ncp considerations prime multi-storey car park located in the very heart of the popular and affluent...

LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS.

NCP

BOURNEMOUTH BH2 6EJ

INVESTMENT CONSIDERATIONS Prime multi-storey car park located in the very heart of the

popular and affluent coastal town of Bournemouth Let to the strong covenant of National Car Parks (NCP)

Limited (5A1) for an unexpired term of 18.2 years Situated adjacent to Bournemouth’s principle retail and

leisure offerings, a short ten minute walk to Bournemouth’s beach and pier

Topped up rent passing of £310,065 pa subject to RPI annual increases (1.5%-5% collar and cap)

Large strategic town centre investment providing 236 parking spaces arranged over 8 levels with a site area of approximately 0.48 acres (0.19 Hectares)

Virtual Freehold Direct Town Centre access from Bournemouth’s main arterial

road the A338

Based on a purchase at asking terms the property has a very low capital value of £82.15 psf

PROPOSAL Offers sought in excess of £5,540,000 (Five Million Five

Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.25%, after allowing for purchaser’s costs of 6.63%.

NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ

ENTRANCE EXIT

Outline for indicative purposes only.

THE BOURNEMOUTH ORATORY

ST PETER’S CHURCH

LOWER GARDENS

CENTRAL GARDENS

THE SQUARE

BOURNEMOUTH PAVILION THEATRE

0.1 MILES SOUTH ▼

BOURNEMOUTH INTERNATIONAL CENTRE

0.1 MILES SOUTH ▼

BOURNEMOUTH BEACH & PIER

0.2 MILES SOUTH ▼

NATIONWIDE OFFICES

BOURNEMOUTH BH2

BOURNEMOUTH TOWN HALL

BROMPTON COURT

A338

BOURNEMOUTH LIBRARY

SITE AREA: 0.48 Acres (0.19 Hectares)LEVELS: 8TOTAL SQ FT: 67,436 BOURNEMOUTH

NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS

LOWER GARDENS

CENTRAL GARDENSA35

A35

A37

A37

A31

A31

A33

A36

A27

A3

A31

A34

A34

A36

A36

A36

A338

A348

A350

A350

A303

A303 A303

A361

A350

A338A354

A354

A354

A338

A338

M3

M3

M27

M27 M271

A3(M)

POOLE

SALISBURY

SOUTHAMPTON

ISLE OF WIGHT

NEW FORESTNATIONAL PARK

PORTSMOUTH

YEOVIL

CHRISTCHURCH

WINCHESTER

ANDOVER

BASINGSTOKE

LYNDHURST

DONCASTER

WEYMOUTHSWANAGE

BOURNEMOUTH

The Bourn

21.9m

15.8m

Weir

Stone

FB

TCBPosts

PO

RICH

MO

ND H

ILL

BOURNE AVENUE

The Norfolk Royale

14 &

16

13

40

11 12

1 to 20

38

Hampshire

The

11

Hampshire Court

28

22

Court

1 to 6

House

Club

14 to 38

Bourne

Sacred Heart

Hotel

41 to 49

RC Church

El Sub Sta

10 &

12

Multistorey Car Park

35 to 37

41 to 43

51 to 53

23 to 27

Bris

tol &

Wes

tH

ouse

9 to 11

22

24

Shelter

51 to 62 M1 to M6

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:806

LOCATIONThe attractive and prosperous town of Bournemouth is a major commercial and tourist destination located on the South Coast of England. The town, together with Poole and Christchurch, form the Dorset conurbation and is one of the largest and most affluent conurbations along the South Coast. Bournemouth is located approximately 100 miles (160 km) south west of London, 50 miles (80 km) west of Portsmouth, 30 miles (48 km) west of Southampton, 40 miles (64 km) south west of Winchester and 6 miles (9.6 km) east of Poole.

