CAMBRIDGE | EXCITING SHOPPING CENTRE INVESTMENT OPPORTUNITY
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CAMBRIDGE | EXCITING SHOPPING CENTRE INVESTMENT OPPORTUNITY
INVESTMENT CONSIDERATIONS
• Cambridge is considered one of the most desirable cities in the UK within which to own commercial property investments.
• The city’s core strengths: its large, affluent and rapidly expanding catchment, its world renowned university and its huge tourist industry make Cambridge one of the strongest regional
economies in the UK.
• The city is considered Britain’s pre-eminent research and development centre and has an established reputation as one of the world’s leading high technology business clusters.
• Over 17 million tourists visit the city every year, boosting the already affluent and rapidly growing catchment population.
• Each of these strengths combine to give Cambridge one of the highest employment rates in the UK and the city continues to deliver exceptional growth across all of the
property sectors.
• The Grafton Centre is a key retailing location in its own right, conveniently situated on the east side of the city centre.
• The Centre is located in an area known as The Kite, a key area designated for further retail development within the local plan.
• The Centre comprises nearly 500,000 sq ft of retailing accommodation in 84 units with 1,150 car parking spaces.
• Anchored by Debenhams, the centre houses key retailers such as Next, H&M, TopShop and New Look in addition to an 8 screen Vue cinema.
• The centre benefits from an existing planning consent for a substantial refurbishment and re-modelling project. A purchaser will have the opportunity to initiate exciting plans to
re-invigorate Grafton to once again become the favoured shopping destination for the wealthy local population.
• The property currently produces a total gross passing rent of £7,002,463 per annum with a net passing rent of £6,137,760 per annum. 92% of income is secured against national multiple
retailers with 76% of the income expiring in excess of 5 years. The Weighted Average Unexpired Lease Term until lease expiry is just over nine years (or to six years excluding the
anchor tenants).
• We are instructed to seek offers in the region of £92,500,000, which adopting our opinion of ERV and taking purchaser’s costs at 5.80% reflects the following approximate yield profile:
Net initial yield: 6.25 %
Nominal equivalent yield: 7.30%
True equivalent yield: 7.64%
CAMBRIDGE | EXCITING SHOPPING CENTRE INVESTMENT OPPORTUNITY
LOCATION
The world famous city of Cambridge is rich in history and EDINBURGH
boasts one of the most vibrant economies in the UK. The city is
renowned for having one of the world’s leading institutions
NEWCASTLE UPON TYNE
for education. The city is also Britain’s pre-eminent research
and development centre and is widely recognised as one of the
world’s leading high technology business clusters.
The dynamic and charismatic city of Cambridge is the
administrative centre for the county and is located approximately MANCHESTER
65 miles north of London, 58 miles south west of Norwich and
43 miles south east of Peterborough.
PETERBOROUGH NORWICH
BIRMINGHAM
CAMBRIDGE
CARDIFF LONDON
CATCHMENT AND DEMOGRAPHICS
Cambridge has a large, loyal and affluent primary catchment population of 557,000
people, ranking it 28th of the 200 Promis retail centres in the UK. Between 2001 and 2011
Cambridge was ranked the 4th fastest growing city in the UK and it is expected to see
population growth significantly above the national average over the next few years.
This population growth will be supported by the East of England’s plan, which requires
a further 14,700 new houses to be built in Cambridge by 2021. There is currently
exceptionally strong demand for housing in the city. The 2015 Centre for Cities report
states that Cambridge is one of only 3 UK Cities where house price growth between 2013
and 2014 increased by in excess of 10%.
Cambridge Acorn Profile
25% Wealthy Achievers Urban Prosperity Comfortably Off Moderate Means Hard-Pressed
20%
15%
10%
5%
The Cambridge catchment population is one of the most affluent in the country, ranked 16th
of the 200 Promis centres on this measure. CACI data shows that the Cambridge shoppers
0%
are overrepresented in the following social categories: wealthy executives, flourishing
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Cambridge East of England UK
Cambridge contains a particularly high proportion of young adults aged 15-24. The high
proportion of young adults reflects the large student population with around 15,500 full
time students at the University of Cambridge. Incorporating students from the Anglia
Ruskin University and many independent learning institutions, the student population
would account for 27% of the total population of Cambridge. Students are of a significant
benefit to Cambridge’s economy as they have significant spending power and they benefit Cambridge has a large, loyal and
from more leisure time and money than any other sector in the youth market.
affluent primary catchment population...
