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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET // READING · 2016-09-21 · john lewis primark m&s...
Transcript of 90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET // READING · 2016-09-21 · john lewis primark m&s...
90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET // READING
P R I M E R E T A I L B L O C K I N V E S T M E N T F O R S A L E
INVESTMENT SUMMARY
• Reading is one of the strongest retailing centres in the south east and is due to benefit from Crossrail opening in 2019.
• Freehold.
• Rarely available retail block, occupying a prime position at the junction of Broad Street and Chain Street, one of the main routes to Broad Street from The Oracle.
• 58% of the income is secured to the undoubted covenants of Barclays Bank PLC and SportsDirect.com Retail Limited with an overall WAULT of 6 years.
• Potential to increase the rents on both frontages given the discount to historic prime tones.
• The current rent passing is £1,387,001 per annum exclusive.
• Our clients are seeking offers in excess of £21,000,000 (Twenty One Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.18%, after allowing for purchasers costs of 6.75%.
INVESTMENT SUMMARY
90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
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JOHN LEWIS
PRIMARK
M&S
BROAD STREET
CHAIN STREET
FRIAR STREET
KING’S ROAD
THAMES TOWER
READING STATION
THE ORACLE SHOPPING CENTRE
90-93, 95-96 BROAD STREET& 1-5 CHAIN STREET
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE LOCATION
LOCATIONReading is Berkshire’s County Town and its principle commercial and retailing centre.
Strategically located on the M4/Thames Valley Corridor, the town is situated approximately 64 km (40 miles) west of Central London, 40 km (25 miles) south east of Oxford and 27 km (17 miles) north of Basingstoke.
The town benefits from excellent road communications and is located circa 6.4 km (4 miles) north of Junctions 10, 11 and 12 of the M4 Motorway.
Reading’s mainline railway station, the second busiest outside of London, is situated within 5 minutes’ walk of the property and provides regular services to London (Paddington) with a fastest journey time of approximately 25 minutes. The station has been upgraded and now includes additional platforms and a new entrance.
London’s Heathrow Airport is situated approximately 32 km (20 miles) to the east of the town and is accessed via the M4 Motorway.
Crossrail will come to Reading and is due for completion in 2019. It is anticipated that the opening of the line will further enhance the town’s position as one of the south east’s main transport hubs.
M25
M1
M1
M25
M23
M25
M3
M3
M4M4
M4
M40
M40
A1
J11
J10J12
A33
A329
A404
A413
A355
A40
A418
A34
A34
A4
A34
A4074
A4130
A4130
A4010
A406
A4074
A31
A31
A322
A322
A3
A3
A316
A3
A24
A24
A287
A308
A329(M)
A404 (M)
EPSOM
READING
WOKING
BASINGSTOKE
BRACKNELL
SLOUGH
OXFORD
MAIDENHEADLONDON
READING
WATFORD
HARROW
ST ALBANS
GUILDFORD
EPSOM
HIGH WYCOMBE
NEWBURY
HEATHROWAIRPORT
A329
SOUTHA
MPTO
N ST
DU
KE
ST
LO
ND
ON
ST
CROWN ST
LONDON RD
LONDON RD
WEST ST
BRIDG
E ST
CHATHAM ST FRIAR ST
WATLIN
GTO
N ST
CASTLE ST
MINSTER ST KING’S RD
KENAVON DR
FORBURY RDGREAT KNOLLYS ST
SOUTH ST
GARRARD ST
FIELD R
D
BROAD ST
CHA
IN ST
KING’S RD
QUEEN’S RD KING’S RD
QUEEN’S RD
A329
A33
A329
A329
THE ORACLESHOPPING
CENTRE
BROADSTREET
MALL
UNIVERSITYOF READING
READINGCOLLEGE
READING
To Junction 11and Basingstoke
To Junction 10London and
Heathrow Airport
To Oxford
To Junction 12
90-93, 95-96 & 1-5
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE LOCATION
DEMOGRAPHIC PROFILEReading has a resident population of circa 233,000 people and an estimated primary catchment of 640,000, ranking the town 19th of the 200 PROMIS Centres on this measure.
The catchment contains a significantly above average proportion of “wealthy executives” (CACI), with this category accounting for 23.6% of Reading’s population, compared to the national average of 8.5%.
The CBRE estimated shopping population of Reading is 416,000, ranking the town 17th of the PROMIS centres, which is above the average for the Regional Centres.
