shopping centre and kings house - joiner … shopping centre and kings house king street sudbury...

KING STREET SUDBURY SUFFOLK CO10 2EG

borehamgateSHOPPING CENTRE AND KINGS HOUSE

INVESTMENT SUMMARY • Busy shopping centre and office/residential investment

extending to 31,773 sq ft, comprising 16 retail units, 5 flats let on ASTs and 8,215 sq ft of offices.

• Large 1 acre, strategic freehold holding located in a prominent position in the heart of the historic and affluent market town of Sudbury.

• Situated between the key drivers of the town centre including Waitrose, the train/bus station and the prime retail core.

• Location set to benefit from the proposed Hamilton Road scheme immediately to the rear.

• Let to 30 tenants producing an income of £327,436 per annum.

• Attractive WAULT of 2.8 years (1.9 years to breaks) with excellent potential to improve.

• Excellent security of income from a diverse tenant mix. • Low average rental tone of £20 per sq ft Zone A

providing excellent scope for growth. • Numerous asset management opportunities including

re-gearing leases with existing tenants, converting further uppers to residential and letting vacant office suites.

• Potential to release value through individual residential sales and by extending existing residential long leaseholds.

• We are instructed to seek offers in excess of £3,415,000 (Three Million, Four Hundred and Fifteen Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level will reflect a net initial yield of 9.00% and an attractive reversionary yield of 10.39% assuming standard purchaser’s costs.

KING STREET SUDBURY SUFFOLK CO10 2EGborehamgate SHOPPING CENTRE AND KINGS HOUSE

SUDBURY

COLCHESTER

IPSWICH

BURY STEDMUNDS

CAMBRIDGE

HAVERHILL

BRAINTREE

TO LONDON

BISHOP’SSTORFORD

STANSTED AIRPORT

A131

A1307

A143

A1017

A134

A1071

A134

A140

A505

A120 A120

A120

A120

A14

A14

A14

A14

A14

A14

A14

A11

M11A10

A12

A12

A12

8

9

10

9a

11

12

13

14

LOCATIONSudbury is a historic and affluent Suffolk market town with a population of 13,063 (Census 2011) and an estimated primary catchment of 62,000 (PMA), drawing on a number of surrounding wealthy satellite villages.

It is the largest town of Babergh District and is due to grow significantly with over 2,500 new homes (300 per year) proposed in the period up to 2031. 1,350 of these homes are to be developed in Sudbury/Great Conard.

The town is situated approximately 12 miles (19 km) south of Bury St Edmunds, 14 miles (23 km) north west

of Colchester, 23 miles (37 km) from the county town of Ipswich and 66 miles (106 km) north east of London.

Road links are excellent with the town lying at the junction of the A134 and A131 and the M11 (Junction 8) being approximately 30 miles (48 km) to the south west. Sudbury Railway Station provides a fastest journey time to London Liverpool Street of approximately 1 hour and 15 minutes. Stansted Airport is approximately 32 miles (51 km) to the south west.

centrally located in the heart of the historic and affluent

market town of Sudbury

MAPS NOT TO SCALE. FOR INDICATIVE PURPOSES ONLY


B 1115

B1115

F

RIA

RS S

TREE

T

GR

EA

T E

AS

TE

RN

RO

AD

STATION ROAD

EDG

WO

RTH

RO

AD

MEA

DOW

LA

NE

NORTH STREET

EAST

STR

EET

A1 3 1 M ARKET HILL KING STREET

BURKITTS

LAN

E

FRANCIS ROAD

NEWTON ROAD

B1508

A131 A131

BELLE VUE PARKHAMILTON ROADROY’SPROPOSED

SCHEME

TOWN CENTRE

KINGFISHERLEISURE CENTRE

SUDBURYRAIL STATION

busy thoroughfare between the bus/train

station and town centre

MAPS NOT TO SCALE. FOR INDICATIVE PURPOSES ONLY

HAMILTON ROAD REGENERATION

Borehamgate is set to benefit significantly from the proposed Hamilton Road Quarter scheme immediately to the south. The proposals are for a mixed use scheme including retail and leisure uses to be integrated with Borehamgate. The regeneration of this area will enhance and strengthen the immediate location surrounding Borehamgate.

Pedestrian Links


SITUATION Borehamgate Shopping Centre and Kings House occupy a substantial town centre site in the heart of Sudbury in a prominent position at the junction of King Street and Great Eastern Road. It forms an integral link between the town centre to the north and the bus and train stations and main town centre car parks to the south/south east.

