CHURCH ARCADE, BEDFORD, MK40 1LQ. High yielding town centre retail investment

Transcription

1 CHURCH ARCADE, BEDFORD, MK40 1LQ High yielding town centre retail investment

2 BEDFORD TOWN CENTRE LIDL High Street () Debenhams A4280 Bromham Road St Loyes Road CHURCH ARCADE M&S Beales Bedford Library Silver Street Car Park Superdrug Bus Station Church Square BHS Harpur Shopping Centre TESCO Greyfriars Road Police Station JD Wetherspoon Outline for indicative purposes only.

3 CHURCH ARCADE, BEDFORD, MK40 1LQ Investment considerations Busy covered shopping arcade in the heart of Bedford. Popular cut through from Bedford Bus Station to Harpur Street. Multi-let property with 15 retail units and two additional first floor units as well as ancillary accommodation producing a triple net income of 256,234 pa. Predominantly freehold. Potential to increase passing rent by letting two vacant units. Offers are sought in excess of 1,900,000 (One Million Nine Hundred Thousand Pounds) which equates to a triple net yield of 12.75% based on the contracted rent Potential reversion to c.15.5% when fully let.

4 CHURCH ARCADE, BEDFORD, MK40 1LQ Location Bedford is the county town of Bedfordshire and is a strong commercial and retail centre, located 50 miles north of London, 17.8 miles north east of Milton Keynes and 20.9 miles south east of Northampton. The town has a population of 80,000 (2005 census) and a wider borough area of 159,000. The town benefits from excellent transport links and is strategically located between the major arterial routes of the A1 and M1, both being 10 miles to the east and west respectively. The A421 southern bypass is a primary link between the A1 and M1, with the section between Bedford and junction 13 of the M1 having recently been upgraded to dual carriageway. The A421 additionally links with the, which provides direct access to Luton to the south. The town is well served by rail connections with frequent connections to London St Pancras with a fastest journey time of 35 minutes. International air travel is provided by Luton Airport approximately 20 miles to the south. Demographics Bedford Borough s population rose from 148,000 in 2001 to 159,000 in 2012 (increase of 12%). Much of the Borough is situated in the growth areas of the former Milton Keynes and South Midlands (MKSM) Strategy and approximately 9,000 new homes are planned for As a result the Borough s population is expected to grow significantly to more than 170,000 by The town can however draw from a much larger primary catchment of 309,000 (Promis) due to lack of competition and strong retailing provision within the town. A508 ORTHAMPTON RD 4 M40 M1 A509 Milton Keynes Aylesbury High Wycombe Maidenhead M4 Reading BEDFORD A421 M1 Luton A1 A428 Watford M25 M1 Heathrow Huntington Stevenage Luton Hemel A1(M) Hempstead St. Albans A14 A10 A10 A142 CAMBRIDGE Enfield LONDON A11 M11 Bishop s Stortford Harlow M25 Newmarket Cambridge Stansted A130 Chelmsford A12 A11 A120 A134 Bury St Edmunds A14 A134 Basildon Southend-on-Sea Colchester A1 A1 IPS Clac A5141 A4280 Ashburnham Road Bedford Bromham Road Woburn Road Con duit Road Ford End Road A5141 Alexandra Road Greyfriars Alexandra Place Brereton Road The Cresc Priory Street Midland Road Battison Street Western Street A5141 Prebend Street A4280 Bromham Road Hassett Street Maitland Street Costin Street Commercial Road Greyfriars St. Loyles Street Tavistock Street Harpur Street Lime Street Silver Street High Street St. Mary s S A4280 Mill Street The Embankment Duck M ill Lane Cardington Road St. Cuthbert s Street Ne wnham Road Situation The property is situated within the heart of Bedford town centre and provides a pedestrian only thoroughfare between Church Square and Harpur Street in close proximity to Bedford Bus Station. The property provides a popular cut through and nearby occupiers include Superdrug, Iceland and BHS at the western entrance to the arcade and Poundland and Greggs Baker at the eastern entrance. To the west is a densely populated residential area.

5 CHURCH ARCADE, BEDFORD, MK40 1LQ Description The property comprises a covered retail arcade constructed over ground and first floors to provide 15 retail units of differing sizes on the ground floor with ancillary accommodation on the first floor. There are only two additional units on the first floor. The Clarks Shoes unit has frontage onto Harpur Street and the Millman Jewellery unit has frontage onto Church Square. The remainder of the units face the covered arcade. The property benefits from a loading area to the rear of units 6-10 which is accessed from Harpur Street.

