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9/11 high street winchester
prime retail investmentr
9/11 high street winchester
key investment criteria• LettoNextGroupPlcforafurther6years.
• Asubstantialbuildingcomprising(15,974sqft)inthe
affluentCathedralCityofWinchester.
• OccupyingaprimeretailpitchadjoiningDebenhams
andincloseproximitytoMarksandSpencer,
Sainsburys,PrimarkandTheBrooksShoppingCentre
• ModestZoneArentallevelof£110persqft.
• Reversionary-nextrentreviewdueon15thJanuary2012.
• Freehold.
• £5,670,000(FiveMillion,SixHundredandSeventy
ThousandPounds),reflectinganattractivenetinitial
yieldof5.5%risingtoanestimated5.95%inJanuary
2012andanequivalentyieldof5.93%allowingfor
purchasercostsof5.8%.
winchesterThe Cathedral City of Winchester is a significant retail and
commercial location as well as being a popular tourist
destination. The City is situated approximately 100km (62 miles)
south west of London, 30.6km (19 miles) south west of
Basingstoke and 22.5km (14 miles) north of Southampton.
Winchester enjoys excellent road communications. Junctions 9
to 11 of the M3 serve the City linking it to the south coast,
London and the M25 motorway. The A34 dual carriageway
provides access to Oxford, the Midlands and the North and the
A303 dual carriageway links with areas to the west. There are
frequent rail services from Winchester to London (Waterloo),
Southampton and Poole. Southampton International Airport is
situated approximately 13km (8 miles) to the south at Eastleigh.
demographics&localeconomyWinchester serves a particularly extensive and affluent catchment
with a high proportion of class AB residents. The local authority
population is 115,700 persons (HCC 2009 estimate) which is
forecast to increase by 6.1% between 2009 and 2016.
Winchester’s estimated shopping population is circa 59,000 persons
however this figure does not account for the large influx of tourists,
which contributes greatly to the health of the local economy.
retailing in winchesterWinchester’s retail provision amounts to circa 0.57 million sq ft
of floor space with prime retailing focused on the pedestrianised
High Street where Debenhams,Marks&Spencer,Boots,Next,HMV,RiverIsland,Monsoon,Superdrug,LauraAshley,HobbsandJigsaw are represented.
The Brooks Shopping Centre is situated to the north of the High
Street, close to the subject property. This is the only covered,
managed shopping centre in Winchester and is anchored by a Beales
department store, Primark and New Look. It also benefits from a 344
space multi-storey car park.
winchester
9/11 high street winchester
In December 2010 Henderson Global Investors acquired the Silver Hill
Development Site to the north of the property. A joint venture with the
Local Authority, the original consented scheme comprised 270 flats, 35
shops, a new bus station and a doctor’s surgery. This may be varied.
situationThe property is prominently located at the eastern end of the High
Street in the prime, pedestrianised retailing pitch adjoining
Debenhamsand PizzaHut and close to M&S.
description&accommodationThe property comprises a substantial, well-configured retail unit
arranged over ground, first and second floors. The ground and a
major portion of the first floor provides an extensive quality sales
area; the latter accessed by both a customer lift and staircase at
the front of the store. The remaining part of the first floor and
entire second floor provides storage, staff, office and ancillary
accommodation. The property also benefits from an excellent
rear loading area incorporating a goods lift accessed from
Market Lane.
Floor Description Area(SqM) Area(SqFt)
Ground Sales 545.77 5877
ITZA 2433 units
Storage 39.22 422
First Sales 278.58 3000
Storage/Staff 367.45 3957
Second Storage/Staff 252.39 2718
tenureFreehold.tenancyNextGroupPLC - 10 year, FRI lease from 15th January 2007 at a
rent of £330,000 pax. The next rent review is 15th January 2012.
Next Group PLC has a Dun and Bradstreet rating of 5A1, with a
deemed risk of business failure described as “minimum”. For the
year ending 30 January 2010 they reported a turnover of £3,406.5m,
pre-tax profits of £505.3m and net assets of £133.4m. In their 5
January 2011 trading statement they estimate that pre-tax profits for
year ending 30 January 2011 (results to be announced 24 March
2011) will be between £540-£555m. Sales were up 0.2% between
1 August and 24 December 2010.
currentincome£330,000 per annum exclusive.
9/11 high street winchester
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1 - 2
MERCURE
(300) (ESTIMATED)
Winchester
45 metres
Green and Partners20/12/2010
rentalvalueWinchester continues to generate strong retailer demand with a
limited supply of well configured available units. Lettings to
Whittards (115 High Street), reflecting circa £179 per sq ft Zone
A (Nov. 2009) and Jeremy France Jewellers (108 High Street)
reflecting circa £170 per sq ft Zone A (Oct. 2010) represents
recent activity.
The current rent devalues to circa £110 per sq ft Zone A
assuming A/10 on first floor sales. We are of the opinion that the
subject property has a current rental value of £357,000pax
reflecting £120 per sq ft Zone A.
vatThe property has been elected for VAT and thus VAT will be
payable on the purchase price.
investmentconsiderations• AffluentanddesirableSouthEastCathedralCity
• Strongcovenantandestablishedretailer.
• Asubstantialunitcomprising15,974sqft:ararityin
Winchester.
• AlowpassingZoneAincomparisontorecentprime
HighStreetlettings.
• TheimmediatepitchwillimprovewithHenderson’s
SilverHillproject.
• Potentialtore-gearthelease.
proposal£5,670,000(FiveMillion,SixHundredandSeventyThousandPounds), subject to contract and exclusive of
VAT, reflecting an attractive net initial yield of 5.5% rising to
an estimated 5.95% in January 2012, and an equivalent yield
of 5.93% allowing for usual purchaser costs of 5.8%.
furtherdetails
DavidFreeman
020-7659-4830
JamesBaillie
020-7659-4839
PeterPain020-7659-4831
This Goad Plan is for identification only and not to be scaled as working drawing. No part of this plan may be entered into an electronic retrieval system without prior consent of the publisher. © Crown copyright 2010. Licence number PU100017316. For full terms and of copyright conditions visit www.goadplans.co.uk/copyright
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. January 2011.
Adrian Gates Photography & Design 07710 316991
