harrogate - allsop · harrogate is a popular tourist destination attracting approximately 1.5...

PRIME FREEHOLD CONVENIENCE RETAIL INVESTMENT LOCATED IN THE HISTORIC SPA TOWN

OF HARROGATE

HARROGATENIDDERDALE HOUSE

4-16 CAMBRIDGE ROAD & 7 OXFORD STREET, HG1 1NS

HARROGATE TRAIN STATION

HARROGATE BUS STATION

VICTORIA SHOPPING CENTRE

JAMES STREET

CAMBRIDGE STREET

OXFORD STREET


4-16 CAMBRIDGE ROAD & 7 OXFORD STREET

Outline indicative purposes.

INVESTMENT CONSIDERATIONS

Harrogate is an attractive Victorian spa town and boasts one of the most affluent catchment populations in the UKAttractive building located on a prominent corner plot at the intersection between the pedestrianised Oxford Street and Cambridge RoadThe property comprises an attractive 3 storey building comprising six retail and leisure units totalling 2,389 sq m (25,712 sq ft)Fully let to six tenants offering an attractive income profile to 5A1 covenants including McDonalds, Tesco and SuperdrugCurrent passing rent of £430,350 per annumRebased Zone A rents ranging from £50 - £70 Zone A AWULT of 6.55 years to expiry (6.32 years to break)Freehold

PROPOSAL

Offers sought in excess of £6,000,000 (Six Million Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.73% after deductions of purchaser’s costs at 6.63%.



WartonAerodrome

LiverpoolJohn LennonAirport Manchester

InternationalAirport

Humberside Airport

Leeds/Bradford

M1

M1

M1

M6

M6

M55

M606M621

M180 M181

M18

M18

M65

A1(M)

A1(M)

A1(M)

A1(M)

M60

M60M62

M62

M67

M66

M58

M58M53

M62

M62

M61

Blackpool

Fleetwood

Southport

Preston

Gainsborough

Worksop

Doncaster

Rotherham

Bolton

Wigan

St. Helens

Longridge

Formby Ormskirk

Bootle

Birkenhead

OldhamBarnsley

Wakefield

Castleford

Wetherby

Tadcaster

Beverley

Ashton-under-Lyne

Burnley

Keighley

Rochdale

Halifax

HebdenBridge

Ilkley

Nelson

Darwen

Accrington

Chorley

LIVERPOOL

MANCHESTER

SHEFFIELD

GRIMSBY

SCUNTHORPE

BRADFORDLEEDS

YORK

HULLBLACKBURN

HUDDERSFIELD

Yorkshire Dales

National Park Authority

National Park

Peak District

Lincolnshire Wolds

HARROGATE

ROADHarrogate benefits from excellent road communications with the A61 linking the town to Leeds, the A59 to York and the A1(M) Motorway (Junction 47) situated 8 miles (13 km) to the east providing a direct link to London with an approximate drive time of 4 hours 20 minutes.

RAILRail services run regularly offering direct connections to York and Leeds with fastest journey times of 33 and 35 mintues respectively. Connections to London are at York and Leeds with a fastest overall journey time of 2 hours and 44 minutes.

AIRLeeds Bradford International Airport lies 12.1 miles (19 km) to the south of Harrogate.

LOCATIONHarrogate is a picturesque Victorian spa town within North Yorkshire, approximately 210 miles (340 km) north of London, 13 miles (21 km) north of Leeds and 30 miles (19 km) west of York.

The town benefits from excellent communication links:



RETAILING IN HARROGATEHarrogate is a destinational shopping location offering an attractive and diverse retailing environment drawing shoppers from much further afield than its traditional catchment area.

The Harrogate District has a population of circa 160,000 and is one of the most affluent towns in the United Kingdom, ranking 25 out of 200 PROMIS Centres. The area contains a significantly above average proportion of adults categorised within the most affluent AB social group (which includes those in managerial and professional occupations). Harrogate is regularly voted as one of the happiest places to live in the UK due the town’s amenities, recreational offering, area upkeep, décor and neighbourliness.

