78–80 & 82–84 high street sittingbourne, ent, me10 4pb...

78–80 & 82–84 HIGH STREETSITTINGBOURNE, KENT, ME10 4PB & ME10 4PH VAT FREE - Secure South East Retail Investment100% Prime Pitch with potential for change of use to the upper parts

INVESTMENT SUMMARY • Sittingbourne is a fast-growing London commuter town located approximately 46 miles

(74 km) to the south east of London. • 3 retail units located in the prime pitch benefiting from a return frontage on to Railway Terrace. • 100% prime pitch. • Potential to change the use of the upper parts and make self-contained, subject to planning. • Superdrug and Card Factory (sublet) have recently renewed their leases. • Betfred did not exercise the June 2018 break clause and have an outstanding reversionary

rent review from June 2018. • Total passing rent of £94,000 per annum. 1

• Freehold• The property is not elected for VAT and therefore VAT is not applicable

on the purchase price. • Seeking offers in excess of £1,145,000 subject to contract. This

price reflects a Net Initial Yield of 7.75% and a Reversionary Yield of 8.25%, assuming standard purchaser’s costs of 5.88%.

• Low capital value of £82.72 per sq ft. • The vendor would consider selling the units individually.


LOCATION Sittingbourne is strategically located approximately 8 miles (13 km) east of Gillingham, 12 miles (19 km) north east of Maidstone, 16 miles (26 km) west of Canterbury and 46 miles (74 km) south east of London.

Sittingbourne is located adjacent to the M2 Motorway with convenient access to Junction 5 via the A249 dual carriageway. The A249 also connects to Junction 7 of the M20 Motorway which provides a direct route to the M25 Motorway and the ports of Dover and Folkestone.

Sittingbourne Railway Station provides regular rail services to London Victoria, St Pancras International and Cannon Street with the fastest journey being only 57 minutes via the high-speed rail link (HS1).

Gatwick airport is approximately 48 miles (77 km) to the south east, Stanstead airport lies approximately 64 miles (103 km) to the north east and Heathrow airport is approximately 65 miles (105 km) to the east.

SITTINGBOURNE

A13

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A12

A13

A12A127

A127A127

A282

A20

A2

A2

A2

A2

A249

A299

A229

A26A21

A228

A23

A23

A24

A12

A13

A232

A102

A503

A406

A205A214

A217

A1


SITUATION

The property is situated in a prime pitch on High Street opposite Central Avenue, adjacent to the entrance of The Forum Shopping Centre and next door to WHSmith and Burton. National occupiers on High Street include, Boots, Sports Direct, Holland & Barrett, Greggs, and several high street banks. The Forum Shopping Centre is immediately north of High Street and is home to national retailers including Specsavers, Bonmarche, Savers, Costa, Thomas Cook, The Works and Tesco Metro.

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Sittingbourne Retail Park is located approximately 0.5 miles north of the property and is occupied by M&S Foodhall, Halfords, Mc Donalds, Pizza Hut and Currys PC World. The town benefits from a large Sainsburys supermarket just south of High Street and an Asda Superstore and a Morrisons supermarket north of the property. Car parking facilities in the vicinity are excellent with The Forum Shopping Centre providing approximately 160 spaces, Sainsbury’s surface car park 420 spaces, The Swallows Leisure Centre 86 spaces, Albany Road 104 spaces and Cockleshell Walk 102 spaces.


The Spirit of Sittingbourne is a Public Private Partnership between U+I Plc, Swale Borough Council, Quinn Estates and Essential Land.

The scheme will deliver the following amenities: • Brand new retail park.• 8-screen multiplex cinema alongside 6 new restaurants, set to attract 400,000 visitors per year and stimulate the night time economy. • Public square which will connect Sittingbourne Railway Station more naturally to High Street, which in turn should significantly increase the footfall on High Street. • Links from the Forum car park to High Street.• 308 space multi storey car park.• Travelodge hotel comprising of 63 bedrooms.

Approximately £59 million is being invested into Phase 1 of the scheme. This phase is set to generate approximately £330 million into Sittingbourne over the next 10 years and create around 790 new jobs.

A key objective of the scheme, as stated by the development partners, is to increase the attractiveness of Sittingbourne High Street as a destination. The new leisure scheme will increase footfall to the existing High Street businesses and will create a more attractive pedestrian route from the station into the town centre.

