149-150 FRIAR STREET & 2-4 QUEEN VICTORIA STREET READING RG1 1TG PRIME MIXED USE INVESTMENT WITH RESIDENTIAL DEVELOPMENT CONSENT
INVESTMENT SUMMARY > A rare prominent freehold mixed use block located in a major south east town set to benefit from major infrastructure improvement > The attractive listed Victorian property comprises ground floor retail with the upper parts benefitting from planning permission for residential use comprising 7 x 2 bed units > Situated on a major retail thoroughfare in Reading town centre that links the train station with Broad Street and the Oracle Shopping Centre > Freehold > Total income 135,000 per annum and a WAULT of 8.24 years to expiry and 4.72 years to break > Offers sought in excess of 3,000,000 (Three Million Pounds) for the Freehold interest in the property subject to contract and exclusive of VAT. A purchase at this level will reflect a NIY of 6.25% and 195 per sq ft on the upper floors, after purchaser s costs of 6.45%
LOCATION Reading is a dominant regional retailing destination and the largest economic and commercial centre in the South East outside of London, located within Berkshire in the Thames Valley. The town is located 41 miles (66 km) west of Central London, 25 miles (40 km) south of Oxford and 18 miles (29 km) north of Basingstoke. Reading benefits from excellent transport links. It is located at the eastern end of the M4 corridor adjacent to junction 10, 11 and 12 of the M4 which provides access to the M25 and wider UK motorway network. The A33 runs north from the M4 and provides access to the town centre. Heathrow Airport is located 26 miles (42 km) east of Reading and Gatwick Airport is located 56 miles (90 km) to the south east, both provide domestic and international flights. Reading Railway Station is less than a 5 minute (0.1 miles) walk from the property. It is one of the busiest transport hubs in the UK with over 20 million passengers a year. In 2014 it underwent a major upgrade at a cost of 895 million. The station connects Reading to London Paddington, Birmingham and Cardiff with a direct service to Paddington every 10 minutes with a fastest journey time of 25 minutes. Network Rail is electrifying the Great Western Main Line between London, Oxford, Bristol and Cardiff which will improve journey times and capacity of this service. The Elizabeth Line (Crossrail) will be operational from Reading Station as of December 2019, allowing passengers to travel directly into Central London and beyond to a total of 40 stations, without the need to change at Paddington. There will be up to 16 trains per hour to London with journey times set out below. A429 A40 SWINDON A346 A338 A303 SALISBURY A420 A44 M4 ANDOVER A303 M40 OXFORD A343 A343 M3 WINCHESTER LONDON OXFORD NEWBURY A339 BASINGSTOKE AYLESBURY PETERSFIELD ALTON M3 FARNHAM BRACKNELL M1 DUNSTABLE HEMEL HEMPSTEAD AMERSHAM M40 HIGH M1 WYCOMBE M25 WATFORD MARLOW HENLEY MAIDENHEAD -ON-THAMES SLOUGH WEST DRAYTON M4 A31 A41 READING A33 A322 A3 A5 SOUTH DOWNS NATIONAL PARK M25 A3 GUILDFORD A272 LUTON ST ALBANS HEATHROW LONDON LUTON A24 CRAWLEY A1 (M) A414 HATFIELD M25 LONDON GATWICK REIGATE A23 M23 BRISTOL PARKWAY 70 MINS SWINDON 30 MINS DIDCOT 15 MINS READING MAIDENHEAD 15 MINS SLOUGH 20 MINS LONDON PADDINGTON 28 MINS PADDINGTON 50 MINS TOTTENHAM COURT ROAD 55 MINS LIVERPOOL STREET 61 MINS STRATFORD 69 MINS SHENFIELD 102 MINS READING MAIDENHEAD 12 MINS ELIZABETH LINE (DUE 2019) GREAT WESTERN LINE SLOUGH 21 MIN HEATHROW AIRPORT 38 MINS EALING BROADWAY 42 MINS BOND STREET 53 MINS FARRINGDON 58 MINS DLR CANARY WHARF ABBEY WOOD 80 MINS
LOCATION (CONT.) Reading has a strong economy and been the hub of economic growth and investment in the Thames Valley. It was named the best place to live and work in PwC s Good Growth for Cities Index of the 36 largest economic areas in the UK. Its strategic location attracts a highly affluent and educated workforce supported by world-class universities such as the University of Reading and Oxford University. The service sector accounts for 72% of employment, significantly above average for comparable retail centres and Professional & Business Services and Finance sectors account for nearly 20%. It is home to the European and Global Headquarters of more than 200 Fortune 500 companies as well as a high concentration FTSE 100 companies including Deloitte, PwC, EY, Prudential, Huawei, Microsoft, Symantec, Pepsico, P&G, Oracle, Cisco and Gillette. Whilst the town s proximity to London means that there are a high number of commuters to the capital within the catchment, the town has a positive daily inward commuter flow. This is largely due to Reading s well established office market. Reading has benefited from a host of inward investment including major infrastructural improvements and proposed major regeneration schemes such Station Hill, a 3.5 acre site in close proximity to the train station and subject property and includes 930,000 sq ft of offices, 150,000 sq ft of retail and 475 residential units. In recent months Reading has seen further growth of the City Centre with the success of M&G s Fordbury Place with Building No.1 comprising 185,000 sq ft is now fully let to Scottish and Southern Energy (SSE) and Thames Tower located adjacent to the Reading Station attracting new occupiers including HSBC, BDO, Austin Fraser and Objective Corporation. Similar success can also been seen in the surrounding business parks, Green Park, Winnersh Triangle and Thames Valley Park. Green Park currently has an occupancy rate of over 92% following some new lettings and expansion deals to existing occupiers Proofpoint and Datto.
