Embed Size (px)
Citation preview
LONG LET DEPARTMENT STORE
WITH MINIMUM FIXED UPLIFTS
DEBENHAMSHASTINGS TN34 1HN
HuntersProperty Investment Ltd
2
INVESTMENT SUMMARY
Located in the heart of Hastings within the
pedestrianised retail pitch
Site of 0.53 acres
Well configured store trading over five floors, with
a total area of 96,089 sq ft
Freehold
Let to the 5A1 covenant Debenhams Retail Plc until
2034 - unexpired term of approximately 16½ years
Current rent of £636,662.55 per annum
(£6.62 psf overall)
Rent reviews every 5 years equivalent to
2.5% pa compounded or open market rental value,
whichever is the higher - next rent review in June
2019, providing a minimum uplift to £720,325.58 pa
Significant asset management opportunities
on a break up including potential reconfiguration,
more massing, sub division, or change of use to
residential / PRS / student / hotel accommodation,
subject to planning
Hastings could see the new arrival of the HS1
rail extension
Offers are sought in the region of £9,950,000
(Nine Million, Nine hundred and Fifty Thousand
Pounds), subject to contract and exclusive of VAT.
Reflects a capital value rate of £103.54 per sq ft
This reflects the
following minimum
yield profile, net of
standard purchaser's
costs:-
Net Initial Yield 6.00%
June 2019 6.79%
June 2024 7.68%
June 2029 8.69%
DEBENHAMS HASTINGS TN34 1HN
3
LOCATION
Hastings is located in East Sussex on England’s south coast.
The town is approximately 55 miles south of London, 31
miles south west of Ashford and 16 miles east of
Eastbourne. It is connected to the national road network via
the A21, linking to J5 of the M25, and the A259 south coast
road leading to Eastbourne to the west and Folkestone to
the east. Hastings also lies on the A27 west-east coastal
route (Salisbury to Pevensey), which, between Portsmouth
and Lewes, is one of the busiest trunk roads in the UK,
providing direct access to Eastbourne, Brighton and
Portsmouth.
Hastings rail station offers frequent services to London,
either by Southeastern Trains to London Bridge (1h 26m)
or by Southern via Ashford to St Pancras International
(1hr 36m) or Victoria. Ashford Station provides access to
HS1/Eurostar. Hastings also benefits from an east-west rail
service to Eastbourne (30mins) and Brighton (1hr 18m).
London Gatwick airport is 39 miles to the north and the port
of Dover (40 miles) and the Channel Tunnel (36 miles) are to
the east.
Recent Infrastructure Improvements and Investment
The long awaited Bexhill to Hastings Link Road (at a cost of
approximately £120 million), which opened in 2015, has
greatly reduced local congestion and provides significant
travel time savings to Eastbourne and Brighton. This much
needed road improvement is already boosting the local
economy with an anticipation it will assist delivery of up to
2,000 new homes and 3,000 new jobs.
Hastings’ 144 year old Grand Pier was largely destroyed by
fire in 2010 and, after a £14.2m redevelopment, reopened
in 2016. The new pier sums up Hastings’ on-going
regeneration and is expected to bring a further 300,000
visitors to Hastings per year, with an extra £1.2 million to
the local economy.
Network Rail have assigned £2.3bn to improve train services to the south
east with works scheduled to conclude by 2019 which paves the way for high
speed trains to London. Hastings could see the new arrival of the HS1 line
extension, which would run from Bexhill, Hastings and Ashford. This would
reduce journey times from Hastings to London St Pancras International to
68 minutes. Hastings would gain an international status as it would be
connected to the Channel Tunnel train line to Europe. The arrival of HS1
would be a ‘Gamechanger’ for Hastings and, in addition to the new link road
recently opened, would further boost its accessibility and economy.
Demographics and Local Economy
● The total population within Hastings primary catchment area is 171,000
with an estimated shopping population of 90,000.
● 86% of catchment residents live in areas where average household income
is also above GB average.
● 32% of Hastings catchment area is Acorn Wealthy Achievers.
● Household income is 10% above GB average.
HASTINGSHASTINGSHASTINGSBrightonBrightonBrighton
AshfordAshfordAshford
CanterburyCanterburyCanterbury
East GrinsteadEast GrinsteadEast GrinsteadGatwickGatwickGatwick
M2
A259
A27
A262A264
A21
A21A28
A27
A2070
SevenoaksSevenoaksSevenoaks
LondonLondonLondon
M25
M20M20
M26
M20M23
A23
EastbourneEastbourneEastbourne
BexhillBexhillBexhill
NewhavenNewhavenNewhaven
LewesLewesLewes
Tunbridge WellsTunbridge WellsTunbridge Wells
MaidstoneMaidstoneMaidstone
RochesterRochesterRochester
Folkestone Folkestone Folkestone A26A22
A22
A265
UckfieldUckfieldUckfield
DEBENHAMS HASTINGS TN34 1HN
SITUATION
The property fronts onto the pedestrianised Robertson Street with
a further entrance from Robertson Terrace which runs parallel and
to the rear of Robertson Street. The Priory Meadow Shopping
Centre (420,000 sq ft) lies the north east of the property, provides
1,100 parking spaces. Tenants include Marks and Spencer, River
Island, Boots, H&M, New Look and Topshop.
