1 & 2 chapman’s yard, scarborough · 1 & 2 chapman’s yard, scarborough yo11 1dw...
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well secured, large space, freehold, retail investment
1 & 2 CHAPMAN’S YARD, SCARBOROUGH
1 & 2 chapman’s yard, SCARBOROUGH YO11 1DW
7% from 2011. Retail in Scarborough benefited from 25% of the
total spend.
Retailing in ScarboroughScarborough’s total town centre retail floor space totals approximately
1.07 million sq.ft which is focussed around a very compact
pedestrianised prime retailing pitch on Newborough and Westborough,
within close proximity to Scarborough railway station. Notable retailers
on the street include Marks and Spencer and Boots The town
benefits from two covered shopping centres, the Brunswick Shopping
Centre, anchored by Debenhams and totalling 127,000 sq.ft of
retailing space and the Balmoral Centre, anchored by Wilko.
Given the historic nature of the town, there are very few large space
units on prime pedestrianised Newborough. This has resulted in a
number of notable destination retailers such as, Wilko, Matalan, TK Maxx and DW Sports locating to the north of this pitch within close
proximity to the North Street Car Park.
LocationScarborough is a popular seaside town on the east coast of England
approximately 134 km (84 miles) south east of Newcastle upon
Tyne and 73 km (46 miles) north east of York. The town has
excellent communication links with road connections via the A171
from the north, the A170 and A64 from the west and the A165 from
the south. The town is served by numerous direct rail services, with
The East Coast Mainline connecting Scarborough to London Kings
Cross in 3 hours and Edinburgh in 3 hours 32 minutes.
Investment Considerations
• A prominent location on Chapman’s Yard connecting
St Thomas Street to North Street
• Close proximity to national multiple occupiers such as
Matalan, Wilko, Burton, Poundland, Savers, Clarks,
Costa Coffee and Miss Selfridge
• Large space units are at a premium in the town
• Within close proximity to the proposed North Street
Cinema Development
• Well secured to the strong covenants of TJX UK (TK
Maxx) and Dave Whelan Sports Limited (DW Sports)
• Average Weighted Unexpired Lease Term (AWULT) of
8.27 years
• Total rent of £337,500 pax
• Freehold
• Offers in excess of £4,000,000 (Subject to Contract &
exclusive of VAT), which reflects a Net Initial Yield of
8%, assuming purchasers costs of 5.8%.
Demographics Scarborough is the leading retail destination on the North Yorkshire
coast with a shopping population of 83,000 people and a primary
catchment population of 147,000 (PROMIS). The town benefits
from a captive catchment with the closest competing retail centres
of York and Middlesbrough being over an hour’s drive away.
Scarborough is the largest holiday resort on the Yorkshire Coast.
In 2012 the town attracted approximately 1.4 million overnight
visitors and 6.5 million people on day trips, spending over £470
million. In addition, the impact of tourism generated a further
£187 million to the local economy, giving an overall increase of
Scarborough
1st of the 200 PROMIS centres on the PMA Competition Indicator
1 & 2 chapman’s yard, SCARBOROUGH YO11 1DW
SituationThe property is situated in a prominent corner location at the junction with North Street, Waterhouse
Lane and St Thomas Street. Located directly opposite the subject property is Matalan, Wilko and an
NCP car park providing approximately 480 spaces. In addition there is the town’s largest pay and
display Car Park in close proximity on North Street.
The PropertyThe property comprises a modern building arranged over ground and first floors. TK Maxx trade from the
ground floor level and benefit from ancillary space and staff quarters on the first floor. DW Sports is accessed
via a customer escalator at ground floor level and trades from first floor. Both units are serviced from North
Street to the rear of the building.
TenanciesUnit
Description Tenant Name
Area Analysis (sq ft)
Rent (pax) Start DateExpiry Date
Next O/S Review CommentsGF FF
Unit 1 TJX UK t/a TK Maxx
18,083 3,593 £257,500 25/03/03 24/03/23 25/03/18 Approx 7.95 years unexpired. Guaranteed by TJX Europe Limited. The rent will not exceed £296,125 pax at the last review on 25/03/2018.
Unit 2 Dave Whelan Sports Limited t/a DW Sports
290 13,978 £80,000 01/08/14 31/07/24 01/08/19 12 months rent free (income producing on 01/08/2015). Landlord to top up. The tenant has an option to determine the lease on 31/07/2019. Approx 9.3 years unexpired. 4.3 years to TBO.
Total 18,373 17,571 £337,500
Covenant Strength
TenantD&B
RatingFinancial Year End Turnover Profit (Loss) Net Worth
TJX UK 5A 1 01/02/2014 £1,995,000,000 £91,500,000 £501,700,000
Dave Whelan Sports Ltd 5A 2 30/03/2014 £150,399,784 £4,062,583 £64,356,449
AccommodationThe property consists of circa 3,306 sq.m (35,944 sq.ft).
TenureFreehold.
Current Income pax£337,500 pax
1 & 2 chapman’s yard, SCARBOROUGH YO11 1DW
PROPOSED NORTH STREET DEVELOPMENT
SITE
North Street Car ParkThe car park is accessed off Castle Road and currently provides 156 short stay parking spaces. In
2008 planning permission was granted for a new entertainment complex comprising a six screen
cinema, a bowling alley, shops and an underground car park to replicate the current provision. The
proposed scheme would further enhance footfall benefitting the subject property.
North Street Car Park
1 & 2 chapman’s yard, SCARBOROUGH YO11 1DW
MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. June 2015. Adrian Gates Photography & Design 07710 316991
Further InformationFor further information, including access to a data room, please contact:
Ed Smith020-7659-4831
David Freeman020-7659-4830
Patrick Over020-7659-4832
James Baillie020-7659-4839
Rental ValueWe devalue the TJX UK rent to reflect £11.97 psf and DW Sports to reflect £5.60 psf. Both rents are in
line with the current market tone and we believe there are strong prospects for future rental growth.
There is a shortage of large space units within Scarborough Town Centre and retail warehouse supply
is estimated at just 264,000 sq.ft (PROMIS), all of which is located out of town, focused along the A64
Seamer Road to the south.
EPCEPCs are available upon request.
Service ChargeThere is a service charge in operation with no current Landlord shortfalls. Further information is
available upon request.
VATThe property has been elected for VAT and any disposal will be by way of a Transfer of a Going
Concern (TOGC).
Proposal We have been instructed to seek offers in excess of £4,000,000 (Four Million Pounds), Subject to Contract
& exclusive of VAT, which reflects a net initial yield of 8%, allowing for purchaser’s costs of 5.8%.
Investment Comparables
Date Address TenantAWULT (years) Price Purchaser NIY Comments
Current Chesterfield Primark & Card Factory
8 years £8.12m (Q) Under Offer 6.25% (Q)
£8.50 psf
May 2015 Scarborough Matalan 15 years £5.5m Private Investor
7.25% £11.95 psf
Sept 2014 Bedford New Look 10 years £3.835m Private Investor
6.9% £11.22 psf
Feb 2015 Wolverhampton Poundland & Two Local Retailers
12.6 years £3.975m Oval Real Estate
7.88% £7 psf
Sept 2014 Peterborough New Look & TK Maxx
5 years £9.075m Picton Capital 6.5% £7 psf