Nottingham Units 4,5 & 6 Listergate Nottingham
1
Units 4, 5 & 6 Listergate
Prime FREEHOLD RETAIL OPPORTUNITY
Executive Summary ■■ Let to Marks & Spencer Plc, a 5A1 covenant and the UK’s largest clothing retailer. ■■ The property is let for in excess of 10 years expiring 28 September 2020 with a break in 2015. ■■ The property is located on the prime pedestrianised pitch of Listergate, a thoroughfare linking Westfield’s Broadmarsh Shopping Centre to the rest of the City Centre. ■■ Nottingham boasts the UK’s 6th largest retail centre by shopping population. ■■ Freehold. ■■ Total passing rent of £773,000 per annum, which reflects a Zone A of c. £200 psf.
Nottingham
Demographics
Retailing
Recognised as the Capital of the East Midlands, Nottingham is a major commercial centre and University City.
The catchment of Nottingham contains a population of 7.7 million, ranking the City 10th nationally (Source: NSLSP), and attracts a regular shopping population from its catchment of 617,000 ranking it 6th nationally (Source: Promis). The City’s shopping population is forecast to grow by 7.9% over the 2008-2018 period, a total increase in shopping population of over 46,000 people (Source: NSLSP).
Nottingham City Centre is one of the UK’s foremost shopping destinations with an extensive retail provision estimated at 2.9 million sq ft. Retailing is concentrated along a north-south axis, anchored by the Westfield’s Broadmarsh Shopping Centre to the south, running along Listergate, Bridlesmith Gate and Clumber Street, towards CSC’s Victoria Shopping Centre to the north. Nottingham presents A1(M) an attractive retail destination and dominates its catchment LEEDS as a result.
The City is situated approximately 25 km (16 miles) east of Derby, 45 km (25 miles) north of Leicester, 85 km (50 miles) north of Birmingham and 220 km (120 miles) north-west of London. Nottingham benefits from access to an excellent communications infrastructure, situated at the intersection of the A60 and A52, which link directly to the M1 motorway and the national motorway network via Junctions 25 and 26.
The retail pitch extends south into the Broadmarsh Shopping Centre which accommodates Bhs, TK Maxx, Dorothy Perkins and Boots. Westfield and Hermes have plans to redevelop the scheme but their CPO has expired, therefore the scheme is currently under review. Should this development proceed in the long term, it would reinforce the prime pitch.
Further north, the historic tone along Clumber Street reached £260 psf Zone A whileHULL Bridlesmith Gate provides a niche/ M62 Prime pitch within the town is boutique fashion offer with rents having focused along the pedestrianised reached £200 psf Zone A. Additional M180 Listergate and Clumber Street. M58 retailers within the City include GRIMSBY MANCHESTER M62Listergate benefits from a number of John Lewis, House of Fraser, Debenhams, SHEFFIELD high quality MSUs including H&M, LIVERPOOL Topshop, Monsoon and Zara. River Island and New Look confirming M56 its status as the premier retail M1 pitch. LINCOLN M6
Rail services to London St. Pancras are frequent and direct with a fastest journey time of approximately 1 hour 45 minutes. In addition, services are available to a variety of destinations including Derby, Lincoln and Sheffield.
