldfield is significantly above average ranking the town 11th of the 200 PROMIS Centres on this measure.
As the most affluent district in Birmingham, Sutton Coldfield benefits from high levels of household income and low levels of unemployment. The Service sector accounts for approximately 75% of total employment with manufacturing accounting for 11%. Reflecting the wealth in the local catchment, per capita spending levels are significantly above the PROMIS average for both comparison and retail warehouse goods.
The Langley Sutton Coldfield Consortium recently outlined plans for a 5,500 home housing development on Sutton Coldfield’s green belt, which will also include a new secondary school, three primary schools, a medical centre, a district centre with shops, café, gym, pub, retirement village and sports facilities, as well as linking the site to existing greenways in Sutton Coldfield.
MANCHESTER
EASTMIDLANDS
LUTON
STANSTED
BIRMINGHAM
GLOUCESTERSHIRE
2
127
28
252623
24
4
2
18
9
10
11
12
13
14
3
3
4
16
4
321
5
6
7
11
12
131415
78
9
10
20
19
1
32
4
56
17
18
5
4
2
1
2524
22
8
7 1
4
5
29
28
8
72
3
6
5
4
8
7
9
10
9
10
12
11
13
14
15
14
13
12
11
10
9
16
2
1
20
19
18
17
9
856
78
21
2
1
11
1
2
5
6
3
25
24
23
22
26
28
29
27
1
30
3433 32
31
34
36
35
34
36
37 4437
17
31
15
43
20
54 7
119
25
2423
22
14
12
11 10
56
7
12
98
5
10
16
65
2
543
17
34
16
17
18
19
10
11
12
13
14
15
2
67 5
9
6
14
2
4
3
1
26
22 21
M1
M25
M40
M25
M1
M10
A1(M)
M11
M40
M40
M1
M1
M1 M11
M5
M5
M5
M50
M45
M6
M6
M6(T)
M6
M5 M42
M42
SUTTON COLDFIELD
M42
M69
M54
M6
M1M53 M56
M58
M60
M60
M62M62
M11M48
M4
A465
A40
A44
9
A4
04
2
A479
A470
A4
70
A4112
A43
8A438
A40
A49
A4103
A40
A438
A419A433
A470
A44A
48
3
A465
A48
A436
A417
A44
A40
A42
9
A40
A44
A44
A40
A489
A46
A46
A458
A48
3
A470
A15
9
A15
A631
A46
A46
A16
A52
A158
A1121
A52
A16
A17
A46
A52
A607
A52
A1
A631
A156 A158
A16
A60
7
A15
A57
A1
A1
A15
A607A606
A17
A40A406
A41
A406
A10
A12
A17
A47
A17
A151
A1
A1139
A47
A16
A47
A6
A427 A605
A4
3
A6116
A14
1
A606
A5
A45
A10
A505
A11
A14
A10
A428
A428
A13
4 A14
A14
0
A143
A1066
A11
A11
A11
65
A142
A10
A134
A148
A148
A10
65
A47
A10
A110
1
A47
A1122
A16
A6
00
3
A14
A14
A508
A421
A14
A13
A127A127
A40A418
A41
A4
010
A4
13
A41
A43
A5
A6
A1
A602
A10
A414
A12
A120
A130
A13
1
A13
1
A134
A12
A130
A120
A13
3
A120
A12
A420
A34
A43
A422
A419
A505
A458
A4
83
A470
A42
9
A50
A51
A5
A6
A6
A5
A5
A50
A38A42
A34
A38
A52
A53
A61
A34
A55
A52
A53
A500
A523A515
A623
A628 A616
A494
A515
A449A448
A441
A435
A429
A428
A508
A442A44 A46
A43
A45
A43
A6
Hertford
WelwynGarden
City Ware
HatfieldHoddesdon
Royston
Biggleswade
EastDereham
Thetford
Stowmarket
Bury St Edmunds
Newmarket
Mildenhall
Ely
SudburySaffronWalden
Haverhill
Swaffham
King'sLynn
Stamford
Boston
WisbechDownham
Market
Spalding
March
St Ives
Huntingdon
St Neots
Rushden
Kettering
Wellingborough
NewportPagnell
Rayleigh
Chelmsford Maldon
Witham
Braintree
Bishop's Stortford
Cirencester
Didcot
Stroud
Witney Kidlington
ChigwellBarnet Enfield
Beaconsfield
HarrowPontypridd
Caerphilly
Cwmbran
Pontypool
Letchworth
St Albans
Hitchin
Dunstable
Berkhamsted
Tring
Marlow
HemelHempstead
LeightonBuzzard
Thame
Abingdon
Bicester
Aylesbury
Daventry
Banbury
Retford
Gainsborough
Newark-on-Trent
Grantham
Leek
Matlock
Bebington
Flint
Kirkby
Evesham
Bromsgrove
GreatMalvern
Tewkesbury
Prestatyn
Oswestry
Nantwich
Newport
Chepstow
Abergavenny
MerthyrTydfil
Hereford
Uttoxeter
Ashbourne
MacclesfieldBuxton
Louth
Aberdare
Hertford
WelwynGarden
City Ware
