78-84 high street bromley br1 1ey - jackson criss · 11 miles (17.7km) south east of central london...

PRIME GREATER LONDON MIXED USE RETAIL INVESTMENT FOR SALE

78-84 HIGH STREETBROMLEY BR1 1EY

z Bromley is an affluent Greater London borough, situated only 11 miles (17.7km) south east of Central London and 7 miles (11.26km) east of Croydon.

z The London Borough of Bromley is one of the largest economies in Greater London with more than 13,000 businesses and an estimated 129,000 jobs – an economic scale larger than cities such as Reading and Oxford.

z Prime mixed use retail/residential parade investment located on the pedestrianised High Street.

z Bromley High Street is one of south London’s premier retailing locations, ranked 20th out of all PROMIS Centres in terms of population size.

z Freehold.

z 25% of the income secured to Metro Bank PLC with an unexpired term of 24 years.

z Attractive WAULT to expiry of 10.75 years and 7.96 years to break.

z The parade includes the national occupiers Boots Opticians, Harvey & Thompson and Metro Bank, all boasting very strong covenants.

z Our client is seeking offers in excess of £4,350,000 (Four Million, Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, which reflects an initial yield of 6%, assuming standard purchasers costs at 6.56%.

INVESTMENT SUMMARY

78-84 HIGH STREET | BROMLEY

LOCATIONLocated just 11 miles south east of Central London, Bromley is a popular London suburb. It is the administrative headquarters of the London Borough of Bromley, the largest of London’s 32 boroughs. Nearby towns include Beckenham to the west (2 miles), Orpington to the south-east (5 miles), Greenwich to the north (6 miles) and Dartford to the east (11 miles).

Bromley is situated within the M25, approximately 8 miles from Junctions 3 and 4, as well as Junction 1 of the M20 which provides direct access to the county of Kent. The London South Circular (A205) is located approximately 3 miles to the north via the A21.

Bromley town centre is well served by two mainline rail stations situated at the northern and southern ends of the town’s shopping area, providing regular services into Central London with a fastest journey time of 15 minutes, as well as the neighbouring counties of Surrey and Kent to the south.

Bromley South Station, a major sub-regional interchange, is the busiest in the Borough and provides direct journeys to London Victoria (15 minutes), London St Pancras International (42 minutes) and London Blackfriars (34 minutes).

Bromley North Station provides services for commuters travelling towards London Bridge, Cannon Street & Charing Cross via Grove Park with fastest journey times of 23, 33 and 37 minutes respectively.

Local bus routes serve Orpington (61), Lewisham (208) and Crystal Palace (227). Bromley also benefits from its convenient access to some of the UK’s busiest airports including London Gatwick located 25 miles to the south west approximately 35 minutes by car or 50 minutes by train and London Heathrow (55 miles to the north west via the M25).



DEMOGRAPHICSBromley’s catchment encompasses a total population of 2.3 million residents across much of South London and the surrounding areas of Kent. Its core catchment population of 405,801 is similar in size to Watford, Reading and Brent Cross (CACI 2016). The town is ranked 4th for shopper population across London centres (excluding Central London) and 20th nationally (PMA 2016).

The most affluent ACORN categories, ‘Affluent Achievers’ and ‘Rising Prosperity’, account for 54% of the total catchment population and 64% of the core catchment population, significantly above that of both the UK and London averages and ranking the town 2nd in the top 20 London centres for wealth (excluding Central London).

Bromley contains a particularly high proportion of adults of working age (25-44) and is seen as a home for affluent commuters with a high propensity to spend. The affluence of Bromley and the surrounding area is further evidenced by an estimated £4.8 billion of total comparison goods expenditure. Across its total catchment, Bromley has a current comparison goods market potential of £493 million, ranking the town 7th regionally and 36th nationally (of over 4300 centres) (CACI 2016).


RETAILING IN BROMLEY

The total retail floorspace in Bromley town centre is estimated at 1.24 million sq ft (PMA 2016). The town’s main shopping centre, the Glades is owned by La Salle (Alaska Pension Fund) and forms the 100% prime shopping provision for both the town and wider Borough. Anchored by Marks & Spencer (159,992 sq ft) and Debenhams (105,061 sq ft), the centre is over 500,000 sq ft. Other retailers within the centre include H&M, New Look, Zara and Boots as well as a strong mix of key high street multiples and first-class shopping brands including Apple, Massimo Dutti, Karen Millen, Hobbs, Jo Malone and Mac.

Bromley’s second managed centre is The Mall Shopping Centre, a smaller, partially covered scheme totalling approximately 116,000 sq ft, providing a secondary, value-led retail offer. The Mall has been redeveloped and reconfigured to create a number of large stores, home to a number of national occupiers such as Sports Direct, Poundland, and Argos.

The remainder of the town’s retail offer is predominantly situated along the pedestrianised High Street, which is home to retailers such as Primark, Next, JD Sports and Topshop. Further southwards along the High Street towards Bromley South railway station, the retail mix is somewhat reduced although value retailers Wilko, Poundland and TK Maxx have stores here.

Further towards the top of the High Street, A3 occupiers such as Franco Manca, Nandos, GBK and Zizzi all occupy space.

NORTH

For Identification purposes only


SITUATIONThe subject premises are situated in a prominent trading location on the pedestrianised High Street, directly opposite the main entrance to The Glades Shopping Centre and in close proximity to TK Maxx, Sports Direct, H&M, Pret A Manger and Boots the Chemist.

DESCRIPTIONThe property comprises a parade of four self-contained retail units, one of which forms part of a larger Metro Bank demise. Three of the units are arranged over ground floor only, with the fourth benefitting from first floor ancillary space.

