london street bedford street · 2017-11-28 · 15-23 london street & 4-8 bedford street,...

INVESTMENT SUMMARY

• Norwich is a dominant and prosperous regional city

• Overall WAULT of 8.75 years

• 95% of the income is secured against national multiples

• Property held Freehold

• Property occupies a prominent location adjacent to Jarrolds Department Store

• Well configured retail footprints

• We are instructed to seek offers in excess of £9,650,000 (Nine Million Six Hundred and Fifty Thousand Pounds) subject to contract, and exclusive of VAT which reflects a Net Initial Yield of 6.75%, after allowing for purchasers costs of 6.69%


| Tenure | Tenancy Schedule | Tenancies | Income Analysis | Retail Value | Covenant | VAT | EPC | Proposal | Contact

15-23 London Street & 4-8 Bedford Street, Norwich NR2 1JE Prominent Retail and Leisure Investment for sale

Tenancy Schedule


LOCATION

Norwich is the county town of Norfolk and the largest of the major East Anglican centres, situated 110 miles north east of London and 65 miles north east of Cambridge.

The city benefits from excellent communications and is served by the A11 trunk road which links to the M11 and A14, the main arterial routes from London and the Midlands to East Anglia. The Norwich Northern Distributor was granted permission on 2nd June 2015 and will consist of 8.7 miles (14.0 km) of dual-carriageway linking the A47 to the south east of the city to the proposed Rackheath Eco-town and to Norwich International Airport to the north of Norwich.

Frequent train services are also available from Norwich to London (Liverpool Street) with a fastest journey time of approximately 1 hour 47 minutes. In addition Norwich international airport is situated just over 4 miles to the North and offers flights to various destinations in the United Kingdom and Europe.

Cambridge

Ipswich

Bedford

Bury St Edmunds

Peterborough

Stamford

Thetford

GreatYarmouth

King’s LynnNorwich International Airport

Norwich

Cambridge

Ipswich

Bedford

Bury St Edmunds

Peterborough

Stamford

Thetford

GreatYarmouth

King’s LynnNorwich International Airport

Norwich

M11

M11

M1

A10

A14

A14

A14

A12

A12A140

A14

A10A14

A1

A1

A6

A6

A11 A134

A131

A1(M)

A14A14

A43

A43

A1A1

A10 A140

A11

A11

A143

A47

A143A146

A47A47A47

A47

A141

A1175

A47

A1065




Tenancy Schedule


DEMOGRAPHICS

Norwich has a primary catchment population of 894,000 significantly above the Regional Centre average and ranking the city 11th out of the PROMIS Centres. The city benefits from its isolation by having a much wider draw than normal due to the distance between the city and its major competitors. As an historic city, spending within Norwich is also boosted through tourism and in 2012 approximately 6.9 million tourists visited the city (Tourism South East).

The affluence indicator for Norwich has recently improved due to falling unemployment and rising average house prices within the Norwich area as well as an over-representation of “comfortable communities” and “affluent achievers”. Norwich is also expected to see above average population growth between 2015 and 2020. This will be facilitated by increased residential development with notable schemes including Orbit Homes £70m development of The St Anne’s Wharf site, between King Street and the River Wensum. The project will see around 430 new homes built with completion due for spring 2018.

The service sector currently accounts for around 64% of the total employment in Norwich, slightly above the retail PROMIS average, within this sector financial and business services’ accounts for 28% of total employment (Promis, 2017). The insurance industry is also a key industry within Norwich and the insurance group Aviva is the largest private employer within the city.

Norwich’s emerging reputation as a centre for technology businesses is evidenced by companies such as Epos Now which announced it was recruiting an additional 200 staff in 2016. Furthermore, the proposed “Tech Corridor” along the A11 linking Norwich and Cambridge is set to create over £500m of innovation-led growth, investment in infrastructure, housing and skills between Cambridge and Norwich.




Tenancy Schedule


RETAILING IN NORWICH

Norwich is the dominant retail centre in East Anglia and has a strong retailing tradition, with an estimated 2.2m sq ft of trading floor space. The estimated shopping population of Norwich is 521,000, ranking the city 9 of the PROMIS centres, which is above the average for the Regional Centres. Norwich ranks 17 on the basis of its PMA Retail Score and ranks 7 on the PMA AnchorScore.

Historically the pedestrianised Streets of Haymarket and Gentleman’s walk have formed the City’s prime retail pitch anchored by Jarrold’s Department Store on London Street. The City has however expanded its prime pitch to include Intu Chapelfield to the Southern end of the City. The centre opened in 2005 providing circa 540,000 sq ft of retail accommodation anchored by House of Fraser, with retailer representation

including Zara, Sports Direct, River Island and Apple.

