65/66 north street & 23/27 market street guildford gu1 4ah · 65/66 north street & 23/27...
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Prime, Reversionary, Well Secured, Freehold Retail Investment
65/66 North Street & 23/27 Market Street GUILDFORD GU1 4AH
65/66 north street & 23/27 market street, guildford
LocationGuildford is an affluent and popular commercial and administrative
centre within Surrey located circa 50km (31 miles) south-west of
central London, 59km (37 miles) north-west of Crawley and
48km (30 miles) east of Basingstoke.
Road communications are excellent. The town is situated adjacent
to the A3 (Dual Carriageway) which provides direct access to the
M25 (J10) some 13km (8 miles) to the north-east and the M27
circa 64 km (40 miles) to the south-west near Portsmouth. The
A31 also passes through the town which links with J4 of the M3
(via A331) at Frimley 23km (14 miles) to the north-west and to
Winchester 62km (38 miles) to the south-west.
Guildford is served by regular rail services to London (Waterloo &
Victoria) with a fastest journey time of approximately 40 minutes.
Heathrow Airport is circa 43km (22 miles) to the north and
Gatwick Airport is circa 54km (33 miles) to the south-east.
Demographics Guildford has a borough population of circa 135,700 persons with
a primary catchment of approximately 472,000 and an estimated
727,000 within a 12 mile radius. The town is particularly affluent,
Investment Summary
• A prime location on the corner of North Street and
Market Street and within the immediate vicinity of The
Friary Centre and the High Street.
• Prominent corner position in close proximity to national
multiple occupiers such as House of Fraser, French
Connection, East, Laura Ashley, Reiss and Argos.
• An established retailing pitch which will improve with the
new North Street Development located directly opposite
once completed.
• Well secured to the strong covenants of Nero Holdings
Limited (Caffe Nero) and Bravissimo Limited
(Bravissimo & Pepperberry).
• Rebased rents from 2013 with excellent rental growth
prospects.
• AWULT of 8.67 years.
• Total rent of £200,000 pax with fixed minimum uplifts
in 2018.
• Freehold.
• Offers in excess of £3,600,000 (Subject to Contract &
exclusive of VAT) which reflects a Net Initial Yield of 5.25%.
• A guaranteed Reversionary Yield of 6.20%
(incorporating the fixed minimum increases in 2018),
with an ultimate Reversionary Yield (based on an ERV of
£150 Zone A) of 8% and an Equivalent (Nominal) Yield
of 7.5%.
ranked 5th in the UK on the PMA Affluence Indicator, and has a
significant over representation of the AB and C1 social groupings.
Guildford is also a popular commuter town and is synonymous with
its’ internationally renowned education offer. Statistics from the
Office of Rail Regulations revealed that over 8 million people used
the station in 2012/13 making it the busiest train station in Surrey.
Economically Guildford is a thriving commercial town and
accommodates global operations including Phillips Electronics,
Ericsson, Colgate-Palmolive, Allianz and Sanofi.
Guildford
65/66 north street & 23/27 market street, guildford
Retailing in Guildford Guildford is a dominant and popular retail destination. A recent
Experian Survey concluded that the town is the ‘fashion capital of the
UK’ (excluding Central London), based on data relating to levels of
consumer spending, household income, demographics and the
penetration of online retail. Guildford attracts an impressive annual
retail spend of circa £900m with 6,878 households on incomes of
between £100,000 and £150,000. The town has an estimated
shopping population of 244,000 persons. Footfall along the High
Street has increased year on year with the target customer profile
being between the ages of 25-50 and predominantly A, B, C1 female.
The prime retail offer is focused on the busy and popular
pedestrianised High Street where there is a high concentration of
major UK multiples including M&S, House of Fraser, Debenhams, Next, Boots, WH Smith, Gap, H&M and Superdrug. In addition,
the town has a strong representation of quality fashion retailers
including Karen Millen, Gant, Links, Hugo Boss, Reiss, Superdry, Ted Baker, LK Bennett, Whistles and Jo Malone.
The external frontages of Friary Street, which acts as a thoroughfare
from Friary Centre to the High Street, have recently been refurbished
and has further improved Guilford’s retail offer. The recent letting
to Five Guys complements earlier lettings to Wagamama, Gourmet Burger Kitchen, Nandos, Superdry, Apple, TK Maxx, Cotswold Outdoors and Jamie Oliver’s Italian Kitchen.
65/66 north street & 23/27 market street, guildford
North Street Development Guildford Borough Council in conjunction with M&G Real Estate
and their chosen developer partner Land Securities are proposing
to develop a site adjoining the Friary Centre on North Street, known
as The North Street Development. While development plans are yet
to be finalised, we understand that it will comprise circa 400,000
sq. ft. of retail, leisure and residential space to include an anchor
department store, mooted to be John Lewis Partnership. In
addition, many retailers have been targeted for the scheme and are
rumoured to be the likes of Next, H&M and Arcadia. The scheme
would enhance the town’s already extensive existing retail offer and
have a positive impact upon the subject property.
