40/40A CLARENCE STREET KINGSTON-UPON-THAMES - Jackson Criss
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home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
40/40A CLARENCE STREET
KINGSTON-UPON-THAMES
PRIME RETAIL
INVESTMENT
BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
INVESTMENT SUMMARY
• Kingston is one of the most significant and renowned
retail centres located in South West London.
• Rarely available retail block, occupying a 100% prime
position on Clarence Street.
• Freehold.
• Let to the undoubted covenants of VF Northern
Europe Services Ltd. t/a The North Face and EE
Limited t/a EE, with a wault of 5.93 years.
• Excellent rental growth prospects given demand for
the street.
• Ability to add floor space / redevelop, subject to
planning.
• Reversionary
• The current rent is £440,000 pax with a rental value of
£448,900 pax.
• Seeking offers in excess of £9,250,000 (Nine Million
Two Hundred and Fifty Thousand Pounds), subject
to contract and exclusive of VAT. A purchase at this
level would reflect a net initial yield of 4.5% and an
equivalent yield of 4.59%, after allowing for purchasers
costs of 5.8%.
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
A1
A355
A4094
A4
J16/ A4
J1A
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A40
UXBRIDGE 06
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40 | covenant | vat | epc | proposal | contact A4
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value
A 41
8 A 4020
A30
M25 GREENFORD
A 408
MAIDENHEAD
A 40
A4
12
A
37
LOCATION EALING 40
A4
A5
SLOUGH
2
A404(M) HAYES CENTRAL
A31
SOUTHALL
A406
BRAY M4 LONDON
Kingston is one of the UK’s leading commercial and
retailing centres and is one of the only 6 Royal Boroughs J15/ M4 M4 HAMMERSMITH A4
J4B
4B A4
in England and Wales. The town is located in the L ON
CHISWICK
M4 DON M4 A4
affluent South West of Greater London, approximately A308 RD
WINDSOR A4 BAT H RD
A3
5 miles south of Richmond, 11 miles west
0 FIFIELD
of Croydon A4
A33
BATTERSEA
and 12 miles south west of Central London. The town PUTNEY
HEATHROW AIRPORT RICHMOND
es
benefits from excellent communications, with it being A205
R iv
er T h a m
32
OLD M25 HOUNSLOW A205 A3
in close proximity to the M25, M3 and A3. The town
A3
WINDSOR A214
benefits from a regular commuter rail service to London CLAPHAM
Waterloo, with a fastest journey time of approximately
WINKFIELD
20 minutes. A 30 FELTHAM
A3
TWICKENHAM
EGHAM STAINES A 30
London Heathrow Airport is located approximately 40 8 16
A3
miles west of the town and London Gatwick Airport is TEDDINGTON WIMBLEDON
BRACKNELL
located 17 miles to the south east, enabling easy access KINGSTON UPON
0
A308
A3
A329
to a diverse range of domestic and international flights. M3 THAMES MITCHAM
ASCOT VIRGINIA
WATER
DEMOGRAPHIC PROFILE
Kingston has an estimated primary catchment
population of 887,000, significantly above the Regional
Centre average and ranking the town 13th out of the
PROMIS centres on this measure. The estimated
shopping population of Kingston is 467,000, ranking
the town 15th out of the PROMIS centres, reflecting the
dominance of Kingston across its densely populated
catchment area.
The town also ranks 11th in terms of the volume of
comparison retail spend available in the catchment
area and is forecast to see significantly above average
growth in that spending between 2015 – 2020.
Kingston has an affluent catchment population, with a
36% representation of ABC1 demographics.
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
RETAILING IN KINGSTON SITUATION
Kingston is one of the UK’s most significant and renowned retail Kingston offers two quality department stores in John Lewis and The property occupies a 100% prime trading location
centres, and arguably one of the strongest High Street shopping Bentalls, with variety store operators including Marks and Spencer, on the pedestrianised Clarence Street, adjacent to
destinations within the M25 outside of Central London. BHS and Primark, the latter of which is currently extending their River Island, whilst in close proximity to Marks & Spencer,
existing store by c 59,000sqft. Schuh and Topshop.
The town centre retail floor space in Kingston is estimated at 1.40m
sq ft. Kingston ranks 16 on the base of its PMA retail score and 16 The main focus of prime retail activity in Kingston is the
on the PMA fashion score. The town’s high ranking on the PMA pedestrianised Clarence Street, home to Marks & Spencer’s two
retail and fashion scores, reflects an extensive range of fashion and stores and the main entrance to The Bentall Shopping Centre.
non-fashion retailers in the town. Key fashion retailers include H&M, The prime retailing extends into The Bentall Shopping Centre,
Hollister, Primark, Topshop, Monsoon and River Island, as well as which comprises approximately 600,000 sq ft of retail floor space
upper middle quality operators such as Cos, Karen Millen, Jigsaw, over four trading floors. The other main managed shopping centre
Reiss, LK Bennett and Massimo Dutti. is Eden Walk, which comprises approximately 290,000 sq ft of retail
floor space and is anchored by BHS, Boots and Habitat.
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
TO BE ITSU
NORTH
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
DESCRIPTION
The property comprises 2 retail units, offering modern retail and ancillary
accommodation, arranged over ground and first floor levels.
