pavilion shopping centre - allsop · f hinds jeweller 688 1,112 678 1,790 01/07/10 30/06/20 0.63...

PAVILION SHOPPING CENTRE HIGH STREET, TONBRIDGE, TN9 1TE

SHOPPING CENTRE INVESTMENT

PAVILION SHOPPING CENTRE, HIGH STREET, TONBRIDGE, TN9 1TESHOPPING CENTRE INVESTMENT

INVESTMENT CONSIDERATIONS ■ Tonbridge is a charming historic and affluent town within the

county of Kent

■ Tonbridge is prominently located within close proximity to the M25 motorway and the affluent Royal Tunbridge Wells

■ The subject property comprises a shopping centre totalling 5,028.0 sq m (54,121 sq ft) providing 20 units

■ National tenants account for 72% of the income and include EE, Santander, Boots, Shoe Zone, The Works and Card Factory

■ Total contracted rent of £734,475 per annum

■ Net Operating Income of £652,968 per annum

■ WAULT of 5.36 years to expiry and 3.79 years to break

■ Short term asset management opportunities to implement lease renewals and rent reviews

■ Potential first floor redevelopment to residential, STC

■ Freehold

PROPOSAL ■ We are instructed to seek offers in excess of

£6,600,000 (Six Million, Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Triple Net Initial Yield of 9.30% and a low capital rate of £122 psf, allowing for standard purchaser’s costs.

M11

M25

M23

M2

M25M26

M20

M25M40

M4

M3

M40

M1

A1

A428

A43

A11

A1(M)

A21A23 A26

PORTSMOUTH

LONDON

CAMBRIDGENORTHAMPTON

IPSWICH

TONBRIDGE

MILTONKEYNES

READING

ROYALTUNBRIDGE

WELLS

CRAWLEY

BRIGHTONEASTBOURNE

FOLKESTONETHREE BRIDGES

SWINDON

B226

0

VALE RD

AVE DU PUY SOVERIGN WAY VALE RD

B226

0

A22

7

BORDYKE

A26

TONBRIDGEGOLF CENTRE

TONBRIDGEPARK

PLAYGROUND

RIVER MEDWAY

RIVER MEDWAY

TONBRIDGE

LOCATIONTonbridge is an attractive historic commuter and market town within the county of Kent, located approximately 33 miles (53 km) south east of London and surrounded by other major commuter towns such as Sevenoaks 7 miles (11 km) north, Maidstone 15 miles (24 km) north east and Tunbridge Wells 5 miles (8 km) south.

Tonbridge benefits from excellent road connections with the A21 providing direct access to Junction 5 of the M25 and M26, 10 miles (16 km) north which closely intersects with the M20. The A26 connects the town centre to Tunbridge Wells and the south coast.

Tonbridge Railway Station lies at the southern end of High Street and provides frequent services to London Bridge, Waterloo, Charing Cross and Cannon Street with fastest journey times of between 30-35 minutes and also Ashford International in 35 minutes.

Gatwick Airport is located 24 miles (38 km) west. Additionally, numerous bus routes run along High Street. The town centre benefits from plentiful car parking facilities supporting the retail centre and commuter population. There are 5 public car parks directly accessed via the High Street and 19 car parks centrally providing a total of 1,691 spaces.


M25 & M2610 miles (16 km)

LONDON TERMINAL35 minutes*

GATWICK AIRPORT24 miles (38 km)

Fastest journey time to London Bridge. Source: National Rail.

SITUATIONThe retail offer in the town is linear in nature and stretches from Tonbridge Railway Station to the junction of High Street with the A227. The prime pitch is situated to the south of Castle Bridge where retailers such as WH Smith, Boots, EE, Caffè Nero, Vodafone, Starbucks, Subway and the subject property are located.

There are two covered retail schemes in the town: Angel Walk Shopping Centre and The Pavilion. Retailers in the Pavilion include Shoe Zone, Santander and F Hinds. The Pavilion links the High Street through to Sainsbury’s and the Angel Walk car park. Occupiers within the Angel Walk Shopping Centre include Superdrug, Timpson and Holland & Barrett.

DESCRIPTIONA dominant Community Shopping Centre providing purpose built mixed use accommodation totalling 54,121 sq ft (5,028.0 sq m), arranged over ground and first floors. The ground floor retail accommodation consists of 20 retail units arranged around a central mall and atrium with frontage on to High Street and Angel Lane. The first floor ancillary and storage accommodation is predominantly accessed via two service yards, accessed to the rear of the property via Angel Lane.

The property is situated adjacent to a ground level car park providing 290 spaces, outside of the existing ownership, Tonbridge Rail Station is situated 150m to the south west providing direct services to London Charing Cross, Hastings and Ashford International.

The Shopping Centre has attracted a wide array of national multiples including Monsoon, Specsavers, Boots, Santander and The Works.


