BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft...

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INVESTMENT CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION CAR PARKING TENURE TENANCIES RENTAL VALUE SERVICE CHARGE PLANNING ASSET MANAGEMENT INITIATIVES COVENANT 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

Transcript of BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft...

Page 1: BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft (4,250.72 sq m) of retail/ancillary accommodation, as set out in the

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

Page 2: BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft (4,250.72 sq m) of retail/ancillary accommodation, as set out in the

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

Page 3: BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft (4,250.72 sq m) of retail/ancillary accommodation, as set out in the

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

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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

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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

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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

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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

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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

Page 9: BLENHEIM CENTRE, PENGE, LONDON SE20 8RW...ACCOMMODATION The Centre provides a total of 45,756 sq ft (4,250.72 sq m) of retail/ancillary accommodation, as set out in the

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]

DES

IGN

ED�B

Y�TC

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