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well secured, freehold, mixed use investment opportunity
7/11 BRIDGE STREET, GUILDFORD
7/11 bridge street, GUILDFORD GU1 4RY
LocationGuildford is an affluent and popular commercial and administrative
centre within Surrey located circa 50km (31 miles) south-west of
central London, 8 miles (12.8 km) south of Woking and 37 miles
(60 km) north-east of Winchester.
Road communications are excellent. The town is situated adjacent
to the A3 (Dual Carriageway) which provides direct access to the
M25 (J10) some 13km (8 miles) to the north-east and the M27
circa 64 km (40 miles) to the south-west near Portsmouth. The
A31 also passes through the town which links with J4 of the M3
(via A331) at Frimley 23km (14 miles) to the north-west and to
Winchester 62km (38 miles) to the south-west.
Guildford is served by regular rail services to London (Waterloo &
Victoria) with a fastest journey time of approximately 35 minutes.
Heathrow Airport is circa 43km (22 miles) to the north and
Gatwick Airport is circa 54km (33 miles) to the south-east.
Demographics Guildford has a borough population of circa 135,700 persons with
a primary catchment of approximately 472,000 people (727,000
Investment Considerations
• A prominent and busy location on Bridge Street, the
primary link between Guildford Train Station and the
Town Centre.
• Guildford is the busiest train station in Surrey.
• Well secured to the strong covenants of Tesco Stores
Limited (Tesco Express) and ACM Commercial
Limited (ACM).
• Future rental growth prospects.
• (Average Weighted Unexpired Lease Term)
AWULT of 9.8 years
• Total rent of £113,594 pax
• Freehold
• Offers in excess of £1,900,000 (Subject to Contract &
exclusive of VAT), which reflects a Net Initial Yield of
5.65% assuming purchasers costs of 5.8%.
• A purchase at this level reflects an equivalent yield
of 6% assuming 3% RPI uplifts per annum on the
Tesco income.
within a 12 mile radius). The town is particularly affluent, ranked
5th in the UK on the PMA Affluence Indicator, and has a significant
over representation of the AB and C1 social groupings. Guildford
is also a popular commuter town and is synonymous with its’
internationally renowned education offer. Statistics from the
Office of Rail Regulations revealed that over 8 million people used
the station in 2012/13 making it the busiest train station in Surrey.
Economically Guildford is a thriving commercial town and
accommodates global operations including Phillips Electronics,
Ericsson, Colgate-Palmolive, Allianz and Sanofi.
Retailing in GuildfordGuildford is a dominant and popular retail destination. A recent
Experian Survey concluded that the town is the ‘fashion capital of the
UK’ (excluding Central London), based on data relating to levels of
consumer spending, household income, demographics and the
penetration of online retail. Guildford attracts an impressive annual
retail spend of circa £900m with 6,878 households on incomes of
between £100,000 and £150,000. The town has an estimated
shopping population of 244,000 persons. Footfall along the High
Street has increased year on year with the target customer profile
being between the ages of 25-50 and predominantly A, B, C1 female.
Guildford
7/11 bridge street, GUILDFORD GU1 4RY
The prime retail offer is focused on the busy and popular
pedestrianised High Street where there is a high concentration of
major UK multiples including M&S, House of Fraser, Debenhams, Next, Boots, WH Smith, Gap, H&M and Superdrug as well as a
strong representation of quality fashion retailers including Karen Millen, Gant, Links, Hugo Boss, Reiss, Superdry, Ted Baker, LK Bennett, Whistles and Jo Malone.
The recent refurbishment of Friary Street, which adjoins White Lion
Walk has further improved Guilford’s retail offer; Wagamama, Apple, TK Maxx, Cotswold Outdoors and Jamie Oliver’s Italian Kitchen are all represented.
North Street Development Guildford Borough Council in conjunction with M&G Real Estate
and their chosen developer partner Land Securities are proposing
to develop a site adjoining the Friary Centre on North Street, known
as The North Street Development. While development plans are
yet to be finalised, we understand that it will comprise circa
400,000 sq. ft. of retail, leisure and residential space to include an
anchor department store, mooted to be John Lewis Partnership. In
addition, many retailers have been targeted for the scheme and are
rumoured to be the likes of Next, H&M and Arcadia. The scheme
would enhance the town’s already extensive existing retail offer and
have a positive impact upon the subject property.
