High Yielding Mixed-Use Parade With Active Management Opportunities - 37-49 Westgate Street, Ipswich +44 (0)20 7317 3700 I klmproperty.co.uk - KLM ...
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High Yielding Mixed-Use Parade With Active Management
Opportunities
37-49 Westgate Street, Ipswich
+44 (0)20 7317 3700 I klmproperty.co.uk
INVESTMENT • LEASING • INTERNATIONAL • LEASE ADVISORY
Investment
Considerations
• Busy pitch
• Let to national multiple retailers;
Bet Fred, Yeomans, Tresspass &
Superdrug
• Potential to grow rents from
mainly re-based levels
• Residential and break-up options
• Freehold
• Price: £2,300,000 reflecting a
net initial yield of 9%
+44 (0)20 7317 3700 I klmproperty.co.uk
2Location Retailing in Ipswich
Ipswich is the largest town in Suffolk and the administrative Ipswich’s primary retail is centred along the pedestrianised
centre for the county. The town is one of the most important stretch of Westgate Street and Tavern Street. The town’s
shopping destinations in East Anglia, located approximately principle shopping centre, Tower Ramparts, has recently been
84 miles north east of London, 58 miles east of Cambridge refurbished and comprises 125,000 sq ft. It is anchored by
and 45 miles south of Norwich. Boots and new stores for River Island and Pandora. Capital &
Regional and Drum Property Group, have recently purchased
The town has excellent road communications being located
the Butter Market Shopping Centre and are onsite to provide
at the junction of the A12 and A45 trunk roads. There are rail
a 12-screen cinema complex as well as six restaurants and a
services to London Liverpool Street with the fastest journey
20,000 sq ft Pure Gym. This will further enhance Ipswich as a
time of approximately 1 hour 12 minutes.
retailing location.
Norwich International Airport and Stansted Airport are located
approximately 47 miles north and 47 miles west of the town
respectively. Situation
The properties have an extensive and prominent frontage to
Ipswich’s catchment population is approximately 373,000 Westgate Street. Major stores include Debenhams, Marks &
and an estimated shopping population of 266,000. This is Spencer and a new Primark store, currently being refitted as
boosted further by tourism in the summer months. Transport a result of acquiring the adjoining premises. Other multiple
and distribution are key sources of employment due to the retailers represented on Westgate Street include WHSmith,
proximity of the Port of Ipswich and the town’s close proximity Clarks, JD Sports and Card Factory.
to the Port of Felixstowe, the UK’s busiest container hub.
Description
The properties comprise an unbroken parade of 5 retail shops
within three buildings. Numbers 37-39 Westgate Street
provide two ground floor units with self-contained offices
on the first floor. 41/43 & 45/49 Westgate Street comprise
ground floor sales with staff and storage accommodation on
the upper floors.
+44 (0)20 7317 3700 I klmproperty.co.uk
3OFF ER
ER
UND
OFF ER
ER
UND
North
+44 (0)20 7317 3700 I klmproperty.co.uk
4Accommodation
The properties have been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and the accommodation
provides the following net internal areas:
Unit Tenant Floor Accommodation Sq ft Sq m Total (Sq ft)
Done Brothers ITZA Sales 653
37 (Cash Betting) Ltd Ground Sales 1,550 143.99 1,600
t/a Bet Fred Ground Kitchen 50 4.64
Yeomans Outdoors ITZA Sales 551
39 1,496
Ltd t/a Granite Ground Sales 1,496 138.97
Just Recruitment
37-39 Offices Offices 1,461 135.72 1,461
Group Ltd
ITZA Sales 1,258
Jacobs & Turner Ltd Ground Sales 2,615 242.92
41/43 4,470
t/a Tresspass First Ancillary/Sales 857 79.61
Second Ancillary 998 92.71
ITZA Sales 1,328
Superdrug Ground Sales 2,920
45/49 4,975
Stores Plc First Ancillary 1,701 158.01
Second Ancillary 354 32.88
Total 14,002
+44 (0)20 7317 3700 I klmproperty.co.uk
5Tenure
Freehold.
Tenancies
The properties are let on five individual full repairing and insuring leases producing a net rental income of £220,000 per annum, in
accordance with the schedule below:
Passing Rent Rent Review ERV
Unit Tenant Lease Start Lease Expiry Comment
PA (ZA/ PSF) (Break Clause) (ZA/ PSF)
Done Brothers
£32,500 £32,500
37 (Cash Betting) Ltd 06/02/2012 05/02/2022 06/02/2017
(£51.50) (£51.50)
t/a Bet Fred
37a Just Recruitment £7,500 £7,500
20/04/2012 19/04/2017
(1st Floor) Group Ltd (£5) (£5)
Yeomans Outdoors Ltd £30,000 £30,000
39 12/11/2012 11/11/2017
t/a Granite (£54.50) (£54.50)
The lease is guaranteed by Jacobs & Turner Ltd.
