287-309 HIGH STREET, SUTTON, SM1 1AN - MODERN WELL-SECURED HIGH STREET LEISURE AND RETAIL INVESTMENT - Allsop
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287-309 HIGH STREET, SUTTON, SM1 1AN MODERN WELL-SECURED HIGH STREET LEISURE AND RETAIL INVESTMENT
INVESTMENT CONSIDERATIONS
• Rare opportunity to acquire a prominent leisure and retail
investment in the popular London suburb of Sutton
• The property comprises a large mixed use development
built in 2015 in which the residential uppers have been
sold off on long leases
• A
ll tenants benefit from new leases with at least 9 years
remaining until expiry
• Tenants include Costa, Magnet, The Gym, EasyCoffee,
Trade Tiles Direct and Poundstretcher
• Freehold
• Situated adjacent to a recently opened Sainsbury’s
Supermarket
• C
irca 12 minute walk from both West Sutton Train Station
and Sutton Train Station
•
The Gym Ltd has a fixed rental uplift in year 5 rising
to £201,399 pa with all other tenants benefiting from five
yearly open market rent reviews
• The property comprises 27,789 sq ft (2,582 sq m) of
ground floor retail and leisure accommodation
• Total current rent passing of £511,274 pa
• O
ffers sought in excess of £6,250,000 (Six Million Two
Hundred and Fifty Thousand Pounds) subject to contract
and exclusive of VAT. A purchase at this level reflects a
Net Initial Yield of 7.7% rising to 8% in year 5, assuming
purchaser’s costs of 6.63%.
HIGH STREET LEISURE AND RETAIL INVESTMENT
Internal Poundstretcher HIGH STREET LEISURE AND RETAIL INVESTMENT
J16
LONDON
London
The London Borough J15
M4 City
of Sutton is one of the M4 Heathrow
‘greenest’ in London, with
61 Parks and 25 Open J12
M3
Access Gardens.
J3
M25
Sutton
J10
J9 J5
M3
M25
J8 J7 J6
Gatwick
LOCATION DEMOGRAPHICS
Sutton is an affluent, popular commuter town that is located approximately 11 miles • The total population within Primary Retail Market Area is estimated at 189,000 (Promis)
south-west of Central London, approximately 6 miles west of Croydon and 4 miles
• 80% of Sutton Residents aged between 16-64 are economically active
east of Epsom within the London Borough of Sutton. Sutton benefits from excellent
local amenities and connectivity and is an established residential and business area. • 40% of working age residents hold a degree level qualification
The town boasts some of the most highly rated schools in the UK, with Sutton • The majority of the town’s population is in the ABC1 social group
Grammar School rated as ‘Outstanding’ by Ofsted. In addition, The London Borough
• Sutton is one of the top three safest boroughs in London
of Sutton is one of the ‘greenest’ in London, with 61 Parks and 25 Open Access
Gardens. In its entirety, the total amount of ‘green’ space totals approximately 600 • 6,800+ businesses make up Sutton’s vibrant business community
ha, which equates to 14% of the Borough’s land area.
• Unemployment is very low in Sutton, at 3.9%, compared to the London average of 4.9%
HIGH STREET LEISURE AND RETAIL INVESTMENT
EXCELLENT CONNECTIVITY
Sutton benefits from a major rail and public
transport interchange providing quick links
into Central London.
LONDON
LONDON
Road
Sutton benefits from having the A23 to the east and A24
to the west of the town centre, with both providing direct
29 MINS 42 MINS 40 MINS 47 MINS access to central London. Furthermore, the A217 runs
through Sutton and leads directly to junction 8 of the M25
VICTORIA FARRINGDON CITY THAMESLINK ST PANCRAS approximately 12km (7.5 miles) south.
INTERNATIONAL
Rail
SOUTHERN RAIL
THAMESLINK
A23 Southern Rail and Thameslink rail lines run directly through
Sutton, offering routes to several prominent mainline Central
London Stations including London Victoria (journey time:
29 minutes), Farringdon (journey time: 42 minutes), St
Pancras International (journey time: 47 minutes) and
SUTTON A23 Wimbledon (journey time: 17 minutes).
J8 J8 M25 Air
Sutton is very well situated in regard to airports, with London
Heathrow 25.7 km (16 miles) north west, London Gatwick
26.5 km (16.5miles) south and London City Airport 27 km
M23
(17 miles) north east.
