Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
P R I M E H I G H S T R E E T R E V E R S I O N A R Y R E T A I L I N V E S T M E N T
INVESTMENT SUMMARY
• Bath is considered to be one of the UK’s best retail destinations• Bath is a UNESCO World Heritage Site and an internationally renowned tourist destination attracting more than
4.8 million tourists in 2017• 100% prime pitch in the heart of Bath’s retailing centre• Mixed-use asset comprising retail and residential• A rare double-fronted unit, offering a wide and fully glazed display directly on to the pedestrianised Stall Street• Let to a strong national covenant with 3.5 years remaining• Total gross rent of £272,800 per annum, with a net rent of £231,880 per annum• Outstanding rent review currently being negotiated with the tenant• Reversionary asset, offering excellent opportunities for rental growth
02
PROPOSAL
Income
£231,880
Offers in the region of
£4,350,000
Net Initial Yield
5.00%
Mixed-used asset located
on Bath’s 100% prime retail pitch
LOCATION
Bath is an attractive and historic city in Somerset, famous worldwide for its impressive architecture and Roman Baths. The city has been designated by UNESCO as a World Heritage Site and is an internationally renowned tourist destination, attracting more than 4.8 million tourists per annum.
The city has excellent road communications, being 8 miles south of the M4 motorway and 20 miles east of the M5 motorway.
Bath benefits from direct links to London with train services to London Paddington leaving from both the mainline station and Bath Spa, with a fastest journey time of 1 hour 25 minutes. The travel time will be reduced by approximately 15 minutes on completion of the electrification of the Great Western Line.
Bristol airport is located just 20 miles south of the city centre, providing flights to a wide range of domestic and international locations.
03
Bristol
BATHCardiff
Swansea
GloucesterCheltenham
Swindon
Oxford
Milton Keynes
Reading
Aylesbury
High Wycombe
Basingstoke
Guildford
Crawley
Maidstone
RoyalTunbridge Wells
Chelmsford
Colchester
Ipswich
Northampton
Bedford
Cambridge
Norwich
Great Yarmouth
Lowe stoft
Felixstowe
London Gateway
King’s Lynn
StevenageStanstedAirport
LONDON
LutonAirport
Leicester
Birmingham
Coventry
Worcester
Telford
Derby
Nottingham
Nottingham CityAriport
BirminghamAirport
A57
A1
Manchester
LeedsBradford
Leeds BradfordInternational Airport
Liverpool
Chester
Preston Burnley
Middlesbr oughDarlington
Stockton-on-Tees
Hartlepool
Sunderland
Newc astleupon Tyne
Edinburgh
Glasgo wFalkirk
Stirling
Aberdeen
Perth
Dundee
Inverness
Plymouth
Exeter
Torquay
Southampton
Portsmouth
Bournemouth
Hastings
Southend-on-Sea
Ramsgate
Scarborough
Grantham
East Midlands Airport
Lincoln
Robin Hood Airport
Skegnes s
Doncaster
Grimsby
Barnsley
Peak District
Manchester Airport
Carlisle
Dumfries
Salisbury WinchesterTaunton
Weston-super-Mare
Newport
M25
A47
A140A148
A146
Eastbourne
BrightonYeovil
HeathrowAirport
M4M5
M5
M4
M3A303
A338
A350
A37
A346
Amesbury
A303
M1
A47
A11
A11
A47
M40
A45
A134
A12
A140
Petersborough
CorbyKettering
M5
A41
M40
M25
GatwickAirport
BristolAirport
DEMOGRAPHICS
Bath has a primary catchment population of 458,000, with an estimated shopping population of 223,000. The catchment population is one of the most affluent in the UK with an above average population of adults within the most affluent AB social group. The population is also supported by the 22,000 student population that attend either Bath University or Bath Spa University.
The regional catchment within one hour is extensive and includes Wiltshire (Swindon and Salisbury), Gloucestershire (Cheltenham and the Cotswolds), Somerset and South Wales (Cardiff).
04
Bath is listed as one of the top performing urban areas outside of London for recent house price growth, with a significant proportion of buyers from London. The city is further expected to outperform the national residential market with an average price growth of 29.4% over the next 5 years.
Bath’s population is one of the most affluent in the UK
RETAILING IN BATH
Bath is one of the UK’s leading retailing destinations, scoring a high 10th out of 200 on the PMA retail score, which is based on the number of multiple retailers located in the city. The total city centre retail floor space in Bath is estimated at 1.43 million sq ft.
The prime pitch in Bath runs along a linear central retail area. The principle shopping street of Milson Street, Union Street, Stall Street and Southgate form a north-south axis running parallel to the River Avon. Centrally located Milsom Street, Old/New Bond Streets and Stall Street are viewed as the high-end retail pitch. The street benefits from a high amount of tourist footfall due to the proximity to Roman Baths, which is located 50 meters from the subject property. The street anchored by M&S and Primark, with other national retailers including Ernest Jones, Whittard, Size? Holland & Barrett and Sole Trader. A number of these stores have recently completed expensive fit-outs or refurbishments, highlighting their dedication to Bath’s retailing core.