Harrogate is a popular tourist destination attracting approximately 1.5 million tourists per year. The town is renowned for its high end shopping, afternoon tea and dining, the iconic Royal Baths and the twice yearly Harrogate Flower Show. In addition the Harrogate Conference Centre attracts a further 500,000 delegates to the town with these visitors injecting an estimated £150 million per annum into the local economy.

Harrogate has an excellent retail offering, providing approximately 980,000 sq ft of town centre retail floor space. The town has an above average quality of retail provision relative to the size and affluence of the shopping population.

The retail core sits to the West of Harrogate Railway Station and centres on the pedestrianised Cambridge Street, James Street and the pedestrianised Oxford Street. Cambridge Road, on which the subject property sits, links Oxford Street with the traditional centre of the town at the cenotaph intersection where Cambridge Crescent, Cambridge Road, James Street and the leisure pitch of Parliament Street meet.

Key retailers in the town include Marks & Spencer, Russell and Bromley, Clarks, Jack Wills, Gap, Crew Clothing, Joules, Cath Kidston, Hobbs, Whistles and Lakeland.

Shopping Population

151,000

Town Centre Retail Space

980,000 sq ft

Prime Retail Investment Yields

4.75%

Prime Zone A Rents

£145Town Centre Vacancy

2.3%

Ranking

32/200 (Non-Food)Affluence

24/200



SITUATIONThe property is prominently positioned at the interchange of the pedestrianised Oxford Street and Cambridge Road. The property is located immediately adjacent to the Church of St Peter, one of the most historic buildings in Harrogate and is the traditional heart of the town.

The location is subject to high levels of pedestrian footfall, benefiting from close proximity to leading High Street brands including M&S, Debenhams, Primark, Boots and River Island. The property is situated within 300 metres of Harrogate Railway Station, the Victoria Shopping Centre and Harrogate’s main bus interchange.

DESCRIPTIONNidderdale House comprises a prominent retail and leisure block located at the junction of the pedestrianised Oxford Street and Cambridge Road.

The property was constructed in the mid-1980s and comprises an attractive three storey steel framed building with brick elevations and a pitch tiled roof.

The accommodation has more recently been divided into six retail and leisure tenancies at ground floor with ancillary accommodation on the upper levels (with the exception of McDonalds which uses the first floor as additional seating), with an A3 unit trading across the basement of the building.

TENUREFreehold.



Unit Tenant Trading Name Accommodation Sq Ft Start Date Rent Review Break Expiry Date Passing Rent (pa)

Rent psf (ITZA)

Comments

1 Superdrug Stores Plc

Ground Floor 3,112

29/9/2005 28/9/2025 £65,000 £50.00 Lease extension recently agreed at re-based rent. Previous rent was £106,750 pa

First Floor 538

Second Floor 669

ITZA 1,115

Total 4,319

2&3 Tesco Stores Limited

Ground Floor 3,775

18/9/2008 17/9/2023 £99,000 £50.20 Sept 2018 rent review recently agreed. Rent increased from £87,803 pa

First Floor 858

Second Floor 926

ITZA 1,693

Total 5,559

4 Game Retail Limited

Ground Floor 1,397

2/7/2018 1/7/2021 1/7/2023 £50,000 £56.00

First Floor 327

Second Floor 489

ITZA 819

Total 2,213

5&6 McDonald’s Restaurants Limited

Ground Floor 2,001

29/9/2010 29/9/2020 28/9/2030 £122,350 £72.00

First Floor 1,784

Second Floor 1,221

ITZA 1,461

Total 5,006

7 Yorkshire Building Society

Ground Floor 2,484

21/9/2012 20/9/2022 £70,000 £63.00

First Floor 1,020

Second Floor 560

ITZA 977

Total 4,064

Basement Osprey Acquisition Company Basement 4,551 25/3/1984 24/3/2025 £24,000 £5.27 psf (overall)

Initial rent £18,000 pa rising to £24,000 pa in year 5 - vendor to top up.

