CRAWLEY 7-3 THE BROADWAY & -3 QUEENS SQUARE, RH0 DX HIGH STREET RETAIL INVESTMENT & RESIDENTIAL DEVELOPMENT OPPORTUNITY INCORPORATING 25 FLATS
RAWLEY INVESTMENT CONSIDERATIONS Crawley is the commercial centre of West Sussex, located 3 miles south of Central London The property is prominently located on the corner of Queen s Square and The Broadway where nearby tenants include Wilkos, Natwest, Lloyds, Starbucks and Poundland Planning Permission to convert the upper parts into 25 residential apartments including adding a further floor AWULT of 5.09 years to expiry and 3.97 to breaks Current income of 20,000 p.a. Freehold We are instructed to seek offers in excess of 3,800,000 (Three Million Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.5% on the commercial income and approximately,450,000 on the upper parts assuming the usual purchaser s costs. LOCATION Crawley is a popular retailing and business location in the south east of England. The town is located in West Sussex approximately 50 km (3 miles) south of Central London, 34 km (2 miles) north of Brighton and 44km (27 miles) south east of Guildford. The town benefits from excellent transport communications being within 3.7 km (2.6 miles) of the M23, which links directly to the M25. Gatwick Airport is 6.4 km (4.0 miles) to the north and is one of the town s largest employers, generating around 23,500 jobs and a further 20,000 jobs through related activities. Occupiers from the aerospace sector include Virgin Atlantic, British Airways, Thales and The Civil Aviation Authority. There is also a wide range of national and international businesses with presence in the Crawley are including Deloitte, KPMG, PwC, Grant Thornton and Nestlé. LONDON M4 Heathrow M3 WOKING A22 A3 M25 A27 GUILDFORD 3 A24 M23 Gatwick A283 A27 LITTLEHAMPTON CRAWLEY A23 BRIGHTON A264 A272 LEWES A26 A22 A27 M26 GRAVESEND A2 M20 TONBRIDGE ROYAL TUNBRIDGE WELLS GILLINGHAM A228 A229 A2 A249 MAIDSTONE HASTINGS M2 M20 A259 ISLE OF SHEPPEY ASHFORD A2042 A2070 A28 A250 A299 CANTERB FO
7-3 THE BROADWAY & -3 QUEENS SQUARE, RH0 DX DEMOGRAPHICS Crawley is an expanding commuter town with a resident population of 06,597 and an extensive primary catchment area of 50,000 which is above the sub regional centre average (ranking the town 38 out of the PROMIS centres). The town is predicted to see above average growth in population over the next five years. In 20 the Crawley area contained a significantly above average proportion of adults of working age categorised within the most affluent AB social group.* COMMUNICATIONS BY TRAIN Gatwick Airport Clapham Junction Brighton London Victoria 8 minutes 37 minutes 4 minutes 42 minutes BY CAR M23 M25 Brighton Guildford 8 minutes 27 minutes 37 minutes 46 minutes AIRPORT DRIVE TIMES London Gatwick London Heathrow London City London Luton 7 minutes 52 minutes 66 minutes 76 minutes *20 Census London Bridge 52 minutes Central London 80 minutes London Stansted 82 minutes
BLAZIAN WAR HAMMER RETAILING IN CRAWLEY Town centre retail floor space in Crawley is estimated at 0.96 million sq ft. This is concentrated in two main locations, an open air pedestrianised precinct including Queen s Square, Queensway, The Pavilion, The Martlets and Broad Walk, and County Mall, a large covered shopping centre located to the south of this area. INSPIRED HOMES SCHEME Crawley currently ranks 30 in terms of the volume of comparison retail spend available in the catchment area and is forecast to see above average percentage growth in the available pool of comparison spending over the next 5 years. Vacancy in the town centre stands at 9.3% of units, well below the PROMIS average.* Prime rents in Crawley currently stand at 5 psf Zone A remaining 7.9% below the pre-recession peak of 40 psf Zone A. These prime rents have been set in deals on the lower level of the County Mall. Rents on Queen s Square are considered to stand in the region of 50-55 psf Zone A. Rents on The Broadway are understood to stand at approximately 35-40 psf Zone A. *PROMIS Crown Copyright, ES 0000406. For identification purposes only.
