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SOUTHAMPTONDebenhams, Queensway, Southampton, SO14 1NH
LONG INCOME DEPARTMENT STORE
FREEHOLD INVESTMENT FOR SALE
285,000 SQ FT DEPARTMENT STORE
17 YEARS UNEXPIRED
2.5% FIXED UPLIFTS
PROMINENT ISLAND SITE
PROSPEROUS SOUTH COAST CITY
1,823,860 PER ANNUM
SIGNIFICANT ASSET MANAGEMENT & DEVELOPMENT OPPORTUNITIES
Southampton, SO14 1NH
OFFERS IN EXCESS OF
31,250,000(Thirty One Million Two Hundred and Fifty Thousand Pounds)
exclusive of VAT, subject to contract.
Reflecting an attractive Net Initial Yield of 5.47% with a Nominal Equivalent Yield of 6.62% and a Reversionary Yield (2029) of 7.39% assuming full
purchasers costs of 6.77%
ISLE OF WIGHT
It benefits from excellent communications by road, rail, air and sea. The city is situated at the junction of the M3 and M27 motorways. The M3 leads north to London, whilst the M27 is on the main east/west coastal route to Portsmouth, Bournemouth and beyond. Around 96 daily direct rail services run from the citys mainline railway station (Southampton Central) to London Waterloo with a journey time from only 1 hr 15 mins.
Southampton International Airport is situated 7 miles north east of the city centre, adjacent to junction 5 of the M27. It provides flights to more than 40 European destinations and has a throughput of around 1.8 million passengers a year.
Southampton is one of the UKs busiest passenger and freight ports. It has facilities to handle virtually all types of cargo and its deep-water port and unique double tide allow unrestricted access for the worlds largest freight and passenger vessels.
The port handles in excess of 42 million tonnes of cargo annually, accounting for around 7% of the UKs annual seaborne trade and is the UKs main gateway for Far East imports. It is a major car handling port and is home to the UKs second largest container terminal. The port is also widely recognised as the capital of the UKs expanding cruise liner industry and now has 4 cruise terminals.
Southampton is a prosperous south coast city located within the county of Hampshire, approximately 76 miles south west of London.
Southampton, SO14 1NH
SOUTHAMPTON BENEFITS FROM A PROSPEROUS,
1.8 MILLION TRAVEL THROUGH
THE AIRPORT EVERY YEAR
SOUTHAMPTON HAS A DIVERSE AND VIBRANT
Southampton is one of the largest cities in the South East and is among the UKs top 25 towns and cities with a resident population of some 237,000. It is ranked 18th out of the PROMIS centres and has a primary catchment estimated at around 720,000 people and a shopping population of some 433,000.
Southampton benefits from a prosperous, youthful population. 10% of the citys population is aged between 20 and 24 (UK aver/age 6.6%). This youthful profile is due to the city being home to two major universities. The University of Southampton and Southampton Solent University together have a student population of around 40,000. The former is one of the top 10 research-led universities in the UK.
Whereas once the city was heavily dependent upon its port and manufacturing industries, today it has a diverse and vibrant local economy. It is estimated that there are now some 7,700 businesses operating in the city, providing employment for around 117,000 people. The most significant sectors in terms of number of employees are distribution, tourism, banking and finance related industries.
Tourism also contributes significantly to Southamptons economy with around 1 million passengers travelling through the port and 1.8 million through the airport annually. Southampton Football Club gained promotion to the Premier League in 2012 and their St Marys Stadium is located in the city centre.
DEMOGRAPHICS Southampton, SO14 1NH
SOUTHAMPTON IS RANKED 18TH
OUT OF THE PROMIS CENTRES
SOUTHAMPTON UNIVERSITY IS ONE
OF THE TOP 10 RESEARCH-LED UNIVERSITIES
IN THE UK.
Southampton, SO14 1NH
Southampton is classed by PMA as a Regional Centre providing approximately 2.18 million sq ft of retail accommodation. This ranks it 12th in PROMIS regional centres by this measure.