FLO

WER

SMIT

HS

(230) (ESTIMATED)


© Crown Copyright, ES 100004106. For identification purposes only.

ACCOMMODATION & TENANCY INFORMATIONThe scheme is let in accordance with the schedule of Accommodation and Tenancies to 18 individual tenants generating a contracted rent of £734,475 per annum, with a Weighted Average Unexpired Lease Term (WAULT) of 5.36 years to expiry, 3.79 years to break.

In summary, the scheme provides the following annual rental profile:

CONTRACTED RENT £734,475

LANDLORD SERVICE CHARGE LIABILITY £39,415

LANDLORD RATES LIABILITY £18,396

LANDLORD INSURANCE LIABILITY £696

NET OPERATING INCOME £652,968

INCOME BY TENANT PROFILE

NATIONAL LOCAL

INCOME BY TERM CERTAIN


<1 YEARS 1-5 YEARS 5+ YEARS

SERVICE CHARGEThe Service Charge is apportioned on a weighted floor area basis and is consistently maintained on a low and affordable basis, currently equating to £3.13 psf.

TENUREFreehold. Title Number K565512.

Please refer to the Allsop Marketing Data Room for supporting documentation.

TENANCY SCHEDULE

UNIT TENANT TRADING NAME

ITZA (SQ FT)

GF SALES (SQ FT)

F1 ANC. (SQ FT)

TOTAL AREA

LEASE START

LEASE EXPIRY

REVIEW BREAK WAULT (EXPIRY)

WAULT (BREAK)

NET OPERATING

INCOME (£ PA)

CONTRACTED RENT (£ PA)

ZONE A RENT (£ PSF)

CONTRACTED RENT (£ PSF)

TOTAL LANDLORD LIABILITIES

(£ PA)

COMMENTS

Unit 1 Monsoon Accessorize Limited

Monsoon Ladies Wear & Accessories

1,143 2,319 2,121 4,440 01/11/17 31/10/22 2.97 2.97 £63,500 £63,500 £49.99 £14.30 The lease is inside the Landlord and Tenant Act 1954.

Unit 2 Sportswift Limited Card Factory 521 917 692 1,609 01/04/16 31/03/21 1.38 1.38 £32,500 £32,500 £58.40 £20.20 The lease is inside the Landlord and Tenant Act 1954.

Unit 3 Specsavers Optical Superstores Limited

Specsavers Opticians

629 1,104 958 2,062 01/07/10 30/06/20 0.63 0.63 £37,750 £37,750 £55.45 £18.31 The lease is inside the Landlord and Tenant Act 1954.

Unit 4 EE Limited EE Telephones 781 1,401 1,111 2,512 18/05/12 17/05/22 2.51 2.51 £50,000 £50,000 £59.75 £19.90 The lease is inside the Landlord and Tenant Act 1954.

Unit 5 Shoe Zone Retail Limited

Shoe Zone 926 1,781 738 2,519 15/12/16 14/12/21 2.09 2.09 £48,250 £48,250 £49.72 £19.15 The lease is inside the Landlord and Tenant Act 1954.

Unit 6 Vacant 645 1,020 611 1,631 -£18,923 -£18,923

Unit 7 Guild 750 Limited

F Hinds Jeweller

688 1,112 678 1,790 01/07/10 30/06/20 0.63 0.63 £29,600 £29,600 £40.07 £16.54 The lease is inside the Landlord and Tenant Act 1954. The rent review is an open market review but is not upwards only - minimum rent is to be £25,000 p.a.

Unit 8 M.F.D Associates Limited

Tonbridge Gentle Dental

664 1,082 675 1,757 25/09/17 24/09/32 25/09/22 25/09/27

25/09/27 12.87 7.85 £18,500 £18,500 £24.81 £10.53 The lease is outside the Landlord and Tenant Act 1954. There is a second rent review on the 25th September 2027. The tenant must give the landlord 6 months prior written notice to break.

Units 9 & 10

Sussex Beds (Tonbridge) Limited

Sussex Bed Centre

2,276 3,883 2,398 6,281 15/11/17 14/11/27 15/11/22 8.01 8.01 £55,165 £60,000 £23.20 £9.55 -£4,835 The lease is inside the Landlord and Tenant Act 1954. Service Charge cap of £12,393.99 (2020 budget) linked to RPI and capped at 103% of the previous year.

Unit 11 Santander UK Plc Santander Bank 1,502 3,636 3,453 7,089 01/07/15 31/12/20 1.13 1.13 £80,000 £80,000 £46.37 £11.29 The lease is inside the Landlord and Tenant Act 1954.

Unit 11a

Sense, The National Deaf Blind & Rubella Association

Sense Charity Shop

735 1,364 1,364 25/03/18 24/03/28 25/03/23 25/03/23 8.37 3.36 £25,000 £25,000 £34.01 £18.33 The lease is outside the Landlord and Tenant Act 1954. The tenant must give the landlord 6 months prior written notice to break.