2 2 3 3 22 7-3 THE BROADWAY & -3 QUEENS SQUARE, RH0 DX Bank 24 26 34 38 36 5 El Sub Sta Sta Shelter 4 to 26 7 8 9 0 Posts Ban Crown Copyright, ES 0000406. For identification purposes only. CRAWLEY A REGENERATION CENTRE Crawley town centre is set for an ambitious programme of regeneration enhancing the town as a place to live, work and invest in. Inspired Homes are undertaking a major redevelopment of a vacant town centre site on the Broadway providing new retail units with 78 flats above. Planning was approved by Crawley Borough Council in January with building to commence imminently. Westrock is currently converting the 30,000 sq ft Babcock House, located on The Boulevard, into 85 apartments. The flats are being built on a build-to-rent basis and with construction expected to conclude in Autumn 206. Crawley Borough Council and West Sussex County Council are investing 3m into revitalising Queens Square creating a high quality, inviting and enjoyable public space. The aim of the investment is to encourage new and existing building owners and businesses to invest in the area acting as a catalyst for wider regeneration. Work is expected to be completed by the end of 206. Major plans are in place to regenerate the area around Crawley railway station. The Arora Group plan to work with Crawley Borough Council, West Sussex County Council and other stakeholders to improve this area of the town centre. Plans include redeveloping Overline House and nearby car parks in a residential-led scheme which also include a new train station with coffee shop, retail space, a start-up business hub and networking space alongside an attractive station plaza. SITUATION The property occupies a prominent corner position at the junction of The Broadway and the pedestrianised Queen s Square. The Broadway hosts a main bus route for the town centre and as a result the property benefits from strong pedestrian flow. Nearby traders include Wilkos, Natwest, Lloyds, Coral, Savers, Rush, Starbucks and Poundland. DESCRIPTION The property comprises a three storey building comprising retail accommodation on the ground floor and office and ancillary accommodation at first and second floor level. The ground floor is split into five different units. Two of these units have internal stairways leading to ancillary retail floor space. Two of the units have stairways accessed directly from The Broadway providing access to separate upper floor office accommodation. The property benefits from rear servicing access via a shared service yard which is accessed via The Boulevard.
PLANNING & RESIDENTIAL MARKET COMMENTARY Crawley Borough Council approved plans (Ref: CR/205/0694/FUL) in February 206 for the conversion and alteration of the upper parts to residential. The proposal retains the retail on the ground floor and replaces ancillary retail space and office area on the first and second floors with residential accommodation. The scheme also provides an additional storey of residential apartments. The scheme will create 25 new apartments consisting of 4 x bedroom apartments and x 2 bedroom apartments with access being directly off The Broadway. The plans allow for the part reconfiguration of the retail accommodation which will increase the rentable space on the Broadway units. There is no affordable contribution as part of the current planning permission. Crawley is a well sought after commuter town benefiting from its proximity to Gatwick airport and the employment it generates and its good rail links to Central London. The population of Crawley has been rising significantly over the past three decades increasing by circa 22% over the last 20 years. This growth is expected to continue and Crawley borough council has taken a proactive approach to increasing the number of residential units in the area. The local council is committed to providing wider housing opportunity, choice and a better mix in terms of size, type and location of housing. Looking specifically at the town centre residential market the Inspired Homes scheme on the Broadway is currently being sold off plan. One bed and two bed flats are currently being marketed at 24,950 and 299,950 respectively reflecting 450 psf. Construction is set to be complete in 207. PROPOSED RESIDENTIAL SCHEDULE OF AREAS: First Floor Flat Number Number of Beds GIA (sqm) GIA (sq ft) A 2 65.0 700 B 4.7 449 C 42.2 454 D 4.9 45 E 4.2 443 F 2 64. 