SituationThe property occupies a prime trading position on North Street at
the junction with Market Street and benefits from a return frontage.
The premises are immediately adjacent to House of Fraser on
North Street and Reiss on Market Street, with other national
retailers in close proximity including French Connection, East, Laura Ashley, Fat Face, Poundland, Argos and Mothercare.
The PropertyThe property lies within Guildford’s town centre Conservation Area and
is not listed. The property was previously let on a single tenancy to
Blacks but has since been split and re-let to the current tenants.
Caffe Nero comprises ground floor only and benefits from a return
frontage onto Market Street. Bravissimo is arranged over ground
floor and ground floor mezzanine (staff room and ancillary), first
floor, first floor mezzanine and second floor (ancillary).
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Proposed North StreetDevelopment
65/66 north street & 23/27 market street, guildford
AccommodationThe property provides an approximate total net floor area of
641.29 sq.m (6,903 sq.ft). A breakdown of the areas can be
seen in the tenancy schedule.
TenureFreehold
Tenant Covenant Tenant
D&B Rating
Date of Accounts Turnover
Pre-Tax profit/loss Net Worth
Nero Holdings Limited
5A1 31/05/2014 £215,496,000 £22,538,000 £144,676,000
Bravissimo Limited
3A1 31/08/2013 £46,463,517 £2,524,576 £7,815,669
Caffe Nero have 566 outlets
in the UK and target to open
90 stores annually over the
next five years. The
multinational company have
84 branches overseas and
the new openings will be
split between the UK and international outlets. The retailer has
the highest D&B rating of 5A1 reflecting a Tangible Net Worth of
£144,676,000 and a low risk of business failure.
Bravissimo, according to
Zolfo Cooper Growth
Retailer Report, is the 6th
fastest growing retailer in
the UK. The original online
lingerie, swimwear and
nightwear for D-L cup
women now trade from 23
stores with plans to open a further 2 stores in the next financial
year. Turnover increased by 4% in the year to August 2013, while
operating profit was up by 40% to £2,524,576.
Tenancy ScheduleUnit
Description Tenant Name
Area Analysis (sq ft) Rent (£pax) (£psf Zone A)
ERV (£pax) (£psf Zone A) Start Date Expiry Date
Next Rent Review CommentsArea ITZA Total sq ft
65/66 North Street
Nero Holdings Limited GF 1,856.00 1,269.00 1,856.00 £110,000(£87 Zone A)
£190,350(£150 Zone A)
07/10/2013 06/10/2023 07/10/2018 Minimum uplift to £120k at review.
23/27 Market Street
Bravissimo Limited GF Sales 728GFMezz 1,477 (A/10)FF Store 584 (A/20)
FF Mezz 1460 (A/30)SF Store 798 (A/40)
789.00 5,047.00 £90,000(£114 Zone A)
£118,350(£150 Zone A)
02/09/2013 01/09/2023 02/09/2018 Minimum uplift to £115k at review.
£200,000 £308,700 AWULT 8.67 years
65/66 north street & 23/27 market street, guildford
Current Income pax£200,000 per annum exclusive.
Rental ValueThe subject property is within the prime pitch on North Street, of
which the tone is established at £150 psf Zone A, and is therefore
highly reversionary. In addition, rental growth prospects are
excellent over the medium to long term with the North Street
Development being developed directly opposite. Based on £150 psf Zone A, the current ERV is £308,700 pax, (Caffe Nero -
£190,350; Bravissimo - £118,350 pax). This represents an
attractive discount to the High Street, where prime rents currently
reflect £285-£300 psf Zone A.
EPCEPC’s are available upon request.
VATThe property has been elected for VAT and any disposal will be by
way of a Transfer of a Going Concern (TOGC).
Proposal We have been instructed to seek offers in excess of £3,600,000 (Three Million and Six Hundred Thousand Pounds), Subject to
Contract & exclusive of VAT, which reflects a net initial yield of 5.25%, allowing for purchaser’s costs of 5.8%. A purchase at
this level would produce the following yield profile:
Net Initial Yield 5.25%
Guaranteed Reversionary Yield (2018) 6.20%
Ultimate Reversionary Yield (2018) 8.00%
Equivalent Yield (nominal) 7.5%
65/66 north street & 23/27 market street, guildford
MAURICE
BARBERS
THE GATE
BOUTIQUE
UNDER OFFER
Further InformationFor further information, please contact:
David Freeman James Baillie Ed Smith Patrick Over 020-7659-4830 020-7659-4839 020-7659-4831 020-7659-4832 [email protected] [email protected] [email protected] [email protected] These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. March 2015. Adrian Gates Photography & Design 07710 316991