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DESCRIPTIONThe property comprises of 3 retail units. 78-80 High Street and 82-84 High Street are separated by Railway Terrace which has concrete bollards preventing cars passing through.

The upper parts could be self-contained and accessed via the side or rear of the property, subject to planning permission and negotiation with the tenant.

78 High Street - SuperdrugThis unit is arranged over basement, ground and first floor. There is a sales area, consultation room, pharmacy and ancillary accommodation on the ground floor as well as a goods lift linking to the first floor. The first floor consists of ancillary accommodation, staff room and WCs. The basement, which is currently accessed via a trap door, is not being used. The shop also benefits from loading doors to the rear.

80 High Street - Card FactoryThis unit is arranged over ground and a first floor. There is a sales area and ancillary accommodation at ground floor level. The first floor consists of ancillary accommodation, managers office/staff room and WCs.

82-84 High Street – BetfedThis unit benefits from a return frontage and is arranged over basement ground and a first floor. There is a sales area, customer WCs and ancillary accommodation at the ground floor. The first floor consists of ancillary accommodation, managers office/staff room and WCs. The basement is not currently being used and is accessed via a rear courtyard. This unit benefits from a secure rear yard.

Rear of Betfred.5

Rear of Superdrug and Card Factory.


ACCOMMODATION & TENANCY SCHEDULEThe units are fully let to Superdrug and Betfred. Card Factory sub-let 80 High Street from Superdrug. The total Net Internal floor area is 13,265 sq ft (1,232 sq m) and the total Gross Internal floor area is 13,842 sq ft (1,286 sq m).

The total passing rent is £94,000 per annum.

TENANT ADDRESS FLOOR USE SQ FT SQ M ITZASQ FT

RENT PER ANNUM

LEASE START

TERM (YRS)

RENT REVIEW

LEASE EXPIRY COMMENTS

Superdrug 78 High Street

Ground Sales 1,745.47 162.16

1,123.41

£60,000 20/09/2017 5 N/A 19/09/2022

Superdrug have a lease over the entire

property and are subletting 80 High

Street to Card Factory on co terminus terms at

a rent of £27,500 per annum.

Ground Ancillary 852.18 79.17First Ancillary 1,984.65 184.38

Basement Ancillary 833.02 77.39Sub Total 5,415.32 503.10

Card Factory 80 High Street

Ground Sales 1,084.14 100.72

761.83Ground Ancillary 479.10 44.51

First Ancillary 1,426.75 132.55Sub Total 2,990.00 277.78

TOTAL 8,405.31 780.88 £60,000

TENANT ADDRESS FLOOR USE SQ FT SQ M ITZASQ FT

RENT PER ANNUM

LEASE START

TERM (YRS)

RENT REVIEW

LEASE EXPIRY COMMENTS

Bet Fred 82-84 High Street

Ground Sales 1,628.47 151.29

1,259.02 £34,000 16/06/2013 10 16/06/2018 15/06/2023

The June 2018 rent review is outstanding.

Based on the rent agreed at the Superdrug lease renewal in September

2017 the ERV of this unit is £40,000 per annum. The June 2018 break

was not exercised.

Ground Ancillary 280.29 26.04

First Ancillary 1,683.58 156.41

Basement Ancillary 1,267.66 117.77

TOTAL 4,860.01 451.51 £34,000

The above areas are calculated on a NIA in accordance in accordance with RICS Code of Measuring Practice, 6th Edition. 6


COVENANT INFORMATIONSuperdrug Stores PlcSuperdrug Stores Plc is a subsidiary of the A.S Watson Group and is

the UK’s fastest growing health and beauty retailer and have been trading since 1964. The company operates from over 800 stores in the United Kingdom and employs a workforce of over 14,000 people. In addition, Superdrug have pharmacies with consultation rooms in over 220 stores and a further 19 contain nurse clinics.

Dun & Bradstreet has given Superdrug Stores Plc a D&B Rating of 5A1 and have reported the following accounts over the past 3 years.