STOKE-ON-TRENT
NOTTINGHAM DERBY M6
M54
LEICESTER
M42
WOLVERHAMPTON
PETERBOROUGH
M69
BIRMINGHAM
A1(M) COVENTRY NORTHAMPTON
WORCHESTER
M40 M5
GLOUCESTER
SWANSEA
M45
BRISTOL
IPSWIC M11
CHELTENHAM
COLCHESTER
LUTON
M25
SWINDON
CARDIFF
CAMBRIDGE
M4
READING
LONDON M26
SOUTHEND-O
ER SOLETRAD
N HU
EET STR SE T REE
EET STR OAD BR
ST RGE GEO
STREE BER CLUM
T FLET CHE RG ATE
NE
LA
1,000
297
5,814
1,282
1,000
320
4,855
ER G A TE
LI S T
CANAL S
T REE T
BUS STATION
T TREE
1,774
1,023.5
M HIGH PAVE
AM S
1,057.5
2,253
CROS S
POPH
2,743
DAY
CLIFF ROAD
HILL
5,388
BROADMARSH CENTRE M ID D L E
587
PILCHER GATE
WE EK
IN N TRAT IO STA
1,000
ATE
T REE
ST ERT
WEAR
1,619
AY NW ARIO ID M MA
OD HEALTH FO TRA BOOK EX BOOKS UME SHOP THE PERF & BEAUTY HEALTH
AR LADIES WE
PILOT
NS CHILDRE
ADAMS
1,196.5
S
ATE EG TL
RG WARSE
Y ST
IA R
ATE ATE MITH G BRIDES
’S G ETER ST P A LB
CA
First Floor Second Floor OVERALL T K MAXX
GA TE
GIFTS
JD
BLUE INC
CAFE
AR MENS WE
& MUFFINS
SHOE CO ORIGINAL SHOES
B BS COFFEE
RKS THE WO BOOKS
K BROAD WAL
PET ERS SHOE REP
ER
LOW PAVEMENT
L ACCESS
LEATH GDS
EL
GATE
NE STO
W HE
GLITZ
ESC
SMITH BRIDE
THE FH MALL
CE ENTRAN
S
LONG ROW
HIGH ST
S PARADE
STORE
XANTHU
ZUMO Y TAKE AWA
EXCHANGE ARCADE
ENT
ONS THORNT BIS CONF &
SERV ICE R OAD
OU SH AS
EET
GL
N STR
LISTERGATE
MILTO
NT LOWER PARLIAME
LONG ROW
SIMPSON STEAD & SHOES
BA LLAN R D HEA RET & LT T THO H SHO P CON RNTON S F& BIS
TION DIVA COLLEC L/WR
*Areas in square feet
LE PETIT NCAIS FOUR FRA CAFE
Marks & Spencer plc
VICTORIA CENTRE
SOCIETY
ODS SPORTS GO
DS S AR T C IF N &G TO S IN RD CL CA IC IN D CL DS AN AL Y O DL GO NT ER UN DE RG LD E PO O U TH L S EH S US TA ES EN HO PR D V GS RS) & EX M IN N AL H RD LOO IA IC IC CO IL F PT PT O O RE TA RE (2
ET RE ST
NS O LS R NE TO CI LI SO
Marks & Spencer plc
EET
E QUAR
RLIAMENT UPPER PA
Unit No Tenant Name Overall ITZA Sales Stock Stock NIA
Unit 6
REET OOD ST S SHERW
ET
LEEDS BUILDING
CR EA M HA IRD RE GA SS ME ING CO MP UT ER O2 GA ME S TEL EP HO NE S HO
ARE
Unit 5
TRE HS
VACANT OTHER BUILDING
R OT ST TALB
ITY S TRIN
FONEHOUS E TELEPHON ES
ENT
SQU Accommodation schedule Ground Floor 2,182
ARE S TREE T
BRADFORD & BINGLEY BANK (2 RET FL RS)
Accommodation scheduleLISTERGATE Marks & Spencer plc
ESPE
HSBC
BERELIX DE CHAINE
Unit 4
SHAK
IT SM LD GO
L/WR&M/WR
PAUL SMITH
ENFIELD CHAMBERS
(2 RET FLRS)
VACANT OTHER BUILDING & UNDER ALTERATION
M S R NEWSGROUP CTN
STATIONER
Occupiers in the immediate vicinity include New Look, H&M, River Island, HSBC, HMV, Topshop and a second Marks & Spencer store on Albert Street to the north. Marks & Spencer have traditionally operated two stores in this location.
The subject property is a well-configured retail unit with a large floorplate, having originally consisted of three smaller retail units, and trades over ground and first floors. The property is wholly let to Marks & Spencer Plc. Additional storage and staff facilities are located on the second floor. The property is serviced via a shared service yard to the rear.
BANK
JONES ERNEST R JEWELLE
T E CHEMIS BOOTS TH
PAPERCHASE
E@ME SANDWICH BAR
GAME
COMPUTER GAMES (2 RETAIL FLO ORS)
The subject property occupies a central and prominent position on the City’s prime pedestrianed pitch, Listergate, and close to the entrance to Westfield’s Broadmarsh Shopping Centre. Listergate also provides the main thoroughfare from the Broadmarsh scheme and the City’s bus and railway stations into the City Centre.
