HIGH STREET 241/243 EXETER - PRIME BANKING INVESTMENT FOR SALE IN REGIONAL CITY CENTRE LOCATION - LoopNet
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PRIME BANKING 241/24 3 INVESTMENT HIGH STREET FOR SALE EXETER IN REGIONAL CITY CENTRE LOCATION
241/243 HIGH STREET | EXETER
INVESTMENT
SUMMARY
• Exeter is a dominant regional retailing
centre with an affluent catchment
and is the principal commercial centre
for Devon.
• 100% prime trading location
fronting the High Street, located
in between Princesshay and the
Guildhall Shopping Centres.
• Total building area of c. 14,034 sq ft.
• Let to Co-operative Bank for
another 7.25 years.
• Asset management opportunities
to consider conversion of the upper
floors to alternative uses.
• Co-op Bank and their subtenant
O2 both renewed their respective
tenancies in September/December 2018.
• Co-op Bank have been in occupation
for over 40 years.
• We are seeking offers in excess of
£3,000,000 (Three Million Pounds),
subject to contract and exclusive of
VAT which reflects a net initial yield
of 10.18%, after deduction of
standard purchasers costs.
241/243 HIGH STREET | EXETER
LOCATION
Oxford
Swansea High Wycombe
Swindon
M4
Exeter is a historic Cathedral and University City located in the south Cardiff Salisbury M4 LONDON
Bristol Reading
west of England and is the main commercial centre for Devon. Exeter
is located approximately 45 miles (72 kilometres) east of Plymouth, Bath
Weston-Super-Mare Guildford
81 miles (130 kilometres) south west of Bristol and 175 miles (280 Basingstoke
M25
kilometres) south west of London.
M5
Exmoor M3 Crawley
Exeter benefits from excellent transport links and is located 2 miles Barnstaple
National Park
Winchester
A303
west of the M5 motorway, with Junctions 29, 30 and 31 all providing A39
Taunton
access to the City Centre. To the west of Exeter is the A38 (Devon
Southampton
Express Way), giving direct access to Plymouth and the A30 to A31
Brighton
M5
Cornwall. The A30 also links to the A303 to the east, providing a EXETER A30 Portsmouth
trunk road connection to the M3 motorway and thereon to London. A30
Bournemouth
Newport
Dartmoor Exmouth
The City has two mainline railway stations, Central and St David’s,A39
National Park Weymouth
both of which have direct services to numerous towns and cities
A38
throughout the National Rail Network. The fastest journey time to
Newquay Torquay
London Paddington is approximately 2 hours and 30 minutes. Exeter
St Austell Plymouth
International Airport is located 6 miles (10 kilometres) toA390
the east of
the City, with a range of UK and internationalA30
flights to destinations
that include Madrid, Munich, Dublin,Penzance
Geneva, Nice and Edinburgh.
A394 Truro
241/243 HIGH STREET | EXETER
DEMOGRAPHIC
AND ECONOMIC
PROFILE
Exeter has an estimated primary catchment population
of approximately 508,000 and is categorised by
PMA as a Regional centre. The population is boosted
significantly by tourism, as well as a large student
population. The South West Tourism Alliance estimates
approximately 500,000 staying visitors and over
1.5-million-day visitors each year, spending in excess
of £166m per annum and helping to support 4,000
jobs. The estimated shopping population of Exeter is
337,000, ranking the City 26 of the Promis Centres.
In addition, Exeter University is one of the top Russell
Group universities in the country, which together with
Exeter College attracts in excess of 28,000 students.
The City has an affluent catchment, which ranks 18th
in the UK in terms of the volume retail spend available
in the catchment area. Exeter is also forecast to see
above average percentage growth in the available pool
of comparison spending between 2019 and 2024. The
per capita retail spending levels are significantly above
the Promis average (Source: CACI). The service sector
as a whole accounts for 53% of total employment in
Exeter and professional and business services and
finance sectors together account for an above average
13.2% of total employment. The City has strong
industry and service sectors, with the Met Office being
one of the three largest employers in the area, together
with the University and Devon County Council. Other
major private sector employers represented in Exeter
include EDF Energy, Flybe, British Telecom, Friends
Provident, Liverpool Victoria and Ernst & Young.
241/243 HIGH STREET | EXETER
SH
UR
OP
OD
Y
NORTH
241/243 HIGH STREET | EXETER
RETAILING IN EXETER SITUATION
Exeter’s central shopping area comprises an estimated Next and Hennes. The prime retailing is further enhanced The subject property is situated in a
1.3m sq ft of retail floor space, ranking the City 43rd in by the Aviva owned Guildhall Shopping Centre, which prime trading location on the north
the UK on this measure. The prime retailing thoroughfares is anchored by Primark and has recently undergone a west side of the pedestrianised the
are located within the pedestrianised section of the High significant £18m leisure extension called Queen Street High Street, opposite the Princesshay
Street, between the Guildhall Shopping Centre and the Dining, with new tenants including Franco Manca, Turtle Bay Shopping Centre. Nearby retailers
entrance to the Princesshay Shopping Centre. Princesshay and The Stable. include John Lewis, Marks and Spencer,
was developed by Land Securities and opened in 2007 Urban Outfitters and Hennes.
The development won the Revo Gold award for best
and extends to approximately 530,000 sq ft of retail
catering and Leisure destination in 2016.
accommodation, with key retailers including Zara, Hollister,
241/243 HIGH STREET | EXETER
DESCRIPTION
The property comprises a mid-terrace retail/office building
arranged on basement, ground and three upper floors.