Further prime retailing can be found on Red Lion Street and St Stephens Street where retailers such as Primark, M&S and New Look all have representation. The main retail core is also supported by the Castle Mall shopping centre comprising of around 380,000 sq ft, providing value mass market shopping with retailers including TK Maxx, Boots, New Look and Argos.

The north-eastern part of the city centre, around London Street, London Road and Bedford Street is also home to a number of upmarket and specialist retailers with White Stuff, Gap and Jack Wills trading from these locations, as well as several upmarket independent retailers.

SITUATION

The property is situated in a prominent trading location on the pedestrianised London Street, a busy retail thoroughfare which links Gentleman’s Walk and Castle Street with the traditional business district where many of the city’s professional firms are located, as well as Norwich Cathedral.

London Street benefits from numerous national multiples including Boots, GAP and Jack Wills, alongside strong local independent retailers which make Norwich a unique shopping destination.

The property is adjacent to Jarrolds department store and opposite HSBC.




Tenancy Schedule


NORTHFor Identification purposes only




Tenancy Schedule


DESCRIPTION

The property comprises 3 large, well configured retail units fronting London Street arranged over Basement and Ground Floors. There are also 3 further retail units fronting Bedford Street arranged over Ground, Basement, First and Second floors.

Further extensive trading accommodation can be found above the London street units currently occupied by a gym and restaurant operator.

ACCOMMODATION

The subject property has been measured in accordance with the RICS code of measuring practice (6th Edition) and comprises 59,600 sq ft (5,537sqm) of retail and ancillary accommodation.

Full details can be found in the tenancy schedule below.

TENURE

The property is held Freehold




Tenancy Schedule


Occupational Details Areas Lease Details Income

Description Tenant Name Trading as DescriptionArea sq ft

Lease Start

Expiry Date

Next Review

BreaksCurrent Rent £

pa

Current Rent

(£ Zone A)

Rental Value £

pa

Rental Value

(£ Zone A)

Landlord Shortfall

Comments

15-17, London Street

Jarrold and Sons Ltd

Pilch Sport & Outdoor

Gound Floor Sales 5,755

25/03/17 24/03/27 25/03/22 25/03/23 £183,000 £90.00 £183,000 £90 £0 -5% for set back -10% for quantum

Ground ITZA 1,927 Lower Ground Sales 3,782 Lower Ground Storage 1,906 Total Area 11,443

19, London Street

Laura Ashley Ltd Laura Ashley


12/02/11 10/02/21 £106,000 £84.00 £115,000 £90 £0 -5% for set back

Ground ITZA 1,105 Ground Ancillary 452 Basement Sales 1,777 Basement Stores 761 Total Area 6,262

21, London Street

Mountain Warehouse Ltd

Mountain Warehouse


30/08/11 29/08/21 £92,500 £91.50 £91,700 £90 £1,880 -5% for set back. Shortfall relates to Service charge cap of £9,450

Ground ITZA 822 Basement Sales 2,226 Basement Stores 954 Total Area 5,014

25, London Street

Norwich Investment Ltd

Cosmo Total GIA 13,651 13/02/15 12/02/30 13/02/20 13/02/25 £100,000 £7.35 £100,000 £7.35 £668Rent reviewed to RPI capped at 3% p.a. Shortfall relates service charge cap at £15,489.86

23-25 London Street

The Gym Limited

The Gym

Ground Floor 75

31/08/12 30/08/32 31/08/27 31/08/22 £153,547 £5.70 £175,600 £10 £0At Rent Review the rent Is determined by taking the basic rent preceding the rent review date and multiplying the rent by a factor 0f 1.09.

First Floor 6,488 Second Floor 11,000 Total Area 17,563

8, Bedford Street

Long Tall Sally Ltd

Long Tall Sally

Ground ITZA 332

26/12/10 24/12/20 £27,500 £55.00 £20,800 £40 £0

Ground Floor Masked 118 Mezzanine Sales 1,453 First Floor Storage 555 Second Floor Ancillary 427 Total Area 2,553

6, Bedford Street

Future Dog Ltd

Future Dog

Ground ITZA 280

25/12/10 24/12/20 £17,250 £44.00 £15,800 £40 £0Basement Sales 1,155 Basement Stores 290 Total Area 1,725