LOCAL ECONOMY
Over the last 30 years the Cambridge economy has experienced dramatic growth. It is at the
heart of one of the most dynamic sub regions within the UK and is widely recognised as a leading
location in the world for research and development (R&D). The 2014 Centre for Cities Report states
that Cambridge saw the largest increase in jobs between 2004 and 2013. This is often attributed
to the presence of the University of Cambridge, which ranked 2nd internationally in the 2012 QS
World University Rankings behind only Massachusetts Institute of Technology and ahead of Harvard
University and University College London.
Cambridge is situated within a government identified area for sustainable economic growth and is
the fastest growing region in the UK outside of London as a result of the world-leading high
technology business cluster and business opportunities from the University’s transfer of technology.
Major employers in the R&D sector include ARM Holdings, which employ over 1,700 people, and
Cambridge Antibody Technology, which employs around 570 people. The main activity focuses on
the Cambridge Science Park, located two miles north of the city centre, where there are around 90
companies employing over 5,000 people. Astra Zeneca have announced that it will be moving its
global headquarters to Cambridge in a new £330 million facility creating 2,000 new jobs.
Cambridge is also home to a number of high profile medical research institutes, including Cancer
Research UK, The Wellcome Trust Sanger Institute with over 800 staff and the Babraham Institute
which employs over 300 staff, all taking advantage of the research expertise available in the city.
In addition to R&D there is a high proportion of people employed within the finance and business
services sector, which is partly due to a large number of firms providing professional expertise
or technical support to the many start-up companies that characterise Cambridge’s economy.
Major employers include Deloitte, PwC, Grant Thornton, Brossard De Bayle and Throgmorton
Private Capital.
The University of Cambridge has been established for over 800 years and is the city’s single largest
employer. There are 32 Colleges and over 150 departments incorporated within the University
campus. The University, Colleges, Cambridge University Press and Cambridge Assessment
collectively employ over 11,700 people directly and indirectly support more than 77,000 jobs in the
region. Cambridge University is very well funded and the generosity of benefactors has enabled the
University to create a new science and technology campus to the west of the city centre. The
University is now looking to expand to the north west of Cambridge. The city has a number of other
higher education establishments and several hospitals, including Cambridge University Hospitals,
which employs over 7,000 people.
...at the heart of one of the most
dynamic sub regions within the UKCambridge’s economy benefits from having an innovative workforce. In the UK, the city has more
patents per 100,000 residents approved (94.5%) than the next ten most innovative cities combined,
including Edinburgh, Oxford, Aberdeen and Milton Keynes (Centre for Cities, Cities Outlook, 2015).
The Cambridge economy is boosted further by a huge tourist industry. It is estimated that
approximately 17.2 million people visit the city each year generating £1.594 billion for the local
economy. The tourist sector is also a major employer with over 6,500 jobs sustained by tourism in
Cambridge and the surrounding area.
With a strong local economy and employment base, the recession has had less of an impact on
employment levels within Cambridge than across the UK generally and consequently unemployment
in Cambridge is significantly below average. Cambridge experienced the second highest employment
rate in the whole of the UK between July 2013 and June 2014 and had the lowest JSA claimant count
at 0.7% compared to the UK average of 3.8% (Centre for Cities Report 2015).
The buoyant economy will continue to grow, enhanced by three key developments within Cambridge.
To the south of Cambridge, close to Addenbrookes Hospital, an additional 4,000 new homes have
planning permission. To the north west of Cambridge, towards Madingley, around 83 hectares of land
owned by the University of Cambridge is being developed to provide 3,000 new homes and other
key services such as a library and a medical centre. To the north east of Cambridge, in Chesterton,
there is to be significant development of office space, light industrial units and a new £26m railway
station. This station will be on the main line between Cambridge and Ely and will benefit from direct
trains running to London Kings Cross and London Liverpool Street, Norwich and King’s Lynn. It is
anticipated that the station could be delivered by 2015 and that after three years of being operational
it will be used by circa 800,000 people.
