george street - allsop · 50 george street tea too assignment june 2015 £225 ... 36 george street...

57/58GEORGE STREETRICHMOND UPON THAMES TW9 1HE

LET TO SMIGGLE UK LIMITED

100% PRIME RETAIL INVESTMENT


INVESTMENT SUMMARYn Located in the affluent suburb of Richmond upon Thames in south west London

n Prominent retail investment situated in a 100% prime pitch on George Street

n Option to purchase either the freehold interest or a long leasehold interest

n Retail unit let to Smiggle UK Ltd on a lease expiring in August 2024 (TOB 2019) with the upper parts sold off on a long lease

n Passing rent of £115,000 pa reflects a below market Zone A rent of £209 psf

n ERV of £125,500 pa based on a Zone A rent of £230

n Upward only rent review on 13th August 2019

Offers sought in excess of £2,165,000 (Two Million One Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5% and a reversionary yield of 5.42% in 2019 assuming purchasers costs of 6.32%.

LOCATIONRichmond upon Thames is an affluent London Borough located in the south west quadrant of Greater London between the River Thames and Richmond Park. A thriving retail and commercial centre, Richmond benefits from its river location and close proximity to Central London (9 miles north east), Kingston upon Thames (4 miles south) and of Twickenham (2 miles south west).

The town has excellent road communications being located on the A316 which provides direct access to Junction 1 of the M3 motorway (approximately 5 miles south west) and the M4 motorway (2 miles north at Chiswick). Both provide quick access to Central London and the M25 Motorway.

Richmond mainline provides a regular direct service to London Waterloo with a journey time of approximately 20 minutes (9 trains per hour), with further services to Reading (1 hour 6 minutes) and Windsor (33 minutes).

Richmond is also served by the London Underground network via the District Line with a journey time of approximately 30 minutes to London Victoria.

The United Kingdom’s largest international airport Heathrow is located 11 miles to the West via the M4, providing a wide variety of both domestic and international destinations.

DEMOGRAPHICSRichmond upon Thames has primary catchment population of 105,000 persons and the population is forecast to rise by 1.4% per annum between the years 2015-2020, double the PMA centre average. At 80% the Richmond area contains a significantly above average proportion of adults of working age categorised within the most affluent AB and C1 social groups compared the to the national average of 53%. The average house price in Richmond re-enforces this at £765,100 compared to the national average of £241,600.

Tourism in Richmond is crucial to the borough’s overall economy and generates an estimated total economic benefit of £469 million per annum attracting approximately 4.5 million visitors per year. (Source: Richmond.gov.uk). Attractions in the borough include Richmond Park, the Riverside, Hampton Court Palace, Kew Gardens, Twickenham Rugby Stadium and Richmond town centre itself.

CHICHESTER

M3

M40

M25M1

M20

M20

M2

M25

M25

M25

M23

M4

M4

M3

M27 A3 (M)

ALTON

GUILDFORD

BASINGSTOKE

WINCHESTER

FARNHAM

PETERSFIELD

PORTSMOUTH

BRACKNELL

RICHMOND

SLOUGH

WATFORD

HATFIELD

HARLOW

WAREHERTFORD

HIGHWYCOMBE

KINGSTONUPON THAMES

AYLESBURY

AMERSHAM

CROYDON

SOUTHAMPTON

PORTSMOUTH

HEATHROWSHEERNESS

MARGATEROCHESTER

MAIDSTONE

ASHFORD

UCKFIELD

NEWHAVENBRIGHTON

EASTBOURNE

HASTINGS

FOLKESTONE

DOVER

LEWES

SOUTHEND-ON-SEA

CLACTON-ON-SEA

SEVENOAKS

A22

A22 A26

A23

A3

A31

A12

A414

A13

A3

A24REIGATE

CRAWLEY

A272A272

A343

A322

GATWICK

S TR A I TO F

D OVE R

ENGLISH CHANNEL

NORTHSEA

LONDON

LONDON CITY

RETAILING IN RICHMOND UPON THAMESRichmond upon Thames provides a thriving retail and commercial centre with a combination of national covenants and upmarket specialist retailers which reflect the affluent nature of the catchment area. The prime pitch centres on George Street where major retailers include House of Fraser, Gap, Marks & Spencer, WH Smith and H&M.

The town has established itself as a high end shopping destination and ranks 59 on the basis of its PMA Retail Score and 40 on the PMA Fashion score with per capita spending levels significantly above the PMA average. The town has a considerably above average volume and quality of retail provision relative to the size of the shopping population reflecting the importance of the town as a tourist and visitor location.

SITUATIONThe property is situated on the north side of George Street occupying a 100% prime pitch. It is in close proximity to major brands which include Gant, Natwest, H&M, Top Shop, Boots and Holland and Barrett.

