PRIME RETAIL INVESTMENT WITH UPPER FLOORS …€¦ · PRIME RETAIL INVESTMENT WITH UPPER FLOORS...

PRIME RETAIL INVESTMENT WITH UPPER FLOORS REFURBISHMENT OPPORTUNITY 2-4 Evesham Walk & 1-9 Unicorn Hill, Redditch, B97 4EH

PRIME RETAIL INVESTMENT WITH UPPER FLOORS REFURBISHMENT OPPORTUNITY // 2-4 Evesham Walk & 1-9 Unicorn Hill, Redditch, B97 4EH www.mk2.co.uk

INVESTMENT SUMMARY

Prominent corner position at the pedestrianised entrance to the Kingfisher Shopping centre in Redditch Town Centre.

Three storey building comprising two ground floor retail units let to Ladbrokes Betting & Gaming Limited and West Bromwich Building Society together with two upper floors of vacant offices.

>£1,100,000NIY 7.10% | CAP VAL £40.00 psf

Freehold.

Passing rent of £82,500 per annum with over 10.5 years to lease expiries and over 5.5 years to tenant’s break clauses.

Upper floor offices are capable of refurbishment or change of use to residential, student accommodation or leisure / restaurant.

We are instructed to seek offers in excess of £1,100,000 (One Million, One Hundred Thousand Pounds) subject to contract, which reflects an overall net initial yield of 7.10% after allowing for purchaser’s costs of 5.58%. Assuming a capital value of £40.00 per square foot on the vacant upper floor offices, the running yield would be 9.00%.

MANCHESTER

LEEDS

BIRMINGHAM

LONDON

LIVERPOOL

WORCESTER

COVENTRY

NOTTINGHAM

HEREFORD

LEICESTER

OXFORD

BRISTOL

REDDITCH

STOKE-ON-TRENT

LOCATIONRedditch is a large town located in north east Worcestershire approximately 15 miles south of Birmingham City Centre, Bromsgrove lies 6 miles to the west and Solihull 14 miles to the north east.

The town is approximately 4 miles south of junctions 2 and 3 of the M42 motorways via the A441 and the A435 which links into the M5 and M6 forming the orbital motorway network around Birmingham. The M40 links to the M42 at Junction 3a, 5 miles to the north east providing access to the south east and London. There are frequent rail services to Birmingham New Street with a fastest journey time of approximately 35 minutes.

The total population within the Redditch immediate population catchment is 216,000 and rises to 960,000 within 12 miles of its centre.


M42

M42

M40

M40

M5

M5

M6

M6

A449

A449

A448

A448

A442

A441

A456

A435

A435

A429

A38

A45A45

A46

A41

A46

A46

STOURBRIDGE

DUDLEY

BIRMINGHAM

KIDDERMINSTER

BROMSGROVE

DROITWICHSPA

WORCESTERALCESTER

STRATFORD-UPON-AVON

WARWICK

SOLIHULL

COVENTRY

REDDITCH

LOCATION DISTANCE (MILES)

Bromsgrove 6

Solihull 14

Birmingham 15

M42 Jct 2 4

M42 Jct 3 4

M40 Jct 1 5


SITUATIONThe property is very prominently situated at the corner of Evesham Street and Unicorn Hill at the entrance to the Kingfisher Shopping Centre. The property overlooks St Stephens Church and forms part of the pedestrianised pitch with nearby occupiers including Halifax, Santander, Nationwide, Coral, TSB, Paddy Power and Café Nero. Worcestershire College is located nearby.

The Kingfisher Shopping Centre is adjacent to the property and to the rear is one the Centre’s service yards. Recently refurbished the scheme provides 900,000 sq ft of retail, restaurant and leisure space together with a 2600 space car park, integrated bus station and close to Redditch Train Station. Leisure operators include Vue Cinema, Pure Gym, Prezzo and Nandos with the major retailers including M&S, Next, New Look, Primark, WH Smiths, Boots, Debenhams and Wilko.

BEOLE

ST.

FISHING LINE RD.

ALBERT STREET

ALCESTER STREET

CHURCH GREEN E.

CHURCH ROAD

OTHER ROAD

GROVE STREET

ARCHER ROAD

RE

D L ION STREET

VICARAGE VIEW

ELM RO

AD

BRIDGE ST.

OA

KLY ROA

D

MILLSBRO ROAD

MA

RSDEN

ROAD

UNION STREET

LODGE ROAD

MOUNT STREET

DALE ROAD

EVES

HA

M

ST.

BRITTEN

STREET

EDW

ARD

STREET

MELEN STREET

ABBEY ROAD

FIS H HILL

SUMMER STREET

PRO

SPEC

T

HIL

L

HONEYCHURCH CLOSE

TRESCOTT

P R OSPEC

T HILL

A441

VINE STREET

CLARKE STREET

CEDAR ROAD

STATION

WAY

MARKET P LACE

SILVER ST.

BATES HILL

PEAKMAN STREET. VICTORIA ST.

PROPHET

S C

LOSE

BOWOOD COURT

HEWELL ROAD

SMA

LLWO

OD

STREET

ORCHARD ST. OSWALD

ST.

