16 18 1 1 - dunitzandco.com

16 – 18 HIGH STREET / CULVER STREET WEST, COLCHESTER, ESSEX, CO1 1DA Secure South East Retail Investment100% Prime Pitch

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INVESTMENT SUMMARY

• Colchester is an affluent London commuter town located approximately 60 miles (97 km) north east of Central London.

• 100% prime pitch.

• 2 of only 8 dual fronted shops with active frontages onto High Street and Culver Street West.

• The units are located opposite Fenwick, adjacent to Next and close to retailers including Debenhams, Primark, H&M, Marks & Spencer, GAP and Metro Bank.

• The properties provide two adjacent buildings with sales areas at ground level and ancillary accommodation on the upper floors with one shop benefitting from a basement.

• One shop has self-contained upper parts, with the potential to create another self-contained access point for the other shop, subject to planning permission.

• Let to Greggs Plc and Blacks Outdoor Retail Ltd with a WAULT of 4.75 years.

• Total Rent passing of £254,250 per annum.

• Freehold.

• Seeking offers in excess of £3,820,000 subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.25%, after allowing for acquisition costs of 6.53%.


LOCATION Colchester is an affluent and popular London commuter town and is the second largest conurbation in Essex. This regional retailing centre is located approximately 60 miles (97 km) north east of London, 19 miles (31 km) south west of Ipswich and 24 miles (39 km) north east of Chelmsford.

Colchester is strategically located on the A12 dual carriageway which in turn provides direct access to London, the M25 and M11 motorways. Colchester is served by three railway stations, Colchester Town, Hythe and the main Colchester Railway Station which provides regular services to London Liverpool Street in approximately 45 minutes. The railway also provides convenient access to, Chelmsford, Ipswich and Clacton-on-Sea. Stanstead airport is approximately 30 miles (48 km) to the west of Colchester and Southend airport is approximately 40 miles (64 km) south east of the town. The international ports of Harwich and Felixstowe are approximately 20 miles (32 km) and 26 miles (42 km) respectively, to the east of Colchester.

COLCHESTER

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DEMOGRAPHICS & CATCHMENTColchester has a resident population of approximately 120,000 people, a catchment population of approximately 457,000 which stretches to the south west towns of Sudbury and Halstead and to the east coast towns of Harwich and Clacton-on-Sea.

The town is set to benefit from approximately 19,000 new homes and 14,000 new jobs by 2021 according to the regional spatial structural plan for the east of England.

The University of Essex and other higher education facilities in Colchester account for approximately 33,000 students and Colchester is home to one of the largest army bases in the country.

Colchester attracts over 5 million tourists every year and according to the Estates Gazette annual tourist spend is over £310 million per annum.

Major employers in the town include the NHS, University of Essex, BT, Hutton Construction, Anglian Crown, Informa UK, Acevielle Central and Hiscox.

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SITUATION

The property is situated in a prime pitch within the retail core of Colchester town centre. The units benefit from having dual frontages onto both High Street and Culver Street West, allowing each individual shop to attract trade from two separate prime pitches. The properties are 2 of only 8 retail units with dual frontages onto High Street and Culver Street West.

On High Street the units are situated directly opposite Fenwick’s department store which has recently undergone a major £35 million remodelling with the floorspace being increased by 50% to approximately 120,000 sq ft (11,148.36 sq m). The units are adjacent to Next and close to Marks & Spencer, Metro Bank and Superdrug. Several high street banks, various national food operators and Colchester Town Hall are also located close by. One of the main Park & Ride stops in the town centre is situated on the other side of High Street approximately 50 metres from the property.

Culver Street is an extremely busy thoroughfare which links Lion Walk and Culver Square Shopping centres. On Culver Street West the units are near to Café Nero, Debenhams, GAP, Accessorize, H&M, TK Maxx and Clarks.

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RETAILING IN COLCHESTER

• Colchester’s prime retail pitches are Culver Street West and High Street. Due to the dual frontages, the shops attract passing trade from two separate prime pitches.

• Colchester is an attractive and historic retailing location with retailing focused around High Street, Culver Street West and East, Culver Square and Lion Walk Shopping Centres.

• The High Street entrances of the units are located opposite Fenwick which has recently undergone a significant refurbishment and extension, with the doors having reopened in September 2016.

• Culver Square is anchored by Debenhams and H&M whilst Lion Walk is anchored by Primark and Topshop.

• Other national retailers in the town centre include Next, GAP, M&S, Metro Bank, H&M, Primark and Debenhams.

• The town also benefits from value retailers including Poundland, Wilkinson and Peacocks.

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DESCRIPTIONThe properties comprise two adjacent period buildings with dual frontages onto High Street and Culver Street West. The buildings are known as 16 High Street and 17-18 High Street. 16 High Street - GreggsThis unit is arranged over ground, first, second and third floors and is accessed from both High Street and Culver Street West.

There is a bakery sales area at each end of the store with kitchens and a large café area at the centre. The upper parts are self-contained and accessed from Culver Street West and are used as ancillary and storage accommodation.

The third floor is unusable in its current condition.

17 – 18 High Street - MilletsThis unit is arranged over basement, ground, first and second floors from High Street and over ground and first floor only when accessed from Culver Street West.

There is a large sales area at the ground floor with checkout areas on either end of the store. The basement and upper parts are used as ancillary and storage accommodation. There is potential to make the upper parts self-contained, subject to planning permission. 5


50 metres

For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011

Colchester

Experian Goad Plan Created: 03/04/2018Created By: Dunitz and Co Ltd

Copyright and confidentiality Experian, 2017. © Crown copyright and databaserights 2017. OS 100019885

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ACCOMMODATION & TENANCY SCHEDULEThe property is fully let to two tenants and provides a WAULT of approximately 4.75 years to lease expiries. The total floor area is 11,637 sq ft (1,081.11 sq m) and the total passing rent is £254,250 per annum.

TENANT UNIT STREET FLOOR USE SQ.FT SQ.M RENT PER ANNUM

LEASE START

TERM (YRS)

LEASE EXPIRY COMMENTS

Greggs Plc 16 High Street

High Street Ground Sales 1,286 119.47

£154,250 25/03/18 5 24/03/23

High Street Ground Floor ITZA: 594 sq ft.

Culver Street Ground Floor ITZA: 843 sq ft.

In April 2012 Greggs Plc demonstrated their commitment to this location by signing a reversionary lease from March 2018 to March 2023.

Culver Street Ground Sales 1,767 164.16

High Street & Culver Street First Floor Storage 2,274 211.26

High Street & Culver Street Second Floor Storage 888 82.5

High Street & Culver Street Third Floor Storage 403 37.44

TOTAL 6,618 614.83

TENANT UNIT STREET FLOOR USE SQ.FT SQ.M RENT PER ANNUM

LEASE START

TERM (YRS)

LEASE EXPIRY COMMENTS

Blacks Outdoor Retail Limited (T/A Millets)

17 - 18 High Street

High Street Ground Sales 1,062 98.66

£100,000 28/09/12 10 27/09/22

High Street Ground Floor ITZA: 561 sq ft.

Culver Street Ground Floor ITZA: 555 sq ft.

Culver Street Ground Sales 1,174 109.07

High Street First Floor Storage 744 69.12

Culver Street First Floor Storage 416 38.65

High Street Second Floor Storage 704 65.4

High Street Basement Storage 919 85.38

TOTAL 5,019 466.28

NB: The above areas have been provided from our client’s records and have been measured in accordance with the guidelines as described in the Sixth Edition of the Code of Measuring Practice, published by the Royal Institution of Chartered Surveyors.

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ASSET MANAGEMENT

• Potential to re gear the occupational leases with the existing tenants. • Opportunity to split the units to provide 4 shops in total, 2 accessed from High Street and 2 accessed from Culver Street West.• Convert the upper parts to residential use, subject to planning permission and obtaining vacant possession of the upper floors. • Increase the size of the upper parts, subject to planning permission.

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COVENANT INFORMATIONGreggs PlcGreggs is the largest bakery chain in the United Kingdom, is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. To date the company successfully operate from over 1,760 outlets and have ambitions to grow this to 2,000 outlets. For the 13 weeks to 30 September 2017, total sales were up 8.6%, 98 new outlets were opened and 120 outlets were re-fitted. Dun & Bradstreet has given Greggs Plc a D&B Rating of 5A1 and has reported the following accounts over the past 3 years.

