69-75 Above Bar Street, Southampton - Cushman & Wakefield · requirements from national multiple...

MULTI-LET HIGH STREET RETAIL PARADE INVESTMENT

69-75 Above Bar Street, Southampton

Investment Summary

• The city of Southampton is one of the principal commercial centres on the south coast of England

• Southampton ranks 22nd on the PMA Fashion Score and 23rd on the PMA Retail Score

• Prominent location on Above Bar Street, Southampton’s principal retailing street

• Freehold

• Majority of the income (44%) secured against Barclays Bank Plc

• Let to the strong national retailers - Barclays Bank, Waterstones and New Look

• Attractive and prominent parade providing modern, well configured retailing accommodation

• Situated equidistant between the city’s two main shopping centres, West Quay and The Marlands

• Retailers in the vicinity include JD Sports, Footlocker, Nationwide and TK Maxx

• Average weighted unexpired term of 6.8 years

• Total current rental income of £855,850 per annum.

• We are instructed to seek offers in excess of £10,400,000 (Ten million, four hundred thousand pounds) reflecting 7.78% NIY after allowing for purchasers costs of 5.80%.



LUTON

STANSTED

HEATHROW

GATWICK

SOUTHAMPTON

CITY

8

76

12

43

3 54

7

6

31

30

4

5

2

8

9

10

11

2 134

14

13

4

3

1

11

10

9

9

14 1312

67

10

65

7

12

1110

9

8

7

8

5

1314

44

12

1

2 3

91110

12

17

1615

78

9

10

20

19

1

32

4

56

17

18

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

12

11

10

9

11

2

26

5

3

1

M23

M1

M27

M26

M25

A3(M)

M40

M4

M3

A329(M)

M25

M25

M25

M25

M20

M1A1(M)

M11

M40

M3

M5

M11

A36

A338

A303

A354

A338

A350

A338

A419

A31

A31

A436

A417

A40

A429

A40

A44

A348

A33

8

A303

A31

A26

A23

A4

A40

A406

A41

A10

A12

A13

A2A20

A3

A24

A34

A27

A3

A34

A13

A127A127

A40A418

A41

A4010

A413

A41

A5

A602

A10

A414

A12

A120

A130 A131

A12

A130A420

A34

A419

A21

A229

A249

A21

A228

A21

A26

A22

A22

A22

A259

A26

A27

A23

A264

A283

A24

A272

A24

A264

A22

A22

A2

A31

A33

A339

A34

A27

A429

Stow-on- the-Wold

Hatfield

Canvey Island

Rayleigh

Chelmsford Maldon

Witham

Braintree

Bishop's Stortford

Tonbridge

Crowborough

Bexhill-on-Sea

Hailsham

Sevenoaks

Petersfield

Shanklin

Newport

Hythe

Lymington

Cowes

Alton

Winchester

Romsey

Farnham

Aldershot

Bracknell

Windsor

Swanley

Andover

Ringwood

Newbury

Dartford

TilburyWoolwich

Barnet

Maidenhead

HarrowUxbridge

St Albans

Hitchin

Dunstable

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

Stevenage

Brentwood

Basildon

Gravesend

Tunbridge Wells

Maidstone

Hastings

Eastbourne

Rochester

Gillingham

Chatham

Crawley

BrightonHove

WorthingBognorRegis

Havant

Eastleigh

Basingstoke

Guildford

Woking

Camberley

Staines

Reading

Poole

Bournemouth

Cheltenham

Harlow

Slough

Watford

Luton

Amersham

HighWycombe

Oxford

Fareham

Gosport

Portsmouth

SOUTHAMPTON

LONDON

Location

Southampton is a major port city and one of the UK’s primary commercial centres. The city is located approximately 76 miles (122 km) southwest of Central London, 30 miles (48 km) east of Bournemouth and 20 miles (32 km) west of Portsmouth.

The city benefits from excellent road communications, being located just 3 miles (4.8 km) south of the M3 motorway, which connects with both the M25 and the M27, the latter providing east/west links to Portsmouth and the New Forest.