690 G 2 64. 690 H 5. 550 J 57.4 68 Total 468.7 5,045 Further details are available upon request. Second Floor Flat Number Number of Beds GIA (sqm) GIA (sq ft) 2A 2 65.0 700 2B 4.7 449 2C 42.3 455 2D 4.9 45 2E 4.2 443 2F 2 64.3 692 2G 2 64.0 689 2H 5.0 549 2J 57.5 69 Total 468.9 5,047 Third Floor Flat Number Number of Beds GIA (sqm) GIA (sq ft) 3A 2 70.0 753 3B 2 72.3 778 3C 2 64.3 692 3D 2 64.0 689 3E 2 64. 690 3F 44. 475 3G 57.0 64 Total 435.8 4,69
7-3 THE BROADWAY & -3 QUEENS SQUARE, RH0 DX TENANCY SCHEDULE Address Tenant Floor Area (sq m) -3 Queens Square Maplin Electronics Ltd G 2 276.6 20.0 34.0 Area (sq ft) 2,977,292*,442* Area (sq ft ITZA),84 Lease Start Lease Expiry (Break) Next Review Rent Rent psf (ITZA) 4/04/09 3/04/9 00,000 49.90 7 The Broadway Mohan Singh Dhawan G 86.6 932 607 22/03/3 2/03/23 22/03/8 28,000 46.3 7a The Broadway Vacant 2 64.7 58.3 696 627 9 The Broadway Fearless Hawks Ltd G 77. 830 522 29/05/5 28/05/25 29/05/20 23,000 44.06 9a The Broadway Vacant 2 The Broadway Games Workshop Ltd G 78.0 840* 502 26//4 59. 58.5 637 629 25//24 (26//9) 26//9 20,000 39.84 a The Broadway RCCG Living Faith Assembly 2 58.0 624 8/02/6 7/02/9 (2 months anytime mutual break option) 6,000 3 The Broadway Scope 3a The Broadway Randstad Education Ltd G 2 74.8 57.2 209.0 27.0 805 66 2,250* 2,336* 539 3/05/3 3/05/23 (3/05/8) 3/05/8 24,000 40.53 28/06/0 Rolling Over 9,000 Total 628.9 7,534 20,000 *Areas provided by vendor. VOA Zones used. COVENANT Maplin Electronics is the UK s biggest specialist retailer of consumer electronics with over 20 stores across. Maplin Electronics Ltd in March 205 reported a turnover of 236,252,000, a pre-tax profit of 3,254,000 and a total net worth of 28,97,000. Games Workshop is the largest hobby miniatures company in the world with direct sales operations in the UK, The United States, Australia, China and Japan. Products are sold through their own chain of over 400 retail stores worldwide. Games Workshop Ltd in May 205 reported a turnover of 89,50,000, a pre-tax profit of 5,207,000 and a total net worth of 26,73,000. Randstad is the second largest HR services provider in the world which has been involved in the education sector for over 20 years. Ranstad Education Ltd reported in December 204 a turnover of 53,045,000, a pre-tax profit of 4,724,000 and a total net worth of 48,493,000. SCOPE is a disability charity working with disabled people and their families in England and Wales. In March 205 SCOPE reported a pre-tax loss of 3,854,000 and a total net worth of 26,626,000. TENURE Freehold EPCs More information is available upon request. VAT We understand the property is elected for VAT which will be chargeable on the purchase price. We would expect the transaction to be treated as a transfer of a going concern (TOGC).
PROPOSAL We are instructed to seek offers in excess of 3,800,000 (Three Million Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.5% on the commercial income and approximately,450,000 on the upper parts assuming the usual purchaser s costs. FOR FURTHER INFORMATION OR TO MAKE ARRANGEMENTS FOR VIEWING PLEASE CONTACT: Alex Butler 020 7543 6722 alex.butler@allsop.co.uk Jonathan Butcher 020 7543 6755 jonathan.butcher@allsop.co.uk Michael Linane 020 7344 2623 michael.linane@allsop.co.uk www.allsop.co.uk Misrepresentation Act:. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, 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 vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its 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 vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor 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. Design: CommandD www.commandhq.co.uk 04.6