PRIME RETAIL INVESTMENT LONG INCOME FREEHOLD DEPARTMENT STORE - gva.co.uk861914/20 SOUTH STREET WORTHING BN11 3AA - NovaLoca
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14/20 SOUTH STREET WORTHING BN11 3AA PRIME RETAIL INVESTMENT LONG INCOME FREEHOLD DEPARTMENT STORE gva.co.uk/8619 ENTER
INVESTMENT SUMMARY
• Freehold department store located in Worthing, • Annual fixed uplifts of 2.5% until 2019. Thereafter, • Offers are sought in excess of £6,580,000
the largest shopping destination of West Sussex. the rent is reviewed 5 yearly to the higher of OMV (Six Million, Five Hundred and Eighty Thousand
or 2.5% per annum compound. Pounds), subject to contract and exclusive of
• The property is let to Debenhams Retail Plc rated VAT. This reflects a net initial yield of 5.40% a
5A 1 by Dun and Bradstreet. • Well-configured department store providing reversionary yield of 7.46% and an equivalent
high quality sales accommodation over 6 levels yield of 6.81%, assuming purchaser’s costs
• Let for a term of 30 years from March 2004 (44,898 sq ft GIA). of 5.80%.
(19 years unexpired).
• The current rent passing is £374,605 per annum
(March 2015) reflecting £8.34 per sq ft.
DEBENHAMS
14/20 SOUTH STREET, WORTHING, BN11 3AA
DEBENHAMS
A2 A D
T RO
59 H URS
LY N D
WORTHING
MAD
CHA
PA R K
EIRA
PEL
ND ROAD
RI C H M O
ROA
A259
AV E
ROA
D
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CRESC
N RO A D
B R I G H TO
ENT R D
STEYN
SHEL
LE Y R O A D
SOU
INVESTMENT SUMMARY
TH ST
E GDN
MARINE PL
LOCATION T
S
UE STREE E
M O N TA G RAD
N E PA
MARI
DEMOGRAPHICS
ADE
E PA R
RETAILING IN WORTHING MARIN
WORTHING PIER
SITUATION WORTHING
Bognor
DESCRIPTION Regis
ACCOMMODATION
TENURE
TENANCY LOCATION
COVENANT STRENGTH
EPC / VAT Worthing is the largest town in West Sussex, strategically located
on the south coast, 55 miles south west of London and 10 miles
PROPOSAL west of Brighton. This prosperous and thriving regional retail centre
benefits from excellent road communications. The A24 provides
FURTHER INFORMATION dual carriageway access to the M25 and the A27 links to the east
and west with Brighton and Chichester respectively. The town is
served by a direct rail link to London Bridge and London Victoria
with a fastest journey time of 1hour and 20 minutes.
Gatwick is 35 miles to the north of Worthing and Southampton
International Airport is approximately 55 miles to the west of
the town.
14/20 SOUTH STREET, WORTHING, BN11 3AA
DEBENHAMS
RETAILING
DEMOGRAPHICS IN WORTHING
The town was granted its Royal Charter in 1980. The total population Worthing is one of the premier shopping destination of West Sussex.
within the Worthing primary catchment area is 289,000 people of The core retailing area is principally located along Montague
INVESTMENT SUMMARY which it attracts a regular comparison goods shopping population Street and South Street where prime rents are £70 and £50
of 158,000. Worthing is forecast to see an above trend population Zone A respectively.
LOCATION growth between 2014 and 2019 in comparison to the national
average. The coastal town benefits from a broad retail offer including national
DEMOGRAPHICS multiple retailers, department stores, as well as established family
Worthing’s catchment population is considered moderately affluent businesses and a variety of specialist shops. As well as Debenhams
RETAILING IN WORTHING ranking 69 out of the PROMIS centres. It also benefits from a many of the UK’s major department and variety store operators are
low unemployment rate of 1.3% as compared to the national represented in the town including Beales, Marks & Spencer and
SITUATION unemployment rate of 2.2% in September 2014. Bhs. Other national retailers include Monsoon, Next, River Island,
Superdrug and Boots the Chemist.
DESCRIPTION The comparison retail expenditure growth forecast between 2014
and 2019 is due to rise by 3.2% as compared to 2.5% set for the
ACCOMMODATION national average, placing Worthing in the top quartile for UK towns.
TENURE
TENANCY
COVENANT STRENGTH
EPC / VAT
PROPOSAL
FURTHER INFORMATION
14/20 SOUTH STREET, WORTHING, BN11 3AA
Worthing
DEBENHAMS
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN WORTHING
SITUATION
DESCRIPTION
ACCOMMODATION
SITUATION DESCRIPTION
TENURE
TENANCY
COVENANT STRENGTH Experian Goad Plan Created: 02/03/2015
The subject property50is located in a central position on the eastern
metres The property comprises a purpose built department store Created of an By: GVA
EPC / VAT side of South Street, close Copyright
to theand junction with pedestrianised Art Deco
confidentiality Experian, 2015. © Crown copyright and design, dating from the late 1920s. The property is of
For more information on our products and services:
Montague Street, Worthing’s prime
database retail
rights 2015. area.
Ordnance Nearby retailers
Survey 100017316 brick and concrete
www.experian.co.uk/goad | goad.sales@uk.experian.com |and
frame construction over basement, ground 0845 601 6011
PROPOSAL include TK Maxx, Vodafone, Beales Department Store, Mothercare, four upper floors. The primary frontage incorporates modernised
Robert Dyas and WH Smith. glazed display windows at ground level, with part glazing on the
FURTHER INFORMATION upper levels.
The store has an extensive and prominent frontage to South Street.
