BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft...
Transcript of BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft...
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 1
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW REVERSIONARY LONDON RETAIL INVESTMENT FOR SALE
INVESTMENT CONSIDERATIONS
�� Dominant�south�east�London�covered�shopping�centre�investment.
�� Prime�retailing�position.
�� 91%�of�the�income�is�secured�against�the�undoubted�covenants�of�Wilko,�Card�Factory,�Peacocks�and�Iceland.
�� Asset�management�opportunities�to�reconfigure/extend�units,�including��a�current�offer�from�a�leisure�operator.
�� Potential�to�consider�residential�development�above�the�scheme,�subject�to�planning.
�� Average�weighted�unexpired�lease�term�of�approximately�6.68�years.�
�� We�are�instructed�to�seek�offers�in�excess�of�£6,000,000�(Six�Million�Pounds),�subject�to�contract�and�exclusive�of�VAT,�which�reflects��a�contracted�net�initial�yield�of�6.98%�and�deemed�net�initial�yield�of�7.42%�based�on�our�opinion�of�rental�value.
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 2
DARTFORD
WELLING
BEXLEYHEATH
BELVEDEREWOOLWICH
WESTMINSTER
CITY OFLONDON
SOUTHWARK
LEWISHAM
GREENWICH
THE O2
BROMLEY
WEST NORWOOD
KINGSTONUPON THAMES
CROYDON
EAST DULWICH
DOWNHAM
BECKENHAMCHISLEHURST
BEXLEY
RAINHAM
PURFLEET
RIVER THAMES
DARTFORD
WELLING
BEXLEYHEATH
BELVEDEREWOOLWICH
WESTMINSTER
CITY OFLONDON
SOUTHWARK
LEWISHAM
GREENWICH
THE O2
BROMLEY
WEST NORWOOD
KINGSTONUPON THAMES
CROYDON
EAST DULWICH
DOWNHAM
BECKENHAMCHISLEHURST
BEXLEY
RAINHAM
PURFLEET
LONDON RIVER THAMES
A23
A23A24
A24
A20
A202
A501
A232
A207
A207
A226
A202
A13A13
A11
A13
A20
A2
A2
A2
M25
M4
M20
A3
A4
A3
A3
A3
PENGE
LOCATIONPenge�is�located�in�the�Borough�of�Bromley,��in�south-east�London,�and�lies�approximately�3�miles�(5�kilometres)�west�of�Bromley,��4�miles�(6.5�kilometres)�north�of�Croydon��and�9�miles�(14.5�kilometres)�south�of��Central�London.�
The�area�has�excellent�communications�with�Junction�6�of�the�M25�approximately�9�miles�(14.5�kilometres)�to�the�south,�and�the�A205�(south�circular�road)�3�miles�(5�kilometres)��to�the�north.
The�town�benefits�from�two�mainline�railway�stations�within�half�a�mile�of�the�subject�property,�which�connects�to�London�Victoria�and�London�Bridge�with�an�average�journey�time�of�approximately�20�minutes.
Penge�has�a�catchment�population�of��227,679�people.
RETAILING IN PENGERetailing�in�Penge�is�centred�along�the�High�Street�(A234),�with�secondary�retail��on�the�northern�section�of�the�High�Street�and�Maple�Road�to�the�north.�The�south�of�the�High�Street�extends�past�Croydon�Road,�where�there�is�further�secondary�retailing�including�representation�of�both�Sainsbury’s�and�Lidl.�
Blenheim�Shopping�Centre�is�located�in�the�centre�of�Penge�on�the�west�side��of�the�High�Street,�close�to�its�junction�with�Croydon�Road.��The�frontage�to�the�scheme�is�set�back�from�the�High�Street,�accessed�via�a�partially�covered�pedestrianised�walkway.��
Multiple�traders�in�Penge�include�Sainsbury’s,�Lidl,�Greggs,�Superdrug,��HSBC�and��McDonald’s.
There�is�a�lack�of�good�quality�retailing�in�Penge�and�a�large�number�of�outstanding�requirements�including�Home�Bargains,�Argos,�Poundland�and�The�Gym.
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 3
SITUATIONThe�property�occupies�a�prime�trading�position�on�the�west�side�of�the�High�Street.�Nearby�retailers�include�McDonald’s,�Superdrug,�Sainsbury’s�and�Lidl.
DESCRIPTIONThe�property�comprises�a�four�storey�shopping�centre�of�concrete�frame�construction,�providing�four�retail�stores�and�a�kiosk�on�the�ground�floor�with�ancillary�accommodation�on�part�of�the�first�floor.�The�remainder�of�the�first,�second�and�third�floors�comprise�a�multi-storey�car�park,�providing�216�spaces,�accessed�from�Evelina�Road�to�the�south,�with�egress�from�the�car�park�in�Burnham�Close�to�the�north.
