final clacton on sea ncp final - allsop.co.uk

NCP CAR PARK, JACKSON ROAD, CLACTON-ON-SEA, ESSEX CO15 1JA

CLACTON-ON-SEA

LONG INCOME CAR PARK INVESTMENT WITH ANNUAL RPI UPLIFTS LET TO NCP FOR A FURTHER C.17 YEARS

CLACTON-ON-SEA NCP CAR PARK, JACKSON ROAD, ESSEX CO15 1JA LONG INCOME CAR PARK INVESTMENT WITH ANNUAL RPI UPLIFTS LET TO NCP FOR A FURTHER C.17 YEARS

››› INVESTMENT CONSIDERATIONS

› Town Centre surface car park providing 90 spaces adjacent to the main retail pitch and within walking distance to Clacton Pier

› Let to the strong covenant of National Car Parks (NCP) Limited for an unexpired term of c.17 years

› Rent passing of £177,717 pa subject to RPI annual increases (1.5%-5% collar and cap)

› Freehold

› Site area of approximately 0.69 acres / 0.28 hectares

› Strong future development potential, subject to vacant possession and the necessary consents

› Whilst some national covenants have not paid their rent during the COVID Lockdown period NCP have paid

››› PROPOSAL

› Offers are sought in excess of £3,180,000 (Three Million One Hundred and Eighty Thousand Pounds) which reflects a NIY of 5.25% subject to contract and exclusive of VAT, allowing for purchaser’s costs of 6.49%.

Based on 3% annual increases the running yield will be as follows:

Date Rent Running Yield

June 2025 £206,022 6.09%

June 2030 £238,836 7.05%

June 2035 £276,877 8.18%


››› LOCATION

The popular seaside town of Clacton-on-Sea is the largest town on the Tendring Peninsula in Essex and is situated approximately 16 miles east of Colchester and 67 miles to the east of Central London. The town is located between Jaywick and Holland-on-sea along the coastline and Great Clacton to the north. The town has been a popular tourist destination since the 1970’s benefitting from its coastal location with its various holiday parks, historic leisure pier and close proximity to London. In the last few decades the town has become popular for London Commuters offering affordable housing in comparison to the city.

The national road network is easily accessible via the A133/ A120 which connects with the A12 north of Colchester and subsequently the M11 and M25 to the south west. Clacton’s railway station provides direct services to London Liverpool Street Station with a journey time of approximately 1 hour 30 minutes as well as Colchester and Chelmsford in 26 and 49 minutes respectively.

A120

A120

A133

A140

A134

A134

A414

A134

A143

A130

A130

A141

A428

A142

A1065A47

A11

A12

A12

A14

A14 A12

A11

A10

A10

A10

A1

A6

M6

M1

M1

M1

M4

M45

M40

M25

M25

M11

A1(M)

A1(M)

HEATHROW

LUTON

STANSTED

NORWICH

CAMBRIDGE

LONDON

BurySt Edmunds

GreatYarmouth

Lowestoft

Norwich

Peterborough

Cambridge

Newmarket

Huntington

ThetfordKettering

MiltonKeynes

Stevenage

Harlow

Braintree

Enfield

Maidenhead

Reading

HighWycombe

Luton

AylesburyHemel

Hempstead

Bishop’sStortford

Northampton

Ipswich

Felixstowe

HarwichColchester

Chelmsford

Basildon

Southend-on-Sea

CLACTON-ON-SEACLACTON-ON-SEA

Colchester 16 miles

Chelmsford 16 miles

Central London 67 miles

Colchester 26 mins

Chelmsford 49 mins

London Liverpool Street 90 mins

London Stansted Airport 49 miles

London Southend Airport 57 miles

London City Airport 83 miles

ROAD

RAIL

AIR

FIRSTESSEX BUSES


© Crown Copyright, ES 100004106. For identification purposes only.

››› SITUATION

The property is located in Clacton Town Centre on the east side of Jackson Road close to its junction with West Avenue, a 5 minute walk south to Clacton Pier and seafront. Pier Street and Station Road, which are the principal retail streets in Clacton Town Centre, are located immediately adjacent to the property.

The car park is well situated for commuters into London and other neighbouring towns with the train station an 8 minute walk north. The property also provides convenient parking for hotels in the area including Premier Inn and Travelodge.

nn Freehold Demisenn Sold off on

999 year lease

››› DESCRIPTIONThe property comprises a surface car with prominent frontage onto Jackson Road providing a total of 90 car spaces, of which 2 are disabled bays.

››› SITE AREA

The total site area is 0.69 acres / 0.28 hectares.

››› TENURE

Freehold.

››› TENANCYThe property is let in its entirety to National Car Parks Limited on a full repairing and insuring lease for a term of 34 years and 11 months (no breaks) from 29th June 2002 to and including 28th May 2037 (17 years unexpired). The current passing rent is £177,717.04 pa, reflecting £1,974.63 per space.

The lease benefits from annual Retail Price Index linked rent reviews, with a collar of 1.5% and a cap of 5%. The tenant has an option to renew the tenancy for a further 20 years on identical terms, at the rent then passing. The lease is Outside the 1954 Landlord & Tenant Act.

