NOTTINGHAM 4-13 LONG ROW & 17-25 UPPER PARLIAMENT STREET - LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS ...
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LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
4-13 LONG ROW & 17-25 UPPER PARLIAMENT STREET
NOT T I NG H A M
INVESTMENT SUMMARY
Nottingham has a total population of 919,000 ranking The property provides 85,387 sq ft of accommodation Weighted Average Unexpired Lease Term of 33.25 years
the City 7th in the UK on this measure and is ranked 7th in the central retail core, arranged as a large format to expiry (32.26 years to break).
in terms of volume of total retail spend available within store (73,100 sq ft) and five high street retail units
the Catchment Area. (totalling 12,287 sq ft).
The property is situated within the central retail core of The property is predominantly let to Primark Stores
Nottingham, with extensive frontage onto both Long Ltd until 2060 who account for 82% of the total rental We are seeking offers in the region of
Row and Upper Parliament Street. The Primark store income. Other occupiers include Tesco Stores Ltd, £25,000,000 (Twenty Five Million Pounds),
fronting Long Row is situated opposite The Exchange Greggs PLC and Tui UK Retail Ltd.
subject to contract and exclusive of VAT. This
Shopping Centre whilst the Upper Parliament Street
frontage is opposite Trinity Square.
Primark reported a turnover of £5.9 billion and a profit reflects an attractive Net Initial Yield of 5.26%
of £362 million for the year ending September 2020. assuming standard purchaser’s costs of 6.76%.
Freehold.
The site provides a significant area of 1.4 acres.
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
York
LEEDS &
BRADFORD
Blackpool BRADFORD
LEEDS
HULL
Preston
LOCATION
MANCHESTER
LIVERPOOL
SHEFFIELD
MANCHESTER
Lincoln
The city of Nottingham is considered to be the regional and retail capital of Mansfield A1
Skegness
the East Midlands. It is located 15 miles east of Derby, 56 miles south-east of Wrexham
M1
Stoke-on-Trent
Manchester, 45 miles north-east of Birmingham and 110 miles north of London. Porthmadog
26
NOTTINGHAM
Derby 25
M6
Oswestry 24
A1
Nottingham occupies a strategic location approximately 5 miles east of Stafford EAST MIDLANDS
Loughborough
Shrewsbury
Junctions 24, 25 and 26 of the M1 motorway. The city benefits from an
NORWICH
M54
M42 Leicester
excellent major road network including the A453, A52, A610 providing access Wolverhampton
Peterborough
to the M1 and the A52 also providing access to the A1(M) 18 miles to the west. Aberystwyth
BIRMINGHAM
BIRMINGHAM
M69
M1
Corby A1
M6
M5
Coventry A14
A14
The city is also well served by the national rail network with fast direct services Northampton
A1
A14
Cambridge
to Leicester (25 minutes), Birmingham (1 hour 14 minutes) and London St
M40
Worcester
Bedford M11
Pancras (1 hour 40 minutes). The nearest airport is East Midlands, located
M1
Milton Keynes
just 14 miles to the south-west of the city which provides direct flights to M5
destinations throughout the UK and Europe. Cheltenham
LUTON
A1(M)
STANSTED
M1 M11
Oxford
M40 M25
Watford M1
Swansea M11
Swindon M25
A40
LONDON
SECOND SEVERN CITY
CROSSING OPEN
SUMMER 1996 M4
A4
CARDIFF
HEATHROW
A20
BRISTOL A24
Key factors in Nottingham’s continued regional dominance include:
DEMOGRAPHICS
Nottingham is the dominant retail location in the East Midlands. There are
approximately 2.3 million people within a 45 minute drive time and a total
population of 919,000 within the Primary Retail Area, ranking the City 7th out
of the top 200 PROMIS centres. Nottingham ranks 7th in the UK in terms of Economy - Nottingham Infrastructure - The city is Tourism - Nottingham University Population -
volume of total retail spend available within the Primary Catchment Area. is one of the UK’s fastest set to benefit from HS2, has a unique history with Two globally renowned
growing cities with its with the East Midlands key attractions such as universities with the
economy expected to Hub base planned for Nottingham Castle and 4th highest student
The age profile of the Nottingham Primary Catchment Area includes a expand by 2.1% per year Toton, 7 miles to the West Sherwood Forest. population in the UK.
