57 High Street CHELMSFORD - Jackson Criss€¦ · 57 High Street CHELMSFORD ... TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL ... report for the property can

57 High StreetCHELMSFORD

PRIME RETAIL BANK INVESTMENT FOR SALE

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

INVESTMENT SUMMARY

ChelmsfordisoneofthelargestandmostaffluentretailcentresinEssex,withathrivingeconomywithover11,000businessesand50,000jobs.

100%primefreeholdretailinvestmentsituatedbetweentheCity’stwoshoppingcentres.

Newlyagreedreversionaryleaseatamarketrent.

LettothestrongnationalcovenantofNationwideBuildingSocietywithjustover9yearsunexpired.

IdeallysituatedtobenefitfromtheBondStreetDevelopment,whichwillbeanchoredbyJohnLewis,whichispredictedtoincreasecomparisonspendby27%.

Votedoneofthetop10most'CreditCrunchResistantTowns'(CACI2010).

51%more'WealthyExecutives'(CACI'shighestaffluencegroup)inChelmsfordthanthenationalaverage.

Ourclientsareseekingoffersinexcessof£2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds),subjecttocontractandexclusiveofVAT,whichreflectsanetinitialyieldof5.25%,afterallowingforpurchaser’scostsof6.44%.

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 2

LOCATION

ChelmsfordislocatedintheheartofEssex,30milesnortheastofcentralLondon,21milessouthofColchesterand16mileseastofHarlow.

ThecityhasexcellentcommunicationlinkswiththeA12,providingdualcarriageaccesstotheM25,12milestothesouthwest.OthernearbyroadsincludetheA131,runningnorthtoBraintreeandsouthtoBasildon,andtheA414whichrunswesttoHarlow.

ChelmsfordRailwayStationhasafastandfrequentcommuterservicetoLondonLiverpoolStreetStation,withafastestjourneytimeof34minutes.ThestationisthebusieststationintheeastofEngland,withover7,000,000passengersayear.

StanstedAirportisapproximately13.5milestothenorthwestandisabaseforanumberofmajorEuropeanlowcostcarriers.In2015itwasthefourthbusiestairportintheUK.

COLCHESTER

LONDON

CHELMSFORD

HARLOW

COLCHESTER

BRAINTREE

StanstedAirport

IPSWICH

SOUTHEND-ON-SEA

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 3

M25

M25

M11

M11

M25

M1

A1(M)

A1(M)

A120

A120

A133

A131

A414

A127

A12

A12

A13

A12

A12A10

DEMOGRAPHIC PROFILEChelmsfordistheonlycityinEssexandhasalargeanddominantprimarycatchmentareaof404,000,whichisabovethesubregionalcentreaverage.ThecatchmentpopulationisoneofthemostaffluentofthePROMIScatchments,rankingit29ofthePROMIScentres.62%ofthepopulationiswithinthehighestsocialgradeofA,BandC1grouping.MajoremployersinthetownincludeM&GInvestments,BAESystems,TheRoyalSunAlllianceandAmlin.

RETAILING IN CHELMSFORDChelmsfordhasanestimated1.16millionsqftofretailaccommodation,makingitcomparablewiththesubregionalcentreaverage.TheprimeretailingwithinChelmsfordisconcentratedonthepedestrianisedHighStreet,betweenthecity’stwocoveredshoppingcentres,TheMeadowsandHighChelmer.RetailersontheHighStreetincludeMarks&Spencer,Debenhams,H&M,GAPandWaterstones.

TheBensonElliottownedMeadowsShoppingCentreisanchoredbyWilkinsons,OdeonCinemaandSportsworld,andoffersmoremassmarketretailing.

TheLaSalleownedHighChelmerShoppingCentreisanchoredbyPrimark,withtenantsincludingBoots,NewLookandTopshop.

ThenewproposedBondStreetdevelopmentisanopenair300,000sqftretailandleisuredevelopment

anchoredbya120,000sqftJohnLewisdepartmentstoreanda5-screenCineworld.Thedevelopers,Aquila,startedconstructionontheschemeinMarch2015,withcompletiondueinautumn2016.

ThenewdevelopmentwilladdsignificantlytoChelmsford’sretailandleisureoffer,andretailerswhohavealreadycommittedincludeMonsoon,FatFace,HotelChocolat,SchuhandSnow+Rock,withrestaurantretailersincludingByron,ASK,LasIguanasandPrezzo.TheBondStreetdevelopmentwillseecomparisonspendinChelmsfordincreaseby27%to£660.9m,placingitalongsideTunbridgeWells,YorkandMaidstone (CACI 2014).

Thesubjectpropertyisideallysituatedtobenefitfromthenewdevelopment.

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 4

TO BE SCHUH

BLU

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Y

N

Forillustrativepurposesonly

BOND STREETDEVELOPMENT

Anchored by

Other tenants include:

THE WHITE COMPANYL O N D O N

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 5

SITUATIONThesubjectpropertyoccupiesaprimetradinglocationonthepedestrianisedHighStreet,adjacenttoMossandGoldsmithsandoppositethemainentrancetotheMeadowsShoppingCentre.Thegoadplanextracthighlightstheunitinred.

