Portsmouth

Page 1

Prime Freehold Retail Investment

Portsmouth 186 –188 Commercial Road PO11EX


Portsmouth

186 –188 Commercial Road PO1 1EX Prime Freehold Retail Investment

Executive Summary ■■ 100% prime location opposite the entrance to Cascades Shopping Centre

to London, 100 miles to the north. Gatwick airport is 70 miles by car. Commercial ferries provide regular services to France, Spain and the Isle of Wight.

■■ Lease expiry – 19th November 2016 (8 years unexpired)

Situation

■■ Excellent covenant – Wallis Retail Properties Ltd guaranteed by Redcastle Ltd (D&B 5A1)

The property is well located in 100% prime pitch: the section of Commercial Road between Arundel Street and Crasswell Street. Retailers here include Marks & Spencer, Boots, H&M, Primark and Woolworths. The main entrance to the Cascades Shopping Centre is directly opposite the property. Debenhams are located further south on Commercial Road and Bhs are located to the rear of the Cascades Shopping Centre. Tesco have a large store along with a 900 space multi-storey car park behind the subject property.

■■ Reversionary – Current rent £160,000 reflects £183 ITZA (Feb 2007 review). ERV is £175,000 reflecting £200 ITZA ■■ Potential for further uplift from uppers which devalue at £1.66 psf ■■ Freehold ■■ Well configured shop ■■ Major city centre location with low unemployment

Description

■■ Asking price – £2,521,000 reflecting 6% net initial yield and 6.45% equivalent

The property is a late 20th century mid-terrace building comprising a well configured shop trading at ground floor only. There is a three bed flat over first and second floors with separate access from the rear which is currently used by the shop tenant as storage. Servicing is from the rear, off Paradise Street.

Location

Tenure

Portsmouth is a major commercial and naval port located on the south coast of England. The urban population is approximately 187,000. The city is currently positioned 76th in Javelin Group UK retail rankings. Main employers include the VT Group Naval Dockyards, IBM European HQ, Zurich and the passenger ferry services to France, Spain and Isle of Wight. Unemployment is lower than the national average and currently stands at 1.6% compared to 2.2% nationally.

Freehold

■■ Potential opening of John Lewis anchored Northern Quarter will strengthen city and this pitch

Portsmouth benefits from excellent communications. The city has frequent rail services to London Waterloo and London Victoria with shortest travel times of 1hr 32 mins and 2 hours respectively. It is well served by the road network: the M27 links the city to Southampton, Southampton Airport and the M3, 20 miles to the west; the A27 links the city to Brighton, 50 miles to the east. The A3 (M) runs north from Portsmouth and provides a direct link

Tenancy The property is occupied by Wallis Retail Properties Ltd on assignment from Sears Clothing Ltd (now known as AG Clothing Ltd). Sears took a lease for a term of 20 years from 20th November 1996 expiring 19th November 2016 i.e. Eight years unexpired. Sears Clothing Ltd assigned the lease on 23rd October 2003 to Wallis Retail Properties Ltd who are guaranteed by Redcastle Ltd. Current rent is £160,000 which was settled at the 1st February 2007 rent review. The lease is Full Repairing and Insuring. Rent reviews are five yearly, the next being 1st February 2012.


100% prime location opposite the entrance to Cascades Shopping Centre

Areas

Retail plan showing proposed Northern Quarter Development – for indicative purposes only

We understand from the vendors that the property provides the following accommodation. Ground Floor Itza*