Servicing�is�from�a�dedicated�service�yard�to�the�rear�of�each�of�the�units,�which�provides�good�access�directly�into�the�unit’s�ancillary�accommodation.
For�illustrative�purposes�only.
NO
RTH
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 4
ACCOMMODATIONThe�Centre�provides�a�total�of�45,756�sq�ft�(4,250.72�sq�m)�of�retail/ancillary�accommodation,�as�set�out�in�the�accommodation�schedule�below:-
Address Tenant Accommodation Sq Ft Sq M
Unit�1 IcelandGround�Floor�(GIA)First�Floor�(GIA)Total GIA
7,1443,128
10,272
663.67290.31954.27
Unit�2 Peacocks Ground�Floor�(GIA)� 8,613� 800.15
Unit�3 Card�Factory Ground�(NIA)�ITZA� �
936�638�units
86.95��59.27units�
Unit�4 WilkinsonGround�Floor�Sales�(GIA)�First�Floor�Ancillary�(GIA)�Total GIA
17,136�8,717�
25,853
1591.93��809.81�
2,401.74
Kiosk Robert�Guy�Carney�t/a�Heel�Bar Ground�Floor�(NIA) 193� 17.93�
Car�Park Creative�Car�Parking 216�spaces (10,750)
Total Retail Area 45,867 4,261.03
CAR PARKINGThe�Blenheim�Centre�benefits�from�a��216�space�car�park�situated�over�three�levels�and�operates�on�a�phone�and�pay�basis.�The�pricing�tariff�is�as�follows:-��
Up�to�2�hours £1
Up�to�3�hours £2
Up�to�4�hours £3
4�hours+ £8
TENUREThe�property�is�held�long�leasehold�from�the�Mayor�and�Burgess�of�the�London�Borough�of�Bromley�for�a�term�of�125�years�from�12th�August�2010�at�a�Peppercorn�rent.
The�tenant�can�make�structural�alterations�and�erect�new�buildings,�subject�to�the�consent�of�the�landlord,�not�to�be�unreasonably�withheld.��A�copy�of�the�headlease�is�available�on�the�marketing�website.
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 5
TENANCIESThe�property�is�let�in�accordance�with�the�Tenancy�Schedule�set�out�below.��The�current�total�gross�income�is�£491,000�per�annum�exclusive,�which�nets�down�to�£443,067�per�annum�exclusive�after�deduction�of�shortfalls.�The�average�weighted�unexpired�lease�term�is�approximately�6.68�years.�
All�of�the�leases�are�let�on�standard�effectively�Full�Repairing�and�Insuring�terms.��Outgoings�are�recovered�by�way�of�a�comprehensive�service�charge.�
Tenant Name Lease Start Expiry Date Next Review Break Clause Current Rent (pax)
Rental Value (pax) EPC Rating Comments
Iceland�Foods�Limited 14/01/2008 13/01/2023 14/01/2018 £125,000 £133,500�(£13) D80
Peacock�Stores�Limited��(Guaranteed�by�Peacocks�Stores�Ltd) 25/08/2000 24/08/2015 .�. £85,000 £112,000
(£13�per�sq�ff) C67 No�notice�served�from�L/L�due�to�potential�development�options.
Sportswift�Ltd�t/a�Card�Factory 14/05/2013 13/05/2016 .�. £12,000 £22,000(£35�Zone�A) C69
Rent�is�inclusive�of�service�charge�(£4,653)�and�insurance�(£380).�Rolling�mutual�breaks�on�1�months�notice.�The�lease�is�excluded�from�the�L&T�Act�1954.
Wilko�Retail�Limited 30/05/2008 29/05/2023 30/05/2018 £225,000 £225,000(£8.70) C67
Robert�Guy�Carney 01/03/2010 28/02/2030 01/03/2015 01/03/2017�(T) £6,000 £7,000 F145 Rent�review�is�currently�outstanding�and�the�likely�settlement�will�be�at�£7,000.
Star�Park�Management�(No�2)�Limited 29/04/2014 29/04/2029 29/04/2019 If�25%�of�floor�
space�not�trading £38,000� £38,000
Rent�is�inclusive�of�service�charge�(£42,900).�A�turnover�rent�is�payable�of�50%�of�the�sum�by�which�the�gross�annual�turnover�exceeds�£80,000.
Totals £491,000 £537,500
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 6
RENTAL VALUEIt�is�our�opinion�that�the�estimated�rental�value�as�of�today’s�date�would�lie�in�the�region�of�£536,500�per�annum�exclusive,�based�on�the�rental�values�set�out�in�the�tenancy�table.
Our�client�has�received�a�rental�offer�from�a�national�operator�of��£15�per�sq�ft�for�an�amalgamation�of�the�Peacocks�and�Card�Factory�demise,�which�would�result�in�a�substantial�increase�to�the�rent�passing�and�rental�tone.