...circa 17.2m people visit the city each year generating
£1.594 billion for the local economyNantwich A500 on-Trent
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Cambridge benefits from an extensive transport network with the M11 providing a direct route
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Cambridge benefits from convenient access to Stansted Airport, which is 30 miles to the south of
the city and is accessed via the M11. Cambridge also has its own airport used mainly by business
and training flights.RETAILING IN CAMBRIDGE Cambridge is one of the leading retail destinations in the UK with the city’s vibrant economy supporting a diverse, thriving retail offer. The city provides approximately 1.49 million sq ft of retail floor space, of which 39% of this is managed floor space. Cambridge’s total in-store comparison retail expenditure stood at £1.45bn in 2014 ranking it 24th in the UK. A high proportion of spend is retained in Cambridge since it is some distance from major competition and these centres provide a weaker retailing provision. The historic retail core of Cambridge is centred on Petty Cury, Market Hill and Market Street, with Trinity Street to the west and St Andrews Street and Sidney Street to the east. These streets form the natural prime shopper circuit and have an exceptionally high level of footfall. Rents in Cambridge have grown, on average, by 5% year on year since 1987 (Source PMA). Cambridge’s historic core has a strong fashion offer with a particularly high number of the upper end fashion retailers including Reiss, Jigsaw, Jaeger, Joules, French Connection and Jack Wills. However, the colleges, churches and other historic buildings dominate the city centre and large, modern shop units are not easily accommodated within this environment.
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UNIVERSITY
There are three shopping centres in Cambridge: The Grafton, positioned at the start of the short walk across Christ’s Pieces
Grand Arcade and Lion Yard. The Grand Arcade opened in 2008 to The Grafton. Fitzroy Street leads directly from Christ’s Pieces
and links into the Lion Yard, Petty Cury and Sidney Street. The to the main entrance to The Grafton on the corner of Burleigh
Grand Arcade provides a high end, premium retail offer and is Street and Fitzroy Street. This whole area benefited from the
anchored by a John Lewis department store. Other key retailers opening of Primark on Burleigh Street in 2009, which dramatically
include Russell and Bromley, Gant, Links of London, Ted Baker increased the foot flow. Fitzroy Street has further benefited from
and Hollister. Target tenants for the scheme are high end the opening of a new format Waitrose convenience store.
retailers, predominantly international retailers who are looking
to diversify outside of London. Lion Yard is connected to The The Grafton is anchored by Debenhams and BHS and is
Grand Arcade, essentially forming a single shopping centre. It is primarily focused on main stream high street retailers and young
anchored by New Look on the first floor of the scheme and other fashion. The centre also benefits from an 8 screen multiplex
retailers include Superdry and Sportsdirect. Vue cinema and a food court, as well as offering significant
parking. Being located on the edge of the traditional city centre,
Christ’s Lane, which was developed in 2007, further enhances this area benefits from fewer historic buildings restrictions and
the retail offer in Cambridge with tenants including Zara, H&M importantly is much less congested.
and the recently opened Metro Bank. This development isRETAIL PARKS RETAILING COMPETITION
There are two significant retail parks in Cambridge. Cambridge Retail Park, to the east of the city There is very little leakage of spending from the Cambridge catchment due to the distance to
centre provides the main out of town provision with retailers including Boots, Burton/Dorothy Perkins competing towns, their generally weaker retailing provision and the loyal and affluent catchment.
and Argos. Adjacent to Cambridge Retail Park there is a small cluster of retail warehouses with The main competitor is Peterborough, which is around a 50 minute drive to the north west and has
tenants including B&Q, Staples and DFS. a significantly lower representation of multiples and lacks the range of up-market and speciality
retailers that are present in Cambridge. To the south, Luton is 38 miles away and to the west,
Further along Newmarket Road is the Beehive Centre, which was built in the 1980s. The park is Northampton is 60 miles and to the east, Ipswich is 54 miles. All of these locations offer an inferior
anchored by Asda, alongside Hobbycraft, Maplin, TK Maxx, HomeSense and Next Home. retail provision to Cambridge.
Cambridge Leisure Park is the only leisure park in Cambridge and is located on the south eastern
edge of the city centre. The park is anchored by Cineworld, LA Fitness and Tenpin alongside a
number of A3 operators including Nando’s and Frankie & Benny’s. There is also a Travelodge and
Tesco Express.
Cambridge sees very little leakage
of spending from its catchmentTHE GRAFTON
The property is located to the south east of the historic core,
on the corner of Burleigh Street and Fitzroy Street in the heart of
an area known locally as The Kite. The Kite area was originally
identified in 1959 by The University of Cambridge as being the
ideal location for a regional shopping centre as it was easily
accessible from the Cambridge ring road and its location outside
the city centre would ease the pressure on Cambridge’s historic
core.
