188-191 western road &1-8 regent hill brighton · 2020-02-18 · 188-191 western road and 1-8...

&188-191 WESTERN ROAD 1-8 REGENT HILL BRIGHTON

PRIME RETAIL HOLDING FOR SALE WITH REDEVELOPMENT POTENTIAL

188-191 Western Road and 1-8 Regent Hill | BRIGHTON

z Brighton is one of the largest and most affluent commercial centres in the south east, located 53 miles south of London, with a catchment in excess of 500,000.

z The city benefits from a strong tourism economy with approximately 11 million visitors per annum, which boosts expenditure by nearly £900 million a year.

z Brighton ranks 8 on the basis of its PMA Non-Food Retail Score and 7 on the PMA Fashion Score (PROMIS BRIGHTON).

z Brighton was voted “Happiest City in the UK” in June 2017.

z Freehold.

z Site area of c.0.29 acres.

z Situated in a prime trading location on Western Road opposite Churchill Square Shopping Centre.

z Prime corner store comprising c.28,500 sq ft of accommodation with significant development potential.

z Single let to New Look Retailers Ltd. expiring 23rd July 2025 at a current passing rent of £617,500 pa.

z We are instructed to seek offers in excess of £8,575,000 (Eight Million Five Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 6.75%, net of normal purchaser’s costs.

INVESTMENT SUMMARY

DEMOGRAPHICSBrighton has a catchment population in excess of 507,000 and the

city dominates its catchment area. The estimated shopping population

of Brighton is 354,000, ranking the city 16 of the PROMIS centres.

The city benefits from a strong tourists economy with approximately

11 million visitors per year and boosting expenditure by nearly

£900 million per annum. An estimated 21,000 jobs are tourism

related (www.visitbrighton.com).

Brighton attracts c.36,000 students from throughout the UK and

worldwide, who study at the University of Brighton and University of

Sussex. Many students opt to remain in the city after graduating, attracted

by the strong jobs market.

The age profile of Brighton’s primary catchment population includes a high

proportion of adults aged 25-44 and Brighton’s population is set to grow

by 4.9% by 2021. In 2011 the service sector accounted for 82% of total

employment in Brighton. Within this sector, financial and business services

account for 27% of total employment.

The ICT and digital sector has grown by more than 40% over 5 years.

Worth over half a billion pounds, Brighton is recognised as having the

highest level of specialism in immersive technology in the UK.

Major employers include Lloyds, Legal & General and American Express,

which has its European headquarters in the city. Other major employers

include Domestic and General, Bupa, University of Brighton, University of

Sussex, EDF Energy and Hospitals NHS Trust.


354,000ESTIMATED SHOPPING

POPULATION OF BRIGHTON

PRIME CATCHMENT POPULATION IN EXCESS OF

507,000 £886mTOURIST EXPENDITURE

11MILLION

VISITORS THROUGH TOURISM

BRIGHTON HOSTS OVER

60A YEAR INCLUDING THE LARGEST ANNUAL ARTS FESTIVAL IN ENGLAND

RANKS 16 of the PROMIS CENTRES

ESTIMATED SHOPPING POPULATION

FESTIVALS

LOCATIONBrighton is one of the largest commercial centres in the south east of England, located 53 miles

(85km) south of London, 25 miles (40km) west of Eastbourne and 62 miles (100km) east

of Southampton.

The city benefits from good road

communications with the A23 dual

carriageway linking north and joining

the M23 motorway and in turn, the M25

motorway at Junction 7. The A27 dual

carriageway acts as a ring road around

the city and links Brighton with Eastbourne

in the east and Southampton to the west.

Rail links are excellent, with regular train

services to London Bridge and London

Victoria, with a fastest journey time

of approximately 50 minutes. London

Gatwick Airport is located only 22 miles (35

kilometres) north of Brighton, via the A23

dual carriageway and the M23 motorway.

Brighton is popular with London commuters

boasting one of the busiest train stations in

the South East outside Greater London.


M11A1MM1

M2

M40

M25

M20

M23M3

M4

M5

A27

A23

A27

MAIDSTONE

HASTINGSPORTSMOUTH

SOUTHAMPTON

WINCHESTER

GUILDFORD

GATWICK AIRPORT

SOUTHAMPTON AIRPORT

READING LONDON

BRIGHTON


For Identification purposes only

CHURCHILL SQUARE SHOPPING CENTRE

Western Road

Upper North Street

Brighton’s retail core is predominantly linear in nature, running along

Western Road and North Street, which along with Churchill Square

Shopping Centre forms the primary focus for national multiple retailers

in the city. The prime pitch is supported by additional concentrations

along East Street, Duke Street, The Lanes and the North Lanes areas,

which accommodate a variety of aspirational retailers, independents

and boutiques.