The Co-operative Bank have underlet part of their demise
at 241 High Street to O2.
The property principally provides retail accommodation laid
out over ground floor and basement with ancillary offices
accessed internally and arranged over first, second and
third floors. Servicing and fire escape provision is to the
rear from Musgrave Row.
ACCOMMODATION
The property comprises the following approximate areas: -
Co-op Bank
Ground Floor Area 1,898 sq ft 176.32 sq m
Ground Floor ITZA 1,112 units
Basement Ancillary 2,793 sq ft 259.47 sq m
First Floor Offices 2,444 sq ft 227.05 sq m
Second Floor Offices 2,466 sq ft 229.09 sq m
Third Floor Ancillary 2,579 sq ft 239.59 sq m
Total Area 12,180 sq ft 1,131.52 sq m
O2
Ground Floor Area 1,343 sq ft 124.77 sq m
Ground Floor ITZA 789 units
Basement Ancillary 511 sq ft 208.66 sq m
Total Area 1,854 sq ft 172.24 sq m
Total Building Area 14,034 sq ft 1,303.75 sq m
Detailed working drawings are available on request.
241/243 HIGH STREET | EXETER
TENURE
The property is held long leasehold from Exeter City Council on full repairing and
insuring terms at a peppercorn rent for a term of 125 years from 29th September
1982 to expire 28th September 2107.
The head lease permits structural alterations with landlords’ consent, not to be
unreasonably withheld and the user clause within the headlease permits uses
within Class 1 and 2 of the Town and Country Planning Use Classes Order 1972.
TENANCY
The property is let on an overriding sublease to Co-operative Bank Plc for a term from
28th September 2018 to expire 27th September 2028, at a current rent of £325,000
pa exclusive, subject to an upward only rent review on 28th September 2023.
The lease is drawn on full repairing and insuring terms. Assignment of the whole is
permitted, subject to landlords’ consent which is not to be unreasonably withheld
and underletting is permitted, with there to be no more than four units of occupation.
The Co-operative Bank have underlet 241 High Street to Telefonica UK Limited,
t/a O2 from 20th December 2018 on a lease to expire 19th December 2023 at
a rent of £125,000 pa.
The sub-letting to O2 is to be ignored for the purposes of the rent review.
COVENANT
Co-operative Bank Plc is a retail and commercial bank in the United Kingdom
with its headquarters in Manchester. The bank is the only UK high street bank
with a customer led ethical policy which is incorporated into the banks articles
of association.
Co-operative Bank have a total net worth at year end 31/12/2020 of
£1,411,000,000 and an Experian Score of 79/100 reflecting a below average risk.
241/243 HIGH STREET | EXETER
RENTAL
ANALYSIS
The estimated rental value of the subject
property as of today’s date would lie in
the region of £235,000 pa, applying a
Zone A rent of £100 psf with A/20 applied
to the first floor and basement, A/30 to the
second floor and A/40 to the third floor.
Recent evidence includes 239 High Street,
which was let in May 2021 to Shuropody
at a rent of £64,000 pa, which reflected
a headline Zone A rent of £100 psf.
EPC
The property has the following Energy
Performance Ratings and further
information is available from this office.
242/243 High Street (Co-op Bank) C75
241 High Street (O2) D79
VAT
The property has been elected for
VAT purposes.
It is anticipated that the investment
will be treated as a Transfer of a Going
Concern (TOGC).
241/243 HIGH STREET | EXETER
PROPOSAL
We have been instructed to seek offers in excess
of £3,000,000 (Three Million Pounds) subject to
contract and exclusive of VAT for the benefit of our
client’s long leasehold interest. A purchase at this
level would reflect a net initial yield of 10.18% net
of standard purchasers costs.
The capital value reflects c. £214 per sq ft.
The most salient comparable evidence
can be set out as follows: -
231 HIGH STREET, EXETER (JD SPORTS)
Long leasehold investment sold in April 2021 for
£2.5m which reflected a net initial yield of 9.5%
and an equivalent yield of 6.1%. The shop was
let to JD Sports on a lease to expire 12/01/2030
at a rent reflecting c. £140 ZA.
24/25 STALL STREET, BATH (NATWEST BANK)
Long leasehold retail investment with c. 94 years
unexpired, sold in April 2021 for £5.35m, reflecting
a net initial yield of 7.42%. The income was
overrented by c. 28%, passing off a current
Zone A rent of c. £160 ZA.
Messrs. Jackson Criss for themselves and for the vendors or lessors of this
property whose agents they are to give notice that: (i) the particulars are
set out as a general outline only for the guidance of intending purchasers
FOR FURTHER INFORMATION, PLEASE CONTACT: or lessees, and do not constitute, nor constitute part of, an offer or
contract; (ii) all descriptions, dimensions, references to condition and
necessary permissions for use and occupation, and other details are given
Philip Hay BSc (Hons) MRICS Jake Berry BSc MSc in good faith and are believed to be correct but any intending purchasers
or tenants should not rely on them as statements of representations of fact
020 7637 7100 07590 961110 but satisfy themselves by inspection or otherwise as to the correctness
of each of them; (iii) no person in the employment of Messrs. Jackson
Criss has any authority to make or give any representation or warranty
phay@jacksoncriss.co.uk jakeb@jacksoncriss.co.uk whatever in relation to this property. 102968. Designed by TCC 06/21.You can also read
