ROBERTSON STREET, HASTINGS, EAST SUSSEX, TN34 1HN - On behalf of Joint LPA Receivers - Allsop
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ROBERTSON STREET, HASTINGS, EAST SUSSEX, TN34 1HN On behalf of Joint LPA Receivers FREEHOLD DEPARTMENT STORE INVESTMENT OPPORTUNITY
INVESTMENT CONSIDERATIONS
■■ Landmark Department Store totalling 96,089 sq ft over ■■ Let on a FRI lease to Debenhams Retail Plc ■■ Numerous asset management opportunities including renegotiating
5 floors with 14.5 years unexpired the tenancy with Debenhams or repositioning the asset through
■■ Prominently located on the primary pedestrianised ■■ Recently revised rent of £415,000 pa change of use
retailing pitch in Hastings (previously £720,325 pa) ■■ We are instructed to seek offers in excess of £2,750,000 (Two Million
■■ Double frontage with part of the store overlooking ■■ Site area of 0.53 acres Seven Hundred and Fifty Thousand Pounds) subject to contract
Hastings Beach and exclusive of VAT. This equates to an attractive net initial yield of
■■ Freehold 14.16% after allowing for standard purchaser’s costs. This equates to
a low capital value of £28 psf.
LOCATION
With a population of 93,000 and a primary catchment area of 171,000 Hemel
Hempstead St Albans
M10 Chelmsford
the seaside town of Hastings is located in the south of England, M25 A1(M)
Hatfield
M11
Chipping
Potters Bar Epping Ongar
M1
16 miles north east of Eastbourne, 28 miles south east of Royal M25
M25 Watford Borehamwood Enfield
Tunbridge Wells and 63 miles south east of Central London. High Rickmansworth M1 M11
Wycombe South Billericay
Brentwood
Oxney Wickford
The town benefits from excellent road communications, connected by M40 Harefield Woodford
Green
Harrow Brent Romford Basildon
M40 Ruislip
the A21 and A259. The A21 is a trunk road running through the south Uxbridge Wembley
Cross
Ilford
Benfleet Southend-on-Sea
of England that connects to J5 of the M25 and Sevenoaks to the north Barking
Slough Stanford-le-Hope
and Hastings to the south. The A259 runs along England’s south coast WINDSOR
M4
HOUNSLOW CLAPHAM
DARTFORD M25
linking Folkestone to Pevensey via Hastings. The A27, one of the UK’s HEATHROW
STAINES
busiest roads that connects Portsmouth to Eastbourne via Brighton KINGSTON
UPON THAMES
LONDON
A2
GILLINGHAM
lies 16 miles to the west. M3
CROYDON M20 M2
South Eastern Railways run from Hastings Station with direct, frequent EPSOM
WOKING
services to Eastbourne (26 minutes), Brighton (1 hour 10 minutes) and M20 M2
A3
SEVENOAKS
London Charing Cross (1 hour 33 minutes). M25
MAIDSTONE
REIGATE
GUILDFORD
A31
London Gatwick Airport is located 45 miles to the north east, M20
accessed via the A21 or alternatively by train with fastest journey A3 GATWICK M23
A24 ROYAL
times of 1 hour 26 minutes. The Channel Tunnel is located 35 miles to THREE BRIDGES EAST TUNBRIDGE
ASHFORD
GRINSTEAD WELLS
the north east, alighting from Folkestone running regular services to CRAWLEY
A21 A229
Calais in c. 35 minutes.
HAYWARDS
HEATH
A272 A272
ROBERTSBRIDGE
BURGESS HILL RYE
A21
A23 CAMBER
HASSOCKS A26 A259
A22
LEWES
A27
BEXHILL
HASTINGS
BRIGHTON A26 A27
WORTHING
LITTLEHAMPTON
NEWHAVEN
EASTBOURNE
SITUATION
The property is situated on the southern side of the pedestrianised Robertson Street, a main
thoroughfare through the town. An additional entrance is located along Robertson Terrace, which
lies adjacent to the A259 and fronting Hastings Beach.
Hastings The department store is located within the Towns primary retail pitch, 140 yards from Priory Meadow
Centre, a large scheme anchored by Marks and Spencer’s, Boots, New Look and W H Smith.
Other occupiers within the surrounding area include Tesco Express, Natwest, Lloyds, Costa Coffee
and several residential developments.
© Crown Copyright, ES 100004106. For identification purposes only.
