BROADWAY CORNER - Leading UK Property Consultancy ... · Bromley is the commercial and retailing centre for the London Borough of Bromley with a total primary catchment population

PRIME HIGH STREET RETAIL INVESTMENT & DEVELOPMENT OPPORTUNITY

BROADWAY CORNER77-81 HIGH STREET & 1-3 ELMFIELD ROAD BROMLEY, KENT, BR1 1JY

BROADWAY CORNER



• Exceptionally prominent town centre retail parade investment totalling approximately 1,577.5 sq m (16,980 sq ft)

• Primary catchment population of 711,000 and ranked 20th of the UK PROMIS Centres

• Prime retail position situated opposite the main entrance of The Glades Shopping Centre the pre-eminent shopping destination in Bromley

• The property fronts on to the pedestrianised section of the High Street

• Freehold

• Current income of £382,500 per annum

• Let to the Nationwide Building Society, Boots and Warren Evans with short-term asset management opportunity

Potential Development Opportunity

• Allupperpartsareintactwithsignificantredevelopment potential to alternative uses, including residential; subject to planning

• Offersinexcessof£5,125,000 (Five Million, One Hundred and Twenty Five Thousand Pounds) subject to contract and VAT. A purchase at this level would reflectaNet Initial Yield of 7.00%; allowing for standard purchasers costs.

INVESTMENT CONSIDERATIONS

Site outline for identification purposes only.

Bromley South Station 4 mins walk

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LocationBromley is the administrative and commercial centre for the London Borough of Bromley situated 12.6 miles (20.2 km) south east of Central London, 7.2 miles (11.6 km) north east of Croydon and 11.6 miles (18.7 km) south west of Dartford.

Bromley is a popular commuter town with excellent rail links to Central London. Bromley South Rail Station provides express services to London Victoria with a fastest journey time of 16 min with immediate access to Victoria, Circle and District Underground Lines; additional destinations include St Albans, Sevenoaks and Ashford International. Bromley North Rail Station provides indirect links to London Bridge, London Cannon Street and London Charing Cross via Grove Park.

Biggin Hill International Airport is situated 5.6 miles (9.0 km) to the south providing a range of private and business aviation services. The airport has benefitted from significant investment of late, with a new Bombardier Maintenance facility and new 60,000 sq ft commercial hangar currently under construction to be completed in Q4 2017.

London City Airport is situated 12.9 miles (20.7 km) to the north, Gatwick International Airport is 24.7 miles (39.8 km) to the south west and Heathrow International Airport is 41.0 miles (65.9 km) to the north west.

A282

A214

A205

A232

A2

A2

A3

A20

A25

A21

A22

A13

A23

LONDON CITYAIRPORT

LONDONBIGGIN HILL

AIRPORT

LONDONVICTORIA

LONDONBRIDGE

BRIXTON

BECKENHAMJUNCTION

PENGE EAST

WEST DULWICH

GROVE PARK

Beckenham JunctionPenge EastWest DulwichGrove Park. All are on the rail lines already drawn up; please use the same font as London Victoria and Brixton for the station names.

LONDON

DARTFORD

ORPINGTONCROYDON

GRAVESEND

GRAYS

DULWICHVILLAGE

MITCHAM

COULSDON

CATERHAM

SEVENOAKS

SIDCUP

HARTLEY

BROMLEY

M25

M26

M20

M25

M25

M25

M20

ROAD

A21 <1mile

A205 (S. circular) 3 miles

A20 3.9 miles

M25 9.6 miles

RAIL

London Victoria 16 mins

London Blackfriars 35 mins

Sevenoaks 45 mins

Ashford International 74 mins

AIRPORTS

Biggin Hill 5.6 miles

London City 12.9 miles

Gatwick 24.7 miles

Heathrow 41.0 miles

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BromleyBromley is the commercial and retailing centre for the London Borough of Bromley with a total primary catchment population of 711,000 and ranked 20th of UK PROMIS Centres.

Town centre retail floor space in Bromley is approximately 1.24 million sq ft, of which approximately 37% is situated within The Glades Shopping Centre. The retail core of the town centre is largely focused around the pedestrianised section of the High Street and to the prime pitch within The Glades Shopping Centre.

The Glades Shopping Centre, constructed in 1991, attracts over 20 million visitors a year boasting a wealth of high end national retailers including Apple, Debenhams, Marks & Spencer, H&M and French Connection. The centre was recently acquired by Alaska Permanent Fund Corporation, subject to a minority share, held by Bromley Council. The prime pitch within the centre extends from the central atrium to the south east entrance situated directly opposite from Broadway Corner.

