6-12 LOWFIELD STREET & 11 MARKET STREET, ?· NIA Sq.M Rent PA Lease Start Term (Yrs) Lease Expiry Break…

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  • 6-12 LOWFIELD STREET & 11 MARKET STREET, DARTFORD, KENT, DA1 1HAGreater London Multi Let Town Centre Investment With Potential To Add Value Subject To Planning Permission

    1

    INVESTMENT SUMMARY Dartford is a London commuter town, located approximately 16 miles south east of Central London and within the M25.

    The property is situated on a prominent corner location within Dartfords pedestrianised retailing pitch.

    The property provides a large Argos store arranged over basement, ground and two upper floors, together with a ground floor corner lock-up shop and a self-contained first floor office suite with access on Market Street.

    Freehold.

    Total rent passing of 139,000 per annum.

    Over 80% of the rental income is secured against the strong covenant of Argos Ltd until 28 September 2021.

    Opportunity to add significant value through change of use and extension of the upper floors, subject to planning.

    Seeking offers in excess of 1,745,000 subject to contract and exclusive of VAT for our clients freehold interest. A purchase at this level reflects a Net Initial Yield of 7.50%, assuming acquisition costs of 6.20%.

    Capital value of approximately 83.00 per sq.ft.

  • 6-12 LOWFIELD STREET & 11 MARKET STREET, DARTFORD, KENT, DA1 1HAGreater London Multi Let Town Centre Investment With Potential To Add Value Subject To Planning Permission

    2

    LOCATION The market town of Dartford is located approximately 16 miles to the south east of Central London and 18 miles south of Romford via the A282. The town benefits from excellent road communications sitting within the M25, which in turn connects to the national motorway network.

    There are frequent rail services from Dartford Railway Station to Central London (Charing Cross, Canon Street, St Pancras International and Victoria Stations) with journey times of approximately 45 minutes.

    Ebbsfleet International Station is located approximately 6 miles to the east of Dartford and provides high speed Eurostar trains to Paris, Brussels and Lille as well as to the domestic stations on the South-eastern and Eurostar rail networks.

    Ebbsfleet Valley is a 1,035-acre redevelopment area approximately 4 miles from the subject property. A reported 10,000 homes are set to be delivered along with schools, businesses and associated facilities. Ebbsfleet Valley is one of the largest urban regeneration projects the United Kingdom has seen in decades.

    DARTFORD

    A102

    A20

    A20

    A13

    A13

    A11

    A13

    A13

    A23

    A23

    A23

    A21

    A232

    A232A232

    A205

    A406

    A406A406

    A503

    A282

    A127

    A12

    A12

    A12

    A10

    A10

    A2A2

    A2

    A2

    A1

    A1020

    A2312

    A3205

    A501

    M25

    M25

    M20

  • 6-12 LOWFIELD STREET & 11 MARKET STREET, DARTFORD, KENT, DA1 1HAGreater London Multi Let Town Centre Investment With Potential To Add Value Subject To Planning Permission

    3

    DESCRIPTIONThe property is arranged over basement, ground, first and second floors and comprises two retail units and a self-contained office. The retail accommodation consists of a large Argos store with a prominent glazed frontage to Lowfield Street and a ground floor lock up shop with a return frontage to Market Street. The office accommodation is accessed via Market Street.

    6-10 Lowfield Street comprises a sales counter and ancillary storage on the ground floor with additional ancillary storage and staff facilities in the basement and on the first floor. The second floor falls within Argoss demise but is not currently in use. The unit benefits from a goods lift and is serviced from double doors which lead onto Market Street.

    12 Lowfield Street consists of a ground floor lock up shop which is currently being fitted out to comprise of a food store. The first and second floors are let to Argos under a separate co terminus agreement to their principle accommodation.

    11 Market Street comprises a ground floor reception area leading up to a first floor, which comprises an open plan office, four cellular offices, WCs and a staff kitchen.

    The property benefits from a large flat roof to the rear, offering development potential, subject to planning.

    SITUATIONThe property is situated on the east side of Lowfield Street at its junction with Market Street within Dartfords pedestrianised retailing pitch. The towns retailing provisions are focussed around the High Street, Lowfield Street and within the Priory and Orchard shopping centres.

    Retailers situated close by on Lowfield Street include Barclays Bank, Beaumont Beds, Quicksilver and British Heart Foundation, with occupiers on Market Street including Pizza Hut, Robinson Jackson and Hunters.

    The High Street lies immediately north of the property with occupiers including Holland & Barrett, Boots, WH Smith, Ryman, Coral, Iceland and Specsavers.

    The entrance to the Priory Shopping Centre is immediately south of the property on Lowfield Street. The scheme is occupied by a wide range of national operators including The Works, McDonalds, Sainsburys Supermarket, Wilko, Greggs, Poundland, Superdrug and CEX along with an indoor market and offices.