50 metres

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

Richmond (London)

Experian Goad Plan Created: 11/04/2016Created By: Harmer Ray Hoffbrand

Copyright and confidentiality Experian, 2016. © Crowncopyright and database rights 2016. OS 100019885

UNDEROFFER

AQUALADIES WEAR

N

DESCRIPTIONThe property comprises a prominent mid-terrace building arranged over ground, basement and three upper floors providing ground floor sales with self-contained accommodation above which has been sold off on a long lease. The property is of brick built construction with a part tiled, part flat roof.

ACCOMMODATIONThe property provides the following areas:

Accommodation Sq m Sq Ft

Ground Floor Sales 73.02 786

ITZA – 542

Ground Floor Ancillary 15.2 164

Basement

Total Area NIA 88.22 950

Upper Floors (Only applicable if the freehold interest is purchased)

First Floor Two Bedroom Flat* Sold off on a long lease of 999 years at a total ground rent of £750 pa from completion

Second Floor Two Bedroom Flat*

Third Floor One Bedroom Flat*

TENUREThe buyer can elect to purchase either the freehold of the property with the vendor retaining the uppers on a 999 year lease or the leasehold interest of the ground floor shop and basement on a 999 year lease from completion.

TOWN PLANNINGThe building is located within the Central Richmond Conservation Area but is not Listed.

Basement has restricted height and is not usable

TENANCYThe ground floor and basement is let to Smiggle UK Limited for a term of 10 years from 13th August 2014 (C.8 years unexpired) on an effective full repairing and insuring lease at a passing rent of £115,000 pa.

The lease is subject to an upward only rent review on 13th August 2019 and a tenant only break clause on 13th August 2019.

If the buyer elects to purchase the freehold interest, the vendor will retain the upper three floors on a 999 year lease paying £750 pa in ground rent with the rights to develop and extend above if desired.

COVENANT INFORMATIONFounded in Melbourne in 2003, Smiggle is an Australian retail chain that sells stationery and related accessories. The company was acquired by the Just Group in July 2007 with its first UK store opening 7 years later in 2014. Although originally based in Australia the chain has now grown to become a global brand with stores located across New Zealand (23), Singapore (17), United Kingdom (70) and Australia (137). The business has produced the following headline accounts over the last 2 years:

25/07/2015 26/07/2014

Turnover £10,297,000 £1,165,000

Pre Tax Profit £641,000 -£1,678,000

Shareholder Funds £3,169,000 £2,657,000

RENTAL VALUE The rent passing of £115,000 pa on the Smiggle unit devalues to a Zone A rent of £209 psf. Based on an ITZA of 542 sq ft, it is our opinion that the estimated rental value of the retail premises is in the region of £125,500 pa, which reflects a Zone A rent of £230 psf. As the basement has restricted height and trap door access only we have applied nil value.

The principal evidence can be set out as follows:

Address Tenant Event Date £ Zone A

59 George Street Under offer Under offer August 2016 Quoting £240

50 George Street Tea Too Assignment June 2015 £225

44/45 George Street Massimo Dutti Letting September 2014 £230

39/40 George Street Itsu Letting April 2014 £200

36 George Street Reebok Letting October 2013 £238

50 George Street Ugg Letting December 2012 £220

36 George Street Pret-a-Manger Letting October 2012 £234.25

Whilst transactional evidence in prime locations is scarce in Richmond upon Thames, rents have seen a steady increase in value in the past decade from £200 psf Zone A in mid-2005 to the £230 psf Zone A of today. There are currently very few voids within the prime shopping core and this together with the town’s affluent population means rents are expected to continue to grow over the coming years.

RECENT INVESTEMENT TRANSACTIONSAddress Tenant Date Size Sq ft Price NIY

8 The Quadrant Hamptons Estates Ltd May 16 1,974 £2.5 million 4.35%

42 George Street EE Jan 16 1,581 £2.675 million 4.15%

9-11 The Quadrant Multi-Let Dec 15 13,010 £8.6 million 5.01%

43 George Street Vacant Possession Jun 15 1,500 £2.9 million Vacant Possession

3 The Square Nationwide Feb 15 £3.88 million 4.28%

2 & 2A George Street Links of London Dec 14 1,230 £1.8 million 5.25%

60 and 61-62 George Street Boots Oct 14 6,400 £6.2 million 3.82%

15 George Street L’Occitane Aug 14 1,120 £3.18 million 3.86%

27-28 George Street & 7-9 Church Court

Main tenants - Office & 3Store

Aug 14 5,485 £5.85 million 4.68%

VATThe property is elected for VAT.

EPCThe building has an EPC rating of D with a score of 82.A copy of the Energy Performance Certificate is availableupon request.

For further information please contact:

Offers sought in excess of £2,165,000 (Two Million One Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5% and a reversionary yield of 5.42% in 2019 assuming purchasers costs of 6.32%.

allsop: September 2016 Produced by Barbican Studio: +44(0) 20 7634 9574

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP.


Alex Butler

020 7543 [email protected]

Liam Stray


www.allsop.co.uk

Richard Ward


Jeremy Lovell


www.hrh.uk.com

george street - allsop · 50 george street tea too assignment june 2015 £225 ... 36 george street...

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