Bromley’s second managed centre is the smaller and partially covered Mall scheme developed by Henry Boot Developments. The scheme is located directly to the south of the subject property, with additional access from Elmfield Road. The Mall has been substantially re-developed and re-configured of late, to provide a number of large stores, with tenants including Poundland, Sports Direct, Iceland and Argos. The scheme further benefits from a 255 space NCP car park, accessed via Elmfield Road.

In December 2015, Travelodge announced plans to build a 58 room hotel adjacent to The Mall with construction expected to complete in Q3 2017.

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50 metres

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Bromley

Copyright and confidentiality Experian, 2015. © Crown copyright and databaserights 2015. Ordnance Survey 100017316

Experian Goad Plan Created: 05/06/2017Created By: Allsop

© Crown Copyright, ES 100004106. For identification purposes only.

SituationThe property is situated on the south east corner of the junction of Bromley High Street and Elmfield Road and is immediately opposite the main entrance to The Glades Shopping Centre, the pre-eminent town centre retail destination in Bromley.

In addition, the main entrance to The Mall (Shopping Centre) is situated directly to the south providing additional footfall to the property.

All units are highly visible and benefit from footfall generated by its close proximity to The Glades Shopping Centre and position between the prime pitch of Bromley High Street and Bromley South Rail Station.

Local transport links are excellent, with numerous local bus services available adjacent to the property. Bromley South Rail Station is situated a 4 minute walk to the south, whilst Bromley North Rail Station is situated a 9 minute walk to the north of the property.

Bromley North 9 mins walk

Bromley South 4 mins walk

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BROADWAY CORNER

Floor Plans

Unit BUnit A

Unit C

GFU

nit A

Unit CUnit B

F1

Unit C

Unit A

F2



Accommodation and Tenancies

DescriptionThe property comprises an attractive and prominent ground floor retail scheme with extensive accommodation above. The accommodation on the first and second floors provide sales accommodation, offices and ancillary areas.

77 High Street is arranged on ground and second floors to provide a ground floor banking hall and office accommodation above. The bank benefits from glazed frontage to the High Street with ATM facilities. Stair and lift (8 persons) access is available to the rear. The second floor is currently the Nationwide Southern Counties Training and Assessment Centre.

The retail and office accommodation has recently benefited from a comprehensive refurbishment to a high standard.

79-81 High Street is arranged on ground and first floors to provide ground floor retail and ancillary accommodation above. The unit benefits from glazed return frontage from the High Street to Elmfield Road with stair access and a 500 kg service lift to ancillary storage and staff accommodation above.

1-3 Elmfield Road is arranged on ground and first floors to provide retail sales accommodation on the ground and first floors with ancillary accommodation on the second floor. The unit benefits from a customer lift (8 persons) to the rear.

TenureFreehold

Potential Residential OpportunityThe Bromley residential market is particularly popular due to its close proximity to London, coupled with excellent transport links and extensive retail and recreational facilities; residential values are currently achieving between £550 - £625 psf.

The property is situated immediately adjacent to the newly redeveloped Elmfield House, which is a conversion of a former office building under Permitted Development Rights to provide 18 new residential apartments. They are achieving £575- £625 psf for studio and 1 bedroom accommodation; 50% of the units are were placed under offer on the opening day of marketing.

In light of the above, we consider the upper floors would lend themselves to a conversion to residential; subject to gaining the necessary consents and vacant possession.

The centre of the building at 2nd floor level provides a void, which could also potentially be infilled, to provide additional floor space as could the possibility of providing an additional third floor, given the adjoining building heights; both of which would be subject to gaining the necessary consents.

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Unit Tenant Description GIA Sq ft (sq m)

NIA Sq ft (sq m)

ITZA sq ft (sq m)

Lease Start

Lease Expiry

Rent Review

Passing Rent (£ pa) (Rent PSF/ITZA)

Unit A, 77 High Street

Nationwide Building Society

GF (Retail) 2,110 (196.0) 1,771 (164.5) 847 (78.7) 15/09/1997 28/09/2022 24/06/2017 (outstanding)

£150,000 (£125 ITZA)

(F2: £12.50 psf)GF (Anc.) 32 (3.0)

F2 (Anc.) 3,815 (354.4) 3,513 (326.4)

Sub-Total 5,925 (550.4) 5,316 (493.9)

