84 BROAD STREET, BERKSHIRE, RG1 2AP - WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY - Green & Partners
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R E A DI NG 84 BROAD STREET, BERKSHIRE, RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
●● Reading is an important and affluent, regional retail centre with an extensive primary ●● Let to Footasylum Limited on a 10 year Full Repairing and Insuring Lease from 8th
catchment population of 692,000 and total catchment of over 2.3m people March 2016 expiring 7th March 2026 (TBO in year 5)
●● The town continues to experience a ‘retailing renaissance’ with positive occupier and ●● The property provides a total of 3,800 sq ft (353 sq m)
investor demand
●● Freehold
●● Located on Broad Street, a prime pedestrianised retailing pitch with established
national retailers such as John Lewis, Primark, Marks & Spencer, Sainsbury’s, ●● Annual income of £155,000 pax
Pret-A-Manger ●● Offers in excess of £2,650,000 (Subject to Contract & exclusive of VAT) which reflects an
initial yield of 5.50%, allowing for usual purchasers costs of 6.43% at this level.
R E A DI NG
84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY
LOCATION
Reading is a popular regional retailing destination and a major commercial and passengers will be able to travel into, and beyond Central London without the need to change
administrative centre for the Thames Valley Region. The town is strategically located 41 miles at Paddington, providing direct links to the City and West End .
(66km) west of Central London , 25 miles (41km) south east of Oxford and 80 miles (130km) east
Reading has a very strong local economy. The service sector accounts for 72% of local
of Bristol. The town benefits from excellent transport links.
employment which is significantly above average for comparable retail centres. The Professional
By road, the town is easily accessed via Junctions 10, 11 & 12 of the M4 Motorway which connects & Business Services and Finance sectors together account for nearly 20% of total employment .
London to South Wales and gives Reading easy access to the M25 and wider Motorway networks. The town is home to numerous British companies and the UK offices of many foreign multi-
By Air, Heathrow Airport is some 29 miles (47km) to the east. nationals such as Deloitte, PwC, EY, Prudential, Huawei, Microsoft, Symantec, Oracle, Jacobs,
Mabey, Bang & Olufsen , Pepsico, P&G and Gillette.
Reading Railway Station is a 5 minute (0.2 mile) walk from the property and provides services into
London Paddington in less than 30 minutes. With the extension of Crossrail to Reading in 2019,
M1
A1 (M)
M40 Stevenage
A41
LUTON A10
OXFORD
A40
Aylesbury
M11
WATFORD M25
A420 M40
M1
M25
High Wycombe
A34
Slough LONDON
M4 READING
M4
Newbury
Bracknell
M3
A34 A339
M25
A3
Andover
M23
A303 Basingstoke Guildford
Crawley Forest
Stratford Gate Ilford Goodmayes Romford Harold Wood Shenfield
Hayes & Ealing
Twyford Taplow Slough Iver Harlington Hanwell Broadway Bond Street Farringdon Whitechapel Maryford Manor Seven Kings Chadwell Gidea Brentwood
Custom Park Heath Park
Maidenhead Burnham Langley West Southall West Acton Paddington Tottenham Liverpool House
READING Drayton Ealing Main Line Court Road Street Surface Line
Heathrow Canary Abbey Tunnel
Woolwich
Wharf Wood
Tunnel entrances and exits
R E A DI NG
84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY
DEMOGRAPHICS RETAILING IN READING
Reading has a total population within its primary catchment of Reading has a total town centre retail floorspace of 1.83 multi-storey car park providing approximately 2,300 spaces and
698,000 and an estimated shopping population of 401,000, million sq ft, above the Regional centre average and ranking a leisure element at ground floor level. Restaurants in the
ranking the town 17th of PROMIS centres on this measure. the town 19th of PROMIS centres on this measure. There is an scheme include Nando’s, McDonalds, Jamie’s Italian,
Reading’s affluence is reflected in the significantly above annual catchment expenditure of £710m ranking 23rd in the UK Giraffe, Cau, All Bar One and Browns. The other scheme of
average proportion of the most affluent AB social group and an (CACI 2013). Prime retailing is centred on The Oracle note is the Broad Street Mall, located at the western end of
under-representation of the least affluent C2 and D&E Shopping Centre anchored by Debenhams & House of Fraser Broad Street. The 400,000 sq ft scheme is the town’s secondary
categories. The catchment s within a 30 minute drive time and and the pedestrianised Broad Street where M&S, John Lewis, shopping centre, split over two levels with occupiers such as
it spends circa £4bn on retail and leisure per annum including Primark, Gap and H&M amongst others, are represented. TK Maxx, New Look, Wilko and Metro Bank.
pull from competing retail centres such as Swindon, Slough and Broad Street runs from The Oracle at its eastern entrance, west
Within close proximity to the subject property, the former
Newbury. Reading is projected to see above average growth in to Broad Street Mall.
Jackson’s Department Store is currently being reconfigured to
population over the period 2015-2020.
