57 High Street CHELMSFORD - Jackson Criss€¦ · 57 High Street CHELMSFORD ... TENURE TENANCY...
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57 High Street CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
Transcript of 57 High Street CHELMSFORD - Jackson Criss€¦ · 57 High Street CHELMSFORD ... TENURE TENANCY...
57 High StreetCHELMSFORD
PRIME RETAIL BANK INVESTMENT FOR SALE
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
INVESTMENT SUMMARY
ChelmsfordisoneofthelargestandmostaffluentretailcentresinEssex,withathrivingeconomywithover11,000businessesand50,000jobs.
100%primefreeholdretailinvestmentsituatedbetweentheCity’stwoshoppingcentres.
Newlyagreedreversionaryleaseatamarketrent.
LettothestrongnationalcovenantofNationwideBuildingSocietywithjustover9yearsunexpired.
IdeallysituatedtobenefitfromtheBondStreetDevelopment,whichwillbeanchoredbyJohnLewis,whichispredictedtoincreasecomparisonspendby27%.
Votedoneofthetop10most'CreditCrunchResistantTowns'(CACI2010).
51%more'WealthyExecutives'(CACI'shighestaffluencegroup)inChelmsfordthanthenationalaverage.
Ourclientsareseekingoffersinexcessof£2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds),subjecttocontractandexclusiveofVAT,whichreflectsanetinitialyieldof5.25%,afterallowingforpurchaser’scostsof6.44%.
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 2
LOCATION
ChelmsfordislocatedintheheartofEssex,30milesnortheastofcentralLondon,21milessouthofColchesterand16mileseastofHarlow.
ThecityhasexcellentcommunicationlinkswiththeA12,providingdualcarriageaccesstotheM25,12milestothesouthwest.OthernearbyroadsincludetheA131,runningnorthtoBraintreeandsouthtoBasildon,andtheA414whichrunswesttoHarlow.
ChelmsfordRailwayStationhasafastandfrequentcommuterservicetoLondonLiverpoolStreetStation,withafastestjourneytimeof34minutes.ThestationisthebusieststationintheeastofEngland,withover7,000,000passengersayear.
StanstedAirportisapproximately13.5milestothenorthwestandisabaseforanumberofmajorEuropeanlowcostcarriers.In2015itwasthefourthbusiestairportintheUK.
COLCHESTER
LONDON
CHELMSFORD
HARLOW
COLCHESTER
BRAINTREE
StanstedAirport
IPSWICH
SOUTHEND-ON-SEA
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 3
M25
M25
M11
M11
M25
M1
A1(M)
A1(M)
A120
A120
A133
A131
A414
A127
A12
A12
A13
A12
A12A10
DEMOGRAPHIC PROFILEChelmsfordistheonlycityinEssexandhasalargeanddominantprimarycatchmentareaof404,000,whichisabovethesubregionalcentreaverage.ThecatchmentpopulationisoneofthemostaffluentofthePROMIScatchments,rankingit29ofthePROMIScentres.62%ofthepopulationiswithinthehighestsocialgradeofA,BandC1grouping.MajoremployersinthetownincludeM&GInvestments,BAESystems,TheRoyalSunAlllianceandAmlin.
RETAILING IN CHELMSFORDChelmsfordhasanestimated1.16millionsqftofretailaccommodation,makingitcomparablewiththesubregionalcentreaverage.TheprimeretailingwithinChelmsfordisconcentratedonthepedestrianisedHighStreet,betweenthecity’stwocoveredshoppingcentres,TheMeadowsandHighChelmer.RetailersontheHighStreetincludeMarks&Spencer,Debenhams,H&M,GAPandWaterstones.
TheBensonElliottownedMeadowsShoppingCentreisanchoredbyWilkinsons,OdeonCinemaandSportsworld,andoffersmoremassmarketretailing.
TheLaSalleownedHighChelmerShoppingCentreisanchoredbyPrimark,withtenantsincludingBoots,NewLookandTopshop.
ThenewproposedBondStreetdevelopmentisanopenair300,000sqftretailandleisuredevelopment
anchoredbya120,000sqftJohnLewisdepartmentstoreanda5-screenCineworld.Thedevelopers,Aquila,startedconstructionontheschemeinMarch2015,withcompletiondueinautumn2016.
ThenewdevelopmentwilladdsignificantlytoChelmsford’sretailandleisureoffer,andretailerswhohavealreadycommittedincludeMonsoon,FatFace,HotelChocolat,SchuhandSnow+Rock,withrestaurantretailersincludingByron,ASK,LasIguanasandPrezzo.TheBondStreetdevelopmentwillseecomparisonspendinChelmsfordincreaseby27%to£660.9m,placingitalongsideTunbridgeWells,YorkandMaidstone (CACI 2014).
Thesubjectpropertyisideallysituatedtobenefitfromthenewdevelopment.
