65 HIGH STREETBROMLEY BR1 1JY

PRIME RETAIL INVESTMENT

INVESTMENT SUMMARY

• An attractive, single let retail property situated on a good secondary pitch adjacent to the two main shopping centres in Bromley, The Mall and the Glade while also in the vicinity of national retailers including TK Maxx, Sports Direct and Wilko.

• The London Borough of Bromley is one of the strongest sub markets within Greater London.

• Significant inward investment with U+I and Crest Nicholson developing new residential and leisure led scheme.

• Freehold.

• Single let to Blacks Outdoor Retail Ltd with an attractive unexpired term of 4.4 years providing excellent income security.

• Total passing rent of £55,000 per annum.

• The tenant has been in occupation since 1973.

• Offers in excess of £700,000 (Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level will reflect a NIY of 7.50% after allowing purchasers costs of 5.30%.

LOCATION

Bromley is a popular and thriving London suburb located within the London Borough of Bromley, the largest borough in Greater London located approximately 11 miles (17.70 km) south east of Central London and approximately 8 miles (12.87 km) east of Croydon.

Bromley is the commercial and administrative centre of the Borough and nearby town centres include Beckenham to the west 2.5 miles (4.02 km), Streatham to the north west 8.7 miles (14.00 km) and Greenwich to the north 7.6 miles (12.23 km).

Bromley is located within the M25, approximately 9 miles (14.48 km) from both Junction 3 and 4 accessed directly from the A20 and A21 which lies to the west and the east of the town providing connectivity to the national motorway network and south east airports.

Bromley is served by two railway stations. Bromley North and South Bromley Rail Station, the latter serves over six million passengers a year and is a major interchange providing regular train service to London Victoria and London Blackfriars Station, with fastest journey times of less than 18 mins. The station has benefitted from a multi-million pound accessibility improvements scheme in recent years.

London City Airport is located approximately 12.3 miles (19.79 km) north of the centre, Gatwick Airport approximately 23 miles (37.01 km) to the south west and Heathrow is 42 miles (67.59km) north west of the town.

SITUATION

The property occupies a highly prominent position on the east side of Bromley High Street adjacent to the shopping centre The Mall and The Glades Shopping Centres.

Its location between the town centre and Bromley South railway station (200m to the south) allows the property to benefit from significant footfall.

Opposite the station is the St Mark’s Square leisure led development scheme under construction by U+I and due for completion imminently. The development will significantly increase footfall.

There are a number of bus stops outside the property resulting in significant dwell time.

National retailers within the vicinity include TK Maxx, Argos, Sports Direct and Wilko’s.

CENTRAL LONDON

CROYDON

DARTFORD

GATWICKAIRPORT

HEATHROWAIRPORT

CITY AIRPORTCANARYWHARF

WIMBLEDON

A23

A24

A24

A24

A22

A22

A23

A232

A232

A3

A3

A21

A20

A20

A3

A3

BROMLEY

TWICKENHAM

MITCHAM

ESHER

HAMPTON COURT

KINGSTONUPON THAMES

EPSOM

LEATHERHEAD

CRAWLEY

REIGATE

REDHILL

M25

M25

M25

M25 M26

M20

M23

M23

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M3

DEMOGRAPHICS

Bromley has a total population within it primary catchment of 711,000, above the Regional Centre average with an estimated shopping population of 370,000 (19th PROMIS Centre). The Town is ranked 4th for shopper population across London centres (excluding Central London) (PMA 2017).

Bromley has a significantly above average proportion of its population within the most affluent AB social group whilst there is an under-representation of the least affluent C2 and D&E categories. Bromley is projected to see significant above average growth in population over the period 2016-2021.

Bromley contains a practically high proportion of adults within the working age (25-44) and is seen as a home for a number of affluent commuters.

JOURNEY TIMES - RAIL

Bromley SouthLondon Victoria 17 MinutesLondon Blackfriars 34 MinutesSt Pancras International 44 MinutesGatwick Airport 1 Hour 2 Minutes

Bromley NorthLondon Victoria 22 MinutesLondon Blackfriars 39 MinutesSt Pancras International 49 MinutesGatwick Airport 1 Hour 7 Minutes

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KEY

1. Subject Property2. Bromley South Train Station3. The Mall Shopping Centre4. The Glades Shopping Centre5. TK Maxx6. Sports Direct7. Laura Ashley8. Boots9. Wilko10. St Marks Square Development11. Crest Nicholson’s Regent Place

Development (160 Apartments)

12. Waitrose13. Pavillion Leisure Centre14. Metro Bank15. Clarks16. Marks & Spencer17. Bromley Civic Centre18. Civic Centre Multi Storey Car Park19. Churchill Theatre 20. NCP Car Park (255 Spaces) 21. 400 Car Park Spaces (300 Public Spaces)

For indicative purposes only

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RETAILING IN BROMLEY

Bromley is ranked 4th for shopper population across London centres (excluding Central London) and is projected to see significantly above average growth in population within its Retail Market Area over the period 2017 -2022 (PMA 2017).

The shopping core is dominated by both the High Street and The Glades shopping centre. The Glades Shopping centre comprises over 500,000 sq ft and is anchored by Marks & Spencer (160,000 sq ft) and Debenhams (100,000 sq ft). The centre also offers a mix of well-known brands and national occupiers including: Zara, New Look, H&M and Boots as well as Apple, Phase Eight, Jo Malone, Hobbs and Mac.

The High Street provides a busy and popular throughfare home to a number of major national retailers including; Primark, Next, Topshop and Office and also benefits from a number of banks and local amenities located on the southern end of the High Street. In addition to the Glades, the Mall Shopping Centre is a smaller, partially covered scheme totalling approximately 116,000 sq ft.

