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  • 126/130 HIGH STREET, WATFORD

    PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    http://www.jacksoncriss.co.uk/http://www.jacksoncriss.co.uk/

  • INVESTMENT SUMMARY

    Watford is a dominant retail centre situated 19 miles north west of central London, within the M25.

    Significant over-representation of the AB and C1 social groupings.

    100% prime freehold High Street retail investment.

    Directly opposite the entrance to the JLP anchored INTU Watford Shopping centre. INTUs retail and leisure extension will be anchored by Debenhams and IMAX Cineworld and will make Watford a top 20 retail and leisure destination.

    Let to undoubted covenant of McDonalds with just under 9 years remaining on the lease. The tenant has an Experian credit score of 100/100.

    Passing rent of 197,000 per annum recently settled at rent review reflecting an increase of approximately 9.45%.

    Excellent rental prospects moving forward.

    Potential to convert upper floors to residential use subject to planning.

    We are instructed to seek offers in excess of 3,100,000 (Three Million, One Hundred Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.96%, after allowing for purchasers costs of 6.46%.

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • LOCATION

    Watford is an affluent and popular retail and commercial centre in the borough of Hertfordshire situated 17 miles (11.3km) northwest of central London and inside the M25 motorway.

    Watford benefits from excellent motorway transportation links and is strategically located with Junction 19 of the M25, 4 miles (6.4km) to the north west and Junction 5 of the M1 2 miles (3.2km) to the north east.

    Watford is also serviced by three mainline stations and benefits from regular train services into London Euston with a fastest time of just

    16 minutes. London underground services are provided from Watford tube station on the Metropolitan line. There are proposals to re-route and extend the Metropolitan line to Watford Junction.

    Watford offers an excellent choice for air travel with Luton Airport 17 miles (27.4km) to the north, and a 25 minute drive from the town centre. Heathrow Airport is located 22 miles (35.4km) to the south, Gatwick Airport 60 miles (96.6km) to the south and Stansted Airport is 45 miles (72.4km) to the north east.

    DEMOGRAPHIC PROFILE

    The total population within the Watford primary catchment area is 635,000, similar to the Regional Centre average and ranking the town 24 out of the PROMIS Centres. The town is projected to see above average growth in population over the period 2016-21.

    The estimated shopping population of Watford is 336,000, ranking the town 27 of the PROMIS centres, which reflects Watfords dominance and retail status since the development of Intu Watford in the late 1980s. The Watford catchment population is moderately affluent and contains a significant over

    representation of the AB and C1 social groupings. As a result the per capita retail spending levels are higher than the national average. (CACI)

    Watford has a strong economic profile and is a major employment hub especially for retail, finance and professional/business services. The service sector as a whole accounts for 81% of total employment, significantly above the Retail PROMIS average. Employers include Watford Borough Council, Watford NHS, Hilton Worldwide, JD Wetherspoon, Camelot Group, Iveco, TK Maxx, Costco, Total Oil, Sanya and Beko.

    WATFORD

    RICKMANSWORTH

    CHORLEYWOOD

    MAPLECROSS

    GERRARDSCROSS

    POTTERSBAR

    BOREHAMWOOD BARNET

    EAST BARNET

    EDGEWARE

    HARROWRUISLIP

    STANMORE

    WATFORD

    RICKMANSWORTH

    CHORLEYWOOD

    MAPLECROSS

    GERRARDSCROSS

    POTTERSBAR

    BOREHAMWOOD BARNET

    EAST BARNET

    EDGEWARE

    HARROWRUISLIP

    STANMORE

    M25

    M25

    M25

    M25

    M25

    M1

    M1

    M1

    M1A1(M)

    A41

    A41

    A1

    A1

    A413

    Per capita retail spending levels higher than the national average

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • RETAILING IN WATFORD

    Watford is one of the premier regional retail centres in the UK. The prime retailing in Watford is centred on the John Lewis and Marks & Spencer anchored INTU Watford shopping centre. The Prime pitch extends onto the pedestrianised High Street, where a number of national multiple retailers are represented including Superdrug, Wilkos and GAP. Sports Direct/Flannels will be occupying the former BHS store.

    The town centre retail floor space in Watford is estimated at 1.37 million sq ft, ranking the town 46 of the PROMIS Centres on this measure. Watford ranks 38 on the basis of its PMA Non-Food Retail Score, 42 on the PMA Fashion Score and ranks 38 on the PMA Anchor Score. Watford has a significantly below average volume and quality of retail provision relative to the size and affluence of the shopping population (PROMIS, 2017).

