NORWICH HOUSE 14-15 NORTH STREET, GUILDFORD - Mixed use investment with exciting development potential - LoopNet
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NORWICH HOUSE 14-15 NORTH STREET, GUILDFORD Mixed use investment with exciting development potential
NORWICH HOUSE
14-15 North Street, Guildford
INVESTMENT SUMMARY
• Guildford is the principal administrative and commercial centre for
Surrey and one of the premier retailing locations in the UK.
• The catchment population is one of the most affluent in the UK,
ranking 1st of the PROMIS centres on the PMA Affluence Indicator.
• Guildford is a flourishing market town and attracts some of the
highest consumer spending per capita nationally. Furthermore,
Guildford’s retail expenditure is forecast to grow by 5.70% pa over
the period 2018-2023 (PMA).
• North Street benefits from strong levels of footfall and offers an
attractive rental discount to High Street (c.£300 ZA) and
The Friary Guildford (c.£200 ZA plus service charge).
• The property is situated in a highly prominent position on
North Street directly opposite Market Street, which provides a
well-trodden cut-through to the pedestrianised High Street.
• The 16,982 sq ft property provides two modern retail units with
separate self-contained offices above, accessed via Leapale Road.
• 76% of income is secured against the strong brands of Poundland
Limited and C.E.X. Limited.
• Freehold.
• The upper floors provide an exciting development opportunity
for the purchaser with the ability to have vacant possession by
03/2022.
• We are instructed to seek offers in excess of £7,800,000 (Seven
Million Eight Hundred Thousand Pounds), subject to contract
and exclusive of VAT. A purchase at this price would reflect an
attractive Net Initial Yield of 6.15% and a capital value of £459
per sq ft, assuming standard purchaser’s costs of 6.67%.
02
Thame 7
Oxford 8 1 2
7 22
20
Amersham
19
24 M25 25 26
5
Abingdon
NORWICH HOUSE
6 5
Faringdon 18
5 Chigwell Brentwood
17 4
M40 Beaconsfield
Rickmansworth M11 28
Didcot
4
3 M1
2
4
2 29
Wantage
14-15 North Street, Guildford Marlow Harrow 1
1
Swindon
A40
M25
Henley-on-Thames Maidenhead Uxbridge CITY
Slough
LONDON
7 30
6
4 2 1 A4 Woolwich
3 31
Richmond Tilbury
Reading M4 Windsor 14 HEATHROW Dartford Gravesend
14 13
13
A20 2
12 A24
10
Staines 1
Kingston
11 Bracknell Swanley
Hungerford Newbury upon Thames
Croydon
M20
LOCATION
11
Sutton A23 4
3 A24
Camberley M25 Epsom
10
M25 2
3 4
Kingsclere 4 Woking 9
M26
9 5
M3 Leatherhead 7
A3 M25
Guildford is the principal administrative and commercial centre for Surrey Basingstoke 5 8 6
and one of the premier retailing locations in the UK. The town is located
6
Aldershot Dorking Redhill Oxted
Whitchurch Reigate
approximately 27 miles southwest of London, adjacent to the Surrey Hills Area Andover 7 Farnham
M23 Tonbridge
GUILDFORD
8
Godalming
of Outstanding National Beauty.
9
GATWICK
M3 Alton
The town has excellent communications with dual carriageway access via Crawley
the A3 to the M25 (8 miles to the north) and the South Coast (32 miles to the Haslemere 11
New Alresford
south). There are two railway stations offering direct and frequent rail services Liphook Horsham Crowborough
to London Waterloo (37 minutes), London Victoria (47 minutes), Portsmouth, 11 Billingshurst Haywards
Reading and Gatwick. Heathrow and Gatwick Airports are within a 25 minute Romsey
Petersfield
Midhurst
Heath
12
drive time and offer both domestic and international flights. 13
Uckfield
Eastleigh
DEMOGRAPHICS
Guildford boasts 235,000 persons within its Primary Retail Market Area
and an estimated shopping population of 212,000 persons. The catchment
population is one of the most affluent in the UK, ranking 1st on the PMA
Affluence Indicator. 70% of the population are categorised within the most
affluent ABC1 social groups and average house prices are twice the national
average. In addition, unemployment in Guildford is just 2.4% compared to a
national average of 4.2%.