The retail provisions within the High Street combined with Bromley’s thriving leisure sector due to further expand with the completion of St Mark’s Square makes Bromley one of South London’s busiest retailing locations.

Prime Zone A rents in Bromley are achieved within Glades Shopping centre and are approximately £200 per sq ft Zone A. The pedestrianised High Street section prime rents are between £115 -£130 per sq ft Zone A and the southern part of the High Street the prime rental tone is approximately £70 -£75 per sq ft Zone A.

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ST MARKS SQUARE DEVELOPMENT

200RESIDENTIAL

UNITS

CREST NICHOLSON SCHEME160 UNITS

NCP CAR PARK (255 SPACES)

400 SPACE CAR PARK (300 PUBLIC SPACES)

AREA

The current accommodation provides the following NIA areas:

Description Floor Use NIA (Sq ft) ITZA

65 High Street Basement Storage 515

Ground Retail 1,665 637

First Storage 563

Second Storage 330

Total 3,073 637

TENURE

Freehold.

TENANCY

Unit TenantLease Start

Lease Expiry

Inside/ Outside Act Passing Rent Comments

65 High Street

Blacks Outdoor Retail Ltd

24/06/2013 23/06/2023 Inside £55,000Rent review 23/06/2018 outstanding.

The tenant has been in occupation since 1973.

DEVELOPMENTS IN BROMLEY

St Mark’s Square is a new “Urban Lifestyle Quarter” offering a mix of retail, leisure and residential located at the southern end of the town centre, adjacent to Bromley South Railway Station. The development will comprise 200 apartments, 130 beds Premier Inn Hotel and a new 400 secure underground car park with completion due imminently. In addition a landscape public plaza will provide a nine screen multiplex cinema and 25,000 sq ft of cafes and restaurants including Pizza Express, Deans Diner, Nando’s and Turtle Bay. The scheme is expected to inject £220m in the local economy over the next 10 years. The scheme provides a further anchor to the south end of the High Street further improving footfall.

The former Bromley Town Hall (Located to the north of the High Street) has planning consent for the conversion into a 94 bed boutique hotel and restaurants along with a five story block of 53 apartments.

In addition, The London Borough of Bromley has recently completed a £5.5 million public realm improvement scheme of Bromley North Village in partnerships with local businesses. The council is now draft proposals for various improvements along the High Street together with relocation and upgrades of the market improving pedestrian flow and footfall.

Since 2014/2015 there have been approximately 400 completed permitted development units within Bromley with an additional 395 units currently in the pipeline.

Bromley Council have a five year supply target of 3,365 units from 2017 which will be achieved through permitted development schemes along with other sources including allocated sites and Draft Local Plan allocations (London Borough of Bromley, Five Year Housing Land Supply 2017).

DESCRIPTION

The property comprises a red brick, Victorian terraced property with well configured retail accommodation over basement, ground and two upper floors.

The ground floor specification includes a suspended ceiling with integrated fluorescent strip lighting. The unit benefits from rear loading.

COVENANT

Blacks Outdoor Retail Limited is the largest outdoor retailer in the UK with stores nationwide and owns Blacks, Millets and Ultimate Outdoors.

It is a subsidiary of JD sports which is listed on the FTSE 250.

For the last three years, Blacks Outdoor Retail Limited have reported the following:

2018 £ 2017 £ 2016 £

Revenue 157,561,000 137,793,000 129,932,000

Profit before Tax 3,513,000 -3,481,000 -10,696,000

Net Assets -30,679,000 -34,491,000 -36,323,000

For the last 3 years JD Sport Fashion PLC have reported the following:

2018 £ 2017 £ 2016 £

Revenue 3,161,400,000 2,378,700,000 1,821,652,000

Profit before Tax 294,500,000 238,400,000 131,631,000

Net Assets 770,400,000 552,200,000 382,420,000

INVESTMENT MARKET

Date Address Tenant Sq Ft Price Yield %

Dec 1777-81 High Street, Bromley

Warren Evans, Nationwide building society, Boots the Chemist

19,549 5,125,000 6.85

Nov 1772-76 High Street, Bromley

Metro 4,900 4,100,000 4.85

June 17103-105 High Street, Bromley

Gap 7,714 2,775,000 5.76

Sep 1854-64High Street,Bromley

8 tenants including: Laura Ashley, Lloyds TSB, Holland & Barrett

- 6,700,000 6.80%

Available78-84 High Street, Bromley

Boots Opticians, Metro Bank, Harvey & Thompson, St Christopher’s Hospice

- 4,350,000 6.00%

EPC

A copy of the EPC is available on request.

VAT

The property has been elected for VAT and therefore VAT will be chargeable on the purchase price. We anticipate that the transaction will be treated as a transfer of going concern (TOGC).

FURTHER INFORMATION

For further information or to arrange an inspection, please contact the sole agents:

Mathew Rogers

020 7911 2726mathew.rogers@avisonyoung.com

Mark Frampton

020 7911 2181mark.frampton@avisonyoung.com

PROPOSAL

Offers sought in excess of £700,000 (Seven Hundred Thousand Pounds) for the Freehold interest in the property subject to contract and exclusive of VAT. A purchase at this level will reflect a NIY of 7.50% after allowing purchasers costs of 5.30%.

Avison Young is the trading name of GVA Grimley Limited registered in England and Wales number 6382509. Registered office, 3 Brindleyplace, Birmingham B1 2JB. Avison Young hereby gives notice that the information provided (either for itself, for any joint agents or for the vendors lessors of this property whose agent Avison Young is) in this brochure is provided on the following conditions: (1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. (2) All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. (3) No person in the employment of Avison Young, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure. (4) All prices quoted are exclusive of VAT. (5) Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by Avison Young.

Avison Young: June 2019 © Produced by Barbican Studio 020 7634 9573

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