22 clarence street - jacksoncriss.co.uk · • kingston-upon-thames is an affluent retail centre in...

100% PRIME RETAIL INVESTMENT FOR SALE

22 CLARENCE STREETKINGSTON-UPON-THAMES

http://www.jacksoncriss.co.uk/

INVESTMENT SUMMARY

• Kingston-Upon-ThamesisanaffluentretailcentreinSouthWestLondonandoneoftheUK'sleadingretailingcentres.

• Rarelyavailableretailinvestment,occupyinga100%primepositiononthepedestrianisedClarenceStreet,closetothemainentrancetotheBentallCentre.

• Freehold.

• Excellentrentalgrowthprospectsgiventhestrongdemandforthetown.

• LettotheundoubtedcovenantofItsuLimitedwithover5,000sqftofretailaccomodation.

• EfficientandgoodvalueretailfloorspacewiththegroundfloorITZAareareflectingonly31%oftheoverallgroundfloorarea.

• Thecurrentrentpassingis£350,000perannumexclusive.

• Scopetoaddresidential/commercialaccommodationtotheupperfloorssubjecttoplanning.

• Ourclientsareseekingoffersinexcessof£7,150,000 (Seven Million One Hundred and Fifty Thousand Pounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelwouldreflectanetinitialyieldof4.58%,afterallowingforpurchaser’scostsof6.65%.

22 CLARENCE STREET, KINGSTON-UPON-THAMES 100% PRIME RETAIL INVESTMENT FOR SALE



LOCATIONKingston-Upon-ThamesisoneoftheUK’sleadingcommercialandretailingcentresandisoneoftheonly6RoyalBoroughsinEnglandandWales.ThetownislocatedintheaffluentSouthWestofGreaterLondon,approximately5milessouthofRichmond,11mileswestofCroydonand12milessouthwestofCentralLondon.Thetownbenefitsfromexcellentcommunications,withitbeingincloseproximitytotheM25,M3andA3.ThetownbenefitsfromaregularcommuterrailservicetoLondonWaterloo,withafastestjourneytimeofapproximately20minutes.

LondonHeathrowAirportislocatedapproximately40mileswestofthetownandLondonGatwickAirportislocated17milestothesoutheast,enablingeasyaccesstoadiverserangeofdomesticandinternationalflights.

DEMOGRAPHIC PROFILEKingstonhasanestimatedprimarycatchmentpopulationof887,000,significantlyabovetheRegionalCentreaverageandrankingthetown13thoutofthePROMIScentresonthismeasure.TheestimatedshoppingpopulationofKingstonis467,000,rankingthetown15thoutofthePROMIScentres,reflectingthedominanceofKingston acrossitsdenselypopulatedcatchmentarea.

Thetownalsoranks11thintermsofthevolume ofcomparisonretailspendavailableinthe catchmentareaandisforecasttoseesignificantlyaboveaveragegrowthinthatspendingbetween2015–2020.

Kingstonhasanaffluentcatchmentpopulation, witha36%representationofABC1demographicsandanaveragehousepriceof£488,250(September2016)accordingtodatafromTheRoyalBoroughofKingstonuponThames.

J16/J1A

A355

A437

A412

A 4020

A408

A4180

A4

A

312

A413

L ONDON RD A4 BAT H RD

J15/J4B

A308

A4155 A40

94

A 4094

A33

0

A30 A308

A308

A31

6

A4

06

A406

A1

A1

A1

A406

A41

A41

A4

1

A5

A4 A4 A4

A3

A214

A3

A3

A205 A205

A40 A40

A 40

A40

J16/1A

J15/4B

River Tha m

es

River Tha m

es

A332

A30

A308

A329KINGSTON UPON

THAMES

CENTRALLONDON

KINGSTON UPONTHAMES

WIMBLEDON

MITCHAM

CLAPHAM

BATTERSEA

HOUNSLOW

FELTHAM

BRACKNELL

ASCOT VIRGINIAWATER

WINKFIELD

FIFIELD

BRAY

MAIDENHEAD

HIGHWYCOMBE

EGHAM STAINES

SLOUGH

WINDSOR

OLDWINDSOR

HEATHROW AIRPORT

HARROW

WATFORDRICKMANSWORTH

HAMMERSMITH

EALINGHAYES SOUTHALL

GREENFORD

RICHMOND

TWICKENHAM

TEDDINGTON

PUTNEY

CHISWICK

UXBRIDGE

M25

M25

M25

M40

M40

M4A404(M)

M4

M4

M1

M1

M3

M4

M4




RETAILING IN KINGSTONKingston-Upon-ThamesisoneoftheUK’s mostsignificantandrenownedretailcentres,arguablyoneofthestrongest HighStreetshoppingdestinationswithin theM25outsideofCentralLondon.