There are also three self-contained residential maisonettes above, each comprising three bedrooms and accessed from the side of the building on Ethelbert Road.



TENUREThe property is held freehold.

TENANCIESThe property is let in accordance with the following tenancy schedule, producing a current rental income of £278,275 pax with no current shortfalls, with the retail leases all let on Full Repairing and Insuring terms. The 3 residential units comprise 3 bed maisonettes, with one being sold off on a lease to expire 31/12/2192 a peppercorn rental.


TENANCY SCHEDULE

Occupational Details Areas Lease Details Income

Comments

Description Tenant Floor Area

Total Area (sq ft)

Total Area (sq m)

Ground Floor Area

ITZA (units)Lease Start Expiry Date

(Break) Next Review Current Rent £ pa

Current Rent (£ ZA/per

sq ft)

78 High Street Metro Bank PLC Ground 795 73.86 447 26/04/2017 25/04/2042 (25/04/2032) 26/04/2022 £70,000 £156.60

80 High Street St. Christophers Hospice Ground 976 90.67 483 04/10/2012 03/10/2022 04/10/2017 £60,000 £116.00 Rent review outstanding.

82 High Street Harvey & Thompson Limited Ground 947 87.98 462 26/04/2017 25/04/2027 26/04/2022 £60,000 £121.00

The tenant is still within their rent free period, expiring on 26/04/2019.

Rent free period to be topped up by the vendor.

84 High StreetBoots Opticians Professional Services Ltd

Ground 1274 118.35

668 14/05/2012 13/05/2022 14/05/2017 £61,275 £85.00 Rent review outstanding.

First 1170 108.69

4 Manor Mansions Vacant – – – – – – – £13,800* –3 bedroom maisonette.

*Flat is currently being marketed and income assumes let at £13,800.

5 Manor Mansions Private Individual – – – – 16/09/2017 15/09/2018 – £13,200 –Assured Shorthold Tenancy

3 bedroom maisonette. Rolling mutual break from 16/03/2018.

6 Manor Mansions Private Individual – – – – 19/11/2004 31/12/2192 – – –3 bedroom maisonette, let at a peppercorn rent.

Sold off on a long leasehold basis.

£278,275


RENTAL VALUEThe individual rental values have been detailed in the tenancy schedule and the most salient comparable rental evidence is set out below;

1) 132 High Street (Yours Clothing) Open market letting to Yours Clothing in November 2017 on a new 10 year lease with a tenant only break option in year 5, at a rent of £110,000 per annum. This reflected a headline Zone A rate of £125 per sq ft and a net Zone A rate of £118 per sq ft.

2) 94 High Street (Glitter) Open market letting to Charleville Trading Limited (trading as Glitter), on a new 10 year lease from October 2017 at a passing rent of £85,000 per annum. This reflects a Headline Zone A rate of £122 per sq ft and a Net Zone A rate of £97.67 per sq ft.

3) 139-141 High Street (Thomas Cook) Thomas Cook took agreed to a lease renewal on a 5 year lease, effective from July 2016 at a rent of £112,500 p.a. This rent reflected a headline Zone A rate of £123 per sq ft and net Zone A rate of £116.70 per sq ft.


COVENANT

TenantYear of

AccountsTurnover Pre-Tax Profit Net Worth

Experian Credit Score

(Company No: 6419578)

31/12/2017 £293,800,000 £18,675,000 £947,658,000

9631/12/2016 £195,100,000 -£17,198,000 £712,020,000

31/12/2015 £120,200,000 -£56,797,000 £352,932,000


31/03/2017 - £101,000 £29,407,000

10031/03/2016 - £556,000 £29,369,000

31/03/2015 - -£230,000 £27,724,000


31/12/2017 £110,333,000 £14,237,000 £95,422,000

10031/12/2016 £94,223,000 £9,920,000 £83,651,000

31/12/2015 £89,244,000 £7,636,000 £71,545,000


31/08/2017 £368,959,000 £26,250,000 £77,563,000

10031/08/2016 £278,106,000 £21,073,000 £72,306,000

31/08/2015 £391,067,000 £39,176,000 £82,691,000

INVESTMENT COMPARABLES

a) 72 – 76 High Street, Bromley Prime freehold investment let to Metro Bank PLC with 25 years unexpired, was purchased by Metro Bank in December 2017 for £4.1m, reflecting a net initial yield of 4.58%. This is adjacent to the subject property.

b) 77 – 81 High Street, Bromley Prominent freehold investment sold in December 2017 for £5.24m, reflecting a net initial yield of 6.85%. The premises are let to Boots, Nationwide and Warren Evans and occupy an inferior trading location to the subject premises.

c) 103 - 105 High Street, Bromley Prime freehold investment let to GPS (Great Britain) Limited trading as GAP, sold to a Private Investor for £2.775m in June 2017, reflecting a net initial yield of 5.75%. The property was let on a 10-year Full Repairing & Insuring lease expiring 24th December 2023 at a rent of £170,000 pax, which reflects a Zone A rate of £102 per sq ft.


Messrs. Jackson Criss 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 permissions 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 has any authority to make or give any representation or warranty whatever in relation to this property. 100701. Designed by TCC 06/18.

For further information, please contact:

BROOK WANNOP

020 7637 [email protected]

LIAM JONES


PHILIP HAY


VATThe property has been elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer of a Going Concern (TOGC).

EPCCopies of the EPC ratings and reports are available from this office.

PROPOSALOur client is seeking offers in excess of £4,350,000 (Four Million, Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, which reflects an initial yield of 6%, assuming standard purchasers costs at 6.56%.

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

78-84 high street bromley br1 1ey - jackson criss · 11 miles (17.7km) south east of central london...

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