HEREFORD, HR1 2AA 12/13 High Town, Prime Retail Investment Let on new 5 year leases at re-based rents - Joiner Cummings
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12/13 High Town,
HEREFORD,
HR1 2AA
Prime Retail Investment
Let on new 5 year leases at re-based rents.
INVESTMENT SUMMARY
• Hereford is a historic Cathedral City and is a strong retail ! "#$ $% &%'($)*( +),#-%'.# )(/ 0)1# 2#$)*3 4,%/'5*(6 ! "#$%&'()'* #++,- +'-&% ./,-0(1 2#&#-, +.&,()'* 2.-
centre with a large catchment. 789:;&
commitment to the premises. >H*>-G:# I#A J&%G>8 K%#8= (. LMNOP
• Conveniently located between the Maylord Shopping
Centre and Widemarsh Street.
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12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
LOCATION Pe
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Hereford is a Cathedral City and the county The M50 is located 20 miles (32 km) to the south east
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town of Herefordshire situated on the River Wye of Hereford and links directly to the M5 (Junction11) Blackf
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Cano riars St
Stree
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approximately 28 miles (45 km) south west of located approximately 10 miles (16 km) further to the
Cana
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by
Worcester, 28 miles (45 km) north west of Gloucester east of Hereford which provides access to Birmingham
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and 58 miles (93 km) north east of Cardiff. to the north and Bristol and Exeter to the south. erc
w
Catherine Street
mm
Rd
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A438 Co
MAYLORD
A 4 38
Hereford benefits from good road communications Hereford Railway Station is located on the Welsh SHOPPING
CENTRE
tree
with the A49 providing access north and south, the Marches Line and provides direct services to
Maylo rd St
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Str
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A4
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A438 providing access east and west and the A465 Birmingham New Street and Cardiff Central with e rc
ia
St HOSPITAL
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38
mm ha re
Bewell Street Co e t
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High Street St
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proving access north east and south west. a fastest journey time of 1hour 30 mins and High Town
Ga et
Friars Stre
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West Street
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59 minutes respectively.
Ea st Street
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treet
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Berringt
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Off
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Church Street
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BIRMINGHAM
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M69 Ki ng Street
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Coventry M6
A49 Northampton
Cambridge
SITUATION
HEREFORD M1 12/13 High Town is situated in prime pitch on the northern
A4103
A438
side of the pedestrianised High Town. High Town, along with
A438 Milton
Keynes High Street forms the principal retail area of Hereford city
M50 M40 centre, nearby occupiers include Costa, M&S, Monsoon,
A465 A49
A1(M) WH Smith, Lloyds Bank and O2.
Ross-on-Wye Gloucester
M11 Hereford Retail Market takes place every Wednesday and
M5 Oxford
Saturday on the High Town and Commercial Street area
M25 trading from 9am to 4pm. Hereford Produce and Craft Market
Newport
takes place every Thursday and the first Saturday in the
month along the High Town from 9am to 3pm. This results
M4 LONDON
Cardiff Reading in significant footfall to High Town and the property on
M4
Bristol market days.
Bath
M25
M3
M23
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
M27
DEMOGRAPHICS
The population within the Hereford primary catchment government’s Growth Deal, to help fund a new university
area is 267,000 with an estimated shopping population of in Hereford. Universities minister Jo Johnson announced
141,000. There are approximately 5.1 million visitors to funding of up to £15 million over three years to support
Herefordshire per year with Hereford Cathedral attracting the establishment of The New Model in Technology and
more than 50,000 visitors per year. Engineering (NMiTE). The university will make Herefordshire
a more attractive place for young people to live and study,
The level of car ownership in Hereford is significantly above
and will revitalise the county’s economy. The university aims
average with a particularly high proportion of 2 cars per
to open its doors to the first 300 students at a purpose-built
household.
city centre campus in Hereford in September 2020. It will
In March 2017, the county secured £8 million of funding have 5,000 students by 2032
from the Marches Local Enterprise Partnership through the
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
RETAILING IN HEREFORD
Maylord Shopping Centre
(Market)
For indicative purposes only.
Address Tenant Transaction (Date) Rent (£/sq ft ITZA)
Town centre retail floorspace in Hereford is estimated at 1.29 million sq ft. Hereford’s main
28 High Town Shoon OML (Circa Sept 2016) £ unknown (£70)
shopping centre, The Maylord Shopping Centre opened in 1987 and comprises 150,000 sq
29 High Town Eurochange Ltd Experian Goad
OML (January 2016) Plan Created:
£20,000 (£69) 21/11/2016
ft, occupiers include Boots Opticians, Laura Ashley, The Body Shop and Sports Direct.