The property provides just under 500,000 sq ft of retail and
leisure space. The centre, together with Fitzroy and Burleigh
Street, create their own retail pitch, which is conveniently
accessed via car or public transport and benefits from the
presence of Primark. The Centre further benefits from its
proximity to Anglia Ruskin University, which has recently
benefited from a £35 million refurbishment which has now been
completed and has re-opened in September 2011.
The Grafton Centre, together with Fitzroy and
Burleigh Street consists of just under 500,000 sq ft
of retail and leisure space across 84 unitsThe centre was originally built in 1983 but was refurbished and
extended in both 1995 and 2004. The covered centre is
principally arranged over one floor with a food court positioned
at first floor. There is one main mall running in a west to east
direction. There is also a small horse-shoe shaped mall at the
west end of the scheme, known as Eden Hall, which houses a
number of specialist retailers.
The centre is anchored by Debenhams located near the centre
of the scheme and BHS located at the eastern end. Other major
retailers include Next, H&M, New Look, Boots and Topshop.
There is also an 8 screen multiplex Vue cinema, which was
developed as part of the extension in 1995, and a food court on
the first floor, with retailers including Bella Italia, Café Lavazza
and Burger King.
The main entrance to the scheme is from Fitzroy Street, which is
a busy pedestrianised street that provides the main thoroughfare
between the city centre retail area and The Grafton. There are
also additional entrances from Burleigh Street (opposite Primark),
Napier Street, Wellington Street and East Road.
...anchored by Debenhams and BHS, with other key
retailers including Next, H&M, New Look and TopshopGROUND FLOOR PLAN
GAME
USCFIRST FLOOR PLAN
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(1000) (ESTIMATE
LIFTS
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TRADITIONA
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VACANTFITZROY STREET The retail units on the north side of Fitzroy Street are included in the vendor’s ownership. This well-used thoroughfare benefits from strong pedestrian footfall and key tenants in the street include a Little Waitrose, Patisserie Valerie, HMV and Caffé Nero.
RESIDENTIAL
The Grafton was built nestled into a residential area of Cambridge. It is therefore not surprising
that some of the space within the scheme and above the retail units is used for residential
accommodation. There are thirteen flats located above the retail units on Fitzroy Street. In addition
there are four flats that sit above the Eden Hall and are accessed from Burleigh Street. These
residential units are let on long leases and are effectively privately owned. Finally, above
the retail units to the north of The Grafton there are twenty two flats, accessed from Christchurch
Street, which are leased and run by King Street Housing Society Limited.
CAR PARK
The centre benefits from two large car parks that are managed and operated by Cambridge City
Council and provide approximately 1,150 car parking spaces. Grafton East multi-storey car park
provides 870 spaces and is accessed off East Road whilst Grafton West, which is situated off Fitzroy
Street, has two levels of parking providing 280 spaces.
The two car parks (Grafton East and Grafton West) are let on a long leasehold to Cambridge City
Council expiring in 2107 on a peppercorn rent. The City Council manage and run the car parks.
Current car parking charges in both car parks are as follows:
Length of Stay Monday to Friday Saturday
8am to 5pm 9am to 5pm
Up to 1 hour £2.00 £2.20
Up to 2 hours £3.60 £4.30
Up to 3 hours £5.50 £6.10
Up to 4 hours £9.10 £10.40
Up to 5 hours £16.50 £17.50
Over 5 hours £24.00 £24.00
Evenings and overnight £0.80 per hour £0.80 per hour
Season tickets Emissions based
The centre is also easily accessible by public transport. The bus interchange, which is located
immediately outside the East Road entrance to the scheme, was extensively upgraded in 2000 and
is serviced by four of Cambridge’s five park and ride services with buses every 10 minutes. This bus
interchange helps to contribute to The Grafton’s meaningful footfall.FOOTFALL The annual footfall for the centre in 2014 was 9,381,274, equating to an average weekly count of 180,409. 40% of the footfall enters the scheme from Fitzroy Street, 16% from Burleigh Street and 15% from the car park escalators.