    Intu Properties and the Watford B.C are currently redeveloping the former Charter Place Shopping centre which will be integrated with Intu Watford. The extension is set to create a single 1.4 million sq ft retail and leisure destination, placing Watford in CACIs top 20 national retail destinations ranking, alongside Edinburgh and Bristol. This extension to Intu Watford is expected to provide a major boost to the town and help retain spending on its completion in autumn 2018. Debenhams has agreed to anchor the scheme, along with a nine screen IMAX Cineworld cinema.

    SITUATION

    The subject property is situated in a highly prominent prime corner trading location on the pedestrianised High Street, adjacent to Waterstones, opposite Primark and the main entrance to the INTU Watford Shopping centre.

    Significant over representation of the ABC1 social groupings

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • TO B

    ESP

    ORTS

    DIR

    ECT

    NORTH

    For Identification purposes only

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • DESCRIPTION

    The premises comprise a substantial corner property arranged over ground and two upper floors, with significant frontages along both the High Street and King Street

    McDonalds currently trade from ground and first floor, with additional ancillary accommodation on first and second floor. The unit benefits from rear servicing via King Street.

    ACCOMMODATION

    The property comprises the following approximate floor areas:

    Accommodation Area (sq ft) Area (sq m)

    Ground Floor Sales 3,600 332.44

    Ground Floor Storage 84 7.80

    Ground Floor ITZA 1,552 units 144.18

    First Floor Sales 2,232 207.35

    First Floor Ancillary 1,196 111.11

    Second Floor Ancillary 365 33.91

    Total Floor Area 7,477 694.61

    TENURE

    The property is held freehold.

    TENANCY

    The property is let to McDonalds Real Estate LLP, on a 15 year Full Repairing and Insuring lease from 24th June 2011, at a current rent of 197,000 per annum exclusive.

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • COVENANT

    McDonalds is an American fast food restaurant chain established in 1940. Today, McDonalds is the worlds largest restaurant chain, serving approximately 68 million customers daily in 120 countries across approximately 36,900 outlets.

    The summary accounts information can be set out as follows, demonstrating the financial strength of the tenant and their credit score of 100/100.

    McDonalds Real Estate LLP

    31/12/2015

    GBP

    31/12/2014

    GBP

    31/12/2013

    GBP

    Experian Credit Score out of 100

    Turnover 89,566,000 87,383,000 87,333,000

    100Pre-Tax Profit 304,122,000 48,958,000 37,871,000

    Net Worth 109,269,000 302,087,000 253,129,000

    RENTAL VALUE

    The rent passing of 197,000 p.a, has recently been settled with effect from 24th June 2016 reflecting a Zone A rent of 105.60 per sq ft and a rental increase since 2011 of approximately 9.45%. This is also in line with the adjacent unit (122 High Street) which was let to Waterstones in July 2016 for 75,000 p.a reflecting a Zone A rent of 105 per sq ft.

    VAT

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

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • EPC

    An EPC for the property can be provided upon request.

    PROPOSAL

    We are instructed to seek offers in excess of 3,100,000 (Three Million, One Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 5.96% after allowing for purchasers cost of 6.46%.

    The most salient comparable investment evidence is as follows:

    107 High Street, Watford (Bills)

    Freehold investment is held on the remainder of a 22 year lease, subject to 5 yearly compounded RPI rent reviews, based on a cap and collar of 1% and 4%. The property has exchanged at a price of 2.45m, reflecting a net initial yield of 4.60%.

    103/105 High Street, Bromley

    Freehold retail investment let to the Gap on a lease to expire December 2023 with a tenant break clause in December 2019, sold in May 2017 for 2.775m, which reflected a net initial yield of 5.76%.

    82/84 St Anns Road, Harrow

    Freehold block of two shops with offices above, let to Carphone Warehouse and Mothercare with an AWULT of 2.62 years to break and 4.03 years to expiry. The property was sold in April 2016 for 4.66m, reflecting a net initial yield of 5.75%.

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.jacksoncriss.co.uk/

  • 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. JC0109. July 2017.DE

    SIG

    NE

    D B

    Y T

    CC

    For further information, please contact the sale agents, Jackson Criss:

    Philip Hay

    020 7637 7100phay@jacksoncriss.co.uk

    Brook Wannop

    020 7637 7100brookw@jacksoncriss.co.uk

    | home | investment summary | location | demographics | retailing | situation | goad | description| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact

    WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY

    http://www.tccommunications.co.uk/http://www.jacksoncriss.co.uk/