Superdrug Stores Plc 30/12/2017(£)

31/12/2016(£)

26/12/2015(£)

Turnover 1,241,783,000 1,213,600,000 1,105,002,000Pre Tax Profit 92,934,000 80,385,000 56,842,000Net Worth 115,296,000 86,291,000 50,149,000

For additional information, please see www.superdrug.com

Sportswift Limited t/a Card FactoryCard Factory are specialists in selling cards and gifts for special

occasions and have been trading since 1997. The company currently operate from over 850 stores across the United Kingdom and have a workforce of approximately 6,500 people.

Dun & Bradstreet has given Sportswift Limited a D&B Rating of 5A1 and have reported the following accounts over the past 3 years.

Sportswift Limited 31/01/2017(£)

31/01/2016(£)

31/01/2015(£)

Turnover 379,540,000 362,226,000 336,676,000Pre Tax Profit 81,718,000 92,210,000 61,347,000Net Worth 62,010,000 80,967,000 56,745,000

For additional information, please see www.cardfactory.co.uk

Done Brothers (Cash Betting) Limited t/a BetfredBetfred was founded in 1967 and has grown to become

the world’s biggest independent bookmaker with over 1,650 retail outlets and 10,000 employees. The company also operates from 51 UK racecourses including Cheltenham, Ascot and Epsom. The company operate across multiple gaming channels including licenced betting offices, online mobile, telephone and on course. Betfred is the fastest growing eGaming business in the UK and are the leading sponsors of UK racing and exclusive sponsors of the Scottish League Cup and World Snooker Championship.

Dun & Bradstreet has given Done Brothers (Cash Betting) Limited a D&B Rating of 4A1 and have reported the following accounts over the past 3 years.

Done Brothers (Cash Betting) Limited

25/09/2016(£)

27/09/2015(£)

28/09/2014(£)

Turnover 320,065,000 287,887,000 417,111,000Pre Tax Profit 29,293,000 7,364,000 13,967,000Net Worth 23,115,000 118,085,000 108,429,000

For additional information, please see www.betfredcorporate.com 7


TENUREFreehold (two separate titles).

EPC

The units have the following EPC ratings:

82-84 High Street: C (74)

78-80 High Street: An EPC assessment has been commissioned.

Full copies of all EPC certificates are available from Dunitz & Co. Upon Request.

VATThe units are not elected for VAT and therefore VAT is not applicable.

PLANNINGThe property is located within Swale Borough Council Tel: +44 (0)1795 424 341Web: www.swale.gov.uk

The property is not listed and sits within the Sittingbourne Conservation Area.

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50 metres

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

Sittingbourne

Experian Goad Plan Created: 19/06/2018Created By: Dunitz and Co Ltd

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

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(160) ( ACTUAL)

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INVESTMENT CONSIDERATIONS

• The Spirit of Sittingbourne is set to generate approximately £330 million into Sittingbourne over the next 10 years with a major objective being to increase the footfall on High Street. • Sittingbourne has 1,400 new homes in the pipeline. • The property is situated within the prime pitch and benefits from a return frontage onto Railway Terrace. • Superdrug have recently renewed their lease; Card Factory have recently renewed their sublease and Betfred did not exercise their June 2018 break clause. • Potential to self-contain and change the use of the upper floors, subject to planning permission and gaining vacant possession of the upper floors. • Numerous national multiple retailers are represented close by including Holland & Barrett, Sports Direct, Paddy Power, Wilko, Specsavers, Bonmarche and Tesco Metro. • Freehold. • Price reflects an attractive Net Initial Yield of 7.75% and a Reversionary Yield of 8.25%, based on the outstanding Betfred rent review being settled at £40,000, which is the ERV. • Low capital value of £82.72 per sq ft.

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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.

October 2018

PROPOSAL

Seeking offers in excess of £1,145,000 subject to contract and exclusive of VAT. This price reflects a Net Initial Yield of 7.75% and a Reversionary Yield of 8.25%, assuming standard purchaser’s costs of 5.88%.

Capital value of £82.72 per square foot.

The vendor would consider selling the units individually.

FURTHER INFORMATION

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

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

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:12500m 25m 50m 75m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1367

HOWLETCH LA

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ESSINGTON WAY

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

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

11The plan is indicative and for reference purposes only. A Title Plan can be provided upon request.

mailto:james%40dunitzandco.com?subject=




78–80 & 82–84 high street sittingbourne, ent, me10 4pb...

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