50 metres
Created By: Cooke Arkwright
4-5 High Town Coffee #1 OML (November 2015) £65,000 (£74)
The £90 million Oldand
Copyright Market retail andExperian,
confidentiality leisure development
2016. © Crownincopyright
Hereford City
and centre opened in
database For more information on our products and services:
rightsyear
2016. OScrowned
100019885 57-58 Commercial Street The Works LR (April 2015)
www.experian.co.uk/goad £50,000 (£57.00)| 0845 601 6011
| goad.sales@uk.experian.com
2014 and that was “New Centre of the Year” at the British Council of Shopping
14-15 High Town Costa Coffee OML (December 2014) £75,000 (£70)
Centres annual dinner. The scheme comprises 357,000 sq ft and is anchored by Debenhams,
Next and H&M as well as a 6 screen Odeon Cinema. 16-18 High Town River Island LR (June 2014) £110,000 (£68)
61 Commercial Street Tredz LR (March 2014) £ unknown (£67)
Rents of up to £120 Zone A have historically been achieved in Hereford, but have since fallen
27 High Town A G Retail Ltd OML (March 2013) £90,000 (60)
back to £67.50-£77.50 psf Zone A as detailed on the below comparable transactions:
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
DESCRIPTION/ ACCOMMODATION
12 High Town (Mountain Warehouse) and 13 High Town (Game Retail) comprises two large ground floor retail units each benefiting from ancillary accommodation.
12 High Town has the benefit of rear servicing. The property is Grade 2 listed.
The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following areas:
12 High Town: sq m sq ft 13 High Town: sq m sq ft
Ground Floor ITZA 76.59 824 Ground Floor ITZA 77.86 838
Ground Floor 209.84 2,259 Ground Floor 133.00 1,432
First Floor – ancillary 48.31 520 First Floor – ancillary 84.36 908
Basement – unusable 280.29 3,017 Second Floor – ancillary 122.72 1,321
TOTAL 538.44 5,796 TOTAL 340.08 3,661
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
TENANCY
The property is let to 2 tenants producing a total income of
£125,600 per annum with a combine WAULT of 4.60 years
to expiry and 2.60 years to break:
12 High Town is let to Mountain Warehouse Ltd on a new 5
year term from 8th November 2017 expiring 7th May 2023.
As part of the recent lease re-gear the rent has been rebased
(from £119,000 pa.) to £65,000 per annum (£76.40 ITZA)
payable monthly in advance. Tenant break 8th May 2021 on
6 months’ notice subject to 6 weeks rent break premium.
Mountain Warehouse have been in occupation since 2007.
13 High Town is let to Game Retail Ltd for a term of 5 years
from 8th January 2018 expiring 7th January 2023. As part
of the recent lease re-gear the rent has been rebased (from
£110,000 pa.) to £60,600 per annum (£72.30 ITZA) payable
monthly in advance. Tenant break 8th Jan 2021 on 6 months’
notice subject to 3 months’ rent break premium. Game Retail
have been in occupation since 2002.
TENURE
Freehold. The Property is Grade 2 Listed. A copy of the
registered title is available on request.
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
COVENANT
Mountain Warehouse Limited (Company no.: 3417738)
Mountain Warehouse are one of the leading outdoor clothing and equipment retailers
in the UK with over 230 stores and a sizeable on-line presence.
Mountain Warehouse Limited’s ultimate parent company is Mountain Warehouse
International Limited, which is predominately owned by Mark Neale who founded the
business in 1997. In 2013 Mark Neale led a management team buyout of the business
from Lloyds Banking Group’s for £85m.
Over the last few years the company has been expanding its presence overseas and
opened stores in Canada, North America (23), Germany (2), Ireland (3) and Poland (10).
Mountain Warehouse Limited
Y/E 28/02/2016 Y/E 28/02/2015 Y/E 28/02/2014
Turnover £141,403,000 £109,894,000 £91,720,000
Pre-Tax Profits £16,246,000 £11,946,000 £9,660,000
Game Retail Limited (Company no.: 7837246)
Shareholder’s Funds £50,636,000 £35,469,000 £27,315,000
Game Retail Limited (Game) is ultimately owned by Game Digital Plc. Game is the
leading specialist games retailer in the UK with 313 stores (2015: 319).
In March 2012, Game went into administration and half of the UK stores were closed
with immediate effect and the business was sold to OpCapita, a private equity firm, in
April 2012. In June 2014, OpCapita having implemented a turnaround plan sold the
business via a £340m IPO of Game Digital. For the year ending 30/07/2016, Game
Digital Plc reported turnover of £822.5m (2015: £866.6m), pre-tax profits of £4.9m
(2015: £25.8m) and a net worth of £129.9m (£126.2m).
Game Retail Limited
Y/E 30/07/2016 Y/E 25/07/2015 Y/E 26/07/2014
Turnover £583,890,000 £651,828,000 £644,664,000
Pre-Tax Profits £6,868,000 £23,888,000 -£14,235,000
Shareholder’s Funds £106,946,000 £70,371,000 £70,382,000
12/13 High Town, HEREFORD, HR1 2AA Prime Retail Investment
EPC VAT PROPOSAL
12 High Town: C 72 The property is registered for VAT. It is anticipated that the We are seeking offers in excess of £1,580,000 (one million five hundred and eighty thousand
sale will be treated as a Transfer of a Going Concern (TOGC). pounds), subject to contract and exclusive of VAT. A purchase at this price equates to an
13 High Town: D 82
attractive net initial yield of 7.49% assuming standard purchase costs.
FURTHER INFORMATION
Peter Flanders
peter.flanders@joinercummings.co.uk
John Blackwell
Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline
john.blackwell@joinercummings.co.uk for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension 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 are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as
to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we
give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution
Telephone: 020 7409 7828 and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection; (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT)
and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty
whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is September 2018.
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