Reading ranks 13th in terms of the volume of comparison retail spend available in the catchment area. There is a high proportion of the more affluent AB households throughout most of Reading’s catchment, and a positive daily inflow of commuters due to the town’s well established office market. Employment is focused around IT, investment and insurance with key employers including Microsoft, Oracle, Prudential, EY, Thames Water and Verizon.
There are also several large public sector employers such as the Borough Council, the University of Reading, Inland Revenue and Royal Berkshire NHS Trust.
RISING EMPLOYMENT
KEYEMPLOYERS
WEALTHY EXECUTIVES
POPULATION OF C. 233,000
ESTABLISHED SHOPPING AREA
HIGH INFLOW OF COMMUTERS
AFFLUENT HOUSEHOLDS
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE LOCATION
RETAILING IN READINGReading is a dominant Regional retailing centre, ranked 14th in the Javaline Group Venuescore 2015-2016 Index.
The prime retailing within Reading is focused around the covered, Hammerson owned, Oracle Shopping Centre and the pedestrianised Broad Street. Retailers such as John Lewis, Marks & Spencer, Primark, Boots, H&M, Next and River Island are all located on Broad Street.
The Oracle Shopping Centre opened in 1999 and is situated to the east of Broad Street and comprises approximately 764,000 sq ft of retail and leisure accommodation, split across two levels. The Centre contains 102 individual units, together with two multi-storey car parks providing approximately 2,300 spaces. The scheme is anchored by Debenhams and House of Fraser.
The other main managed shopping centre is the Broad Street Mall, which is located at the western end of Broad Street. The scheme comprises approximately 400,000 sq ft of retail accommodation and is split over two levels. Occupiers here include TK Maxx, Argos, New Look and Peacocks.
Reading ranks 17th on the basis of its PMA Retail Score and 20th on the PMA Fashion Score; the town ranks 12th on the PMA Anchor Score.
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE LOCATION
BROAD STREET
QU
EE
N V
ICTO
RIA
ST
RE
ET
CR
OS
S S
TR
EET
(PEDESTRIANS ONLY)
(PEDESTRIA
NS O
NLY)
(CYCLES & PEDESTRIANS ONLY)
ST MA
RYS BUTTS
CH
AIN
MINSTER STREET
BUTT
ER M
ARK
ET
UN
ION
ST
RE
ET
(PEDESTRIANS ONLY)
STREET
SITUATIONThe subject property which is highlighted on the goad plan occupies a prime central trading location on the pedestrianised Broad Street at its junction with Chain Street, one of the main routes from the Oracle to Broad Street. Occupiers in the immediate vicinity include JLP, Marks & Spencer, River Island, Next, H&M and Pret A Manger.
The block is centrally located between the main entrances to Oracle and Broad Street Mall Shopping Centre.
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE LOCATION
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DESCRIPTIONThe property has its main frontage to Broad Street and a second frontage to Chain Street.
The Broad Street frontage is arranged over basement, ground, mezzanine and two upper floors, providing a combination of sales and ancillary space.
2-5 Chain Street comprises four individual units arranged to provide ground floor sales accommodation, together with a combination of mezzanine sales and basement ancillary accommodation.
95/96 Broad Street was constructed in the 19th century and comprises two retail units of traditional brick construction. 95 Broad Street is Grade II listed and is arranged on ground and 3 upper floors under a part-flat and part-pitched clay tiled roof. 96 Broad Street was originally two buildings converted into a single retail unit, with a return frontage to Chain Street.
The units benefit from shared rear servicing.
90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
THE SITE
TENANCY SCHEDULEADDRESS TENANT ACCOMMODATION LEASE START
DATELEASE EXPIRY
DATE BREAK RENT REVIEW
PASSING RENT P.A.