6 CHURCH ARCADE, BEDFORD, MK40 1LQ S RESSER HAIRD IZARD ECIGW Tenure The majority of the property is held freehold however units 1, 2, 3, 5 & 7 are held leasehold from Bedford Borough Council for a term of 125 years from 31 March The rent payable is 5% of ERV less voids and service charge shortfalls. For the previous year the head rent payable was 1, n Leasehold n Freehold Bedford Bus Station Re-development A major regeneration of the Bedford Bus Station area is currently taking place and the new Bus Station officially opened on 29 March The council has invested 4m and the wider scheme includes: The demolition and replacement of the existing bus station building. New public toilets. Major refurbishment of Allhallows multi-storey car park. Construction of new surface car park at Greyfriars. New shop fronts and disabled access for shops. External improvements including new parking, seating and other features. The council has committed to spend 9m on the improvements. This significantly improves this vital gateway to Bedford town centre. Crown Copyright, ES For identification purposes only.

7 Accommodation and Tenancies You will see from the attached schedule of accommodation and tenancies that the property comprises a total floor area of 2,299.7 sq m (24,754 sq ft). The current net rent passing amounts to 280,250 pa with a potential reversion to 280,251 pa (on a contracted basis). Tenancy Schedule Accommodation Tenant Ground Floor Area Sq Ft (Sq M) First Floor Area Sq Ft (Sq M) ITZA Lease start Lease expiry (break) Rent pa Rent ITZA Comments Non-recoverables (Rates and Service Charge) Unit 1 Ivana & Tania Silvestre t/a Hairdresser 775 (72.0) 934 (86.8) /10/ /10/2019 (02/10/2017) 12, Stepped Rent: Year 1: 12,000, Year 2: 13,000, Years 3-5: 14,000 Rent deposit of 3,500 Unit 2 Millman (Jewellers) Ltd 826 (76.7) 790 (73.4) /03/ /03/2020 (25/03/2018) 18, Unit 3 The ReUse Centre 943 (87.6) Unit 4 Vacant 446 (41.4) Unit 5 DP Clarke Family Butchers Ltd 936 (87.0) 795 (73.9) 375 (34.8) 891 (82.8) /05/ On a rolling monthly licence paying 1 + service charge ERV of 18,000 pa ERV of 8,000 pa. 9, /08/ /08/ , Tenant currently pays 25,000 pa. Unit 6 Simi & Lola Ltd 415 (38.6) 476 (44.2) /03/ /03/2020 (20/03/2018) 8, Stepped Rent: Year 1: 8,000, Year 2: 9,000, Years 3-5: 9,500. Rent deposit of 2,000 Unit 7 Vacant 769 (71.4) Unit 8 Philip ACS List Ltd t/a EcigWizard 488 (45.3) 769 (71.4) 531 (49.3) ERV of 15,000 pa. 13, /08/ /08/ , ,000 rent deposit Unit 10 Mrs Verma & Mr Mason t/a Arcade News 475 (44.1) 496 (46.1) /02/ /02/ , Tenant currently pays 15,000 pa. New lease discussions ongoing. Unit 11 Paul & Neelam Verma t/a Paul s Café 1,354 (125.8) /12/ /12/2024 (08/12/2019) 16, Stepped Rent: Year 1: 16,500, Year 2: 17,000 Years 3-5: 18,000. Rent review and tenant break in year 5. 3 month rent deposit Unit 11a (first floor) Donna Parke t/a Bridal Shop 0 1,237 (114.9) - 01/07/ /07/2020 (01/01/2017) 6, psf 6 months rent-free and tenant break option in 18 months and years 2, 3 and 4. Unit 12 Timpson Shoe Repairs Ltd 422 (39.2) Unit 14 Shenlong UK Ltd 227 (21.1) 486 (45.2) 313 (29.1) /08/ /08/ , /11/ /11/ , Holding Over. Guarantee from Dr Lin Li Unit 16 Viroj Sena Ltd t/a Sena Jewellers 299 (27.8) /08/ /08/ , Holding Over. Guarantee from Dr Lin Li Unit 18 Surjit Nandha & Paramjit Jossen t/a Baker s Best 488 (45.3) /05/ /05/ , Tenant currently pays 15,000 pa. Unit 16/18 (first floor) & 20 Harpur Street C&J Clark International Ltd 1,215 (112.9) 933 (86.7) 1,235 26/04/ /04/ , Dane Street Chambers (second floor) Luke Levitt t/a Personal Trainer 0 3,064 (284.6) - 29/04/ /04/2020 (29/04/2017) 12, psf 3 month rent free 3 month rent deposit. Landlord works to be completed. Total 10,078 (936.3) 14,676 (1,363.4) 280,251 22,667 Less leasehold (2014) 1,350 Net Rent 256,234 Service Charge The service charge budget for the year ending 31/03/16 is 22,500. Full details are available on request from Allsop. VAT The property is subject to VAT.

8 Proposal Offers are sought in excess of 1,900,000 (One Million Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT reflecting a net initial yield of 12.75% (based on contracted rents) % and a reversionary yield of c.15.5% when fully let assuming purchasers costs of 5.8%. For further information or to make arrangements for viewing please contact: Alex Butler alex.butler@allsop.co.uk Dominic Ketteringham dominic.ketteringham@allsop.co.uk Mark Dansky mark.dansky@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD