chatham place -...

Chatham PlaceReading | Berkshire | RG1 7AZ INVESTMENT OPPORTUNITY FOR SALE OF 4 LET RETAIL UNITS

IN AWARD WINNING REGENERATION SCHEME| next page

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Investment Summary Location Demographics Retail & Leisure in Reading Situation | Description | Accommodation | Tenure Tenancies | ERV | Covenant VAT | Data Room | Proposal | Contact

Investment Summary

AA Four retail units let to Pertemps, Anytime Fitness, Vorwerk and Hot Yoga

AA Rent roll £165,165 p.a.

AA Offers sought in excess of £1.8m plus VAT

AA Net initial yield of 9.17%

AA WAULT to break 5.04 (Weighted on rent)

AA WAULT to lease expiries 8.69 by 2020.

AA Reversion potential to c.£188,000 p.a.

AA Reversionary yield of 10.44%.

Unit 2

Unit 3

Unit 4

Unit 1



Bristol (1 h

r 15 mins)

London Paddington (30 mins)Birm

ingham (1 hr 3

8 mins)

Cardiff (1 hr 3

4 mins)

Reading

National Rail

LocationReading is the principal commercial and administrative centre of Berkshire in the South East of England, situated approximately 64 km (40 miles) west of Central London, 40 km (25 miles) south east of Oxford and 27 km (17 miles) north of Basingstoke.

The town has excellent transport communications, with close links to Junctions 10, 11 and 12 of the M4 motorway, which provides efficient access to London and the wider national motorway network. Heathrow Airport is located just 28 miles (45 km) to the east and Gatwick Airport is also 41 miles (56 km) to the south east.

Reading’s mainline railway station is on the Great Western mainline and is the second busiest interchange station outside of London. Currently the station provides direct services into London Paddington in 30 minutes as well as Bristol (1 hour 15 minutes), Birmingham (1 hour 38 minutes) and Cardiff (1 hour 34 minutes). Crossrail, which will come to Reading in 2019, will enhance the rail service further, enabling passengers to travel into Stratford in 69 minutes, Canary Wharf in 67 minutes, Liverpool Street in 60 minutes and Bond Street in 53 minutes, along with direct links to Essex and Kent in the east.

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GUILDFORD

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Reading Bond St (53 mins)

Liverpool St (60 mins)

Stratfo

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Canary Wharf (67 mins)Proposed Crossrail



Reading Train Station

IDRChatham Place

The Oracle

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Reading Commercial MarketReading is considered as the primary retail centre in Berkshire with an estimated shopping population of 401,000 ranking the town 19th of the 200 PROMIS Centres. The town boasts approximately 1.83m sq ft of retail floor space, which is focused around the prime pitch of pedestrianised Broad Street, and The Oracle Shopping Centre.

Reading is also a thriving leisure destination with a strong offering of restaurants and bars. The riverside area, which forms part of The Oracle, houses several national multiple casual dining operators such as Jamie’s Italian, Wagamama and Giraffe; whilst the historical square around the St Mary the Virgin Church also boasts a variety of popular national and local restaurant and bar operators.

The town also has two shopping centres - The Oracle comprises 700,000 sq ft of retail space and is consistently well let and occupiers currently include House of Fraser, Hugo Boss, Apple, Zara and H& M. Broad Street runs east to west between The Oracle and the secondary shopping centre, Broad Street Mall, where tenants include Metro Bank and TK Maxx. Broad Street is a busy retail thoroughfare with high levels of footfall and a variety of national retailers such as John Lewis, Primark, Next and River Island.

Following the £900m investment in Reading Station over 2m sq ft of offices are currently being developed within 500m of the station with developers such as M&G, Landid and Brockton Capital, McKay Securities, Topland, Stanhope and Boultbee Brooks all investing heavily in Readings future as the commercial hub of the Thames Valley.

DemographicsReading benefits from an affluent catchment population of 692,000 people, with an over-representation of social grades AB and C1, which account for 67% of residents. Due to the town’s excellent connections with London there is a high proportion of commuters, however the daily net inflow is positive due to Reading’s well established office market, which has a focus on IT, investment and insurance. The close proximity to Heathrow airport has been a major contributing factor in several multi-national companies choosing Reading as the location for their UK base, such as Verizon, Microsoft and PepsiCo.

Reading also benefits from a student population of around 17,000 who attend the University of Reading, just outside the town centre. Reading is becoming increasingly popular and is listed as one of the top 20 places with the most sales to young professionals by Lloyds Bank this year. This is partly down to the faster rail links promised by HS2.