PASSING RENT (ZONE A / SQ FT) ERV P.A. ERV
(ZONE A / SQ FT) COMMENTS
90/93 Broad Street
Barclays Bank PLC
Ground Sales 5,936 sq ft
16/01/2009 15/01/2024 - 16/01/2019 £550,000 £258.00 £425,000 £200.00 -
ITZA 1,575 units
Basement Sales 4,728 sq ftBasement Ancillary 1,583 sq ft
Total 12,247 sq ft
90/93 Broad Street
SportsDirect.com Retail Limited
Ground Floor 492 sq ft
18/06/2011 17/06/2021 - 18/06/2016 £250,000 £10.15 £271,000 £11.00 -First Floor Sales 11,456 sq ftSecond Floor Sales 12,693 sq ft
Total 24,641 sq ft
Unit 2 Chain Street
Bravissimo Limited
Ground Sales 1,098 sq ft
03/12/2010 02/12/2020 - 03/12/2015 £80,000 £73.13 £91,000 £85.00 Rent review outstanding
ITZA 731 units
Basement Ancillary 1,080 sq ftMezzanine Sales 4,000 sq ft
Total 6,178 sq ft
Unit 3 Chain Street Blacks Retail Ltd
Ground Sales 1,061 sq ft
08/05/2013 07/05/2023 T:08/05/2018 08/05/2018 £90,000 £85.00 £90,000 £85.00 -
ITZA 719 units
Basement Ancillary 926 sq ftMezzanine Sales 4,542 sq ft
Total 6,529 sq ft
Unit 4 Chain Street
Keith William Gill & Bride Gill t/a Robert Gatward Jewellers
Ground Sales 851 sq ft
01/11/2004 31/10/2019 - 01/22/2014 £70,000 £105.00 £57,000 £85.00 Rent review outstanding
ITZA 653 unitsBasement Ancillary 926 sq ft
Total 1,777 sq ft
Unit 5 Chain Street
Washington Green Retail Limited
Ground Sales 647 sq ft
13/07/2007 12/07/2017 - - £57,000 £105.00 £43,500 £80.00 -ITZA 542 unitsBasement Ancillary 58 sq ft
Total 705 sq ft
95 Broad Street
Ann Summers Limited
Ground Sales 1,288 sq ft
25/12/2007 24/12/2022 - - £130,000 £200.00 £130,000 £200.00 -
ITZA 621 units
First Ancillary 389 sq ft
Second Ancillary 410 sq ftThird Ancillary 263 sq ft
Total 2,350 sq ft
96 Broad Street & 1/5 Chain Street
Cath Kidston Ltd
Ground Sales 1,482 sq ft
30/09/2011 29/09/2021 - 30/09/2016 £160,000 £200.00 £160,000 £200.00 -
ITZA 722 units
First Sales 684 sq ftFirst Ancillary 454 sq ft
Total 2,620 sq ft
Electricity substation
Southern Electric Power Distribution Plc
07/01/2003 06/01/2028 - - £1 - £1 - -
TOTALS 57,047 sq ft £1,387,001 £1,267,501
TENUREFreehold.
TENANCIESThe property is let in accordance with the adjacent tenancy schedule, producing a current rental income of £1,387,001 pax, with no shortfalls. The majority of leases are let on effectively Full Repairing and Insuring terms, recoverable via a service charge, details of which are available from this office. 95/96 Broad Street are let on Full Repairing and Insuring terms.
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
TENURE, TENANCIES, RENTAL VALUE & COVENANT
RENTAL VALUEWe have set out the individual rental values in the tenancy schedule above, resulting in a total rental value of £1,267,501 per annum. This reflects a prime Zone A tone of £200 per sq ft on the Broad Street frontage, and £80-£85 per sq ft Zone A on the Chain Street frontage.
We have applied an overall rate of £11 per sq ft to the Sports Direct demise.
The most salient rental evidence can be set out as follows:
9/10 BROAD STREET (TIGER RETAIL)Open market letting, April 2016, agreed at a rent of £195,000 per annum exclusive, which devalued to a net Zone A rent of £207.08 per sq ft.
35 BROAD STREET & UPPER PARTS OF 31 QUEEN VICTORIA STREET (ITSU) Open market letting July 2015, agreed at a rent of £165,000 per annum exclusive, which devalued to a net Zone A rent of £202.86 per sq ft.