West Quay, which opened in 2000, is the citys dominant shopping centre. It comprises around 100 shops anchored by John Lewis and Marks & Spencer. Southamptons prime shopping circuit centres on West Quay and the pedestrianised part of Above Bar Street along which the likes of Boots, Bhs, Primark, WH Smith, TopShop and TK Maxx are located.
A secondary shopping centre, (The Marlands) is located off the non pedestrianised section of Above Bar
Street and its tenants include include Poundland, Poundworld, Peackocks and Savers.
The city has two major department stores: John Lewis in West Quay and Debenhams in the subject property. There are over 40 car parks around the city centre providing around 10,000 car parking spaces.
THE CITY HAS TWO MAJOR DEPARTMENT STORES: JOHN LEWIS IN WEST QUAY AND DEBENHAMS IN THE SUBJECT PROPERTY
Bargate Quarter Redevelopment
The East Street Precinct redevelopment
The property is located in the south eastern section of the citys central shopping area and it sits between two substantial regeneration projects.
NEIGHBOURING REGENERATION PROJECTS
Southampton, SO14 1NH
It occupies a prominent, virtual island site bounded by East Street, Queensway and Houndwell Place, overlooking the southern edge of Hoglands Park. The propertys considerable size affords it landmark status and it dominates this part of the city centre, being highly visible from its three long road frontages.
This is a secondary shopping location, a short walk down East Street from the prime shopping circuit. East Street is a busy secondary street where there are a good range of speciality shops such as Warhammer, Ponden Home, Met Rx, Holland & Barrett and sk:n located.
The now defunct Bargate Shopping Centre sits behind the East Street frontages, directly west of the subject property. The Bargate Centre was purchased last year by Tellon Capital. Tellon are proposing a comprehensive redevelopment of the site.
They conducted a public exhibition earlier this year and are anticipated to submit a full planning application by the end of the year.
They are envisaging a single level high end retail and leisure scheme that will open up the historic city wall (currently largely hidden from view). The subject property will effectively anchor the eastern end of this new thoroughfare.
Directly east of the subject property sits the site of the former East Street Shopping Precinct. This site is currently being redeveloped by Kier Property into a mixed use development comprising a food supermarket and 156 student flats. Kier will retain and refurbish the existing 12 storey tower that sits on the site.
Indicative site boundaries only
DESCRIPTION Southampton, SO14 1NH
The property was built in 1959 and comprises a substantial purpose built department store occupying a site of approximately 2.523 acres. The accommodation totals some 285,300sq ft which makes this the largest department store on the south coast.
The property has been measured on a GIA basis as follows:
Description Sq Ft Sq M
Basement Ancillary 46,424 4,312.9
Ground Floors Sales and Loading 108,045 10,037.6
First Floor Sales 50,960 4,734.3
First Floor Mezzanine 9,601 892.0
Second Floor Sales 50,850 4,724.1
Second Floor Mezzanine 9,735 904.4
Third Floor Mezzanine 9,689 900.1
TOTAL 285,303 26,505.4
TENANCY The property is let in its entirety to Debenhams Retail Plc for a term of 30 years expiring 24th March 2034 on full repairing and insuring terms (approximately 17.6 years unexpired). Upon expiry, the tenant has the right to renew for another 25 years. The current rent is 1,823,860 per annum exclusive, reflecting 6.39 psf GIA overall.
The rent is subject to annual fixed uplifts of 2.50% per annum from March 2017 until March 2019. There are then 5 yearly rent reviews which are upward only to the higher of Market Rent or 2.50% fixed uplifts.
The building is arranged over basement, lower ground, ground, first and second floors. First and second floors provide approximately half cover; the rear of the building being single storey. The lower ground, ground, first and second floors of the property are mainly used for the purposes of retail sales. The third floor is used for storage and staff purposes.
The building is of a concrete encased steel frame construction. The main roof is flat with an asphalt finish. The roof over the rear single storey section is of a northern light construction with profile sheeting.
Floors are mainly insitu concrete with the exception of the upper floors on the Queensway frontage which are of suspended timber.
The main customer entrance to the store is off the Houndwell Place roundabou