14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA - RECENTLY CONVERTED STUDENT & LEISURE INVESTMENT WITH RPI/CPI FIXED RENTAL INCREASES
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14 FISH STREET & 1-7 DYCHURCH LANE,
NORTHAMPTON, NN1 2AA
RECENTLY CONVERTED STUDENT
& LEISURE INVESTMENT WITH
RPI/CPI FIXED RENTAL INCREASES
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS
PROMINENT FREEHOLD TOWN CENTRE COMMERCIAL STUDENT PROPOSAL
MIXED USE INVESTMENT TOTALLING • Northampton is a Dominant Central England • 22 Student Beds, arranged as three cluster flats and two studios producing Offers invited in excess of £2,200,000
and M1 Corridor Retailing Centre a gross current rent reserved of £151,223 p.a. (65% Income Share) (Two Million and Two Hundred Thousand Pounds),
10,204 SQ FT (947.9 SQ M) • Attractive former Council Office Building • First and second floors recently converted to student accommodation subject to contract and exclusive of VAT. A purchase
(EXCLUDING COMMUNAL AREAS) converted in 2019 to retail/leisure use on in July 2018 at this level reflects an attractive Net Initial Yield of
basement and ground floors 9.90% and Triple Net Initial Yield of 7.80% on the
• The student accommodation has been fully let since being first offered
Net Operating Income.
• All three retail/leisure units are recently let and in 2019 on Assured Shorthold Tenancies (ASTs)
RENT PASSING: £231,223 P.A. produce £80,000 p.a. (35% Income Share) • Excellent student demand for the forthcoming 2021/22 Academic Year The student element of the property is available to
• All commercial income is subject to RPI & CPI purchase individually on a leasehold basis, subject to
• 15,000 students consisting of 9,500 full-time students studying at
indexed rental increases, reviewed 5 yearly further negotiation. Please contact the selling agent.
the University of Northampton and a further 4,500 student at
Northampton College.
Outline for indicative purposes only.
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
NORTHAMPTON NORTHAMPTON
FASTEST JOURNEY TIME TO
BIRMINGHAM NEW STREET LONDON EUSTON
50 MINS 46 MINS
Source: www.thetrainline.com
M6 Toll Stamford
M54 Tamworth
M42
LEICESTER
Wolverhampton Walsall
Sutton PETERBOROUGH
Coldfield
M69
M1
Nuneaton
Dudley M6
BIRMINGHAM Corby
BIRMINGHAM C
NEW STREET Birmingham
A1(M)
M5
Airport M6
COVENTRY
Solihull
Kettering
M42
RUGBY
M45 Huntingdon
Redditch
Wellingborough
Royal Rushden
Leamington M1
Spa
NORTHAMPTON
M5 Daventry
St.Neots
M40
Worcester Stratford-upon-Avon
Towcester
BEDFORD
MILTON
Banbury
KEYNES Royston
Brackley
Buckingham Bletchley
M1 Letchworth
Garden City
Hitchin
M5
Bicester STEVENAGE
Luton
Dunstable
Gloucester knebworth
M40
A1(M)
Aylesbury
Welwyn
Garden City
Witney
HEMEL
OXFORD HEMPSTEAD St Albans Hatfield
Thame
Cirencester
Chesham M25
Potters Bar Cheshunt
Abingdon LONDON M
Northampton is one of England’s fastest growing towns and is
the strategic location for many national organisations as their
central hub for business. Northampton has excellent rail and road
Piramidka
communications, with hourly train services to London and road links
to the M1 at Junctions 15, 15A & 16 and additionally to the A14
in the North. Northampton currently has an Enterprise Zone status
which aims to support both new and expanding businesses
by offering incentives.
Dychurch Lane Geek Retreat Esquires Coffee
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
RETAILING IN NORTHAMPTON RETAILING IN NORTHAMPTON
The property is located centrally in Northampton, on the southern
side of Dychurch Lane at the Junction with Fish Street.
The Waterside Campus, Northampton’s principal and newly opened University
Campus, is located just a 10 minutes’ walk to the south of the property. Being centrally
located, the property benefits from a large array of amenities including the main high
street with full access to a number of restaurants, shops and pubs. Northampton Rail
Station is a 15 minute walk from the property and provides direct and regular services
to London Euston and Birmingham New Street in under an hour, provides direct and
regular services to London Euston and Birmingham New Street in under an hour.
