101-103 HIGH STREET SUTTON PRIME REBASED GREATER LONDON RETAIL INVESTMENT FOR SALE
INVESTMENT SUMMARY z Sutton is an affluent London Borough with approximately 554,000 people living within a 20-minute drivetime catchment. z Ranked in the top 100 Retail Centres. z 100% prime retail investment located on the pedestrianised high street. z Freehold. z Attractive WAULT of 10 years to expiry, let off a rebased rent. z Let to the renowned covenant of C & J Clark International Limited. Our client is seeking offers in excess of 1,700,000 (One Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an initial yield of 5.82%, assuming standard purchasers costs of 6.42%.
SUTTON LOCATION Located just 12 miles south of Central London, Sutton is the principal town in the London Borough of Sutton. Nearby towns include Croydon to the east (5.5 miles), Epsom to the south-west (5 miles), Wimbledon to the north (5 miles) and Banstead to the south (2.5 miles). Sutton is situated within the M25, approximately 8 miles from Junctions 7 and 8. Direct access onto the M23 provides an arterial route into the county of West Sussex. The London South Circular (A205) is located approximately 8 miles to the north via the A24. Sutton is well served by three mainline rail stations, two of which (West Sutton and Sutton Common) are served by Thameslink. Sutton station is the primary rail station within the town and is served by both Thameslink and Southern rail. There are regular direct services into Central London stations including London Victoria (27 minutes) and Blackfriars (34 minutes), in addition to St Pancras International (45 minutes) which is served by the Eurostar. Local bus routes serve Kingston (213), Tooting (280) and Epsom (470). Sutton also benefits from expedient access to two of the UK s busiest airports. Gatwick Airport is located 17 miles to the south and can be accessed via National Express coach (33 minutes), whereas Heathrow Airport is located 15 miles to the west.
DEMOGRAPHICS Sutton is an affluent London Borough with approximately 554,000 people (220,000 households) living within a 20-minute drivetime catchment. This figure remains high within a 10-minute drivetime catchment, which hosts a population of approximately 119,000 people (49,000 households). The catchment population is ranked 56th in the UK on the PMA Affluence Indicator. It has a high proportion of adults aged 25-44 with an average age of 37 years. There is an above average proportion of adults categorised in the most affluent A and B Social Groups, demonstrating the prosperity of the area. Unemployment is low with local jobs mainly in the service area, professional, light industrial and retail sectors. Additionally, Sutton s outer London location and commuter town reputation means there is a considerable pool of retail consumer expenditure in both catchment areas.
RETAILING IN SUTTON Sutton town centre is the Borough s main shopping destination, with a mile-long High Street dividing two shopping centres. Total retail floorspace in Sutton town centre is estimated at 1.5 million sq ft (CoStar, 2018). The town s primary shopping centre, the St Nicholas Centre, opened in 1992 and is anchored by Debenhams and Primark in addition to a six screen Empire Cinema. In total, the scheme equates to approximately 405,000 sq ft of retail space along with a six-storey car park. Sutton s secondary centre is Times Square Shopping Centre, a smaller, covered scheme built around 1970 totalling approximately 185,000 sq ft, providing a secondary retail offer. The scheme was previously anchored by BHS and has undergone significant refurbishment in recent years. TK Maxx and Pure Gym have recently opened/upsized within the scheme, with further refurbishment currently ongoing. Situated in between these two centres is the pedestrianised High Street, which represents the 100% prime retailing provision within the town with retailers such as Marks & Spencer, Topshop/Topman, JD Sports, Metro Bank and Boots all occupying large, prominent stores. At each end of the High Street lies a supermarket, Morrison s at the southern end and Sainsbury s at the northern end, along with an 85,000 sq ft Asda that fronts onto the High Street. This diverse retail mix generates a healthy level of footfall for the pitch. In addition to the national retailers situated within the town centre, there is also a number of independent traders, along with several catering and leisure occupiers including All Bar One, Slug & Lettuce, JD Wetherspoon and Riva Bingo Club.
