25/27 Tavern Street, Ipswich, IP1 3AD LET TO THE 5A1 COVENANT OF VODAFONE LTD PRIME RETAIL HIGH STREET INVESTMENT

Transcription

1 25/27 Tavern Street, Ipswich, IP1 3AD LET TO THE 5A1 COVENANT OF VODAFONE LTD

2 INVESTMENT CONSIDERATIONS The largest town in Suffolk and one of the principal shopping centres in East Anglia Prime retail location on the pedestrianised Tavern Street A large regeneration scheme is being undertaken in the centre of Ipswich to transform Cornhill into a visitor attraction Freehold Let to the 5A1 covenant of Vodafone Limited The passing rent of 127,500 pa reflects a Zone A of approximately 136 psf Let on a 15 year lease expiring 28/09/2023 with 5.41 years to expiry Vodafone have just passed their break option highlighting their commitment to the location Offers sought in excess of 1,710,000 (One Million Seven Hundred and Ten Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 7% assuming purchaser s costs of 6.19%

3 Image provided by Hall McKnight Architects LOCATION Ipswich is the largest town in the county of Suffolk and acts as the county s main administrative centre as well as the principal retailing town in East Anglia. The town is situated 133 km (83 miles) north east of Central London, 30 km (19 miles) north east of Colchester and 23 km (14 miles) north west of Felixstowe. The town benefits from good road communications and is located on the A12 which links directly with junction 28 of the M25 approximately 83 km (53 miles) to the south west. The A14 is approximately 3.2 km (2 miles) to the south and serves Felixstowe to the south east and Cambridge and the M11 to the west. Ipswich railway station provides regular direct services to London Liverpool Street with a fastest journey time of approximately 1 hour 10 minutes. London Stansted Airport is located approximately 64 km (40 miles) south west of Ipswich. Stansted Airport serves 168 direct flights with nearly 20 million passengers per year. IPSWICH REGENERATION A major regeneration project, jointly funded by Ipswich & Suffolk Councils and New Anglia Local Enterprise Partnership, commenced in Q1 2018, aiming to revitalise the Cornhill and transform it into a thriving retail and commercial hub. It will also provide an attractive focal point for the town and will stimulate a number of economic benefits, including the creation of over 300 jobs and 50% reduction in vacant business units and 50 smaller businesses created. The scheme is due to complete by Christmas 2018 at a cost of 3.3 million and has the potential to enhance an already thriving retail and commercial hub. SITUATION The property is prominently situated on the northern side of Tavern Street, directly opposite Thomas Cook and Whittards Tea and Coffee and adjacent to H&M and Accessorize. Footfall in front of the property is continuously high, being in a pedestrianised zone along a busy main retail pitch. The subject property is situated within close proximity to the entrance of the Sailmakers Shopping Centre as well as the pedestrianised thoroughfares of Westgate Street, Cornhill and Princes Street. DEMOGRAPHICS The total population within the Ipswich Primary Catchment Area is 278,000 with an estimated shopping population of 223,000. Given the distance to major competing centres, Ipswich has a high penetration within its catchment area. Ipswich has seen a 2.5% increase in tourism with approximately 3.1m people visiting in 2017, resulting in 182 million invested in the local economy. Approximately 5,000 students attend the University of Suffolk each year. The university operates at 5 sites, a central hub in Ipswich and secondary sites at another location in Ipswich, Lowestoft, Bury St Edmunds and Great Yarmouth. Over 35% (2015) of the catchment comprises the Acorn Group profile of executive wealth, mature money and countryside communities, in excess of the national average. Kettering Milton Keynes Aylesbury High Wycombe Maidenhead M40 Stamford Bedford M1 Hemel Hempstead PETERBOROUGH Luton A1(M) Luton LONDON Heathrow M1 Huntington Stevenage A1(M) Wisbech London Airport Ely CAMBRIDGE Cambridge A11 M11 Bishop s Stortford Harlow M25 Newmarket Stansted A130 Chelmsford A12 Swaffham A11 Thetford Bury St Edmunds A14 A120 A134 Basildon Southend Southend-on-Sea A1066 A12 Colchester A140 Norwich NORWICH IPSWICH A143 A146 FELIXSTOWE Harwich Clacton-on-Sea

4 RETAILING IN IPSWICH The town centre retail floor space in Ipswich is estimated at 1.30 million sq ft with the prime retailing centred along the pedestrianized stretch of Tavern Street and Westgate Street. Ipswich has a relatively strong representation of fashion retailers including Next, Primark, H&M, New Look, Topshop/Topman, Jack Wills and River Island. Along with a Marks & Spencer store and Debenhams department store, Ipswich has a good mass market fashion offer spread across the main retail pitches in the town centre. The town s principal shopping centre, Sailmakers (formerly Tower Ramparts) has recently been refurbished and comprises 125,000 sq ft and is anchored by Boots and new stores for River Island and Pandora. The larger of Ipswich s two centres is the 235,000 sq ft Buttermarket Shopping Centre. The centre has recently undergone a major 25.1m refurbishment and reconfiguration and is now anchored by a 12 screen Empire cinema and family entertainment centre. A new 20,000 sq ft Pure Gym has also been introduced along with nine new restaurant units with occupiers such as Coast to Coast, Byron and Wagamama. PLANS APPROVED TO REDEVELOP INTO RETAIL & RESTAURANT ACCOMMODATION UNDER OFFER Crown Copyright, ES For identification purposes only.

5 DESCRIPTION TENANCY COVENANT The property comprises an attractive terrace building arranged over basement, ground, first and second floors. The tenant trades on the ground floor with ancillary storage and staff accommodation at first floor levels. The second floor is used as ancillary accommodation with meeting and training rooms. The basement is currently used as additional storage space. Tenant Description Area (sq m) Vodafone Limited Ground Floor Area (sq ft) ITZA Basement First Floor Second Floor Lease Start Lease Expiry Next Review Rent pa (Zone A) /09/ /09/ /09/ ,500 ( 136) Comments Tenant has not exercised the 29/09/2018 break option. Vodafone was founded in 1982 initially known as Racal which evolved into the present day Vodafone. It is now a leading provider of telecommunications services in the UK and is part of the Vodafone Group, the world s second largest mobile phone company. For further information please visit Vodafone Limited has a Dun & Bradstreet rating of 5A1. The business produced the following headline accounts over the last 3 years: 31 March March March 2015 Turnover 5,843,900,000 6,183,500,000 6,294,200,000 Pre-Tax Profit - 668,500, ,800, ,800,000 Total ,271 Total Net Worth 3,128,100,000 3,506,200,000-1,991,600,000

6 EPC Available Upon Request. VAT The property has been elected for VAT and we would expect the transaction to be treated as a Transfer of Going Concern (TOGC). PROPOSAL Offers sought in excess of 1,710,000 (One Million Seven Hundred and Ten Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 7% assuming purchaser s costs of 6.19% For further information or to make arrangements for viewing please contact: Lottie Hayward lottie.hayward@allsop.co.uk Niamh Fleming niamh.fleming@allsop.co.uk Rob Elliott rob.elliott@bjbmail.com Misrepresentation Act: 1. Allsop LLP and Butters John Bee on their own behalf and on behalf of the instructing party of this portfolio whose agents Allsop and Butters John Bee are, 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 instructing party does not make or give, and neither Allsop nor Butters John Bee nor any of their members nor any person in their 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 instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party 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 and Butters John Bee is the trading name of BJB Professional Services Limited. Design: Command D