PRIME FREEHOLD RETAIL INVESTMENT€¦ · PRIME FREEHOLD RETAIL INVESTMENT ... Slough is a major...
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190/192 HIGH STREET, SLOUGH, BERKSHIRE PRIME FREEHOLD RETAIL INVESTMENT Retail Property Consultants
Transcript of PRIME FREEHOLD RETAIL INVESTMENT€¦ · PRIME FREEHOLD RETAIL INVESTMENT ... Slough is a major...
190/192 HIGH STREET, SLOUGH, BERKSHIREPRIME FREEHOLD RETAIL INVESTMENT
Retail Property Consultants
Retailing within SloughRetailing in Slough has historically been dominated by theQueensmere and Observatory Shopping Centres. Theprime retail pitch is now perceived to be the High Streetwhich is proving to be a more popular location withretailers. A number of recent lettings has been as a resultof retailers relocating from these schemes in a drive toreduce property costs. We anticipate this trend continuing.
Recent improvements, including repaving, together withthe introduction of new street furniture, has dramaticallyimproved the pedestrianised section of the High Street,increasing pedestrian footfall.
Major occupiers in the town include Debenhams, Primark,Bhs, Next and Marks & Spencer.
There is substantial town centre car parking with 900spaces in the Queensmere Centre and 630 spaces withinthe Observatory Shopping Centre along with an extensivecar park (400 spaces) adjacent to the rail station.
SituationThe property occupies a 100% prime position within theHigh Street located between Boots and Bhs. Top Man,River Island and W H Smith are all within close proximity.The Empire cinema and restaurants in Town Squareopposite the property introduces a leisure use to the HighStreet which has contributed to increased footfall andgreater consumer dwell time in the town centre.
Catchment EconomySlough has a prosperous catchment population of315,000 within a 10 km radius and in excess of1.63 million people within 20 km. The resident populationis approximately 150,000 and this is set to grow to175,000 by 2016 (Source: Experian). The success andprosperity of the catchment population is demonstratedby the following socio-economic statistics.
Unemployment within Slough has historically been belowthe national average and is currently 3.7% compared tothe national average of 4.3%.
Banking, finance, transport, storage and communication,together with manufacturing, are the dominant sources ofemployment within the catchment. Major employersinclude O2, Tesco, Asda, Computer Associates, OrangeBusiness Services, Honda, Compuware and Amazon.
Classification Slough UK Average
Prosperous & Successful 10.30% 9.70%
Happy Families 15.58% 11.40%
Suburban Comfort 24.43% 14.69%
Investment Considerations
• A prime High Street location.
• A vibrant, successful and growing catchmentpopulation.
• Two well proportioned refurbished unitsproviding accommodation in line with currentretailer trading aspirations.
• Two new 10 year leases let to two strong 5A1covenants.
• A rebased rental level.
• £4,300,000 subject to contract providing a netinitial yield of 6.25% with genuine rental growthprospects.
LocationSlough is a major commercial centre within the ThamesValley located approximately 38 km (24 miles) west ofLondon and 16 km (10 miles) west of Heathrow Airport.Communication links are excellent with Junction 5 of theM4 motorway within a mile of the town centre which, inturn, connects with the M25, 3 miles to the east. Thereare frequent rail services to London (Paddington) with anaverage journey time of 27 minutes.
TenureFreehold.
Tenancy190 High Street is let to JD Sports Fashion plc for a term of10 years from 6th September 2010 on full repairing andinsuring terms, subject to 5 yearly upward only reviews. Thecurrent passing rent is £115,000 per annum exclusive.
192 High Street is let to Poundland Limited for a term of10 years from 13th September 2010 on full repairing andinsuring terms subject to 5 yearly upward only reviews ata passing rent of £168,000 per annum.
The total rent is £283,000 pa.
VATThe property is registered for VAT and therefore VAT willbe payable on the purchase price or dealt with by way ofa TOGC.
DescriptionThe building is of steel frame construction with brickcladding under a flat asphalt roof. It is a substantialproperty that has been recently refurbished having anoriginal ground floor plate of approximately 11,000 sq ftgross. The property has been sub-divided to provide twoexcellent retail units arranged over ground and first floorswith the benefit of a right of way over the rear car park forservicing.
AccommodationThe property affords the following approximate areas:
Covenant InformationBoth tenants have a Dun & Bradstreet rating of 5A1and an Experian Credit Rating of ‘very low risk’. Theyboth enjoyed strong Christmas trading with an increase inlike-for-like sales of 7% and 9% respectively.
Rental ValueThe lettings devalue to £106 (Poundland) and £90.33(JD Sports Fashion plc) per sq ft Zone A. These are themost recent lettings within the High Street and aretherefore in our opinion rack rented.
PriceOur client is seeking offers in the region of £4,300,000(Four Million, Three Hundred Thousand Pounds),reflecting a net initial yield of 6.25% assuming costs ofpurchase at 5.8%. Subject to contract.
Area 190 High Street(JD Sports Fashion plc)
192 High Street(Poundland Limited)
Ground Floor 3,985 sq ft 5,912 sq ft
First Floor Stock 4,096 sq ft 5,789 sq ft
Second Floor – Demised (no access)
ITZA 1,273 units 1,398 units
Statistics JD Sports Fashion plc£’000s
Poundland Limited£’000s
Year End 31.01.2010 28.03.2010
Turnover £769,785 £509,791
Net Worth £89,068 £52,607
Pre-tax Profits £61,393 £23,396
Photography, Print & Production by Plus Art Ltd 0115 972 4000.
Ben Green
020 7317 3719
Rupert Guy
020 7317 3710
David Freeman
020 7659 4830
James Baillie
020 7659 4839
Retail Property Consultants
Langham House
302-308 Regent Street
London W1B 3AT
Contact
2 Gee's Court
St Christophers Place
London W1U 1JA
MISREPRESENTATION: Green & Partners LLB and KLM for themselvesand for the vendors or nominees or lessors of this property whose agentsthey are give notice that (1) the particulars are set out as a general outlineonly for the guidance of the intending purchasers or lessees, and do notconstitute part of an offer or contract; (2) 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, butany intending purchasers or tenants should not rely on them as statements orrepresentations of fact but satisfy themselves by inspection or otherwise asto the correctness of each of them; (3) no person in the employment of Green& Partners LLB or KLM has any authority to make or give any representationor warranty whatever in relation to the property. February 2011.
