INVESTMENT SUMMARY LOCATION DEMOGRAPHICS … · INVESTMENT SUMMARY Nottingham is the commercial capital of the East Midlands and one of the UK’s ... size (PROMIS). The property

48/58 BRIDLESMITH GATE, NOTTINGHAM NG1 2GPPRIME RETAIL BLOCK FOR SALE

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN NOTTINGHAM GOAD AERIAL SITUATION DESCRIPTION TENANCIES TENURE ACCOMMODATION COVENANT SERVICE CHARGE EPC VAT PROPOSAL FURTHER INFORMATION

INVESTMENT SUMMARY

NottinghamisthecommercialcapitaloftheEastMidlandsandoneoftheUK’sbusiestretailingdestinations.

Nottinghamhasaprimarycatchmentpopulationof987,000 people,rankingtheCity8thlargestintheUKoutsideofLondonbycatchmentsize(PROMIS).

ThepropertyoccupiesaprimetradinglocationonthepedestrianisedBridlesmithGate,closetoitsjunctionwithMiddlePavementwithintheheartoftheCityCentre’sprimeretailarea.

BridlesmithGateprovidesalargeconcentrationofhighendboutiqueretailersincludingHugoBoss,TedBaker,JoeMalone,CathKidston,LinksandReiss.

DirectlyoppositeoneoftheprincipleentrancestotheIntuBroadmarshShoppingCentrewithproposalsforamajorredevelopment,whichwillfurtheraddtothelocation.

Freehold

Thepropertyprovidesanunbrokenparadeof4primeretailunitswithupperfloors,includingahairsalonandvacantoffices.

TenantsincludeFredPerry,EsteeLauderandJackWills.

WAULTwith6.1yearstoexpiryand4.9yearstobreak.

Heldin3separatetitlessoabilitytosellindividualholdings.

AssetManagementopportunitiestoletthevoidaccommodationandunder-utilisedupperfloorsandconverttoresidentialuse.

Currentpassingrentof£538,250perannumincludingarentalguaranteeonthevacantretailunit.

Ourclientsareseekingofferinexcessof£8,000,000(EightMillionPounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelwouldreflectanetinitialyieldof6.25%,afterallowingforpurchaser’scostsof6.67%.


48/58 BRIDLESMITH GATE, NOTTINGHAM NG1 2GP PRIME RETAIL BLOCK FOR SALE 2

LOCATION

Nottinghamisahistoriccity,whichisregardedastheregionalcapitaloftheEastMidlands.Thecityislocated51milesnortheastofBirmingham,30milessoutheastofSheffieldand30milesnorthofLeicester.

Nottinghambenefitsfromexcellenttransportcommunications,withJ25&J26oftheM1motorwaybeinglessthan4mileswestofthecitycentre.

NottinghammainlinerailwaystationalsoprovidesregularanddirectaccesstoLondon,withafastestjourneytimeof1hour45minutes.Inaddition,NottinghamishometotheacclaimedNottinghamExpressTransitTram,whichcarriesover7.9mpassengerseveryyear.

EastMidlandsAirportissituated13miles(21kilometres)southwestfromthecitycentre,providingdirectflightstoEuropeandestinations.

LINCOLN

SHEFFIELD

DERBY

NEWARK-ON-TRENT

SUBJECT PROPERTY

LOUGHBOROUGH

LEICESTER

BIRMINGHAM

PETERBOROUGH

CORBY

SKEGNESS

STOKE-ON-TRENT

MACCLESFIELD

MANSFIELD

STAFFORD

WOLVERHAMPTON

STOCKPORT

TAMWORTH

HINCKLEY

STAMFORD

MUNDFORD

KING’S LYNN

BOSTON

GRANTHAM

GAINSBOROUGH

LOUTH

NOTTINGHAM

M1

M1

M1

M1

M6

M6

M6

East MidlandsAirport

A52

A38

A47

A1(M)