T
CHID
OFFICE
ORANGE TELEPHONES (2 RET FLRS)
IL BERTORELLI
LL HA G IN SS RE IRD HA
ITH KE
N DO UR NB HE EP ST LIC SO
BAKER
THE SLUG & LETTUCE BAR & REST
GREGGS
ITALIAN RESTAURANT
STR
VACANT OUTLET & UNDER ALTERATION
S VER WEA LIC OFF
EET
BANK
LOW PAVEMENT
H JE SA W MU EL E LE L R
SU ITS ME YO NS U W EA R
RD
NS O R LS TO NE CI LI SO
FICE
LLOYDS TSB
ON PH LE TE
LTD
FO AN ST
E FIC OF
(4 RETAIL FLOORS)
Y Y OD EAUT EB B TH H & E T BIL AL O E H ES TM
MP RA
L S NE K H SON R PE P AGY EM
VARIETY STORE
EET ST R
HO
IP SH OR
OR PRETTY REST THAI
MARKS & SPENCER
STRE
EE TR NS DO G N TI
PEPPER
WEEKDA Y CRO SS
ERT ALB
TIT PE LE UR IS FO ANCA FR E F CA
LAT CO Y HO NER S IT L C IO TE CT CU HO ONFE & BIS IZE C OR SS CESS E C AC L AC 4U ES S ON NE PH PHO E E L TE OR T 3 S NES HO NE P O LE PH SE TE AR OU S
OR
E FIC OF
E FIC OF
E
AT LE G E FIC OF
C
EN OW S OK EY SL BO WE TIAN PA ILS N RIS NASALO CH T EN TY AU BE IR HA KS JAC ING SS RE IRD HA
NT ME UIT CR CY RE EN AG INE FL NT AF ME
GS DW
AST
NE FO DA ES VO ON PH E L TE
CLOTH
E C EH NE TH WAR PHO OP LE TE SH
W OF CE PLA
Description
DIES
S ER ING PP SS PE RE IRD HA ES T
ON PT AM HH MIT S T ICE FF ER MB &O LA OR EY V R SU
S MF N S OW CO SHIO CR FA HE ET R NS ON ST ERIO ATIO INT COR DE
UN
HO
TE GA
ILL MH LIA WIL OFF T BE
C VA
AY BW R SU BA S/W
DS
Situation
S OE SH
AR CL
FR
V HE IT - A ALT HF TRA ILF IND TR ER A AG VE ENT
NO RT HA ME RIC A
E ID BR X R TE EA ER W RK AL BE RID B KS
C AN
T AL S
REET
E NT
Tenancy
Tenant’s Covenant
The property is let to Marks & Spencer plc expiring 29 September 2020 off a current passing rent of £773,000 per annum.
The property is let to Marks & Spencer Plc; a British institution with over 560 stores across the UK, and an additional 150 stores worldwide operating in 30 countries, who have been operating for over 125 years. Marks & Spencer has the top Experian Delphi Score of 100 out of 100 and a Dun & Bradstreet covenant strength of 5A1, which represents the minimum risk of business failure. The retailer has a UK market share in excess of 10% for clothing, home and 4% of food sales. (Source: Fashion Trak; TNS worldpanel)
For the purposes of review, it is assumed that the principal rent will be the aggregate at which each of Unit 4, Unit 5 and Unit 6 might reasonably be expected to be let as separate units in the open market; the review being 29 September 2015. In addition, the Tenant may end this Lease between 31 January 2015 and 31 January 2016 by giving at least six months’ written notice to expire between 31 January 2015 and 31 January 2016. We have analysed the passing rent to show £200 psf Zone A having applied a rate of A/14 to ground floor ancillary, A/12 to first floor sales, A/20 to first floor ancillary and A/40 to second floor ancillary.
The property is held freehold.
VAT The purchase of the property will be subject to VAT.
Proposition
Fiscal Consolidated GBP 28 Mar 2009 (000’s)
Fiscal Consolidated GBP 28 Mar 2008 (000’s)
Fiscal Consolidated GBP 28 Mar 2007 (000’s)
Sales Turnover
9,062,100
9,022,000
8,588,100
Profit / (Loss) before Taxes
706,200
1,129,000
936,900
Tangible Net Worth
1,681,400
4,296,600
3,542,400
(Source: Dun & Bradstreet)
Tenure
Offers are sought in excess of £12,200,000, exclusive of VAT and subject to contract. A purchase at this level would reflect an initial yield of 6.00% assuming full costs.
Disclaimer: CB Richard Ellis 2010 CB Richard Ellis on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of CB Richard Ellis has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all priced and rents are quoted exclusive of VAT.
Nottingham | Units 4, 5 & 6 Listergate | February 2010 | Ref: 106159