particularly high proportion of young adults with 25.9% of the population between 2020-2023. of Nottingham.
aged 15-24 (UK average of 11.6%). There are approximately 62,000 students
attending the University of Nottingham and Nottingham Trent University and
both Universities support approximately 19,000 jobs and contribute c.£1bn to
the local economy. Tourism also provides a significant boost to spending with
an estimated £1.5 billion per annum which is the 6th highest tourist spend in
the UK.
Approximately Nottingham is ranked Approximately Tourism spend of
2.3 million 10th 62,000
an estimated
people within a 45 for its Retail Offer students attending
£1.5 billion
minute drive time per annum
the two Universities
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
RETAILING IN NOTTINGHAM Nottingham City centre is one of the UK’s foremost retail destinations and ranks 10th for its PMA Town Centre Retail Score. The retail offer is hugely varied with presence from value fashion retailers such as Primark whilst designer stores such as Paul Smith and Vivienne Westwood are also represented in the City. Upper middle market fashion retailers are also well represented with the likes of All Saints and Reiss in occupation. Retailing is concentrated in a linear axis anchored by Broadmarsh Shopping Centre in the south running along to the main thoroughfares of Bridlesmith Gate and Clumber Street to the Victoria Centre to the north. The prime high street pitch in Nottingham is focussed on pedestrianised Clumber Street where the likes of Sports Direct, JD Sports, Footlocker, Levis and McDonalds, all have representation. The Victoria Centre underwent a £40m extensive refurbishment in 2015 and is anchored by John Lewis and Tesco. 4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
SITUATION The property is situated within the central retail core of Nottingham city centre, with extensive frontage onto both Long Row and Upper Parliament Street. The Primark store fronting Long Row benefits from being directly opposite The Exchange Shopping Centre which provides an exclusive retail offering including Dr Martens, Sofa.com, Patisserie Valerie and Pret a Manger. The Upper Parliament Street frontage is directly opposite the entrance to Trinity Square, a mixed use retail / student accommodation scheme anchored by the likes of TK Maxx, Little Waitrose and The Gym. 4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
DESCRIPTION
The property provides a large format store (73,100 sq ft)
and five high street retail units (totalling 12,287 sq ft of retail
accommodation). The Primark store is well configured and primarily
arranged over two levels with sales accommodation over ground
and first floor. The principal frontage is on Long Row whilst the
store also benefits from a busy entrance from Maypole Yard, via
Clumber Street. The property is serviced to the rear via Upper
Parliament Street. The Primark store is adjoined by 4-5 Long Row Victoria Centre Nottingham Contemporary Art Gallery
(Ann Summers) which is arranged over ground, first and second
floors and 5 Long Row (Tui) arranged over ground and basement
levels.
The Express Buildings (17-25 Upper Parliament Street) is an
impressive mixed use property originally built in 1876 to house the
Nottingham Express Newspapers. The property provides three retail
units with three floors of residential apartments above which have
been sold off on a 999 year long leasehold basis. The retail units are
arranged over ground and basement level and provide 5,728 sq ft of
retail accommodation.
Old Market Square Arkwright Building, Nottingham Trent University
ACCOMMODATION SCHEDULE
Unit Ground Floor Ground Floor ITZA (units) Basement First Floor Sales Second Floor Total
Sales (sq ft) Ancillary (sq ft) Storage (sq ft) (sq ft) Storage (sq ft) (sq ft)
6-13 Long Row (Primark) 34,000 35,700 3,400 73,100
4-5 Long Row (Ann Summers) 1,553 707 1,498 (storage) 1,576 4,627
5 Long Row (Tui) 648 472 1,284 1,932
19-21 Upper Parliament St (Tesco) 2,841 1,223 1,301 4,142
23 Upper Parliament St (Nottingham Mobile Solutions Ltd) 407 334 295 702
25 Upper Parliament St (Greggs) 455 38 381.5 391 884
TOTAL 39,904 38 3,271 37,198 4,976 85,387
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
SITE
The total site area consists of 1.4 acres.
