chichester - lewis ellis

HIGHLY PROMINENT AND WELL SECURED PRIME RETAIL INVESTMENT

4 SOUTH STREET | CHICHESTER | PO19 1EH

CHICHESTER4 SOUTH STREET | CHICHESTER | PO19 1EH

CHICHESTER

INVESTMENT SUMMARY• Chichester is an affluent historic cathedral city on

the south coast of England and is a popular retail and tourist destination.

• The property occupies a highly prominent prime pitch on South Street, 20 metres from the intersection with East Street, benefitting from significant footfall.

• The property is located adjacent to Russell & Bromley with other nearby occupiers including Moss Bros, Top Shop and Jigsaw.

• Well secured, being let to Blacks Outdoor Retail Limited with JD Sports Fashion Plc (D&B rating of 5A1) as guarantor, for an unexpired term of 2.1 years.

• JD Sports was a standout retail performer throughout 2018 and the company highlight that a High Street presence is key to their success going forward.

• Passing rent of £128,000 per annum (£131 psf ITZA).

• The first floor benefits from direct access on to South Street, which could suit long term alternative uses, subject to planning.

• Freehold.

• Offers are sought in excess of £1,930,000 (One Million, Nine Hundred and Thirty Thousand Pounds).

• A purchase at this price would reflect a net initial yield of 6.24%, assuming purchasers costs of 6.26%.

CHICHESTER | 4 SOUTH STREET | CHICHESTER | PO19 1EH

LOCATIONChichester is a historic cathedral city situated on the south coast of England in the county of West Sussex and is a popular retailing and tourist destination. It is the only city in West Sussex and forms the principal settlement within a large, predominantly rural district that lies alongside the A27 trunk road, which stretches across the south coast from Eastbourne to the M27 north of Portsmouth. The city is located approximately 68 miles (109km) south west of London, 17 miles (27km) east of Portsmouth and 34 miles (55km) west of Brighton.

Chichester benefits from excellent road communications located adjacent to the A27 dual carriageway, the primary transport route for the south coast linking Brighton and Eastbourne in the west to Southampton and Portsmouth in the east. The A3 (M) and M27 provide excellent access to London and the UK’s motorway network.

By rail, Chichester benefits from frequent direct train services to London (Victoria) with a fastest journey time of approximately 90 minutes.

RETAILING IN CHICHESTERThe retail offer in Chichester is concentrated within the city walls and is focused along two main shopping axis, namely North Street/South Street and East Street/West Street; these intersecting at Market Cross.

Chichester benefits from robust occupational demand supported by restricted supply. Single units comprise the majority of the city’s retail offer, with no shopping centre and limited development potential due to Chichester’s historic nature.

The total population within Chichester’s primary catchment area is 252,000 with an estimated shopping population of 156,000 (PROMIS). During the summer, tourism increases the catchment to over 1.5 million.

The catchment population is one of the most affluent in the UK, as a district Chichester has the highest percentage of managers, directors and senior officials in West Sussex (14.2%), higher than regional (12.3%) and national averages (10.9%).

The percentage of unemployment (3.6%) is lower than the national average (4.8%). The city has a significantly above average representation of the most affluent AB social group. Coupled with an average gross weekly pay of £577 in excess of the national average (£541) suggests the city is likely to have higher levels of consumer confidence to support its retail provision.

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PetersfieldHaywards

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Bromley

DartfordGravesend

Croydon

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Kingstonupon Thames

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Newbury

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GatwickAirport

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CrowboroughWinchester

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Andover

Southampton

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CHICHESTER COLLEGE

CHICHESTER CATHEDRAL

CHICHESTER RAILWAY STATION

CHICHESTER CROSS

SUBJECT PROPERTY


50 metres

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

Chichester

Experian Goad Plan Created: 14/06/2017Created By: Lewis Ellis and Partners

Copyright and confidentiality Experian, 2017. © Crowncopyright and database rights 2017. OS 100019885

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SITUATIONThe property occupies a highly prominent prime position at the pedestrianised northern end of South Street, within 20 metres of Chichester Cross and East Street. The unit backs on to the grounds of Chichester Cathedral to the rear.Chichester Cross is located where the pedestrianised North Street and East Street meet as well as South Street and West Street, making it a central focus of the retail offer within the city.The property benefits from significant footfall as South Street forms the main pedestrian route from Chichester train station to the town centre, cathedral and prime retail offering.Retailers in close proximity include Russell & Bromley, White Stuff and Cath Kidston. South Street is a focus of popular restaurants including Cote, Prezzo, Maison Blanc and Wagamama.

DESCRIPTIONThe property comprises a prime retail unit arranged over ground, basement and first floors, with a total net internal floor area of 3,321 sq ft (308.5 sq m). The property forms part of a retail terrace with Russell & Bromley and Sea Salt Ladies Wear either side.The unit is well configured with retail accommodation located on the ground and first floors and ancillary/storage space located in the basement. The tenant has fitted a large staircase to the rear opening up the first floor sales area. The first floor also benefits from a separate original staircase, which provides access directly onto North Street.