HatfieldHoddesdon
Royston
Biggleswade
EastDereham
Thetford
Stowmarket
Bury St Edmunds
Newmarket
Mildenhall
Ely
SudburySaffronWalden
Haverhill
Swaffham
King'sLynn
Stamford
Boston
WisbechDownham
Market
Spalding
March
St Ives
Huntingdon
St Neots
Rushden
Kettering
Wellingborough
NewportPagnell
Rayleigh
Chelmsford Maldon
Witham
Braintree
Bishop's Stortford
Cirencester
Didcot
Stroud
Witney Kidlington
ChigwellBarnet Enfield
Beaconsfield
HarrowPontypridd
Caerphilly
Cwmbran
Pontypool
Letchworth
St Albans
Hitchin
Dunstable
Berkhamsted
Tring
Marlow
HemelHempstead
LeightonBuzzard
Thame
Abingdon
Bicester
Aylesbury
Daventry
Banbury
Retford
Gainsborough
Newark-on-Trent
Grantham
Leek
Matlock
Bebington
Flint
Kirkby
Evesham
Bromsgrove
GreatMalvern
Tewkesbury
Prestatyn
Oswestry
NantwichWrexham
Newport
Chepstow
Abergavenny
MerthyrTydfil
Hereford
Uttoxeter
Ashbourne
MacclesfieldBuxton
Louth
Aberdare
Wigan
Norwich
Stevenage
Cambridge
Corby
Peterborough
RedditchNorthampton
Southend-on-Sea
Brentwood
Colchester
Basildon
Swindon
Cheltenham
Harlow
Watford
Newport
Luton
Bedford
Amersham
HighWycombe
Oxford
Milton Keynes
Chesterfield
Rotherham
Mansfield
Lincoln
LeamingtonSpa
EllesmerePort
Worcester
Gloucester
Cannock
Newcastle-Under-Lyme
Stafford
Crewe
Chester
Wigan
Norwich
Stevenage
Cambridge
Corby
Peterborough
RedditchNorthampton
Southend-on-Sea
Brentwood
Colchester
Basildon
Swindon
Cheltenham
Harlow
Watford
Newport
Luton
Bedford
Amersham
HighWycombe
Oxford
Milton Keynes
Chesterfield
Rotherham
Mansfield
Lincoln
LeamingtonSpa
EllesmerePort
Worcester
Gloucester
Cannock
Newcastle-Under-Lyme
Stafford
Crewe
Chester
Melton Mowbray
Wigston
Eastwood
Ilkeston
Rugeley
Stone
Halesowen
Telford
West Bromwich
Walsall
Dudley
KidderminsterSolihull
NuneatonHinckley
Burton uponTrent
Rugby
MANCHESTER
LEICESTER
SHEFFIELD
WOLVERHAMPTON
BIRMINGHAM
DERBY
LIVERPOOL
COVENTRY
MANCHESTER
SHEFFIELD
LIVERPOOL
BIRMINGHAM
LEICESTER
WOLVERHAMPTON
NOTTINGHAMNOTTINGHAMDERBY
COVENTRY
COLESHILL ST U
PPER HO
LLAND
RD
TRINITY HILL RECTORY RD
PARK RD
MANOR RD
UPPER HOLLAND RD
PARA
DE
S PARADE S PARADE
LOW
ER P
ARAD
E
A512
7
A512
7
A5127
QUEEN ST
COLESHILL RD
UPPE
R CL
IFTO
N RD
RED ROSE CENTRE
SUTTONCOLDFIELD
NEWHALL WALK RETAIL PARKAND 69-101 THE PARADE
GRACECHURCHCENTRE
SUTTONCOLDFIELD
63-67 PARADE
PARADE, SUTTON COLDFIELD
RETAILING IN SUTTON COLDFIELD
Sutton’s strength and resilience stems from the backcloth of an extensive and largely prosperous catchment area, in conjunction with a compact and easy to use core shopping area; convenient and reasonably priced car parking, along with excellent public transport accessibility.
The town’s retail centre is focussed around Parade, Newhall Retail Park and Gracechurch Shopping Centre, which comprises circa 550,000 sq ft and attracts weekly footfall in excess of 130,000. Anchor tenants within the town include Boots, H&M and TK Maxx.
The Parade, which is pedestrianised, provides a vibrant ‘high street’ offer and accommodates a broad range of national retailers including Aldi, The Entertainer, Waterstones and Card Factory.
Demonstrating its commitment to Sutton Coldfield, M&G Real Estate recently announced it had enlisted the architecture firm Chapman Taylor – a regeneration specialist and renowned for its work on at St Pancras International, Heathrow’s Terminal 2 and 5’s retail section, Brent Cross shopping centre in London and MediaCityUK in Manchester – to draft conceptual plans for the future of Sutton Coldfield’s town centre.
