HIGH STREET, GUILDFORD, GU1 3ES - RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE WITH POTENTIAL TO DEVELOP THE UPPER PARTS - Allsop
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HIGH STREET, GUILDFORD, GU1 3ES
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
WITH POTENTIAL TO DEVELOP THE UPPER PARTS
HIGH STREET, GUILDFORD, GU1 3ES
PRIME FREEHOLD HIGH STREET
INVESTMENT FOR SALE
INVESTMENT
CONSIDERATIONS
Guildford is a highly affluent south east town and
is amongst the UK’s premier retail destinations
outside of Central London
•
The town’s catchment population is one of the
most affluent of the PROMIS centres, ranking
second on the PMA Affluence Indicator
•
Prime retail unit situated on the pedestrianised
High Street adjacent to Gapkids and within close
proximity to Jack Wills, Gap, GANT and WH Smith.
•
Let to Vodafone Ltd for a further 4 years at a
current rent of £232,500 p.a. reflecting a Zone A
rent of £307.50 psf
•
Freehold
•
Potential to unlock the residential accommodation
and expand further by extending the upper floors
to the rear, subject to the existing lease and
obtaining all relevant planning consents
•
We are instructed to seek offers in excess of
£5,250,000 (Five Million, Two Hundred and
Fifty Thousand Pounds) subject to contract and
exclusive of VAT, which reflects a net initial yield
of 4.15% assuming purchaser’s costs of 6.60%.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
HIGH STREET, GUILDFORD, GU1 3ES WITH POTENTIAL TO DEVELOP THE UPPER PARTS
A505 Stevenage A131
Dunstable A120 Stansted
Luton Luton Bishop’s
Knebworth Stortford
A34
A418 A602
M40 A5
A130
Aylesbury Welwyn Garden
City Hertford A12
M1 A414
Hemel Harlow
St Albans Hatfield
Hempstead
A4142
M10 Chelmsford A138
A41 A414
A1(M) A10
J21 M11
Potters Bar Epping Chipping
J20
J23 M25 Ongar
J19 J25 J27
A404
A4010
M25
Borehamwood
Watford A1 Enfield
High Rickmansworth A10 M11
Wycombe A355
South Billericay
A413 Brentwood
Oxney J28 Wickford
M1 A12
Harefield Harrow M25
Brent A127
M40 Ruislip Cross Romford J29 Basildon A130
A404 J16 A10
A12
A40
Wembley Benfleet
Henley-on-Thames Uxbridge A40
Southend-on-Sea
Maidenhead Stanford-le-Hope Canvey
Slough
J15 M4
LONDON A13
Island
Fulham
Windsor Hounslow
M4 Heathrow Richmond Clapham
Reading Dartford
Staines
Ashford
A316
Kingston
A2
J2
LOCATION
A2
Gravesend Sheerness
Upon Thames A20
Ascot A309
Wokingham J12
A3
A23
Bromley Swanley Guildford is the main commercial and administrative centre of Surrey and
A322 Tolworth J3 Rochester Gillingham
Weybridge A24
A232
Croydon
A232
is one of the premier
M2
retailing locations in the UK. The town is located
Chessington Sutton
M25
A243
A21 M25 M20
approximately 33 miles (53 km) south west of Central London, 7 miles
Sittingbourne
A33 M3 Shoreham Snodland
Woking
J10
Epsom
(11 km) south of Woking and 10 miles (16 km) east of Farnham. The A3
M25 Biggin Hill
J9
A22
J5 M26 London to Portsmouth
M20 trunk road runs along the edge of the town and provides
A339 Famborough A3 A217 Sevenoaks
Fleet A331 M25 fast road access
Maidstoneto London, the south coast and the M25 motorway at junction
Basingstoke A24 J8 J7 J6
Oxted
Aldershot Reigate M23 10. Guildford also benefits from a mainline rail service with direct services
Dorking
M3
Famham
A31
GUILDFORD
Redhill A22
to A26
Waterloo, with A229
a journey time of approximately 33 minutes. Both London
A21
Godalming Heathrow
Tonbridge and London Gatwick Airports are within a 30 minute drive.