In�terms�of�Zone�A�evidence,�Unit�2�Colman�House�has�been�let�to�an�independent�restaurant�operator�on�a�new�20�year�lease�from�January�2015�at�a�rent�of�£20,000�pax,�devaluing�to�a�Zone�A�rent�of�£39�per�sq�ft.
157�High�Street�(Shoe�Zone)�was�subject�to�a�rent�review�from�August�2014,�where�the�agreed�rent�of�£24,000�pax�devalued�to�£40�Zone�A.�
116�High�Street�(Ladbrokes)�was�a�lease�renewal�effective�March�2015�at��a�rent�of�£27,000�pax,�which�reflected�a�Zone�A�rent�of�£34.50�per�sq�ft.
SERVICE CHARGEIn�accordance�with�the�lease�terms,�a�detailed�service�charge�is�in�place�with�the�service�charge�year�ending�in�August.
The�budget�for�the�year�ending�31/08/2016�is�£269,308.92.��The�service�charge�is�apportioned�on�a�weighted�area�basis.��Audited�accounts�for�year�ending�2014�and�2015,�together�with�the�budget�for�2016�are�available�from�this�office.�
The�current�shortfall�relates�to�the�Car�Park�lease�where�the�service�charge�shortfall�is�currently�£42,900.59�pa.��A�number�of�repairs�have�been�carried�out�on�the�car�park�over�2015�and�2016�and�further�details�are�available�on�request.�In�addition,�the�lease�of�Unit�3�(Card�Factory)�is�inclusive�of�service�charge�and�insurance�resulting�in�a�shortfall�of�£5,033.
PLANNINGThe�property�has�an�open�A1�retail�consent�including�food.�
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 7
VATThe�property�is�elected�for�VAT�purposes�and�it�is�anticipated�that�the�sale�will�be�treated�as�a�Transfer�of�a�Going�Concern�(TOGC).��
EPCEnergy�Performance�Certificates�can�be�provided�on�request.��The�ratings�are�set�out�in�the�tenancy�schedule.
ASSET MANAGEMENT INITIATIVESIt�is�our�opinion�that�the�asset�offers�a�number�of�initiatives�to�increase�value�as�follows:-
The�ability�exists�to�amalgamate�Peacocks�and�Card�Factory�and�extend�backwards�to�create�an�11,500�sq�ft�store,��or�alternatively,�create�two�large�units.�Offers�and�expressions�of�interest�have�been�received,�and�further�details�are�available�from�this�office.��This�would�serve�to�increase�the�rental�value�and�rental�tone�across�the�scheme,�given�the�paucity�of�large�units.�
Investigate�car�park�development�and�potential�to�add�lightweight�floors�for�a�residential�development.��Initial�surveys�suggest�that�the�structure�is�capable�of�accepting�the�increased�loads�generated�by�a�lightweight,�vertical�extension�above�the�top�deck.��This�is�subject�to�further�investigation�and�a�report�is�available�to�view�on�the�data�site.�
COVENANT STATUS The�salient�covenant�information�on�the�tenants�can�be�set�out�in�the�table�below:-�
Tenant Date Total Turnover (£000)
Pre-Tax Profits (£000)
Net Worth (£000)
Equifax 2015 Score
Iceland�Foods�Ltd 27/03/2015 £2,682,000 £159,000 £710,000 A�-�Excellent
Peacocks�Stores�Limited
(Peacocks�Stores�Limited�is�now�a�wholly�owned�subsidiary�of�The�Edinburgh�Woollen�Mill�Group).
01/03/2014 £324,874 £58,471 £90,545 A�-�Excellent
Wilko�Retail�Limited 31/01/2015 £1,444,563 £5,496 £160,898 B�–�Very�good
Sportswift�Limited�t/a�Card�Factory
31/01/2015 £336,676 £62,320 £58,862 A�-�Excellent
Star�Park�Management�(No�2)�Limited
30/03/2014 N/A N/A N/A F�–�Very�poor
INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 8
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0070. September 2015.
PROPOSALWe�are�instructed�to�seek�offers�in�excess�of�£6,000,000 (six million pounds),�subject�to�contract�and�exclusive�of��VAT�for�the�benefit�of�the�long�leasehold�interest�in�the��subject�property.��
A�purchase�at�this�level�would�reflect�the�following�yield��profile�after�allowing�for�purchaser’s�costs�of�5.8%:-
Contracted net initial yield 6.98%
Deemed net initial yield 7.42% assuming�our�opinion�of�rental�value�on�the�Peacocks
Reversionary yield 8.47%
Equivalent yield 7.95%
True equivalent yield 8.35%
CONTACT Philip�Hay�� Matthew�Coates020�7637�7100� 020�3716�[email protected]�� [email protected]
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C�INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR
PARKING TENURE TENANCIES RENTAL VALUE
SERVICE CHARGE PLANNING ASSET MANAGEMENT
INITIATIVESCOVENANT
STATUS VAT EPC PROPOSAL FURTHER INFORMATION
BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 9