ThetowncentreretailfloorspaceinKingstonisestimatedat1.40msqft.Kingstonranks16onthebaseofitsPMAretailscoreand16onthePMAfashionscore.Thetown’shighrankingonthePMAretailandfashionscores,reflectsanextensiverangeoffashionandnon-fashionretailersinthetown.KeyfashionretailersincludeCos,H&M,Hollister,Primark,NewLook,MonsoonandRiverIsland,aswellasuppermiddlequalityoperatorssuchasKarenMillen,Jigsaw,Reiss,LKBennettandMassimoDutti.

Kingstonoffers2qualitydepartment storesinJohnLewisandBentalls,withvarietystoresincludingMarks&Spencer andPrimark.

ThemainfocusofprimeretailactivityinKingstonisthepedestrianisedClarenceStreet,hometoMarks&Spencer’stwostoresandthemainentrancetoTheBentallShoppingCentre.TheprimeretailingextendsintoTheBentallShoppingCentre,whichcomprisesapproximately600,000sqftofretailfloorspaceandtradesover4floors.Avivahaveproposalstomakeaestheticimprovementstothescheme’sfrontagetoClarenceStreet,aswellasthetenantmixinternally.Proposalsincludeafourscreenboutiquecinema,4newrestaurants,newstoreopeningsandimprovementstomallareas.

TheothermainmanagedshoppingcentreisEdenWalk,whichcomprisesapproximately290,000sqftofretailfloorspaceandisanchoredbyBootsandHabitat.BritishLandandtheUniversitiesSuperannuationScheme(USS)haveplanningpermissiontocarryoutatransformativeredevelopmentofEdenWalktofeaturenewstores,diningterrace,boutiquecinemaanda“sky”restaurant.Thecomplexwillalsoinclude385residentialflats.Theproposedtimescaleforcompletionis2021/2022.

PrimarkhaveextendedtheirstoreonEdenStreetbyapproximately59,000sqft,whichwillfurtherstrengthenthesecondarythoroughfareofEdenStreet.

SITUATIONThepropertyoccupiesa100%primetradinglocationonthepedestrianisedClarenceStreet,closetoitsjunctionwithFifeRoad,whilstincloseproximitytothemainentrancetotheBentallShoppingCentre.NearbyretailersincludeMarks&Spencer, TopshopandMonsoon.




WEST ELM VIRGIN

MED

IA

NORTH




DESCRIPTIONThepropertycomprisesabrickbuiltpropertyarrangedovergroundandfirstfloors.

ACCOMMODATIONThepropertyhasbeenmeasuredinaccordancewiththeRICScodeofmeasuringpractice(SixthEdition)andprovidesthefollowingappropriatenetinternalfloorareas:

OverallFrontage 27ft6ins (8.38m)

NetFrontage 26ft (7.93m)

InternalWidth 24ft9ins (7.59m)

Shop Depth 104ft (31.71m)

GroundFloorSales 3,125sqft (290.32sqm)

GroundFloorITZA 978units

FirstFloorSales/Store 1,880sqft (174.65sqm)

Total Area 5,005 sq ft (464.98 sq m)

TENURE Freehold.

TENANCY ThepropertyislettoItsuLimited(CompanyNo.03286342)onassignmentfromBurton/DorothyPerkinsPropertiesLtd(CompanyNo.04464946)onafullRepairingandInsuringleaseforatermof10yearsfrom25thMarch2012,atacurrentrentof£350,000pa.




COVENANT STRENGTHItsuisBritishchainofAsianinspiredfastfoodshopsandrestaurantsandopenedasabusinessin1997.Thecompanynowhaveover70companyownedstoreswiththefirstinternationalstoreduetoopeninNewYorkinJune2018.

Thesummaryaccountinformationcanbeseenasfollows:

ITSU LIMITED

29/12/2016 £

31/12/2015 £

01/01/2015 £

Experian Score

out of 100

Turnover 95,911,995 82,647,288 67,869,415

60PreTaxProfit -9,435,451 624,398 2,021,984

TotalNetWorth 22,006,164 6,484,755 6,253,624

The2016figureswereaffectedbythe100%buyoutofITSUgrocery,theopeningofanewUSAcompanyandthefitoutofthenewcompanyheadoffice.Weunderstandthatthecompany’sturnover for2017willbec£100mresultinginapretaxprofitofc£3m.

