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80-82 HIGH ST GUILDFORD GU1 3HU

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

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80-82 HIGH STGUILDFORD GU1 3HU

INVESTMENT SUMMARY• Guildford is the principal administrative and commercial centre for

Surrey and one of the premier retailing locations in the UK.

• Prime position on the pedestrianised High Street between Marks & Spencer and House of Fraser.

• Attractive period building arranged over ground and two upper floors, totalling 7,886 sq ft (732.6 sq m).

• Let to H&M Hennes & Mauritz UK Limited for a term of 15 years from 2nd February 2016, subject to a tenant break option 2nd February 2023.

• Current rent of £375,000 per annum.

• Freehold.

• Opportunity to extend and convert the upper floors to residential with a self-contained entrance from Chapel Street, subject to planning.

• The vendor is seeking offers in the region of £4,130,000 (Four Million, One Hundred and Thirty Thousand Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 8.5% after allowing for purchasers costs of 6.8%.

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LOCATION Guildford is the principal administrative and commercial centre for Surrey and one of the premier retailing locations in the UK. The town is located approximately 33 miles south west of London and 6 miles south of Woking.

The town has excellent communications with dual carriageway access via the A3 to the M25, (8 miles to the north). There are direct and frequent rail services to London Waterloo (40 minutes) London Victoria (44 minutes) Portsmouth, Reading and Gatwick. Both Heathrow and Gatwick Airports are within 25 minutes drive time.

DEMOGRAPHICS Guildford has a primary catchment of approximately 507,000 persons and an estimated shopping population of 241,000 persons.

The Guildford catchment population is one of the most affluent catchments in the UK, ranking 2 of the PROMIS centres on the PMA Affluence Indicator.

The town benefits from a significant student population with the University of Surrey accommodating some 16,000 students. Guildford is also a popular commuter town with over 8.2 million people using the principal station in 2015/2016, making it the busiest station in Surrey.

Guildford is the principal administrative and commercial centre for Surrey and one of the premier retailing locations in the UK.

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RETAILING IN GUILDFORD Guildford is a flourishing market town and attracts some of the highest consumer spending in the South East. Prime pitch within Guildford is located on the pedestrianised section of the High Street, where retailers include Marks & Spencer, House of Fraser, Boots, Hugo Boss, Gant, Ted Baker, Jack Wills, Gap, Masimo Dutti, Russell & Bromley and Next. There are three shopping centres within the town: The Friary Centre, White Lion Walk and Tunsgate Square. However, the High Street remains the premier shopping destination and commands the highest rents.

The retail offer in Guildford is excellent with the town regarded as the luxury shopping capital of the UK, outside of Central London. Guildford has exceptionally strong occupational demand and it is often the first location that retailers seek to establish representation having traded successfully in Central London.

Tunsgate Quarter recently reopened following an extensive refurbishment and has been transformed into a leisure led 70,000 sq ft retail, restaurant and café quarter. The scheme complements the retail offer on High Street adding further aspirational brands and A3 operators in the vicinity. Tenants include The Ivy, Nespresso, The White Company, Bobbi Brown Oka, and Lululemon – demonstrating how the best brands are drawn to Guildford.

SITUATION The property is situated in a prime position on the pedestrianised High Street. Its location between Marks & Spencer and House of Fraser is considered to be 100% prime and is synonymous with high-end luxury retailers. National tenants in the immediate vicinity include Gant, Jack Wills, Gap, Links of London, Ted Baker, Jo Malone, Masimo Dutti, Hugo Boss and Russell & Bromley.

PANNELLS CT

80-82 HIGH ST

Prime position on the pedestrianised High Street between Marks & Spencer and House of Fraser.

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SPACE N

K

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DESCRIPTION The property is an attractive period building comprising a single retail unit arranged over ground and two upper floors. The ground and first floors are used for sales accommodation whilst the second floor is utilised as ancillary accommodation.

ACCOMMODATION The property provides the following approximate net internal floor areas:

ACCOMMODATION SQ FT SQ M

Ground Floor Sales 3,858 358.4

ITZA 919.6 -

First Floor Retail 3,025 281.0

First Floor Ancillary 373 34.7

Second Floor Ancillary 524 48.7

Second Floor Storage 106 9.8

TOTAL 7,886 732.6

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TENURE Freehold.

TENANCY The entire property is let to H & M Hennes & Mauritz UK Limited on a full repairing and insuring lease for a term of 15 years from 2nd February 2016, subject to a tenant break option 2nd February 2023 on 6 months prior written notice. The lease is subject to five yearly upwards only rent reviews. The current rent is £375,000 per annum which equates to £303 Zone A.

COVENANT INFORMATION Cos are part of H&M Hennes & Mauritz UK Limited, which was incorporated in 1979 and operates as a fashion retailer with 6 different brands. H&M has expanded substantially, and today has around 3,900 stores worldwide. Cos was launched in 2007 and is an upmarket fashion brand for women and men who want modern, functional considered design. Cos currently trade from 23 individual stores in the UK.

H&M Hennes & Mauritz UK Limited (company number: 1413450) reported the following financial results for the last three years:

12 MONTHS TO 30/11/2018

12 MONTHS TO 30/11/2017

12 MONTHS TO 30/11/2016

Turnover £1.054 billion £1.062 billion £1.04 billion

Pre-Tax Profit £10.72 million £37.30 million £50.38 million

Net Assets £163.84 million £156.36 million £142.19 million

INVESTMENT COMPARABLES We are aware of the following comparable investment evidence in Guildford:

ADDRESS TENANT DATE PRICE NIY

115 High Street LK Bennett Q3 2018 £6 million 4.45%

149 High Street Anthropologie Q4 2017 £10.25 million 3.66%

92-94 High Street EE and Prestons Q1 2017 £7.6 million 4.30%

133/135 High Street Massimo Dutti Q2 2016 £9.3 million 3.95%

123 High Street L’Oreal Q4 2015 £3.3 million 4.30%

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CAPITAL ALLOWANCES There are no capital allowances available.

VALUE ADDED TAX The property has been elected for VAT purposes and therefore VAT will be payable upon the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

EPC Energy Performance Certificate for the property is available upon request.

PROPOSALThe vendor is seeking offers in the region of £4,130,000 (Four Million, One Hundred and Thirty Thousand Pounds) subject to contract, for the benefit of their freehold interest. A purchase at this level would reflect a net initial yield of 8.5% after allowing for purchasers costs of 6.8%.

FURTHER INFORMATIONFor further information please do not hesitate to contact:

Ryan Springer ryan@springernicolas.co.uk

Alexis Nicolas alexis@springernicolas.co.uk

46 James StreetLondon W1U 1EZ

020 3667 5050 www.springernicolas.co.uk

MISREPRESENTATION ACT 1967

Messrs Springer Nicolas for themselves and for the vendors or lessors of this property for whom they act, give notice that:

(i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract;(ii) Messrs Springer Nicolas cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation, and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations, and must satisfy themselves as to their accuracy;(iii) no employee of Messrs Springer Nicolas has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property;(iv) rents, prices, premiums and service charge quoted in these particulars may be subject to VAT in addition; and(v) Messrs Springer Nicolas will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars.(vi) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.

Adrian Gates Photogrphy & Design: 07710 316 991