A1

A1

A15

A52

A46A60

A61

A515

A515

A515

A518

A523

A523

A16

A16

A46

A15

A15

A15

A43

A16

A16

A16

A158

A158

A17

A17

A1

A617

A614A617

A623

A6

A515

A6

A6

A52

A50

A50

A50

A52

A156

A57

A57

A60

A60

A60

A606

A606

A607

A607

A6

A15A47

A47A47

A10A141

A148

A17

A17

A134

A1175

A46

A6

A5

A5

A5

A51

A38

A38

A38

A34BROADMARSH

SHOPPING CENTRE

VICTORIACENTRE

MAID MARIAN WAY

CASTLE BLVD CANAL ST

HUNTINGDON ST LOWER PARLIAM

ENT ST

CRANBROOK ST BELLAR GATE

GLASSHOUSE ST

NOTTINGHAM

SUBJECT PROPERTY



DEMOGRAPHIC PROFILENottinghamisthedominantretaillocationwithintheEastMidlandsanditsconsumereconomyisthe5thlargestoutsideofLondonforannualspend.Thecityhasacatchmentpopulationofapproximately 1mpeople,increasingto2.3mwithina45minutedrivetime,rankingthecity8thoutofallPROMIScentres.Thecurrentshoppingpopulationisforecasttoincreaseby7.6%overa10yearperiodfrom2008.

Thereareapproximately62,000studentsattendingtheUniversityofNottinghamandNottinghamTrentUniversity.

MajoremployersinthecityincludeKPMG,Experian,ImperialTobacco,Siemens,RollsRoyceandBoots.

RETAILING IN NOTTINGHAMNottinghamisoneoftheleadingUKshoppingdestinationsanditscitycentreretailfloorspaceisestimatedat2.8msqft,rankingit9thonthebasisofitsPMAretailscoreand8thonthePMAfashionscore.TheCityhasastrongofferfromuppermiddlemarketfashionretailersincludingBoss,Jaeger,FrenchConnection,Reiss,WhistlesandTedBaker.

TheprimeretailingwithinNottinghamisconcentratedalongapedestrianisednorth-southcorridor,whicharosewiththedevelopmentofboththeBroadmarshShoppingCentretothesouthandtheVictoriaShoppingCentretothenorth.Keynorth-southshoppingstreetsthatconnectthetwoshoppingcentresareClumberStreet,BridlesmithGatetotheeastandListerGatetothewest.

Thecity’stwomainshoppingcentres,theBroadmarshand

VictoriaShoppingCentresareownedbyIntu.TheVictoriaCentreisIntu’sfashionbasedcentreandformsthe100%primepitchinthecity.ThecentreisanchoredbyJohnLewis,HouseofFraser,BootsandNext.The430,000 sqftBroadmarshShoppingCentreisduetoundergoa£150mrefurbishment/redevelopment,whichwillincludeanewboutiquecinema,alongwithtenA3unitsandaLeisureBox.NottinghamCityCouncilapprovedplanningpermissionforthenewschemeinJune2015.TheredevelopmentwillincludeanewopenstreettocomplimentMiddlePavement,extendingtoBridlesmithGate.

ThesubjectpropertyiswellpositionedtotakeadvantageoftheBroadmarshCentre’sredevelopment/refurbishmentoncecompleted.



PRET À MANGER

NForillustrativepurposesonly

BROADMARSH

SHOPPING CENTRE

UNDER DEVELOPMENT



N

HIGH

ST.

ST PETERS GATE

LOW PAVEMENT

BRIDLESMITH

GATE

SUBJECT PROPERTY

LISTE

R GA

TE

ALBERT ST.

BROADMARSH SHOPPING CENTRE

UNDER DEVELOPMENT

THE EXCHANGE



DESCRIPTIONThepropertycomprisesaparadeof4primeretailunitsoftraditionalbrickconstructionundertiledpitchedroofs.

WeunderstandthatthepropertiesareGradeIIlistedbuildingsdatingfromthe18thCentury,situatedwithintheOldMarketSquareConservationArea.

48/52comprisesamultiletbuildingincorporating2primeretailunits,togetherwithahairsalonandofficesonpartoftheupperfloors,approachedbyaself-containedentrancedirectlyoffBridlesmithGate.

FredPerryoccupy48/50,whichprovidesaprimeretailunitwithancillary,officeandstorageaccommodationatfirstfloorandbasementlevel.

EsteeLauderoccupy52,whichprovidesretailaccommodationonthegroundfloorandstorageatfirstfloor.ThecompanytookanassignmentoftheleaseinNovember2015andextendedthelease.

Partofthefirstfloorareaof48/52comprisesasuiteofrooms,currentlyutilisedasahairsalon.Thesecondandthirdfloorsprovidecellularofficesinbasiccondition,whicharecurrentlyvacant.Thepotentialexistsforconversiontohigheruses,subjecttoobtainingtheusualconsents.