et

tre ws

John Lewis

Ne

2

25 4

2

207 - 211

-2 52

25 0

24 8D

24 8C

ST OR E

T

EE

ES

DIS

RA

LA BONN E BAGU ETTE BAKER

PA

OGG Y OGG Y PASTY CO T/A

T-SHIRT PRINT TSHIRT &PRINTG

TIMP SHOESON REP

TR

■■ 2,300 parking spaces

■■ a four-star 150-bed hotel TESC

SUPE RMAR

O

&

& EN T

T

15 4

BUCK

INGHAM

STREE

NATIO NAL CA R PA MULTI R -STOR (903) (ACTU EY AL) OVER

T

ENTR ANCE

ENT

15 2

ENT

GOOD S

CLOSED

41

42 - 45

50 - 52

43 - 45

54

PR BRIDA ONUPTIA CLOTHL WEAR & ING HIR E ENTR ANCE

36 - 40

BANK

34

HIGHBU PORTS RY COLLEG MO E EDUCAT UTH IONAL ESTABL ISHMEN T

EN D O

N PLA 39

CLAR

37 -

RANSTA D

35

EMP AGY

33

CO-OP

32

LADBRO BETTIN KES G OFF ICE VACANT OUTLE T

31

VACA NT OU TLET

30

TROT TERS REST AURA NT

29

28

BUCKI NGHAM

CE

EHOL D ENTR ANCE

27

WORK SHOP TOYS & GA MES

BHF

25

GAME S

26

CHAR SH

GAME STATIO N COMP GAM E

24

23

ENTR ANCE

T LOWER

CHU R

T

TREE

21

HOUS

WILK INSON

ON S

19

U-NEE D-US NOVE LTY GO ODS VACA NT OU TLET

20 - 22

17

EET

FURN &

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18

DAMA CLOT RT HING

OPTIC EXPRESAL OPTICIA S N

16

SUPE RDRU G HEALT H & BE AUTY

12 - 14

VAC

15

ENT

13

BRIGH THOU ELEC SE /GAS APPS

11 -

JESSO PHOTOPS GOOD S REGE NCY AMUS LEI EMEN SURE TS YMC CHAR A SH L C TO YS TOYS & GA MES VAC

VACA NT OU TLET CLAR KS SHOE S

OFFI EMPLCE AN AGEN OYM GELS CY ENT

9

ARUN DEL STR

BON MARC HE LADIE S WE AR

OORS )

5

Northern Quarter – a new shopping centre is proposed for central Portsmouth. It is to be located at the north end of Commercial Road comprising 900,000 sq ft to include:

■■ 200 residential apartments

STO

15 0

ORE

3

Future retail development in Portsmouth

NCP (74) (ACTUAL)

CH EM IS T

-1

15 6

24 6

24 0

23 4-

-2 18

13

O O R S)

16 0

43 -1 13 7

35

-1 12 9

DEB ENH A MS

1 ON LY)

500 sq ft

■■ a 130,000 sq ft Marks and Spencer store and 80 shops

21 6

11

8

(PED ESTR IANS

Second floor

22

NL Y)

02 22

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FL

TH E

700 sq ft

23 2

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15 8

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21 4

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18 6

203

G&S JEWELLER

EDEN STR EET

FAGINS CAFE & ICE CREAM PARLOUR

VACANT OUTL ET

LADIES WEAR

SIMPLY LEATHER LEATHER GOODS

RT VIEW LANDPO

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Crass

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(PE DE ST RIA NS ON LY )

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ST O

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First floor

■■ a 230,000 sq ft John Lewis department store (on Commercial Road)

14 6

119

SA L

RC UTS HA IR

NA ILS

JUST

BE AU

SU PE

T EE

OU SAF TD OO AR RW I EAR

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43

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NT HOUSE AIN ST R

D O & PT A IC KIN PH IA N TE ONE GS LE PH S 4 U WE ON LL ES

117

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42

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TR M AV SO EL N A

2,389 sq ft

* Area agreed at last review

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24

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S ED ES TR HO X S BO ER Y N ER IO N AT IO ST AT ST

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ACK S SH WEAR MACK OOR OUTD

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(2

25

27

29

37

2

4-6

) ONLY

GE SP NT OR TS SP W OR OR TS LD GO OD M S OT HE CH RC IL AR DR NU E EN H RS O S M ER W E G EA Y H STY GO R TR OIN O & OD R O G LE AV G P J O W D HO EL LA S M MIC EW BIN EN S LL EN C EL SO & A H GE ES EA AN S HA LE N W EL R NT D LT EA S & H V R IR FO BA R G RR O (2 EC IN D E TT RE OR ME VO TA DIN GA TE DA IL G S LE FO FL S TO P B N RE O S RIT HO E O RS ST USS ISH NES ) AT E B G IO X S OO A NE TA K CO ME SH T R IO M O & PU BO NE PS JD TE O RS KS R SP SP G O O AM RT RT BR S ES EN OO S K T GO TO STR O EM E R DS P ET AG L IVE Y M ADIE R EN S IS S & LAN W D O EA 2 R TE LE PH O NE S TO BE NATIO NWIDE (2 RE TAIL FLOOR S)

