33 parade leamington spa - colliersretailcapitalmarkets.com · 33 parade, leamington spa . 2....

33 PARADE . LEAMINGTON SPACV32 4BL

Freehold retail investment opportunity let to Hotel Chocolat

33 Parade, Leamington Spa 2

Investment Considerations

• Royal Leamington Spa is an attractive regency town located in Warwickshire, with a loyal and affluent catchment population.

• Substantial, prominent corner property providing 4,196 sq ft (389.8 sq m) over 5 floors.

• Prime position, located on Parade at its junction with Warwick Street.

• Freehold.

• Ground and basement let to Hotel Chocolat Stores Limited until August 2023 (4.29 years unexpired).

• Passing rent of £65,000 per annum (£90.30 per sq ft ZA)

• Self-contained upper floors trading as Arabella Hair and Beauty with less than a year unexpired at a passing rent of £15,000 per annum.

• Total passing rent of £80,000 per annum.

• Excellent potential for conversion of the self-contained upper floors (subject to planning permission and vacant possession).

ProposalOffers sought in excess of £1,260,000 (subject to contract and exclusive of VAT) reflecting a Net Initial Yield of 6.00%.Yields are net of purchasers’ costs of 5.97%.


A38

A34 A45

A46

A46

A44

A46

A44

A43A41

A456

A442

A442

A426

A424

A417

A422

A449

A449

A421

A423

A508

A429

A605

A458

A4123

A4103

A6116

A47

A47

A43

A14

A6

A5

A5

A5

A43

M1

M1

M6

M6

M6

M5

M5

M1M69

M42

M6 TOLL

M40

M40

M42

M50

M54

ROYALLEAMINGTON SPA

Warwick

Kidderminster

Wolverhampton

Telford

CannockWellington

Ironbridge

Bridgnorth

WalsallSutton

Coldfield

WestBromwich

Tamworth

Ashby-de-la-Zouch

Coalville

Mowbray

OakhamStamford

Uppinham

CorbyMarket

Harborough

Rothwell

Thrapston

Oundle

Wellingborough

Daventry

Rugby

NeportPagnell

Towcester

Buckingham

BanburyChippingCampden

Stratford-upon-Avon

Evesham

Tewkesbury

Ledbury

Moreton-in-Marsh

Stow-on-the-Wold

Bletchley

Bedford

Kempston

Wigston

Nuneaton

Solihull

Redditch

Bromsgrove

Kettering

Birmingham

Coventry

Northampton

Leicester

Worcester

Milton Keynes

LocationRoyal Leamington Spa is an attractive and affluent town in Warwickshire, located approximately 2 miles east of Warwick, 8 miles south of Coventry and 18 miles south east of Birmingham. Due to its strategic location, Leamington Spa benefits from excellent transport connections:

Demographic ProfileLeamington Spa's primary catchment population is estimated at 166,000 (PROMIS), extending to Coventry in the north and Stratford-upon-Avon in the south. The town ranks highly on the PROMIS affluence indicator, with a ranking of 21. The proportion of the population categorised within the most affluent social-economic group AB is far in excess of the UK average, at 35% compared to just 25%. Unemployment is also under half the UK average (December 2017) at 0.5%.

Retail expenditure in Leamington Spa is high, with the town ranking 13th in the UK for forecast growth in comparison retail expenditure (2015-2020). This is boosted by the 5,000 Warwick University students who live in the town and the significant number of tourists who visit every year for the Royal Pump Rooms, art galleries and museum, as well as nearby Warwick Castle.

Road communications are excellent with the town located with direct access to the M40. Junction 13 is situated within 5 miles providing access to London and the south, and Junction 14 is 4 miles west, providing access to the M42 and the north.

Royal Leamington Spa train station is also very well connected, with a regular direct service to London Marylebone in 1 hour 15 minutes and Birmingham New Street and Moor Street in 30 minutes.

Birmingham International Airport is situated 19 miles north west of the town centre and provides national and international flights to over 150 destinations. The airport is accessible via the A452/A45 with a journey time of approximately 45 minutes or via a direct train service in 23 minutes.

40%AFFLUENT SOCIAL-

ECONOMIC GROUP AB

ABOVE UK AVERAGE

13thRETAIL EXPENDITURE GROWTH FORECAST

166,000PRIMARY

POPULATION

21stPROMIS

AFFLUENCE INDICATOR


Retailing in Leamington SpaRoyal Leamington Spa boasts an excellent provision of retail space, with approximately 1.16 million sq ft of accommodation, which is primarily focused on Parade. The town ranks 42nd of the PROMIS centres for its Non-Food Retail Score and 43rd for its PMA Fashion Score, with an above average volume and quality of retail provision relative to the size and affluence of its population. The compact prime pitch on Parade is the stretch between Warwick Street and Regent Street, where the subject property is located and other retailers include H&M, Oliver Bonas, M&S and Superdrug.