GATWICK
HIGH STREET LEISURE AND RETAIL INVESTMENT
VALE
R OAD
BBLOCK
lock DD
BL Blo
OC
KC ck
C
SITUATION
C3
-C
The subject property is situated in Sutton here are two shopping centres in the vicinity, 5
C3
Town Centre on the west side of the High St. Nicholas Shopping Centre and Times
CC22
Street in close proximity to Sutton Green, Square Shopping Centre which are located
just north of the pedestrianised section 0.8km (0.5 miles) and 0.95 km (0.6 miles) to CC11
BU
of the High Street. The property is within the south.
Block A RN
EL
LR
walking distance of a number of local OA
D
ET
stations, including Sutton Common Station
BLOCK A
IMMEDIATE VICINITY
RE
(11 minutes’ walk), West Sutton Station (12
ST
minutes’ walk) and Sutton Railway Station The surrounding area can be classified as
GH
BL
OC
(14 minutes’ walk) as well as the main retail
KB
a mixture of residential and commercial
HI
Blo B3
-B B3 -B5
ck 5
centre of Sutton. There are multiple bus uses with many new residential and mixed B
routes available via the bus stops to the front use developments being erected in the
of the property. vicinity. Sovereign Place, located opposite B1
the subject property, is a new residential
The site is prominently situated to benefit
development, comprising 40 residential units. B1
from the amenities offered further along
In addition to this, a planning application has BB22
Sutton High Street, including a recently
been submitted for the redevelopment of the
opened Sainsbury’s Supermarket which is
site adjacent to Sovereign Place.
located immediately adjacent to the subject Sainbury’s
Main Access
property. Other notable occupiers in close
proximity include, Halfords, Matalan, Topps
N
FLOOR AREAS
Tiles, Domino’s Pizza and Asda. BLOCK B
UNIT B1 160 sqm GIA
UNIT B2 122 sqm GIA
UNIT B3 -B5 1134 sqm GIA
BLOCK C
UNIT C1 221 sqm GIA
UNIT C2 44 sqm GIA
UNIT C3 880 sqm GIA
High Street, Sutton
(lxb) retail properties plc Client: LXB RP (Sutton) Limited
HIGH STREET LEISURE AND RETAIL INVESTMENT Date: 12/09/2017
Job/Dwg: 11859-V2001G NMA2-Retail Extract Plan
Scale: 1:500@A3
www.harrispartnership.com
11859 Sutton Retail Extract Plan V2001G NMA2
DESCRIPTION The property comprises two newly built mixed use developments in which the residential uppers have been let on long leases expiring 3014. The southern element of the property known as Block B comprises a 13 storey building with 3 retail units to the ground floor. The northern element known as Block C comprises a 12 storey building with 3 retail units also to the ground floor. In total the sold off elements of the development comprise 186 residential units consisting of 181 flats and 5 townhouses. The freehold of the property includes the attractive piazza and water feature to the front of Costa Coffee and the entrance of the adjacent Sainsbury’s store. The subject property forms part of a larger development which also comprises the adjacent 90,000 sq ft Sainsbury’s and a town centre care park of 350 spaces – the car park offers two hours of free parking. These elements are not included in the sale. HIGH STREET LEISURE AND RETAIL INVESTMENT
SCHEDULE OF ACCOMMODATION AND TENANCIES
Size (NIA)
Accommodation*
Unit Tenant Lease start Rent Review Lease End Rent p.a Comments
Sq Ft Sq M
Subject to open market rent reviews every
B1 Costa Ltd Ground Floor Retail 1,730 161 23/01/2017 23/01/2022 22/01/2027 £51,900
five years.
24 months rent free will be topped up by
"Peoples Coffee Sutton Limited the vendor. Subject to open market rent
B2 Ground Floor Retail 1,313 122 28/03/2018 28/03/2023 27/03/2028 £29,542
t/a easyCoffee” reviews every five years.The tenant is not
yet in occupation.
15 months rent free will be toped up by
B3-B5 The Gym Ltd Ground Floor Retail 12,206 1,134 11/04/2018 11/04/2023 10/04/2028 £183,090 the vendor. Fixed rental uplift to £201,399
in year five.
Magnet Ltd (Gurantor: Nobia Subject to open market rent reviews every
C1 Ground Floor Retail 2,380 221 05/04/2017 05/04/2022 04/04/2027 £61,412
Holdings UK Ltd) five years.
