prime retail investment for sale 29 high street, harpenden ... · one redcliff street...
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Prime Retail Investment For Sale
29 High Street, Harpenden, Hertfordshire AL5 2RU
on behalf of Joint Fixed Charge Receivers
100% prime retail pitch
Let to WH Smith (SH Funds £419m)
Reversionary Income
£1,480,000, subject to contract
6.0% net initial yield
6.4% reversionary yield
www.singerviellesales.com
LocationHarpenden is a prosperous commuter town in the county ofHertfordshire and the district of St Albans, situated approximately 40 km(25 miles) north west of Central London, 8 km (5 miles) south of StAlbans, 8 km (5 miles) north of Luton and 11 km (7 miles) south west ofHemel Hempstead.
The town benefits from good road communications and is served by theM1 Motorway (Junction 9) which is 5 km (3 miles) to the west providinga direct link to the national motorway network including the M25Motorway (London Orbital Route) 12 km (7.5 miles) to the south. Inaddition, the A1(M) connects to Junction 23 of the M25 Motorway.Harpenden is located on the A1081 which connects to the A5 providinga direct passage to Milton Keynes and Luton to the north and St Albansto the south.
Mainline rail services from Harpenden Railway Station to London StPancras run daily with a fastest journey time of approximately 26 minutes.In addition, there are regular daily services between Harpenden andLuton Airport and St Albans.
London-Luton Airport is 9.6 km (6 miles) to the north providing flights tonumerous national and international destinations throughout Europe andthe rest of the world.
SituationThe property occupies a 100% prime position on the High Street,Harpenden’s principal retailing thoroughfare. The town benefits from avariety of retailers ranging from national chains to locally ownedbusinesses. Nearby occupiers include a Sainsbury’s Supermarket(adjacent) which has 167 car parking spaces, Boots, Waitrose (opposite),Costa, The Slug & Lettuce and Pizza Express.
DescriptionThe property comprises a rectangular retail unit providing ground floor saleswith storage to the rear and first floor offices. Internally, the unit has beenfitted out by the tenant to their usual corporate style.
The property benefits from rear access via Bowers Way where it shares asecure rear yard for loading and unloading with Sainsbury’s and HarpendenInteriors.
The first and second floor to the front of the property is residential whichdoes not form part of the interest for sale.
AccommodationAt rent review the following Net Internal Areas were agreed betweenLandlord and Tenant:
Gross Frontage 7.8 sq m 26 ftNet Frontage 6.8 sq m 22 ftGround Floor Zone A 44.41 sq m 478 sq ft
Zone B 44.31 sq m 477 sq ftZone C 49.05 sq m 528 sq ft
Zone D 49.05 sq m 528 sq ft
Remainder 101.26 sq m 1,090 sq ftTotal Sales 288.09 sq m 3,101 sq ftITZA 1,005 sq ftAncillary 87.05 sq m 937 sq ft
First Floor Office 75.62 sq m 814 sq ftTotal 450.76 sq m 4,852 sq ft
TenureThe interest for sale comprises the ground and first floor rear, excludingthe first and second floor at the front of the property which is residential.
The property is held on a 999 year lease from 25th March 2005 at apeppercorn.
TenancyThe property is let to WH Smith Retail Holdings Limited for a term of 25years from 20th July 1992, expiring 19th July 2017. The current passingrent is £94,000 per annum equating to £90.00 Zone A which increasedfrom £80,200 per annum at the July 2012 rent review. The lease is drawnon full repairing and insuring terms.
There is the opportunity to take discussions further regarding a leasere-gear with the tenant.
CovenantWH Smith Retail Holdings Limited (Co. No.00471941) has reported thefollowing figures;
The Company is a wholly owned subsidiary of WH Smith Plc. For the yearending 31st August 2013, the Group reported a Revenue of £1,186million, Pre-Tax Profits of £108 million and Shareholders’ Equity of £103million. WH Smith Plc is listed on the London Stock Exchange and isincluded in the FTSE 250 Index.
Founded in 1828, WH Smith employs approximately 15,000 staff withover 600 stores on the high street and over 600 stores at airports, trainstations, hospitals and motorway services. It is one of the UnitedKingdom’s leading retail groups and a household name. Beyond the UKthe group continues to open stores across Australia, South East Asia,India and the Middle East. For further information visitwww.whsmith.co.uk.
Rental ValueBased upon market evidence which is set out below we believe the currentpassing rent to be reversionary today to £100,000 per annum equatingto £95 Zone A allowing 5% for quantum.
Value Added TaxThe property has been registered for VAT and it is envisaged the sale willbe treated as a Transfer of a Going Concern (TOGC).
31st Aug 2012 31st Aug 2011Turnover £172,329,000 £180,189,000Pre-Tax Profits (Loss) (£18,438,000) £180,646,000Shareholders’ Funds £419,072,000 £442,012,000
Property Type Date Zone ACountry Casuals, 30 High St Open market letting Feb 2012 - £98.65Lloyds Bank, 18 High St Lease renewal June 2012 - £93.00Putterills, 42 High St Rent Review Aug 2012 - £95.50Connells, 50 High St Lease renewal Sept 2012 - £94.00Martins, 46 High St Lease renewal Dec 2012 - £94.00Santander, 31A High St Arbitration award Mar 2013 - £92.50
ContactSinger Vielle94-96 Wigmore Street [email protected] W1U 3RFTel: 020 7935 7200 [email protected]: 020 7486 8511www.singerviellesales.com [email protected]
[email protected] Solicitor
TLT LLPOne Redcliff Street [email protected] BS1 6TPTel: 0117 917 7760 [email protected]
This property is being marketed on behalf of Joint LPA Receivers D Genis and MStone who are acting as agents of Aspen (Bromley) Limited, without personalliability and therefore no warranties or guarantees in any respect including butnot limited to VAT can be given. The Joint LPA Receivers are not bound toaccept the highest or any offer and are acting without personal liability.
ProposalOur client is seeking offers in the region of £1,480,000 (One Million, FourHundred and Eighty Thousand Pounds), subject to contract, reflecting anet initial yield of 6.0% and a reversionary yield of 6.4%.
Investment Considerations
Subject to Contract & Exclusive of VAT
Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:1. 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 contract2. 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 or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them.3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.4. All maps are for identification purposes only and should not be relied upon for accuracy.5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.Under no circumstances shall Singer Vielle be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Property.
Unless otherwise stated, all prices and rents are quoted exclusive of VAT.
These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.
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