13-14 GENTLEMANS WALK - A VIRTUAL FREEHOLD REVERSIONARY RETAIL INVESTMENT - KLM Retail
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13-14 GENTLEMANS WALK
NR2 1NA
NORWICH
A VIRTUAL FREEHOLD REVERSIONARY RETAIL INVESTMENT
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
Investment Summary
• A dominant, prosperous regional city
• A prime location in the pedestrianised section of Gentlemans Walk
• Strong rental growth being demonstrated by the recent settlement of
H Samuel rent review. Indicating a reversion on Hotter Shoes.
• Let to the excellent covenants of H Samuel & Hotter Shoes
• Average unexpired term of approximately 6.5 years
• Offers in excess of £3,600,000, reflecting a net initial yield of 5.5% and a
reversionary yield of 5.7% after allowing purchaser’s costs of 6.5%.
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
Location Retailing in Norwich
The historic city of Norwich is the Norwich provides an attractive shopping experience, combining
commercial and retail centre for East Anglia, modern architecture with older traditional buildings within an
located approximately 63 miles northeast of attractive pedestrianized environment. The prime pitch extends
Cambridge, 41 miles north of Ipswich, and over a number of thoroughfares, anchored by Marks & Spencer,
110 miles northeast of London. Debenhams and Primark, together with the historic Jarrolds
Department Store. The city benefits from the largest open air market
The city is served by the recently upgraded in the UK, which trades 6 days a week. It is situated within the
A11 trunk road, which links to the M11, Gentleman’s Walk and Marketplace and is opposite this property.
giving access to the M25 and the national
motorway network. The A47 links Norwich Norwich is dominant in its catchment with little competition from
to Kings Lynn and Great Yarmouth. In other centres. This is unlikely to change with more Park & Ride
addition there are regular train services to schemes than any other city (Source: Norwich Research Park)
London Liverpool Street, with an average and high growth projections with an additional 33,000 homes and
journey time of approximately 2 hours. 35,000 jobs by 2021 (Source: Norwich Research Park).
Norwich International Airport offers regular
flights throughout mainland UK and Europe The city has seen significant development in recent years with
with destinations that include Amsterdam, major projects that include the regeneration of the Riverside Area,
Aberdeen, Edinburgh and Manchester. completion of the new Forum Library and completion of the Chapel
Norwich Field Shopping Centre, which has more recently attracted retailers
The population within the Norwich primary such as Apple, Hollister and Zara.
catchment area exceeds 880,000 people, 2 hours
with an estimated shopping population Norwich is one of the most vibrant and attractive cities in Europe.
of approximately 510,000, ranking the It is ranked in the Top 10 shopping cities in the UK and as well as
city 12th on the PMA retail centres index. London being a hotbed for the arts, culture, music, nightlife, and tourism. The
Norwich is the fourth most densely City offers historical architecture, a Norman Cathedral and a 12th
populated Local Authority District within Century Castle, as well as an open-air market, quirky independent
the Eastern Region with 33.9 people per shops, restaurants, cinemas, galleries, theatres, cafés, bars, pubs and
hectare (Source: Norwich City Council). clubs (Source: University of East Anglia).
Tourism is the largest sector industry in the county, supporting
more than 59,000 people and contributing £2.96 billion to the local
economy (Source: Visit Norwich).
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
Situation Accommodation
Gentleman’s Walk is the traditional dominant retail pitch in the City which together with Castle H Samuel (SQ FT) Hotter Shoes (SQ FT)
Street has witnessed the arrival of the largest number of aspirational retailers than any other
Basement Store 500 1,311
pitch in Norwich in the last three years. Retailers such as Paperchase, White Stuff, Crew, Cath
Basement Sales 471
Kidston, Jigsaw together with Jack Wills and The White Company. The Royal Arcade located
ITZA 551 units 705 units
nearby is an attractive Victorian Arcade which links Castle Street to Gentlemans Walk.