The town benefits from 4 million tourist visits per annum generating £330m
of additional spend. Furthermore, there is a significant student population
with the University of Surrey accommodating some 16,000 students. Guildford
is also a popular commuter town with over 7.95 million people using the
principal station in 2017-2018, making it the busiest station in Surrey.
The catchment population is one of the
most affluent in the UK, ranking 1st on the
PMA Affluence Indicator.
03
NORWICH HOUSE
14-15 North Street, Guildford
GUILDFORD RETAIL MARKET
Guildford is a flourishing market town and attracts some of the highest
consumer spending in the South East, with retail expenditure in Guildford
town centre expected to grow by 5.70% pa over the period 2018-2023
(PMA). The retail offer in Guildford is excellent with the town regarded as the
luxury shopping capital of the UK, outside of Central London. Guildford has
exceptionally strong occupational demand and it is often the first location in
which retailers seek to establish representation having traded successfully in
Central London.
The prime retail offer within Guildford is the pedestrianised section of the
High Street, North Street and The Friary Guildford. Key multiple retailers on the
High Street include M&S, Boots, Next and Sainsbury’s, as well as aspirational
GUILDFORD
retailers such as Hugo Boss, Massimo Dutti, Joules, Ted Baker, White Stuff
and Cos. The Friary Guildford is the principal shopping centre in the town and
OFFICE MARKET
anchored by Primark, Zara, River Island, Superdry and Urban Outfitters. The
Guildford is a thriving commercial centre that has
recent development of Tunsgate Quarter has further improved Guildford’s retail
developed into a strong and well-established office
offer. Tenants include The Ivy, Oka, Cosy Club, Nespresso, Bobbi Brown, Loaf
market. The town’s skilled labour force, working
and Pho.
environment and excellent transport links to Central
North Street is strategically located between High Street and The Friary London have led to robust occupier demand from a
Guildford, with North Street and High Street being connected via multiple number of national and international occupiers.
linking streets. The linking streets provide a good pedestrian flow and house
Grade A town centre availability is limited with it
key tenants such as French Connection, Costa, Reiss and Fat Face. North
currently standing at just 1% of the total office stock for
Street benefits from strong levels of footfall and offers an attractive rental
both in and out of town. Strong occupational demand
discount to High Street (c.£300 ZA) and The Friary Centre (c.£200 ZA plus
and limited Grade A stock within the town centre has
service charge). Retailers represented on North Street include M&S, House of
provided strong rental growth in recent years with prime
Fraser, JD Sports, Harris & Hoole, HSBC and Barclays.
rents currently standing at £33.50 psf. We therefore
The key scheme in the development pipeline for Guildford has been the expect a light refurbishment of the offices here would
proposed North Street redevelopment. We understand that M&G Real Estate provide rental growth.
and Guildford Borough Council intend to work together to implement a
cohesive redevelopment for this part of the town centre which is earmarked
for both the extension of The Friary Guildford and a redevelopment at the
lower end of North Street. Whilst the extension is on hold for the time being,
Guildford is a strong and well-established
we believe any redevelopment would strengthen North Street and the subject
pitch.
office market in the South East
04
URBAN OUTFITTERS
05
NORWICH HOUSE
14-15 North Street Guildford, GU1 4AF
SITUATION DESCRIPTION
The property is situated in a highly prominent position on North Street,
The subject property provides two retail units with separate self-contained offices above,
opposite House of Fraser and Market Street and benefits from a side return
accessed via Leapale Road. 14 North Street (CEX) provides a ground floor retail unit with
along Leapale Road. Market Street provides a well-trodden cut-through to
sales and rear ancillary accommodation. 15 North Street (Poundland) provides a ground floor
the pedestrianised High Street. Nearby retailers include Caffé Nero, French
retail unit with first floor ancillary space. To the rear of 14 North Street is a shared loading bay
Connection, Decathlon, HSBC and Barclays.
accessed via Leapale Road, and a 64 space Council owned car park.