The retail offer in Brighton city centre is excellent with the city ranking

8 on the basis of its PMA Non-Food Retail Score and 7 on the PMA

Fashion Score. As an important regional city with a buoyant office

population, occupational demand in the city has remained robust in

recent years. Brighton remains one of the first locations where retailers

seek to establish representation, outside of London.

RETAILING IN BRIGHTON

SITUATIONThe subject property is situated in a prime trading location on the

north side of Western Road, at its junction with Regent Hill, and

virtually opposite the Churchill Square Shopping Centre. Nearby

retailers include Gap, Marks & Spencer, H&M and Primark, in

addition to a variety of other national High Street retailers.

A goad plan extract highlighting the unit in blue is provided.


NORTH

For Identification purposes only


DESCRIPTIONThe property comprises a retail store arranged over basement, ground and

three upper floors. The tenant trades from basement, ground and first floor

which are all connected by escalators, whilst the second floor and third floor

are used for storage and staff accommodation respectively. The store also

benefits from a dedicated service yard area at the rear.

TENUREFreehold.


TENANCYThe property is let in its entirety to New Look

Retailers Limited on a reversionary 15 year

full repairing and insuring lease from 23rd July

2010, at a current rent passing of £617,500

pa exclusive, subject to an upwards only rent

review on the 23rd July 2020.

New Look was subject to a CVA, which

was approved on the 21st March 2018.

The subject store was placed as Category

A. This has not affected the rent or insurance

payable under the lease and the rent is paid

on a monthly basis.


COVENANT New Look is a British global fashion retailer with a chain of high street

shops. It was founded in 1969 and has been owned since May 2015

by the investment company Brait SA, controlled by Christo Wiese.

The chain sells womenswear, menswear and clothing for teens.

Having entered into a CVA in March 2018, New Look has showed a

positive turn-around. In its third quarter results New Look reported

a statutory loss before tax in the year to date to £1.2m, versus a loss

of £63.2m in the comparable previous period, reflecting a robust

performance. The adjusted EBITDA in the last quarter was flat at £36m.

The balance sheet restructuring following the CVA cut debt from £1.35bn

to £350m and will significantly lower the group’s financing costs.

ACCOMMODATIONWe have been informed by the vendor that the property provides the following

approximate floor areas on a Gross Internal Basis (GIA).

Floor Imperial Metric

Ground Floor Sales 11,676 sq ft 1,084.72 sq m

Basement Sales 4,040 sq ft 375.32 sq m

First Floor Sales 6,044 sq ft 561.50 sq m

Second Floor Store 5,811 sq ft 539.85 sq m

Third Floor (Staff Accom) 970 sq ft 90.11 sq m

Total 28,541 sq ft 2,651.50 sq m

20

Option 1a - Office - New Build

23

Option 2b - Hotel - Retained

DEVELOPMENT POTENTIAL

There is the opportunity to reposition the asset to create a

modern flagship store arranged over ground and basement

with either office, hotel or residential uses on the upper floors,

subject to planning.

Max Architects have prepared a feasibility study for the

subject property along with drawings of a number of

indicative schemes, both on a re-development basis and

a comprehensive refurbishment.

With residential values in excess of £600 CV psf, prime office

rents in excess of £35 psf and vast demand from a range

of hoteliers, there is an opportunity to further enhance the

property’s value. Further information is available on request.


Option 1a - Office - New Build Option 1a - Office - New Build

Option 2b - Hotel - Retained Option 2b - Hotel - Retained

VATThe property is elected for VAT and it is proposed that the sale will be treated as a

Transfer of a Going Concern (TOGC).

EPCCopies of the EPC rating and report are available on request.

PROPOSAL Our clients are seeking offers in excess of £8,575,000 (Eight Million Five Hundred and

Seventy Five Thousand Pounds), subject to contract and exclusive of VAT, which reflects

a net initial yield of 6.75% after allowing for standard purchasers costs of 6.68%. The

asking price reflects a capital value of £300 per sq ft applying the GIA floor area.

Recent comparable investment sale evidence is set out below:

Date Property Price (NIY) CV psf

Jan-20 HSBC, 153 North Street £5.71m (5.01%) £616

Jul-19 Brinell Building, 30 Station Street £39m (4.75%) £598

Mar-19 45 East Street & 9-12 Castle Sq. £6.8m (5.72%) £542

Under Offer 160-161 North Street £7.50m (6.50%) Quoting £440


Messrs. Jackson Criss and Knight Frank 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 permission 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 and Knight Frank have any authority to make or give any representation or warranty whatever in relation to this property. 101916. Designed by TCC 01/20.

For further information, please contact:

PHILIP HAY020 7637 [email protected]

MIKE JAMESON020 7637 [email protected]

JOE KANE020 7861 5447

[email protected]

HUW HOLMAN020 3909 6806

[email protected]


https://www.tccommunications.co.uk/#1

https://www.jacksoncriss.co.uk/

188-191 western road &1-8 regent hill brighton · 2020-02-18 · 188-191 western road and 1-8...

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