NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop

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NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP

BOURNEMOUTH BH2 6EJ

LONG INCOME CAR PARK INVESTMENT
LET TO THE 5A1 COVENANT NCP LIMITED
FOR A FURTHER 18.2 YEARS.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ

                                         ENTRANCE                                                                                                                                   EXIT

       INVESTMENT CONSIDERATIONS                                                                                                        PROPOSAL
          Prime multi-storey car park located in the very heart of the   Large strategic town centre investment providing 236 parking    Offers sought in excess of £5,540,000 (Five Million Five
          popular and affluent coastal town of Bournemouth               spaces arranged over 8 levels with a site area of               Hundred and Forty Thousand Pounds) subject to contract
          Let to the strong covenant of National Car Parks (NCP)         approximately 0.48 acres (0.19 Hectares)                        and exclusive of VAT. This reflects a net initial yield of
          Limited (5A1) for an unexpired term of 18.2 years              Virtual Freehold                                                5.25%, after allowing for purchaser’s costs of 6.63%.
          Situated adjacent to Bournemouth’s principle retail and        Direct Town Centre access from Bournemouth’s main arterial
          leisure offerings, a short ten minute walk to Bournemouth’s    road the A338
          beach and pier                                                 Based on a purchase at asking terms the property has a very
          Topped up rent passing of £310,065 pa subject to RPI           low capital value of £82.15 psf
          annual increases (1.5%-5% collar and cap)
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ                                                                                        LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS

                                                                                                                                                          A338

                                                                                         BOURNEMOUTH                                                 BROMPTON
                                                                                            LIBRARY                                                    COURT

                                                                                                                                                                     BOURNEMOUTH
                                                                                                                                                                       TOWN HALL

              SITE AREA: 0.48 Acres (0.19 Hectares)
              LEVELS: 8
              TOTAL SQ FT: 67,436                       BOURNEMOUTH

                                                                                                                             CENTRAL GARDENS

                                                                                                                                                                                                          NATIONWIDE
                                                                                                                                                                                                            OFFICES

                                                                                                                       THE SQUARE

                                                                                                                                                                 THE BOURNEMOUTH
                                                                                                                                                                      ORATORY

                                                                       BOURNEMOUTH BH2

                                                                                                             LOWER GARDENS

                                                                                                                                                                                                  ST PETER’S CHURCH
                                                       BOURNEMOUTH                                BOURNEMOUTH                                                       BOURNEMOUTH
                                                INTERNATIONAL CENTRE                                BEACH & PIER                                                   PAVILION THEATRE
                                                   0.1 MILES SOUTH ▼                          0.2 MILES SOUTH ▼                                                  0.1 MILES SOUTH ▼

Outline for indicative purposes only.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
BASINGSTOKE
                                                                                                                                      A350
                                                                                                                          A36
                                                                                                                                                                                                                                                            A338

NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ                                                                                 LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
                                                                                                                                                                                                                                                                                                                    A34

                                                                                                                                                                                                                                                                                                   ANDOVER                                     M3
                                                                                                                A361
                                                                                                                                                            A36
                                                                                                                                                                                                                                   A303                                                                                    A303

                                                                                                                                                                                                                                                                                                                     A34
                                                                                                                                                                                                             A36                           A338
                                                                                                A37
                                                                                                                                                                                                                                                                                                                                                                   A31

                                                                                                                                                                                                           SALISBURY                                                                                       WINCHESTER
                                                                                                                 A303

                                                                                                                                                                                                                                                              A36                                                    M3

                                                                                                                                      A350                                                                                                                                                                                                                                       A3

                                                                                                                                                                                      A354                                         A338
                                                                                           YEOVIL                                                                                                                                                                                  M27              M271
                                                                                                                                                                                                                                                                                                       A33
                                                                                                                                                                                                                                                                                                    SOUTHAMPTON
                                                                                                                                                                                                                                                                                                                                M27                                      A3(M)
                                                                                                                                                                                                                                                                   LYNDHURST
                                                                                                A37                                                                                                                                          A31
                                                                                                                                                                                                                                                                                                                                                                               A27
                                                                                                                                                  A350
                                                                                                                                                                                                                                                             NEW FOREST
                                                                                                                                                                                                                                                            NATIONAL PARK