TOTAL 25,712 £430,350

TENANCY SCHEDULE AND FLOOR AREAS



COVENANTMcDonald’s Restaurants LtdMcDonalds formed in 1954 and has grown to become one of the world’s leading fast food brands with more than 36,000 restaurants in over 100 countries. The restaurant is estimated to feed 68 million people per day. There are currently 1,270 McDonalds restaurants across the UK employing over 115,000 people.

McDonald’s Restaurants Ltd has a D&B rating of 5A1 and offers a “minimum risk” of business failure. McDonald’s Restaurants Ltd reported the following financial results across the past three years:

31/12/2017 31/12/2016 31/12/2015

Turnover £1,593,489,000 £1,574,237,000 £1,535,510,000

Pre-Tax Profit £341,009,000 £287,479,000 £270,826,000

Total Net Worth £1,322,438,000 £1,044,866,000 £903,374,000

Tesco Stores LtdTesco Stores Ltd is wholly owned by Tesco Plc, one of the largest global retailers. Tesco was established in 1919 and currently trades from close to 6,500 stores in seven countries across Asia and Europe and is the market leader in grocery sales in the UK with 27.3% of the market (at 13/05/2019).

Tesco Stores Ltd has a D&B rating of 5A1 and offers a “minimum risk” of business failure. Tesco Stores Ltd reported the following financial results across the past three years:

24/02/2018 25/02/2017 27/02/2016

Turnover £41,367,000,000 £417,000,000 £39,843,000,000

Pre-Tax Profit £417,000,000 £266,000,000 (£231,000,000)

Total Net Worth £4,071,000,000 £749,000,000 £1,077,000,000

Superdrug Stores PlcSuperdrug was formed in 1964 and has grown to become a leading health and beauty retailer in the UK with 800 store locations and 14,000 employees. The business also has pharmacies with consultation rooms in over 220 shops.

Superdrug Stores Plc has a D&B rating of 5A1 and offers a “minimum risk” of business failure. Superdrug Stores Plc reported the following financial results across the past three years:

30/12/2017 31/12/2016 26/12/2015

Turnover £1,241,783,000 £1,213,600,000 £1,105,002,000

Pre-Tax Profit £92,934,000 £80,385,000 £56,842,000

Total Net Worth £60,044,000 £82,249,000 £42,056,000

Game Retail LtdGame was established in 1991 and has grown to trade from over 300 stores across the UK. The company was listed on the London Stock Exchange in June 2014.

Game Retail Ltd has a D&B rating of 5A2 and offers a “lower than average risk” of business failure. Game Retail Ltd reported the following financial results across the past three years:

28/07/2018 29/07/2017 30/07/2016

Turnover £478,242,000 £493,112,000 £583,890,000

Pre-Tax Profit (£11,290,000) (£7,135,000) £6,868,000

Total Net Worth £65,401,000 £68,866,000 £72,104,000

Yorkshire Building SocietyThe Yorkshire Building Society is the third largest building society in the UK. The society also owns the Chelsea Building Society and Norwich and Peterborough Society. Collectively the group employs 3,300 staff across the UK and services 3 million members.



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 05.19

Alex Butler020 7543 6722

[email protected]

Ronnie Morgan020 7543 6808

[email protected]

Jonathan Butcher020 7543 6755

[email protected]

For further information or to make arrangements for viewing please contact:

allsop.co.uk

EPCEPCs are available within the dataroom

VATThe purchase will be subject to VAT and we would expect the transaction to be treated as a transfer of going concern (TOGC).

DATAROOMFor dataroom access please use the following link:

https://datarooms.allsop.co.uk/register/harrogate

PROPOSALWe are instructed to seek offers in excess of £6,000,000 (Six Million Pounds),

subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.73% assuming purchaser’s costs of 6.63%

For further information or to make arrangements for viewing please contact:

harrogate - allsop · harrogate is a popular tourist destination attracting approximately 1.5...

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