Trade Tiles Direct Limited
Subject to open market rent reviews every
C2 (Gurantor: Aesthetic Materials Ground Floor Retail 475 44 22/09/2017 22/09/2022 21/09/2027 £11,000
five years.
Ltd)
Poundstretcher Ltd (Gurantor: Subject to open market rent reviews every
C3-C5 Ground Floor Retail 9,685 900 20/09/2017 20/09/2022 19/09/2027 £174,330
Crown Crest Group Ltd) five years.
Total 27,789 2,582 £511,274
* Areas have been provided by the vendor. Floor plans are avalible on the data room. Any interested party should carry out their own measurement survey.
HIGH STREET LEISURE AND RETAIL INVESTMENT
COVENANT INFORMATION
PoundStretcher LTD Trade Tiles Direct Ltd
Established in 1981, PoundStretcher Ltd is a chain of discount stores located in the Trade Tiles Direct is a UK company that provides floor and wall materials for both residential
United Kingdom. The company operates 350 stores nationwide, and after recent success and commercial clients. Their head office is also located in Sutton, Surrey.
within the UK, has opened its first store outside the UK in Dubai.
The company was incorporated in 2017 therefore no accounts are available. As part of the
PoundStretcher Ltd has reported the following financial information for the last three lease, Trade Tiles Direct Ltd has been guaranteed by Aesthetic Materials Ltd who have
years: reported the following financial information for last year:
31 Mar 2017 31 Mar 2016 31 Mar 2015 31 Mar 2017
Turnover £397,380,415 £429,538,926 £438,325,000 Total Net Worth -£12,996
Pre-Tax Profit £2,730,262 £2,405,347 £2,835,000
Magnet Ltd
Total Net Worth £19,911,546 £17,836,284 £16,829,000
Magnet is a british kitchen retailer that supplies joinery and kitchen products to the trade
and consumer markets. The company has stores in over 200 locations across the UK
employing over 2,000 employees. Magnet Ltd is part of the Nobia Group, Europe’s leading
As part of the lease PoundStretcher Ltd has been guaranteed by Crown Crest Group Ltd kitchen company.
who have reported the following financial information for the last three years:
Magnet Ltd has reported the following financial information for the last three years:
31 Mar 2017 31 Mar 2016 31 Mar 2015 31 Dec 2017 31 Dec 2016 31 Dec 2015
Turnover £411,503,542 £449,368,194 £470,863,350 Pre-Tax Profit £0 £500,000 £500,000
Pre-Tax Profit -£3,507,667 £3,435,219 £4,751,861 Total Net Worth £34,940,000 £34,864,000 £34,270,000
Total Net Worth £110,614,961 £116,371,074 £113,313,277
As part of the lease, Magnet Ltd has been guaranteed by Nobia Holdings UK Ltd who
have reported the following financial information for the last three years:
31 Dec 2017 31 Dec 2016 31 Dec 2015
Turnover £ 412,425,000 £ 431,520,000 £ 430,140,000
Pre-Tax Profit £ 39,712,000 £ 27,824,000 £ 30,939,000
Total Net Worth £ 128,129,000 £ 96,739,000 £ 92,005,000
HIGH STREET LEISURE AND RETAIL INVESTMENT
COVENANT INFORMATION
People’s Coffee Sutton Ltd
Established in 2015, People’s Coffee opened their first stores in central London in 2016
and now provideß coffee houses in Burnley, Blackburn, Hastings, Edinburgh, Dartford and
Sutton. Their head office is located in London, W1S 1BB.
The Gym Group Ltd
Established in 2007, The Gym Group is one of the leading Gym operators in the UK and is
currently no. 13 in the Sunday Times Fast Track 1000. The company has over 100 gyms
across the UK with memberships of over 600,000 people. All Gym Group’s gyms are open
24/7.
The Gym Group Ltd has reported the following financial information for the last three years:
31 Dec 2016 31 Dec 2015 31 Dec 2014
Turnover £73,539,000 £59,979,000 £45,880,055
Pre-Tax Profit £9,530,000 £4,794,000 £8,130,320
Total Net Worth £64,177,000 £62,878,000 £49,117,414
Costa Ltd
Established in 1971, Costa Coffee is a multinational British Coffeehouse headquartered
in Dunstable, Bedfordshire. It is the second largest coffee chain in the world operating
3,401 stores across 31 countries worldwide. The company Costa Limited is a subsidiary
of Whitbread PLC.
