Prime Reversionary Freehold Retail Investment Royal Tunbridge Wells 119 & 11/13 Mount Pleasant Road, TN1 1QR 119-13mountpleasantroad.co.uk
Investment Summary Royal Tunbridge Wells is an affluent spa town in south east England Prominent, corner position overlooking the town s shopping centre entrance and main fashion pitch Freehold WAULT of 7.5 years Residential redevelopment opportunity for part of upper floors, subject to planning Total net income of 0,66 per annum An ERV of 39,000 per annum Seeking offers in excess of 3,500,000 (Three Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5.47% and a reversionary yield of 6.45%, allowing for purchasers costs of 5.8%. Twickenham London Croydon M5 M6 M0 Tonbridge Rochester Maidstone M M55 Isle Of Sheppey Canterbury Location The famous Kent spa town of Royal Tunbridge Wells boasts not only one of the most affluent catchment populations in the UK but is also a strong retail centre. Tunbridge Wells is approximately 31 miles south east of London, 19 miles east of Crawley and 16 miles south west of Maidstone. By road the town is well connected via the A1, which links Tunbridge Wells northwards to Junction 5 of the M5 and through to London and the wider national motorway network, and southwards to Hastings. Also to the south, the A6 connects the town with Brighton and Eastbourne. Rail links are also good with fastest journey times in to central London of approximately 55 minutes, making Tunbridge Wells a popular commuter town. Crawley TUNBRIDGE WELLS Ashford London Gatwick Airport is 5 miles west of the town and is the UK s second busiest airport providing domestic and international flights. The town is an important decentralised office location. Major occupiers in the town include MCL Group, AXA PPP and Allianz Cornhill Insurance.
Mount Pleasant Road Situation The asset is located in an extremely prominent corner position where Mount Pleasant Road meets Calverley Road. From the Pret A Manger unit you effectively look down the fashion dominated and pedestrianised Calverley Road. In addition, just opposite is the main entrance to the Royal Victoria Place Shopping Centre, anchored by Fenwick Department Store and Marks & Spencer and provides one of the main car parks for the town. The property benefits from high footfall generated by national multiples in close proximity including Top Shop, New Look, Fat Face and Boots. Hermes are proposing to spend 70m on refurbishing and expanding Royal Victoria Place with an 8 screen cinema and new premises for fashion retailers. This in tandem with the old cinema site development on Mount Pleasant Road which should see new restaurants, shops, a hotel and a gym, will further strengthen the town s retail and leisure offer, increasing shopper and tourist trips. 3 1 7 LB 3 5 1 FIVE WAYS 8 6 4 5 7 to 11 Royal Chase Mount Ephraim Church Road Church Road London Road A6 Lime Hill Road Dudley Road York Road Grosvenor Road Hanover Road Tunbridge Wells Train Station Upper Grosvenor Road Calverley Road Monson R o a d Crescent Road Gooods Station Road Victoria Road Royal Victoria Place Shopping Centre Grove Hill Road Garden Road Camden Road Camden Road Calverley Grounds Calverley Park Lansdown Road Calverley Road Carlton Road Prospect Road 0m 5m 10m 15m Webster Property Description 1 03 Clock Tower 109 111 105 107 119 117 113 115 11 to 13 CR ED and Ward Bdy The properties comprise an attractive part three, part four storey, building providing well configured retail trading on ground with ancillary accommodation on both first floor and basement. 119 Mount Pleasant Road provides further ancillary space on the second floor whilst 11/13 Mount Pleasant Road, which benefits from a significant return frontage, has separate access to the upper floors, offering office accommodation on 1st and nd floors. The units are located within the Royal Tunbridge Wells Conservation Area. Tunnel MOUNT PLEASANT ROAD Shelter 90 to 9 88 96 94 8 6 The Opera House (PH) Sat Nav TN1 1QR Tenure Freehold
Accommodation Schedule The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a Net Internal basis. 119 Mount Pleasant Road sq ft sq m Ground Floor ITZA 1,74 118.4 619 11/13 Mount Pleasant Road sq ft sq m,69 10.8 1,89 Ground Anc 87 8.1 Basement 868 80.6 1,317 1.4 1st Floor 861 80.0,156 00.3 nd Floor 410 38.1,171 01.7 3,413 8,000 743. Total 317.1 In addition there is a 3rd floor at 11/13 Mount Pleasant Road which is currently unused comprising of circa 680 sq ft (unmeasured). This space does currently attract a rates shortfall of 4,88 per annum. CLOCK TOWER