19 22 20 6 21 17 7 1 8 18 3 16 2 4 12 9 5 10 11 15 14 13 KEY 1. Subject Property 2. Queen Victoria Street 3. Friar Street 4. Hotel IBIS 5. Hotel Novotel 6. The Town Hall 7. Reading County Court 8. Marks & Spencer 9. Primark 10. John Lewis 11. Broad Street 12. The Oracle 13. Broad Street Mall 14. West Street 15. Sainsburys 16. NCP Car Park 17. Thames Tower 18. Station Hill Development (Shaded Yellow) 19. Forbury Place 20. Forbury Square 21. Reading Station 22. Reading Station Multi Storey Parking For Indicative purposes only.
N DEMOGRAPHICS Reading has a total population within its primary catchment of 698,000 with an estimated shopping population of 401,000 (17th of PROMIS centre) and its dominance draws people from competing centres such as Swindon, Slough and Newbury. Within a 30 minute drive, there is c. 4bn of retail and leisure spend per annum. Reading has a significantly above average proportion of its population within the most affluent AB social group whilst there is an under-representation of the least affluent C2 and D&E categories. Reading is projected to see above average growth in population over the period 2016-2021. SITUATION Friar Street runs parallel to Broad Street and Queen Victoria Street connects the two streets. Its location between the town centre and Reading Station allows the property to benefit significant footfall which is set to be boosted by the delivery of Crossrail and Station Hill scheme. Nearby occupies include Caffè Nero, Greggs, Rush Hair, Starbucks and Ladbrokes. ITSU The property occupies a prominent corner site in a strong secondary pitch at the junction of the pedestrianised Queen Victoria Street and Friar Street.
DESCRIPTION The property comprises an attractive five storey Grade II listed block benefitting from dual aspect onto Queen Victoria Street and Friar Street. The accommodation is provided through four well configured ground floor retail units with ancillary basement space and vacant offices on the upper floors benefitting from separate accesses. The property benefits from planning permission (ref. 170211) for alterations associated with conversion of office accommodation at first, second and third floors to create 7x2 bed residential units with part of ground floor and basement for ancillary storage space. Further information is available on request.
RAD QUEEN VICTORIA STREET ACCOMMODATION Chimney H1100 04 RAD 04 04 RAD RAD RAD H108004 T14 Master Bedroom T05 Bedroom T04 Bedroom T03 Kitchen/ Dining The current accommodation provides the following NIA areas: DT-13 03 Description Floor Use NIA (Sq ft) ITZA 2 Queen Victoria Street Ground Retail 169 169 Chimney 02 T15 Bathroom DT-15 T16 Shower T13 Stairwell 01 DT-13.1 T13.1 Store 05 T05.1 Bathroom DT-05.1 DT-05 DT-04 T02 Hall Flat 3A 62.7sqm DT-02 06 DT-03 Chimney FRIAR STREET 4 Queen Victoria Street Ground Retail 257 246 Basement Storage 285 149 Friar Street Ground Retail 524 459 Basement Storage 593 150 Friar Street Ground Retail 789 431 Basement Storage 242 Total 2,859 149-150 Friar Street Third Office 1,229 - Second Office 1,414 - Lightwell NEW RAD RAD RAD RAD T09 Bedroom Chimney T11 Bedroom DT-11 DT-09 10 RAD T06 Lobby 67sqm T10 Hall DT-10 DT-11.1 T11.1 Bathroom 07 Flat 3B DT-01 fd30 DT-12 T01 Stairwell 09 08 T12 Kitchen / Living RAD RAD H75 THIRD FL to a acc Lob buil NOTES 1. Exis 2. New 3. New 4. Dra 5. New 6. Infil 7. New 8. Exis 9. Infil 10. New First Office 1,376 - Basement Office 277-2-4 Queen Victoria Street Third Office 241 - Second Office 243-1:100 SCALE BAR First Office 238 - Typical floor plan. For indicative purposes only. 0 4 6 8 2 10m General N Existing s GypFloor conversio meet the r floors betw order to c be taken u are under Legend: Ne Pa Total 5,018 The proposed net sales areas attached to the planning permission are as follows: Spratley Studios Ltd. Isis House 43 Station Road Henley-on-Thames Oxon RG9 1AT Telephone 01491 411277 Fax 01491 411383 design@spratley.co.uk www.spratley.co.uk Notes: Revision Description Date Issued Drawn By Checked By A Issued for planning. 01/01/2017 VS RK Project: Queen Victoria S 2-4 Queen Victo Reading, RG1 1E Unit Floor Sq ft spratley studios Issued only for purpose indicated. This drawing to be read in conjunction with all Consultants information. All dimensions be checked on site. Do not scale. This drawing is copyright. Client: Catalyst Capital Status: Planning Town House A First/Second/Third floor 950 Flat 1A First floor 689 Flat 1B First floor 689 Flat 2A Second floor 700 Flat 2B Second floor 710 Flat 3A Third floor 675 Flat 3B Third floor 721 Total 5,134