    The Orchards Shopping Centre is situated approximately 200 metres to the north of the property and is home to occupiers including Primark, Aldi, Boots, Carphone Warehouse, JD Sports, and Peacocks.

    Prospect Place Retail Park is located approximately 0.6 miles from the property and is home to several multiple retailers including Asda Living, B&Q, M&S Simply Food, Matalan and TK Maxx.

    Car parking facilities in the area are excellent with the Priory Shopping Centres multi-storey car park providing approximately 600 spaces, Sainsburys surface car park having 450 spaces, The Orchard Shopping Centre providing over 250 spaces as well as Aldis surface car park.

    The immediate vicinity is set to be regenerated extensively following Meyer Homes obtaining planning permission to build 548 new homes, shops and a micro-brewery on Lowfield Street, approximately 150 metres from the subject property.

  • 6-12 LOWFIELD STREET & 11 MARKET STREET, DARTFORD, KENT, DA1 1HAGreater London Multi Let Town Centre Investment With Potential To Add Value Subject To Planning Permission

    4

    ACCOMMODATION & TENANCY SCHEDULEThe areas are calculated on a Net Internal Area (NIA) basis in accordance with RICS Property Measurement Standards.

    Address Tenant Use Floor GIA Sq.FtGIA

    Sq.MNIA

    Sq.FtNIA

    Sq.M Rent PALease Start

    Term (Yrs)

    Lease Expiry Break

    L&T Act 1954 Comment

    6 - 10 Lowfield Street

    Argos Ltd Retail

    Ground 6,585 611.77 6,068 563.74

    106,000 29/09/06 15 28/09/21 Inside Ground Floor ITZA - 2,506 sq ft

    Basement 2,723 252.98 1,658 154.03

    First Ancil 6,317 586.87 6,142 570.61

    Second Ancil 1,658 158.03 1,658 154.03

    SUB TOTAL 17,283 1,610 15,526 1,442

    12 Lowfield Street Argos Ltd Retail

    First Ancil 1,087 100.99 1,087 100.99

    6,000 26/03/11 10.5 28/09/21 InsideSecond Ancil 383 35.58 368 34.19

    SUB TOTAL 1,470 136.57 1,455 135.18

    12 Lowfield Street

    London Foods

    Wholesaler Ltd

    Retail Ground 1,436 1,373.00 128 127.60 21,000 19/12/17 20 18/12/37 19/12/22 Outside

    Rent deposit of 6,300. Personal guarantee from tenant. Half rent for the first year, vendor to top

    up. Ground Floor ITZA 727 sq ft.

    11 Market Street

    Broadreach Business

    LtdOffice

    Ground 91 8.50 83 7.75

    6,000 23/08/16 3 22/08/19 OutsideRent deposit of 1,500.

    Personal guarantee from tenant.

    First 876 81.39 819 76.09

    SUB TOTAL 968 89.89 902.45 83.84

    TOTAL 21,157 3,209.11 18,011 1,789.03 139,000

    NB: The above areas have been provided from our clients records and have not been fully verified by Dunitz & Co.

  • 6-12 LOWFIELD STREET & 11 MARKET STREET, DARTFORD, KENT, DA1 1HAGreater London Multi Let Town Centre Investment With Potential To Add Value Subject To Planning Permission

    5

    ASSET MANAGEMENTFollowing J Sainsbury PLCs takeover of Home Retail Group (the parent company of Argos), it is expected that 200 out of the circa 750 Argos stores will close and Sainsburys plan to and have already started incorporating full Argos operations or concessions within their existing portfolio.

    There is a Sainsburys Supermarket approximately 0.2 miles from the subject property and it is possible that upon expiry of the Argos lease the tenant may choose to not renew and incorporate an Argos operation at the nearby Sainsburys instead. Alternatively, Argos may agree to an early surrender of their lease subject to negotiation.

    If Argos were to vacate this would offer the potential to increase the massing of the building and/or convert the upper floors to residential use subject to planning permission. In February 2016, Rightmove reported that Dartford had become the fastest selling hotspot for homes in Great Britain with homes selling within an average of 16 days. In June 2017, the Office of National Statistics reported that the average house value in Dartford had jumped by 13.10% from the previous year, which significantly outstrips the growth rate in London as a whole.

    Furthermore, due to the imminent lease expiry at 11 Market Street there is potential to re-gear the lease subject to negotiation with the existing tenant or obtain vacant possession in August 2019 and convert the office accommodation to residential use subject to planning permission.

    TENURE Freehold.

    PLANNINGThe property is located within Dartford Borough Council.Tel: +44 (0)1322 343 4

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