ESQ EE
COF
UIRE
PIRA
F
S
MID
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STUDE
UNION
FISH STREET IS THE PRIME TOWN CENTRE PEDESTRIANISED
PITCH FOR RESTAURANTS AND OUTDOOR EATING
––––– Freehold Demise ––––– Leasehold Demise © Crown Copyright, ES 100004106. For identification purposes only.
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
STUDENT MARKET OVERVIEW STUDENT MARKET OVERVIEW
There is a critical undersupply of PBSA in Northampton with no privately
owned schemes of note currently in and around the city.
Altogether, there are 2,578 university run beds across three principal
student villages known as: St Johns Hall, Scholars Green Student Village and
Waterside Student Village. Of these three, Waterside and St Johns Hall are
located in the town centre, whilst Scholars Green is classified as off-campus
accommodation and is located out of town.
Student accommodation in Northampton is principally dominated by
HMO properties across the town with a limited supply of official university
accommodation (27%).
Since 2017, plans have been submitted for over 1,480 new student
beds across the town centre, which on completion will mean supply of
accommodation will fall short of demand.
STUDENT DEMAND SUMMARY
8,558 939 9,457
Undergraduates Postgraduates Total Full Time
5.4 2,578 3.7
Applications Total PBSA Beds Students per
per Place Available PBSA Bed Space
According to Northampton Colleges’ annual
report the college currently has over 9,000
enrolments, of which over 50% are above
the age of 19. The college has a particular focus on Higher Education, with
a view of developing its portfolio of higher-level skills and higher education
courses across a range of disciplines. Northampton College currently offers
no accommodation for its students.
CATCHMENT & DEMOGRAPHICS
10 20
284,000 170,094 people 346,101 people 0.74% p.a. £1,543m p.a. 2.6% p.a. Employers include:
primary catchment population live within a 10 minute drive live within a 20 minute drive above average growth above average retail expenditure retail expenditure forecast Mercedes Benz, Barclaycard,
time of the subject property time Significantly above average growth in retail expenditure significantly above average forecast growth in retail expenditure Church Shoes, Shoosmiths, Crockett &
2018-2023 - 0.74% p.a. compared with at £1,543m p.a. in 2018, PMA average of 2018-2023 - 2.6% p.a. (PMA average 2.3%) Jones, Eddie Stobart and Carlsberg
the PMA average of 0.49% p.a. £1,269 and ranking the town 46th
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
TENURE, DESCRIPTION, TENANCIES & ACCOMMODATION TENURE, DESCRIPTION, TENANCIES & ACCOMMODATION
TENURE
Freehold. The potential exists to acquire a leasehold interest in the student
accommodation only, subject to a new 999 year lease at a peppercorn rent.
DESCRIPTION
The substantial four storey property was originally constructed in 1895 with an
additional three storey extension built in the 1930’s providing leisure and restaurant
accommodation at basement and ground levels, with student accommodation on first
and second floors.
The building is of brick construction, with extensive use of attractive stone detailing on
the older building. On the second-floor level the façade is of render and smaller modest
timber windows. The rendered façade dresses into a featured stone coping hiding the
pitched roof. The 1930’s extension is mainly of a similar brick construction with no stone
detailing, under a flat roof.
The first and second floor were fully refurbished in July 2018 to provide 22 student bed
spaces. There are two studios and three cluster flats (2 x 6 beds and 1 x 8 bed flats).
The site benefits from dual frontage on to Fish Street and Dychurch Lane. There is no
on-site parking facility and existing pavements run up to the existing building frontages.
