london street bedford street · 2017-11-28 · 15-23 london street & 4-8 bedford street,...
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15-23 LONDON
STREET &
4-8 BEDFORD
STREET NORWICH
NR2 1JE
Prominent Retail and Leisure Investment for sale
| Home | Investment Summary | Location | Demographics | Retailing | Situation | Goad | Description | Accomodation
| Tenure | Tenancy Schedule | Tenancies | Income Analysis | Retail Value | Covenant | VAT | EPC | Proposal | ContactTenancy Schedule
INVESTMENT SUMMARY
• Norwich is a dominant and prosperous regional city
• Overall WAULT of 8.75 years
• 95% of the income is secured against national multiples
• Property held Freehold
• Property occupies a prominent location adjacent to Jarrolds Department Store
• Well configured retail footprints
• We are instructed to seek offers in excess of £9,650,000 (Nine Million Six Hundred and Fifty Thousand Pounds) subject to contract, and exclusive of VAT which reflects a Net Initial Yield of 6.75%, after allowing for purchasers costs of 6.69%
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
LOCATION
Norwich is the county town of Norfolk and the largest of the major East Anglican centres, situated 110 miles north east of London and 65 miles north east of Cambridge.
The city benefits from excellent communications and is served by the A11 trunk road which links to the M11 and A14, the main arterial routes from London and the Midlands to East Anglia. The Norwich Northern Distributor was granted permission on 2nd June 2015 and will consist of 8.7 miles (14.0 km) of dual-carriageway linking the A47 to the south east of the city to the proposed Rackheath Eco-town and to Norwich International Airport to the north of Norwich.
Frequent train services are also available from Norwich to London (Liverpool Street) with a fastest journey time of approximately 1 hour 47 minutes. In addition Norwich international airport is situated just over 4 miles to the North and offers flights to various destinations in the United Kingdom and Europe.
Cambridge
Ipswich
Bedford
Bury St Edmunds
Peterborough
Stamford
Thetford
GreatYarmouth
King’s LynnNorwich International Airport
Norwich
Cambridge
Ipswich
Bedford
Bury St Edmunds
Peterborough
Stamford
Thetford
GreatYarmouth
King’s LynnNorwich International Airport
Norwich
M11
M11
M1
A10
A14
A14
A14
A12
A12A140
A14
A10A14
A1
A1
A6
A6
A11 A134
A131
A1(M)
A14A14
A43
A43
A1A1
A10 A140
A11
A11
A143
A47
A143A146
A47A47A47
A47
A141
A1175
A47
A1065
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
DEMOGRAPHICS
Norwich has a primary catchment population of 894,000 significantly above the Regional Centre average and ranking the city 11th out of the PROMIS Centres. The city benefits from its isolation by having a much wider draw than normal due to the distance between the city and its major competitors. As an historic city, spending within Norwich is also boosted through tourism and in 2012 approximately 6.9 million tourists visited the city (Tourism South East).
The affluence indicator for Norwich has recently improved due to falling unemployment and rising average house prices within the Norwich area as well as an over-representation of “comfortable communities” and “affluent achievers”. Norwich is also expected to see above average population growth between 2015 and 2020. This will be facilitated by increased residential development with notable schemes including Orbit Homes £70m development of The St Anne’s Wharf site, between King Street and the River Wensum. The project will see around 430 new homes built with completion due for spring 2018.
The service sector currently accounts for around 64% of the total employment in Norwich, slightly above the retail PROMIS average, within this sector financial and business services’ accounts for 28% of total employment (Promis, 2017). The insurance industry is also a key industry within Norwich and the insurance group Aviva is the largest private employer within the city.
Norwich’s emerging reputation as a centre for technology businesses is evidenced by companies such as Epos Now which announced it was recruiting an additional 200 staff in 2016. Furthermore, the proposed “Tech Corridor” along the A11 linking Norwich and Cambridge is set to create over £500m of innovation-led growth, investment in infrastructure, housing and skills between Cambridge and Norwich.
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
RETAILING IN NORWICH
Norwich is the dominant retail centre in East Anglia and has a strong retailing tradition, with an estimated 2.2m sq ft of trading floor space. The estimated shopping population of Norwich is 521,000, ranking the city 9 of the PROMIS centres, which is above the average for the Regional Centres. Norwich ranks 17 on the basis of its PMA Retail Score and ranks 7 on the PMA AnchorScore.
Historically the pedestrianised Streets of Haymarket and Gentleman’s walk have formed the City’s prime retail pitch anchored by Jarrold’s Department Store on London Street. The City has however expanded its prime pitch to include Intu Chapelfield to the Southern end of the City. The centre opened in 2005 providing circa 540,000 sq ft of retail accommodation anchored by House of Fraser, with retailer representation
including Zara, Sports Direct, River Island and Apple.
