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FOLKESTONEEUROPA HOUSE
49-55 SANDGATE ROAD, KENT, CT20 1RX
Mixed use retail & office investment with significant development potentialON BEHALF OF JOINT FIXED CHARGE RECEIVERS
www.europahousefolkestone.com
FOLKESTONEEUROPA HOUSE
INVESTMENT CONSIDERATIONS
• Mixed use retail and office building located within Folkestone’s prime retail pitch totalling 36,250 sq ft (3,367.7 sq m).
• Freehold.
• Let to NatWest Bank, Caversham Trading Ltd and Claires Accessories. UK Ltd at a low passing rent of £191,688 per annum.
• Very attractive AWULT of 32.3 years certain.
DEVELOPMENT POTENTIAL
• 18,232 sq ft of vacant office accommodation over the third to eighth floor levels presenting an immediate opportunity for conversion to residential use through the application of Permitted Development Rights (STP).
• The property does not fall under an Article 4 Direction.
PROPOSAL
We are instructed to seek offers in excess of £3,800,000 (Three Million and Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a capital value of approximately £105 psf.
Outlines for indicative purposes only.
SEAFRONT REGENERATION
PROJECT
GRAND BURSTIN HOTEL
FOLKESTONE BUS STATION
BOUVERIE PLACE SHOPPING CENTRE
SANDGATE ROAD
CREATIVE CENTRE DEVELOPMENT
SAINSBURY’S
HERITAGE COAST
22 -26 SANDGATE ROAD DEVELOPMENT (PD)
< FOLKESTONE TRAIN STATION
EUROPA HOUSE
A259
A259
BOUVER
I E SQ BOUVERIE W
EST TERRACE
MIDDLE
BURG SQ
SHORNCLIFFE RD SHORN
CLIFFE GARD
ENS
CHERITON
RD
CHERITON ROAD A203
3
CA
STLE HILL AVE
BOUVERIE RD WEST
OXFORD TER
R ACE
SANDGATE R
OAD
CHURCH ST
SANDGATE ROAD
A260
THE LEAS
ROAD OF REMEMBRANCE
POUND
WAY
ST EANSWYTHE W
AY
A2033
BAYLE ST THE PARADE
THE
BA
YLE
PAYERS PA R K
GUILD
HA
LL STREET NO
RTH
VICTO
RIA G
ROVE
F OORD RD SOUTH
INGLES RD
THE OLD HIGH S T
CH
RIST
CH
UR
CH
RD
CHERITON
PLAC
E
MARINE PARAD E
MARINE CRES
LOWER SANDGATE R
OAD
MA
NO
R RO
AD
SHEL
LON ST
DOVER RDFolkestone Central
Sainsbury’s
Bouverie Place Shopping Centre
AsdaPrimark
Debenhams
Costa
Starbucks
McDonalds
KFC
Pleydell GardensCar Park
Wilko
The Quarterhouse
LOCATIONFolkestone is a major retail and commercial centre situated on the south east coast of Kent, approximately 70 miles south west of central London and 7 miles south west of Dover.The town benefits from excellent road communications being located at the eastern end of the M20 which provides direct access to Ashford, Maidstone, the M25 and London. Folkestone also marks the eastern end of the A259 south coast trunk road.The town is served by two mainline railway stations, Folkestone Central and Folkestone West which provide regular services to nearby centres and London. The terminus of the High Speed 1 (previously known as the Channel Tunnel Link) is situated to the north of the town. The nearest international station is Ashford which provides high speed trains to the continent.
RAIL - High Speed TravelFolkestone benefits from being situated on the UK’s only high speed line - the HS1. The route offers direct services to London St Pancras and Stratford International with a fastest journey time of under one hour.
ROADFolkestone is located on the A259 which links directly with Junction 13 of the M20 and A20 for access to London and Dover respectively.
BUSFolkestone Bus Station is located within a 4 minute walk of the subject property and provides 34 local bus services including routes to Canterbury, Ashford and Dover amongst others.
AIRLondon Ashford Airport is a 35 minute drive to the south west and Gatwick International Airport is just over an hour to the west.
J12
J10
J7J8
J9
J6
J5
J3
J2
M4
M2
M3
M25
M25
M23M20
M20
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DOVER
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HASTINGS
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EASTBOURNE
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SEVENOAKS■
MAIDSTONE
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HOVE
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CRAWLEY
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GUILDFORD
SLOUGH■
WOKING■
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ROYALTUNBRIDGE WELLS
TONBRIDGE■
LEWES■
BRIGHTON■LITTLEHAMPTON
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MARGATE■
CANTERBURY■
SITTINGBOURNE■
■ SANDWICH
SOUTHEND-ON-SEA■
GRAVESEND■
ROMFORD■
CROYDON■
ASHFORD■
Gatwick
Heathrow
London City
FOLKESTONE
LONDON
FOLKESTONEEUROPA HOUSE
50 metres
For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011
Folkestone
Experian Goad Plan Created: 09/05/2016Created By: Allsop
Copyright and confidentiality Experian, 2016. © Crown copyright and databaserights 2016. OS 100019885
Mixed use retail & office building investment opportunity
SITUATIONThe property is situated on a pedestrianised section to the eastern side of Sandgate Road between West Terrace and West Cliff Gardens which forms the primary retail thoroughfare in Folkestone. Sandgate Road benefits from strong pedestrian flow comprising a wide variety of retail, leisure, financial and professional services. Surrounding occupiers include; Debenhams, Lloyds Bank, Top Shop, WH Smith and Superdrug, amongst others. Folkestone railway station is located within a 12 minute walk (0.6 miles) to the north west of the subject property.
