6-12 lowfield street & 11 market street, … · nia sq.m rent pa lease start term (yrs) lease...

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 Dartford’s 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.


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


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 Argos’s 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 Dartford’s pedestrianised retailing pitch. The town’s 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, McDonald’s, Sainsbury’s 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 Centre’s multi-storey car park providing approximately 600 spaces, Sainsbury’s surface car park having 450 spaces, The Orchard Shopping Centre providing over 250 spaces as well as Aldi’s 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.


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.Ft

GIA Sq.M

NIA Sq.Ft

NIA Sq.M Rent PA Lease

StartTerm (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 client’s records and have not been fully verified by Dunitz & Co.


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 Sainsbury’s plan to and have already started incorporating full Argos operations or concessions within their existing portfolio.

There is a Sainsbury’s 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 Sainsbury’s 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 343 434 | Web: www.dartford.gov.uk

The property is not listed but lies within the Dartford Town Centre Conservation Area.

ENERGY PERFORMANCE CERTIFICATE (EPC)The property has the following EPC ratings:

4-10 Lowfield Street: C (56)

12 Lowfield Street: D (78)

11 Market Street: G (190)

Full copies of the EPCs are available from Dunitz & Co. upon request.

VATThis property has been elected for VAT. It is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

TENANT FIT OUT IN PROGRESS


6

COVENANT INFORMATIONArgos Limited Argos is one of the UK’s leading online and bricks-and-mortar retailers with approximately 750 locations throughout the United Kingdom. Founded in 1973, Argos is the flagship brand of the Home Retail Group and accounts for more than 70% of its parent company’s sales. In September 2016, J Sainsbury Plc acquired The Home Retail Group for £1.4 billion.

Dun & Bradstreet has given Argos Limited a D&B Rating of 5A1 representing a low risk of business failure.

Argos Ltd 11/03/2017£ 000s

27/02/2016£ 000s

28/02/2015£ 000s

Turnover 4,285,775 3,930,104 3,919,176Pre Tax Profit -25,664 -180,769 97,146Tangible Net Worth 516,284 648,286 1,202,554

For additional information, please see

London Foods Wholesaler LtdLondon Foods Wholesaler Ltd was formed in 2015 and specialises in importing and distributing foodstuffs. The company initially traded from a stall within the nearby Orchards Shopping Centre and having built up a local customer base, the company have now signed a lease at 12 Lowfield Street.

Broadreach Business LtdBroadreach Business Ltd has been operating since September 2001 offering a wide range of training courses in areas such as health care, child care, corporate governance, basic English and fire training. Broadreach also help their candidates to secure employment following training courses, offering direct links into their candidates chosen industries.

J Sainsbury Plc Sainsburys operate from 1,414 stores in the UK, has 161,000 employees and a 16.2% market share as of January 2018. Sainsbury’s latest trading statement in January 2018 was positive, with like for like sales (excluding fuel) up 1.1% in the previous 16 weeks.

Dun & Bradstreet has given J Sainsbury Plc a D&B Rating of 5A1 representing a low risk of business failure.

J Sainsbury Plc 11/03/2017£ 000s

12/03/2016£ 000s

14/03/2015£ 000s

Turnover £26,224,000 £23,506,000 £23,775,000 Pre Tax Profit £503,000 £548,000 (£72,000)Tangible Net Worth £6,130,000 £6,036,000 £5,214,000

For additional information, please see


7

INVESTMENT CONSIDERATIONS Situated on a prominent corner location within Dartford’s pedestrianised retailing pitch.

Dartford is a London commuter town and is located within the M25.

Situated opposite the Priory shopping centre and 200 metres from The Orchards Shopping Centre.

There is potential for change of use of the upper floors in addition to increasing the massing of the building, subject to planning permission.

Over 80% of the rental income is secured against the strong covenant of Argos Ltd who have a D&B rating of 5A1 representing a low risk of business failure.

The second floor is within Argos’s demise, however is currently not in use, offering the potential to re-gear subject to negotiation.

Numerous national multiple retailers are represented within the vicinity including WH Smith, Holland & Barrett, Boots, Iceland, Specsavers, Greggs, CEX and Wilko.

Price represents a low capital value of approximately £83.00 per sq.ft.

LOW

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5a 514 to 18

2

24

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HIGH STREET

25

23a

2321

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9

7

31

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5

0m 5m 10m 15m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:541

The plan is indicative and for reference purposes only. A Title plan can be provided upon request.


850 metres

Dartford

For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011

Experian Goad Plan Created: 05/02/2018Created By: Dunitz and Co Ltd

Copyright and confidentiality Experian, 2017. © Crown copyright anddatabase rights 2017. OS 100019885

DUNITZ & COMPANY LTD: DISCLAIMER

Dunitz & Company Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that:

1. The particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of an offer or contract;

2. Lease details, service charges, ground rent (where applicable) and council tax are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts;

3. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct however we have not carried out a structural survey and any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise;

4. No person in the employment of Dunitz & Company Ltd has any authority to make or give any representation or warranty whatever in relation to the property; and

5. The photographs show only certain parts of the property as they appeared at the time they were taken and the copyright of the same remain exclusive to Dunitz & Company Ltd.

February 2018

PROPOSAL

Seeking offers in excess of £1,745,000 subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.50%, and a capital value of approximately £83.00 per sq.ft, assuming acquisition costs of 6.20%.

FURTHER INFORMATION

For further information or to arrange an inspection of the property, please contact:

James DunitzTel: +44 (0)20 7486 8000Email: Web:

Daniel EliaTel: +44 (0)20 7486 8000Email: Web:

Dunitz & Co. 40 Margaret Street, London W1G 0JH

mailto:james%40dunitzandco.com?subject=




6-12 lowfield street & 11 market street, … · nia sq.m rent pa lease start term (yrs) lease...

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