The property benefits from being situated in an established retail pitch in close proximity to Waitrose, Roy’s department store and the Kingfisher Leisure Centre. The retail facilities on Market Hill and North Street are located in close proximity to the north west and north respectively.

50 metres

Sudbury

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

Experian Goad Plan Created: 27/04/2016Created By: Joiner Cummings

Copyright and confidentiality Experian, 2016. © Crown copyright anddatabase rights 2016. OS 100019885

56

78

COBBLERS& KEYS

1416

substantial 1 acre freehold town centre holding

ROY’S

PROPOSED HAMILTON ROAD

QUARTER SCHEME

BUS STATION

TO SUDBURY RAIL STATION

&

PARKING


DESCRIPTION The property comprises a shopping precinct over ground floors providing 16 units totalling 18,880 sq ft. Borehamgate has extensive frontage to King Street and benefits from excellent pedestrian flows as a link to and from the Waitrose supermarket and Kingfisher Leisure Centre car parks, Roy’s department store, the bus and train station and the town centre. The upper floors provide office (Kings House) and residential accommodation. The property also benefits from a substantial 25 space surface car park.

Kings House provides 8,215 sq ft of office accommodation over first and second floors with its own dedicated entrance off King Street. The first floor is arranged as open plan offices, whilst the second floor is divided into seven office suites. There are two vacant office suites on the second floor extending to 925 sq ft providing the opportunity to improve the running yield.

The residential accommodation comprises five two/three bedroom self-contained residential flats over first and second floors which are let on ASTs and offer sought after town centre accommodation. There are also seven residential flats which have been sold off on long leases.

TENUREThe property is held freehold. A copy of the registered title can be provided on request.

SITE AREA1.04 Acres (0.42 ha)

highly granular income profile offering

excellent security


TENANCIES• Let to 30 tenants producing an annual income of

£327,436 per annum comprising: • Retail income of £222,900 per annum. • Residential AST income of £29,847 per annum. • Office income of £54,975 per annum, reflecting

£6.54 per sq ft on the let accommodation. • Other income of £19,714 per annum from parking,

phone masts/satellites and ground rents.• Low average Zone A rents of £20 per sq ft.• Attractive average weighted unexpired term of

2.8 years (1.9 to breaks).• Excellent tenant mix.• Two vacant office suites totalling 925 sq ft.

Full information is provided in the tenancy schedule.

RENTAL VALUEThe current passing rent is £327,436 per annum. Upon letting the vacant offices suites the rent can be enhanced to £334,832 per annum.

The average Zone A rental tone of £20 per sq ft is low and reflects a significant discount from prime Zone A rents of £60 per sq ft within the town. The office passing rents reflect £5.63 – £6.60 per sq ft.

In our opinion we assess the market rental value to be £377,877 per annum. This reflects £18 – £25 per sq ft Zone A on the retail elements and between £7 – £8 per sq ft on the office areas. We have applied £565 pcm and £575 pcm for the two bedroom and three bedroom flats respectively. A summary of our rental values is shown in the tenancy schedule.

SERVICE CHARGEThere is a service charge which is administered by the Vendor. The current service charge budget for the year ending 31 December 2016 is £107,594. Further information is available on request.

low average zone A rents of £20 per sq ft

offering excellent scope for rental growth


TENANCY SCHEDULEDescription Use Tenant (Trading As) Ground

Floor Area (sq ft)

Ground Floor Area ITZA (sq ft)

First Floor Area (sq ft)

Second Floor Area (sq ft)

Total (sq ft)

Current Rent

Current Rent (£ psf)

ERV ERV (£psf/pcm)

Lease Start Lease Expiry

Next Break Option

Next Rent Review

Comments

Unit 1 Retail David Paul Spankie (Sudbury Independent Estate Agents) 863 506 863 £13,500 £26.68 ITZA £12,648 £25.00 ITZA 19/10/2012 23/06/2021 23/06/2016 19/10/2016Unit 2 Retail Jonathan Lambert Limited (Jonathan Lambert Fine Jewellers) 933 583 933 £14,000 £24.00 ITZA £14,583 £25.00 ITZA 25/03/2014 24/03/2024 25/03/2019 25/03/2019Unit 3 (Kiosk) Retail Frederick W Charman & Andrew R Poll (News) 60 60 60 £3,000 £3,000 19/05/2015 18/05/2025 19/05/2020 19/05/2018Unit 4 Retail R A Wade, A J Wade, MA Wade & M A Wade (Milpet's

Pet Centre) 810 530 810 £11,000 £20.77 ITZA £13,242 £25.00 ITZA 27/03/2007 26/03/2017