Part of the site has been sold off on a 999 year lease to First Essex Buses, there is a two storey building on their demise, further information can be found on the Allsop dataroom.


››› FUTURE DEVELOPMENT POTENTIALThe property offers strong alternative use potential to residential or commercial use due to the wealth of amenities nearby and its location in the Town Centre, subject to the necessary consents and current leases. There has been planning permission recently given to the nearby Rumours Night Club for part conversion part development to create 16 apartments.

Whilst Reunion House directly to the west of the subject property is in development to provide 3 two bed houses. Due to the Town Centre location and nearby tourist attractions we believe the site could also be developed for hotel use, subject to the necessary consents.

Please note as per the tenancy paragraph there is a long lease to First Essex Buses of part of the property, which also benefits from some rights of way, therefore any development will have to take this lease into account. The lease is available in the Allsop dataroom.

››› POST COVID CAR USE*

Government Guidance to use carsThe Government has stated that all other forms of transport should be considered over public transport and has implemented a number of driver friendly measures to encourage car use during Covid

The public want to drive46% of respondents said say they are more likely to drive than use public transport with only 1 in 5 happy to use public transport in the future

Can social distancing be observed outside of a car?92% of respondents don’t think social distancing on public transport will be feasible and will continue to stay away from public transport unless social distancing is in place

Public interest in purchasing cars has spikedOn the day of Prime Minister’s easing of lockdown measures traffic on Autotrader peaked at more than 1m views, the highest since the lockdown began in March

Transport usage by type(index comparing usage to pre-Covid periods)

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20

40

60

80

100

120

9-Mar 29-Mar 18-Apr 8-May 28-May 17-Jun

Vehicles Rail Bus (exc. London)

*Source Passenger Focus

Increase in Car use compared to Public TransportPublic transport use has remained very low whereas vehicle use has returned to c.80% of pre-Covid levels


*Source Passenger Focus

››› NCP COVENANT

NCP is the UK’s most recognised and longest standing private car park operator being founded in 1931. NCP operates car parking spaces across the UK at over 500 sites for approximately 150,000 cars, possessing a 30% market share. NCP Limited is jointly owned by Park24 and the Development Bank of Japan (DBJ), both investment grade rated businesses with substantial cash generation potential and cash/capital reserves relative to the NCP Group.

The joint venture (JV) purchased NCP Limited in July 2017 for an indicative enterprise value of £440 million. As part of the acquisition 100% of the NCP Group’s external debt was repaid. Park24 is a listed Japanese company based in Tokyo, and is a major

parking operator with over 1 million spaces in 19,000 sites across 8 countries. DBJ is a Japanese Government owned financial institution with a strong track record in infrastructure finance.

Year Ending 31/03/2017 (£’000s)

25/03/2016 (£’000s)

27/03/2015 (£’000s)

Turnover £211,461 £202,703 £198,736

Pre Tax Profit £24,793 £28,001 £14,859

Net Worth £210,138 £186,896 £156,973

››› MOMENTS FROM THE SEAFRONT

Located in Clacton Town Centre a 5 minute walk to Clacton Pier and seafront.

››› TOWN CENTRE RETAIL

Located adjacent to Clacton’s principal Town Centre retail offering in Pier Street and Station Road.

››› CONVENIENT ACCESS

Fast access via Wellesley Road to Clacton’s primary A road the A133 which connects the town to the national road network.

››› TRAIN STATION ACCESS

Only an 8 minute walk to Clacton Train Station, perfect for commuters into London and neighbouring towns.


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››› VATThe property has been elected for VAT and it is anticipated that the transaction will be treated as a TOGC.

››› ANTI-MONEY-LAUNDERINGA successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

››› DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/NCP-Clacton

››› PROPOSALOffers are sought in excess of £3,180,000 (Three Million One Hundred and Eighty Thousand Pounds) which reflects a NIY of 5.25% subject to contract and exclusive of VAT, allowing for purchaser’s costs of 6.49%.

Based on 3% annual increases the running yield will be as follows:

Date Rent Running Yield

June 2025 £206,022 6.09%

June 2030 £238,836 7.05%

June 2035 £276,877 8.18%

IMPORTANT NOTICE: Allsop and Cushman & Wakefield on their own behalf and on behalf of the instructing client give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property, but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an option and not by way of statement of fact. 8. No person in the employment of Allsop or C&W has any authority to make any representation or warranty whatsoever in relation to this property. Allsop is the trading name of Allsop LLP. Cushman & Wakefield is the trading name of Cushman & Wakefield Debenham Tie Leung Limited. Design CommandD www.commandHQ.co.uk 07.20

Liam Stray07956 [email protected]

Jason Winfield07768 601 [email protected]

For further information or to make arrangements for viewing please contact:

Tom Dales07799 [email protected]

Richard Wadham07768 601 [email protected]

Jeremy Hodgson07850 [email protected] allsop.co.uk cushmanwakefield.com

final clacton on sea ncp final - allsop.co.uk

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