high street, guildford, gu1 3es - allsop.co.uk · high street, guildford, gu1 3es. prime freehold...

HIGH STREET, GUILDFORD, GU1 3ESRARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE

WITH POTENTIAL TO DEVELOP THE UPPER PARTS

HIGH STREET, GUILDFORD, GU1 3ESPRIME FREEHOLD HIGH STREET

INVESTMENT FOR SALE

INVESTMENT CONSIDERATIONS

Guildford is a highly affluent south east town and is amongst the UK’s premier retail destinations

outside of Central London

•The town’s catchment population is one of the most affluent of the PROMIS centres, ranking

second on the PMA Affluence Indicator

•Prime retail unit situated on the pedestrianised

High Street adjacent to Gapkids and within close proximity to Jack Wills, Gap, GANT and WH Smith.

•Let to Vodafone Ltd for a further 4 years at a

current rent of £232,500 p.a. reflecting a Zone A rent of £307.50 psf

•Freehold

•Potential to unlock the residential accommodation and expand further by extending the upper floors

to the rear, subject to the existing lease and obtaining all relevant planning consents

•We are instructed to seek offers in excess of

£5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 4.15% assuming purchaser’s costs of 6.60%.

Heathrow

Gatwick

StanstedLuton

J27J25J23

J21

J20

J19

J16

J15

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A127

A505

A418 A602

A120

A131

A130

A138

A130

A229

A243

A217

A232

A331

A322

A339

A316

A309

A232

A264

A264

A229

A404

A355

A404

A413

A4010

A4142

A414

A414

A5

A1

A2

A3

A3

A2

A34

A41

A40

A40

A33

A31

A24

A24

A23

A22

A21

A20

A12A10

A10

A10

A12

A12

A13

A26

A21

A21

A22

A22

A23

M4

M4

M2

M3

M3

M1

M25

M10

M40

M40

M25

M25

M25

M23

M26

M25 M20

M20

M25

M11

M11

M25

A1(M)

M1

Harlow

Bishop’sStortford

EppingPotters Bar

Knebworth

Hertford

Luton

Aylesbury

DunstableStevenage

LONDON

Hatfield

Dartford

Bromley

Gravesend

Gillingham

Shoreham

Rochester

Sittingbourne

Croydon

Biggin Hill

Romford

Sevenoaks

Tonbridge

RoyalTunbridge

Wells

Maidstone

Snodland

Sheerness

StaplehurstPaddock

Wood

East Grinstead

Crawley Three Bridges

Horley

Horsham

Witley

Godalming

Cranleigh

NorthHorsham

HaywardsHeath

Burgess Hill

Redhill

Oxted

DorkingGUILDFORD

Reigate

Staines

Slough

HemelHempstead St Albans

HighWycombe

Watford

WembleyUxbridge

Ruislip

Harrow BrentCross

Woking

SouthOxney

Rickmansworth

Harefield

BorehamwoodEnfield

Windsor

Famborough

Aldershot

Alton

Basingstoke

Famham

Fleet

Wokingham Ascot

Reading

Henley-on-ThamesMaidenhead

Epsom

Chessington

Tolworth

Sutton

Clapham

Swanley

Fulham

Weybridge

Ashford

RichmondHounslow

KingstonUpon Thames

Billericay

Wickford

Stanford-le-Hope

Southend-on-SeaBenfleet

CanveyIsland

Brentwood

Chelmsford

ChippingOngar

Basildon

Welwyn GardenCity



LOCATION

Guildford is the main commercial and administrative centre of Surrey and is one of the premier retailing locations in the UK. The town is located approximately 33 miles (53 km) south west of Central London, 7 miles (11 km) south of Woking and 10 miles (16 km) east of Farnham. The A3 London to Portsmouth trunk road runs along the edge of the town and provides fast road access to London, the south coast and the M25 motorway at junction 10. Guildford also benefits from a mainline rail service with direct services to Waterloo, with a journey time of approximately 33 minutes. Both London Heathrow and London Gatwick Airports are within a 30 minute drive.

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RETAILING IN GUILDFORD

Guildford is an affluent market town and is a leading retailing centre across the country, popular with occupiers and investors. The town benefits from being within close proximity to London and is a popular commuter town. The town attracts some of the highest consumer spending in the South East, with retail expenditure expected to grow in the near future.

The core shopping area within Guildford town centre focuses around the High Street and North Street, which lie parallel to one another. The prime pitch is found along the pedestrianised section of the High Street. There are three shopping centres within the town:- The Friary Centre, White Lion Walk and Tunsgate Square however the traditional High Street remains the heart of the town’s retail offer.

The retail offer in Guildford is very strong with a good provision of upper middle/quality fashion retailers including GANT, Hobbs, Kurt Geiger, Phase Eight, Ted Baker, Urban Outfitters, Jack Wills, Superdry and Hollister all having representation. Recent arrivals in the town include Massimo Dutti, Timberland, Joules and Anthropologie further underlining the town’s prominence as a leading retailing centre. These national brands are supplemented by an array of independent boutiques.

The vacancy rate in Guildford town centre currently stands at 6.8%, well below the national average. The refurbishment of Tunsgate Quarter will bring further occupiers coming to the town with OKA Direct, Loaf and The Ivy Brasserie having taken pre-lets. Prime rents in the town currently stand at £310 psf Zone A. This is now approximately 11% above the pre-recession peak outlining the strength of Guildford as a retail centre.