Further prime retailing can be found on Red Lion Street and St Stephens Street where retailers such as Primark, M&S and New Look all have representation. The main retail core is also supported by the Castle Mall shopping centre comprising of around 380,000 sq ft, providing value mass market shopping with retailers including TK Maxx, Boots, New Look and Argos.
The north-eastern part of the city centre, around London Street, London Road and Bedford Street is also home to a number of upmarket and specialist retailers with White Stuff, Gap and Jack Wills trading from these locations, as well as several upmarket independent retailers.
SITUATION
The property is situated in a prominent trading location on the pedestrianised London Street, a busy retail thoroughfare which links Gentleman’s Walk and Castle Street with the traditional business district where many of the city’s professional firms are located, as well as Norwich Cathedral.
London Street benefits from numerous national multiples including Boots, GAP and Jack Wills, alongside strong local independent retailers which make Norwich a unique shopping destination.
The property is adjacent to Jarrolds department store and opposite HSBC.
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
NORTHFor Identification purposes only
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
DESCRIPTION
The property comprises 3 large, well configured retail units fronting London Street arranged over Basement and Ground Floors. There are also 3 further retail units fronting Bedford Street arranged over Ground, Basement, First and Second floors.
Further extensive trading accommodation can be found above the London street units currently occupied by a gym and restaurant operator.
ACCOMMODATION
The subject property has been measured in accordance with the RICS code of measuring practice (6th Edition) and comprises 59,600 sq ft (5,537sqm) of retail and ancillary accommodation.
Full details can be found in the tenancy schedule below.
TENURE
The property is held Freehold
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
Occupational Details Areas Lease Details Income
Description Tenant Name Trading as DescriptionArea sq ft
Lease Start
Expiry Date
Next Review
BreaksCurrent Rent £
pa
Current Rent
(£ Zone A)
Rental Value £
pa
Rental Value
(£ Zone A)
Landlord Shortfall
Comments
15-17, London Street
Jarrold and Sons Ltd
Pilch Sport & Outdoor
Gound Floor Sales 5,755
25/03/17 24/03/27 25/03/22 25/03/23 £183,000 £90.00 £183,000 £90 £0 -5% for set back -10% for quantum
Ground ITZA 1,927 Lower Ground Sales 3,782 Lower Ground Storage 1,906 Total Area 11,443
19, London Street
Laura Ashley Ltd Laura Ashley
Gound Floor Sales 3,272
12/02/11 10/02/21 £106,000 £84.00 £115,000 £90 £0 -5% for set back
Ground ITZA 1,105 Ground Ancillary 452 Basement Sales 1,777 Basement Stores 761 Total Area 6,262
21, London Street
Mountain Warehouse Ltd
Mountain Warehouse
Gound Floor Sales 1,834
30/08/11 29/08/21 £92,500 £91.50 £91,700 £90 £1,880 -5% for set back. Shortfall relates to Service charge cap of £9,450
Ground ITZA 822 Basement Sales 2,226 Basement Stores 954 Total Area 5,014
25, London Street
Norwich Investment Ltd
Cosmo Total GIA 13,651 13/02/15 12/02/30 13/02/20 13/02/25 £100,000 £7.35 £100,000 £7.35 £668Rent reviewed to RPI capped at 3% p.a. Shortfall relates service charge cap at £15,489.86
23-25 London Street
The Gym Limited
The Gym
Ground Floor 75
31/08/12 30/08/32 31/08/27 31/08/22 £153,547 £5.70 £175,600 £10 £0At Rent Review the rent Is determined by taking the basic rent preceding the rent review date and multiplying the rent by a factor 0f 1.09.
First Floor 6,488 Second Floor 11,000 Total Area 17,563
8, Bedford Street
Long Tall Sally Ltd
Long Tall Sally
Ground ITZA 332
26/12/10 24/12/20 £27,500 £55.00 £20,800 £40 £0
Ground Floor Masked 118 Mezzanine Sales 1,453 First Floor Storage 555 Second Floor Ancillary 427 Total Area 2,553
6, Bedford Street
Future Dog Ltd
Future Dog
Ground ITZA 280
25/12/10 24/12/20 £17,250 £44.00 £15,800 £40 £0Basement Sales 1,155 Basement Stores 290 Total Area 1,725
4, Bedford Street
Oriental Rugs Of Norwich Ltd
Oriental Rugs
Ground ITZA 335
25/03/11 24/03/21 £18,500 £43.00 £17,000 £40 £0
Mezzanine Sales 400 First Floor Sales 335 2nd Attic (Anc) 404 Basement 250 Total Area 1,389
Substation Site Basement
The Eastern Electricity Board
The Eastern Electricity Board
22/06/73 21/06/15 £1 £1 £0
Total 59,600 £698,298 £718,901 £2,548
TENANCY SCHEDULE
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
TENANCIES
The property is let in accordance with the attached tenancy schedule producing a Gross Income of £698,298 p.a and a net income of £695,750 p.a. The majority of leases are let on effectively Full Repairing and Insuring terms, recoverable via a service charge, details of which are available from this office.