Reading is:AA Rated 1st for best performing economic area (EY)

AA Has the UK’s 45th highest start - up rate (centre for cities)

AA Hosts 43% of the top 30 global companies

AA 2nd most prosperous city in the UK (Barclays)

AA Best place to live and work (PWC)

AA Highest UK employment rate

www.livingreading.co.uk/invest/key-facts



SituationChatham Place is situated on the western edge of the town centre, immediately adjacent to the Inner Distribution Road (IDR). The site also connects to Oxford Road (and then Broad Street) and the roundabout at the end of Friar Street.

It is therefore within a few minutes walk of both the prime retailing area within the town, the main leisure pitch and the railway station.

DescriptionChatham Place is a substantial regeneration site which was constructed between 2008 and 2016 and in total comprise:-

AA 11,500 sq ft of retail / leisure space

AA A 590 space Q Parks car park

AA 491 flats

AA Total of 740,000 sq ft.

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CHATHAM ST

Reading Railway Station

Kings Meadow(Recreation Ground)

Reading Bridge

River Kennet

Broad Street Mall

The Oracle Shopping

Centre

Chatham Place

AccommodationThe properties has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and benefit from the following areas:

Unit Area (sq. ft.) Fascia

1 Ground floor Unit 14-18 Alfred Street 2,055 Pertemps

2 Units 2 & 4 (Commercial Units 1 & 2 Building 1) 2,895 Studio 42

3 Unit 3 the Mews Block, Chatham Street 1,324 Vorwerk

4 Unit 4 A-D the Mews Block, Chatham Street 5,289 Anytime Fitness

Total 11,563

TenureVirtual Freehold. Copies of all legal documents can be accessed via the data room (click here)

UNIT 4

UNIT 2

UNIT 1

UNIT 3

http://chathamplaceinvestment.co.uk



Estimated Rental ValueThe recently completed letting to Pertemps establishes an ERV of close to £20 psf for prominent and outward facing units. Applying this rate to Unit 3, and making a generous allowance of a 25% reduction from this figure to take account of lack of prominence for Units 4 (Anytime Fitness) and 2&4 (Hot Yoga) would result in an ERV for all 4 units of £188,165 p.a

Covenant

Y/E 2015 GBP ‘000

Y/E 2014 GBP ‘000

Y/E 2013 GBP ‘000

Pertemps Ltd 429,511 400,453 352,204

Act Fitness Ltd is a ‘small company’ incorporated in 2012.

Hot Yoga Berkshire Ltd is a ‘small company’ incorporated in 2008.

Vorwerk Ltd is a ‘medium company’ incorporated in 2004.

Graydon reports on all 4 companies are in the Data Room.

Tenancies

Unit Tenant Fascia Lease addressArea

(sq.ft.) RentRent psf

T/o rent provision

Next Rent review Start Term Break Expiry

1 Pertemps Ltd Pertemps Ground floor unit 14-18 Alfred Street

2,055 £41,000 £19.95 No 17/05/2022 17/02/2017 10 17/02/2022 on 3 months notice

16/02/2027

2 Hot Yoga Berkshire Ltd Studio 42 Units 2 & 4 (Commercial units 1 & 2 Building 1)

2,895 £28,750 £9.93 Yes 28/01/2020 17/05/2012 10 0 16/05/2022

3 Vorwerk UK Ltd Vorwerk Unit 3 the Mews Block, Chatham Street

1,324 £24,000 £18.13 No N/a 23/11/2016 5 0 22/11/2021

4 Act Fitness Ltd Anytime Fitness Unit 4 A-D the Mews Block, Chatham Street

5,289 £71,415 £13.50 No 15/03/2018 15/03/2013 15 15/03/2023 12 months notice

15/03/2028

TOTAL 11,563 £165,165

Unit 2

Unit 4

Un

it 3

Unit 1




VATThese properties have been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going concern (TOGC).

Data RoomAll relevant legal documents together with plans and EPC’s can be located in the data room. Click here for access.

Fiona Brownfoot MRICS

T: 0118 955 7083 / 07770 470 214

E: [email protected]

MISREPRESENTATION ACT DISCLAIMER

Misrepresentation Act 1967: The particulars contained in this brochure are believed to be correct. Accuracy cannot be guaranteed and they are expressly excluded from any contract.

Designed and produced by Adrian Gates Photography & Design: 07710 316 991

CONTACT

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Proposal

Offers are sought of £1.8 million for all 4 properties, subject to contract and exclusive of VAT, reflecting:

Net Initial Yield of 9.17% (net of purchaser’s costs of 5.92%) excl. VAT

Reversionary Yield of 10.44%

Any outstanding rent free will be topped up by the vendor.


chatham place -...

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