LUDLOWROAD

GLOU

CEST

ER CLOSE

CHUR

CH G

REEN

WES

T

ASPA

LL

CLOSE

CLIVE

ROAD

HEW

ELL ROA

D

EASEMORE R

OAD

LL ROA

D

IPSLEY S

TREET

ALVECHURCH HIGHW

AY

UNICORN HILL

REDDITCH RINGWAY

B4160

BROMSGROVE ROAD

B4160

REDDITCH RINGWAY

COVENTRY

HIGHWAY

PLYM

OU

TH R

OA

D

RedditchStation

BusStation

SportsFields

’s

PalaceTheatre

KingfisherShopping Centre

Library

TouristInformationCentre

TrinityHighSchool

HolyoakesFieldFirstSchool

TrinitySixth Form

Centre

© Crown copyright and database rights2015 Ordnance Survey 100024230Produced by 12.5.15 www.fwt.co.uk

Scale 1:5,0000 100 Yards

0 100 Metres

NewCollege

RedditchBorough Council

and Town Hall

MagistratesCourt

PoliceStation

2-4 Evesham Walk& 1-9 Unicorn Hill

2-4 Evesham Walk


DESCRIPTIONThe property comprises a 3 story building of brick construction with glazed curtain walling and part stone cladding elevations. There are two well proportioned ground floor retail units let to Ladbrokes and West Bromwich Building Society. The latter has a large basement which includes a walk in safe and dumb waiter lift.

The upper floor offices are separately accessed from Unicorn Hill with an entrance lobby and staircase leading to male and female WC’s at mezzanine levels and two

floors of office accommodation. In need of refurbishment the offices have been split to create cellular space with a solid floor, central heating and florescent tube lighting. The clear floor to ceiling height is 2.95 metres and there is a fire escape to the Kingfisher service yard. Subject to satisfactory planning consent the offices have the potential for change of use which may include residential, student accommodation, restaurant or leisure use.

2 Evesham Walk Exterior 2-4 Evesham Walk

2 Evesham Walk Interior

4 Evesham Walk Exterior



ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate net internal floor areas.

The approximate gross internal area of the upper floor offices is 1st Floor 3,341 sq ft, 2nd floor 3,292 sq ft, totalling 6,633 sq ft. We have had reference to the RICS property measurement 1st edition (IPMS).

UNIT DESCRIPTION SQ M SQ FT

2 Evesham Walk GF Retail 150.8 1623

4 Evesham Walk GF Retail 150.5 1620

Basement 62.1 668

1-9 Unicorn Hill 1st Offices 268.6 2891

2nd Offices 265.0 2852

TOTALS 897.0 9654

TENUREFreehold.

1-9 Unicorn Hill Interior 1-9 Unicorn Hill Interior

1-9 Unicorn Hill Exterior




TENANCY DETAILS

2 Evesham Walk is let to Ladbrokes Betting and Gaming Limited on an effective full repairing and insuring lease from 11th May 2012 with a lease expiry on 10th May 2027 at a rent of £42,500 per annum with an upwards only rent review due on 11th May 2017. There is a tenant’s only break clause on 10th May 2022.

Ladbrokes is a world leader in the betting and gaming industry with over 2100 shops in the UK employing over 14,500 people with over 800,000 active online customers.

4 Evesham Walk is let to West Bromwich Building Society on an effective full repairing and insuring lease from 21st June 2012 with a lease expiry on 20th June 2027 at a rent of £40,000 per annum with an upwards only rent review due on 21st June 2017. There is a tenants break clause on 20th June 2022.

TENANT COVENANT

DEC 2014 DEC 2013 DEC 2012

Turnover £824,322,403 £818,577,960 £770,850,596

Profit £57,140,725 £87,693,325 £172,106,339

Net Worth £1,869,535,889 £1,812,395,164 £1,824,525,632

The total passing rent is £82,500 per annum and there are over 10.5 years to tenant’s lease expiries and over 5.5 years to tenant’s break clauses. The upper floor offices are currently vacant.

Copies of the leases are available upon request.

Summarised below are the financial accounts for Ladbrokes Betting and Gaming Limited:

The West Bromwich Building Society is the 7th largest in the UK with some 446,000 members. The society is a major provider of financial

MAR 2016 MAR 2015 MAR 2014

Total Income £83,900,000 £59,200,000 £44,300,000

Profit £8,100,000 £14,300,000 -£11,000,000

Total Equity £496,300,000 £491,600,000 £486,800,000

products and services, notably savings and residential mortgages. Their most recent accounts are set out below;

4 Evesham Walk2 Evesham Walk

ASSET MANAGEMENT

OPPORTUNITIES

Opportunity to increase the rents at the forthcoming rent reviews on the ground floor retail units in 2017.

Refurbish the upper floor offices and re-let.

Potential to convert the upper floor offices to alternative uses (subject to planning) for residential, student accommodation or leisure / restaurant use.

We are instructed to seek offers in excess of £1,100,000 (One Million, One Hundred Thousand Pounds) subject to contract, which reflects an overall net initial yield of 7.10% after allowing for purchasers costs of 5.58%. Assuming a capital value of £40.00 per square foot is attributed to the vacant upper floor offices the running yield would be 9.00%.

PROPOSAL

The property has an EPC rating of E110. A copy of the EPC is available upon request.EPC

The property is not elected for VAT and therefore VAT will not be payable on the purchase.

VAT

MK2 Real Estate LtdMaddox House, 117 Edmund Street, Birmingham B3 2HJTel: 0121 214 1970 Email: [email protected]

Mark Rooke0121 214197207985 877578 [email protected]

Mark Johnson0121 214197707748 [email protected]

For further information or to arrange an inspection please contact;

IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not con-stitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

Designed and produced by Diablo: www.diablodesign.co.uk OCTOBER 2016

PRIME RETAIL INVESTMENT WITH UPPER FLOORS …€¦ · PRIME RETAIL INVESTMENT WITH UPPER FLOORS...

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