tag
ENIN T
Cot
COUR
51
K GARDENS
12a
16
1
BRUN
G
12
ROAD
Burleigh House 43 NEWMARKET
Brunswick Walk
SWICK
6
45
11.3m 37
TERR
2
9
ry
b Sta Car Park
El Su
Surge
1
ACE
15 25
13 to 25 Posts
78
TC
CB
TCB
4
23 a 74
R
RE ET
EET to
SUN ST
72
17
73
76
2
42 70
Surgery PH T ROAD
ARKE
1
Denmore 9 to 11
NEWM
1a
7 7
Lodge
71 1 6
2
38 3
8
20
ry Duke
Dukes
ukes
65 Surge
1
30
Court
Cour
Cou
Cou
ou
urrt
Surgery
LB 66
STREET
T
55 12.7m
9
to
18
53 14 64
6
47 4 4a 28
2
80 15
WELLINGTON
N
3
1
33 37
10
5
PH
6
27 Cambridge
2
19
Christ Buddist Welling
ton
1 to 6
7
3
11 5 12
Centre
Church
66
ge
18
Passa
1
14
COMMERCIALISATION
4
68
62 2 1 Wellington
8
AY
5
SEW La Court
MAIDS CAU Tredgold
17
8
1 to 15
13
9
3 4
41
1
PO
1 3
NAPIER
40
1a
4
Byron
CHRISTCHU
50 8
6 House
7
LB
JAMES STRE
38
2a 3a
6
10
Cobble Yard
5
SEVERN PLA
STR
24
4
36
a
Hall
EET
6
In 2014 The Grafton generated £243,064 from commercialisation
37
8
RCH
64 8
El Sub Sta
7
4a 5a
ET
Causeway
7
Passage
STREET
36
2
12
CE
income. The majority of this income was generated from
10
35
9
14 13
LANE p
1 to 33
SALMON m
28 to 32
Ra
12
11
Space and People who contributed over £117,844.
34
1
Grafton West Stanton
13
120
11 to 12
Car Park House
PH
7
Posts
FAIR STR
Posts
Willow Place
5
NE
Multistorey Car Park Multistorey
Ramp
10
Car Park
LA
EE
(above)
4
T
Posts NE
FITZROY LS
y
Bd
Yard ON
West Service
TENURE
6a
41
ard
27 to 28 CL
39 40
e Area
38
OS
Fitzroy Lane Servic
W
21 20
d
26 to 26a
35
E
22
7
23
&
Un
Posts
ED
31 26
6b
FAIR COURT
30
1 to 9
Club
29
25b
5
12
25 25a
20 to 21 24 24a
LB
23
10 to 13
22
Eden 30
12
7 10
Grafton
Main Centre and 5, 7, 27 and 19-25 Fitzroy Street –
30a
Baptist 5 to 6 31a 31
1 to 4
32
37 39 36 to 40
Chapel 31 to 33 13 32a
17 19 to 23
25
Centre 16c 35
33
15 TCBs
Long Leasehold with stapled reversionary Freehold interest
11 13 55 101 to 106
1 5 66 47 41 to 44
(above)
et
Fitzroy Stre
65
35 55a 50 to 51 45
46 (above)
38 (above) 64 57
30a 32 34 71
TCBs
30
22 26 28 63
12 to 14 to Posts Eden Hall PCs 105
The purchaser will be sold a long sub-underlease at a fixed annual
8 75 62
58
LB
24
Bank
reet
1 to
TCBs
2 61
4
n St
Multistorey Garages
32
46
Ede
head rent of £2,085,000pa (without review) payable until expiry
ay
Roof
ackw
41
8 10
47
5
Car Park
CR
53
et B
9
Cinema
in December 2201 (approximately 186 years), together with the
Post 8
48
s Shelters
n Stre
9
11
11.3
52a
LB
52b
48a
9
m
1
8
South Service Yard
Ede
37
48b
reversionary freehold interest which will be “stapled” to the long
1
Hilde
74 13
to
to
49
62 BU
27
14
rst
RL
one Ho
EI
leasehold interest. Note: This sale structure is required to preserve
Glenmo
ESS
G
50
ers
H
5
33
5
12
Posts
PL
elt
3
48
use
Sh
to 6
AC
re
12.8m 17
E er
an intermediate long leasehold interest (to whom the head rent of
TCBs to
20 elt
47
Sh use
STAF
ton Ho
Whea
29
7
14
Bu
OAD
21
47a
9 7
22
rle
FORD
54
1
£2.085m pa is payable) that is vested in Prudential Annuities Ltd
61 1
El Sub Sta 23
Paradise ig
13
YR
to
57 h 24 C
RIS
46
16
Court St
8
5
CIT
SH
to
Post
1 to
re
8
PIN 8
et 25
IRE ST
25
16
56 PL
and which cannot be sold or otherwise determined.