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
TENURE, TENANCIES, RENTAL VALUE & COVENANT
COVENANT INFORMATIONThe summary of accounting information for each of the tenants is out below:
Sports Direct International Plc
28/04/2015 27/04/2014 26/04/2013Experian Score
GBP GBP GBP
Turnover £2,832,560,000 £2,705,958,000 £2,185,580,000
100Pre-tax profit £313,446,000 £239,452,000 £207,226,000
Net Worth £908,997,000 £565,983,000 £404,511,000
Robert Gatward Jewellers Limited
30/09/2014 30/09/2013 31/03/2013Experian Score
GBP GBP GBP
Turnover £7,703,679 - -
80Pre-tax profit £1,060,896 - -
Net Worth -£1,527,831 - -
Cath Kidston Limited
29/03/2015 30/03/2014 31/03/2013Experian Score
GBP GBP GBP
Turnover £115,420,000 £113,821,000 £105,049,000
100Pre-tax profit £10,242,000 £22,593,000 £18,694,000
Net Worth £38,286,000 £70,701,000 £50,618,000
Barclays Bank Plc
31/12/2015 31/12/2014 31/12/2013Experian Score
GBP GBP GBP
Turnover - - -
95Pre-tax profit £2,841,000,000 £2,309,000,000 £2,885,000,000
Net Worth £55,845,000,000 £55,576,000,000 £53,264,000,000
Blacks Outdoor Retail Ltd
02/02/2015 01/02/2014 31/01/2013Experian Score
GBP GBP GBP
Turnover £115,473,000 £99,218,000 £126,882,000
26Pre-tax profit -£15,036,000 -£10,696,000 -£21,214,000
Net Worth -£42,443,000 -£37,295,000 -£29,669,000
Ann Summers Limited
27/06/2015 28/06/2014 29/06/2013Experian Score
GBP GBP GBP
Turnover £104,818,310 £101,212,066 £114,914,259
90Pre-tax profit £1,025,990 -£3,928,273 £2,395,068
Net Worth £47,844,808 £46,975,132 £50,542,763
Bravissimo Limited
31/08/2014 31/08/2013 31/08/2012Experian Score
GBP GBP GBP
Turnover £54,059,256 £46,463,517 £44,672,590
100Pre-tax profit £4,684,806 £2,524,576 £1,766,322
Net Worth £10,563,399 £7,815,669 £6,017,769
Washington Green Retail Limited
30/04/2015 30/04/2014 30/04/2013Experian Score
GBP GBP GBP
Turnover £24,493,144 £21,154,701 £14,909,667
46Pre-tax profit £362,381 £389,936 -£1,358,702
Net Worth -£354,976 -£804,531 -£1,164,826
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
TENURE, TENANCIES, RENTAL VALUE & COVENANT
24 BROAD STREET, READING (LLOYDS)Freehold retail rack rented investment let to Lloyds for a further 10 years, sold in May 2016 for a price of £4,760,000, reflecting a net initial yield of 4.4%.
107/108 BROAD STREET (GAP)Freehold retail investment let to Gap at a rent of £280,000 pa, reflecting £176 Zone A, was purchased by Legal & General in June 2015 as part of the Mayfly portfolio at an apportioned price, reflecting a net initial yield of 4.85%.
BROAD STREET MALL, READINGShopping Centre investment purchased by Moorgarth in May 2015 for £62,250,000, reflecting a net initial yield of 6.85%. Anchor tenants include New Look, Argos and TK Maxx.
116/119 BROAD STREET (BHS)Freehold store sold in December 2014 for £23,000,000, reflecting a net initial yield of 5.25%. The tenant subsequently assigned the lease to Primark.
INVESTMENT COMPARABLESThe most salient comparable investment evidence can bet set out as follows:
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90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
COMPARABLES
IMPORTANT NOTICE: Jackson Criss, their clients and any joint agents give notice that: 1.They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement
that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not
be assumed that the property has all necessary planning, building regulation or other consents and Jackson Criss have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. August 2016
Designed & produced by Cre8te - 020 3468 5760 - www.cre8te.london
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CONTACTFor further information, please contact:
PHILIP HAY 020 7637 [email protected]
BROOK WANNOP 020 7637 [email protected]
VATWe understand that the property is elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged that the sale will be dealt with as a Transfer Of a Going Concern (TOGC).
EPCCopies of the EPC ratings and reports are available from this office.
PROPOSALWe are instructed to seek offers for our clients’ freehold interest in excess of £21,000,000 (Twenty One Million Pounds) subject to contract and exclusive of VAT.
A purchase at this level would reflect the following yield profile after allowing for purchaser’s costs of 6.75%.
Net initial yield 6.18%
Reversionary yield 5.64%
Equivalent yield 5.82%
True equivalent yield 6.04%
90-93 // 95-96 BROAD STREET // 1-5 CHAIN STREET
FURTHER INFORMATION