19

ST R

Ca

GOLDSMITHS JEWELLER

THE BODY SHOP HEALTH & BEAUTY

AIR

G

R WE

M

26

W A JE RR W EN EL J LE AM R ES

TO N I&

B RE

SOLETRADER

ENVY

SHOES

TRAVEL AGENT

THOMAS COOK

SHOES

PORTSMOUTH F.C

GAME COMPUTER GAMES

FAITH

27

ST R

H BUTC MR HER BUTC

2

VACANT OUTLET

SHOES

BARRATTS

28

TTE

ENTRANCE

1

3

4

5 29

30

MENS WEAR

CARDS & GIFTS

CLINTON CARDS

BAY TRADING COMPANY

OPTICIAN

LADIES WEAR

VISION EXPRESS

EARLY LEARNING CENTRE TOYS & GAMES

VACANT

7

8

9

10

R LO

31 -

BYS ROSE S SOFT ISHING FURN

CH A

EET 39

8

10

18

G LIN FIL THE ION T/A STAT

tte Stre et

STREET MARKET

31

12 -

NT VACA ET TL OU

ed Cha rlo

MR HOUS CHEAP EHOL GOOD D S

LA

6

4 EN T

BA BA KE KE RS LA OV EN DB R T RO

F

Realign

TOBY STREET

SPECS AVERS OPTIC IANS OPTIC IAN

Y) ONL

WS NE ON NT LC GE FA SA W NE

S

E

ES (BUS

K

CA

D CA

RGOS EXT RA CATALO GUE SHO WROOM

FIC OF

Marks &OACH PR Spencer AP

Ground Floor total

863 sq ft Itza

■■ 72,000 sq ft of leisure facilities ■■ Proposed opening 2012 John Lewis will provide a considerable boost to the retailing in the town, increasing shopper numbers substantially and drawing further from the wealthy surrounding catchment. Javelin estimate that following the opening of the Northern Quarter, the city will rise from 76th place to be ranked 27th in the UK’s town centre retail hierarchy. Given the scale of this development, and its proximity to the subject property, prospects for rental growth here are good. here are good.

VAT The property has been elected for VAT and therefore any sale will be treated as a transfer of a going concern.


20

SA N

24 4

24 2

19 9

24 0

19 7

23 8

19 5

23 6

19 3

23 4-

19 1

23 2

-2 24

22 8

-1 89

02 22

22

NL Y)

-2 18

ST OR E

21 6

T

EE

DIS

RA

LA BO NNE BAGU ETTE BAKER

OGGY OGGY PAST T/A Y CO

T-SHIR PRINT T TSHIRT &PRINT G

PA

The property is located in 100% prime pitch. The rental tone here has been £183 ITZA for some time and this has largely been due to the scarcity of open market lettings to prove any higher rental level. Only three open market lettings have taken place in the last four years. The pitch is now overdue for rental growth. The latest letting supports this: Nationwide recently took a new lease on 208-212 Commercial Road SUPE RMAR at a rent equating to £208.50 ITZA.

16 0

STO

15 8 15 6

15 4

Rental commentary

TESC O

-1

62

ES

TR

20 8

-2 12

17 5

21 4

-1 77

(P ED ES TR IA NS

17 9

O

18

Co m

13

O O R S)

&

We are therefore of the view that this property has an ERV of £200 NATIO NAL CA R to PAR £175,000 pa. ITZA equating MULT I-STO

& EN T

INGHA

M S TR

EET

ENTR ANCE

ENT

15 2

15 0

8

ENT

14

Terms

RE (903) (ACTU Y AL) OVER

We are instructed to seek offers for the freehold interest in excess of £2,521,000 (Two million five hundred and twenty one thousand pounds) subject to contract. A purchase at this level reflects a net initial yield of 6.00%, an equivalent yield of 6.45%, and a reversionary yield of 6.56%, after allowing for purchasers’ costs at 5.7625%.