Kingston is one of the most significant and renowned retail centres located in

South West London




RENTAL VALUEItisouropinionthattheestimatedrentalvalueofthepropertyasoftoday’sdatewouldlieintheregionof£350,000perannumexclusive,whichreflectsaZoneArentof£306persqft,applyingA/10to75%ofthefirstfloorsalesareaandA/20totheremainder.Theshopisperfectlyconfiguredforthezoningtechniqueofferingarealisticrentallevelforthesizeoftheproperty.

Asanexample,theadjacentHemashopat24ClarenceStreetisletatarentof£482,000paforagroundfloor areaof2,367sqftwith1,934sqftatfirstfloorlevel. Thetotalareais4,301sqft,whichis14%smallerthan thesubjectproperty.

TherehasbeenlimitedopenmarketrentalevidenceonthissectionofClarenceStreetbutthemostrecentevidencecanbesetoutasfollows:-

1. 63 Clarence Street, (Body Shop)LeaserenewalwitheffectfromAugust2017,ona10year leaseatarentof£200,000pa,whichreflectsanetzoneAof£287persqft.Thepropertyisinaninferiorlocationtothesubjectproperty.

2. 34 Clarence Street (Topshop)LeaserenewalJanuary2016.Thetenanttooka10yearlease atarentof£450,000pa,whichreflectedaheadlinezoneA of£328persqftandanetzoneAof£300persqft.The shophasagroundfloorareaof4,012sqftandafirstfloorareaof2,895sqft.

3. 40 Clarence Street (North Face)RentreviewSeptember2016,agreedonarentalof£264,000whichreflectsAzonerentof£290persqft.Theshophadagroundfloorareaof1,915sqftwith1,668sqftatfirstfloorlevel.Thetotalareais3,583sqft.Thepropertyisinaninferiorlocationtothesubjectproperty.




VATWeunderstandthatthepropertyiselectedforVAT.However,itisenvisagedthatthesalewillbedealtwithasaTransferofaGoingConcern(TOGC).

EPCThepropertyhasanEPCratingofD83.AcopyoftheEPCcertificateandreportisavailablefromthisoffice.




PROPOSALWeareinstructedtoseekoffersforthefreeholdinterestinexcessof£7,150,000 (Seven Million One Hundred and Fifty Thousand Pounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevel wouldreflectanetinitialyieldof4.58%afterallowingforpurchaser's costsof6.65%.

Thesalepricereflectsalowcapitalvalueof£1,428persqft.

Theprincipalcomparableevidencecanbesetoutbelow.

1 Church Street/23 Market Place, Kingston (Pret A Manger) Freeholdretailinvestmentcurrentlyunderofferforthepriceinexcessof£4.9mwhichreflectsanetinitialyieldof4%.Thesalepricereflectsacapitalvalueof£1,389persqft.ThepropertyoccupiesaninferiorlocationtoClarenceStreet.

10/13 Market Place, Kingston (Clas Ohlson) OffmarketfreeholdtransactionpurchasebySportsDirectfor£15.25m inOctober2017whichreflectedanetinitialyieldof4%.

55/57b Clarence Street & 4 Fife Road, Kingston (Oasis/3G/Virgin/Montezuma) FreeholdsaleofblocktoDTZIMfor£18.1minJuly2017,whichreflectedanetinitialyieldof4.4%andanequivalentyieldon4.12%.Thesalepricereflectedacapitalvalueof£1,892persqft.

40b Clarence Street, Kingston (Topman) FreeholdretailinvestmentlettoTopshop,soldinJuly2016for£5.9mreflectinganetinitialyieldof4.21%andanequivalentyieldof4%. Thesalepricereflectedacapitalvalueof£2,020persqft.

40/48 Clarence Street, Kingston (North Face/EE) FreeholdblocklettoNorthFaceandEE,soldinMay2016for£10.53mreflectinganetinitialyieldof3.91%andanequivalentyieldof4%. Thesalepricereflectsacapitalvalueof£2,045persqft.




Forfurtherinformation,pleasecontact:

Philip Hay

020 7637 [email protected]

Brook Wannop

020 7637 [email protected]

Messrs.JacksonCrissforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyaretogivenoticethat:(i)theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersorlessees,anddonotconstitute,norconstitutepartof,anofferorcontract;(ii)alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrectbutanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsofrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;(iii)nopersonintheemploymentofMessrs.JacksonCrisshasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtothisproperty.100586.April2018.D

ESIGNEDBYTCC


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



22 clarence street - jacksoncriss.co.uk · • kingston-upon-thames is an affluent retail centre in...

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