Sat Nav Ref: IP33 1DY BURY ST EDMUNDS 35 CORNHILL 100% PRIME RETAIL INVESTMENT LET ON A NEW 10 YEAR LEASE, WITHOUT BREAK
INVESTMENT CONSIDERATIONS Bury St Edmunds is an historic and affluent market town in the heart of Suffolk The town benefits from extremely low competition from competing retail centres New 10 year lease with no breaks to Nero Holdings Limited The property occupies a prime trading position at the corner of Cornhill, which is at the heart of Bury St Edmunds busy market place Freehold Total Current Income: 80,000 per annum Price: 1,370,000 Net Initial Yield: 5.50% 2 Fawcett Mead
A605 A43 A508 A43 A508 A605 A6116 A6 A421 A1 1 A505 A10 A134 A134 Bury St Edmunds A134 A1006 0 0 3 LOCATION Bury St Edmunds is an historic and attractive market town which forms the main commercial centre for West Suffolk. The town is located approximately 26 miles east of Cambridge, 42 miles south-west of Norwich and 80 miles north east of London. A5 A418 A413 A41 A10 A10 A120 A12 A12 A12 As such, Bury St Edmunds benefits from its geographical separation from competing retail centres, and is therefore by far the dominant retail centre for its catchment population. Bury St Edmunds benefits from excellent road connections being located on the dual carriageway, which provides direct access to the M11 and A1 (M) and onto the national motorway network. A404 A40 LONDON A406 A13 A127 The town boasts a regular service to London Kings Cross and Liverpool Street stations with a journey time of approximately 1 hour and 45 minutes. Stanstead International Airport lies within a 40 minute drive to the south, providing a broad range of national and international flights. DEMOGRAPHICS Bury St Edmunds is a sub-regional shopping destination with a population of over 250,000 people and a catchment population of 1,400,000 people within a one hour drive time. Bury St Edmunds benefits from an affluent catchment population with 57% of adults of working age within a 1 hour drive categorised by social grade as either AB or C1 (Promis). This town is ranked 48 of 200 in the most recent PROMIS Affluence Indicator Rank. Total employment has increased in the town at a faster rate than the Retail PROMIS average. The service and financial and business services sectors account for approximately 90% of total employment in the town. Furthermore, the local claimant count was recorded at 1.6% in March 2014, compared with the national claimant count at 2.9% in the same month. 3 Fawcett Mead
RETAILING IN BURY ST EDMUNDS The total weekly consumer spend within a three mile radius of the subject property averages over 9 million. The town saw an increase in footfall of 4% in 2015, compared with a 0.5% drop nationally. The town has a compact central shopping area which comprises an estimated 930,000 sq ft of retail space. The opening of the Arc shopping centre in 2009 has undoubtedly enriched retailing in the area with key tenants such as: Bury St Edmunds town centre faces below average competition from competing retail centres and ranks 1 st out of the 200 PROMIS centres on the PMA Competition Indicator. Cornhill and Butter Market are the primary retail thoroughfares in Bury St Edmunds. On Wednesdays and Saturdays, a market runs with a concentration of stalls in Cornhill Car Park, adjacent to the subject property. 4 Fawcett Mead
Prime corner trading position on Cornhill, at the heart of Bury St Edmunds busy retail core SITUATION The subject property occupies a prominent corner position on the northern end of Cornhill. The property is situated in close proximity to the Market. Nearby occupiers include: DESCRIPTION The property comprises an attractive building of traditional brick construction. It is arranged over basement, ground and first floor with return frontage on Cornhill. ACCOMMODATION The property has the following net internal areas: Floor Use sq m sq ft Ground Sales/Anc 125 1,344 Ground ITZA 826 First Floor Anc 88 951 TOTAL 213 2,295 5 Fawcett Mead
New 10 year lease with no breaks to Nero Holdings Limited TENANCY 35 Cornhill is let to Nero Holdings Limited t/a Caffé Nero for a term of 10 years from 9th June 2017 expiring 8th June 2027.The current passing rent is 80,000 per annum. There is a upward only rent review on the 5th anniversary of the term. TENURE Freehold. COVENANT INFORMATION Nero Holdings Limited (trading as Caffé Nero) is a European style coffee house brand with its headquarters in London. Currently, the company runs more than 825 coffee houses worldwide and is established in eight countries. The company displays one of the strongest CreditSafe ratings of A-95. The last three annual accounts are summarised as follows: 31/05/2016 31/05/2015 31/05/2014 Turnover 248,761,000 233,747,000 215,496,000 Pre Tax Profit 24,237,000 23,797,000 22,538,000 Net Worth 191,791,000 168,194,000 144,677,000 6 Fawcett Mead
UNDER UNDER UNDER UNDER UNDER UNDER UNDER EPC The property has an EPC rating of D-82. VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL Offers sought in excess of 1,370,000 (one million, three hundred and seventy thousand pounds) subject to contract and exclusive of VAT. Assuming standard purchaser s costs at 6.03%, a purchase at this level would reflect a net initial yield of 5.50%. PAPAKIS FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agent: Tom Heptonstall 020 7182 7484 07714 255 245 tom@fawcettmead.co.uk Joe Baio 020 7182 7489 07515 889 649 joe@fawcettmead.co.uk 15-17 Great Portland Street London W1W 8QA www.fawcettmead.co.uk For indicative purposes only. Title plan available upon request. Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 SUBJECT TO CONTRACT