Prime Securely Let Retail Investment In A Busy East Anglian Town 46/48 Tavern Street, Ipswich +44 (0)20 7317 3700 I klmproperty.co.uk INVESTMENT LEASING INTERNATIONAL LEASE ADVISORY
Investment Considerations Prime pitch New 10 year lease to Poundworld Rebased rent reflecting sub 100 ZA Prominent modern building with return frontage Freehold Price: 2,825,000 reflecting a net initial yield of 6.35% +44 (0)20 7317 3700 I klmproperty.co.uk 2
+44 (0)20 7317 3700 I klmproperty.co.uk 3 UNDER OFFER North PANDORA TIGER
+44 (0)20 7317 3700 I klmproperty.co.uk 4 Location Ipswich is the largest town in Suffolk and the administrative centre for the county. The town is one of the most important shopping destinations in East Anglia, located approximately 84 miles north east of London, 58 miles east of Cambridge and 45 miles south of Norwich. The town has excellent road communications being located at the junction of the A12 and A45 trunk roads. There are rail services to London Liverpool Street with the fastest journey time of approximately 1 hour 12 minutes. Norwich International Airport and Stansted Airport are located approximately 47 miles north and 47 miles west of the town respectively. Ipswich s catchment population is approximately 373,000 and an estimated shopping population of 266,000. This is boosted further by tourism in the summer months. Transport and distribution are key sources of employment due to the proximity of the Port of Ipswich and the town s close proximity to the Port of Felixstowe, the UK s busiest container hub. Retailing in Ipswich Ipswich s primary retail is centred along the pedestrianised stretch of Westgate Street to the west and Tavern Street to the east. In close proximity is the town s principle shopping centre, Tower Ramparts which has recently been refurbished. It comprises 125,000 sq ft anchored by Boots and new stores for River Island and Pandora. Capital & Regional and Drum Property Group, have recently purchased the Butter Market Shopping Centre and are onsite to provide a 12-screen cinema complex as well as six restaurants and a 20,000 sq ft Pure Gym. This will further enhance Ipswich as a retailing location. Situation The property is prominently situated in a prime position on Tavern Street adjacent to Nationwide and opposite Lush, McDonalds, H&M and O2. The property has a return frontage onto St Lawrence Street which provides a busy thoroughfare onto Butter Market where Waterstones, Fat Face, Edinburgh Woollen Mill and Patisserie Valerie are located together with the Butter Market Shopping Centre. Description The property comprises a flagship building with brick elevations under a part pitched and flat asphalt roof. The ground floor provides a predominantly open plan sales area with basement and first floor ancillary accommodation. The property loads from the rear via St Lawrence Street. The building offers flexible accomodation with up to 4.5 m floor to ceiling heights enabling sales at both first and basement levels.
Tenancy The property is let to Poundworld Retail Limited on a new full repairing and insuring lease for 10 years with effect from 20th January 2016 at a current rent of 190,000 per annum subject to an open market rent review at the expiry of the 5th year. The rent is capped at review at 220,262.07 per annum. The basement is demised but is not rentalised. On occupation, rent will become payable. Rental Commentary The passing rent of 190,000 per annum reflects approximately 98 ZA. If one was to apply A/20 to the basement the rent equates to 87 ZA. The lease took time to negotiate and whilst offering a rebased rent, this is arguably reversionary. New leases have since been granted to Tiger, 22 Tavern Street and Pandora, 13 Tavern Street, both equating to rents in excess of 100 ZA. The previous tenant, River Island, was paying 306,000 per annum. +44 (0)20 7317 3700 I klmproperty.co.uk 5
Accommodation Tenure Freehold. VAT Imperial Metric Ground Floor Sales 4,692 sq ft 435.86 sq m Ground Floor ITZA 1,685 units (Basement Ancillary) (4,727 sq ft) (439.11 sq m) First Floor Ancillary 5,158 sq ft 479.15 sq m TOTAL 14,577 SQ FT 1,354.12 SQ M The property is registered for VAT and therefore VAT will be payable on the purchase price or dealt with by way of a TOGC. Covenant Information Poundworld currently trade from more than 280 stores throughout the UK and in 2014 were listed in the Sunday Times as Top Track 250 of the fastest growing companies in the UK. In May 2015 the company was sold to TPG, the US private equity company for 150m. EPC The accounts for Poundworld are as follows: Date of Accounts 31st March 2013 31st March 2014 31st March 2015 Turnover 293,787,000 345,259,000 422,304,000 Pre-tax Profit 1,892,000 5,002,000 13,726,000 Total Net Worth 8,527,000 11,498,000 22,197,000 An EPC has been conducted and is available upon request. Price Our client is seeking offers in excess of 2,825,000 (Two Million Eight Hundred and Twenty Five Thousand Pounds) reflecting a net initial yield of 6.35% assuming purchasers costs of 5.8%. Contacts Ed Gambarini egambarini@klmproperty.co.uk 020 7317 3713 Rupert Guy rguy@klmproperty.co.uk 020 7317 3710 Simon Harvey sharvey@klmproperty.co.uk 020 7317 3719 INVESTMENT LEASING INTERNATIONAL LEASE ADVISORY