146 HIGH STREET BROMLEY - Freehold retail investment opportunity let to Specsavers for - Colliers Retail Capital ...
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146 HIGH
STREET
BROMLEY BR1 1EZ
Freehold retail
investment opportunity
let to Specsavers for
10 years without breaks.
Investment
Considerations
• Located in the heart of Bromley, the principal
town of the affluent London Borough
of Bromley.
• Strategic prominent position on the
western side of High Street on the prime,
pedestrianised retailing pitch.
• Surrounding occupiers include Next, Primark,
Ikea, JD Sports and Topshop
• Comprising 7,259 sq ft (674.4 sq m) over
four floors.
• Let to 5A1 tenant, Specsavers Optical
Superstores Limited, until 5th November 2029
(10 years unexpired).
• Total current income of £150,000 per annum
(£117.66 psf ZA).
• Freehold.
Proposal
We are instructed to seek offers in excess
of £2,350,000 (subject to contract and
exclusive of VAT) reflecting a net initial
yield of 6.00%.
Yields are net of purchasers’ costs of 6.35%.
Specsavers: 146 High Street, Bromley 2
Location Demographic
Bromley represents the principal Profile
administrative and commercial centre for Bromley has the second highest
the London Borough of Bromley and is the PMA Retail Provision Score in
largest town south east of London. Located London outside of Zone 1.
approximately 13 miles (20km) south east of
The property benefits from a primary catchment
Central London, 7 miles (12 km) north east Harlow
population of 711,000. Bromley is projected to see
of Croydon and 12 miles (19 km) south west significantly above average growth in population within
of Dartford. its Retail Market Area over the next 5 years. Bromley’s
M25 Employment Structure, as of 2018, found that a higher
Bromley is a popular commuter town with excellent rail links. The
number than the PROMIS average worked in Financial,
express rail service from Bromley South Rail Station to London
Professional & Business Services and there is well above
Victoria has a journey time of just 20 minutes and subsequently M1 1 Brentwood
the national average in AB professions.
provides connections to the Victoria., Circle and District
Underground Lines.
M4 0
Bromley is undergoing significant regeneration with numerous
residential-led schemes, the most noteworthy being The Churchill M25 Sou
Quarter which is a mixed-use development in the heart of
the town centre by Bromley Council with Countryside as the Slough LONDON Basildon
development partner. The site includes the library and Churchill
Theatre which is situated less than 100 metres south of the subject Dartford
property. The proposed Reading
development includes retail and other HEATHROW Tunnel
Gravesend
M4
commercial space as well as new homes and a plaza. AIRPORT BROMLEY
In addition, St Mark’s Square is a new residential and leisure
quarter at the southern end of the town centre being developed
wbury Gillingham
by U+I and the Borough Council.
A33 The development will provide Croydon M20 M2
200 apartments, a Premier Inn Hotel, VUE cinema and 8
restaurants and is due to complete by the year end. The
M3 inward
investment will have a positive effect on the town centre. M26
A339
M25 M20
Farbborough
Maidstone
M23
Guildford
A3
A31 GATWICK Royal
AIRPORT Tunbdirge Wells
Crawley
Specsavers: 146 High Street, Bromley 3
Haslemere
Retailing in Bromley
Bromley’s prime retail area is focused around
the pedestrianised High Street and The Glades
Shopping Centre.
Bromley is a popular shopping destination and the high street benefits
from a wide variety of national retailers such as Next, Primark, M&S,
IKEA, Topshop and Foot Asylum - all in the near vicinity to the property.
It is a high footfall location with busy market trade from Thursday to
Saturday weekly.
The Glades Shopping Centre provides 135 stores and 1,500 customer
car parking spaces. Key tenants include Zara, H&M, Superdry, The White
Company and M&S.
Specsavers: 146 High Street, Bromley 4
Situation
Prominent position on the western side of High
Street on the prime, pedestrianised retailing
pitch, which benefits from strong footfall being
situated between the two main entrances to The
Glades Shopping Centre, opposite M&S and
Topshop alongside Primark.
The close proximity to the scheme enables the unit to benefit from
the associated footfall and the relatively recent lettings to Lidl, Ikea
and Deichmann on the western side of the High Street has further
heightened footfall.
Specsavers: 146 High Street, Bromley 5
Description
The property comprises a 4-storey terrace
building arranged over ground, lower ground,
basement and first floor levels.
The ground and lower ground levels provide sales and consultancy
areas and treatment rooms for customers with the basement level
providing ancillary accommodation.
