94-98 BROADMEAD AND 44-58 UNION STREET€¦ · 94-98 BROADMEAD AND 44-58 UNION ... This property is...
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• Prime retail pitch in Bristol city centre, close to Marks & Spencer, H&M and Primark • 87% of the income secured to Tesco Stores Ltd • Includes parade of 3 retail units on Union Street, including Yorkshire Building Society • Asset management opportunities including a potential regear to Tesco Stores Ltd • Held by way of two long leasehold interests • Total net income £645,174 per annum • Seeking offers in the region of £6,100,000, reflecting a net initial yield of 10% assuming purchaser’s costs at 5.8% Investment Summary 94-98 BROADMEAD AND 44-58 UNION STREET Bristol, BS1 3DW
Transcript of 94-98 BROADMEAD AND 44-58 UNION STREET€¦ · 94-98 BROADMEAD AND 44-58 UNION ... This property is...
• Prime retail pitch in Bristol city centre, close to Marks & Spencer, H&M and Primark
• 87% of the income secured to Tesco Stores Ltd
• Includes parade of 3 retail units on Union Street, including Yorkshire Building Society
• Asset management opportunities including a potential regear to Tesco Stores Ltd
• Held by way of two long leasehold interests
• Total net income £645,174 per annum
• Seeking offers in the region of £6,100,000, reflecting a net initial yield of 10% assuming purchaser’s costs at 5.8%
Investment Summary
94-98 BROADMEAD AND 44-58 UNION STREETBristol, BS1 3DW
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Location
Bristol is the largest city in the south west of England located approximately 192 km (120 miles) west of the City of London, 141 km (88 miles) south of Birmingham, 70 km (44 miles) east of Cardiff and 19 km (12 miles) north west of Bath. It is England’s sixth most populous city, and the most populous city in Southern England outside London.
Bristol is consistently voted as one of the best places to live and work in the UK. The city has an estimated primary retail catchment of 941,000 people and an estimated shopping population of 492,000, ranking Bristol the 10th largest city in the UK on this measure. Bristol draws shoppers and spending beyond its primary catchment area and is also an important tourist destination attracting visitors throughout the year.
Bristol has a long association with the ‘green’ movement and has the status of ‘European Green Capital’ for 2015.
Communications
The city benefits from exceptional communications with the intersection to the M4 and M5 motorways located to the north. Two mainline railway stations service the City. Bristol Temple Meads station is located in the City Centre and provides a fastest journey time of 1 hour 38 minutes to London Paddington.Bristol Parkway station is located approximately 5 miles to the north and provides a fastest journey time to London Paddington of 1hour 20 minutes. Bristol airport is located approximately 5 miles south west of the city centre.
94-98 BROADMEAD44-58 UNION STREET
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Bristol’s central shopping area comprises an estimated 2 million sq ft of retail floor space, which ranks the city 16th in the UK on this measure.Bristol’s central shopping area was transformed by the completion of Cabot Circus in 2008. This development provides in excess of one million sq ft of modern retail and leisure accommodation. It has attracted many new retailers to the city including, Harvey Nichols and a large variety of national aspirational retailers such as Zara, The White Company, Reiss, French Connection, Apple, Hugo Boss, Crew, Joules and Urban Outfitters.
Broadmead is to the west of Cabot Circus and also forms part of Bristol’s central shopping area with major occupiers including Primark, Bhs, Debenhams, Marks and Spencer and H&M. The Galleries Shopping Centre in West Broadmead comprises a 330,000 sq ft 3 level shopping centre. Occupiers include national retailers Boots, WH Smith, Gap, 99p Stores, Waterstones, TK Maxx along with a food hall where tenants include Greggs, Subway and Burger King.
Retailing in Bristol Situation
Situated at the western end of Broadmead in a prime retail location at the junction with Union Street. The Tesco store occupies a prominent corner position fronting both Broadmead and Union Street. The property is opposite the main entrance to The Galleries Shopping Centre. Other retailers in the vicinity include Pret A Manger, 3 Store, GAP, Carphone Warehouse, Boots and Accessorize. The property benefits from significant footfall from the large number of office buildings located to the west of Broadmead as well as the residential dwellings nearby. The amount of residential accommodation in the area is set to increase further with a number of notable development and conversion projects currently underway. Combined these schemes will add 1,000 new apartments in the vicinity in the next few years.
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Description
Comprising a Tesco Metro Store which is made up of three shop units front-ing Broadmead and one unit fronting Union Street, which have been amal-gamated to form one store. The property includes a further four retail units fronting Union Street, Yorkshire Building Society occupy a double unit.
The property is constructed over ground and two upper floors on Broadmead with retail on the ground floor and ancillary storage above. On Union Street the property is ground floor only. The property has the benefit of rear access and loading from Whippington Court.
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Shelters
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Tenure
Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.