10% reduction to reflect quantum.
Tresspass Europe £50,000 14/12/2016 £62,000
41/43 14/12/2011 13/12/2021 The lease is subject to a base rent of 50,000 plus a
Limited (£40 ZA) (14/12/2016) (£50)
turnover rent capped at £70,000 until 14th December
2016. Further details available upon request.
£100,000 £65,500
45/49 Superdrug Stores Plc 24/06/1992 23/06/2017 10% reduction to reflect quantum
(£78.50) (£50)
Total £220,000 £197,500
+44 (0)20 7317 3700 I klmproperty.co.uk
6Covenant
Bet Fred, is the world biggest owner-operator bookmaker with Tresspass, established in 1938, are specialist designers
over 8,500 employees and 1,350 shops since purchasing the and retailers of outdoor clothing, waterproof jackets, hiking
Tote in 2011. footwear and camping equipment with over 150 stores
nationwide.
The accounts for Done Brothers (Cash Betting) Limited are
as follows: The accounts for Jacobs & Turner Limited are as follows:
Date of Accounts 25th March 2012 31st March 2013 28th September 2014 Date of Accounts 24th June 2012 30th June 2013 29th June 2014
Turnover £4,479,240,000 £241,918,000 £417,111,000 Turnover £64,856,802 £75,276,427 £86,168,808
Pre-tax Profit £16,374,000 £26,811,000 £13,967,000 Pre-tax Profit £2,405,049 £4,008,001 £4,225,933
Total Net Worth £64,773,000 £92,026,000 £108,429,000 Total Net Worth £41,263,237 £43,827,272 £46,591,961
Experian gives a credit rating of very low risk Experian gives a credit rating of very low risk
Yeomans Outdoors, established in 1904, are suppliers of Superdrug is the UK’s second largest health and beauty
outdoor clothing and camping equipment with over 30 stores retailer currently operating from over 900 stores nationwide.
nationwide. Sports Direct Plc is the parent company who They are now part of the Hong Kong based AS Watson Group
also own a number of brands including Dunlop, Slazenger,
Everlast and Lonsdale and fashion brands including JJB The accounts for Superdrug Stores Plc are as follows:
Sports and Field & Trek.
Date of Accounts 29th Dec 2012 28th Dec 2013 27th Dec 2014
Turnover £1,021,021,000 £1,010,212,000 £1,058,047,000
Pre-tax Profit (£3,977,000) £28,982,000 £38,044,000
Just Recruitment is a recruitment company, founded over Total Net Worth £106,905,000 £122,235,000 £138,513,000
30 years ago, with 6 other offices in East Anglia.
Experian gives a credit rating of very low risk
+44 (0)20 7317 3700 I klmproperty.co.uk
7Rental Analysis EPC
The passing rents range from £40 to £78.50 Zone A. We are
A full EPC survey has been conducted and is available
of the opinion that the tone is in the region of £50 Zone A.
upon request.
which offers a good discount compared to prime Westgate
Street at approximately £100 Zone A.
VAT
Asset Management The property is VAT registered. It is anticipated that the sale
will be dealt with by a Transfer of a Going Concern (TOGC).
The property offers various asset management initiatives
including:
Re-gear leases with existing tenants Proposal
Redevelop upper floors above Bet Fred and Yeomans Our client is seeking offers in excess of £2,300,000 (Two
Outdoors. There is an existing self-contained entrance Million Three Hundred Thousand Pounds) subject to contract.
on Westgate Street A purchase at this level reflects the following yields after
deduction of usual purchaser’s costs of 5.8%:
Break up individual freeholds and sell separately
Net Initial Yield: 9%
There is limited A3 provision in Ipswich and the planners
would consider such uses within this pitch Reversionary Yield: 8.1%
The pitch is tightening up with good interest in the Equivalent Yield: 7.9%
former Next, 29-31 Westgate Street. 38/40 Westgate
Street is under offer to a restaurant operator.
Contacts
Ed Gambarini Rupert Guy Simon Harvey
egambarini@klmproperty.co.uk rguy@klmproperty.co.uk sharvey@klmproperty.co.uk
020 7317 3713 020 7317 3710 020 7317 3719 INVESTMENT • LEASING • INTERNATIONAL • LEASE ADVISORYYou can also read