SITUATION The subject property is situated in a prime trading location on the pedestrianised High Street, in close proximity to the entrances to The St Nicholas Centre and Times Square Shopping Centre. Near by major national retailers include Boots, WH Smith and TK Maxx. TO BE H&M NORTH TELLYS PASTA DESCRIPTION The unit comprises a traditional brick construction retail property arranged over ground, first and second floors. The property is serviced from a service yard located to the rear of the building, accessed from St Nicholas Road. TELLYS PASTA THE FONE DEPOT UNDER ALTERATION PHONE CLINIC For Identification purposes only
ACCOMMODATION The property has been measured in accordance with the RICS code of measuring practice (Sixth Edition) and provides the following approximate net internal floor areas: Ground Floor Total 2,683 sq ft 249.25 sq m Ground Floor ITZA 1,167 units First Floor Sales 1,707 sq ft 158.6 sq m First Floor Ancillary 853 sq ft 79.2 sq m Second Floor Ancillary 210 sq ft 19.5 sq m Total 5,453 sq ft 506.55 sq m TENURE Freehold
TENANCY The subject property is let to C&J Clark International Limited (Company No. 0141015), trading as Clarks, on a 10 year Full Repairing & Insuring lease commencing 10th August 2018 and expiring 9th August 2028. The tenant has the option to break at the end of the 5th year of the term, exercisable on not less than 6 months prior written notice. The tenant pays an annual rental of 105,000 per annum exclusive. The previous passing rent was 171,000 per annum. Clarks have been in occupation for over 10 years and have recently renewed their lease, demonstrating tenant longevity and positive trading performance. COVENANT STRENGTH C&J Clark International Limited is a British-based, international shoe manufacturer and retailer. It has over 1,000 branded stores worldwide and is a subsidiary of C&J Clark (Holdings) Limited. The company offer a wide range of footwear serving a diverse target audience, ranging from young children to elderly customers. The summary account information can be seen as follows; C&J Clark International Limited 31/01/2015 31/01/2016 31/01/2017 GBP GBP GBP Turnover 893,000,000 935,400,000 885,600,000 Pre-Tax Profit 110,600,000 72,600,000 36,400,000 Total Net Worth 261,700,000 362,800,000 331,800,000 C&J Clark International Limited has an Experian Credit Rating of 86 out of 100.
RENTAL VALUE INVESTMENT COMPARABLES The rent passing of 105,000 per annum devalues to a Zone A rent of 75 per sq ft, allowing for A/10 on the First Floor Sales, 5 psf on the First Floor Ancillary and 2.50 per sq ft on the Second Floor Ancillary. It is our opinion that the property is rack rented. The most salient comparable rental evidence can be set out as follows:- a) 93 High Street (Three) Open market letting to Three in November 2017 on a new 10 year lease with a tenant only break option in year 5, at a rent of 50,000 per annum. This reflected a headline Zone A rate of 73 per sq ft and a net Zone A rate of 70 per sq ft. b) 150 High Street (Superdrug) Superdrug undertook a lease renewal in Q4 2017 on their existing store at a rent of 97,500 per annum, reflecting a Zone A rate of 71 per sq ft. a) 95 High Street, Sutton Prime freehold investment sold at auction to a Private Investor in July 2018 for 835,000, reflecting a net initial yield of 5.79%. The property was let to The Carphone Warehouse Limited on a new 5 year lease from May 2018 expiring May 2023, at a rent of 51,000 per annum exclusive. b) 178-180 High Street, Sutton Prime freehold investment sold to a Private Investor in June 2017 for 2.25m, reflecting a net initial yield of 5.5%. The property was let on a 10-year Full Repairing & Insuring lease to Poundland Limited expiring in June 2022, at a rent of 130,000 per annum exclusive, which reflects a Zone A rate of 71 per sq ft. c) 122-124 High Street, Sutton Prime freehold investment sold at auction to a Private Investor in March 2017 for 1.2m, reflecting a net initial yield of 4.36%. The property was let to Vision Express on a lease expiring in February 2026, at a rent of 55,000 per annum exclusive. d) 83-87 High Street, Sutton Prime freehold investment sold to Metro Bank in March 2016 for 3m, reflecting a net initial yield of 4.65%.
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 A copy of the EPC rating and report is available from this office. PROPOSAL Our client is seeking offers in excess of 1,700,000 (One Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an initial yield of 5.82%, assuming standard purchasers costs of 6.42% BROOK WANNOP 020 7637 7100 brookw@jacksoncriss.co.uk For further information, please contact: LIAM JONES 020 7637 7100 liamj@jacksoncriss.co.uk PHILIP HAY 020 7637 7100 phay@jacksoncriss.co.uk 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. 100702. Designed by TCC 06/18.