Held by way of two long leasehold interests:
96-98 Broadmead is held long leasehold from Bristol City Council for a term of 125 years from the 24th June 1986. There are 96 years unexpired. The lease provides five yearly rent reviews to 2.5% of the open market value of the property. The current rent payable is £3,565 per annum.
44-58 Union Street and 94 Broadmead are held long leasehold from Broadmead Chapel Trust for a term of years expiring on the 24th March 2131, 116 years unexpired. Subject to rent reviews in 2033, 2066, 2092 and 2125 to 8.33% of the occupation rents receivable. The current rent payable is £33,361.
In total the combined ground rent payable is £36,926 per annum.
Leasehold interest from Bristol City CouncilLeasehold interest from Broadmead Chapel Trust
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Tenancy Schedule
Address Tenant Size (sq ft) Lease Term Break Option Rent (pa) Comment
94 Broadmead Tesco Stores Ltd GF Sales 835ITZA 565
01/01/1992 - 31/12/2016
£95,000.00 Lease contains reinstatement provisions
96/98 Broadmead Tesco Stores Ltd GF Sales 2,007ITZA 1,4861st Floor 1,8582nd Floor 1,907
01/01/1992 - 31/12/2016
£258,100.00 Lease contains reinstatement provisions
44/54 Union Street Tesco Stores Ltd GF Sales 4,707ITZA 2,6661st Floor 80
01/01/1992 - 31/12/2016
£243,000.00 Lease contains reinstatement provisions
54 Union Street EE Catering Services GF Sales 559ITZA 437Ancillary 138
02/12/2009 - 01/12/2019
£20,000.00
56-58 Union Street Yorkshire Building Society
GF Sales 1,211ITZA 911
19/08/2013 - 18/08/2023
19/08/16 £36,500.00
58a Union Street Evapour Limited GF Sales 867ITZA 501
19/11/2014 - 18/11/2019
£29,500.00
Total £682,100.00
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Tenants Covenants
93% of the income is secured to the excellent covenants of Tesco Stores Ltd and the Yorkshire Building Society. Below we set out the key financial indicators for tenant company:
Tesco Stores Ltd (Company number 519500) Tesco operations in the UK are the largest within the group, with in excess of 3,300 stores and 310,000 employees. Originally a UK-focused grocery retailer, since the early 1990’s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothes, electronics, furniture, toys, petrol, telecoms and internet services. It is a FTSE 100 company and is a constituent of the FTSE 100 Index.
Yorkshire Building Society (Financial Services number 106085) Yorkshire Building Society is the UK’s second largest building society with over 3.5 million members, over 4000 employees and assets of over £30 billion.
Year End Turnover(000’s)
Pretax Profit(000’s)
Net Worth(000’s)
Tesco Stores Ltd
22/02/2014 £42,547,000 £1,696,000 £3,038,000
Year End Turnover(000’s)
Pretax Profit(000’s)
Net Worth(000’s)
Yorkshire Building Society
31/12/2013 £531,600 £199,300 £34,434,400
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Rental Activity in Broadmead
Retail Investment Market
Date Address Purchase Price Yield Tenants Lease terms
Jan-15 86-88 Broadmead £2.175 million 6.20% Sainsbury’s Supermarkets Ltd
10 years unbroken
Aug-14 93-95 Broadmead £1.6 million 6.25% Pret A Manger and a local hair salon
10 years to Pret a Manger
Oct-14 24-32 Bond Street & 59-65 Horsefair
£2.5 million 9.50% Multi-let AWULT 3.23 years to tenant breaks
The rental tone for retail units at the western end of Broadmead is currently in the region of £100 - £110 psf ZA. There have been a number of letting transactions that have occurred in the vicinity:
Address Date Achieved Rent per sq ft ITZA
58a Union Street Nov-14 £60.00
86-88 Broadmead Apr-14 £91.50
93-95 Broadmead Oct-13 £108.00
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EPC
VATGoad
EPC rating available upon request.
This property is elected for VAT and it is anticipated that the transaction will be structured as a transfer of going concern.
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Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved.
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Proposal
Further Information
£6,100,000 reflecting a net initial yield of 10% after deducting usual purchaser’s costs of 5.8%
For further information or to arrange an inspection, please contact:
Mark Shipman0207 529 [email protected]
Gemma-Jane Ogden0117 946 [email protected]
Ian Lambert0117 9464 [email protected]
David Harrison0207 529 5705 [email protected]
Richard Carter0207 529 5707 [email protected]
Misrepresentations Act 1967 & Declaration:
Michael Elliott and Hartnell Taylor Cook for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) 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 purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott and Hartnell Taylor Cook has any authority to make or give any representations or warranty whatever in relation to this property.
February 2015 (3106)
PROPERTY INVESTMENT ADVISORS