Unit B, 79-81 High Street

Boots UK Limited GF (Retail) 2,573 (239.0) 2,153 (200.0) 1,083 (100.6) 25/03/2014 24/03/2019 £107,500 (£87 ITZA)

(F1: £5.00 psf)GF (Anc.) 29 (2.7)

F1 (Anc.) 1,959 (182.0) 1,659 (154.1)

Sub-Total 4,532 (421.0) 3,841 (356.8)

Unit C, 3 Elmfield Road

Designer Ideas Limited t/a Warren Evans

GF (Retail) 2,256 (209.6) 2,140 (198.8) 1,376 (127.9) 01/07/2009 30/06/2019 01/07/2014 (outstanding)

£125,000(£65 ITZA)

(F1: £7.00 psf)(F2: £3.50 psf)

F1 (Retail) 5,260 (488.7) 4,555 (423.2)

F2 (Anc.) 1,576 (146.4) 1,128 (104.8)

Sub-Total 9,092 (844.7) 7,823 (726.8)

Total 19,549 (1,816.1) 16,980 (1,577.5) £382,500



NATIONWIDE BUILDING SOCIETY

Nationwide Building Society is a British mutual financial institution and the largest building society in the world. The branch employs around 18,000 people across 700 UK branches.

The company provides a range of financial services including mortgage loans, credit cards, loans, savings accounts, bank accounts and insurance products. Nationwide is the second largest provider of household savings and mortgages in the UK and has 7.1% market share of current accounts.

The second floor office accommodation is currently utilised as the Nationwide Southern Counties Training and Assessment Centre benefitting from a recent comprehensive refurbishment to a high standard.

Nationwide Building Society recently reported the following financial information:

4th April 2014 4th April 2015 4th April 2016

Turnover (‘000s) £489,000 £447,000 £428,000

Pre-Tax Profit (‘000s) £677,000 £1,044,000 £1,279,000

Total Net Worth (‘000s) £7,950,000 £8,701,000 £9,739,000

DESIGNER IDEAS LIMITED (T/A WARREN EVANS)

Warren Evans is a bespoke made to order furniture manufacturer and retailer in the UK, with 14 stores in the South East of England. The company is under-going a programme of expansion following the issuance of a retail bond in 2013, with investment in new retail premises and upgraded store formats.

Designer Ideas Limited recently reported the following financial information:

31st December 2014 31st December 2015 31st December 2016

Turnover £20,583,484 £23,662,681 £27,344,250

Pre-Tax Profit -£1,835,505 £738,582 £837,492

Total Net Worth -£2,372,623 -£1,593,030 -£769,558

BOOTS UK LIMITED

Boots is the UKs leading pharmacist with over 2,500 stores across the UK and Ireland. The company sells a range of medicines, health and beauty products and have their own ranges in each of these sectors. Optometry and audiology services are offered as well as a range of food and drink.

In December 2014, Walgreens and Alliance Boots merged, bringing together the two leading brands in the sector.

Boots UK Limited recently reported the following financial information:

31st March 2013 31st March 2014 31st August 2015

Turnover (‘000s) £6,204,000 £6,340,000 £9,198,000

Pre-Tax Profit (‘000s) £452,000 £507,000 £542,000

Total Net Worth (‘000s) £430,000 £456,000 £367,000

Covenant Information

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Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 09.17


PROPOSALWe are instructed to seek offers in excess of £5,125,000 (Five Million, One Hundred and Twenty Five Thousand Pounds) subject to contract and VAT. A purchase at this level would reflect a Net Initial Yield of 7.00%; allowing for standard purchasers costs.

The sale is an excellent opportunity to buy three well-secured prominent retail units with significantassetmanagementupside,majordevelopment potential and future rental growth.

VAT

The properties are elected for VAT and it is anticipated the transaction will be treated as a transfer of a going concern (TOGC).

MEASURED SURVEYS

The Vendor has recently carried out measured surveys of each unit. These measured surveys and associated warranties will be transferred to the purchaser upon completion of the sale.

EPC’s

Further information is available in the dataroom.

DATA ROOM

For Dataroom access please use the following link

http://datarooms.allsop.co.uk/register/highbrom

For further information or to make arrangements for viewing please contact:

Jeremy Hodgson020 7543 [email protected]

Tom Dales020 7543 [email protected]

www.allsop.co.uk

Mark Dansky020 7543 [email protected]

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BROADWAY CORNER - Leading UK Property Consultancy ... · Bromley is the commercial and retailing centre for the London Borough of Bromley with a total primary catchment population

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