Furthermore, Southampton has strong rail connections; there are fast and frequent services to London Waterloo with fastest journey times of approximately 1 hour 10 minutes. There are additional direct services to Bristol, Gatwick Airport, Winchester and Bournemouth.

Southampton Airport is located 3.5 miles (5.6 km) to the north-east of the city centre and provides flights to over 40 UK and European destinations. In excess of 1.7 million passengers used the airport in 2013 (CAA.)

Demographics

The total population within the Southampton primary catchment area is 719,000, above the Regional Centre average and ranking the city 18 out of the PROMIS Centres. The estimated shopping population of Southampton is 434,000, ranking the city 16 of the PROMIS centres, which is above the average for the Regional Centres. This relatively high penetration within the primary catchment demonstrates Southampton’s dominance as a key retail centre on the south coast.

Southampton benefits from a significantly above average proportion of people categorised within the most affluent AB social group. The city also has a large student population (approximately 50,000 persons) shared between Southampton University and Southampton Solent University which boosts the local economy. Furthermore, Southampton benefits from a thriving tourism industry and serves as England’s main cruise port, with over 1 million passengers each year.



Retailing in Southampton

Southampton is a major regional retail destination on the south coast. City centre retail floor space totals approximately 2.18 million sq ft, which is above the regional centre average and ranks the town 12th out of the Promis centres by this measure. Furthermore, Southampton ranks 23rd on the basis of its PMA Retail Score and 22nd on the PMA Fashion Score.

The 800,000 sq ft Hammerson-owned West Quay shopping centre opened in 2000 and significantly improved Southampton’s retail offer. Since its opening it has been consolidated as Southampton’s prime pitch and retailers located here include John Lewis, Marks & Spencer, H&M, River Island, Apple, Next, Republic, Dorothy Perkins, Hollister and Gap. Hammerson have been granted outline planning permission for a £150m leisure led extension to West Quay.

Above Bar Street, which was Southampton’s traditional prime pitch, is the principal retail thoroughfare in Southampton. The street runs in a north-to-south direction and is pedestrianised in the prime retail core, which is generally concentrated around the entrance to West Quay on the western side of the street. Retailers located on Above Bar Street include Boots, TK Maxx, Bhs, Primark, Urban Outfitters, HMV, Topshop and Peacocks.

Southampton currently has strong occupational demand with active requirements from national multiple retailers including Tiger, Deichmann Shoes, Lakeland and Moss Bros. There is also significant demand from convenience store operators including Sainsburys Local, Tesco Express and M Local.

Description

The property provides a purpose built modern retail block constructed in 1993 and comprises of three retail units which offer ground, first floor and basement sales accommodation along with ancillary accommodation on second floor and basement floors.

The premises totals 27,247 sq ft (2,531.31 sq m) and each unit has rear servicing.



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Situation

The property is situated in a prominent position in an edge of prime location on the busy western side of the pedestrianised Above Bar Street. The property sits equidistant between the West Quay entrance and The Marlands shopping centre entrance and consequently benefits from significant footfall.

The property is situated opposite Nationwide and other nearby retailers include JD Sport, Footlocker, Trespass, TK Maxx and Halifax Bank.

For indicative purposes only

Tenure Freehold.

Tenancy

Unit 1: Let to Waterstones Booksellers Limited on a 25 year effectively FRI lease until 30 September 2019. The current passing rent of £280,000 per annum has an outstanding review from 1 August 2014.

Unit 2: Let to Barclays Bank Plc on a 15 year effectively FRI lease until 15 January 2024. The current passing rent of £375,000 per annum has an outstanding review from 16 January 2014.

Unit 3: Let to New Look Retailers Limited, with a guarantee from New Look PLC, on a 24 year effectively FRI lease until 31 July 2019. The current passing rent of £200,850 per annum has an outstanding review from 24 June 2010.