OOD S

FICE

Julian Norbury jpn@cwm.co.uk Telephone: 020 7758 9884

U RCH

PATH

50 - 52

EMP AGY

RANS TAD

EN D O CLA R CLOSE D

HIGHBU PORT RY COLLEG SMOU E TH EDUC ATIONA L ESTA BLISHM ENT

16 Old Bond Street, London W1S 4PS Telephone: 020 7493 5655 Facsimile: 020 7493 5665

John Miles jhm@cwm.co.uk Telephone: 020 7758 9882

41 Misrepresentation Act: 43 - 45 CWM & Partners LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 54 T 1. hese particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. A ll descriptions, dimensions, reference to condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant 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. N o person in the employment of CWM & Partners LLP has any authority to make or give any representations or warranty in relation to these properties.

RK S TRE ET

POST OF

Contacts:

N PLA 42 - 4 5

T

PO

ET

TROTT ERS REST AURAN T

36 - 40

ING

CWM LondonHAM

ENTR ANCE

AMES WORK SHOP TOYS & GA MES

34

37 39

BANK

32

35

CO-O P

30

33

VACA NT O UTLE T

28

31

LADB ROKE BETT S ING OF FICE VACA NT OU TLET

29

B UCK

CE

HOUS E ENTR ANCE

27

PR BRID ONUPTIA AL CLOTH WEAR & ING HI RE

T R EE

26

Further Information

ENTR ANCE

ON S

24

HOLD G

N INSO WILK 20 - 22

25

CHAR

18

23

EET

GAM E ST ATIO N COMP GAM E

OPTIC EXPR AL OPTI ESS CIAN

16

21

BHF

12 - 14

19

U-NEE D-US NOVE LTY G OOD S VACA NT O UTLE T G

ARUN DEL STR

17

VAC

15

ENT

11 13

JESS O PHOTOPS GOO DS REGEN CY AMU SEME LEISURE NTS YMC CHA A R SH LC YS TOYTO S&G AMES VAC

VACA NT O UTLET

9

CLAR KS SHO ES

OFF EMP ICE AN AGE LOYM GELS NCY ENT

5

DAM CLOTH ART ING

FLOO RS)

3

BON MAR CHE LAD IES W EAR

EN T

ORE

1

L OW E R CH

THE SURR E PUBLI Y ARMS C HO USE

Y ST R E

FL

The guarantors, Redcastle Ltd, are classified by Dun & Bradstreet as 5A1. For year ending 31st August 2006 they reported a turnover of NCP (74) (ACTUAL) £256,330,000; shareholders funds of £334,488,000; and profits after tax of £7,820,000.

CH EM IS T

SH BRIG FURN & ELE HTHOUSE C/GAS APPS

130

12 2

0

WOO LWIC

1-7

SURRE

L

TH E

11

B UC K

YA P T

12 BAN K

CLO SED

14

103

101

116 - 11 8

105

COM MER CIAL ROA D

105A

BC

ET AI

TS

9

RE TA Q U IL SH BE FL O O O ES RS W ) H

WES T

BEN JYS SAN DW ICH GRE BAR GGS BAK ER

HS

R

N ES

SUPE RDRUG HEAL TH & BEAU TY

-1

105B

Y

K

W A LA LL IS D IE S W N EW EA R LO LA O D K IE S VA W CA EA (2 NT R

Wallis Retail Properties Ltd is part of Arcadia Group Ltd and is a well known high street brand owned by Philip Green. Dun & Bradstreet list their tangible net worth at £4.065m and net assets at £3.466m. The D&B rating is 2A2.

