57/61 ABOVE BAR STREET SOUTHAMPTON PRIME FREEHOLD RETAIL PARADE INVESTMENT

Transcription

1 57/61 ABOVE BAR STREET SOUTHAMPTON PRIME FREEHOLD RETAIL PARADE INVESTMENT

2 INVESTMENT SUMMARY z Southampton is one of the principal commercial shopping centres on the South Coast, with a primary catchment population of 705,000. z Southampton ranks 15th in terms of volume of total retail spend available within the primary retail market area. z Prime retailing position on the west side of the pedestrianised Above Bar Street, close to the main entrance to the West Quay Shopping Centre. z Parade of 3 well configured retail units. Freehold. z z Let to the strong covenants of Santander UK plc until 2020, Game until 2020 and the Co-operative Bank plc until z Average weighted unexpired lease term of approximately 4.43 years. z Our clients are seeking offers in excess of 8,100,000 (Eight Million One Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 6.37%, assuming standard purchaser s costs of 6.67%.

3 M25 A46 l Bath rne A303 A36 Salisbury Shaftesbury A354 M4 SOUTHAMPTON Reading Newbury A338 M3 A34 M27 A34 Basingstoke Winchester A3 Guildford A27 Heathrow M25 London L Croydon Crawley Brighton Tunbridge Wells Maidstone Broadstairs Ramsgate Canterbury Folkestone ter A31 Poole Bournemouth LOCATION Southampton is a major port and one of the South East s principal commercial and retail centres. Southampton is located approximately 76 miles south west of Central London, 30 miles east of Bournemouth and 20 miles west of Portsmouth. The city benefits from excellent road communications, accessed via the M3 Motorway, which connects with the M25 Motorway and the M27, providing links to Portsmouth to the east and Bournemouth to the west. By rail, there are fast and frequent services to London Waterloo, with a journey time of approximately 1 hour and 20 minutes. Southampton Airport is located 5 miles to the north east of the city centre and provides flights to over 40 UK and European destinations, whilst London Heathrow Airport is located 67 miles to the north-east. Southampton is the dominant retail destination on the South Coast, with an estimated shopping population of approximately 251,000 people. Tourism provides a significant boost to the local economy with some 7.5 million visitors to the City each year. The City s primary catchment population of 705,000 people ranks 17th out of the Promis centres.

4 RETAILING IN SOUTHAMPTON Southampton is one of the UK s primary retailing centres with an estimated city centre retail floorspace of 2.18 million sq ft, ranking the city 12th of the Promis centres. The prime city centre retailing in Southampton is concentrated within the Hammerson owned West Quay Shopping Centre, which is supported by the pedestrianised section of Above Bar Street. The West Quay Shopping Centre comprises approximately 800,000 sq ft of retail accommodation and is anchored by John Lewis and Marks and Spencer. Westquay South, the schemes dining and leisure extension opened in December 2016 offering a new Cinema De Lux alongside Hollywood Bowl and restaurants including Franca Manca, The Diner, Cau and Five Guys. Above Bar Street is a part pedestrianised linear shopping street, comprising well configured retail units. Major retailers on the street include Primark, TK Maxx, Top Shop/Top Man, Urban Outfitters and Boots the Chemist. River Island are relocating from Westquay into 56/58 Above Bar demonstrating the strength of the pitch. Tellon Capital are redeveloping Bargate Quarter which will open in Autumn 2019, comprising 22 retail units and 5 restaurant units. The more secondary retailing can be found on the non-pedestrianised section of Above Bar Street and the Marlands Shopping Centre, which comprises 250,000 sq ft of retail space, anchored by Peacocks.

5 SITUATION The property occupies a prime trading position on the west side of the pedestrianised section of Above Bar Street, just to the north of the primary entrance to the West Quay Shopping Centre. Nearby retailers include Sports Direct, Pret A Manger, HMV and Urban Outfitters. DESCRIPTION The property comprises 3 well configured retail units arranged over ground and two upper floors, which forms part of a larger, post-war constructed retail parade. Servicing is available from Scullards Lane to the rear of the property.