Reading has two covered shopping centre schemes. The provide further leisure accommodation. We understand that
Oracle is a 700,000 sq ft retail and leisure scheme, split Franco Manca , Byron Burger, Wahaca and Busaba Eathai are
across two levels. Key tenants include House of Fraser, all secured.
Debenhams, Apple, Boots and Zara . The scheme has a
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R E A DI NG
84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY
TUD READING TRAIN
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SITUATION STATION HILL DEVELOPMENT
The property is located in a strong retailing pitch towards the Reading is one of the South East’s strongest regional centres In addition, the £100m redevelopment of Thames Tower to
western end of the pedestrianised Broad Street directly opposite and benefits from excellent transport links to the West End of create 183,000 sq ft of offices with 8,000 sq ft of leisure below is
Chlas Olson. Other occupiers in the immediate vicinity include London. July 2014 saw the reopening of the railway station due to complete in Spring 2017. Once the above initiatives are
Pret a Manger, Halifax, Next, Shoe Zone and EE . following an £897 million upgrade, while the news of the complete, it is anticipated that over 200 trains a day will run
extension of Crossrail to Reading has been a stimulus for between Reading and Central London. We believe the property
significant office redevelopment in the Station Hill area. The will benefit hugely from the development given its proximity to
scheme has outline planning approval for 930,000 sq ft of both the Station Hill development and the Railway Station.
offices, 150,000 sq ft of retail, and 300 residential units.
R E A DI NG
84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY
INCOME
Current annual income of £155,000 pax .
RENTAL COMMENTARY
The passing rent devalues to £126.80 Net Effective Zone A. We
believe this to be reversionary.
Prime rental levels on Broad Street currently stand at circa £210
Zone A as evidenced by the recent lettings on 9/10 Broad
Street (Tiger) and 35 Broad Street (Itsu) reflecting £212.50 and
£208 Zone A respectively.
We understand that the adjoining 83 Broad Street has
exchanged to a national multiple retailer on a straight 10 year
lease at a rental reflecting a Net Effective rent of £138 Zone A.
DESCRIPTION ACCOMMODATION We understand that 85 Broad Street, adjoining the subject
The building comprises a 3-storey mid-terraced building, The property provides the following accommodation. property to the left, is under offer to a national multiple A1
arranged over ground (retail) and two upper floors utilised as retailer at a similar level.
ancillary space. The property is serviced via Broad Street. There AREAS SQ FT SQ M
is a small enclosed yard area to the rear. The unit also benefits Ground Floor Sales 2,812 261 TENANCY
from a basement, accessed via a trap door within the retail Ground Floor ITZA 1,012 (Units) N/A The entire property is let to Footasylum Limited on a 10 year
sales area, but is not rentalised.
First Floor Ancillary 541 50 Full Repairing and Insuring Lease from 8th March 2016
expiring 7th March 2026 (8.5 years to expiry). There is a tenant
Second Floor Ancillary 447 42
TENURE only break option on the 8th March 2021 and a rent review on
Total 3,800 353 the same date. The tenant received 12 months rent-free.
Freehold .
COVENANT STRENGTH
Footasylum Limited (05535565) has a Dun & Bradstreet of 3A 1 meaning the company has a minimum risk of business failure.
FINANCIAL SUMMARY
Financial Year End 28-Feb-16 28-Feb-15 28-Feb-14
Sales Turnover £110,440,452 £78,011,075 £62,230,984
Profit / (Loss) Before Taxes £3,501,285 £307,030 £1,159,564
Tangible Net Worth £13,124,307 £10,444,628 £9,930,204
Net Current Assets (Liabilities) £7,153,515 £5,708,070 £6,053,129
RECENT INVESTMENT COMPARABLES
Date Address Tenant Price NIY
Under Offer Watford, 126-130 High Steet McDonalds c. £4,100,000 c. 4.50%
Under Offer Staines, 60-62 High Street Greggs, McDonalds c. £2,675,000 c. 5.25%
May-17 Reading, 61-64 Broad Street Clas Ohlson N/A N/A
May-17 Chelmsford, 61 High Street Paperchase £3,575,000 5.00%
May-16 Reading, 2 Broad Street Lloyds £4,760,000 4.40%
Jun-15 Reading, 107/108 Broad Street Gap £5,825,000 4.50%
EPC PROPOSAL
The property has an EPC rating of D-94.
We have been instructed to seek offers of £2,650,000 (Two
VAT Million Six Hundred and Fifty Thousand Pounds),
The property has been elected for VAT and any disposal will be Subject to Contract & Exclusive of VAT, which reflects a net initial
by way of a Transfer of a Going Concern (TOGC). yield of 5.50% allowing for purchaser’s costs of 6.43%.
For further information or to arrange an inspection please contact:
Ed Smith Patrick Over Simona Malinova
020 7659 4831 020 7659 4832 020 7659 4826
ed.smith@greenpartners.co.uk patrick.over@greenpartners.co.uk simona.malinova@greenpartners.co.uk
MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as
to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. September 2017. Adrian
Gates Photography & Brochures 07710 316 991
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