Bournemouth benefits from excellent transport communications being situated on the A348 which links with the A31 and then Junction 1 of the M27 Motorway. The M27 connects Bournemouth to Southampton and Portsmouth to the east as well as London and the National Motorway network (via the M25) to the north. Bournemouth is also well connected to the west via the A35, one of the main arterial routes along the South Coast, linking Southampton to the east with Exeter and the M5 to the west.

Bournemouth train station is located within the city centre, a five minute drive from the subject property, providing direct rail services into London Waterloo with a fastest journey time of approximately 1 hour 50 minutes. Regular train services run to Poole and Weymouth.

Bournemouth International Airport is located approximately 4 miles north of the town centre while Southampton International Airport is located approximately 33 miles (53 km) to the north east.


© Crown Copyright, ES 100004106. For identification purposes only.


SITUATIONThe property is located in the heart of Bournemouth on the west side of Richmond Hill, adjacent to the town’s principle public square, ‘The Square’. Richmond Hill benefits from excellent accessibility connected to the town’s main arterial road the A338, providing direct access to the Town Centre. Bournemouth’s picturesque Central Gardens and Lower Gardens are located just south of the subject property.

The property is situated a short 10 minute walk to Bournemouth’s beach front and pier, and provides easy access to the town’s two principle theatres The Pavilion and The International Centre. Richmond Hill, and the immediate surrounding area, are a popular leisure and retail location with The Odeon Cinema located in close proximity, alongside a number of national and independent occupiers including Debenhams, Sports Direct, Zizzi, New Look, Slug & Lettuce and Pizza Express.

DESCRIPTIONThe property is arranged as a multi-storey car park over ground and seven upper levels (including two levels of rooftop parking).

The car park is situated behind the predominately leisure and retail frontage of Richmond Hill with access to the car park from the west side of the street. The entrance to the car park is accessed via ground floor level whilst the car park’s point of exit is on level 2 alongside the car park’s staff accommodation. The stairwell is located at the right of the northern end of the property, which incorporates two lifts.

The property provides a total of 236 car parking spaces and an approximate site area of 0.48 acres (0.19 Ha). The total floor area is shown in the accommodation schedule below.

ACCOMMODATION (GIA)

Level Sq M* Sq Ft*

Ground 640 6,889

1 911 9,806

1A 740 7,965

2 894 9,623

2A 742 7,987

3 905 9,741

3A 619 6,663

4 814 8,762

Total 6,265 67,436

*Measurements are approximate and for indication only – not to be fully relied upon. Any interested party should carry out their own measured survey.


DRIVER DEMAND

DEMOGRAPHICSBournemouth has a residential population of 187,503 and a primary shopping catchment of 172,000, ranking the town 46th of the PROMIS Centres. Bournemouth is an affluent town with an above average proportion of adults of working age categorised within the most affluent AB social group, with high levels of employment, car and house ownership.

The town is an important destination for tourists with an estimated 1.06 million staying visitors and 5.82 million day visitors each year. The South West Research Company reported in 2015 staying visitors spend approximately £287m.

Bournemouth is a major conference venue and also plays an important role as a back office location for a number of international

firms including Standard Life and JP Morgan Chase. The service sector accounts for approximately 80% of total employment in Bournemouth, of which financial and business services accounts for approximately 28%. Bournemouth is also home to two universities, Bournemouth University and Arts University Bournemouth, and has a growing student population in excess of 17,000 students.

HEART OF BOURNEMOUTHConveniently located in the very centre of Bournemouth, adjacent to the ‘The Square’ and Bournemouth’s central Gardens.

RESTAURANT HOT SPOTThe car park is adjacent to Zizzi, Slug & Lettuce and Pizza Express with a number of independent restaurants and cafes in close proximity.

BOURNEMOUTH’S PRIME RETAIL LOCATIONSituated in Bournemouth’s primary retail location alongside a number of national multiples and independent retailers.

CINEMA & THEATREThe state of the art Odeon BH2 Cinema Complex is located across The Square and Bournemouth’s Pavilion Theatre and International Centre are a short walk to the south.

CONVENIENT ACCESSThe car park has direct Town Centre access from Bournemouth’s main arterial road the A338, offering convenient central access.

