40/40A CLARENCE STREET...

40/40A CLARENCE STREET KINGSTON-UPON-THAMES

PRIME RETAIL INVESTMENT

BLOCK FOR SALE

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http://www.jacksoncriss.co.uk/

INVESTMENT SUMMARY

• Kingston is one of the most significant and renowned retail centres located in South West London.

• Rarely available retail block, occupying a 100% prime position on Clarence Street.

• Freehold.

• Let to the undoubted covenants of VF Northern Europe Services Ltd. t/a The North Face and EE Limited t/a EE, with a wault of 5.93 years.

• Excellent rental growth prospects given demand for the street.

• Ability to add floor space / redevelop, subject to planning.

• Reversionary

• The current rent is £440,000 pax with a rental value of £448,900 pax.

• Seeking offers in excess of £9,250,000 (Nine 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 4.5% and an equivalent yield of 4.59%, after allowing for purchasers costs of 5.8%.


40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE


LOCATION

Kingston is one of the UK’s leading commercial and retailing centres and is one of the only 6 Royal Boroughs in England and Wales. The town is located in the affluent South West of Greater London, approximately 5 miles south of Richmond, 11 miles west of Croydon and 12 miles south west of Central London. The town benefits from excellent communications, with it being in close proximity to the M25, M3 and A3. The town benefits from a regular commuter rail service to London Waterloo, with a fastest journey time of approximately 20 minutes.

London Heathrow Airport is located approximately 40 miles west of the town and London Gatwick Airport is located 17 miles to the south east, enabling easy access to a diverse range of domestic and international flights.

DEMOGRAPHIC PROFILE

Kingston has an estimated primary catchment population of 887,000, significantly above the Regional Centre average and ranking the town 13th out of the PROMIS centres on this measure. The estimated shopping population of Kingston is 467,000, ranking the town 15th out of the PROMIS centres, reflecting the dominance of Kingston across its densely populated catchment area.

The town also ranks 11th in terms of the volume of comparison retail spend available in the catchment area and is forecast to see significantly above average growth in that spending between 2015 – 2020.

Kingston has an affluent catchment population, with a 36% representation of ABC1 demographics.

J16/J1A

A355

A437

A412

A 4020

A408

A4180

A4

A

312

A413

L ONDON RD A4 BAT H RD

J15/J4B

A308

A4155 A40

94

A 4094

A33

0

A30 A308

A308

A31

6

A4

06

A406

A1

A1

A1

A406

A41

A41

A4

1

A5

A4 A4 A4

A3

A214

A3

A3

A205 A205

A40 A40

A 40

A40

J16/1A

J15/4B

River Tha m

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River Tha m

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A332

A30

A308

A329KINGSTON UPON

THAMES

CENTRALLONDON

KINGSTON UPONTHAMES

WIMBLEDON

MITCHAM

CLAPHAM

BATTERSEA

HOUNSLOW

FELTHAM

BRACKNELL

ASCOT VIRGINIAWATER

WINKFIELD

FIFIELD

BRAY

MAIDENHEAD

HIGHWYCOMBE

EGHAM STAINES

SLOUGH

WINDSOR

OLDWINDSOR

HEATHROW AIRPORT

HARROW

WATFORDRICKMANSWORTH

HAMMERSMITH

EALINGHAYES SOUTHALL

GREENFORD

RICHMOND

TWICKENHAM

TEDDINGTON

PUTNEY

CHISWICK

UXBRIDGE

M25

M25

M25

M40

M40

M4A404(M)

M4

M4

M1

M1

M3

M4

M4




RETAILING IN KINGSTON

Kingston is one of the UK’s most significant and renowned retail centres, and arguably one of the strongest High Street shopping destinations within the M25 outside of Central London.

The town centre retail floor space in Kingston is estimated at 1.40m sq ft. Kingston ranks 16 on the base of its PMA retail score and 16 on the PMA fashion score. The town’s high ranking on the PMA retail and fashion scores, reflects an extensive range of fashion and non-fashion retailers in the town. Key fashion retailers include H&M, Hollister, Primark, Topshop, Monsoon and River Island, as well as upper middle quality operators such as Cos, Karen Millen, Jigsaw, Reiss, LK Bennett and Massimo Dutti.

Kingston offers two quality department stores in John Lewis and Bentalls, with variety store operators including Marks and Spencer, BHS and Primark, the latter of which is currently extending their existing store by c 59,000sqft.

The main focus of prime retail activity in Kingston is the pedestrianised Clarence Street, home to Marks & Spencer’s two stores and the main entrance to The Bentall Shopping Centre. The prime retailing extends into The Bentall Shopping Centre, which comprises approximately 600,000 sq ft of retail floor space over four trading floors. The other main managed shopping centre is Eden Walk, which comprises approximately 290,000 sq ft of retail floor space and is anchored by BHS, Boots and Habitat.

SITUATION

The property occupies a 100% prime trading location on the pedestrianised Clarence Street, adjacent to River Island, whilst in close proximity to Marks & Spencer, Schuh and Topshop.




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DESCRIPTION

The property comprises 2 retail units, offering modern retail and ancillary accommodation, arranged over ground and first floor levels.