6 PRIME FREEHOLD RETAIL PARADE INVESTMENT 57/61 ABOVE BAR STREET D CUP SECON SHOP E E F F CO NORTH GAME TO BE HSBC BANK MES JA WARREN S ODS GOOD TS GO ORTS SPOR SP S) ORS) FLOOR L FLO TAIL RETAI (2 RE (2 For Identification purposes only BARRHEAD TRAVEL

7 ACCOMMODATION We have been informed by our clients that the property comprises the following approximate floor areas:- ACCOMMODATION We have not had an opportunity to inspect the subject property but we have been informed by our clients that the property comprises the following approximate floor areas:- Address Tenant Ground Floor Sales sq ft ITZA Unit Gnd Floor Storage/ Loading sq ft First Floor Sales sq ft First Floor Anc/ Offices sq ft Second Floor Anc sq ft Total 57 Above Bar Street Santander UK plc 2,660 ( sq m) (21.83 sq m) 1,231 ( sq m) 368 (34.19 sq m) 4,494 ( sq m) 59 Above Bar Street Game Retail Ltd 1,773 ( sq m) (78.59 sq m) 431 (40.04 sq m) 3,050 ( sq m) 61 Above Bar Street * The Co-operative Bank plc 1,944 ( sq m) 757 2,090 ( sq m) 517 (48.03 sq m) 2,696 ( sq m) 7,247 ( sq m) TOTAL FLOOR AREA 14,791 sq ft (1, sq m) *We understand that the unit has basement accommodation of 900 sq ft accessed by a trapdoor.

8 TENURE Freehold. TENANCIES The property is let in accordance with the Tenancy Schedule set out below, to Santander UK plc, Game Retail and The Co-operative Bank plc. The total current income is 551,000 pax. The average weighted unexpired lease term is approximately 4.43 years. Address Tenant Term From Expiry Next Rent Review Current Rent (pa) Zone A Analysis Comments 57 Above Bar Street Santander UK plc /03/90 31/12/20 201, Tenant extended lease for 5 years from Above Bar Street Game Retail Ltd 5 15/12/15 14/12/20 150, Above Bar Street The Co-operative Bank plc 10 21/3/ /3/26 20/3/ , The tenant has removed a sales staircase at the front of a the shop via a licence to carry out works dated 5th December The tenant regeared in March TOTAL 551,000

9 RENTAL VALUE Rental levels outside West Quay reached 230 Zone A in The most salient evidence on the street is the regear of the Halifax at 63/65 Above Bar Street where the tenant took a new 10-year lease at a rent of 260,330 pax which reflected a headline Zone A of 190 per sq ft and a net Zone A rent of 183 ZA. 48/50 Above Bar Street was let to Holland and Barrett in August 2017 at a rent of 310,000 pax which reflected a net Zone A rent of 190 per sq ft. As of today s date it is in our opinion that the subject property is rack rented. We understand that the prime net Zone A tone in West Quay is currently 320 Zone A per sq ft. VAT The property has been elected for VAT purposes and therefore it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC). EPC Energy Performance Certificates can be provided on request.

10 COVENANT STATUS The salient covenant information on the tenants can be set out in the table below:- Address Tenant Date Total Turnover ( 000) 57 Above Bar Street Santander UK plc Pre-Tax Profits ( 000) Net Worth ( 000) Experian Score 31/12/2017 1,222,000,000 1,817,000,000 14,311,000, Very Low Risk 59 Above Bar Street Game Retail Ltd 29/07/ ,112,000-7,135,000 68,866,000 A Below 73 Average Risk 61 Above Bar Street The Co-operative Bank plc 31/12/ ,000,000 1,424,000, Above Average Risk PROPOSAL We are instructed to seek offers in excess of 8,100,000 (Eight Million One Hundred Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest in the subject property. A purchase at this level would reflect a net initial yield of 6.37%; after allowing for standard purchasers costs at 6.67%.

11 PHILIP HAY For further information, please contact: BROOK WANNOP Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (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 but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. June 2018