PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
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PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
INVESTMENT SUMMARY
• Prime South East multi-let retail block.
• Located in the affluent town of Crawley,
located in the South East of England, 31
miles south of Central London and in close
proximity to Gatwick Airport.
• Freehold modern unbroken parade of 10
well configured retail units, providing a
total area of 59,600 sq ft and served by
a 60 space NCP car park at the rear.
• Tenants include H&M, Topshop, Sports
Direct, NCP and EE.
• Rebased, affordable rental tone on
The Martlets
• WAULT to expiry is 5.93 years and 4.98
years if the car park income is excluded.
• Potential to look at residential / hotel
development on the block, subject
to planning.
• Our clients are seeking offers in excess
of £18,000,000 subject to contract and
exclusive of VAT, which reflects a net initial
yield of 7.53% after allowing for normal
purchasers costs.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
Crawley Borough
Council Offices
Central Sussex
College
P
P P
The Boulevard
Queensway
College Road
Queens Square
Memorial Gardens
TH
P
E
M
AR
TL
ET
S
County Mall
Shopping Centre
Southgate Avenue
Station Way
For identification purposes only. Crawley Station
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
LONDON
HEATHROW
AIRPORT
GATWICK EXPRESS
LOCATION Sutton
Croydon
M3 Epsom
Woking M25
Crawley is situated in the County of West Banstead
Catterham
M26
A3 Leatherhead Sevenoaks
Sussex, some 30 miles south of Central London, M25
7/8
Oxted
21 miles north of Brighton and 27 miles south A21
Guildford
east of Guildford. Reigate Redhill Tonbridge
Dorking
Horley Lingfield
A24
Crawley is well served by road communications, GATWICK A22
Royal
AIRPORT East
joining the M23, which in turn links with the M25 A281
Cranleigh
10 Grinstead A26 4 Tunbridge
Wells
at Junction 7, with Central London to the north CRAWLEY
and Brighton to the south. 11
Horsham
Billingshurst A23
Gatwick Airport is located 6.4km (4 miles) to the Cuckfield Haywards
Heat h
north of the town and is the UK’s second busiest Uckfield
A2 72
airport. The presence of Gatwick is important
Petworth
to Crawley, contributing to the commercial Burgess
Hill A26
and industrial success of the town. The airport Stormington Hassocks
generates around 23,500 jobs and a further Hednfiel
Lewes
20,000 jobs through related activities. Steyning
Arundel Worthing Brigthon
A2 7
The airport caters for just over 31m passengers English Channel Newhaven
a year and 318,963 tonnes of freight.
Connex South Central provides rail services
to Crawley from London Victoria, whilst the
Gatwick Express provides similar links with
a journey time of some 30 minutes.
Crawley is at the centre of the
Gatwick Diamond, one of the
strongest local economies in
the country.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
DEMOGRAPHICS & ECONOMY
Crawley is an expanding commuter town with a resident population of 111,599
within a 3 mile radius and a primary catchment population of 515,000, above
the Sub Regional Weak Town areas and ranking the town 38 out of the Promis
Centres. The estimated shopping population of Crawley is 213,000 and the
town is projected to see further above average population growth over the
period 2016-2021. Further residential development is planned in the town
centre and across the Borough. YPC Group reports that there are an increasing
number of town centre residential units, with currently 372 units in the pipeline.
The retail catchment is expected to grow as 5,000 additional homes are
planned across the Borough over the next 15 years. These include residential
developments at Forge Wood and Kilnwood Vale.
Crawley has an excellent demographic profile with a catchment population that
is moderately affluent, ranking 45 of the Promis Centres on the PMA Affluence
Indicator as at 2011.
Crawley has the 8th highest employment rate of all cities in the UK, of 76.3% in
2015. Crawley has seen a 600% rise in jobs, becoming an increasingly popular
travel to work area - a bigger rise than any anywhere else in the UK over the
last century (Centre per City’s Report March 2015).
Crawley is at the centre of the Gatwick Diamond, one of the strongest local
economies in the country and an area of significant growth. With Gatwick
Airport being at its heart and Heathrow Airport less than an hour away, the
Gatwick Diamond has excellent interconnected infrastructure of air, road, rail
and sea that connects it to London and the UK, mainline Europe and the rest
of the world.
Major employers in the area include Gatwick Airport, Civil Aviation Authority,
TUI Travel Plc, Gate Gourmet Plc, KPMG, Grant Thornton and Deloitte Touche.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
REGENERATION RETAILING IN CRAWLEY
There is an estimated 960,000 sq ft of retail floor space in close proximity to Crawley’s Rail & Bus Stations. The prime
Crawley, below the sub-regional town centre average and retailing further extends into the pedestrianised Martlets,
ranking the town 100 of the Promis Centres on this measure. which is further complimented by the more secondary retail
The town is ranked 65 on the basis of its non-food Retail location of Queens Square, Queensway and Broad Walk.