© Crown Copyright, ES 0004. For identification purposes only.
DEMOGRAPHICSFolkestone has a primary catchment area of 100,000 with an estimated shopping population of 57,000, which is forecasted to see significant growth over the period 2015-2020. Folkestone’s primary catchment population is adults aged over 45 with a high proportion of the population aged 65 and above. Whilst Folkestone has an above average retiree population it has seen a significant increase in young adults aged 15-24 over the past 15 years. Between 2000 and 2011 Folkestone has seen an above average increase in total employment compared to the rest of the UK.
RETAILING IN FOLKESTONEFolkestone’s prime retail offering is centred on the pedestrianised section of Sandgate Road and the surrounding streets within Folkestone’s town centre. The town centre comprises a total of 0.83 million sq ft of retail, financial and leisure accommodation occupied by predominantly national covenants. The towns primary shopping centre is the Bouverie Place Shopping Centre which is situated on Albion Mews Road which runs parallel to the north of Sandgate Road. Built in 2007, The Bouverie Place Shopping Centre is a multi-level retail scheme anchored by ASDA on the first floor with Primark, TK Maxx, Peacocks and Next, amongst others. Prime rents in Folkestone are currently achieving in the region of £40 Zone A.
TENANCY & ACCOMMODATION SCHEDULE
Unit Tenant Name Area Sq m (ITZA)
Area Sq ft (ITZA)
Lease Start Lease Expiry Next Review Current Rent (PA)
£/PSF (ITZA)
49/51 Sandgate Road Caversham Trading Ltd 496.9 (168)
5,349 (1,810)
3/9/2010 2/9/2020 3/9/2015 £65,000 £12.15 (£35.91)
53 Sandgate Road Claires Accessories UK Ltd 149.9 (49.6)
1,614 (534)
24/6/2012 3/2/2017 £20,300 £12.58 (£38.01)
Europa House, Sandgate Road
Basement / Ground / First / Second National Westminster Bank Plc 1,027 11,055 29/9/1975 28/9/2074 29/9/2017 £95,000 £8.06
Third Floor Vacant 511.1 5,501
Fourth Floor Vacant 468.1 5,039
Fifth Floor Vacant 176.4 1,899
Sixth Floor Vacant 179.4 1,931
Seventh Floor Vacant 179.4 1,931
Eighth Floor Vacant 179.4 1,931
Roof antenna aerial 1 Cornerstone Telecommunications 19/2/2016 18/2/2031 £5,300
Roof antenna aerial 2 Vodafone Ltd 29/4/2000 30/6/2015 £4,528
Car Spaces X 3 National Westminster Bank Plc 1/1/1980 31/12/2029 £1,560
Total 3,367.7 36,250 £191,688
DESCRIPTION The subject property comprises a prominent 11 storey, mixed use commercial building totalling 36,250 sq ft (3,367.7 sq m). There are two retail units arranged over ground and basement floor levels and separate self-contained office accommodation over the remaining 8 storeys.
49/51 Sandgate Road (Caversham Trading Ltd)
Ground floor retail unit with basement ancillary accommodation totalling 5,349 sq ft (496.9 sq m). The unit provides open plan ground floor sales accommodation with a shop depth of approximately 17.6m. To the rear of the unit is ancillary storage/office accommodation and stairwell access to the basement which is currently used as storage and staff accommodation.
53 Sandgate Road (Claires Accessories UK Ltd)
Ground floor retail unit with ancillary basement accommodation totalling 1,614 sq ft (149.9 sq m). The unit provides open plan ground floor sales accommodation with a shop depth of approximately 17.6m. To the rear of the unit is ancillary staff accommodation and stairwell access to the basement which is currently used as storage.
Europa House (NatWest)
NatWest occupies the basement, ground and two upper floors of Europa House which provides a retail unit with office and ancillary accommodation totalling 11,055 sq ft (1,027 sq m). The unit is accessed by a ground floor lobby which provides a designated frontage onto Sandgate Street and direct access to the first floor banking hall. The second floor comprises office accommodation and a business centre, whilst the basement is used for the bank’s strong room. Access to all levels is provided by internal stairwells within the unit and a lift which is also accessed through the lobby. NatWest benefits from three parking spaces to the rear which are let on separate leases (See tenancy and accommodation schedule).
Europa House (Vacant Offices)
The remainder of Europa House comprises 6 storeys of vacant self-contained office accommodation totalling 18,232 sq ft (1,693.8 sq m) arranged over the third to eighth floors. The vacant accommodation is situated immediately above the NatWest unit with access provided via a communal entrance at ground floor level fronting Sandgate Street. The offices benefit from stairwell and lift access from ground floor level. The ninth floor provides plant accommodation.