LOCAL TOURISMBournemouth attracts 5.8 million day visitors per year, many of those arriving by car. There is almost no parking near the beach itself.

BOURNEMOUTH BEACHBournemouth’s seven miles of sandy beach and pier is a short 10 minute walk from the subject property and is the Town’s most popular attraction.

CAR OWNERSHIPThe level of car ownership in Bournemouth is significantly above average with a particularly high proportion of 2 car households.


TENANCYThe property is let in its entirety to National Car Parks Limited on a full repairing and insuring lease for a term of 34 years and 11 months (no breaks) from 29th June 2002 to and including 28th May 2037(18.2 years unexpired). The current passing rent is £305,483 pa rising to a minimum of £310,065 pa in June 2019 reflecting £1314 a space – the Vendor will top up the rent to the minimum uplift from completion.

The lease benefits from annual Retail Price Index linked rent reviews, with a collar of 1.5% and a cap of 5%. The tenant has an option to renew the tenancy for a further 20 years on identical terms, at the rent then passing. The lease is Outside the 1954 Landlord & Tenant Act.

TENUREVirtual Freehold. Held for a term of 999 years, commencing on 23 July 2002 for a term of 999 years and expiring on 22 July 3001 (thus having some 983 years unexpired), at a total head rent of £10 per annum.

TENANT COVENANT INFORMATIONNCP is the UK’s most recognised and longest standing private car park operator being founded in 1931. NCP operates car parking spaces across the UK at over 500 sites for approximately 150,000 cars, possessing a 30% market share. NCP Limited is jointly owned by Park24 and the Development Bank of Japan (DBJ), both investment grade rated businesses with substantial cash generation potential and cash/capital reserves relative to the NCP Group.

The joint venture (JV) purchased NCP Limited in July 2017 for an indicative enterprise value of £440 million. As part of the Acquisition 100% of the NCP Group’s external debt was repaid. (Park24 is a listed Japanese company based in Tokyo, and is a major parking operator with over 1 million spaces in 19,000 sites across 8 countries). DBJ is a Japanese Government owned financial institution with a strong track record in infrastructure finance.

A post-acquisition risk evaluation conducted by Dun & Bradstreet rated NCP 5A 1, the highest available rating, highlighting the marked improvement in credit quality following the acquisition. National Car Parks Limited has an Experian Credit Rating of 100 - which indicates a ‘Very Low Risk’. National Car Parks Limited’s financial results for the last 3 years are summarized below:-

Year Ending Turnover Pre Tax Profit Net Worth

31/03/2017 £211,461,000 £24,793,000 £210,138,000

25/03/2016 £202,703,000 £28,001,000 £186,896,000

27/03/2015 £198,736,000 £14,859,000 £156,973,000

PROPOSALOffers sought in excess of £5,540,000 (Five Million Five Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.25%, after allowing for purchaser’s costs of 6.63%.

Liam Stray020 7543 [email protected]

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

Richard Lea020 7543 [email protected]

Henry Tye020 7543 [email protected] allsop.co.uk

VATThe property has been elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/NCPBournemouth

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 03.19

Year Rent NIY

2020 £319,367 5.41%

2021 £328,948 5.57%

2022 £338,816 5.74%

2023 £348,981 5.91%

2024 £359,450 6.09%

2025 £370,234 6.27%

2026 £381,341 6.46%

2027 £392,781 6.65%

2028 £404,565 6.85%

2029 £416,701 7.06%

2030 £429,202 7.27%

2031 £442,079 7.48%

2032 £455,341 7.71%

2033 £469,001 7.94%

2034 £483,071 8.18%

2035 £497,563 8.42%

2036 £512,490 8.68%

RUNNING YIELD ASSUMING AN ANNUAL AVERAGE RPI LINKED UPLIFT OF 3% AND A PURCHASE AT 5.2% NIY.

ncp considerations prime multi-storey car park located in the very heart of the popular and affluent...

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