Southgate Shopping Centre located to the south of the subject property, opened its final phase in Autumn 2012 and provides over 420,000 sq ft of retail, 724 car parking spaces and a new bus station. The scheme is anchored by Debenhams and other retailers represented include Apple, Hollister, Urban Outfitters, Tommy Hilfiger and All Saints.
The strength of the retailing in Bath is evidenced with several new brands taking their first stores outside London in the centre, including India Jane, Brissi and the Danish brand Hay, the latter two with new ‘townhouse’ style concept stores.
05
DESCRIPTION
The property is an attractive sand stone period property, based over basement, ground, first and second floors.The ground floor offers a fully glazed double fronted and well configured rectangular unit mainly used as sales. With the basement and first floor comprising of ancillary accommodation. On the second floor there are two, 3 bedroom flats that both have access to an internal courtyard.
The property is Grade II listed.
06
SITUATION
The subject property occupies a prime retailing location on the dominant Stall Street. The
unit is situated opposite a newly configured and fully glazed
Holland & Barrett, Size and EE.
Other prominent national retailers on Stall Street include:
are in the process of constructing a newly created,
corner unit, at the southern end of Stall Street directly opposite the
Southgate Shopping Centre.
SOLE | TRADER
The retail market in Bath is significantly
boosted by 4.8 million
tourist visitors each year
ACCOMMODATION & TENANCY SCHEDULE
The property is let to Schuh Limited until 28 March 2022, providing a 3.5 year unexpired term. The passing rent on the retail element is £235,000, which devalues to £152 Zone A.
There is an outstanding rent review from 28 March 2017 which has recently been instigated and is currently being negotiated with the tenant.
The property also has two flats which are both let on AST’s. Each flat has a rental income of £18,900 per annum, providing the property with a total residential income of £37,800 per annum.
The property therefore produces a total income of £272,800 per annum. After the deduction of the head rent, the property produces a net income of £231,880 per annum.
Description Use Area (sq ft) ITZAGround Floor Sales 1,916
ITZA 1,316Ground Floor Ancillary 282Basement Ancillary 2,195First Floor Ancillary 2,276Retail Total 6,669Second Floor Flat A 965* Second Floor Flat B 821* Residential Total 1,786
* gross internal area
TENURE
In common with many retail buildings in Bath, the property is held long leasehold, by way of a 125 year lease from 15th January 1981.
The current rent payable is 15% of rents received, which equates to £40,920 per annum.
07
COVENANT
Schuh Limited (Company No. SC125327), is a footwear retailer from the UK, with 118 stores in the UK and Ireland. In June 2011 Schuh was acquired by Genesco Inc. for £125 million. Genesco Inc. has more than 2,450 retail stores throughout the U.S and has a turnover of $3.02 billion in in 2016.
28/01/2017 30/01/2016 31/01/2015Sales Turnover £280,936,000 £266,808,000 £247,503,000Profit Before Tax £15,800,000 £14,334,000 £11,452,000Net Worth £52,831,000 £39,163,000 £87,547,000
Schuh Limited has a Creditsafe rating of 78 reflecting a “very low risk” of business failure.
08
Reversionary asset, let to a strong national covenant, with “very low risk” of business failure
RENTAL COMMENTARY
We have analysed the passing rent from the retail element totals of £235,000 per annum, to reflect £152 Zone A.
We are of the opinion that the property is reversionary, and offers excellent opportunities for rental growth, as highlighted by the most recent comparable evidence detailed below:
Address Tenant Date Transaction Zone A20 Union Street Dr Martins Apr 2018 OML £180
26 Stall Street Caffe Nero Dec 2017 OML £155
12-13 Union Street Soho Coffee Aug 2017 OML £155
21-22 Union Street Nationwide Jul 2017 OML £207
11 Union Street Tiger Jun 2017 OML £220
27-29 Stall Street Ernest Jones Dec 2016 OML £170
09
INVESTMENT COMPARABLES
The investment market has historically performed strongly in Bath, this is demonstrated by the evidence set out below:
Address Date Tenant WAULT Price NIY21-22 Union Street Dec 2017 Nationwide 10 years £5,900,000 4.00%39 Milsom Street May 2017 The Ivy 25 years £8,019,000 4.17%2 Bath Street Jan 2017 Ecco Shoes 4.7 years £2,750,000 4.30%2 & 3 Milsom Street Oct 2016 East + Mayther Cards 7 years £5,180,000 4.60%
10 VAT
The property has been elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer of a Going Concern (TOGC).
EPC
The property has an EPC rating of D (86).
The EPC certificate can be provided, if requested.
50 metres
For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011
Bath
Experian Goad Plan Created: 12/06/2018Created By: Jones Lang LaSalle Ltd
Copyright and confidentiality Experian, 2017. © Crown copyright anddatabase rights 2017. OS 100019885
PROPOSAL
We are instructed to seek offers for our client’s
long Leasehold interest in excess
of £4,350,000 reflecting a Net Initial Yield of
5.00%, allowing for purchasers costs
of 6.56%.
100% prime retail pitch located in the heart of Bath
City Centre
MISREPRESENTATION ACTJLL, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by JLL, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle.
Designed by Graphic Outlines Ltd. September 2018
Alex Cousins020 3147 1375
Christopher Robinson020 7087 5624
Jonathan Heptonstall020 7318 7843
FURTHER INFORMATION
For further information or to arrange an inspection of the property, please contact::