FOLKESTONEEUROPA HOUSE
AWULTThe property provides an attractive AWULT of 32.3 years (certain).
FOLKESTONE SEAFRONT REDEVELOPMENTFolkestone Harbour Company (FHC) have recently confirmed that work on the regeneration of Folkestone Harbour and seafront will begin this year. The residential-led development allows for provisional directive permission of up to 1,000 residential units and a mix of commercial floorspace totalling 10,000 sq m. The Council’s ambition is to create a vibrant public realm enlivening the seafront with a mix of new uses whilst helping to link the seafront with the town centre. The development serves to build upon the substantial regeneration work that has already taken place in the Creative Quarter in Folkestone’s Old Town. It is forecasted that the development will boost investor awareness of Folkestone and have significant socio-economic benefits including further job creation and an increase in tourism. There would also be significant infrastructure improvements. The FHC will firstly commence work on sea defences before applying for planning permission for the first phase of development.
Mixed use retail & office building investment opportunity
DEVELOPMENT POTENTIAL(Subject to necessary consents)
The property provides a significant development opportunity by means of immediate conversion of the vacant upper offices to residential through the application of Permitted Development Rights, subject to necessary consent. The site is not subject to an Article 4 restriction.
In order to establish the development potential, the Vendor has commissioned a planning report which provides a comprehensive review of the development potential in regards to planning. A full copy of the planning report is available upon request or via the data room: www.europahousefolkestone.com
The report states there is the potential to progress a comprehensive redevelopment of the site. There is no evident planning or environmental constraints requiring the retention of the existing built development. The site complies with Shepway District Council’s planning policies that seek to direct major new development to sustainable locations and to make the most efficient use of brownfield land.
Furthermore, the site is located within the ‘Folkestone Town Centre Potential Redevelopment Focus Area’ and as such there have been a number of proposed and existing residential led schemes present within close proximity to the subject property. These include 46 Sandgate Road (opposite the site), 22-26 Sandgate Road, 29-33 Sandgate Road, 16-18 Guildhall Street and Monument House (23 West Terrace).
The report concludes that in planning terms, subject to the necessary consent, there is the potential to progress a conversion of Europa House to residential use under Permitted Development Rights or undertake a comprehensive redevelopment of the site (subject to planning).
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Europa House, Folkestone
Ordnance Survey © Crown Copyright 2016. All rights reserved.
Licence number 100022432. Plotted Scale - 1:657© Crown Copyright, ES 0004. For identification purposes only.
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 09.16
RECEIVER CAVEAT:The property is being marketed for sale on behalf of Joint LPA Receivers (acting as agent for the registered proprietors of the property) and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the property, including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability.
PROPOSALOffers in excess of £3,800,000 (Three Million and Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a capital value of approximately £105 psf.
For further information or to make arrangements for viewing please contact:
National Investment
James Salmon020 7543 [email protected]
Liam Stray 020 7543 [email protected]
Residential Investment & Development
James Hood020 7344 [email protected] www.allsop.co.uk
COVENANT Caversham Trading Ltd D&B Rating 5A 1
Trading as BrightHouse and formed in 1994 Caversham Trading Ltd is the UK’s leading rent-to-own retail chain with over 270,000 customers and over 300 stores. The business has produced the following headline accounts over the last 3 years:
31 Mar 2015 31 Mar 2014 31 Mar 2013
Turnover (£,000’s)
£67,479 £70,032 £75,961
Pre-Tax Profit (£,000’s)
£2,759 £7,131 £8,235
Total Net Worth (£,000’s)
£56,365 £53,640 £44,253
Claires Accessories UK Ltd D&B Rating 4A 1
Formed in 1961 Claires Accessories is a retailer of accessories and jewellery primarily aimed toward girls and young women with 3,469 stores in 36 countries. The business has produced the following headline accounts over the last 3 years:
31 Jan 2015 01 Feb 2014 02 Feb 2013
Turnover (£,000)
£125,298 £120,629 £127,666
Pre-Tax Profit (£,000)
£1,295 £7,917 £3,232
Total Net Worth (£,000)
£17,996 £16,167 £16,860
National Westminster Bank Plc D&B Rating 5A 1
Formed in 1968 NatWest is a large retail and commercial bank in the United Kingdom with a network of 1,400 branches and 3,400 cash machines. Currently the bank has 7.5 million personal customers and 850,000 small business accounts and is ranked among the top 10 largest banks in the world by assets. The business has produced the following headline accounts over the last 3 years:
31 Dec 2014 31 Dec 2013 31 Dec 2012
Turnover (£,000)
£9,697,000 £11,316,000 £10,297,000
Pre-Tax Profit (£,000)
£2,577,000 (£6,805,000) (£3,322,000)
Total Net Worth (£,000)
£16,009,000 £12,075,000 £19,964,000
TENUREFreehold.
EPCThe property has an EPC rating of C56. EPC available upon request.
VATThe property is elected for VAT.
DATAROOMFurther information is provided in the data room. For access please register on the following website www.europahousefolkestone.com.