TENURE Freehold. TENANCY The property is let to 4 tenants on 4 leases with a WAULT of 8.24 years to expiry and 4.72 years to break, producing a total income of 135,000 per annum. Address Size (Sq ft) Tenant Lease Start Rent Review Break Lease Expiry Rent 149 Friar Street 1,031 SSR Photo Ltd t/a Snappy Snaps (Company no. 05036375) Guarantor HZK Media Limited (Company no. 07364695) 01/06/2013 01/06/2018-30/06/2022 40,000 150 Friar Street 1,117 2 Queen Victoria Street 169 4 Queen Victoria Street 246 Sta Travel (Company no.01263330) Phone Spa Ltd (Company no. 10646308) (6 months rent deposit) Ballarino Ltd (Company no. 05277313) Guarantor Salvatore Ballarino and Guiseppina Ballerino 29/09/2017 29/09/2022 29/09/2022 28/09/2027 39,500 20/10/2017 20/07/2022 20/07/2022 19/07/2027 25,500 11/03/2017 11/03/2022 11/03/2022 10/03/2027 30,000 Total 135,000
READING RETAIL Reading is one of the premier shopping destinations in the south east outside London with 1.83m sq ft of town centre retail floor space (10th of PROMIS centre). The pedestrianised Broad Street is the prime shopping street in the town centre, immediately to the south of the property, and is home to occupiers including John Lewis, Marks & Spencer s, Primark, Next, GAP, Boots and H&M. Broad Street runs between Reading s two covered shopping centre schemes. The Oracle, a 700,000 sq ft prime retail and leisure scheme with 2,300 space car park, is located at the eastern end of Broad Street and 5 minute walk (0.2 miles) from the subject property. It is anchored by Debenhams and House of Fraser with key occupiers including Apple, Zara, Nando s, Jamie s Italian and Vue Cinema. To the western end is Broad Street Mall, a 400,000 sq ft secondary scheme with occupiers such as TK Maxx, New Look and Wilko s. Prime rents in Reading stand at 245 Zone A within The Oracle and 210 Zone A on the traditional prime pitch at Broad Street, below the historical peak of 280 Zone A. Queen Victoria Street commands the highest Zone A rents for secondary pitches within the town centre in excess of 100 Zone A. RESIDENTIAL The Reading housing market has been exceptionally strong in recent years, outperforming the wider South East. Average house prices have increased 50% since 2011 and significant growth in the past 3 years attributed to the announcement that Crossrail will be extended to Reading with further capital and rental growth anticipated. Despite the high rate of growth Reading still offers value for money in comparison to other markets in the region such as Windsor (46% discount), Guildford (39%), Woking (31%) and Bracknell Forest (14%). Reading is attracting people from higher value areas that are looking for affordability as well as good schools, excellent transport links and a vibrant employment market. We consider town centre residential values to be in the order of 600 per sq ft.
EPC Address Description Rating 2 Queen Victoria Street Retail E117 4 Queen Victoria Street First to Third floor Offices D99 4 Queen Victoria Street Retail G226 149 Friar Street Retail E101 149-150 Friar Street Offices D76 150 Friar Street Retail D76 VAT We understand the property has been elected for VAT and therefore VAT will be chargeable on the purchase price. We anticipate that the transaction will be treated as a transfer of a going concern (TOGC). PROPOSAL FURTHER INFORMATION Offers sought in excess of 3,000,000 (Three Million Pounds) for the Freehold interest in the property subject to contract and exclusive of VAT. A purchase at this level will reflect a NIY of 6.25% and 195 per sq ft on the upper floors, after purchaser s costs of 6.45%. For further information or to arrange an inspection, please contact the sole agents: Mathew Rogers 020 7911 2726 mathew.rogers@gva.co.uk Mark Frampton 020 7911 2181 mark.frampton@gva.co.uk 65 Gresham Street London EC2V 7NQ www.gva.co.uk/12325 GVA is the trading name of GVA Grimley Ltd an Apleona company. 2017 GVA. GVA hereby gives notice that the information provided (either for itself, for any joint agents or for the vendors lessors of this property whose agent GVA is) in this brochure is provided on the following conditions: (1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. (2) All descriptions, dimensions and references to this property s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. (3) No person in the employment of GVA, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure. (4) All prices quoted are exclusive of VAT. (5) GVA shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by GVA. GVA: October 2017 Produced by Barbican Studio 020 7634 9573