The high street pitch is complemented by the Royal Priors, Leamington Spa’s principal managed scheme, which is located to the east, between Warwick Street and Regent Street and offers 130,000 sq ft of retail accommodation. Retailers in occupation here include Topshop/Topman, Sports Direct, Wilko and Superdry.

There is also a second, leisure focused, open air scheme to the south of Regent Street, Regent Court. The scheme provides 70,000 sq ft of primarily A3 accommodation, with current tenants including Côte,


SituationThe property occupies a prominent corner position on the prime pitch of Parade at its junction with Warwick Street. Occupiers in close proximity include Oliver Bonas, H&M, The Body Shop, Boots, M&S and Holland & Barrett. Two of the entrances to the Royal Priors Shopping Centre are also located in close proximity on Parade and Warwick Street.

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DescriptionThe subject property comprises a prominent corner building of regency style, arranged over basement, ground and three upper floors. The ground and basement floors provide well configured retail accommodation, arranged with sales and ancillary space on ground floor and further ancillary space at lower ground. The retail unit benefits from return frontage and separate entrance for servicing on Wariwck Street. and has been recently fitted out to a high standard by the tenant.

The upper floors benefit from self-contained, prominent access from Parade. An attractive open spiral staircase leads to first, second and third floors, currently configured as a hair and beauty salon. The space offers excellent natural light and period features and would lend itself well to conversion back to residential use (subject to planning).

The property is Grade II listed and lies within the Royal Leamington Spa Conservation Area..

AccommodationThe property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and comprises the following Net Internal Areas:

Area (sq ft)

Area (sq m)

Ground Floor Retail 988 91.8

ITZA 684 63.5

Lower Ground Ancillary 724 67.3

First Floor Salon 816 75.9

Second Floor Salon 768 71.3

Third Floor Salon 899 83.5

Total 4,196 389.8


TenureThe property is held freehold under title number WK284541.

TenancyThe ground and basement retail unit is let to Hotel Chocolat Stores Limited on a 5 year FRI lease from 29th August 2018 at a passing rent of £65,000 per annum.

The upper floors are let to Angela Malin on a 10 year FRI lease from 6th April 2010, expiring 5th April 2020 at a passing rent of £15,000 per annum. The lease is excluded from sections 24 to 28 of the Landlord and Tenant Act 1954.

Rental CommentaryWe have analysed the passing rent of the retail unit, £65,000 per annum to reflect £90.30 per sq ft ZA. The open market letting of the subject property represents the most recent evidence on Parade and we understand that strong interest was received for the unit.

With consideration of the below comparable evidence we believe the rent offers excellent potential for future growth:

Address Tenant Transaction DateRate

(ZA per sq ft)

74 Parade Pavers OML Jan 2018 £132.50

44-46 Parade Oliver Bonas OML Oct 2017 £100.75

78 Warwick Street

Second Cup OML Jun 2017 £83.5535

3368 70

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Covenant InformationHotel Chocolat is a luxury British chocolatier and cocoa grower. Having opened its first store in North London in 2004, the company now trades from 103 shops as well as cafés and restaurants, along with its first three boutiques in Copenhagen and a boutique hotel on its working cocoa plantation in the Caribbean.

Hotel Chocolat Stores Limited is a wholly owned subsidiary of Hotel Chocolat Group PLC which has a Dun & Bradstreet rating of 5A1.

A summary of the last three years of accounts for Hotel Chocolat Group PLC is set out below:

Year Ending 01/07/2018 02/07/2017 26/06/2016

Sales Turnover £116,331,566 £105,240,130 £91,089,824

Pre-tax Profit £12,708,765 £11,205,211 £5,591,094

Net Worth £36,823,269 £28,824,844 £19,207,708

The 2019 interim results detailed continued progress of the brand during the 26 weeks to 30 December 2018, with an increase in revenue of 13% and an increase in the EBITDA of 10%. Growth was delivered across all its channels, which benefitted from strong new products, successful marketing and loyalty campaigns, and the continued growth of digital platforms.

£12.7mPRE-TAX PROFIT

2018

£12.7m£11.2m

‘17 ‘18

£5.6m

‘16

£36.8mNET WORTH

2018

£36.8m

£28.8m

‘17 ‘18

£19.2m

‘16

£116.3mSALES TURNOVER

2018

£116.3m

£105.2m£91.1m

‘16 ‘18‘17

EPCA copy of the EPC certificate is available on request.

VATThe property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern, subject to the purchaser’s VAT status.

Colliers International 50 George Street, London, W1U 7GA

Hannah Greenland020 7344 6559 [email protected]

Becky Hance020 7344 6841 [email protected]

Contact

MISREPRESENTATION ACT DISCLAIMERColliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. May 2019. Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561. Registered office: 50 George Street, London W1U 7GA. Designed and produced by Parer Creative. Tel 07702 123482.

ProposalOffers sought in excess of £1,260,000 (subject to contract and exclusive of VAT) reflecting a Net Initial Yield of 6.00%.Yields are net of purchasers’ costs of 5.97%.

33 parade leamington spa - colliersretailcapitalmarkets.com · 33 parade, leamington spa . 2....

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