The offices are arranged over three floors providing a total of 7,664 sq ft of multi let
accommodation that are accessed by a lift and staircase.
The property provides two well
configured retail units with separate TENURE
self-contained offices above Freehold.
06
NORWICH HOUSE
14-15 North Street, Guildford
TENANCIES
Address Tenant Areas Lease From Lease To Next Rent Rent pa Insurance Rates Service Total Comments
Review (ZA/£psf) Charge Landlord’s
Shortfall
14 North C.E.X. Ground Sales 1,911 sq ft 20/07/2012 19/07/2022 - £150,000 Rent recently increased at rent review
Street Limited ITZA 1,514 units (£123.50 ZA) – increase agreed between the parties
in February 2019. Analysis reflects 20%
discount for frontage to depth. EPC rating
C64.
15 North Poundland Ground Sales 4,332 sq ft 27/06/2016 26/06/2026 27/06/2021 £260,000 6 months rent free on 2016 renewal. EPC
Street Limited ITZA 1,610.5 units (£147.50 ZA) rating C72.
First Floor 3,075 sq ft
Ancillary
1st Floor Red Hot Yoga First Floor 1,852 sq ft 14/09/2010 13/09/2020 - £33,000 Rent deposit of £16,450. Additional rent
Limited (£17.18 psf) deposit (security for reinstatement of
heating works) of £5,934. Inside the 1954
Act. EPC rating C75.
2nd Floor Red Hot Yoga Second Floor 3,147 sq ft 27/08/2013 13/09/2020 27/08/2018 £31,470 Outside the 1954 Act. Rent deposit of
Limited (£10.00 psf) £9,441. EPC rating C75.
3rd Floor NGM Surveys Third Floor 495 sq ft 17/12/2018 16/12/2021 - £14,500 £24.95 - £6,010.43 £6,035.38 Rent inclusive of insurance and
(Suite 1) LLP (£29.29 psf) service charge. Outside of the 1954 Act.
Rent deposit of £2,646. EPC rating E102.
3rd Floor Vacant Third Floor 366 sq ft - - - £10,614 - £2,116.80 £4,593.96 £6,710.76 Rental guarantee provided.
(Suite 2) (£29.00 psf) EPC rating E117. 12 month rental
guarantee provided.
3rd Floor Global Tax Third Floor 1,248 sq ft 01/08/2017 31/07/2021 - £34,000 £62.83 - £15,581.18 £15,644.01 Rent inclusive of insurance and
(Suite 3,4 Network Ltd (£27.24 psf) service charge.
& 5) Outside of the 1954 Act.
EPC rating D97 & E116.
3rd Floor Cooper and Third Floor 556 sq ft 26/03/2019 25/03/2022 - £16,000 £29.57 £2,995.10 £6,941.98 £9,966.65 Tenant break rights on 26/03/20 and
(Suite 6) Withycombe (£28.78 psf) 26/03/21 on giving 3 months notice.
Limited Outside 1954 Act.
Rent inclusive of insurance, rates and
service charge. Rent deposit of £4,260.
EPC rating D97.
Total (Gross) 16,982 sq ft £549,584 £38,356.80
Total (Net) £511,227.20
07
NORWICH HOUSE
14-15 North Street, Guildford
COVENANTS
Tenant Turnover Profit (Loss) Before Tax Net Tangible Assets (Liabilities) % of Total
Income
F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E.