Tenancies Mount Pleasant Road Tenant Lease Start Lease Expiry Rent Review Rent Rates Shortfall Comments EPC 119 Entire Building Specsavers Optical Superstores Ltd 16/1/009 15/1/019 65,500 Rent increased by,500 pa at 014 review. D93 11/13 Ground & Basement Pret A Manger (Europe) Ltd 5/09/01 4/09/07 5/09/017 100,000 C63 11/13 First Floor Specsavers Optical Superstores Ltd 16/1/009 15/1/019,000 D85 11/13 Second Floor Go Train Ltd 06/07/011 05/07/016 0,000 The landlord will top up the service charge shortfall for the remainder of the term. Lease is outside the act. E119 11/13 Third Floor Vacant 4,838 E119 The total net rent for the asset is 0,66 per annum Rental Analysis and Retail Commentary We have analysed the increased Specsavers rent, following the recent rent review, to show 97 psf Zone A, applying A/0 on the first floor, A/40 on the second floor and 1 psf for the unused basement. The Pret A Manger rent reflects 73 psf Zone A, applying A/0 to its basement ancillary space and 5 psf to ground floor ancillary. The offices rents equate to approximately 10 psf. Prime rents in Tunbridge Wells on Calverley Road are currently circa 160 Zone A supported by the lease renewal to New Look at 6 Calverley Road. Metro Bank did take a refurbished /4 Calverley Road (just opposite the subject property) at a current pitch high 184 Zone A in September 014. Poundland have recently taken a lease at 10-16 Grosvenor Road at a rent we are advised, reflects 130 Zone A. Rental Value Based on the recent uplift to Specsavers we would apply 97 Zone A as an ERV to the Pret A Manger unit which is arguably better positioned and configured. This provides an ERV of 131,500 per annum (compared to the passing rent of 100,000 per annum) for that unit, and a total ERV of 39,000 per annum. Covenants Pret a Manger The first Pret a Manger opened in 1986 and they currently trade from over 350 units in the UK, USA, Hong Kong and France. The business has been extremely successful in busy urban locations with its offer promising only natural ingredients, organic coffee and everything being made on site. For the year ending nd January 014, Pret A Manger (Europe) Limited reported a turnover of 404.1m, pre-tax profits of 41.m and a net worth of 1.9m. They have a D&B rating of 5A 1. Specsavers Specsavers, the established high street opticians, is a partnership employing over 30,000 people with over 1,700 locally run businesses and each store being part-owned and managed by its own directors. For the year ending 8th February 014 Specsavers Optical Superstores Limited reported a turnover of 39.6m, pre-tax profits of 18.5m and a net worth of 73.8m. They have a D&B rating of 5A 1. Go Train Ltd Go Train deliver learning and support in IT skills, customer service skills, maths, English and work skills to help people into work. The company operates 16 sites across Kent, Essex and London. For the year ending 31st October 014 Go Train Limited reported a net worth of 474,000.
VAT The purchase of the property will be subject to VAT and it is anticipated that the sale will be dealt with by means of a Transfer of a Going Concern Asset Management Opportunities Implement/agree an uplift with Pret a Manger at the next rent review Re-gear the lease to Go Train Ltd at expiry and seek to increase the office rent from the current low base ( 10psf) Explore the possibility of converting the upper parts of 11/13 Mount Pleasant Road to residential subject to necessary planning consents & potentially incorporate the 3rd floor loft space above 11/13 Mount Pleasant Road Proposal We are seeking offers in excess of 3,500,000 (Three Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5.47% and a reversionary yield of 6.45%, allowing for purchasers costs of 5.8%. Further Information James Dunlop James Pearson Alex Matthews For further information please contact: 00 790 1611 james.dunlop@sgcommercial.co.uk 00 7647 4817 james.pearson@gcw.co.uk 00 7647 487 alex.matthews@gcw.co.uk Misrepresentation Act 1967: SG Commercial LLP and Gooch Cunliffe Whale LLP, for themselves and for the vendor (s) of this property whose agents they are, give notice that: i These particulars do not constitute, nor constitute any part of, an offer or contract. ii None of these statements contained in these particulars as to the property are to be relied on as statements or representations of fact. iii Any intending purchaser must satisfy him or herself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. iv The vendor (s) or lessor (s) do not make or give, and neither SG Commercial LLP or Gooch Cunliffe Whale LLP nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989. Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescriptions Act 1991. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Nov 015.