Unit 5-6 Retail Coral Racing Limited 1,469 1,034 1,469 £20,000 £19.35 ITZA £25,844 £25.00 ITZA 24/10/2012 23/10/2022 23/10/2017 24/10/2017Unit 5 Retail Peyton Foods Limited (Mick's Fish & Chips) 822 538 822 £11,000 £20.43 ITZA £13,460 £25.00 ITZA 26/03/2013 23/06/2018Unit 6 Retail Marimba World Chocolate Limited (Marimba Chocolatier) 825 540 825 £12,000 £22.20 ITZA £13,512 £25.00 ITZA 26/10/2011 07/05/2018Unit 7 Retail RSPCA Danaher Animal Home 822 546 822 £11,000 £20.16 ITZA £13,641 £25.00 ITZA 16/01/2012 15/01/2022 16/01/2017 16/01/2017Unit 8 Retail Johnston Publishing Ltd (Suffolk Free Press) 786 591 346 276 1,407 £10,000 £15.32 ITZA £14,768 £25.00 ITZA 25/03/2008 24/03/2018Unit 9 Retail Levensgrath Limited (Cartridge World) 843 543 843 £12,000 £22.12 ITZA £13,563 £25.00 ITZA 25/07/2007 07/04/2014 Holding over. Unit 10 Retail Marimba World Wide Chocolate ltd (Marimba Chocolate

Café) 793 543 793 £13,000 £23.96 ITZA £13,563 £25.00 ITZA 08/05/2008 08/05/2018

Unit 11 Retail Cobblers & Keys Ltd 842 552 842 £10,500 £19.02 ITZA £13,805 £25.00 ITZA 23/11/2015 22/11/2018 23/11/2017Unit 12 Retail Susan Anne Sanders & Kevin Ian Sanders (Fanboo

Luxury Hair Salon) 808 536 808 £13,400 £25.01 ITZA £13,393 £25.00 ITZA 01/10/2010 30/09/2020

Unit 13 Retail John Barry Sawyer (JBS Family Butchers) 819 545 819 £11,000 £20.18 ITZA £13,625 £25.00 ITZA 06/05/2011 05/05/2021 06/05/2016 Break notice served.Unit 14 Retail The Secretary Of State For Communities And Local

Government (Job Centre) 3,332 1,851 3,332 £32,500 £17.55 ITZA £33,325 £18.00 ITZA 17/06/2012 01/04/2018 01/04/2016

Unit 16 Retail Thing Me Bobs Ltd 4,052 1,628 210 4,262 £25,000 £15.36 ITZA £29,295 £18.00 ITZA 19/11/2001 18/11/2011 Holding over. Discussions ongoing. Tenant bought by QD Stores in 2013.

Phone Mast, Roof Kings House Other Hutchison 3G UK Ltd & Everything Everywhere L £8,548 £8,548 30/09/2005 29/09/2020 30/09/2017Phone Mast, Roof Kings House Other O2 (UK) Limited £8,066 £8,066 31/01/2006 30/01/2021 31/01/2018Satellite Dish Roof Adjoining Unit 14 Other The Secretary of State for the Environment £100 £100 25/06/1993 04/06/2012Satellite Dish Roof Other Coral Estates Ltd £500 £500 22/09/2003 21/09/20131st Floor, Kings House Office The Sue Ryder Foundation 4,435 4,435 £29,250 £6.60 psf £31,043 £7.00 psf 01/08/1999 31/07/2019 01/08/2017 Right to use 14 parking spaces.Suite A, 2nd Floor Kings House Office Vacant Unit 293 293 £0 £2,341 £8.00 psf - - Vendor providing a 2 year rates

and service charge guarantee. Suite B, 2nd Floor, Kings House Office Vacant Unit 632 632 £0 £5,055 £8.00 psf - - Vendor providing a 2 year rates

and service charge guarantee. Suite C 2nd Floor, Kings House Office Sue Ryder Care 632 632 £4,900 £7.75 psf £5,059 £8.00 psf 20/01/2004 31/07/2019 01/08/2017 Right to use 5 parking spaces.Suite D, 2nd Floor, Kings House & Phone Mast

Office/Phone

Vodafone Ltd 308 308 £9,335 £9,335 24/06/2003 23/06/2018 24/06/2015 Vodaphone equipment room and phone mast.