Horley Paddock
Royal Wood Staplehurst
Alton Gatwick Tunbridge
Witley Cranleigh A264 Wells
Crawley Three Bridges
North A264 East Grinstead
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
HIGH STREET, GUILDFORD, GU1 3ES WITH POTENTIAL TO DEVELOP THE UPPER PARTS
DEMOGRAPHICS
Guildford has a primary catchment area population of 507,000 with an estimated shopping population of approximately 241,000 and the area is
expected to see above average growth in population across the next 5 years. Given the breadth of the retail offer in Guildford and the attractive
character of the town centre, we would expect the town to draw a significant number of shoppers from beyond the primary catchment area.
The Guildford catchment population is one of the most affluent catchments in the UK, ranked 2nd out of the PROMIS centres on the PMA
Affluence indicator. This is reflected by the spending habits of the catchment population where per capita retail spending levels are significantly
above the PROMIS average.
The town includes a large student population with the University of Surrey accommodating in excess of 15,000 students. Guildford is also a
popular commuter town with over 8.2 million people using the station in 2015/16.
RETAILING IN GUILDFORD
Guildford is an affluent market town and is a leading retailing centre The retail offer in Guildford is very strong with a good provision of upper
across the country, popular with occupiers and investors. The town middle/quality fashion retailers including GANT, Hobbs, Kurt Geiger,
benefits from being within close proximity to London and is a popular Phase Eight, Ted Baker, Urban Outfitters, Jack Wills, Superdry and
commuter town. The town attracts some of the highest consumer Hollister all having representation. Recent arrivals in the town include
spending in the South East, with retail expenditure expected to grow Massimo Dutti, Timberland, Joules and Anthropologie further underlining
in the near future. the town’s prominence as a leading retailing centre. These national
The core shopping area within Guildford town centre focuses brands are supplemented by an array of independent boutiques.
around the High Street and North Street, which lie parallel to one The vacancy rate in Guildford town centre currently stands at 6.8%, well
another. The prime pitch is found along the pedestrianised section below the national average. The refurbishment of Tunsgate Quarter will
of the High Street. There are three shopping centres within the bring further occupiers coming to the town with OKA Direct, Loaf and
town:- The Friary Centre, White Lion Walk and Tunsgate Square The Ivy Brasserie having taken pre-lets. Prime rents in the town currently
however the traditional High Street remains the heart of the stand at £310 psf Zone A. This is now approximately 11% above the
town’s retail offer. pre-recession peak outlining the strength of Guildford as a retail centre.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
HIGH STREET, GUILDFORD, GU1 3ES WITH POTENTIAL TO DEVELOP THE UPPER PARTS
MA
PPIN
&W
EBB
KIK
K-K
© Crown Copyright, ES 100004106. For identification purposes only.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
HIGH STREET, GUILDFORD, GU1 3ES WITH POTENTIAL TO DEVELOP THE UPPER PARTS
SITUATION
The property is situated on a prominent trading position on the
southern side of the pedestrianised High Street close to its junction
with Chapel Street. Nearby occupiers include Gapkids, Gap, WH
Smith, Jack Wills, GANT, Waterstones and Boots.
DESCRIPTION
The subject property is an attractive building, comprising a single retail
unit that is arranged over ground and mezzanine levels and three storeys
of residential accommodation across first, second and third floors. The
residential accommodation benefits from separate access across a flat roof to
the rear of the property and comprises three bedrooms. There is car parking
for up to 3 cars to the rear of the property. TENURE RENTAL VALUE
Freehold The current rent passing of £232,500 pa reflects a Zone A rent of approximately £307.50
ACCOMMODATION psf. We have applied A/20 to the mezzanine ancillary accommodation. This has allowed
for £1,500 pcm to be attributed to the flat less 25% for management and voids.