14 4

42

DEB ENH A MS

32

5C 10

BAN

MAN DING CIETY

VER

NAT

3 TE LE PH O

m

14 9

-1 47

14 5

43 -1

12 9

12 1-

(PE DES TRIA NS ON LY)

(3 RE TAIL

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19 2

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10 9

10 7

BA RC LAY SB AN K

73

re

treet

NE SM W IT S H R ET AG EN TO AI T LA P L F S (2 DI H LO & B O R ES OP O ET W RS OK TH S AI E ) E L AR C TE FL LE AR O O PH PH PR R O S) O N SH ICE N E ES L O W ES ES AR S EH R EP O U UB SE LA LI C D IE S & BU M EN & RT S O TO W N EA M (2 PM EN R R ET AN S W AI M EA L FL EN R O SW O R S) EAR

11 1

L/W M R & IRAG CU M/W E RR HO R YS ME .DIG EN TE ITA RT L AIN ME NT

well S

(2

113

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(PE DE ST RIA NS ON 13 LY 4) 1

ON

OF FIC E

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11 5

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& CL M O RE TH TA IN IL G FL O O RS )

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PO FA RT S M CH HIO AID GL ELT NS BA OU EN L/W NK CE HA R ST M ER &

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TE LE PH AC O CE O NE 2 SS S L O AC R TH IZ C ES E C OR O N S NF TO & NS BI S

24

Covenant Strength

14 6

KIN

119

43

JUS TN AIL BE S AU SA L

OU SA TD FA OO RI RW EA R

44

SU M M LI ER NG S SH ER O IE E SH ZO O NE E H S AL IF AX BA N K

AR

18 6

55

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C A LA L CCE IRE AC S S CE SO SS RIE

ad

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TE MO L BIL T E O HE SH RA TE OP NG E L

25

56

H

PR IM

12 7

G O HA A D TO N S G E

SU PE RC UTS HA IR

45

AN N

KS VA & RI (2 ET SP RE Y EN TA ST CE IL O R FL E R O O RS ) W

S ED ES TR O X SH BO ER Y N ER IO N AT IO ST AT ST

42

W CL ITHIT OT HIN G

G LIN FIL /A THE ION T T STA

41

A EIL E T SH OV RIS L O FL

O LW VA O RI RT ET HS Y ST O RE

CK SHA EAR KS W MAC DOOR UT

sc

MOSS M/WR (2 RETAIL FLOORS)

GOLDSMITHS JEWELLER

W O

OR OR TS LD GO OD MO S TH ER CH CA ILD RE RE NU H NS RS O M ER W ES G EA Y H T GO R TR OIN O YL & OD R O G E AV G P J O W D HO EL LA S M MI EW BIN EN S EN C E S & A CE HE LLA S HA LLE ON ND GEN S AL W EL R TH T EA S & V R I FO BA R RG RR O (2 EC IN D ET RE OR ME VO T TA DIN GA TE DA IL GS ST LE FO FL OR P B N O E SU RIT HON E O RS ES ST SS ISH ) AT E B G IO X S OO A NE TA K CO ME R TI S H M & ON OP PU BO E S J D TE O RS R KS SP SP GA O O RT RT BR M S ES EN OO S K T G TO ST O O EM RE R DS P ET AG L IVE Y M ADI R EN ES IS S & LAN W D O EA 2 R TE LE PH O NE S TO BE NATIO NWID E (2 RE TAIL FLOO RS)

19

23

21 -

ANT VAC LET T OU

EET

Ca

22

CL O

25

ST R

M

26

(2

29

37

S EBY ROS T GS SOF NISHIN FUR

SHOES

SOLETRADER

THE BODY SHOP HEALTH & BEAUTY

SHOES

TRAVEL AGENT

THOMAS COOK

PORTSMOUTH F.C

FAITH

27

R WE

VACANT OUTLET

2

ENVY

BARRATTS

28

29

ENTRANCE

1

3

4

5

30

MENS WEAR

SHOES

CARDS & GIFTS

CLINTON CARDS

BAY TRADING COMPANY LADIES WEAR

VISION EXPRESS OPTICIAN

ARLY LEARNING CENTRE E EARLY TOYS & GAMES

7

8

9

S TE

BRE

STREET MARKET

LO T

31 -

CH BUT MR CHER BUT

R CH A

E T 39 T RE

27

O ANT VAC LET T OUT TLE OU ANT VAC

Proposed Northern Quarter Shopping Centre www.northernquarter.info

186–188 Commercial Road

l

Portsmouth l June 2008 l 105252.001


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