DESCRIPTIONThepropertycomprisesawellconfiguredgroundfloorretailunitwithancillary,officeandstoragespaceonthefirstandsecondfloors.

Thepropertyisservicedtotherear.

ACCOMMODATION JacksonCrisshaveinspectedthepropertyandcanconfirmthefollowingapproximatedimensionsandareas:-

GrossFrontage 24ft4in 7.4mNetFrontage 22ft7in 6.9mShopWidth 23ft 7.0mShopDepth 98ft 29.9mGroundFloorSales 1,951sqft 181.2sqm

GroundFloorITZA 847units

FirstFloorOffices/Staff 1,214sqft 112.8sqmSecondFloorStockOffices/Ancillary

260sqft 24.2sqm

Total Area 3,425 sq ft 318.2 sq m

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 6

TENURE Thepropertyisheldfreehold.

TENANCY ThepropertyislettoNationwideBuildingSocietyonaFullRepairingandInsuringlease,foratermof10yearsfrom24thJune2015,atarentof£154,000perannumexclusive.Thereisthereforejustover9yearsunexpiredonthelease.

RENTAL VALUETherentpassingof£154,000paxagreedwithNationwideattheJune2015rentreviewreflectsaZoneArentof£170persqft,applying£7.50persqfttothefirstfloorand£3.50persqfttothesecondfloor.Themostsalientrentalevidencecanbesetoutasfollows:-

1. 38 High Street (Metrobank) OpenmarketlettingApril2016.Thecompanyhavetakena25yearleaseatarentof£325,000pax,reflectingaheadlineZoneAof£200persqftandnetZoneAof£198persqft.

2. 36-37 High Street (McDonalds) LeaserenewalApril2016,ona10yearlease,atarentof£310,000pa,reflectingaheadlineZoneArateof£182.40persqftandanetZoneAof£173.00persqft.

3. 69 High Street (iCandy) OpenmarketlettingSeptember2015,onanew10yearlease,ataheadlineZoneAof£196.70persqftandanetZoneAof£178.88persqft.

4. 26 High Street (RBS) LeaserenewaleffectiveAugust2015,agreedatarentof£210,000pax,reflectinganetZoneAof£189.52persqft.

5. 40/41 High Street (Barclays) RentreviewMarch2015,£378,000pa,reflectinganetZoneAof£178.00persqft.

Itisthereforeouropinionthattherentpassingreflectsthecurrentmarketrentalvalueasoftoday’sdate,devaluingtoaZoneArentof£170persqftandoffersexcellentprospectsforrentalgrowth,giventhemostrecentevidenceandthepast£200ZArentaltone.

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 7

COVENANTNationwideBuildingSocietyisaBritishmutualfinancialinstitutionandthelargestbuildingsocietyintheworld.Theycurrentlyhavearound700brancheswithintheUK.

Asummaryofthefinancialresultscanbesetoutasfollows:-

04/04/2015 £m

04/04/2014 £m

04/04/2013 £m

Turnover 447 493 571Pre-taxprofit 1,044 677 210NetWorth 8,701 7,950 5,686

TOWN PLANNING WehavemadeverbalenquiriestothelocalplanningauthoritywhohaveconfirmedthatthepropertyisGradeIIlistedandissituatedwithintheconservationarea.

VATThepropertyhasbeenelectedforVATpurposes,anditisanticipatedthattheinvestmentsalewillbetreatedasaTransferOfaGoingConcern(TOGC).

EPCThepropertyhasanEPCratingofD88.AnEPCreportforthepropertycanbeprovideduponrequest.

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 8

Messrs.JacksonCrissforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyaretogivenoticethat:(i)theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersorlessees,anddonotconstitute,norconstitutepartof,anofferorcontract;(ii)alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrectbutanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;(iii)nopersonintheemploymentofMessrs.JacksonCrisshasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtothisproperty.JC0087.April2016.D

ESIG

NED

BY

TCC

PROPOSALWeareinstructedtoseekoffersinexcessof£2,755,000 (Two Million Seven Hundred and Fifty Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichreflectsanetinitialyieldof 5.25%,afterallowingforpurchaser’scostsof6.44%.

Themostsalientinvestmentevidencecanbesetoutasfollows:-

68/71 High Street, Chelmsford 100%primeretailblockof4unitslettoCarphoneWarehouse,Claire’sAccessories,iCandyandClintons,withinaWAULTof7.56years(tobreak5.16years).

ThepropertywassoldinJanuary2016atapriceof£8.5m,whichreflectedanetinitialyieldofcirca4.95%.

FURTHER INFORMATION Forfurtherinformation,pleasecontact:

Philip Hay02076377100

[email protected]

Brook Wannop 02076377100

[email protected]

INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN CHELMSFORD GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY RENTAL VALUE COVENANT TOWN PLANNING VAT EPC PROPOSAL FURTHER INFORMATION

57 HIGH STREET, CHELMSFORD PRIME RETAIL BANK INVESTMENT FOR SALE 9