54/56providesaregularshapedunit,whichiscurrentlyvacant.Theunitprovidessalesaccommodationongroundandfirstfloor,withancillaryareasandstorageonbasement,firstandsecondfloors.

58isaprominentcornerunitatthejunctionofBridlesmithGate/LowPavement,diagonallyoppositetheBroadmarshShoppingCentre.Thepropertyprovidessalesaccommodationongroundandfirstfloorsandancillarystorageatbasement,secondandthirdfloors.Thepropertywasrefurbishedin2010bythetenantJackWills,aspartoftheirfitout.AnunderlettinghasrecentlybeenenteredintowithFour(Holdings)Group,wheretheentireunithasjustundergonearefit.

Thepropertyshareacommonpassagewaytotherearoftheunits,providingareasforrefusebinsandasecondarymeansofescape.

SITUATIONThesubjectpropertyissituatedinaprimetradinglocationonthepedestrianisedBridlesmithGateclosetoitsjunctionwithMiddlePavementandoppositeanentrancetotheBroadmarshShoppingCentre.



TENURE Freehold.

ThereisacoveredgroundfloorpassagewayopeningontoBridlesmithGatebetweennumber54/56and48/52.Partoftheupperfloorsof48/52oversailthepassageway,andassuch,thispartofthepropertyisheldasa“flyingfreehold”.AlltheunitsincludedinthesalehavevariousrightsofwayovertherearcourtyardsandpassagewaysleadingtoBridlesmithGateandPepperStreet.Therearecovenantstocontributetotherepairandmaintenanceoftheseareas.Furtherdetailsareavailableuponrequest.

TENANCIES TheretailunitsareletoneffectiveFullRepairingandInsuringLeases,producingacurrentincomeof£538,250perannum,moreparticularlydescribedinthetenancyschedulebelow.Thisincomeincludesa12monthrentalandcostguaranteeattributabletothevacantunitat54/56BridlesmithGateataproposedrentof£96,000(£160ZoneA).Thenetrentafterdeductionoftheshortfallrelatingtothevacantofficesis£533,440perannumexclusive.

ThepropertyhasastrongincomeprofilewithanWAULTof6.1yearstoexpiryand4.9yearstobreak.



Address Tenant Accomodation (sq ft) Lease Start Date

Lease Expiry Date

Break Next Review

Passing Rent £p.a.

Passing Rent (£ZA/sq ft)

ERV £p.a. ERV (£ZA/sq ft)

Landlord Shortfall £pa

Comments

48/52 BridlesmithGateGround,Basment&FirstFloor

FredPerryLimited

GroundFloorSalesITZABasementAncillaryFirstFloorAncillary

Total

790 616 651 169

1,610

10/02/2005 09/02/2025 05/02/2020 £121,250 £190 £99,000 £165 £0 A-5%allowancehasbeenappliedforachangeinlevels.

48 - 52BridlesmithGateFirstFloor

SolosHairdressingLimited

PartFirstFloor 896 14/03/2015 24/03/2020 25/03/2018 £12,500 £13.95 £12,500 £15.35 £0

OutsideofL&TAct1954.TheBreakclausein 2018 canbeexercisedbyeitherthelandlordortenantwith6monthsnotice.Guarantor-KarenJaneRevill.

48-52 BridlesmithGateBasment,Second&ThirdFloors

VacantOffices

PartBasementSecondFloorThirdFloor

Total

8571,258765

2,880

£0 £0 £0 £0 £4,810

EmptyRatesarenotpayableasthebuildingislisted.TheLandordServiceChargecontributionisbudgetedat£4,810p.afor2016.

52BridlesmithGateGround&1stFloors

EsteeLauderCosmeticsLimitedt/aMAC

GroundFloorITZAPartFirstFloor

Total

899 523 417

1,316

28/10/2008 27/10/2025 28/10/2020 £127,500 £238 £88,000 £165 £0

TheleasehasrecentlybeenassignedtoEsteeLauderfollowingwhichtheyextendedthelease.

54-56BridlesmithGateBasement,Ground, 1st&2ndFloors

Vacant(RentalGurantee)

GroundFloorITZABasementFirstFloorSalesFirstFloorAncillarySecondFloor

Total

801 586 756 597 161 813

3,128

£97,000 £155 £97,000 £155 £0

FormerOfficeshoes.Vendortoprovide12monthrentalandcostgurantee.-7.5%allownacemadeforshape

58BridlesmithGateBasement,Ground,1st,2nd&3rdFloors

JackWillsLimited(SublettoFour(Holdings)GroupLimited

GroundFloorSalesITZABasementAncillaryFirstFloorSalesSecondFloorAncillaryThirdFloorAncillary

Total

1,243 1,032 787 991 1,094 901

4,229

27/02/2012 26/02/2022 27/02/2017 £180,000 £174 £145,000 £140 £0

Four(Holdings)GroupLimitedt/a18Montrosehaverecentlyenteredintoasubleasefortheentirepropertyexpiring26February2022.Detailscanbeprovidedonrequest.A-10%allowancehasbeenallowedforshape.