Costa Ltd has reported the following financial information for the last three years:
02 Mar 2017 03 Mar 2016 26 Feb 2015
Turnover £886,366,000 £835,037,000 £735,974,000
Pre-Tax Profit £103,387,000 £117,498,000 £127,221,000
Total Net Worth £616,894,000 £542,180,000 £444,814,000
HIGH STREET LEISURE AND RETAIL INVESTMENTGROUND FLOOR PLANS
Plans not to scale. For indicative purposes only.
BLOCK B BLOCK C
Entrance to new Sainsbury’s
58
50
30
25
supermarket
B3 - B5 C1 C3
Sainsbury’s
B1 12,206 sqft Access Road
2,380 sqft 9,685 sqft
1,730 sqft Note: Lift & openings
shown indicative only.
To be finalised upon
reciept of specialist
drawings.
V. 07.12.17 Unit subdivisions amended to reflect latest GA plans. CM LEEB
Unit Area s updated adn Unit dimensions shown.
U. 10.01.17 B5 removed and B2 area increased CM LEEB
T. 09.01.17 Units split as previous revisions, with tenant signage CM LEEB
included, glazed openings amended to elevations.
NEW PUBLIC SPACE
S. 07.07.16 Units B2, B3, B4 and B5 amalgamated. CM LEEB
R. 05.07.16 Units B3 and B4 amalgamated. CM LEEB
Q. 15.03.16 Units B3-B5 re-instated, with separating walls relocated. CM LEEB
P. 01.03.16 Units B3-B5 combined and parking spaces included to CM LEEB
rear. Entrance door from rear relocated.
C2
N. 25.02.16 External seating area amended CM LEEB
M. 16.02.16 External seating area amended to suit landscape CM LEEB
proposals.
L. 15.02.16 Unit B1 updated, Refuse Store and HVAC Zone CM LEEB
B2
included. External seating area indicated.
K. 10.02.16 External Door location updated to Unit B1 IRS LEEB
J. 05.02.16 LANDLORDS PLANT ROOM AMENDED LEEB LEEB
475 sqft
H. 28.01.16 RWP'S AND SERVICES ADDED LEEB LEEB
G. 21.01.16 REFUSE AND HVAC ZONE ADDED LEEB LEEB
F. 14.01.16 REAR DOOR UPDATED TO UNIT B5 LEEB LEEB
E. 11.01.16 GA PLAN UPDATED TO WINDOW OPENINGS LEEB LEEB
1,313 sqft
D. 29.10.15 UNITS SPLIT ACCORDING TO CLIENT REQUESTS RH LEEB
C. 27.10.15 UNITS SPLIT ACCORDING TO CLIENT REQUESTS RH LEEB
B. 30.09.15 UNITS SPLIT ACCORDING TO CLIENT REQUESTS RH LEEB
A. 30.09.15 UNITS SPLIT ACCORDING TO CLIENT REQUESTS RH LEEB
Rev Date Description Rev By Chk'd By
K. 17.07.17 Check ref. dims added. ABT CM
Project Title PROPSOED RETAIL WORKS Drawing Title BLOCK B GA PLAN MARKETING J.
H.
17.03.17 NOTES AMENDED AS PER CLIENT COMMENTS CM IRS
15.03.17 NOTES AMENDED AS PER CLIENT COMMENTS CM IRS
THE OLD GAS WORKS G.
F.
09.03.17
23.11.16
GLAZING UPDATED TO UNIT C1
UNIT SIZES AMENDED TO CLIENT REQUEST
CM
CM
IRS
LEEB
Ground Floor Plan
11859-701
E. 23.02.16 UNIT C1 REFUSE STORE AREA REDUCED CM LEEB
Ground Floor Plan HIGH STREET Job-Dwg No Rev V D.
C.