4, Bedford Street

Oriental Rugs Of Norwich Ltd

Oriental Rugs

Ground ITZA 335

25/03/11 24/03/21 £18,500 £43.00 £17,000 £40 £0

Mezzanine Sales 400 First Floor Sales 335 2nd Attic (Anc) 404 Basement 250 Total Area 1,389

Substation Site Basement

The Eastern Electricity Board

The Eastern Electricity Board

22/06/73 21/06/15 £1 £1 £0

Total 59,600 £698,298 £718,901 £2,548

TENANCY SCHEDULE




Tenancy Schedule


TENANCIES

The property is let in accordance with the attached tenancy schedule producing a Gross Income of £698,298 p.a and a net income of £695,750 p.a. The majority of leases are let on effectively Full Repairing and Insuring terms, recoverable via a service charge, details of which are available from this office.

INCOME ANALYSIS

The property currently produces a WAULT of 8.75 years to expiry, with 95% of the income secured against national multiples.

ESTIMATED RENTAL VALUE

We are of the opinion that the property has an estimated Rental value of approximately £718,900 pax.

The most current salient rental evidence can be set out as follows:

Address Tenant Date Transaction Type

Rent (psf Zone A)

15 - 17 London St Jarrolds Mar-17 Re-gear £90

22 London St Whittards Aug-16 OML £90

19 London St Laura Ashley Feb-16 Rent review £84

14 Gentlemans Walk H. Samuel Jan-15 Rent review £159

0-2 yrs

2-5yrs

5-10yrs

10yrs+

National Multiple

Local Operator26%

36% 38%

0%

95%

5%




Tenancy Schedule


OCCUPIER COVENANT

JARROLD & SONS LIMITED

31/01/2016 01/02/2015 02/02/2014 Experian Score

Turnover 28,571,000 29,443,000 30,692,000

100Pre-tax profit 7,628,000 3,093,000 2,207,000

Net Worth £65,226,000 £67,246,000 £57,749,000

LAURA ASHLEY LIMITED

30/06/2016 31/01/2015 25/01/2014 Experian Score

Turnover 384,974,000 295,764,000 287,758,000

100Pre-tax profits 25,820,000 22,393,000 19,144,000

Net Worth £117,935,000 £109,562,000 £104,792,000

MOUNTAIN WAREHOUSE LIMITED

28/02/2016 28/02/2015 28/02/2014 Experian Score

Turnover £141,403,000 £109,894,000 £88,562,574

99Pre-tax profit £16,246,000 £11,961,000 £9,322,123

Net Worth £49,311,000 £37,192,000 £26,337,639

THE GYM LIMITED 31/12/2016 31/12/2015 31/12/2014 Experian Score

Turnover £73,539,000 £59,979,000 £45,880,055

100Pre-tax profit £9,530,000 £4,794,000 £8,130,320

Net Worth £64,177,000 £62,878,000 £49,117,414

LONG TALL SALLY LMITED

30/09/2016 30/01/2016 31/01/2015 Experian Score

Turnover £20,043,128 £34,875,888 £30,127,723

25Pre-tax profit -£3,137,642 -£28,811 £568,833

Net Worth -£8,450,323 -£8,515,055 -£6,058,809

ORIENTAL RUGS OF NORWICH LIMITED

30/11/2016 30/11/2015 30/11/2014 Experian Score

Turnover - - -

88Pre-tax profit - - -

Net Worth £48,910 £12,932 £35,150

FUTUREDOG LIMITED 31/01/2016 31/01/2015 31/01/2014 Experian Score

Turnover - - -


Net Worth £574,719 £605,874 £528,442

NORWICH INVESTMENT LIMITED

30/09/2016 31/03/2016 31/03/2015 Experian Score

Turnover - - -


Net Worth £675,024 £729,747 £31,839




Tenancy Schedule


VAT

The subject property is elected for VAT and therefore we anticipate the sale being by way of TOGC.

EPC

Full details are available upon request.

PROPOSAL

We are instructed to seek offers for our clients’ freehold interest in excess of £9,650,000 (Nine Million Six 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 6.69%.

Net initial yield 6.75%

Reversionary yield 6.97%

Equivalent yield 6.92%

True equivalent yield 7.22%




Tenancy Schedule


For further information, please contact the sale agents, Jackson Criss:

John Boissier

020 7637 [email protected]

Brook Wannop


Elliot Jackson


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. JC0115 November 2017.D

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IGN

ED

BY

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Tenancy Schedule

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


london street bedford street · 2017-11-28 · 15-23 london street & 4-8 bedford street,...

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