Totals £538,250 £441,500 £4,810

LessLandlordshortfalls £4,810

Total Net Rent £533,440

TENANCY SCHEDULE



ACCOMMODATIONThefloorareashavebeenmeasuredonaNIAbasis(netinternalarea)inaccordancewiththeRICScodeofmeasuringpractice(6thEdition)andaremoreparticularlydescribedinthetenancyschedule.ThemeasuredsurveyundertakenbyPureRealEstateServicesLimitedisavailableforassignment.

COVENANT INFORMATIONThepropertieshavethefollowingExperianrating/score:-

Unit Experian ScoreFredPerryLimited 100 - verylowriskEsteeLauderCosmeticsLimited 100 - verylowriskSolosHoldingsLimited 90 - lowriskJackWillsLimited 45 - aboveaverageriskFour(Holdings)GroupLimited 97 - verylowrisk

Accountinginformationforeachtenantisavailableonrequest.



SERVICE CHARGE58BridlesmithGateisletonFullRepairingandInsuringtermsbutwitharightforthelandlordtorecoveranycostsassociatedwithcommonparts,principallymaintenanceofthesharedexternalpassageways.

Theleasesat48-52provideforanannualservicecharge.Thetenantsareresponsiblefortheirowninternaldemisesandtheservicechargeallowsforrecoveryofcostsforstructuralrepairstothelandlord’sopen“retained”parts.Thereisnoshortfalltothelandlordinthisarrangementotherthanfromvacantareasandallcostsarerecoverablethroughtheservicecharge.Thebudgetfortheyearending2016is£11,590,ofwhichtheshortfallinconnectionwiththevacantupperfloorsisapportionedat41.5%,budgetedat£4,810forthecurrentyear.Fulldetailsofthecurrentservicechargeareavailableuponrequest.

OfficeShoeshaverecentlyvacated54/56atleaseexpiryandascheduleofdilapidationshasbeenservedonthetenant.Furtherinformationisavailableonrequest.ThepropertywaspreviouslyletonaFullRepairingandInsuringleaseandfullycontributedtothecostsassociatedwiththecommonparts.

EPCAcopyoftheEPCreportsandratingsareavailablefromthisoffice.

VATThepropertyiselectedforVATandthereforeVATwillbepayableonthepurchaseprice.ItisenvisagedthatthesalewillbetreatedasaTransferOfaGoingConcern.



Messrs.JacksonCrissforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyaretogivenoticethat:(i)theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersorlessees,anddonotconstitute,norconstitutepartof,anofferorcontract;(ii)alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrectbutanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;(iii)nopersonintheemploymentofMessrs.JacksonCrisshasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtothisproperty.JC0094.September2016.D

ESIG

NED

BY

TCC

PROPOSALWeareinstructedtoseekoffersforthefreeholdinterestinexcessof£8,000,000(EightMillionPounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelwouldreflectanetinitialyieldof6.25%,afterallowingforpurchaser’scostsof6.67%.

Themostrecentcomparableinvestmentsaleevidencecanbesetoutasfollows:-

a)37/47 Bridlesmith Gate and 2/8 Byard Lane, Nottingham

FreeholdoverrentedmixeduseinvestmentpurchasedbyFidelityinJune2015for£7,787,500,reflectinganetinitialyieldof6.07%.

b)25/29 Clumber Street, Nottingham (Footasylum)

FreeholdshoplettoFootasylumforafurther6yearsiscurrentlyunderofferatapriceinexcessof£5,000,000,whichreflectsanetinitialyieldof4.5%.

FURTHER INFORMATION Forfurtherinformation,pleasecontact:

Philip Hay Brook Wannop020 7637 7100 020 7637 7100

[email protected] [email protected]



mailto:[email protected]

mailto:[email protected]

Documents

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS … · INVESTMENT SUMMARY Nottingham is the commercial capital of the East Midlands and one of the UK’s ... size (PROMIS). The property