TENUREFreehold.

TENANCYThe property is fully let to Blacks Outdoor Retail Limited guaranteed by JD Sports Fashion PLC on a full repairing and insuring lease from 21st February 1996 to 20th February 2021 (2.1 years unexpired).

The lease was assigned to Blacks Outdoor Retail Limited on 14th January 2013 and the passing rent is £128,000 per annum (£131 psf ITZA), which was agreed as uplift at the 21/02/16 rent review.

ACCOMMODATIONArea Sq Ft Sq m

Ground Floor Sales 1,080 100.3

ITZA 864 80.2

First Floor 1,225 113.8

Basement 1,016 94.4

Total 3,321 308.5

When devaluing the rent A/10 was applied to the first floor sales area and A/20 on the basement sale. A 7.50% reduction was also applied to the ITZA area to allow for the frontage to depth of the unit.

The floor areas have been measured on a NIA basis (Net Internal Area) in accordance with the RICS Code of Measuring Practice (6th Edition).


COVENANT INFORMATIONBlacks Outdoor Retail Limited Blacks is one of the most established outdoor retailers in the UK with around 60 stores nationwide, employing approximately 1,800 people. Blacks specialises in supplying outdoor, camping, walking, skiing and mountaineering equipment. The company has benefited from being acquired by JD Sports in 2012, which has increased its financial stability significantly.

Blacks Outdoor Retail limited has a Dun & Bradstreet rating of N1, representing a “minimum” risk of business failure. The company has recorded the following accounts over the last 3 years:

02 Mar 2018(£000’s)

28 Jan 2017(£000’s)

30 Jan 2016(£000’s)

Sales Turnover 157,561 137,793 129,932

Profit (Loss) Before Tax 3,513 914 (3,841)

Tangible Net Worth (36,872) (40,989) (43,120)

Net Current Assets (Liabilities) 37,121 28,312 40,452

JD Sports Fashion PlcGuarantor of the lease, JD Sports Fashion, is a leading multichannel retailer of sports fashion and outdoor brands in the UK and Europe. The Group has over 2,400 stores across a number of brands including JD, Size?, Footpatrol, Kukri, Millets and Go Outdoors. The group has expanded its international presence opening stores in Kuala Lumpur, Malaysia and Australia as well as a new focus on the USA.

JD Sports was a standout retailer throughout 2018 that continued to perform despite uncertainty in the retail sector. The company highlight that a High Street presence is key to their success due to the impulsive nature of their consumer base combined with the importance of cash to a high proportion of their demographic – these factors have been key drivers for their physical sales.

JD Sports Fashion Plc has a Dun & Bradstreet rating of 5A1, representing a “minimum” risk of business failure. The company has recorded the following accounts over the last 3 years:

03 Feb 2018(£000’s)

28 Jan 2017(£000’s)

30 Jan 2016(£000’s)

Sales Turnover 3,161,400 2,378,694 1,821,652

Profit (Loss) Before Tax 294,500 238,368 131,631

Tangible Net Worth 559,400 361,348 308,809

Net Current Assets (Liabilities) 289,500 179,013 162,541

INVESTMENT MARKETAddress Date Tenant Unexpired

Term ( Years)Rent p.a. (£ ZA)

Price Yield

19-20 East Street, Chichester Jul-18 Joules 9 £200 £4.40m 4.00%

79 East Street, Chichester Apr-18 Pandora 5.5 £157 £1.774m 4.25%

20 North Street, Chichester Dec-17 Wallis 5 (2) £124.50 £1.96m 4.66%

31-33 East Street, Chichester Nov-17 Gerry Weber & Hotel Chocolat 3 £139 £3.95m 4.70%

18 North Street, Chichester Oct-17 Signet Trading Ltd (t/a H Samuel) 9.5 £130 £2.163m 4.35%

67 East Street, Chichester Sep-17 Phase Eight 3 £180 £2.50m 3.20%

16-17 North Street, Chichester Mar-17 WH Smith 5 £124 £3.82m 4.02%

13 North Street, Chichester Jun-15 Starbucks 6.1 £122.60 £1.65m 4.50%



Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) 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 or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. February 2019.

James ElkingtonTel: 020 7493 3330Mob: 07810 722 459Email: [email protected]

Fred Daeche-MarshallTel: 020 7493 3330Mob: 07785 741 700Email: [email protected]

Jeff EllisTel: 020 7493 3330Mob: 07775 582 719Email: [email protected]

FURTHER INFORMATION Should you require further information or wish to view the property, please contact either:

PROPOSALWe are instructed to seek offers in excess of £1,930,000 (One Million, Nine Hundred and Thirty Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this price would reflect a net initial yield of 6.24% after allowing for purchasers costs of 6.26%.

VATThe property is elected for VAT and will be treated as a TOGC.

EPCA copy of the EPC is available on request.

DATA ROOMThere is a data room for the property with key tenancy information and title documents.

chichester - lewis ellis

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