High Street Retail Investment
221 – 233 HIGH STREET BERKHAMSTEDHP4 1AD
221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD
221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD
Investment Considerations ■ Located in the attractive commuter town of Berkhamsted. ■ Excellent rail connections to London Euston with services every 15 minutes. ■ AWULT of 7.32 years to expiry and 6.07 years to breaks. ■ Large car park to the rear which could present future redevelopment opportunities. ■ No retail vacancy within Berkhamsted. ■ Total Passing Rent of £269,516 pa. ■ Significant recent rental uplifts, with a further review in March 2015. ■ Excellent further rental growth prospects, evidenced by recent transactions
in the immediate vicinity. ■ We are instructed to seek offers in excess of £4,100,000 (Four Million, One Hundred
Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.21% and a reversionary yield of 6.52% in March 2015.
Berkhamsted
BerkhamstedCastle
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Ellesmere Road
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Charles Street
Shootersway
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Coram Close
Holly Drive
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Station RoadLo
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A4251 Gossoms End
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A4251 Londons Road
A416 Kings Road
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LONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONLONDONHeathrow
LondonCity
Gatwick
StanstedLuton
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Harlow
Bishop’sStortford
EppingPotters Bar
Knebworth
Hertford
LUTON
Aylesbury
Dunstable Stevenage
Hatfield
Dartford
Bromley
Gravesend
Gillingham
Shoreham
Rochester
Sittingbourne
Croydon
Biggin Hill
Romford
Sevenoaks
Tonbridge
RoyalTunbridge
Wells
Maidstone
Snodland
Sheerness
StaplehurstPaddock
Wood
East GrinsteadCrawley Three Bridges
Horley
Horsham
Witley
Godalming
Cranleigh
NorthHorsham
HaywardsHeath
Burgess Hill
Redhill
Oxted
DorkingGUILDFORD Reigate
Staines
Slough
HemelHempstead
Chesham
St Albans
HighWycombe
Thame
Watford
WembleyUxbridge
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BrentCross
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Egham
Ascot
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Henley-on-ThamesMaidenhead
EpsomSutton
Swanley
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RichmondHounslow
KingstonUpon Thames
BillericayWickford
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Chelmsford
ChippingOngar
Basildon
Welwyn GardenCity
Walton-on-Thames
Clapham
Harpenden
Location
Berkhamsted is a historic market town located in the Chiltern Hills to the west of the county of Hertfordshire. The town boasts an excellent mix of leisure and retail occupiers as well as being a popular residential area benefiting from its short commute to London. The town is situated approximately 40 km (25 miles) north west of London and 19 km (12 miles) north west of Watford.
The area benefits from excellent communications with Berkhamsted being located on the London Midland train line which provides regular services into London and connections to the London Underground network.
Road communications are good with Berkhamsted being located 12 km (7 miles) west of the M1 Motorway (J8) providing access to London, the North and the national motorway network. The town is also located 12 km (7 miles) north west of the M25 (J20).
London Luton Airport (currently ranked as the fifth busiest in the UK) is situated approximately 27 km (16 miles) to the north east providing flights to over 100 destinations with over 9.7 million passengers using the airport in 2013. London Heathrow, Gatwick and Stansted airports can all be accessed via the M25.
1 Waitrose Supermarket
4 M&S Simply Food
2 Berkhamsted School
5 Town Hall
3 Library
6 Tesco Metro
7 Police Station
Subject Property
221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD
Berkamsted Travel TimesCrossrailIn 2014, the Transport Secretary announced potential plans for a new branch of Crossrail to be added to the network that would connect Berkhamsted directly with central London and Canary Wharf.
BY TRAIN
Milton Keynes Central 25 mins
London Euston 31 mins
London St Pancras International 51 mins
London Gatwick Airport 89 mins
London Heathrow Airport 91 mins
BY CAR
St Albans 24 mins
Luton 34 mins
Milton Keynes 46 mins
London 60 mins
Oxford 72 mins
AIRPORT DRIVE TIMES
London Luton 27 mins
London Heathrow 28 mins
London Stansted 51 mins
London Gatwick 64 mins
Birmingham 99 mins
DemographicsBerkhamsted is an affluent and attractive market town benefiting from its location within a commutable distance of London. The population within 5 miles of the town is approximately 128,000. 34.3% of residents (aged between 16-74) are employed in higher managerial, administrative and professional occupations compared to the national average of 20.6%. The spending power within the local area is evidenced by the 35% of households within a 5 mile radius of the town that boast an annual income of £50,000 or higher.
Retailing in BerkhamstedBerkhamsted is a popular commuter town offering an attractive high street with a mix of retailers from local covenants to multi-nationals. There are a high number of multiple national occupiers within close proximity to the subject property including Barclays, HSBC, Boots, Carluccio’s, Bill’s, WH Smith, Waitrose, Costa Coffee, Fat Face and Tesco.
Marks & Spencer have recently taken a lease on a unit to the west of the property on the high street.
The current rental levels within the parade offer excellent prospects for rental growth with recent lettings transactions in the immediate vicinity including:
195 High Street, new letting to Mint Velvet at a rent reflecting £86 ZA.
248 High Street (directly opposite), new letting to Jojo Mamman Bebe in June 2013 at a rent reflecting £84.44 ZA.
221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD
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© Crown Copyright, ES 100004106. For identification purposes only.