Suite E, 2nd Floor, Kings House Office Sue Ryder Care 638 638 £3,590 £5.63 psf £5,103 £8.00 psf 07/10/2003 31/07/2019 01/08/2017Suite F, 2nd Floor, Kings House Office Sue Ryder Care 326 326 £1,900 £5.83 psf £2,609 £8.00 psf 19/10/2006 31/07/2019 01/08/2017Suite G, 2nd Floor, Kings House Office Sue Ryder Care 951 951 £6,000 £6.31 psf £7,611 £8.00 psf 12/11/2004 31/07/2019 01/08/20171 Car Parking Space Parking Ms Susan Miller £500 £500 06/01/2009 05/01/2024 Licence4 Car Parking Spaces Parking Countrywide Estate Agents Ltd £1,000 £1,000 31/07/2002 31/07/2012 Licence1 Car Parking Space Parking Anglia Newspapers Ltd £300 £300 25/03/2008 24/03/2018 LicenceFlat 16 Kings House Residential Shirley Dean £100 £100 25/12/1979 24/12/2078 Sold off on a long lease. Flat 17, Kings House Residential Robert John Sayers £100 £100 25/12/1979 24/12/2078 Sold off on a long lease. Flat 18, Kings House Residential Michael George Lane £100 £100 25/03/2003 24/12/2153 Sold off on a long lease. Flat 19, Kings House Residential Mr Robert John Sayers £100 £100 25/12/1981 24/12/2080 Sold off on a long lease. Flat 20, Kings House Residential Mr J F Butcher & Ms B Mallins £100 £100 25/12/1981 24/12/2080 Sold off on a long lease. Flat 20A, Kings House - 2 bedroom flat Residential Mr M J Carlton 657 £6,300 £525 pcm £6,780 £565 pcm 21/10/2015 20/10/2016Flat 20B, Kings House - 2 bedroom flat Residential Simply Together Community Care Limited 646 £6,780 £565 pcm £6,780 £565 pcm 28/10/2015 27/10/2016Flat 20C, Kings House - 2 bedroom flat Residential Mrs D A McEvoy & MR D JDorrington 744 £6,600 £550 pcm £6,780 £565 pcm 07/08/2015 06/02/2016Flat 21, Kings House - 3 bedroom flat Residential Johnston Publishing Ltd 900 £3,267 £272 pcm £7,200 £600 pcm 25/03/1988 24/03/2018 Split level apartment. Flat 22, Kings House - 3 bedroom flat Residential Mr Graham Gamble 900 £6,900 £575 pcm £7,200 £600 pcm 11/12/1998 10/12/2016 Split level apartment. Flat 23, Kings House Residential Mr & Mrs C J Platfoot £100 £100 25/12/1979 24/12/2078 Sold off on a long lease. Flat 24, Kings House Residential Robert John Sayers £100 £100 25/12/1979 24/12/2078 Sold off on a long lease.

31,773 £327,436 £377,877


ASSET MANAGEMENT Borehamgate Shopping Centre and Kings House offers numerous asset management opportunities as set out below:• Let the two vacant office suites totalling 925 sq ft to

increase the running yield. • Explore re-gearing the office leases with Sue Ryder

who have been in occupation for in excess of 17 years. • Negotiate lease renewals of Unit 9 and Unit 16.• Engage with the Local Authority to influence the

proposed Hamilton Road scheme. • Release value through individual residential sales.• Long term residential potential for the upper office floors.

PROPOSALWe are seeking offers in excess of £3,415,000 (Three Million, Four Hundred and Fifteen Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level will reflect the following yield profile, after deduction of standard purchasers costs:• Net initial yield of 9.00% which increases to 9.21%

on letting of the vacant offices.• An attractive reversionary yield of 10.39%.

VATThe property is elected for VAT, it is envisaged the transaction will be treated as TOGC.

EPCSEPC reports are available on request.


Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection. (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is May 2016.

CONTACTSimon Martin: [email protected] Peter Flanders: [email protected] John Blackwell: [email protected]: 020 7409 7828 Fax: 020 7491 9121

INVESTMENT CONSIDERATIONS• Historic and affluent market town with a dedicated

catchment.• Extensive town centre holding in a strategic position

which is set to benefit from the proposed Hamilton Road Regeneration.

• Attractive WAULT of 2.8 years (1.9 years to breaks) with excellent potential to improve.

• Excellent security of income from a diverse tenant mix. • Low Zone A average rental tone of approximately

£20 per sq ft provides excellent scope for growth.• Numerous outstanding asset management

opportunities including completing lease renewals and extensions and letting vacant office suites.

• Significant potential to release value through individual residential sales and by extending existing residential long leaseholds.

• Attractive yield profile.


shopping centre and kings house - joiner … shopping centre and kings house king street sudbury...

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