Ground Area 816.5 1,840
Ground Floor
Description
The property is an attractive flagship property arranged over basement, ground and four
upper floors with the commercial element providing modern retail accommodation over the
basement and ground floors. The upper parts have been sold off on a long lease and provide
9 luxury apartments with prestigious views of the City, Market Square and Norwich Castle. n Communal (Residential)
Practical completion (PC) of the apartments was in June 2016 and it has all been will be sold. n H Samuel (Retail)
Further information about the residential development can be found at www.abbotts.co.uk n Hotter (Retail)
n Residential Plant
n Retail Communal
Basement Floor
n H Samuel (Retail)
n Hotter (Retail)
n Residential Plant
n Retail Communal
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
KITCHEN
COSMO
LITTLE LO
NDON STR
EET
JIGSAW
OFFER
UNDER
E
G&J LEE
NEWSAGENT
N S
W
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
Tenancies
The property is let on institutional leases with full repairing insuring covenants as follows.
Unexpired Current Rent
Tenant Lease Start Lease Expiry Rent Review ERV (ZA) Comments
Term (Years) pa (ZA)
Beaconsfield Footwear Ltd £115,000 £122,500 10 year reversionary lease. Tenant received 15 months rent free which will be
21/12/15 20/12/2025 9.5 31/10/2020 topped up by the vendor.
T/A Hotter Comfort Shoes (£148.24) (£158.50)
£96,900 £96,900 Tenant has been in occupation for over 20 years. Previous rent £80,000. Rent
H Samuel Limited 20/01/2010 19/01/2020 3.5 review dated January 2015 has recently been settled.
(£158.50) (£158.50)
Total £211,900 £219,400
Covenant
The accounts for Beaconsfield Footwear Limited are as follows having an
Experian credit rating of very low risk
Date of Accounts 27/01/2013 26/01/2014 01/02/2015
£ £ £
Turnover 74,960,000 88,694,000 66,058,000
Pre-tax Profit 8,671,000 10,039,000 8,155,000
Net Worth 14,422,000 23,349,000 30,438,000
The accounts for H Samuel Limited are as follows and Experian also gives
a credit rating of very low risk
Date of Accounts 27/01/2013 26/01/2014 01/02/2015
£ £ £
Turnover 243,166,000 243,450,000 233,100,000
Pre-tax Profit 13,097,000 9,902,000 9,477,000
Net Worth 90,373,000 90,232,000 97,178,000
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT Rental Value H Samuel’s rent review went to third party and £96,900 was awarded (£158.50 Zone A), therefore creating a reversion on Hotter Shoes from £115,000 to £122,500 based on £158.50 Zone A. The White Company took a flagship store at No 22/23 in September 2013 at a rent that equated to in excess of £180 ZA with the most recent letting being No 21 Gentlemans Walk National Westminster Bank from April 2015 at a passing rent of £325,000 per annum. This breaks back to £190 ZA net and demonstrates that rents on Gentlemans Walk are rising back to their previous highs.
13-14 GENTLEMANS WALK, NORWICH UNIQUE VIRTUAL FREEHOLD RETAIL INVESTMENT
Tenure Contacts
Virtual Freehold subject to the upper floors sold off on a 999 year lease on a peppercorn rent.
Rupert Guy Ed Gambarini
T: 020 7317 3710 T: 020 7317 3713
M: 07768 865 914 M: 07825 689 037
EPC E: rguy@klmproperty.co.uk E: egambarini@klmproperty.co.uk
A full EPC survey has been undertaken and is available upon request
Proposal
Our client is seeking offers in excess of £3,600,000 (Three Million Six Hundred Thousand Pounds), reflecting a
net initial yield of 5.5% and a reversionary yield of 5.7% after allowing purchasers costs of 6.5%.
The agents for themselves and for vendors or lessors of properties on this site whose agents they are give notice that: 1: The particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute part of an offer or contract; 2: All descriptions, dimensions, references to condition and
necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3: No person in the employment of the
agents has any authority to make or give any representation or warranty whatever in relation to this site or properties to be built on this site. September 2016
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