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 4
TO BE SCHUH
BLU
E SK
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Forillustrativepurposesonly
BOND STREETDEVELOPMENT
Anchored by
Other tenants include:
THE WHITE COMPANYL O N D O N
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 5
SITUATIONThesubjectpropertyoccupiesaprimetradinglocationonthepedestrianisedHighStreet,adjacenttoMossandGoldsmithsandoppositethemainentrancetotheMeadowsShoppingCentre.Thegoadplanextracthighlightstheunitinred.
DESCRIPTIONThepropertycomprisesawellconfiguredgroundfloorretailunitwithancillary,officeandstoragespaceonthefirstandsecondfloors.
Thepropertyisservicedtotherear.
ACCOMMODATION JacksonCrisshaveinspectedthepropertyandcanconfirmthefollowingapproximatedimensionsandareas:-
GrossFrontage 24ft4in 7.4mNetFrontage 22ft7in 6.9mShopWidth 23ft 7.0mShopDepth 98ft 29.9mGroundFloorSales 1,951sqft 181.2sqm
GroundFloorITZA 847units
FirstFloorOffices/Staff 1,214sqft 112.8sqmSecondFloorStockOffices/Ancillary
260sqft 24.2sqm
Total Area 3,425 sq ft 318.2 sq m
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 6
TENURE Thepropertyisheldfreehold.
TENANCY ThepropertyislettoNationwideBuildingSocietyonaFullRepairingandInsuringlease,foratermof10yearsfrom24thJune2015,atarentof£154,000perannumexclusive.Thereisthereforejustover9yearsunexpiredonthelease.
RENTAL VALUETherentpassingof£154,000paxagreedwithNationwideattheJune2015rentreviewreflectsaZoneArentof£170persqft,applying£7.50persqfttothefirstfloorand£3.50persqfttothesecondfloor.Themostsalientrentalevidencecanbesetoutasfollows:-
1. 38 High Street (Metrobank) OpenmarketlettingApril2016.Thecompanyhavetakena25yearleaseatarentof£325,000pax,reflectingaheadlineZoneAof£200persqftandnetZoneAof£198persqft.
2. 36-37 High Street (McDonalds) LeaserenewalApril2016,ona10yearlease,atarentof£310,000pa,reflectingaheadlineZoneArateof£182.40persqftandanetZoneAof£173.00persqft.
3. 69 High Street (iCandy) OpenmarketlettingSeptember2015,onanew10yearlease,ataheadlineZoneAof£196.70persqftandanetZoneAof£178.88persqft.
4. 26 High Street (RBS) LeaserenewaleffectiveAugust2015,agreedatarentof£210,000pax,reflectinganetZoneAof£189.52persqft.
5. 40/41 High Street (Barclays) RentreviewMarch2015,£378,000pa,reflectinganetZoneAof£178.00persqft.
Itisthereforeouropinionthattherentpassingreflectsthecurrentmarketrentalvalueasoftoday’sdate,devaluingtoaZoneArentof£170persqftandoffersexcellentprospectsforrentalgrowth,giventhemostrecentevidenceandthepast£200ZArentaltone.
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 7
COVENANTNationwideBuildingSocietyisaBritishmutualfinancialinstitutionandthelargestbuildingsocietyintheworld.Theycurrentlyhavearound700brancheswithintheUK.
Asummaryofthefinancialresultscanbesetoutasfollows:-
04/04/2015 £m
04/04/2014 £m
04/04/2013 £m
Turnover 447 493 571Pre-taxprofit 1,044 677 210NetWorth 8,701 7,950 5,686
TOWN PLANNING WehavemadeverbalenquiriestothelocalplanningauthoritywhohaveconfirmedthatthepropertyisGradeIIlistedandissituatedwithintheconservationarea.
VATThepropertyhasbeenelectedforVATpurposes,anditisanticipatedthattheinvestmentsalewillbetreatedasaTransferOfaGoingConcern(TOGC).
EPCThepropertyhasanEPCratingofD88.AnEPCreportforthepropertycanbeprovideduponrequest.
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 8
Messrs.JacksonCrissforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyaretogivenoticethat:(i)theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersorlessees,anddonotconstitute,norconstitutepartof,anofferorcontract;(ii)alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrectbutanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;(iii)nopersonintheemploymentofMessrs.JacksonCrisshasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtothisproperty.JC0087.April2016.D
ESIG
NED
BY
TCC
PROPOSALWeareinstructedtoseekoffersinexcessof£2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichreflectsanetinitialyieldof 5.25%,afterallowingforpurchaser’scostsof6.44%.
Themostsalientinvestmentevidencecanbesetoutasfollows:-
68/71 High Street, Chelmsford 100%primeretailblockof4unitslettoCarphoneWarehouse,Claire’sAccessories,iCandyandClintons,withinaWAULTof7.56years(tobreak5.16years).
ThepropertywassoldinJanuary2016atapriceof£8.5m,whichreflectedanetinitialyieldofcirca4.95%.
FURTHER INFORMATION Forfurtherinformation,pleasecontact:
Philip Hay02076377100
Brook Wannop 02076377100
INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION
57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 9
