Post on 07-Jan-2022
ON BEHALF OF
RBS HEMEL HEMPSTEAD 89 THE MARLOWES, HP1 1XYFREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL
Site outline for indicative purposes only
Investment Summary
Freehold investment in an affluent London commuter town
Flagship banking premises with large car park to the rear
9,782 sq ft (908.8 sq m)
Site area of 0.38 acres (0.13 ha) with a low site coverage of 30%
Let entirely to the strong covenant of The Royal Bank of Scotland plc for a further 4 years
Recent lease renewal demonstrating the tenant’s commitment to the property
Well specified accommodation providing ground floor banking hall and two upper floors of office accommodation
Current passing rent of £145,000 pa (£14.82 per sq ft)
The property offers a number of asset management opportunities including converting the upper parts to residential (via permitted development) and developing the site to the rear (subject to planning)
Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.
RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL
Heathrow
Gatwick
StanstedLuton
J27J25J23
J21
J20
J19
J16
J15
J12
J10
J7J8
J9
J6
J5
J3
J2
J29
J28
A127
A505
A418
A602
A120
A131A130
A138
A130
A130
A130
A243
A217
A232
A331
A322
A316
A309
A264
A229
A404
A355
A404
A413
A4010
A414
A414
A414
A5
A1
A3
A2
A41
A40
A31
A24
A24
A24
A23
A21
A20
A20
A12
A10
A10
A10
A12
A13
A21
A26
A26A21
A22
A22
A23
A23
M1
M4
M3M2
M25
M10
M40
M25
M25
M23
M26
M25 M20
M20
M25
M11
M11
M25
A1(M)
Harlow
Potters Bar
Luton
Aylesbury
Stevenage
LONDON
Hatfield
Dartford
Bromley
Gravesend
Croydon
Biggin Hill
Romford
Sevenoaks
RoyalTunbridge
Wells
Maidstone
Snodland
East GrinsteadCrawley
Horley
Horsham
HaywardsHeath
RedhillOxted
DorkingGuildford
Staines
Slough
St Albans
HighWycombe
Watford
WembleyUxbridge
RuislipHarrow
HollowayStratford
Enfield
Barnet
Windsor
Woking
Sutton
Clapham
Weybridge
Richmond
Benfleet
Brentwood
Chelmsford
Basildon
HEMEL HEMPSTEAD
HEMEL HEMPSTEAD
LAWN
LANE
A41
4 TW
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A4146 STATION RO A D
A414 ST ALBANS ROAD
A4146
LE
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A4251 LONDON ROAD
B487
ST JOHN’S ROAD
WARNERS END ROAD
PARK LANE
MARLOW
ES
WOLSEY ROAD
MARL O WES
WATERHOUSE ST
DACORUM W
AY
ALEXANDRA RD
MIDLA N D ROAD ADEYFIELD ROAD
ALEXANDRA RD
MAY
FLOWER AVE
HILLFIELD ROAD
Hemel Hempstead
Keen Fields
Adeyfield Adventure Playground
Heath Park
HEMEL HEMPSTEAD
HOSPITALTHE MARLOWES SHOPPING
CENTRE
Location
Hemel Hempstead is an affluent London commuter town located in the Chiltern Hills. The town is located within close proximity to the North West quadrant of the M25 approximately 5.0 miles (8 km) north west of St Albans, 7.5 miles (12 km) north of Watford and 9.0 miles (14.5 km) south of Luton. Central London is located approximately 22.3 miles (36 km) to the South East.
The area benefits from excellent communications with Hemel Hempstead being located on the London Midland train line which provides regular services into Central London.
Road communications are good with the town being located 1.5 miles (2 km) from junction 1 of the M1 Motorway and 2.5 miles (4 km) from junctions 20/21 of the M25 Motorway.
London Luton Airport (currently ranked as the fifth busiest airport in the UK) is situated approximately 11.6 miles (19 km) to the north providing flights to over 100 destinations with over 12.2 million people passing through the airport in 2015.
Demographics
Hemel Hempstead is a thriving town benefiting from its location within a commutable distance of London. The town has an estimated shopping population of 107,000 with 181,000 living within the primary catchment area.
Hemel Hempstead has one of the most affluent catchment populations in the UK, ranked 24th of the PROMIS centres. The Census in 2011 showed that the Hemel Hempstead area contained a significantly above average proportion of adults of working age categorised within the most affluent AB social group and the per capita retail spending levels are above the PROMIS average.
Hemel Hempstead Travel Times
BY TRAIN
Watford Junction 7 minutes
London Euston 26 minutes
Milton Keynes 33 minutes
Clapham Junction 49 minutes
BY CAR
Luton 17 minutes
Milton Keynes 39 minutes
London 55 minutes
Oxford 72 minutes
AIRPORT DRIVE TIMES
London Luton 19 minutes
London Heathrow 33 minutes
London Stansted 49 minutes
London Gatwick 70 minutes
RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL
RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY
Situation
The property is situated on the eastern side of The Marlowes close to its junction with Hillfield Road. The Marlowes is Hemel Hempstead’s principal retailing thoroughfare.