                                                                                                                          A354                                                                                             A338                                                                                                                 PORTSMOUTH
                                                                                                                                                      A31
                                                                                                                                                                                                    A348
                                                                                                                                                 A35
                                                                                                                                                                                                                         CHRISTCHURCH
                      CENTRAL GARDENS
                                                                                                A35       DONCASTER                                                     POOLE BOURNEMOUTH

                                                                                                                                                                                                                                                                                                                    ISLE OF WIGHT
                                                                                                         A354

                                                                                                                                                                                        SWANAGE                                                                                                                                                                                  21.9m
                                                                                                       WEYMOUTH
                                                                                                                                                                                                                                                                                                                    The Norfolk Royale
                                                                                                                                                                                                                                                                                                                            Hotel

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                                                                                                                                                                                                                                                      © Crown Copyright, ES 100004106.
                                                                                                                                                                                                                                                                                   Posts For identification purposes only.

                                                                                                                                                                                                                                                                                                      10
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                                                                                                                                                                                    Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:806

                                                                   LOCATION
                                                                   The attractive and prosperous town of Bournemouth is a major commercial and tourist destination located on the South Coast of England.
                                                                   The town, together with Poole and Christchurch, form the Dorset conurbation and is one of the largest and most affluent conurbations
                                                                   along the South Coast. Bournemouth is located approximately 100 miles (160 km) south west of London, 50 miles (80 km) west of
                                                                   Portsmouth, 30 miles (48 km) west of Southampton, 40 miles (64 km) south west of Winchester and 6 miles (9.6 km) east of Poole.
                                                                   Bournemouth benefits from excellent transport communications being situated on the A348 which links with the A31 and then Junction 1
                                                                   of the M27 Motorway. The M27 connects Bournemouth to Southampton and Portsmouth to the east as well as London and the National
                                                                   Motorway network (via the M25) to the north. Bournemouth is also well connected to the west via the A35, one of the main arterial
                                                                   routes along the South Coast, linking Southampton to the east with Exeter and the M5 to the west.
                                                                   Bournemouth train station is located within the city centre, a five minute drive from the subject property, providing direct rail services into
                                                                   London Waterloo with a fastest journey time of approximately 1 hour 50 minutes. Regular train services run to Poole and Weymouth.
                                                                   Bournemouth International Airport is located approximately 4 miles north of the town centre while Southampton International Airport is
                                                                   located approximately 33 miles (53 km) to the north east.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ   LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS

                                                                          SITUATION
                                                                          The property is located in the heart of Bournemouth on the west side
                                                                          of Richmond Hill, adjacent to the town’s principle public square,
                                                                          ‘The Square’. Richmond Hill benefits from excellent accessibility
                                                                          connected to the town’s main arterial road the A338, providing
                                                                          direct access to the Town Centre. Bournemouth’s picturesque
                                                                          Central Gardens and Lower Gardens are located just south of
                                                                          the subject property.
                                                                          The property is situated a short 10 minute walk to Bournemouth’s
                                                                          beach front and pier, and provides easy access to the town’s
                                                                          two principle theatres The Pavilion and The International Centre.
                                                                          Richmond Hill, and the immediate surrounding area, are a popular
                                                                          leisure and retail location with The Odeon Cinema located in
                                                                          close proximity, alongside a number of national and independent
                                                                          occupiers including Debenhams, Sports Direct, Zizzi, New Look,
                                                                          Slug & Lettuce and Pizza Express.