INCOME ANALYSIS
The property currently produces a WAULT of 8.75 years to expiry, with 95% of the income secured against national multiples.
ESTIMATED RENTAL VALUE
We are of the opinion that the property has an estimated Rental value of approximately £718,900 pax.
The most current salient rental evidence can be set out as follows:
Address Tenant Date Transaction Type
Rent (psf Zone A)
15 - 17 London St Jarrolds Mar-17 Re-gear £90
22 London St Whittards Aug-16 OML £90
19 London St Laura Ashley Feb-16 Rent review £84
14 Gentlemans Walk H. Samuel Jan-15 Rent review £159
0-2 yrs
2-5yrs
5-10yrs
10yrs+
National Multiple
Local Operator26%
36% 38%
0%
95%
5%
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
OCCUPIER COVENANT
JARROLD & SONS LIMITED
31/01/2016 01/02/2015 02/02/2014 Experian Score
Turnover 28,571,000 29,443,000 30,692,000
100Pre-tax profit 7,628,000 3,093,000 2,207,000
Net Worth £65,226,000 £67,246,000 £57,749,000
LAURA ASHLEY LIMITED
30/06/2016 31/01/2015 25/01/2014 Experian Score
Turnover 384,974,000 295,764,000 287,758,000
100Pre-tax profits 25,820,000 22,393,000 19,144,000
Net Worth £117,935,000 £109,562,000 £104,792,000
MOUNTAIN WAREHOUSE LIMITED
28/02/2016 28/02/2015 28/02/2014 Experian Score
Turnover £141,403,000 £109,894,000 £88,562,574
99Pre-tax profit £16,246,000 £11,961,000 £9,322,123
Net Worth £49,311,000 £37,192,000 £26,337,639
THE GYM LIMITED 31/12/2016 31/12/2015 31/12/2014 Experian Score
Turnover £73,539,000 £59,979,000 £45,880,055
100Pre-tax profit £9,530,000 £4,794,000 £8,130,320
Net Worth £64,177,000 £62,878,000 £49,117,414
LONG TALL SALLY LMITED
30/09/2016 30/01/2016 31/01/2015 Experian Score
Turnover £20,043,128 £34,875,888 £30,127,723
25Pre-tax profit -£3,137,642 -£28,811 £568,833
Net Worth -£8,450,323 -£8,515,055 -£6,058,809
ORIENTAL RUGS OF NORWICH LIMITED
30/11/2016 30/11/2015 30/11/2014 Experian Score
Turnover - - -
88Pre-tax profit - - -
Net Worth £48,910 £12,932 £35,150
FUTUREDOG LIMITED 31/01/2016 31/01/2015 31/01/2014 Experian Score
Turnover - - -
70Pre-tax profit - - -
Net Worth £574,719 £605,874 £528,442
NORWICH INVESTMENT LIMITED
30/09/2016 31/03/2016 31/03/2015 Experian Score
Turnover - - -
43Pre-tax profit - - -
Net Worth £675,024 £729,747 £31,839
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| Tenure | Tenancy Schedule | Tenancies | Income Analysis | Retail Value | Covenant | VAT | EPC | Proposal | Contact
15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
VAT
The subject property is elected for VAT and therefore we anticipate the sale being by way of TOGC.
EPC
Full details are available upon request.
PROPOSAL
We are instructed to seek offers for our clients’ freehold interest in excess of £9,650,000 (Nine Million Six Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level would reflect the following yield profile after allowing for purchaser’s costs of 6.69%.
Net initial yield 6.75%
Reversionary yield 6.97%
Equivalent yield 6.92%
True equivalent yield 7.22%
| Home | Investment Summary | Location | Demographics | Retailing | Situation | Goad | Description | Accomodation
| Tenure | Tenancy Schedule | Tenancies | Income Analysis | Retail Value | Covenant | VAT | EPC | Proposal | Contact
15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule
For further information, please contact the sale agents, Jackson Criss:
John Boissier
020 7637 [email protected]
Brook Wannop
020 7637 [email protected]
Elliot Jackson
020 7637 [email protected]
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, 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 any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0115 November 2017.D
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IGN
ED
BY
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15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale
Tenancy Schedule