28.01.16
02.10.15
SERVICES ADDED
UNIT SIZES AMENDED TO CLIENT REQUESTS
LEEB
RH
LEEB
LEEB
Scale 1:50
Scale 1:50
B. 01.10.15 UNIT SIZES AMENDED TO CLIENT REQUESTS RH LEEB
SUTTON Rev Date Description Rev By Chk'd By
THE HARRIS PARTNERSHIP WAKEFIELD Project Title PROPSOED RETAIL WORKS Drawing Title BLOCK C GA PLAN MARKETING
2 St. Johns North, Wakefield, WF1 3QA
t. 01924 291 800 f. 01924 290 072 THE OLD GAS WORKS
Client LXB RP (SUTTON) LIMITED THE HARRIS PARTNERSHIP MANCHESTER
2nd Floor, Carvers Warehouse,
HIGH STREET Job-Dwg No
11859-702 Rev K
77 Dale Street, Manchester, M1 2HG SUTTON
t. 0161 238 8555 f. 0161 244 5809 THE HARRIS PARTNERSHIP WAKEFIELD
Status MARKETING 2 St. Johns North, Wakefield, WF1 3QA
t. 01924 291 800 f. 01924 290 072
THE HARRIS PARTNERSHIP MILTON KEYNES
The Old Rectory, 79 High Street Client LXB RP (SUTTON) LIMITED THE HARRIS PARTNERSHIP MANCHESTER
2nd Floor, Carvers Warehouse,
Newport Pagnell, MK16 8AB 77 Dale Street, Manchester, M1 2HG
Scale 1:200 Drawing Size A2 t. 01908 211 577 f. 01908 211 722 t. 0161 238 8555 f. 0161 244 5809
Status MARKETING
THE HARRIS PARTNERSHIP READING THE HARRIS PARTNERSHIP MILTON KEYNES
A R C H I T E C T S The Old Rectory, 79 High Street
101 London Road, Reading, RG1 5BY Newport Pagnell, MK16 8AB
t. 0118 950 7700 f. 0118 956 8642 www.harrispartnership.com 1:125 A2
Drawn By LEE B Checked By LEE B Date SEPT 15 Scale Drawing Size t. 01908 211 577 f. 01908 211 722
CAD file reference J:/PROPJECT/11001-12000/11859-18.0/700 SERIES This drawing is copyright and may not be reproduced in whole or part without written authority. Do not scale off this drawing.
THE HARRIS PARTNERSHIP READING
101 London Road, Reading, RG1 5BY A R C H I T E C T S
t. 0118 950 7700 f. 0118 956 8642 www.harrispartnership.com
Drawn By LEE B Checked By LEE B Date SEPT 15
CAD file reference J:/PROPJECT/11001-12000/11859-18.0/700 SERIES This drawing is copyright and may not be reproduced in whole or part without written authority. Do not scale off this drawing.
HIGH STREET LEISURE AND RETAIL INVESTMENTRETAILING IN SUTTON Town centre retail floor space in Sutton is estimated at 1.24 million sq ft.This strong retail offering is centred in two main locations; the High Street and St. Nicholas Shopping centre. The High Street is situated to the north of Sutton station and includes occupiers such as, Subway, Morrison’s, Ladbrokes, McDonalds, HSBC and Argos. The High Street sees a high level of footfall, due to its pedestrianised nature and the fact that it is the main thoroughfare for the town. All the major supermarkets, Sainsbury’s, Asda, Marks & Spencer and Morrison’s are represented within the town and are all accessed from the High Street. St Nicholas Shopping Centre is located to the North of Sutton station and is also accessed through the pedestrianised High Street. The centre comprises many national retailers such as, Levis, Ann Summers, Blue Inc, Flight Centre, Primark, Natwest and Empire Cinema. Sutton’s retail offering is extending further with multiple new residential developments either constructed or being constructed with retail to the ground floor. Sutton is projected to see significantly above average growth in population within its Retail Market Area over the period 2017- 22 (Promis) and this will likely result in an even busier High Street in the future. HIGH STREET LEISURE AND RETAIL INVESTMENT
VAT
The property has been elected for VAT and as such the transaction will be treated as a TOGC. For further information or to make
arrangements to viewing please contact:
EPC
EPCs are available on the dataroom
Liam Stray
DATAROOM 020 7543 6769
Further information is provided in the dataroom. For access please register on the following liam.stray@allsop.co.uk
website http://datarooms.allsop.co.uk/register/SuttonHighStreet
Ronnie Morgan
020 7543 6808
PROPOSAL ronnie.morgan@allsop.co.uk
ffers sought in excess of £6,250,000 (Six Million Two Hundred and Fifty Thousand Pounds) subject
O
to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.7% rising to 8%
in year 5, assuming purchaser’s costs of 6.63%.
Alex Neil
020 7543 6895
alex.neil@allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not
constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or
representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or
give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken
by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2.
Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and
the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey
of the property; and (e) carry out all necessary searches and enquiries.
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