TENANCIES & ACCOMMODATION
Address Demise Use Area (sq ft) Tenant Lease Start Lease Expiry Break Option Rent Review WAULT WAULT Contracted Contracted Comments
(Expiry) (Break) Rent (£ p.a.) Rent (£ psf)
COMMERCIAL - RETAIL/RESTAURANT
3 Dychurch Lane Basement Gaming/Café/Retail 2,669 Adeptus Reid (t/a Geek Retreat) 21/8/2020 20/8/2030 21/8/2025 20/8/2025 9.36 4.36 £22,500 £8.43 2025 Rent Review subject to fixed CPI indexation increase
2025 Tenant Break Option, subject to 6 month notice period
Rent paid quarterly
Lease deposit: £6,750 + VAT
1 Dychurch Lane Ground Floor Coffee Shop & Restaurant 1,550 Esquires Real Estate (UK) Limited 19/12/2019 18/12/2029 24/12/2024 25/12/2024 8.68 3.70 £40,000 £25.81 2024 Rent Review subject to fixed RPI indexation increase
2024 Break Option, subject to 6 month notice period
Rent paid monthly
5 Dychurch Lane Ground Floor Café & Takeaway 947 Piramidka Ltd 19/2/2021 18/2/2029 18/2/2023 7.85 1.85 £17,500 £18.48 Rent Guarantee: Anna Martka & Tomasz Gorski
(Director Rent Guarantee)
7 Dychurch Lane Ground Floor Restaurant n/a Northampton Borough Council 12/1/2018 11/1/3017 995.72 995.72 £1 Formerly Buddies Restaurant
(Under offer)
Sub-Total 5,166 8.69 3.46 £80,000 £15.49
RESIDENTIAL - STUDENT ACCOMODATION
14 Fish Street - Flat 1 First Floor Student - 6 Bedrooms 1,281 Private Induvidials 11/7/2020 16/7/2021 0.26 £40,837 £31.88
14 Fish Street - Flat 2 Second Floor Student - 8 Bedrooms 2,120 Private Induvidials 11/7/2020 16/7/2021 0.26 £55,387 £26.12
7 Dychurch Lane - Flat 3 First Floor Student - 6 Bedrooms 1,184 Private Induvidials 11/7/2020 16/7/2021 0.26 £40,158 £33.92
7 Dychurch Lane - Flat 4 First Floor Student - Studio 194 Private Induvidial 11/7/2020 16/7/2021 0.26 £7,421 £38.30
7 Dychurch Lane - Flat 5 First Floor Student - Studio 258 Private Induvidial 11/7/2020 16/7/2021 0.26 £7,421 £28.72
Sub-Total 5,038 0.26 £151,223 £30.02
Total 10,204 8.69 3.46 £231,223 £22.66
14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA 14 FISH STREET & 1-7 DYCHURCH LANE, NORTHAMPTON, NN1 2AA
COVENANT COVENANT
ADEPTUS REID LTD
(10% Income Share) [12407588]
Geek Retreat specialises in “all things geeky” including comics,
memorabilia and table top gaming and has expanded rapidly,
gaining market share in the wider games and hobby sector, which
is valued at c.£8bn a year in the UK. The company was founded
in 2017 and operates on a franchise basis. The Northampton
store opened doors on 17th October 2020 becoming the
sixteenth store in the UK.
Both Wargames Workshop, Abington Square and Diecast &
More, Market Walk closed in 2020. Whilst not direct competitors
these closures provide Geek Retreat with a near monopolisation
of Northampton Town Centre within the games and hobby sector.
ESQUIRES REAL ESTATE (UK) LIMITED
(17% Income Share) [09121432]
Esquires Coffee is an international coffee house chain and
subsidiary of Cooks Global Foods; the group is incorporated and
domiciled in New Zealand and is listed on the NZX Main Market
stock exchange.
In the UK, Esquires has expanded in 2020 opening 5 stores to
total 47 across England and Wales; there are an additional 14
stores in the Republic of Ireland.
Stores reopened at various times during July and for the months
of August & September store sales were 18% up on the same
period last year with transactions down 11% and the average
transaction value up 32% on the prior year to £6.70.
PIRAMIDKA LTD
(8% Income Share) [13046360]
A private enterprise run by two individuals providing fast food
takeaway services. The company was newly incorporated in
November 2020 and is currently trading.
VAT
The property is elected for VAT and it is anticipated the transaction
will be treated as a Transfer of a Going Concern (TOGC).
EPC
Please refer to the Allsop Marketing Data Room for supporting Information.
ANTI-MONEY-LAUNDERING
A successful bidder will be required to provide information to satisfy the AML
requirements when Head of Terms are agreed.
DATA ROOM
For access to the Allsop Marketing Data Room, please refer to the following link:
https://datarooms.allsop.co.uk/register/fishstreet
PROPOSAL
Offers invited in excess of £2,200,000 (Two Million and Two Hundred
Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive Net Initial Yield of 9.90%
and Triple Net Initial Yield of 7.80% on the Net Operating Income.
The student element of the property is available to purchase individually on a
leasehold basis, subject to further negotiation. Please contact the selling agent.
For further information or to make arrangements for viewing please contact:
RESIDENTIAL TRANSACTIONAL & LIVING MARKETS
James Hood Nick Troubridge
07825 924765 07587 550092
james.hood@allsop.co.uk nick.troubridge@allsop.co.uk
NATIONAL INVESTMENT – COMMERCIAL
Tom Dales
07799 663631
tom.dales@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, undertaking’s 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. The market statistics, rental and investments comparables have been supplied by third parties and their accuracy
cannot be guaranteed. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 04.21
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