We have been informed by our client that the property comprises the TENANCY
£1,000 has been attributed for each car park space.
following approximate dimensions and floor areas:
The entire property is let to Vodafone Ltd We consider that the unit is rack rented.
Sq M Sq Ft on a 10 year lease from 24th June 2011
The most current salient rental evidence can be set out as follows:
Ground Floor (NIA) 169.6 1,826 at a current passing rent of £232,500
p.a. The 2016 rent review has recently 1 66 HIGH STREET, GUILDFORD The subject property underwent a rent review last
Ground Floor ITZA 64.3 692
been provisionally settled rising from a year which has recently been settled increasing to £232,500 pa. The rent passing
Mezzanine Ancillary (NIA) 20.2 217 starting rent of £229,000 p.a. reflects £307.50 psf Zone A
First Floor Residential (GIA) 48.4 521
We understand that the property was 2 133-135 HIGH STREET, GUILDFORD The property was let to Massimo Dutti UK on
Second Floor Residential (GIA) 48.4 521 fully refitted in 2015 and that it sits a 10 year lease from February 2016 at a rent of £390,000 pa. The rent passing
Third Floor Residential (GIA) 48.4 521 within the top 25 of circa 500 stores reflected £320 psf Zone A.
Total Area 335.0 3,606
across the UK in terms of performance.
3 76-78 HIGH STREET, GUILDFORD Kikki-K has taken an assignment of an existing
lease expiring in June 2020 at a rent of £146,500 pa reflecting £314 psf Zone A.
RARE PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE
HIGH STREET, GUILDFORD, GU1 3ES WITH POTENTIAL TO DEVELOP THE UPPER PARTS
COVENANT ASSET MANAGEMENT
Vodafone Ltd The property provides a number of potential asset management
Vodafone Group Plc is one of the world’s leading mobile communications opportunities including:
providers and has over 480 stores in the UK. Vodafone operate in a further • Negotiating with the tenant to release the residential upper
30 countries with almost 360 million customers and is a constituent of the parts from the lease which are currently not used by the tenant.
FTSE 100 Index. • Extending the upper parts to the rear to create further
Vodafone Ltd forms part of the Vodafone Group. The company has a D & B residential accommodation subject to obtaining the necessary
rating of 5A1 and has the following financial information: planning consents. A recently commissioned planning report is
available in the dataroom.
31 March 2016 31 Mar 2015 31 March 2014
• Extending the lease to Vodafone.
Sales Turnover £6,183,500,000 £6,294,200,000 £6,969,200,000
Profit Before Taxes (£636,800,000) (£832,800,000) (£304,800,000)
Tangible Net Worth £3,506,200,000 (£1,991,600,000) (£1,658,000,000)
HIGH STREET, GUILDFORD, GU1 3ES
INVESTMENT COMPARABLES
We are aware of the following high street investment comparables:
Date Address Tenant Price NIY
Under Offer 22-23 East Street, Chichester Vodafone Ltd c. £2.1m c. 3.75%
January 2017 92 – 94 High Street, Guildford EE Ltd and Nimogen Ltd £7.6m 4.3%
May 2016 133/135 High Street, Guildford Massimo Dutti £9.3m 3.95%
November 2015 123 High Street, Guildford L’Oreal (UK) Ltd £3.3m 4.3%
VAT EPC
The property is elected for VAT and it is The EPC is available upon request.
anticipated that the transaction will be treated
as a transfer of a going concern (TOGC).
DATAROOM
For access to the Allsop Dataroom please use the following link:
http://datarooms.allsop.co.uk/register/guildford
PROPOSAL
We are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and
Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level
would reflect a net initial yield of 4.15% after allowing for purchaser’s costs of 6.60%.
For further information or to make arrangements for viewing please contact:
Alex Butler Jonathan Butcher
020 7543 6722 020 7543 6755
alex.butler@allsop.co.uk jonathan.butcher@allsop.co.uk www.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 07.17
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