126/130 HIGH STREET, WATFORD - PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY - Jackson Criss
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| home | investment summary | location | demographics | retailing | situation | goad | description
| accommodation | tenure | tenancy | covenant | rental value | vat | epc | proposal | contact
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
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. INTU’s 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 purchaser’s costs of 6.46%.
WATFORD - 126/130 HIGH STREET 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
LOCATION
M1
Watford is an affluent and popular retail and 16 minutes. London underground services are A1(M)
M25
commercial centre in the borough of Hertfordshire provided from Watford tube station on the A41
situated 17 miles (11.3km) northwest of central Metropolitan line. There are proposals to re-route M25
POTTERS
BAR
London and inside the M25 motorway. and extend the Metropolitan line to M25
A41
Watford Junction.
M25
Watford benefits from excellent motorway M1
transportation links and is strategically located Watford offers an excellent choice for air travel A1
CHORLEYWOOD BOREHAMWOOD BARNET
with Junction 19 of the M25, 4 miles (6.4km) to with Luton Airport 17 miles (27.4km) to the north, WATFORD
the north west and Junction 5 of the M1 2 miles and a 25 minute drive from the town centre.
RICKMANSWORTH
(3.2km) to the north east. Heathrow Airport is located 22 miles (35.4km) to M1
EAST BARNET
the south, Gatwick Airport 60 miles (96.6km) to the MAPLE
CROSS
Watford is also serviced by three mainline south and Stansted Airport is 45 miles (72.4km) to STANMORE EDGEWARE
M25
stations and benefits from regular train services the north east. M1
into London Euston with a fastest time of just A413
GERRARDS
HARROW A1
CROSS RUISLIP
DEMOGRAPHIC PROFILE
The total population within the Watford primary representation of the AB and C1 social groupings.
catchment area is 635,000, similar to the Regional As a result the per capita retail spending levels are
Centre average and ranking the town 24 out of higher than the national average. (CACI)
the PROMIS Centres. The town is projected to
see above average growth in population over the Watford has a strong economic profile and is
period 2016-21. a major employment hub especially for retail,
finance and professional/business services. The
The estimated shopping population of Watford is service sector as a whole accounts for 81% of
336,000, ranking the town 27 of the PROMIS centres, total employment, significantly above the Retail
which reflects Watford’s dominance and retail PROMIS average. Employers include Watford
status since the development of Intu Watford in the Borough Council, Watford NHS, Hilton Worldwide,
late 1980s. The Watford catchment population is JD Wetherspoon, Camelot Group, Iveco, TK Maxx,
moderately affluent and contains a significant over Costco, Total Oil, Sanya and Beko.
“Per capita retail spending levels higher
than the national average”
WATFORD - 126/130 HIGH STREET 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
RETAILING IN WATFORD SITUATION
Watford is one of the premier regional retail The town centre retail floor space in Watford Intu Properties and the Watford B.C are The subject property is situated in a
centres in the UK. The prime retailing in is estimated at 1.37 million sq ft, ranking currently redeveloping the former Charter highly prominent prime corner trading
Watford is centred on the John Lewis and the town 46 of the PROMIS Centres on this Place Shopping centre which will be location on the pedestrianised High Street,
Marks & Spencer anchored INTU Watford measure. Watford ranks 38 on the basis of integrated with Intu Watford. The extension adjacent to Waterstones, opposite Primark
shopping centre. The Prime pitch extends its PMA Non-Food Retail Score, 42 on the is set to create a single 1.4 million sq ft retail
and the main entrance to the INTU Watford
onto the pedestrianised High Street, where PMA Fashion Score and ranks 38 on the PMA and leisure destination, placing Watford in
Shopping centre.
a number of national multiple retailers are Anchor Score. Watford has a significantly CACI’s top 20 national retail destinations
represented including Superdrug, Wilkos below average volume and quality of retail ranking, alongside Edinburgh and Bristol.
and GAP. Sports Direct/Flannels will be provision relative to the size and affluence of This extension to Intu Watford is expected to
occupying the former BHS store. the shopping population (PROMIS, 2017). provide a major boost to the town and help
retain spending on its completion in autumn
“Significant over representation of the 2018. Debenhams has agreed to anchor
the scheme, along with a nine screen IMAX
ABC1 social groupings” Cineworld cinema.
WATFORD - 126/130 HIGH STREET 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
CT
RE
DI
TS
SP BE
OR
TO
NORTH
For Identification purposes only
WATFORD - 126/130 HIGH STREET 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
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.
WATFORD - 126/130 HIGH STREET 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
COVENANT
McDonald’s is an American fast food restaurant chain established
in 1940. Today, McDonald’s is the world’s 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 Experian
31/12/2015 31/12/2014 31/12/2013
Real Estate Credit Score
GBP GBP GBP
LLP – out of 100
Turnover £ 89,566,000 £ 87,383,000 £ 87,333,000
Pre-Tax Profit £ 304,122,000 £ 48,958,000 £ 37,871,000 100
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).
WATFORD - 126/130 HIGH STREET 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
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 purchaser’s 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 Ann’s 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%.
WATFORD - 126/130 HIGH STREET 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
For further information, please contact the sale agents, Jackson Criss:
Philip Hay Brook Wannop
DESIGNED BY TCC
020 7637 7100 020 7637 7100
phay@jacksoncriss.co.uk brookw@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.
WATFORD - 126/130 HIGH STREET PRIME LONG LET LONDON RETAIL INVESTMENT OPPORTUNITY
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