Score and 62 on the PMA fashion score, in terms of retail
spend. The prime retail accommodation within the town is Retailers located in the Queensway / Queen’s Square areas
concentrated on the pedestrianised Martlets and the County include Marks & Spencer, TK Maxx, New Look, Argos and
Mall Shopping Centre. Key retailers in the two-level County Sainsbury’s.
Mall include, Debenhams, Primark, Next, Boots, WH Smith,
Regeneration of Queens Square Waterstones, Miss Selfridge and River Island. Other retailers Crawley Borough Council and West Sussex County Council
due to be finished October 2017. in Crawley include Marks & Spencer, New Look, H&M, are working to enhance the town centre to create a new small
Peacocks and HMV. business hub area and encourage a restaurant culture. The
Councils are investing £3m to regenerate Queen’s Square,
The County Mall Shopping Centre has the town’s main with work having started in September 2016 and due to
shopper car park, with 1,800 customer spaces and is also in complete in Autumn 2017.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
Regeneration of Queens
Square due to be
finished October 2017
LA RUSTA
DEICHMAN
SHOES
VAPORIZED
NORTH
For Identification purposes only
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
DESCRIPTION
The property comprises a triangular
site that slopes from North to South
and comprises 2 adjoining buildings
forming a terrace, a service yard
and a 60 space NCP operated
public car park located to the rear,
accessed from Queensway via
Parkside, a private roadway that
is part of the property.
A substation is located within the
public car park on the North East
corner of the site within a purpose
built single storey enclosure.
SITUATION
The subject property is located in a
prime trading location within Crawley
town centre on the pedestrianised
Martlets, which links the Standard
Life owned County Mall Shopping
Centre to Queen’s Square.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
ACCOMMODATION
The accommodation details are detailed in the tenancy schedule below. The majority of the units are principally arranged on ground and first floor, with a total floor area of 59,600 sq ft (5,536.98 sq m).
Address Tenant Name Lease Start Term Expiry Break Rent Next Current ZA Rental ZA GF Sales ITZA FF SF Comments Experian Credit
(yr/Days) Date Clause Review review Rent pa Value pa (sq ft) (sq ft) (sq ft) Score rating out
of 100
1 The Martlets La Rusta 01/10/17* 10 yrs TBC 5 £47,500 £78.18 £47,500 £78 1,040 634 659 644 Exchanged subject to planning 15
Restaurant Ltd 5th year for an A3 consent. Tenant is to
receive 6 months rent free and 6
months at half rent. Tenant only
break at 5th year with 9 months
notice. £15,000 rental deposit.
3 The Martlets CCHG Ltd t/a 14/09/17* 10 yrs TBC 5 £47,500 £79.00 £47,500 £79 1,018 627 645 642 Agreement for lease exchanged. 54
Vaporized 5th year Lease start date likely to be 14th
September 2017. Tenant break
at 5th year with 6 months notice.
Tenant received 12 months rent free.
Unit A, CEX 19/06/09 10 yrs 18/06/19 N/A £82,500 £99.90 £77,000 £90 1,816 803 925 95
5 The Martlets (Franchising
Ltd)
Unit B, EE Limited 23/07/03 15 yrs 22/07/18 5 £117,500 £136.80 £79,500 £90 2,029 835 899 80
7 The Martlets
Unit C, T Mobile (UK) 21/08/02 15 yrs 20/08/17 5 £115,000 £134.00 £78,500 £90 1,913 822 920 Tenant holding over no notices 100
9 The Martlets Limited served.
Unit D, Nero Holdings 25/04/12 10 yrs 24/04/22 5 25/04/17 £80,000 £92.48 £78,000 £90 2,178 865 100
11 The Martlets Ltd
Unit E, 13/15 Sports Direct. 11/10/11 10 yrs 10/10/21 5 £278,400 £102.67 £245,000 £90 6,325 2,191 FF Sales - Ancillary area of 847 sq ft included in 100
The Marlets com Retail Ltd 4,775 FF ground floor area, valued at A/16.
Ancillary
- 868
Unit G, Top Shop/Top 01/10/12 10 yrs 30/09/22 5 01/10/17 £140,000 £100.78 £126,700 £90 3,730 1,231 3,187 At rent review first floor sales to 45
17 The Martlets Man Properties (ancillary) be disregarded and valued as
Limited ancillary.