Y
WA
45 55 26
AC
E
1
CK
to
8
PO
REET
47
BA
54
ET
RTL 28
AND
58
to
ET
RE
Shen
PLAC 30
E
E
52 Abbeygate House
ST
TR
8
21
Done
31
stone
68
NS
70
EN
8
43
51
s
33
E
ED
Post
ED
LB
41
34
gal
3
4
Burleigh Street shops, Abbeygate House and
50
Hous
to
PAR 86 TCB 36
7
16
AD
e
ISE
13
6
4 to
17
39
5
48
STR Posts
63
38
2
36
EE El
16
TCB
9-17 (odd numbers) and rear 31-39 Fitzroy Street
T Su
use
37
Gut 39 Ho
38
46 b
Fazeley
hrie Sta
8
35 Cou 80 84 88 14
1 to
rt 82 7
8
Ed 7
Co e n
87
13 13
36
16
1 to a
15
34
15
9
64
urt 45 10 5 14
TR ND
T
34 33 9
Carl
EE
ley
to
Faze e
ES A
2
44
65
1
Hunter
EV DAM
35
43
Hous
8
11
16
House Athlone
0m 50m 100m 150m
3
2
A
Kite
These are held separately as freehold assets.
House PH
1
3
7
67
9
11 to 48 40
.9 6 1 to 14
33
1
STAF
m
46
0
18
The
17
17
a
Old 40 35
Fo rg
44
36
A
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1539
31-39 Fitzroy Street
This plan is published for convenience of identification.
Any site boundaries shown are indicative only and
should be checked against Title Deeds.
ES753998
Is held on a 99 year leasehold interest from Jesus College
expiring on 28/09/2058 at a peppercorn rent.TENANCIES Income by Covenant Type Income Expiry Profile
The centre is let to 58 retailers and there are an additional thirteen 6% 2%
retailers on Fitzroy Street. The income from these retailers together 16% 23%
with the commercialisation revenue produces a current gross income
National 0-5 years
of £7,002,463 per annum. After the deduction of the PAL payment,
landlord’s shortfalls and landlord’s contribution to marketing the current
Regional 5-10 years
net income is £6,137,760 per annum.
New lettings have recently taken place to H&M, Topshop, Deichmann and Local 10-15 years
Patisserie Valerie. 92% 60%
The WAULT to lease expiry is just over 9 years (or to 6 years excluding
the long leases to the anchor tenants).
Income Expiry Profile (to breaks)
Currently 92% of the retail income is secured against national multiples,
with a further 8% secured against regional and local retailers. 76% of the
income is secured for in excess of 5 years. The graphs opposite show 16%
the income profile and the income profile to lease expiry.
0-5 years
55% 5-10 years
29%
10-15 years
New lettings to H&M, Topshop, Deichmann and
Patisserie Valerie have notably improved the centreSERVICE CHARGE The service charge year runs from 1 January to 31 December and the budget for 2015 is £2,666,757. The service charge is calculated on a weighted floor area basis. On an unweighted basis this equates to approximately £6.54 psf. CENTRE MANAGEMENT The centre management offices are located on the 2nd floor above New Look.
ASSET MANAGEMENT
The present owners have considered a number of options to both reconfigure parts of the Centre
and to refurbish the Mall. Planning consent for a refurbishment scheme was granted in 2009, though
not implemented at the time due to the financial downturn. That consent was renewed in 2012.
Whilst the principle of refurbishment has not proven contentious with the local planning authority, the
owners intend to undertake some of the consented works in order that the granted consent should
be deemed implemented in planning terms. No planning obligations will pass to any purchaser to
complete the originally consented scheme, thus allowing a purchaser freedom to identify their own
preferred improvement works, and to seek any necessary new statutory consents for such, with the
benefit of the previous consent in place and deemed to have been implemented.