Poundland Limited 01/10/2017 27/03/2016 29/03/2015 01/10/2017 27/03/2016 29/03/2015 01/10/2017 27/03/2016 29/03/2015 48%
£2,245,804,000 £1,214,818,000 £1,111,526,000 -£127,838,000 £34,653,000 £45,992,000 -£5,437,000 £46,687,000 £101,927,000
C.E.X. Limited 30/06/2017 30/06/2016 30/06/2015 30/06/2017 30/06/2016 30/06/2015 30/06/2017 30/06/2016 30/06/2015 28%
£146,318,189 £141,644,952 £135,787,157 £3,008,897 £1,251,804 £833,137 £8,812,086 £6,347,455 £5,541,783
Red Hot Yoga 30/04/2018 30/04/2017 30/04/2016 30/04/2018 30/04/2017 30/04/2016 30/04/2018 30/04/2017 30/04/2016 12%
£378,482 £329,128 £346,037 -£8,732 -£68,936 -£31,914 -£252,572 -£243,840 -£174,904
Global Tax Network Ltd 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 6%
- - - - - - £183,471 £160,235 £140,261
NGM Surveys LLP 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 3%
£305,759 £340,477 - £53,023 £37,932 - £13,706 £22,862 £68,727
Cooper and Withycombe 31/12/2017 31/12/2016 31/12/2015 31/12/2017 31/12/2016 31/12/2015 31/12/2017 31/12/2016 31/12/2015 3%
Limited
- - - - - - £56,941 £79,027 £61,070
08
NORWICH HOUSE PROPOSED FIRST
FLOOR
14-15 North Street, Guildford
RESIDENTIAL DEVELOPMENT
OPPORTUNITY
Potential to
reorganise core N
Guildford has a buoyant residential market underpinned by its 0 2 8m
excellent local schooling, strong transport links, extensive amenities Scale 1:200
APPROXIMATE
NORTH
and charming town centre. Current prime residential values are 1:200
estimated at £525 - £550 per sq ft and offer a conservative base
for future growth.
The upper floors provide an excellent opportunity for a purchaser
to secure a change of use (subject to planning) and convert/extend
the offices as residential accommodation. A feasibility study has
been undertaken, which highlights the potential for up to 24 flats,
as per the adjacent plans. Further information is available upon
request.
PROPOSED NUMBER OF APARTMENTS & AREAS
Unit No. Style Area (Sq M) Area (Sq Ft) Unit No. Style Area (Sq M) Area (Sq Ft)
Unit 1 1 Bed 57 616 Unit 13 Studio 40 430
Unit 2 1 Bed 57 616 Unit 14 2 Bed 71 764
Unit 3 1 Bed 57 616 Unit 15 1 Bed 57 616
Unit 4 2 Bed 80 861 Unit 16 1 Bed 57 616
Unit 5 Studio 40 430 Unit 17 1 Bed 57 616
Unit 6 Studio 40 430 Unit 18 2 Bed 80 861
Unit 7 2 Bed 71 764 Unit 19 Studio 40 430
Unit 8 1 Bed 57 616 Unit 20 Studio 40 430
Unit 9 1 Bed 57 616 Unit 21 2 Bed 71 764
Unit 10 1 Bed 57 616 Unit 22 2 Bed 92 990
(includes corridor)
Unit 11 2 Bed 80 861
Unit 23 1 Bed 50 538
Unit 12 Studio 40 430
Unit 24 2 Bed 77 828
09NORWICH HOUSE
14-15 North Street, Guildford
VAT
The property is elected for VAT and it is anticipated that the sale will be treated as a TOGC.
EPC
Energy Performance Certificate ratings are included in the tenancy schedule on page 7.
PROPOSAL
We are instructed to seek offers in excess of £7,800,000 (Seven Million Eight
Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this
price would reflect an attractive Net Initial Yield of 6.15% and a capital value of £459 per
sq ft, assuming standard purchaser’s costs of 6.67%.
CONTACT
Alastair Bird
alastair.bird@knightfrank.com
T: 020 7861 1232
M: 07768 257 316
Sam Waterworth
IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements
sam.waterworth@knightfrank.com by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property,
T: 020 3909 6821 its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any
information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: The photographs
M: 07801 657 744
show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given
are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that
Tim Traynor any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or
Guildford Residential Development in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating
to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered
tim.traynor@knightfrank.com number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of
T: 0148 361 7929 members’ names. April 2019. Designed and produced by Creativeworld. Tel: 01282 858200.
M: 07970 829 819
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