ACCOMMODATION

The property has been measured in accordance with the RICS code of measuring practice and provides the following approximate dimensions and net internal floor areas:-

40 Clarence Street (The North Face)

Gross frontage 22 ft 10 in (6.96 m)

Net frontage 19 ft 3in (5.87 m)

Internal width 91 ft 7 in (27.92 m)

Shop depth 92 ft 9 in (28.27 m)

Ground Floor Sales 1,915 sq ft (177.91 sq m)

Ground Floor ITZA 804 units

First Floor Ancillary 1,668 sq ft (154.96 sq m)

Total Area 3,583 sq ft (332.87 sq m)

40a Clarence Street (EE)

Gross frontage 23 ft 10 in (7.27 m)

Net frontage 20 ft 7 in (6.28 m)

Internal width 21 ft 1 in (narrowing to 8ft 10in after depth of 31ft 6in)

(6.42 m – 2.69 m)

Shop depth 53 ft 11 in (16.44 m)

Built depth 82 ft 3 in (25.08 m)

Ground Floor Sales 856 sq ft (79.52 sq m)

Ground Floor Ancillary 172 sq ft (15.98 sq m)

Ground Floor ITZA 610 units (not including ground floor store)

First Floor Store 267 sq ft (24. 80 sq m)

Total Area 1,295 sq ft (120.31 sq m)




TENURE

Freehold. The extent of the title is outlined in red for indicative purposes only on the enclosed goad plan extract.

TENANCY

The property is let in accordance with the tenancy schedule set out below, producing a current rental income of £440,000 per annum exclusive:-

Address Tenant Lease Start Date Expiry Date RR Dates Rent Passing pa Rent Passing £ sq ft

40 Clarence Street VF Northern Europe Service Limited t/a North Face

30/09/2011 29/09/2021 30/09/2016 £250,000 £281.72 Zone A

40a Clarence Street T Mobile (UK) Limited t/a EE 04/09/2007 03/09/2022 03/09/2017 £190,000 £299.82 Zone A

Total Rent £440,000




RENTAL VALUE

Kingston prime ZA rents have peaked at levels approaching £340ZA. The estimated rental value of the subject properties as of today’s date would lie in the region of £448,900 per annum exclusive, which reflects a Zone A rent of £295 per sq ft.

There has been limited open market rental evidence on Clarence Street, but the most recent evidence can be set out as follows:-

Unit G17, The Bentall Centre, T2TeaOpen market letting February 2015 at a rent of £225,000 pax, which reflects a headline Zone A of £297.50 per sq ft and a net Zone A of £285 per sq ft. The unit fronts Clarence Street and is in an inferior location to the subject property. The unit comprises a ground floor lock up of 1,130 sq ft.

36 Clarence Street (Vodafone)Open market letting June 2015 at a rent of £247,500 pax, which reflected a headline Zone A of £288.13 per sq ft and a net Zone A tone of £278.50 per sq ft.

22 Clarence Street (To be ITSU)Current assignment of Arcadia’s leasehold interest for a 9 month rent free period. The rent passing of £350,000 pax devalues to a Zone A rent of £311 per sq ft and the tenants are proposing significant works to the frontage to create double height glazing at a cost considerably in excess of the incentive received.

38 Clarence Street (River Island)Open market letting July 2010 at a rent of £650,000 pax, which reflected a net Zone A of £303 per sq ft.




COVENANT INFORMATION

The North Face is an American outdoor product company, founded in 1968 in San Francisco.

EE is a British mobile network operator and internet service provider and a subsidiary of BT Group. It is the largest mobile network operator in the UK, with around 28 million customers and the largest operator of 4G services in Europe.

The summary accounting information for both companies is set out below:-

VF Northern Europe Services Limited

31/12/2014 GPB 000

31/12/2013 GPB 000

31/12/2012 GPB 000

Turnover 51,510 40,128 25,280

Pre Tax Profit 3,271 N/A -3,060

EE Limited 31/12/2014 GPB 000

31/12/2013 GPB 000

31/12/2012 GPB 000

Turnover 6,327,000 6,482,000 6,657

Pre Tax Profit -255,000 N/A -251

Kingston is one of the most significant and renowned retail centres located in

South West London




VAT

The property is elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged that the sale will be dealt with as a Transfer Of a Going Concern (TOGC).

EPC

A copy of the EPC reports are available upon request.

PROPOSAL

We are instructed to seek offers for our clients freehold interest in excess of £9,250,000 (Nine Million Two 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 5.8%.

Net initial yield - 4.5%

Reversionary yield - 4.59%

Equivalent yield - 4.59%

True equivalent yield - 4.72%

The most recent comparable sale evidence relates to 22 Clarence Street Kingston(Hema) which sold in January 2016 for £10,500,000 which reflected a net initial yield of 4.33% and an equivalent yield of 3.90% based on a rental value of £295 ZA. The lease had approximately 2.5 years remaining and was over rented, with the rent passing reflecting a ZA rent of c £327 per sqft.




For further information, please contact:

Philip Hay

020 7637 [email protected]

Matt Coates


Brook Wannop


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. JC0084. February 2016.D

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BY

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http://www.tccommunications.co.uk/


Date post:	22-Jun-2020
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