TENURE
Freehold. The area hatched in blue on the title plan refers to the
Long Leasehold residential upper floors that have been sold off
above 17-25 Upper Parliament Street.
TENANCIES
Address Tenant Name Start Date Expiry Date (Break Date) Next Current Income Rent Passing (£ZA % of Total Comments
RR Date (£pa) / £psf) Income
6 - 13 Long Row Primark Stores Ltd 25/03/1972 22/03/2060 31/01/2022 £1,150,000 £15.73 psf 82% 7 yearly review pattern
4 - 5 Long Row Ann Summers Ltd 14/02/2018 13/02/2028 (31/03/2022 – T) £84,000 £105.00 ZA 6% Ann Summers have recently had their CVA approved
(28/02/2023 – L) with this store being in Category D which will adjust
the rent to 10% of turnover. From 28/02/2023 the rent
reverts to higher of CVA rent or OMRV. Vendor to provide
a 12 months rental guarantee of the previous rent
(£84,000pa).
5 Long Row TUI UK Retail Ltd 04/01/2021 03/01/2026 (03/01/2023) £40,000 £75.23 ZA 3% Tui recently renewed. Concessionary rent of £20,000pa
(03/01/2025) for Year 1 (vendor topping up to £40,000pa). Tenant break
penalty of £10,000.
19 - 21 Upper Tesco Stores Limited 10/03/2014 09/03/2034 (10/03/2024) £79,000 £26.20 psf 5% Annual RPI (0%-4%)
Parliament St 10/03/2024
23 Upper Parliament Nottingham Mobile 02/10/2013 01/10/2023 28/08/2023 £24,000 £68.76 ZA 2% Guarantee from Nottingham Mobile Solutions Ltd.
St Solutions Ltd
25 Upper Parliament Greggs PLC 08/12/2014 07/12/2019 £25,975 £64.00 ZA 2% Terms have been agreed to renew on a 5 yr lease (break at
St year 3) at a rent £24,500
17-25 Upper 12 Property Rentals Ltd 22/05/2014 21/05/3013 Upper floors sold off on LLH basis at peppercorn (area
Parliament St hatched blue on the title plan).
TOTAL £1,402,975 100%
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
COVENANTS Primark Grocery
42% 25%
Primark was founded in 1969 in Ireland and is owned by listed British food processor/
retailer Associated British Food PLC (ABF PLC). It is the 3rd largest fashion retailer in the
UK and operates from 226 stores in the UK and Ireland aswell as 154 stores across Europe
and 12 stores in the US. Primark is one of the best exponents of modern day retailing and
one of the best real estate tenants in the market. Its strength lies in its fundamentals of ABF Revenue Split
understanding its customer base, securing the right product and selling at a low price point
to generate huge volumes. Its customer base is vast and loyal with shoppers returning with
high regularity. Sugar
12%
The Primark business is ABF PLC’s largest of its five operating divisions (Retail, Grocery,
Agriculture, Ingredients and Sugar). Primark reports its financial results within the
consolidated accounts of ABF. In the last full financial year prior to COVID-19 (year to Sep Agriculture
Ingredients
2019), Primark’s Group operating profits increased +8.3% to £913m with Group operating 10%
margins improving by 11.7% which is unprecedented for a value operator. Despite the
11%
exceptionally and unprecedented Pandemic trading environment and enforced lockdowns, Financial Results – Primark Stores Ltd
ABF reported a full year turnover of £13.9 billion and pre-tax profit of £686 million.
Whilst ABF PLC have published their 2020 accounts, Primark Stores Ltd are not due to F/Y/E Turnover Pre-Tax Profit Net Worth
publish their accounts until June 2021 however in the ABF PLC results for the year ending September 2019 £3,449,257,000 £331,281,000 £1,102,839,000
12/09/2020 Primark reported a turnover of £5.9 billion and a profit of £362 million.