Whilst Specsavers has an overriding lease across the entire property,
the optical retailer sub-lets part ground floor (self-contained entrance)
and the first floor level to Empowered Gyms. The first floor is arranged
as an open gym floor with an office, changing rooms and separate
studio for classes.
Accommodation
The property comprises the following Net Internal Areas:
Area Area
Floor Description
(sq ft) (sq m)
Specsavers Ground Sales 2,159 200.6
ITZA 893
Lower Ground Sales/ Ancillary 1,894 176.0
Basement Ancillary 741 68.8
Empowered Gyms Ground Lobby 47 4.4
First Sales 2,418 224.6
Total 7,259 674.4
Specsavers: 146 High Street, Bromley 6
Tenure ▲
N Covenant Information
We understand the property is held freehold under title number Specsavers Optical Superstores Limited (Company
SGL338204.
No 01721624) is rated the minimum risk of 5A1 by
D&B and 78/100 (Very Low Risk) by Creditsafe. It is
the largest retailer of optical goods and services in the
Tenancy UK and provides a resilient covenant with a turnover
The property is let in its entirety to Specsavers Optical Superstores of £622 million in 2018 and pre-tax profit of almost
Limited on a 10 year lease from 6th November 2009 at a current £21 million. Global Data’s report on the company
passing rent of £150,000 per annum. The current lease expires
highlights the strengths as a strong customer base and
5th November 2019, but a reversionary lease is in place from 6th
November 2019 to 5th November 2029 at £150,000 per annum. multi-channel selling with numerous opportunities.
For indicative purposes
The tenant has the benefit of a 16 month rent free period from 29th The family-run business was founded in 1984 and now employs over 32,500 people
July 2019 until 28th November 2020, the remainder of which will be across 1,978 stores across the UK & Europe as well as Australia and New Zealand.
topped up by the vendor. A summary of the last three years of accounts is set out below:
Part of ground floor and the first floor are sublet at £22,000 per annum
28/02/2018 28/02/2017 29/02/2016
Year Ending
to Empowered Gyms Limited. (000’s) (000’s) (000’s)
Sales Turnover £622,473 £716,509 £673,564
Rental Commentary Pre-tax Profit £20,860 £32,772 £28,777
We have analysed the passing rent of £150,000 per annum to reflect
a headline rent of £117.66 psf ZA, but when factoring in the 16 Net Worth £76,595 £54,000 £53,649
months’ rent free incentive, the net effective rent is £92.17 psf ZA.
With Specsavers having just agreed a 10 year reversionary lease, it
has set the most recent rental evidence on High Street. This rental
£716m £76m
£674m £33m
level is the same as the previous passing rent and sits comfortably £622m £29m
with surrounding evidence, albeit evidence on the street is now £21m
£54m £54m
relatively historic:
Net Rate
Address Tenant Transaction Date Rent (pa)
(ZA psf)
‘16 ‘17 ‘18 ‘16 ‘17 ‘18 ‘16 ‘17 ‘18
132 High Street Yours OML Nov-17 £110,000 £120
SA L E S T U R NOV E R P R E -TA X P RO F IT NE T WO RT H
£622m £21m £77m
140-144
Deichmann OML Dec-15 £225,000 £118
High Street
2018 2018 2018
137 High Street Foot Asylum OML Oct-15 £130,000 £100
Specsavers: 146 High Street, Bromley 7
Contact
EPC
A copy of the EPC certificate is available on request.
Becky Hance
020 7344 6841
Becky.hance@colliers.com
VAT
Harry Tivnen The property has been elected for VAT purposes and
020 7487 1776 it is expected that the investment sale will be treated
Harry.tivnen@colliers.com as a Transfer of a Going Concern, subject to purchaser’s
VAT status.
Identity Checks
In order to comply with anti-money laundering legislation,
the successful purchaser will be required to provide certain
identification documents. The required documents will be
confirmed to and requested from the successful purchaser
at the relevant time.
Colliers International
50 George Street, London, W1U 7GA
Proposal
Offers sought in excess of £2,350,000
MISREPRESENTATION ACT DISCLAIMER
Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and
(subject to contract and exclusive of VAT)
do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party
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
reflecting a net initial yield of 6.00%.
of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to
Yields are net of purchasers’ costs of 6.35%.
this property. October 2019.
Colliers International is the licensed trading name of Colliers International Retail UK LLP which is a limited liability partnership registered in England
and Wales with registered number OC334835. Our registered office is at 50 George Street, London W1U 7GA.
Designed and produced by Parer Creative. Tel 07702 123482.
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