                                                                          DESCRIPTION
                                                                          The property is arranged as a multi-storey car park over ground
                                                                          and seven upper levels (including two levels of rooftop parking).
                                                                          The car park is situated behind the predominately leisure and retail
                                                                          frontage of Richmond Hill with access to the car park from the west
                                                                          side of the street. The entrance to the car park is accessed via ground
                                                                          floor level whilst the car park’s point of exit is on level 2 alongside
                                                                          the car park’s staff accommodation. The stairwell is located at the
                                                                          right of the northern end of the property, which incorporates two lifts.
                                                                          The property provides a total of 236 car parking spaces and
                                                                          an approximate site area of 0.48 acres (0.19 Ha). The total
                                                                          floor area is shown in the accommodation schedule below.

                                                                          ACCOMMODATION (GIA)
                                                                           Level                               Sq M*                      Sq Ft*
                                                                           Ground                               640                       6,889
                                                                           1                                    911                       9,806
                                                                           1A                                   740                       7,965
                                                                           2                                    894                       9,623
                                                                           2A                                   742                       7,987
                                                                           3                                    905                       9,741
                                                                           3A                                   619                       6,663
                                                                           4                                    814                       8,762
                                                                           Total                               6,265                     67,436
                                                                          *Measurements are approximate and for indication only – not to be fully relied
                                                                          upon. Any interested party should carry out their own measured survey.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ                                                                                                              LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS

              DRIVER DEMAND

     HEART OF                                            BOURNEMOUTH’S                                                    CONVENIENT                                                               BOURNEMOUTH
     BOURNEMOUTH                                         PRIME RETAIL LOCATION                                            ACCESS                                                                   BEACH
     Conveniently located in the                         Situated in Bournemouth’s                                        The car park has direct Town                                             Bournemouth’s seven miles of sandy
     very centre of Bournemouth,                         primary retail location alongside                                Centre access from Bournemouth’s                                         beach and pier is a short 10 minute
     adjacent to the ‘The Square’ and                    a number of national multiples                                   main arterial road the A338,                                             walk from the subject property and is
     Bournemouth’s central Gardens.                      and independent retailers.                                       offering convenient central access.                                      the Town’s most popular attraction.

     RESTAURANT HOT SPOT                                 CINEMA & THEATRE                                                 LOCAL TOURISM                                                            CAR OWNERSHIP
     The car park is adjacent to Zizzi,                  The state of the art Odeon BH2                                   Bournemouth attracts 5.8 million                                         The level of car ownership in
     Slug & Lettuce and Pizza Express with               Cinema Complex is located across                                 day visitors per year, many of                                           Bournemouth is significantly above
     a number of independent restaurants                 The Square and Bournemouth’s                                     those arriving by car. There is                                          average with a particularly high
     and cafes in close proximity.                       Pavilion Theatre and International                               almost no parking near the                                               proportion of 2 car households.
                                                         Centre are a short walk to the south.                            beach itself.

                                                   DEMOGRAPHICS
                                                   Bournemouth has a residential population of 187,503 and a        The town is an important destination for tourists with an estimated      firms including Standard Life and JP Morgan Chase. The service sector
                                                   primary shopping catchment of 172,000, ranking the town 46th     1.06 million staying visitors and 5.82 million day visitors each         accounts for approximately 80% of total employment in Bournemouth,
                                                   of the PROMIS Centres. Bournemouth is an affluent town with an   year. The South West Research Company reported in 2015 staying           of which financial and business services accounts for approximately
                                                   above average proportion of adults of working age categorised    visitors spend approximately £287m.                                      28%. Bournemouth is also home to two universities, Bournemouth
                                                   within the most affluent AB social group, with high levels of    Bournemouth is a major conference venue and also plays an                University and Arts University Bournemouth, and has a growing
                                                   employment, car and house ownership.                             important role as a back office location for a number of international   student population in excess of 17,000 students.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ                                                                                                                        LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS

     TENANCY
     The property is let in its entirety to National Car Parks Limited on a full repairing and
     insuring lease for a term of 34 years and 11 months (no breaks) from 29th June 2002
     to and including 28th May 2037(18.2 years unexpired). The current passing rent is           TENANT COVENANT INFORMATION
     £305,483 pa rising to a minimum of £310,065 pa in June 2019 reflecting £1314
                                                                                                 NCP is the UK’s most recognised and longest standing private car park operator   A post-acquisition risk evaluation conducted by Dun & Bradstreet rated NCP
     a space – the Vendor will top up the rent to the minimum uplift from completion.
                                                                                                 being founded in 1931. NCP operates car parking spaces across the UK at over     5A 1, the highest available rating, highlighting the marked improvement in credit
     The lease benefits from annual Retail Price Index linked rent reviews, with a collar        500 sites for approximately 150,000 cars, possessing a 30% market share.         quality following the acquisition. National Car Parks Limited has an Experian
     of 1.5% and a cap of 5%. The tenant has an option to renew the tenancy for a                NCP Limited is jointly owned by Park24 and the Development Bank of Japan         Credit Rating of 100 - which indicates a ‘Very Low Risk’. National Car Parks
     further 20 years on identical terms, at the rent then passing. The lease is Outside         (DBJ), both investment grade rated businesses with substantial cash generation   Limited’s financial results for the last 3 years are summarized below:-
     the 1954 Landlord & Tenant Act.                                                             potential and cash/capital reserves relative to the NCP Group.
                                                                                                                                                                                  Year Ending                    Turnover         Pre Tax Profit         Net Worth
                                                                                                 The joint venture (JV) purchased NCP Limited in July 2017 for an indicative
                                                                                                 enterprise value of £440 million. As part of the Acquisition 100% of the NCP     31/03/2017                 £211,461,000         £24,793,000        £210,138,000
     TENURE
                                                                                                 Group’s external debt was repaid. (Park24 is a listed Japanese company based     25/03/2016                £202,703,000          £28,001,000        £186,896,000
     Virtual Freehold. Held for a term of 999 years, commencing on 23 July 2002                  in Tokyo, and is a major parking operator with over 1 million spaces in 19,000
     for a term of 999 years and expiring on 22 July 3001 (thus having some 983 years            sites across 8 countries). DBJ is a Japanese Government owned financial          27/03/2015                £198,736,000          £14,859,000        £156,973,000
     unexpired), at a total head rent of £10 per annum.                                          institution with a strong track record in infrastructure finance.
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
RUNNING YIELD ASSUMING AN ANNUAL                                                                         Year              Rent                NIY                  2024          £359,450              6.09%                  2029           £416,701              7.06%                 2034           £483,071              8.18%
AVERAGE RPI LINKED UPLIFT OF 3% AND                                                                      2020           £319,367             5.41%                  2025           £370,234             6.27%                  2030           £429,202              7.27%                 2035           £497,563              8.42%
                                                                                                         2021          £328,948              5.57%                  2026           £381,341             6.46%                  2031           £442,079              7.48%                 2036           £512,490              8.68%
A PURCHASE AT 5.2% NIY.
                                                                                                         2022           £338,816             5.74%                  2027           £392,781             6.65%                  2032           £455,341              7.71%
                                                                                                         2023          £348,981              5.91%                  2028          £404,565              6.85%                  2033           £469,001              7.94%

VAT                                                                                                    PROPOSAL
The property has been elected for VAT and it is anticipated that the
transaction will be treated as a Transfer of a Going Concern (TOGC).
                                                                                                       Offers sought in excess of £5,540,000 (Five Million Five Hundred and Forty Thousand Pounds) subject to
                                                                                                       contract and exclusive of VAT. This reflects a net initial yield of 5.25%, after allowing for purchaser’s costs of 6.63%.
DATAROOM
For access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/NCPBournemouth                                                 For further information or to make arrangements for viewing please contact:

                                                                                                       Liam Stray                          Richard Lea                         Henry Tye
                                                                                                       020 7543 6769                       020 7543 6832                       020 7543 6737
                                                                                                       liam.stray@allsop.co.uk             richard.lea@allsop.co.uk            henry.tye@allsop.co.uk                    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. Allsop is the trading name of Allsop LLP.                                                                                                                                                                                                                        Design CommandD www.commandHQ.co.uk 03.19
NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
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