Servicing and staff access is provided off Marine Place. Internally, the store comprises retail accommodation at ground, first,
part second and part third floor level, with ancillary office and storage
at part second and part third floors, with plant and machinery housed
on the basement and fourth floor. Modern improvements include
suspended ceilings with recessed lighting and spot-lighting, and air
conditioning units in the retail areas.
14/20 SOUTH STREET, WORTHING, BN11 3AA
DEBENHAMS
ACCOMMODATION TENURE
INVESTMENT SUMMARY The property is a purpose built department store and provides a total of Freehold
44,898 sq ft of retail and ancillary accommodation arranged over basement,
LOCATION ground, and four upper floors as summarised below:
DEMOGRAPHICS
RETAILING IN WORTHING DEBENHAMS
4th Plant 2,065 191.8
SITUATION
3rd Part Sales, Office, Staff, Storage 9,551 887.3
DESCRIPTION
ACCOMMODATION 2nd Part Sales, Office, Storage 10,543 979.5
TENURE
1st Sales 10,766 1000.2
TENANCY
COVENANT STRENGTH
Ground Sales 11,254 1,045.5
EPC / VAT
PROPOSAL Basement Plant 719 66.8
Total 44,898 SQ FT 4,171.1 SQ M (GIA)
FURTHER INFORMATION
Debenhams also occupy and trade from the adjoining first floor retail
area above the adjacent Iceland car park immediately to the south of the
property. This is held on a separate occupational lease and is not included
in the interest for sale.
14/20 SOUTH STREET, WORTHING, BN11 3AA
DEBENHAMS
TENANCY COVENANT STRENGTH
INVESTMENT SUMMARY The property is let to Debenhams Debenhams is a leading international, multi- Dun and Bradstreet rates Debenhams Retail
Retail Plc for a term of 30 years from channel brand with a proud British heritage Plc 5A 1, reflecting the lowest risk of business
LOCATION 24th March 2004 on full repairing trading out of 245 stores in 28 countries and failure and a financial strength based the
and insuring terms. The current rent online in 67 countries. In addition Debenhams’ company’s net assets of £767.4 million.
DEMOGRAPHICS passing is £374,605 per annum (March fully transactional website is one of the fastest
2015) reflecting £8.34 psf, rising to growing in the sector. For the year ending September 2014
RETAILING IN WORTHING £383,990 in March 2016 in accordance Debenhams’ sales turnover was £2,312 million.
with stipulated annual fixed uplifts of Debenhams currently sits alongside a select Their operating profit over the same period
SITUATION 2.5% for the first fifteen years of the few retailers who have continued to perform was £128.6 million.
term. strongly in recent years, despite the wider
DESCRIPTION economic slowdown. The company recently For the last three years available, Debenhams
In 2019 and for the remainder of the reported 2.0% like-for-like sales growth in 2013 Retail Plc produced the following results:
ACCOMMODATION term the rent is to be reviewed on a and a further 1.00% in 2014, demonstrating its
5 yearly basis to the higher of increasing market share in the sector.
TENURE
1. the 2018 rent with a 2.5% uplift
TENANCY 2. open market rental value
ascertained on 25 March 2019 Year 30/08/2014 30/08/2013 30/08/2012
COVENANT STRENGTH and every 5 years thereafter (the
subsequent reviews on an upwards Turnover £2,312,700,000 £2,282,200,000 2,229,800,000
EPC / VAT only basis)
Operating Profit £128,600,000 £155,400,000 £175,000,000
PROPOSAL 3. minimum fixed uplifts in 2019, 2024,
and 2029 to £405,523, £458,813 Shareholder Funds £767,400,000 £744,400,000 £661,000,000
FURTHER INFORMATION and £519,104 respectively
The tenant has the option at lease
expiry to renew for a further 25 years.14/20 SOUTH STREET, WORTHING, BN11 3AA
DEBENHAMS
FURTHER
INFORMATION
EPC VAT If you require any further information or wish to
arrange an inspection please contact:-
INVESTMENT SUMMARY The building has an EPC rating of We understand the property has GVA 65 Gresham Street, London, EC2V 7NQ
69, reflecting an asset rating of ‘C’. been elected for VAT purposes.
LOCATION Mark Frampton
020 7911 2181
DEMOGRAPHICS mark.frampton@gva.co.uk
RETAILING IN WORTHING
Gavin Quinn
SITUATION 020 7911 2558
PROPOSAL
gavin.quinn@gva.co.uk
DESCRIPTION
Jonathan Cornwell
ACCOMMODATION 020 7911 2369
We are instructed to seek offers in excess of £6,580,000 (Six Million, Five jonathan.cornwell@gva.co.uk
TENURE
Hundred and Eighty Thousand Pounds), subject to contract, and exclusive
TENANCY
of VAT. A purchase at this level reflects the following yield profile allowing Lawrence Fisher
for purchaser’s costs of 5.8%: 020 7911 2721
COVENANT STRENGTH lawrence.fisher@gva.co.uk
EPC / VAT
5.40% Date Gross Rent Yield
Net Initial Yield 25-Mar-2015 £374,605 5.38% gva.co.uk/8619
PROPOSAL 25-Mar-2016 £383,970 5.52%
FURTHER INFORMATION
6.81% 25-Mar-2017 £393,569 5.65%
Equivalent Yield
25-Mar-2018 £403,408 5.80%
7.46% 25-Mar-2019 £405,523 5.83%
March 2015
25-Mar-2024 £458,813 6.59% Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property
Reversionary Yield Misdescriptions Act 1991. These particulars are issued without any responsibility
25-Mar-2029 £519,104 7.46% on the part of the agent and are not to be construed as containing any
representation or fact upon which any person is entitled to rely. Neither the
agent nor any person in their employ has any authority to make or give any
representation or warranty whatsoever in relation to the property.You can also read