Unit Tenant Accommodation Area (sq ft) Area (sq m) Start Date Expiry Date Rent

1 WATERSTONES BOOKSELLERS LTD Ground Floor Sales 2,328 216.28 01/08/1994 30/07/2019 £280,000

ITZA 1,015

Ground Floor Ancillary 30 2.79

Basement Sales 4,891 454.38

Basement Ancillary 348 32.33

2nd Floor Ancillary 1,555 144.46

2 BARCLAYS BANK PLC Ground Floor Sales 3,793 352.38 16/01/2009 15/01/2024 £375,000

ITZA 1,245

Ground Floor Ancillary 138 12.82

1st Floor Sales 5,740 533.26

1st Floor Ancillary 781 72.56

2nd Floor Ancillary 2,778 258.08

3 BLACKS on sublease from NEW LOOK RETAILERS LTD

Gnd Floor Sales 2,362 219.44 24/06/1995 31/07/2019(Sublet to Blacks until

26/07/2019 with a Blacks option to break

14/05/2018)

£200,850

ITZA 912

1st Floor Sales 1,324 123.00

1st Floor Ancillary 507 47.10

2nd Floor Ancillary 672 62.43

Total 27,247 2531.31 £855,850



Tenant Covenants

Barclays Bank PLC is the retail banking subsidiary of Barclays PLC, a British multinational banking and financial services company headquartered in London. The company was founded in 1925 and is regarded as one of the UK’s main high street banks. The latest financial figures for Barclays Bank PLC are set out below:

Barclays Bank PLC 31-Dec-11 31-Dec-12 31 Dec 2013

Turnover n/a n/a n/a

Pre-Tax Profit 5,974,000,000 650,000,000 2,885,000,000

Total Net Worth 54,172,000,000 52,063,000,000 53,264,000,000

New Look Retailers Ltd is a global fashion retailer with a chain of approximately 1,160 stores throughout the world. The company was founded in Taunton in 1969 and has expanded to employ some 30,000 staff. The latest financial figures for New Look Retailers Ltd are set out below:

New Look Retailers Ltd 26-Mar-11 24 Mar 2012 30-Mar-13

Turnover 1,215,251,000 1,205,753,000 1,248,464,000

Pre-Tax Profit 96,474,000 68,190,000 121,909,000

Total Net Worth 909,634,000 1,005,777,000 1,143,242,000

Waterstones Booksellers Ltd is a Britain’s biggest high street book retailer and operate approximately 275 stores throughout the UK and Europe. The company was purchased A&NN Capital Fund Management in May 2011 and has since been investing in store refurbishment and growing the business. The latest financial figures for Waterstones Bookseller Ltd are set out below:

Waterstones Booksellers Ltd 30-Apr-11 28-Apr-12 27-Apr-13

Turnover 477,424,000 410,354,000 398,464,000

Pre-Tax Profit -20,597,000 -37,314,000 -23,046,000

Total Net Worth 51,676,000 8,864,000 -14,179,000

Further financial information is available upon request.

Market Commentary

Southampton is widely regarded as one of the South’s leading retail centres and this is backed up by rental levels in the town. Prime rents in West Quay currently sit at approximately £375 Zone A. Above Bar Street peaked at approximately £210 Zone A and fell back to approximately £150 Zone A at the height of the recession. Prime rents currently sit at £180 Zone A, as demonstrated by the recent letting to HSBC at 55 Above Bar Street and provide good scope for rental growth. The city centre is consistently well let and in July 2014 there were 35 reported retail requirements for Southampton, compared with the UK average of 13 (PROMIS.)



VAT

It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). However, should this not be the case, the property has been elected for VAT and therefore VAT will be payable on the purchase price.

EPC

Unit 1, Waterstones has an EPC rating of C64.Unit 2, Barclays has an EPC rating of E101.Unit 3, New Look has an EPC rating of D90.

Full EPCs are available upon request.

Proposal

We are instructed to seek offers in excess of £10,400,000 (Ten million, four hundred thousand pounds) reflecting 7.78% NIY after allowing for purchasers costs of 5.80%.

Further Information

Chris Lewis Tel: 0207 152 5991 Email: [email protected]

Sam Waterworth Tel: 0207 152 5149 Email: [email protected]

Cushman & Wakefield LLP (and any joint agent appointed) on its own behalf and for vendors or lessors of this property, whose agent it is, gives notice that: (1) The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. (3) The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Publication Date: February 2015

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69-75 Above Bar Street, Southampton - Cushman & Wakefield · requirements from national multiple...

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