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PRIME RETAIL INVESTMENT FOR SALE CLARENCE STREET KINGSTON- UPON-THAMES
PRIME RETAIL INVESTMENT FOR SALE
CLARENCE STREET
KINGSTON-UPON-THAMES
INVESTMENT SUMMARY
• The Royal borough of Kingston-Upon-Thames is a leading affluent retail centre in South West London.
• Freehold.
• Rarely available retail investment, occupying a prime position on the pedestrianised Clarence Street, close to its junction with Eden Street.
• Excellent prospects given the strong demand for the town and proposed developments near to the subject property.
• Let to the undoubted covenant of HSBC Bank plc (sublet to Wafflemeister Limited) with a WAULT of c 2.33 years to expiry.
• The current rent passing is £155,000 per annum exclusive.
• Scope to convert the upper floor accommodation to residential use subject to planning.
• Seeking offers in excess of £1,620,000 (One Million Six Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 9.00%, after allowing for purchaser’s costs of 6.15%.
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
LOCATIONKingston-Upon-Thames 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 PROFILEKingston 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 and an average house price of £487,000 (Q3 2017) according to data from The Royal Borough of Kingston upon Thames.
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
es
River Tha m
es
A332
A30
A308
A329
KINGSTON UPONTHAMES
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
AFFLUENT COMMUTER LOCATION
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
RETAILING IN KINGSTONKingston-Upon-Thames is one of the UK’s most 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 Cos, H&M, Hollister, Primark, New Look, Monsoon and River Island, as well as upper middle quality operators such as Karen Millen, Jigsaw, Reiss and Massimo Dutti.
Kingston offers 2 quality department stores in John Lewis and Bentalls, with variety stores including Marks & Spencer and Primark.
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 and trades over 4 floors. The owners are making aesthetic improvements to the malls and the scheme’s entrance to Fife Road. A new Curzon 5 screen cinema including an open air roof top cinema will open in March 2020 with 2 new restaurants opening at the same time.
The other main managed shopping centre is Eden Walk, which comprises approximately 290,000 sq ft of retail floor space and is anchored by Boots and Habitat. British Land and the Universities Superannuation Scheme (USS) have planning permission to carry out a transformative redevelopment of Eden Walk to feature new stores, dining terrace, boutique cinema and a “sky” restaurant. The complex will also include 385 residential flats. The proposed timescale for completion is approximately 2023/2024.
Primark have recently extended their store on Eden Street by approximately 59,000 sq ft, which has further strengthened the secondary thoroughfare of Eden Street.
SITUATIONThe property occupies a prime trading location on the pedestrianised Clarence Street, close to its junction with Eden Street. Nearby retailers include Marks & Spencer, River Island and Superdrug.
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
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50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
DESCRIPTIONThe property comprises a brick built property arranged over ground and two upper floors. There is also a trap door located in the ground floor sales area which leads to a basement, however this could not be accessed. The property is serviced via an open corridor from the rear, accessed from Eden Street.
ACCOMMODATIONThe property has been measured in accordance with the RICS code of measuring practice and provides the following approximate net internal floor areas:
Ground Floor Sales 636 sq ft (59.09 sq m)
Ground Floor ITZA 469 units
First Floor Office 548 sq ft (50.91 sq m)
Second Floor Storage 539 sq ft (50.07 sq m)
Total Area 1,723 sq ft (160.07 sq m)
TENURE Freehold.
TENANCY The property is let to HSBC Bank plc (Company No. 00014259) on a Full Repairing and Insuring lease, for a term of 11 years from 3rd August 2010, expiring 30th September 2021, at a current rent of £155,000 pa. HSBC have subsequently sub-let the property in September 2014 to Wafflemiester Limited (Company No 06966496) at a rent of £82,500 per annum.
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
COVENANT STRENGTHHSBC Bank plc
HSBC is recognised as one of the largest banking and financial services organisations in the world with over 3,900 offices worldwide. The company serves around 38 million customers and is a constituent of the FTSE 100 Index.
The company was founded in 1880 and is based in London, United Kingdom
The summary account information can be highlighted as follows:
31/12/2017 £ 000's
31/12/2016 £ 000's
31/12/2015 £ 000's
Experian Score
out of 100
Turnover - - -
86Pre Tax Profit £2,370,000 £874,000 £2,971,000
Total Net Worth £38,113,000 £34,195,000 £30,486,000
Wafflemeister Limited (Sub – lease)
Wafflemeister are a food retailer which opened its first store in 2009 and now operates 19 stores throughout the south of England and across the Middle East.
Experian gives Wafflemeister Limited a rating of 80 out of 100, which reflects a below average risk of business failure.
31/12/2017 31/12/2016 31/12/2015Experian
Score out of 100
Turnover - - -
80Pre Tax Profit - - -
Total Net Worth £1,127,239 £756,208 £137,429
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
VATWe understand that 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).
EPCThe property has an EPC rating of D97. A copy of the EPC certificate and report is available from this office.
PROPOSALWe are instructed to seek offers for the freehold interest in excess of £1,620,000 (One Million Six Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect the net initial yield of 9.00%, after allowing for purchase costs of 6.15%.The sale price reflects a low capital value of £940 per sq ft. The principal comparable evidence can be set out below:-
21/27 Church Street Kingston (White Stuff / Molton Brown) Freehold retail investment sold in November 2018 for £10m which reflected a net initial yield of 4.26% and a capital value of £2,027 per sq ft. The block was fully rented and had a Wault of 5 years. The purchaser was Amsprop.
22 Clarence Street Kingston (Itsu) Freehold retail investment let to Itsu on a lease to expire March 2022 at a rent of £350,000 pa which reflected a Zone A rent of £305 per sq ft. The property was purchased in July 2018 for £7.15m, which reflected a net initial yield of 4.6% and an equivalent yield of 4.15%. The sale price reflected a capital value rate of £1,429 per sq ft.
54 Clarence Street (HSBC) Freehold retail investment let off a rent of £377,206 pa which devalues to a Zone A rent of c £315 per sq ft was sold in November 2018 for £7,445,000 which reflected a net initial yield of 5.07%. The property was let to HSBC Bank on a lease to expire December 2027, with annual RPI rent reviews collared and capped at 3% and 5%. The sale price reflected a capital value of £1,760 per sq ft.
50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
For further information, please contact:
Philip Hay BSc (Hons) MRICS
020 7637 [email protected]
Mike Jameson BSc (Hons) MRICS
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. 101571. May 2019.D
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50 CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT - FOR SALE