DEMOGRAPHICS

Guildford has a primary catchment area population of 507,000 with an estimated shopping population of approximately 241,000 and the area is expected to see above average growth in population across the next 5 years. Given the breadth of the retail offer in Guildford and the attractive character of the town centre, we would expect the town to draw a significant number of shoppers from beyond the primary catchment area.

The Guildford catchment population is one of the most affluent catchments in the UK, ranked 2nd out of the PROMIS centres on the PMA Affluence indicator. This is reflected by the spending habits of the catchment population where per capita retail spending levels are significantly above the PROMIS average.

The town includes a large student population with the University of Surrey accommodating in excess of 15,000 students. Guildford is also a popular commuter town with over 8.2 million people using the station in 2015/16.

RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE WITH POTENTIAL TO DEVELOP THE UPPER PARTS

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SITUATION

The property is situated on a prominent trading position on the southern side of the pedestrianised High Street close to its junction with Chapel Street. Nearby occupiers include Gapkids, Gap, WH Smith, Jack Wills, GANT, Waterstones and Boots.

DESCRIPTION

The subject property is an attractive building, comprising a single retail unit that is arranged over ground and mezzanine levels and three storeys of residential accommodation across first, second and third floors. The residential accommodation benefits from separate access across a flat roof to the rear of the property and comprises three bedrooms. There is car parking for up to 3 cars to the rear of the property.

ACCOMMODATION

We have been informed by our client that the property comprises the following approximate dimensions and floor areas:

Sq M Sq Ft

Ground Floor (NIA) 169.6 1,826

Ground Floor ITZA 64.3 692

Mezzanine Ancillary (NIA) 20.2 217

First Floor Residential (GIA) 48.4 521

Second Floor Residential (GIA) 48.4 521

Third Floor Residential (GIA) 48.4 521

Total Area 335.0 3,606

TENURE

Freehold

TENANCY

The entire property is let to Vodafone Ltd on a 10 year lease from 24th June 2011 at a current passing rent of £232,500 p.a. The 2016 rent review has recently been provisionally settled rising from a starting rent of £229,000 p.a.

We understand that the property was fully refitted in 2015 and that it sits within the top 25 of circa 500 stores across the UK in terms of performance.

RENTAL VALUE

The current rent passing of £232,500 pa reflects a Zone A rent of approximately £307.50 psf. We have applied A/20 to the mezzanine ancillary accommodation. This has allowed for £1,500 pcm to be attributed to the flat less 25% for management and voids. £1,000 has been attributed for each car park space.

We consider that the unit is rack rented.

The most current salient rental evidence can be set out as follows:

1 66 HIGH STREET, GUILDFORD The subject property underwent a rent review last year which has recently been settled increasing to £232,500 pa. The rent passing reflects £307.50 psf Zone A

2 133-135 HIGH STREET, GUILDFORD The property was let to Massimo Dutti UK on a 10 year lease from February 2016 at a rent of £390,000 pa. The rent passing reflected £320 psf Zone A.

3 76-78 HIGH STREET, GUILDFORD Kikki-K has taken an assignment of an existing lease expiring in June 2020 at a rent of £146,500 pa reflecting £314 psf Zone A.


ASSET MANAGEMENT

The property provides a number of potential asset management opportunities including:

• Negotiating with the tenant to release the residential upper parts from the lease which are currently not used by the tenant.

• Extending the upper parts to the rear to create further residential accommodation subject to obtaining the necessary planning consents. A recently commissioned planning report is available in the dataroom.

• Extending the lease to Vodafone.

COVENANT

Vodafone LtdVodafone Group Plc is one of the world’s leading mobile communications providers and has over 480 stores in the UK. Vodafone operate in a further 30 countries with almost 360 million customers and is a constituent of the FTSE 100 Index.

Vodafone Ltd forms part of the Vodafone Group. The company has a D & B rating of 5A1 and has the following financial information:

31 March 2016 31 Mar 2015 31 March 2014

Sales Turnover £6,183,500,000 £6,294,200,000 £6,969,200,000

Profit Before Taxes (£636,800,000) (£832,800,000) (£304,800,000)

Tangible Net Worth £3,506,200,000 (£1,991,600,000) (£1,658,000,000)




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. Design CommandD www.commandHQ.co.uk 07.17

www.allsop.co.uk

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

Alex Butler020 7543 [email protected]

Jonathan Butcher020 7543 [email protected]

PROPOSALWe are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 4.15% after allowing for purchaser’s costs of 6.60%.

VAT

The property is elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern (TOGC).

EPC

The EPC is available upon request.

DATAROOM

For access to the Allsop Dataroom please use the following link: http://datarooms.allsop.co.uk/register/guildford

INVESTMENT COMPARABLESWe are aware of the following high street investment comparables:

Date Address Tenant Price NIY

Under Offer 22-23 East Street, Chichester Vodafone Ltd c. £2.1m c. 3.75%

January 2017 92 – 94 High Street, Guildford EE Ltd and Nimogen Ltd £7.6m 4.3%

May 2016 133/135 High Street, Guildford Massimo Dutti £9.3m 3.95%

November 2015 123 High Street, Guildford L’Oreal (UK) Ltd £3.3m 4.3%

high street, guildford, gu1 3es - allsop.co.uk · high street, guildford, gu1 3es. prime freehold...

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