Unit H, HMV Retail 07/08/13 5 yrs 06/08/18 £175,000 £97.59 £161,900 £90 5,847 1,724 1,350 35
19 The Martlets Limited (ancillary)
Unit J, H&M Hennes 01/01/14 14 yrs 31/12/28 01/01/21 5 01/01/19 £285,000 £77.18 £330,500 £90 9,336 2,885 Sales / Tenant regeared in 2014 and 100
21 The Martlets & Mauritz UK 11 mths (T) Ancillary extended first floor as part the
Limited 8,854 transaction.
Car Park National Car 01/01/14 25 yrs 31/12/39 N/A £80,000 £80,000 24hr 60 space car park. Potential 100
Parks Limited for rental top up subject to
turnover.
£1,448,400 £1,352,100 35,232 23,082 1,286
*Estimated lease start dates. Total Floor Area: 59,600 sq ft
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE
| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
TENURE
The ownership is held freehold as two separate
titles, with 1/3 The Martlets held in one title and
the remainder in the other.
TENANCIES
The current rental income is £1,353,400 pa,
which will increase to £1,448,400 pa, when the
lettings on Units 1 & 3 complete.
On the assumption that the letting on Unit 3
completes, the WAULT to expiry is 5.93 years.
0-2 yrs
25%
34% 2-5 yrs
5-10 yrs
16%
10 yrs
25%
Approximately 97% of the rent passing is
attributable to national multiple covenants.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
ESTIMATED RENTAL VALUE
It is our opinion that the estimated rental value as of
today’s date would lie in the region of £1,352,100 pa,
which reflects a prime Zone A rental tone of £90 per sq ft.
The principle rental evidence can be set out as follows:-
1. 16/18 The Martlets (Card Factory)
Lease renewal in June 2017 agreed at a rent of £111,000 pa,
which reflects a net Zone A of £85 per sq ft.
2. Unit 4-26 The Martlets (Carphone Warehouse)
10 year reversionary lease effective November 2016, with
a tenant break at the end of the 5th year, agreed at a rent
of £126,950 pa, which reflects a headline Zone A of £90
per sq ft and a net tone of £81 per sq ft.
3. Unit 1 The Martlets (Lush)
Lease renewal June 2016 at a rents of £35,000 pa, which
reflects a Zone A of £107.55 per sq ft.
We understand that prime rents in the County Mall
scheme are currently approximately £115 per sq ft Zone A
with a service charge.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
COVENANT STATUS
We have undertaken research, via Experian, into the
covenants offered by the Lessees and set out the details
of their Experian Credit Score in the Tenancy Schedule.
Further information on the tenant covenants is available
from this office.
Approximately 97% of the income is secured against
national and multiple covenants.
SERVICE CHARGE
A service charge is in place and is apportioned on each
occupiers’ gross internal floor area. The budget for
2017/2018 is £25,870 and the service charge for the year
ended 2016/2017 was £26,243.78. Further information
is available upon request.
ENERGY PERFORMANCE
CERTIFICATES
Energy Performance Certificates (EPCs) available
upon request.
VAT
The property has been elected for VAT and we
anticipate that the transaction will be treated as
a Transfer Of A Going Concern (TOGC).
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
PROPOSAL
We are instructed to seek offers in excess of £18,000,000
(Eighteen Million Pounds), which reflects the following
yield profile, net of purchaser’s costs of 6.75% :-
Initial yield - 7.53%
Reversionary yield - 7.03%
Equivalent yield - 7.07%
True equivalent yield - 7.40%
The price reflects a capital value of £285 per sq ft,
excluding the car park income.
The principle evidence can be set out as follows:-
1. 1/3 Kingsgate, Crawley
Freehold secondary retail block sold in April 2017
for £11m, which reflected a net initial yield of 6.82%.
The block was let to TK Maxx, Argos and Gala with
a WAULT of 9.7 years.
2. 61/96 Queensmead, Farnborough
Freehold secondary retail residential investment
block, sold in March 2016 for £16m, reflecting
a net initial yield of 7.7%.
1-21 THE MARTLETS CRAWLEY PRIME FREEHOLD SOUTH EAST UNBROKEN RETAIL PARADE FOR SALE| Home | Investment Summary | Aerial | Location | Demographics | Retailing | Goad | Description | Situation |
| Accommodation | Tenure | Tenancies | Rental Value | Covenant | Service Charge | Energy Performance | VAT | Proposal | Contact
For further information, please contact the sale agents, Jackson Criss:
Philip Hay Brook Wannop
DESIGNED BY TCC
020 7637 7100 020 7637 7100
phay@jacksoncriss.co.uk brookw@jacksoncriss.co.uk
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 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 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
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 whatever in relation to this property. JC0110. September 2017.
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