Unit 12 Scrivens Limited Scrivens Opticians

620 853 450 1,303 23/09/14 22/09/19 £16,133 £20,000 £30.08 £15.35 -£3,867 The lease is inside the Landlord and Tenant Act 1954. Service Charge cap of £4,500 (2020 budget).

Unit 13 Malpass Direct Limited

Malpass Markets Butcher

620 852 435 1,287 13/08/14 12/08/24 13/08/19 4.75 4.75 -£17,624 £23,000 £34.99 £17.87 -£17,624 The lease is outside the Landlord and Tenant Act 1954. Tenant in administration and awaiting disclamation of the lease, NOI exclusive of the contracted rent. The tenant paid an initial rent deposit to the landlord of £5,750 plus an amount equal to VAT.

Unit 14 Robert Charles Smith

Flowersmiths 620 852 412 1,264 28/02/19 27/02/29 28/02/24 28/02/24 9.30 4.30 £15,000 £15,000 £22.20 £11.87 Rent for Year 1 £16,000 p.a., Year 2 £17,000 p.a., Year 3 £18,000 p.a., Year 4 £19,000 p.a., Year 5 upwards only RPI rent review. Yearly rent reviews afterwards. The Lease is outside the landlord and tenants act 1954. The tenant must give the landlord 6 months prior written notice to break.

Unit 15 Thistle Enterprises Limited

Finch House Café

871 1,639 1,489 3,128 05/03/19 04/03/32 05/03/24 05/03/29

12.32 12.32 £53,543 £57,500 £60.89 £18.38 -£3,957 The lease is inside the Landlord and Tenant Act 1954. The service charge cap is subject to annual RPI increases. Guarantor - Darren Goldfinch. Guarantors liability stops 28th February 2022 and maximum liability is £28,750 plus VAT. There is a second rent review on the 5th March 2019. Service Charge cap of £9,605.10 (2020 budget). An initial rent deposit of £28,750 plus an amount equal to VAT was paid to the landlord.

Unit 16 The Works Stores Limited

The Works Books

831 1,475 1,326 2,801 28/09/18 27/09/28 28/09/23 28/09/23 8.88 3.88 £50,000 £50,000 £55.38 £17.85 The lease is inside the Landlord and Tenant Act 1954. The tenant must give the landlord 6 months prior written notice to break. If the break option is not exercised, the tenant will benefit from a rent free period from 28 September 2023 to 27 December 2023.

Unit 17 Boots UK Limited Boots Chemist 1,870 4,888 2,311 7,199 14/12/17 13/12/27 14/12/22 14/12/22 8.09 3.09 £90,375 £90,375 £44.62 £12.55 The lease is inside the Landlord and Tenant Act 1954. The tenant must give the landlord 6 months prior written notice to break.

Florist Robert Charles Smith

Flowersmiths 01/05/19 30/04/24 01/05/20 01/05/19 4.47 4.47 £1,500 £1,500 The lease is outside the Landlord and Tenant Act 1954. Yearly upwards only RPI rent reviews. Landlord only rolling break option - at least 30 days written notice. The lease will automatically terminate if the lease of unit 14 terminates. There is no service charge payable.

31 Angel Lane

Ismini Phillips Studios Ltd

Ismini Philips Studios

4,085 4,085 05/12/18 04/12/28 05/12/23 05/12/23 9.07 4.06 £22,699 £32,000 £7.83 -£9,301 Fixed rental increases to £32,000 p.a. (05/12/19), £33,000 (05/12/20), £34,000 p.a. (05/12/21) & £35,000 p.a. (05/12/22). Service Charge cap of £6,102 (2020 budget)

15,942 30,178 23,943 54,121 5.36 3.79 £652,968 £734,475 £13.57 -£58,507

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 11.19

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

Tom Dales020 7543 6866

@allsop.co.uk

Gergo Petrovics020 7543 6847

[email protected]

allsop.co.uk

PROPOSALWe are instructed to seek offers in excess of £6,600,000 (Six Million, Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level

reflects a Triple Net Initial Yield of 9.30% and a low capital rate of £122 psf, allowing for standard purchaser’s costs.

EPCPlease refer to the Allsop Marketing Data Room

for supporting documentation.

VATWe understand the property has been elected for

VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

AMLA successful bidder will be required to provide

information to satisfy the AML requirements when Head of Terms are agreed.

1ST FLOOR POTENTIAL REDEVELOPMENTThe first floor could potentially be redeveloped to provide residential

accommodation, subject to gaining the necessary consents.

DATAROOMFor access to the Allsop dataroom please use the following link:

https://datarooms.allsop.co.uk/register/pavilionshoppingcentre


Jeremy Hodgson020 7543 6709

[email protected]

pavilion shopping centre - allsop · f hinds jeweller 688 1,112 678 1,790 01/07/10 30/06/20 0.63...

Documents