Station DevelopmentSolum Regeneration (A subsidiary of The Kier Group) have entered
into a joint venture with Network Rail to deliver a mixed use
development of Guildford town centre station. They are due to
submit planning shortly on a predominantly residential scheme
with 20,000 - 25,000 sq.ft of retail accommodation below. We
anticipate that M&S will relocate back into the development and
space for other A1/A3 occupiers will be available.
SituationThe property occupies a prime trading position on Bridge Street,
one of the main thoroughfares to The Friary Centre, North Street,
White Lion Walk and the High Street. There are a number of office
buildings and public houses located nearby which complement the
holding. A pay and display car-park is located to the rear of the
property on Bedford Road providing circa 70 spaces.Accommodation & Tenancies
Unit Description Tenant Name
Area Analysis (sq ft)
Start Date Expiry Date
Next O/S Review CommentsBsmt GF FF SF Rent
7-11 Bridge Street Tesco Stores Ltd 1,208 2,884 - - £69,594 pax(£17.10 psf)
18/01/10 17/01/25 18/01/20 The rent review is linked to RPI subject to a cap and collar of 1 and 4%. 61.4% of the income.
7-11 Bridge Street ACM Commercial Ltd
1,417 - 2,948 532 £44,000 pax (£8.98 psf)
05/05/10 04/05/25 05/05/15 Outstanding rent review. 38.6% of the income.
2,625 2,884 2,948 532 £113,594pax
7/11 bridge street, GUILDFORD GU1 4RY
Car Park to the rearThe PropertyThe property lies within Guildford’s Conservation Area albeit it is not listed. The property is let to Tesco Stores Limited trading as Tesco Express and ACM Commercial Limited trading as Academy of
Contemporary Music.
Tesco Stores Limited comprises ground and part basement floors only. ACM Commercial Limited is
arranged over part basement, first and second floors.
The property provides an approximate total net floor area of 835.19 sq.m (8,990 sq.ft).
TenureFreehold.
Tenant Covenant StatusTesco Stores Limited has one of the strongest covenants in the UK.
They have a D&B rating of 5A1 and for the year ending 22/02/2014
the company reported a turnover of £42,547,000,000, a pre-tax profit
of £1,696,000,000 and a tangible net worth of £3,038,000,000. We
understand that this unit trades particularly well.
ACM Commercial Ltd (Academy of Contemporary Music) has a D&B rating of 2A1 and was established in 1995 and has since taught over
20,000 graduates including Newton Faulkner and Amelle Berrabah
(Sugarbabes). For the year ending 30/06/2014 the company reported a
tangible net worth of £5,472,583 and net current assets of £3,911,982. In addition to the Bridge
Street site, the academy has also opened in South Africa and USA.
Current Income pax£113,594 per annum exclusive.
Rental ValueWe devalue Tesco’s rent to reflect £17.10 psf and we believe there is strong potential
for further rental growth. We believe the
upper floors are reversionary from their
current level of £8.98 psf.
7/11 bridge street, GUILDFORD GU1 4RY
to G
uildford Train Station
7/11 bridge street, GUILDFORD GU1 4RY
Further InformationFor further information or to arrange an inspection, please contact:
Ed Smith020-7659-4831
Patrick Over020-7659-4832
David Freeman020-7659-4830
James Baillie020-7659-4839
MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. June 2015. Adrian Gates Photography & Design 07710 316991
Service ChargeThere is no formal service charge, but the Landlord can claim back fair and reasonable costs from the
tenant, on an ad hoc basis.
EPCEPCs are available upon request.
VATThe property has been elected for VAT and any disposal will be by way of a Transfer of a Going
Concern (TOGC).
Proposal We have been instructed to seek offers of £1,900,000 (One Million and Nine Hundred Thousand Pounds), Subject to Contract & exclusive of VAT, which reflects a net initial yield of 5.65%, allowing
for purchaser’s costs of 5.8%. A purchase at this level reflects an equivalent yield of 6% (assuming
3% RPI uplifts per annum on Tesco’s income).