Greggs Plc 31/12/2016(£ 000’s)

02/01/2016(£ 000’s)

03/01/2015(£ 000’s)

Turnover 894,195 835,749 803,961Pre Tax Profit 75,142 73,028 49,743Tangible Net Worth 250,406 262,097 248,537

For additional information, please see www.corporate.greggs.co.uk

Blacks Outdoor Retail LimitedBlacks Outdoor Retail Limited is owned by JD Sports Fashion Plc who in turn own a range of other brands including Size?, Kukri, Cloggs, Footpatrol and Scotts to name a few.

The premises trade as Millets who currently operate from over 100 stores, selling outdoor clothing and providing products for a wide range of recreational activities such as walking and leisure camping.

In 2012 JD Sports Fashion Plc acquired Blacks Outdoor Retail Limited and subsequently shut three other Blacks and Millets stores in the town centre to focus all operations into the subject unit.

Dun & Bradstreet has given Blacks Outdoor Retail Limited a D&B Rating of N2 and has reported the following accounts over the past 3 years.

Blacks Outdoor Retail Limited 28/01/2017(£ 000’s)

30/01/2016(£ 000’s)

31/01/2015(£ 000’s)

Turnover 137,793 129,932 115,473Pre Tax Profit 914 -3,481 -15,036Tangible Net Worth -40,989 -43,120 -42,443

For additional information, please see www.blacks.co.uk 9


TENUREFreehold.

EPC

The property has the following EPC ratings:16 High Street: E (117)17-18 High Street: D (79)

Full copies of the EPCs are available from Dunitz & Co. upon request.

VATThis property has been elected for VAT. It is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

PLANNINGThe properties are located within Colchester Borough Council in the county of Essex. Tel: +44 (0)1206 282222Web: www.colchester.gov.uk

The properties are not listed but are located within a Conservation Area.

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INVESTMENT CONSIDERATIONS

• Colchester is a popular London commuter town and a well-established regional retailing centre.

• The properties are situated within a 100% prime pitch.

• Dual frontages allow each individual shop to attract passing trade from two separate prime pitches.

• 2 of only 8 dual fronted shops with access from High Street and Culver Street West.

• Situated opposite a recently refurbished 120,000 sq ft (11,148.36 sq m) Fenwick’s Department store.

• Potential to re gear the occupational leases with the existing tenants.

• Three Blacks and Millets stores were shut in the town centre in 2013 to focus all operations into the subject store.

• Potential for change of use of the upper floors and to increase the massing of the building, subject to planning permission and obtaining vacant possession of the upper floors.

• Numerous national multiple retailers are represented within the vicinity including Fenwick, Next, Debenhams, Primark, H&M, Marks & Spencer, GAP and Metro Bank.

• Freehold.

• Metro Bank at 31-32 High Street was sold in September 2017 reflecting a net initial yield of 4.64%.

• Asking price reflects an attractive net initial yield of 6.25%. 11


DUNITZ & COMPANY LTD: DISCLAIMER

Dunitz & Company Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that:

1. The particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of an offer or contract;

2. Lease details, service charges, ground rent (where applicable) and council tax are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts;

3. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct however we have not carried out a structural survey and any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise;

4. No person in the employment of Dunitz & Company Ltd has any authority to make or give any representation or warranty whatever in relation to the property; and

5. The photographs show only certain parts of the property as they appeared at the time they were taken and the copyright of the same remain exclusive to Dunitz & Company Ltd.

Designed by Brand+Outlines Ltd. May 2018

PROPOSAL

Seeking offers in excess of £3,820,000 subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.25%, after allowing for acquisition costs of 6.53%.

FURTHER INFORMATION

For further information or to arrange an inspection of the property, please contact:

James DunitzTel: +44 (0)20 7486 8000Email: Web:

The plan is indicative and for reference purposes only. A Title Plan can be provided upon request.

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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:636

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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1367

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Daniel EliaTel: +44 (0)20 7486 8000Email: Web:

Dunitz & Co. 40 Margaret Street, London W1G 0JH

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16 18 1 1 - dunitzandco.com

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