Proposed Proposed
Create new centre entrance and reconfigure Eden Hall
Mall refurbishment opportunity
We believe there is enormous potential to improve the whole Centre by replacing and re-modelling
the main Grafton entrance from Fitzroy Street. Our client’s previously consented scheme envisaged Our client’s planning consent identified potential for a number of other works which could be carried
the installation of a new modern glazed entrance to improve the appeal of the centre, the lighting out to update The Grafton. Raised ceilings could improve the current retailers’ fascias, enabling them
within the scheme and to provide a more contemporary and elegant environment. to have full height glazing and consequently improving the sight lines within the scheme. Our clients
have considered a number of options ranging from relatively low cost ‘cosmetic’ works in various
There is also potential to provide a much higher roof to the mall area, which could dramatically targeted areas of the malls, through to more ambitious comprehensive schemes which, given the
enhance the entrance area and the Eden Hall space, which could at the same time be reconfigured to scale of the Centre and Cambridge’s growth potential, we feel could be warranted.
provide better configured larger units.
The higher ceilings would also provide the opportunity to create a food court to create a casual Possible Centre extension
dining area out of the current Eden Hall.
It should be highlighted that Cambridge City Council appear to have an emerging planning policy
which favours significant retail expansion in the ‘Kite’ area of Cambridge, in which the Grafton sits.
This might offer scope to expand the Centre towards or even onto Burleigh Street and/or the current
bus drop off points and site of Abbey Gate House. The West car park could also offer potential in
agreement with the Council. Further residential development on the site could also be considered,
subject to planning.
Food Court
The planning permission grants approval for improvements to the entrance from the bus station at
the rear of Grafton, including the installation of a new lift up to the cinema and food court at first floor
level. Re-configuring the food court and further enhancing the leisure provision in The Grafton by
attracting the likes of Wagamama and Nando’s would materially improve the destination as a whole.
Existing ProposedImproving sight lines within the scheme Let the vacant space
It may be feasible to enter into negotiations with Debenhams to take back some of the space at Building on the success of the re-anchoring of the scheme with the letting to H&M and Topshop at
the front of their unit, in exchange for giving them unit 35 to trade from which would significantly the rear, there is a renewed focus on letting the rest of the vacant space. There are currently 6 vacant
improve the sightlines within the schemes. This would also improve the foot flow throughout units. Target tenants for these units include: Ann Summers, Boux Avenue, Warren James, Body
the mall. Shop, Footlocker, Tiger, Toni & Guy, Clas Ohlson, Uniqlo, Decathlon and Peacocks.
Extension to 31/33 Fitzroy Street Potential to enhance commercialisation and ancillary income
The Entertainer is interested in taking occupation of 31-33 Fitzroy Street. The specification of this unit The opportunity exists to intensify and increase the comparatively modest levels of
could involve extending this unit to the rear. The plans are currently with the tenant to review ahead commercialisation within the scheme. This will be particularly relevant in Central Hall and Great Hall.
of a planning application being submitted.
Footlights Restaurant
There is currently a vacant restaurant at the entrance to the scheme which is just under 4,000 sq ft
of retail or leisure space. The opportunity exists to attract a new operator to this key area, enhancing
the scheme’s overall leisure offer. This unit will benefit from the landlord’s works to implement the
planning permission.
...opportunities to add value and drive growth in The Grafton through
executing the exciting asset management initiativesENERGY PERFORMANCE CERTIFICATES PROPOSAL
EPCs are available on request. We are instructed to seek offers in excess of £92,500,000, subject to contract for our clients freehold
and long leasehold interests.
Adopting our opinion of rental value and taking purchaser’s costs at 5.80%, this reflects the following
approximate yield profile:
WEBSITE
Net initial yield: 6.25%
Further information can be found on our website at www.graftoncentre-investment.co.uk Nominal equivalent yield: 7.30%
True equivalent yield: 7.64%
FURTHER INFORMATION
For further information please contact:
Charlie Barke
T: +44 (0) 20 7152 5027
E: charlie.barke@eur.cushwake.com
Imogen Bryan
T: +44 (0) 20 7152 5864
E: imogen.bryan@eur.cushwake.com
Dominic Hoole
T: + 44 (0) 20 7152 5707
E: dominic.hoole@eur.cushwake.com
Misrepresentations Act 1967 and Property Misdescriptions Act 1991
Cushman & Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer
or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the
agents(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) Floor areas,
measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive
of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents, is
free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own
investigations as required. March 2015. Designed by Creativeworld: 01282 858200.You can also read