September 2018 £3,346,702,000 £232,376,000 £841,833,000
September 2017 £3,171,714,000 £235,505,000 £593,050,000
TENANT ACCOUNTS PRIMARK HEADLINES
The property is let to six tenants. Highlights of their most recent accounts are detailed below:
226
Tenant Accounts Turnover Pre-Tax Profit Net Worth D&B Rating % Of Total UK Stores
Year End (Loss) Income
Primark Stores Ltd Sep-19 £3,449,257,000 £331,281,000 £1,102,839,000 5A 2 82%
Tesco Stores Ltd Feb-20 £42,951,000,000 £1,151,000,000 £4,817,000,000 5A 2 5% £13.9bn
Group Revenue (2020)
Ann Summers Ltd Jun-18 £109,960,191 -£3,345,286 £40,570,534 04 6%
TUI UK Retail Ltd Sep-19 £159,000,000 -£34,000,000 £181,000,000 5A 3 3%
Group Profit of
Greggs PLC Dec-19 £1,167,900,000 £108,300,000 £334,200,000 5A 1 2%
Nottingham Mobile Solutions Ltd Sep-19 £106,518 C1 2%
£686m
(2020)
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
INCOME PROFILE
The property is predominantly let to Primark Stores Ltd who provide
82% of the total rental income.
Nottingham Mobile Solutions Ltd
2% Greggs PLC
Tesco Stores Ltd
2%
5%
TUI UK Retail Ltd
3%
Ann Summers Ltd
6%
Primark Stores Ltd
82%
INVESTMENT COMPARABLES
The majority of the income is long dated with Primark Stores Address Tenant Years to Expiry Net Value Initial Yield Date
Ltd having just under 39 years unexpired. The Weighted Average 31-39 Mitcham Rd, Tooting Primark 7.5 £16,250,000 (Guide) 4.00% Available
Unexpired Lease Term across the asset is 33.25 years to expiry
(32.26 years to break). 40-42 High St, Kings Lynn Primark 51 £6,150,000 4.65% Sep-20
22-26 St Modwen Walk, Burton Primark 75 £6,650,000 4.48% Jul-20
60 Princes Street, Edinburgh M&S 67 £12,000,000 4.06% Aug-19
19-22 Church St, High Wycombe Primark 134.5 £7,500,000 4.17% Mar-19
130-134 Western Rd, Brighton Waitrose 41 £10,850,000 4.00% Aug-17
4-13 LONG ROW & 17-25 UPPER PARLIAMENT ST
NOTTINGHAM LARGE CITY SITE PREDOMINANTLY LET TO PRIMARK STORES LTD FOR A FURTHER 39 YEARS UNEXPIRED
EPC’S
EPC’s can be provided upon request.
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)
PROPOSAL
We are seeking offers in the region of £25,000,000
(Twenty Five Million Pounds), subject to contract
and exclusive of VAT. This reflects an attractive
Net Initial Yield of 5.26% assuming standard
purchaser’s costs of 6.76%.
FURTHER INFORMATION
For further information please contact either:
Alastair Bird
T: 020 7861 1232
M: 07768 257 316
E: alastair.bird@knightfrank.com
Charlie Barke
IMPORTANT NOTICE (1) Particulars: These particulars are not an offer, an invitation or a contract, nor part of one. Any information about price or value contained in the particulars
To view the marketing T: 020 7861 1233
is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. You should not rely on statements by Knight Frank in the
particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Knight Frank has no authority to make any video click: M: 07793 808 027
representations about the property. No responsibility or liability is or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness
or reasonableness of the information, notice or document supplied or otherwise made available to any interested party or its advisers in connection with the Proposed Transaction.
E: charlie.barke@knightfrank.com
All and any such responsibility and liability is expressly disclaimed. (2) Images: Photographs 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: Any reference to alterations to, or use of, any part of the property does not mean that any necessary
planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or 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. (5) Financial Crime: In accordance with the Money Laundering,
Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and
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