221 – 233 HIGH STREET, BERKHAMSTED HP4 1ADO
WPE
R RO
AD
El Sub Sta
1d
1a
219
Nightingale Lodge
1 to 20
250
1
2 25
Almshouses248233
223
235
246
The Old
House
Chapel
Callard House
244
242
0m 5m 10m 15m
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:561© Crown Copyright, ES 100004106. For identification purposes only. right of way
SituationThe property is situated on the southern side of the High Street at its junction with Cowper Road. Located in a strong retailing pitch on the edge of the town’s prime retail supply.
DescriptionThe property consists of a purpose built building known as Callard House arranged over ground, first, second and third floors. There is an additional two storey unit that forms part of the subject property which acts as an infill between Callard House and the adjacent property to the east.
The ground floor of Callard House comprises six retail units. Units 227 – 229 have been combined to form one unit. The upper floors comprise flats sold off on long leases. Access to these flats is from a separate entrance located at the western end of the property.
There is a large car park to the rear of the property accessed from Cowper Road comprising 58 spaces.
Service ChargeCallard House Management Limited manages the building and the company will be transferred to the purchaser upon completion. There is approximately £105,000 currently held within a reserve account for long term expenditure, with approximately £15,100 in a current account for day to day expenditure. There is also a contribution from the Retail tenants.
Tenancy Schedule
Address Tenant Floor Area (sq m)
Area (sq ft)
Lease Start Lease Expiry
Break Next Review
Rent Rent psf (ITZA)
Comments
Shop 221 B’Smart Dry Cleaners Ltd
GF Retail 70.5 758 25/12/2014 24/12/2024 25/12/2019 25/12/2019 £40,000 £64.01 Lease in Solicitors hands. Will be finalised by completion of saleUpwards only rent review Director Guarantee3 car parking spaces demised
(ITZA) 53.7 578
GF Storage 10.1 109
Total 80.6 867
Shop 223 Lisa Kay Ltd GF Retail 55.2 594 20/09/2009 19/09/2019 £31,375 £64.28 2 car parking spaces demisedTenant looking to assign. Interest from a tenant willing to pay a premium. Further information available upon request
(ITZA) 42.5 457
GF Storage 5.2 57
Total 60.4 651
Shop 225 Traveltime World Ltd GF Retail 56.0 603 25/03/2010 24/03/2020 25/03/2015 £19,000 £36.88 Projected rent review at 25/03/2015 projected at £32,329 pa2 car parking spaces demised
(ITZA) 42.9 461
GF Storage 5.2 56
Total 61.2 659
Shop 227
Shop 229
Coral Estates Ltd GF Retail 105.9 661 21/07/2004 20/07/2019 £68,500 £65.90 Rental level determined at last rent review was 110% of the market rent as outlined in the lease5 car parking spaces demised
(ITZA) 81.4 876
GF Storage 12.4 134
Total 118.3 1,274
Shop 231 Gorgeous (B'sted) Ltd GF Retail 57.0 613 10/12/2014 24/12/2024 10/12/2020 10/12/2019 £32,160 £64.86 Upwards only rent review2 car parking spaces demised(ITZA) 43.2 465
GF Storage 5.2 56
Total 62.2 669
Shop 233 Christopher John Hamilton (t/a Hamiltons)
GF Retail 47.1 507 24/09/2014 23/09/2024 24/09/2019 £33,500 £75.90 Director Guarantee and rent deposit of £13,5902 car parking spaces demised
(ITZA) 38.6 415
GF Storage 10.1 108
Total 57.2 615
Roofspace Orange Telecommunications Group Ltd
PCN equp 27/02/2002 04/05/2022 27/02/2017 £15,786 Orange have vacated the site RR Indexed
Roofspace Arqiva Ltd PCN equp 19/04/2004 18/04/2024 6 month rolling
18/04/2014 £13,803 Assigned from EE Ltd Tenants right to break on 6 month rolling break. RR Indexed
Callard House
Callard House residential 01/07/2006 30/06/2131 £3,692
Car Parking Spaces
Various (11) £11,700
Total 439.9 4,735 £269,516
CovenantCoral is part of the Gala Coral Group with over 1,700 betting shops across the UK. Coral Estates Ltd in September 2013 reported a turnover of £27,297,000.
Orange Telecommunications Group Ltd is owned by EE Ltd with over 570 stores across the UK. It recorded in December 2013 a total net worth of £9,871,538.
Arqiva is a leading communications infrastructure and media services company. It employs over 2,000 people across the UK. Arqiva Ltd recorded in June 2014 a turnover of £559,000,000, a pre-tax profit of £204,000,000 and a total net worth of £829,400,000.
TenureFreehold.
EPCs
Unit Assessment Rating
221 82 D
223 77 D
225 65 C
227-229 61 C
231 77 D
233 80 D
VATThe property will be subject to VAT although we anticipate the sale will be treated as a Transfer of Going Concern.
221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD
Proposal Offers sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 6.21% and a reversionary yield of 6.52% in March 2015.
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 02.15
Andy Pointon020 7543 [email protected]
For further information or to make arrangements for viewing please contact:
Jonathan Butcher020 7543 [email protected]
Scott Tyler020 7543 [email protected] www.allsop.co.uk
Asset Management & Further Development ■ Development of the car park (STP)
■ Adding further storeys of residential (STP)
■ Improve tenant mix to help continue strong rental growth
■ Settle imminent rent review on unit 225
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