ACCOMMODATION
The property has been measured in accordance with the RICS code of
measuring practice and provides the following approximate dimensions
and net internal floor areas:-
40 Clarence Street (The North Face)
Gross frontage 22 ft 10 in (6.96 m)
Net frontage 19 ft 3in (5.87 m)
Internal width 91 ft 7 in (27.92 m)
Shop depth 92 ft 9 in (28.27 m)
Ground Floor Sales 1,915 sq ft (177.91 sq m)
Ground Floor ITZA 804 units
First Floor Ancillary 1,668 sq ft (154.96 sq m)
Total Area 3,583 sq ft (332.87 sq m)
40a Clarence Street (EE)
Gross frontage 23 ft 10 in (7.27 m)
Net frontage 20 ft 7 in (6.28 m)
Internal width 21 ft 1 in (narrowing to 8ft 10in (6.42 m – 2.69 m)
after depth of 31ft 6in)
Shop depth 53 ft 11 in (16.44 m)
Built depth 82 ft 3 in (25.08 m)
Ground Floor Sales 856 sq ft (79.52 sq m)
Ground Floor Ancillary 172 sq ft (15.98 sq m)
Ground Floor ITZA 610 units (not including
ground floor store)
First Floor Store 267 sq ft (24. 80 sq m)
Total Area 1,295 sq ft (120.31 sq m)
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
TENURE TENANCY
Freehold. The extent of the title The property is let in accordance with the tenancy schedule set out below, producing a current rental income of £440,000 per annum exclusive:-
is outlined in red for indicative
purposes only on the enclosed
goad plan extract.
Address Tenant Lease Start Date Expiry Date RR Dates Rent Passing pa Rent Passing £ sq ft
40 Clarence Street VF Northern Europe Service 30/09/2011 29/09/2021 30/09/2016 £250,000 £281.72 Zone A
Limited t/a North Face
40a Clarence Street T Mobile (UK) Limited t/a EE 04/09/2007 03/09/2022 03/09/2017 £190,000 £299.82 Zone A
Total Rent £440,000
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
RENTAL VALUE
Kingston prime ZA rents have peaked at levels
approaching £340ZA. The estimated rental value of the
subject properties as of today’s date would lie in the
region of £448,900 per annum exclusive, which reflects
a Zone A rent of £295 per sq ft.
There has been limited open market rental evidence on
Clarence Street, but the most recent evidence can be
set out as follows:-
Unit G17, The Bentall Centre, T2Tea
Open market letting February 2015 at a rent of £225,000
pax, which reflects a headline Zone A of £297.50 per
sq ft and a net Zone A of £285 per sq ft. The unit fronts
Clarence Street and is in an inferior location to the
subject property. The unit comprises a ground floor lock
up of 1,130 sq ft.
36 Clarence Street (Vodafone)
Open market letting June 2015 at a rent of £247,500 pax,
which reflected a headline Zone A of £288.13 per sq ft
and a net Zone A tone of £278.50 per sq ft.
22 Clarence Street (To be ITSU)
Current assignment of Arcadia’s leasehold interest for a
9 month rent free period. The rent passing of £350,000
pax devalues to a Zone A rent of £311 per sq ft and the
tenants are proposing significant works to the frontage
to create double height glazing at a cost considerably in
excess of the incentive received.
38 Clarence Street (River Island)
Open market letting July 2010 at a rent of £650,000 pax,
which reflected a net Zone A of £303 per sq ft.
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
COVENANT INFORMATION
The North Face is an American outdoor product company, founded in 1968 in San
Francisco.
EE is a British mobile network operator and internet service provider and a
subsidiary of BT Group. It is the largest mobile network operator in the UK, with
around 28 million customers and the largest operator of 4G services in Europe.
The summary accounting information for both companies is set out below:-
VF Northern Europe 31/12/2014 31/12/2013 31/12/2012
Services Limited GPB 000 GPB 000 GPB 000
Turnover 51,510 40,128 25,280
Pre Tax Profit 3,271 N/A -3,060
EE Limited 31/12/2014 31/12/2013 31/12/2012
GPB 000 GPB 000 GPB 000
Turnover 6,327,000 6,482,000 6,657
Pre Tax Profit -255,000 N/A -251
Kingston is one of the most
significant and renowned
retail centres located in
South West London
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALE
home | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
VAT
The property is elected for VAT and therefore VAT
will be payable on the purchase price. It is envisaged
that the sale will be dealt with as a Transfer Of a Going
Concern (TOGC).
EPC
A copy of the EPC reports are available upon request.
PROPOSAL
We are instructed to seek offers for our clients freehold
interest in excess of £9,250,000 (Nine Million Two
Hundred and Fifty Thousand Pounds), subject to
contract and exclusive of VAT.
A purchase at this level would reflect the following yield
profile after allowing for purchaser’s costs of 5.8%.
Net initial yield - 4.5%
Reversionary yield - 4.59%
Equivalent yield - 4.59%
True equivalent yield - 4.72%
The most recent comparable sale evidence relates to 22
Clarence Street Kingston(Hema) which sold in January
2016 for £10,500,000 which reflected a net initial yield of
4.33% and an equivalent yield of 3.90% based on a rental
value of £295 ZA. The lease had approximately 2.5 years
remaining and was over rented, with the rent passing
reflecting a ZA rent of c £327 per sqft.
40/40A CLARENCE STREET, KINGSTON-UPON-THAMES PRIME RETAIL INVESTMENT BLOCK FOR SALEhome | investment summary | location | demographics | retailing | situation | goad | description | accommodation | tenure | tenancy | rental value | covenant | vat | epc | proposal | contact
For further information, please contact:
Philip Hay Matt Coates Brook Wannop
D E S I G N ED BY TCC
020 7637 7100 020 7637 7100 020 7637 7100
phay@jacksoncriss.co.uk matthewc@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. JC0084. February 2016.
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