Experian Goad Plan Created: 11/09/2019
The property comprises several interconnecting buildings with a double frontage onto Robertson Street to the north and Robertson Terrace to the south, totalling 8,927 sq m (96,089 sq ft). DESCRIPTION 1-3 Robertson Street forms the primary entrance to the separate entrance. The ground, first and second floor ground to fourth floor levels as well as two goods store, situated close to the junction of Robertson Street/ are let to Debenhams with the first floor being used as lifts that serve the basement to upper floor levels. Havelock Road and Queens Road. The building is of 1800’s Debenhams Café offering sea views. At ground floor level In addition, an independent customer lift within construction and is arranged over basement ground and to the right hand side is an undercroft driveway through the terrace buildings links the ground, first and 5 upper floors, providing a mix of retail, office and staff the building, which leads to a small delivery yard which second floors. accommodation. The ground floor benefits from three full includes a vehicle turning table. The fourth floor of 1-3 Robertson Street is used height display windows, two sets of double glazed doors The rear of the property comprises a c.1960’s build for administrative office purpose and is arranged and two fire exits which lead to the basement. arranged over ground and 8 upper floors. The ground, in sectioned rooms. The remainder of the fourth Adjacent to this is a ground and first floor HSBC which first and second floors provide retail accommodation and floor provides a staff area. does not form part of the sale. However, the second floor a café at first floor level. The remaining 6 floors have been Most of the remaining areas including the of 4 Robertson Street is also occupied by Debenhams converted into a residential block of flats and sold off on a basements are utilised for storage, maintenance and part of the demise by way of flying freehold. long leasehold. offices, plant and staff rooms. 6-9 Robertson Street is located opposite its junction Internally, escalators are provided to serve with Cambridge Street and comprises retail space over customer areas between ground, first and second ground and 3 upper floors and also benefits from a floors. There is also a passenger lift that serves the
ACCOMMODATION Our client has been provided the following gross internal floor areas: Floor Description Area (sqm) Area (sq ft) Ground Sales 2,143.11 23,068 First Sales 2,069.78 22,279 Second Sales & Restaurant 2,366.67 25,475 Third Sales 679.49 7,314 Fourth Offices & Staff Room 461.53 4,968 Fifth Storage & Workshop 383.27 4,125 Basements Storage 823.09 8,860 Total 8,926.94 96,089 SITE AREA 0.53 acres (0.214 ha). TENANCY The commercial element is let in its entirety to Debenhams Retail Plc on a full repairing and insuring lease for a term of 30 years from 25th March 2004 (expiring 2034) at a recently revised passing rent of £415,000 per annum (subject to the CVA), which equates to a rent of £4.32 psft. There is a mutual option to determine the lease (subject to the CVA) in March 2021 and March 2022. There is a residential element (Albany Court, Robertson Terrace) which has been sold on a long lease to Multistates Limited for a term of 199 years from 1st November 2004 expiring 1st October 2204 (c. 185 years unexpired) at a peppercorn ground rent. There is an obligation from the tenant to uphold, cleanse, repair and keep in repair their demise, including the roof, external and load bearing parts of the building. TENURE Freehold.
COVENANT INFO
Debenhams is leading, global, multi-channel brand deeply rooted
in British heritage, trading from over 240 stores across 22 countries.
Debenhams offers its global customer base a unique, differentiated and
diverse mix of own brands, international brands and concessions.
More specifically in the UK, Debenhams ranks in the top five in terms
of market share in womenswear and menswear and a top ten share in
childrenswear. It is also a market leader in premium health and beauty.
Debenhams has recently been through a period of restructuring after
being granted a CVA to include 35-50% discounts on rents, business
rate reductions and the closure of 22 stores by early 2020. Although,
22 stores have closed, Debenhams have signed new leases on rebased
rents on their most preferred stores.
In addition, as part of the restructuring, the department store has also
experienced an executive shakeup to streamline store operational
decisions and aid cost cutting as well as a re-design of existing stores,
including their new ‘Beauty Hall of the Future’ campaign, which sets out
to reposition the brand as a leader in cosmetics.
Debenhams Retail Limited reported the previous 3 years financial
figures:
01/09/2018 02/09/2017 03/09/2016
Turnover £2,006,300,000 £2,064,600,000 £2,105,400,000
Pre-Tax Profit -£235,300,000 £97,500,000 £145,200,000
Total Net Worth £1,031,500,000 £1,093,700,000 £1,010,600,000
MEDIUM TERM HASTINGS RESIDENTIAL MARKET
DEVELOPMENT POTENTIAL Voted as one of the top five ‘heritage assets’ in England, Hastings boasts a
seaside town rich in history. Previously overshadowed by its coastal neighbours,
The purchaser has the option to determine the lease in years
Eastbourne and Brighton, Hastings has become a desirable alternative for
2 or 3 and explore the reconfiguration and redevelopment
residents offering affordable homes in a beautiful setting.
opportunities (subject to planning) including:
Over the years, Hastings has undergone significant redevelopment, most
• Converting the upper parts to residential/ student
recently transforming the old pier with a £14 million restoration scheme. In
accommodation. The property would also (subject to
addition, in April 2019 the town’s council bid for a £25 million investment
necessary consents) provide scope for conversion and
towards Hastings High Street to further aid regeneration within the town centre.
redevelopment to provide privately rented residential
housing. There appears to be a moderate supply of lower Hastings has a population of c.93,000 and rising, driven by an increase in demand
quality, more affordable rental accommodation in central for affordable homes, improved transport links appealing as a commuter town
Hastings but a lack of good quality modern developments. and a growing student and young working professionals community as a result of
With the benefit of sea views, the property offers an the University of Sussex doubling the size of their Hastings Campus.
opportunity to provide a unique living opportunity. The south east continues to prove a popular residential location, with house
• Reconfiguring the property to provide a mixed use offering prices within the region forecasted to rise in value the most throughout the
incorporating leisure or hotel use whole of the UK by +23.4% from 2015-2019.
On behalf of Joint LPA Receivers and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the properties,
including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability.
The Receivers are not bound to accept the highest or any offer.
VAT EPC PROPOSAL
The property is elected for VAT and it is anticipated the sale An EPC is available in the
will be treated as a Transfer of Going Concern (TOGC). dataroom. We are instructed to seek offers in excess of £2,750,000 (Two Million Seven
Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.
AML This equates to an attractive net initial yield of 14.16% after allowing for standard
A successful bidder will be required to provide the usual information to satisfy
purchaser’s costs. This equates to a low capital value of £28 psf.
the AML requirements when Head of Terms are agreed.
DATAROOM For further information or to make arrangements for viewing please contact:
Further information is available on the dataroom which is available at: Alex Butler Ronnie Morgan
https://datarooms.allsop.co.uk/register/DebenhamsHastings 020 7543 6722 020 7543 6808
alex.butler@allsop.co.uk ronnie.morgan@allsop.co.uk allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be
relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings
and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness
of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries.
Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 09.19
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