The property is adjacent to a multi-storey NCP car park and there is a Asda superstore behind. ‘The Forum’ development is currently under construction directly opposite the property.
Description
The property comprises a ground floor banking hall with offices on the first and second floors. RBS are in occupation of the ground floor and have limited occupation of the offices on the first floor. The accommodation on the second floor is currently not used by the tenant.
There is a separate access to the first and second floor office accommodation potentially allowing for multiple occupiers within the building. There is further access to the first and second floor via a fire escape to the rear of the property.
Site Area
The property has a total site area of 0.38 acres (0.13 ha).
Covenant
The Royal Bank of Scotland plc is rated 5A1 by Dun and Bradstreet. The business produced the following headline accounts over the last 3 years:
28
33
27
35 37
PH
to30
34
TCBs
Tank
SquareThe
KIN
MAR
LOW
ES
Sta
El Sub Sta
Shops(below
)
NCPMultistorey Car Park
‘The Forum’Development
ASDA
Shelter
15040 41
45
4246
24 21
111
2
5
12
15
616
717
818
130
138
146
148
148
107
5759
6365
6769
71b71a71
73
85
13
152
140
142
3
136
132
134
7 7a
Shelters
AtlanticBusinessCentre
97 to 99
105
93
HILLFIELD ROAD
© Crown Copyright, ES 100004106. For identification purposes only.
Tenure
Freehold
Tenancy
The property is let to the Royal Bank of Scotland plc for a term of 5 years from 15 June 2015 with a current passing rent of £145,000 pa (£14.82 per sq ft).
Accommodation
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and International Property Measurement Standards, (1st Edition) and provides the following floor areas:
Net Internal Area IPMS 3
Floor Use Sq Ft Sq M Sq Ft Sq M
Ground Banking Hall 2,039 189.4 2,039 189.4
1st Office 3,727 346.3 3,804 353.4
2nd Office 4,016 373.1 4,073 378.4
Total 9,782 908.8 9,916 921.2
31/12/2012 (000’s)
31/12/2013 (000’s)
31/12/2014 (000’s)
Turnover £26,375,000 £26,495,000 £18,315,000
Pre-Tax Profit -£3,412,000 -£6,761,000 £2,403,000
Total Net Worth £46,885,000 £36,434,000 £62,332,700
FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL
Site outline for indicative purposes only
Office Market in Hemel Hempstead
Hemel Hempstead has a built stock of approximately 3.1 million sq ft. Total availability currently stands at 7.1% which is in line with similar office markets across the South East. Hemel Hempstead suffers from a severe lack of Grade A accommodation, mainly due to a shortage of recent developments resulting in no new office space. Take up in 2015 was estimated to be 102,000 sq ft.
Headline Grade A rents are currently at £20.50 psf which is on par with the record rents recorded pre 2007. Grade B office accommodation rents are now approximately £15 per sq ft .
Hemel Hempstead – An Evolution
Branded as “Hemel Evolution” over £30 million is being invested into the regeneration of the town centre. Work has already started including significant improvements to the pedestrianised shopping areas and a new bus interchange has been implemented. The original Marlowes zone, within which the subject property is located, is subject to redevelopment with The Forum development currently under construction. This development is a joint venture between the council, Endurance Estates and R G Carter and will house the Dacorum Borough Council and include a new county library. ‘The Forum’ will be surrounded by more than 200 new homes.
RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL
Retailing in Hemel Hempstead
Hemel Hempstead town centre has a strong offering of national multiples and independent retailers with town centre retail floor space estimated at 0.76 million sq ft. The town’s main retail offer runs north to south along the pedestrianised section of The Marlowes which is where the two purpose-built managed shopping centres – The Marlowes Shopping Centre and Riverside Shopping Centre are located.
This pitch is directly south of the subject property, which is located on the non-pedestrianised stretch of the Marlowes. Nearby traders are typically secondary in nature however the council’s development of ‘The Forum’ to the north of the property will improve the immediate surroundings.
DEVELOPMENT POTENTIAL
The location and the layout of the property offers potential for alternative uses including care home and residential. The multiple access points to the property make the property viable for permitted development. The site at the rear could also be further developed subject to planning.
Comparable flats in the nearby area have been achieving £450 psf.
On behalf of
EPC
The property has been rated Grade C (71). The EPC is available on request.
VAT
The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC).
For further information or to make arrangements for viewing please contact:
www.allsop.co.uk
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 06.16
Dale Johnstone020 7543 6796dale.johnstone@allsop.co.uk
Jonathan Butcher020 7543 6755jonathan.butcher@allsop.co.uk
Roseanna Eden020 7543 6740roseanna.eden@allsop.co.uk
Proposal
Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.