Surrounding occupiers include HSBC Bank, NatWest Bank, Café
Nero and Yates’s Public House.
SITE
The property occupies an irregular shaped site with a total frontage
to Robertson Street of 55m (180 ft) and Robertson Terrace of
24.4m (90 ft). The overall site area is approximately 0.214 hectares
(0.53 acres).
4
HastingsHastingsHastings
CARLISLE PARADE
STATION APPROACH
WEL
LING
TON
SQUAR
E
QUEE
NS R
OAD
QU
EEN
S R
D.
SOUTH TERRACEDEVO
NSHI
RE R
D.
PELHAM ST.
CAST
LE H
ILL
ROADRU
SSEL
L ST
REET
HAVER
LOCK
RD.
MIDDLE ST.
ROBERTSON
ROBERTS
ON ST.
ROBERTSON TER.
CARLISLE PARADE DENMARK PLACE
A259
A2101
A2101
A259
A21
A21A21
PASSAGE
HAR
OLD
PLACE
DEBENHAMS HASTINGS TN34 1HN
5
DEBENHAMS HASTINGS TN34 1HN
4
2
1
7
56
3
9
4 5 6
11 10
58 61
PH
52
6053 59PH
57
1213
51
11
LB
10
15 1416
1a
52b
51a51d51c
1 to 3
1
to
17
PASSAGE
34
to
69
54 to 56
18
to
33
47 to 49
9
El Sub Sta
Albany
Court
CAMBRIDGE ROAD
ROBERTSON
TERRACE
51b
ROBERTSON
OFFICE
ENTRANCE
SC
ULP
TU
RE
CLU
B
MO
BIL
E
CE
NT
RE
ZO
FIA
'S IC
E
CR
EA
M
UN
DE
R
DE
VE
LO
PM
EN
T
REDEVELOPMENT SITE
6
THE PROPERTY
HASTINGS TRAIN STATION
DEBENHAMS HASTINGS TN34 1HN
DESCRIPTION
The property combines several buildings which
have been altered and extended at various times
and using a number of construction methods.
1/3 Robertson Street is considered the primary
entrance to the store, situated closest to the
Robertson Street / Havelock Road and Queens
Road Junction. This building dates back to the
1800s and comprises basement, ground and
5 upper floors. It has a sandstone façade to the
upper floors of the frontage with a number of
crittal style steel and PVC windows to the first
floor. The ground floor has three full height
display windows, two sets of metal, double
glazed doors and two fire exit doors which lead
to the basement.
Adjacent to this, the ground and first floor of
Number 4 Robertson Street is occupied by
HSBC Bank which is not within the demise of the
property. By way of a flying freehold, the 2nd
floor of this building is occupied by Debenhams.
6/9 Robertson Street is of the same construction
as Number 4, but includes an additional upper floor.
The ground floor offers similar retail frontage to 1/3
Robertson Street with three display windows and
two double doors.
The building fronting Robertson Terrace is more
modern, believed to date back to the 1960s. The
ground and first floors (first and second floors from
within the store) are let to Debenhams, with the
ground having a similar style glazed frontage as
Robertson Street with display windows and double
entrance doors. The first floor is used as a
Debenhams café for customers and benefits from
sea views with large PVC windows. At ground level,
to the right hand side there is an undercroft
driveway through the building which leads to a small
delivery yard which includes a vehicle turning table.
The additional 6 upper floors of this building
comprise a block of residential flats which has been
sold on a long lease as detailed below in the
Tenancy Summary.
Internal customer areas are served by escalators
between the ground, first and second floors.
A passenger lift also serves the ground to
fourth floor levels and there are two goods lifts
serving the basement to upper floor levels.
An independent customer lift within the terrace
buildings links the ground, first and second floors
as well. The third floor accommodation is
accessed via a staircase and leads to storage
areas which are predominantly disused.
Within the third floor retail space there is a
section partitioned off which was previously
used as a hairdressers. Currently it is used as a
storage area.
The fourth floor of 1-3 Robertson Street is used
for administrative office purposes and is
arranged in individual rooms. The remainder of
the fourth floor provides a staff area.
The majority of the remaining areas including
the basement are used for storage purposes,
maintenance offices, plant and staff rooms.
7
DEBENHAMS HASTINGS TN34 1HN
8
ACCOMMODATION
Our client has been provided the following gross internal floor areas:-
TENURE
The property is held freehold.
