MARLOW: 12 14 HIGH STREET 12 14 HIGH STREET, MARLOW MARLOW 12 14 High Street, Marlow, SL7 1AW
Investment Summary An affluent market town in the heart of the Thames Valley. A well configured retail unit with a self-contained three-bedroom flat above, accessed from the rear. 100% prime pitch on the High Street. Let to Superdrug PLC with approximately 8.5 years unexpired. Retail demand is strong and the rent is, in our opinion, reversionary. Offers in excess of 2,750,000 reflecting a net initial yield of 5.0%, a net equivalent yield of 5.25% and a net reversionary yield of 5.3%, assuming purchaser s costs of 6.4%.
Location Marlow is an attractive and affluent market town located on the River Thames, in the heart of Buckinghamshire, 32 miles west of London, six miles north of Maidenhead and 14 miles north east of Reading. The town benefits from excellent road communications being located approximately two miles south of Junction 4 of the M40 and five miles north of Junction 8 of the M4. Marlow Station provides a regular service to London Paddington via Maidenhead and will benefit from the opening of Crossrail in 2018. To the north of Marlow is High Wycombe, which provides a regular service to London Marylebone with a fastest journey time of 23 minutes. 4 A420 nchester Oxford M3 M40 High Wycombe A33 A31 A4010 Marlow Henley-On-Thames Newbury Basingstoke Reading M3 M4 Windsor A3 A272 Guildford A1(M) A10 M1 M11 London Bromley M25 M23 Crawley A22 A23 A12 Chelmsford A12 A13 Southend M20 M2 Tonbridge M20 A21 Retailing in Marlow Marlow boasts an attractive mix of local, regional and national multiple retailers together with Michelin Star restaurants and an exciting variety of bars. The success of the acclaimed chef Tom Kerridge s Hand & Flowers has resulted in the opening of Coach, which is located nearby on West Street. Restaurants including Cote Brasserie, Bills, Giggling Squid, The Botanist, Bar Baroush, Prezzo and Ask are all represented and new aspirational retailers that have opened recently include The White Company, India Jane, Cath Kidson, Steamer Trading and Crew Clothing.
Situation The property is situated in a 100% prime position on the western side of High Street, close to the junction with West Street and Market Square. Retailers in close proximity include WH Smith, Boots, M&S Simply Food and Phase Eight. Crest Nicholson have submitted plans for the development of 62 dwellings to be known as Portman Gardens to the south west of the property, which via pedestrian walkways, will link to the High Street. This will be a prestigious development of two bed apartments and three, four & five bed houses within a tranquil landscaped environment. Work has commenced on site with completion by September 2017. Description The property comprises a traditionally constructed purpose built mid terrace retail unit with a self-contained ancillary residential flat at first floor level. The building is arranged over two storeys with the ground floor retail unit offering traditional open plan sales accommodation to the front with a separate storage area and office to the rear. An internal staircase from the rear storage area gives access to additional accommodation providing staff welfare facilities to the rear at first floor level. The ground floor retail unit also benefits from rear servicing from Potts Place. The residential flat is located at first floor level fronting the High Street and is accessed from the rear off Potts Place. Accommodation Area ft 2 Area m 2 Ground Floor Sales 2,602 241.7 Ground Floor Ancillary 678 63.0 First Floor Ancillary 373 34.7 ITZA 992 units First floor flat (Three bed) Not measured Not measured Total 3,653 339.4
Tenancy The ground and part first floor is let to Superdrug Stores Plc, on a full repairing and insuring lease from 10th June 2010 for a term of 10 years at a passing rent of 132,500 per annum. There is a further reversionary lease for a term of 5 years expiring 9th June 2025 subject to a rent review on 10th June 2020. The tenant benefits from six months rent free expiring on 24th March 2017. The seller will top this up. The flat is let on an Assured Shorthold Tenancy expiring 7th July 2017 at a rent of 14,424 per annum. The total passing rent is: 146,924 per annum. Rental Commentary The passing rent as agreed at the June 2015 review reflects 126.34 Zone A, adopting A/16 to the ground floor ancillary storage and 5 psf to the first floor staff and storage area. We are aware of new lettings currently under offer which will demonstrate that the passing rent is reversionary. In our opinion the estimated rental value is approximately 155,852 per annum. This assumes 141,428 per annum for the Superdrug, which reflects 135 Zone A and 14,424 per annum for the residential. Covenant Information Superdrug Stores Plc is the UK s 2nd largest beauty and health retailer with over 800 stores. Superdrug was purchased by AS Watson Group in October 2002, one of the world s largest retail businesses. Please see below accounts summary: Date of Accounts 28th Dec 2013 27th Dec 2014 26th Dec 2015 Turnover 1,010,212,000 1,058,047,000 1,105,002,000 Pre-tax Profit 28,982,000 38,044,000 56,842,000 Total Net Worth 122,235,000 138,513,000 50,149,000
Price Offers in excess of 2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds), subject to contract reflecting a net initial yield of 5.0%, a net equivalent yield of 5.25% and a net reversionary yield of 5.3% assuming purchaser s costs of 6.4%. Tenure Freehold. VAT The property is elected for VAT. EPC Retail Unit: Rating C 65 Residential Flat: Rating F 34 Contacts Rupert Guy E: rguy@klmretail.com T: 020 7317 3710 Simon Harvey E: sharvey@klmretail.com T: 020 7317 3719 Ed Gambarini E: egambarini@klmretail.com T: 020 7317 3713 The agents for themselves and for vendors or lessors of properties on this site whose agents they are give notice that: 1: The particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute part of an offer or contract; 2: All descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3: No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this site or properties to be built on this site. September 2016.