GRA
CECH
URCH
SHO
PPIN
G C
ENTR
E
TRESSPASS
50 metres
For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011
Sutton Coldfield
Experian Goad Plan Created: 22/05/2019Created By: Cushman and Wakefield
Copyright and confidentiality Experian, 2019. © Crowncopyright and database rights 2019. OS 100019885
PARADE, SUTTON COLDFIELD
DESCRIPTION
The property comprises two well configured retail units arranged over ground, basement and first floors. 67 Parade utilises ground and basement only.
SITUATION
The subject premises sit in a 100% prime position on the east side of Sutton Coldfield’s main pedestrianised retail thoroughfare, Parade. The property is directly opposite the main entrance to Centre Mall, a significant footfall driver to the immediate locality.
Lower Parade is the focal point for the entire town’s bus stops which is approximately 25 metres from the subject property.
Other retailers in the vicinity include Waterstones, Boots and Beaverbrooks.
To the northern end of Parade, a short distance from the property, Key Land Development and Urban Village are developing a £15m luxury residential complex. The development will boast 63 apartments in total and a new restaurant on the ground floor.
PARADE, SUTTON COLDFIELD
TENURE
63-67 Parade is held freehold as outlined in red on the Title Plan.
TENANCY
Unit Tenant Accommodation Area (sq ft) Area (sq m) Annual Rent (Zone A psf) Lease Start Break Option Lease End
Unit A 63-65 Parade Superdrug
Ground (retail) Ground (ITZA)
Ground Floor (ancillary) First Floor (ancillary) Basement (ancillary)
Basement Void (unused)
4,001 1,271 141 496
1,999 1,830
Total: 8,467
371.7 118.0 13.0 46.1
185.7 170.0
Total: 786.4
£110,000 (£80.50) 29/09/2018 29/09/2020 28/09/2023
Unit B 67 Parade HSBC
Ground (retail) Ground (ITZA)
First Floor (unused) Basement (ancillary)
3,468 1,073 484 1,491
Total: 5,443
322.2 99.7
44.96 138.5
Total: 605.4
£88,500 (£79.00) 31/07/2018 n/a 30/07/2023
Total 13,910 1,391.8 £198,500
50 metres
For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011
Sutton Coldfield
Experian Goad Plan Created: 22/05/2019Created By: Cushman and Wakefield
Copyright and confidentiality Experian, 2019. © Crowncopyright and database rights 2019. OS 100019885
The property comprises two well configured retail units with potential asset management
angles on the upper parts (STP)
For indicative purposes only
PARADE, SUTTON COLDFIELD
COVENANT INFORMATION
A summary of the last three years of reported accounts for both tenants is set out below:
Superdrug Stores plc:
Superdrug is the United Kingdom’s second largest beauty and health retailer, currently operating stores in England, Scotland, Wales and Ireland.
Superdrug is owned by AS Watson, the retail division of the Hong Kong based conglomerate CK Hutchinson Holdings Limited.
HSBC Bank plc:
HSBC is one of the world’s largest banking organisations serving more than 37 million customers from 70 countries. The company has approximately 4,000 offices worldwide and is listed on the London, New York, Paris and Bermuda stock exchanges.
Y/E Y/E 30/12/2017 £’000
Y/E 30/12/2016 £’000
Y/E 30/12/2015 £’000
Sales Turnover 1,241,783 1,213,600 1,105,002
Pre-Tax Profit 92,934 80,385 56,842
Total Assets 753,222 745,502 690,928
Y/E Y/E 31/12/2018 £’000
Y/E 31/12/2017 £’000
Y/E 31/12/2016 £’000
Sales Turnover 16,670,000 19,760,000 20,641,000
Pre-Tax Profit 1,974,000 2,370,000 874,000
Total Assets 604,958,000 818,868,000 816,829,000
PARADE, SUTTON COLDFIELD
EPC RATINGSuperdrug – E HSBC – E
Available on request.
VATThe property has been elected for VAT. We anticipate that the transaction will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL
Offers sought in excess of £2,400,000, reflecting a net initial yield of 7.78%.
Subject to contract and exclusive of VAT. Yields are net of purchaser’s costs at 6.36%.
FURTHER INFORMATIONFor further information please contact:
Andrew Marshall +44 (0) 207 152 5073 andrew.p.marshall@cushwake.com
Fraser Ramage +44 (0) 207 152 5963 fraser.ramage@cushwake.com
Justin Quibell +44 (0) 121 697 7213 justin.quibell@cushwake.com
MISREPRESENTATION ACT: Cushman & Wakefield and AGL gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield and AGL as any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property. June 2019. Designed and Produced by Creativeworld Tel 01282 858200.
43/45 Portman Square, London W1A 3BG