Floor Description Area (sq m) Area (sq ft)
Ground Sales 2143.11 23,068
First Sales 2069.78 22,279
Second Sales and restaurant 2366.67 25,475
Third Sales and previously hairdressing 679.49 7,314
Fourth Offices and staff room 461.53 4,968
Fifth Storage and workshop 383.27 4,125
Basements Storage 823.09 8,860
Total 8926.94 96,089
Rental Period Minimum Rent (pa)
24.06.2019 - 23.06.2024 £720,325.58
24.06.2024 - 23.06.2029 £814,982.27
24.06.2029 - 24.03.2034 £922,077.64
TENANCY
The property is let on two leases as follows:-
The commercial element is let by way of an
occupational lease to Debenhams Retail Plc for
a term of 30 years from 25th March 2004 expiring
24th March 2034 (16 ½ years unexpired).
The tenant has an option to renew the lease at
expiry for a further 25 years. The passing rent is
£636,662.55 per annum (as of 24th June 2014
minimum fixed uplift) and increases every 5 years,
based on a stated minimum rent (equates to 2.5%
per annum compounded) or the open market rent,
whichever is the higher. The lease stipulates the
minimum rent as shown opposite:
The residential element, known as Albany
Court, Robertson Terrace, has been sold on
a long lease to Multistates Limited for a term
of 199 years from 1st November 2004
expiring 1st October 2203 at a peppercorn
rent. The tenant is obliged to repair, uphold,
cleanse and keep in repair the premises
including the roof, external and/or load
bearing parts of the building.
9
TENANT COVENANT INFORMATION
Debenhams is one of the UK’s most iconic department stores
with a history on the British high street dating back over 200
years, which now trades from 248 department stores across
27 countries. The company is the second largest department
store chain in the UK, with a top four market share in
womenswear and menswear and a top ten share in the
childrenswear market.
Debenhams Retail Plc has a Dun & Bradstreet rating of 5A1
representing minimum risk of business failure. Financial results
for the last three years are set out below:
Company Number: 03/03/2016 29/08/2015 30/08/2014 000083395 (£000s) (£000s) (£000s)
Sales Turnover £2,105,400 £2,099,300 £2,085,900
Pre-tax Profit £145,200 £140,200 £135,700
Net Worth £1,010,600 £922,800 £809,900
VAT
The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going
Concern (TOGC).
EPC
The EPC rating for the property is available upon request.
RECENT INVESTMENT TRANSACTIONS
Evidence of recent department store investment sales are:
Location Size (sq ft) Tenant Unexpired Price Yield Date ............. .............. Term
Manchester 387,595 Debenhams 33 years £84.5m 5.07% Under Offer
Southampton 295,000 Debenhams 17 years £29m 5.95% Under Offer
Nottingham 190,000 Debenhams 23 years £25.85m 5.35% April 17
Winchester 50,612 Debenhams 17 years £15.83m 4.16% April 17
Eastbourne 102,946 Debenhams 17 years £14.10m 5.88% April 17
Camberley 115,858 House of Fraser 23 years £17m 5.75% Dec 16 .... (& Nat West)
DEBENHAMS HASTINGS TN34 1HN
10
FURTHER INFORMATION AND VIEWINGPROPOSAL
Offers are sought in the region of £9,950,000
(Nine Million, Nine Hundred and Fifty
Thousand Pounds), subject to contract and
exclusive of VAT. This reflects a capital value rate
of £103.54 per sq ft.
This provides the following minimum running
yield profile, net of standard purchaser’s costs:-
Bidwells
25 Old Burlington Street
London W1S 3AN
Tel: 020 7493 3043
Mike Fox
DDI: 020 7297 6273
Darryl Stevenson
DDI: 020 7297 6277
Should you have any queries or wish to make an inspection, please contact:
October 2017
Net Initial Yield 6.00%
June 2019 6.79%
June 2024 7.68%
June 2029 8.69%
Hunters Property Investment Limited
66 Grosvenor Street
London W1K 3JL
Tel: 020 7493 2009
Richard Hunter
DDI: 020 7493 2009
Saskia Hunter
DDI: 020 7493 2009
October 2017
DEBENHAMS HASTINGS TN34 1HN
Bidwells
25 Old Burlington Street
London W1S 3AN
Tel: 020 7493 3043
bidwells.co.uk
Hunters Property Investment Limited
66 Grosvenor Street
London W1K 3JL
Tel: 020 7493 2009
huntersprop.co.uk
IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 AND THE
PROPERTY MISDESCRIPTIONS ACT 1991
Bidwells LLP and Hunters Property Investment Limited act for themselves and for the vendors
of this property, whose agents they are, give notice that:
These particulars do not form part of any offer or contract and should not be relied upon as
statements or representatives of fact. Bidwells LLP and Hunters Property Investment
Limited have no authority to make or give in writing or verbally any representation or
warranties in relation to the property. Any areas of measurements or distances are
approximate. The text, photographs and plans are for guidance only and are not necessarily
comprehensive. No assumptions should be made that the property has all necessary
planning, building regulation or other consents. Bidwells LLP and Hunters Property
Investment Limited have not carried out a survey, nor tested the services, appliances or
facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of
Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number
OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2
9LD, where a list of members is available for inspection
HuntersProperty Investment Ltd
