57/58 GEORGE STREET RICHMOND UPON THAMES TW9 1HE LET TO SMIGGLE UK LIMITED - Allsop
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57/58
GEORGE STREET
RICHMOND UPON THAMES TW9 1HE
LET TO SMIGGLE UK LIMITED
100% PRIME RETAIL INVESTMENT
57/58
GEORGE STREET
RICHMOND UPON THAMES TW9 1HE
INVESTMENT SUMMARY
n Located in the affluent suburb of Richmond upon Thames in south west London
n Prominent retail investment situated in a 100% prime pitch on George Street
n Option to purchase either the freehold interest or a long leasehold interest
Retail unit let to Smiggle UK Ltd on a lease expiring in August 2024
n
(TOB 2019) with the upper parts sold off on a long lease
n Passing rent of £115,000 pa reflects a below market Zone A rent of £209 psf
n ERV of £125,500 pa based on a Zone A rent of £230
n Upward only rent review on 13th August 2019
Offers sought in excess of £2,165,000 (Two Million One
Hundred and Sixty Five Thousand Pounds), subject to contract
and exclusive of VAT. A purchase at this level reflects a net initial yield
of 5% and a reversionary yield of 5.42% in 2019 assuming purchasers
costs of 6.32%.
HERTFORD WARE A12
CLACTON-ON-SEA
AYLESBURY HARLOW
HATFIELD A414 LOCATION
AMERSHAM Richmond upon Thames is an affluent London Borough located in the south west quadrant of
HIGH M1
WYCOMBE M25
M25 NORTH
Greater London between the River Thames and Richmond Park. A thriving retail and commercial
centre, Richmond benefits from its river location and close proximity to Central London (9 miles
M40
WATFORD SEA
north east), Kingston upon Thames (4 miles south) and of Twickenham (2 miles south west).
SLOUGH A13 TheSOUTHEND-ON-SEA
town has excellent road communications being located on the A316 which
LONDON CITY provides direct access to Junction 1 of the M3 motorway (approximately 5 miles
M4
south SHEERNESS
west) and the M4 motorway (2 miles north at Chiswick). Both provide quick
RICHMOND
HEATHROW
LONDON access to Central London and theMARGATE
M25 Motorway.
M4 BRACKNELL KINGSTON ROCHESTER
UPON THAMES
Richmond mainline provides a regular direct service to London Waterloo with a
A322 M20
journey time of approximately 20 minutes (9 trains per hour), with further services
CROYDON
M3 M25 to Reading
M2 (1 hour 6 minutes) and Windsor (33 minutes).
A3 M25 SEVENOAKS
GSTOKE A24 Richmond is also served by the London Underground network via the District Line
MAIDSTONE
REIGATE with a journey time of approximately 30 minutes to London Victoria.
FARNHAM A22 M20
GUILDFORD
M23
The DOVER
United Kingdom’s largest international airport
ASHFORD Heathrow is located 11 miles to
GATWICK the West via the M4, providing a wide variety of both domestic and international
ALTON A3 CRAWLEY FOLKESTONE
A22 destinations.
A26
31
A23
A272 A272 UCKFIELD DEMOGRAPHICS
PETERSFIELD
PTON Richmond upon Thames has primary catchment population of 105,000 persons and the
population is forecast to rise by 1.4% per annum between the years 2015-2020, double
LEWES the PMA centre average. At 80% theRRichmond area contains a significantly above average
A3 (M)
CHICHESTER E
proportion V categorised within the most affluent AB and C1 social
of adults of working age
HASTINGS
D O
groups compared the to the national average of 53%. The average house price in Richmond
NEWHAVEN
PORTSMOUTH BRIGHTON O F compared to the national average of £241,600.
re-enforces this at £765,100
IT
EASTBOURNE R A is crucial to the borough’s overall economy and generates an estimated
PORTSMOUTH ST
Tourism in Richmond
ENGLISH CHANNEL total economic benefit of £469 million per annum attracting approximately 4.5 million visitors
per year. (Source: Richmond.gov.uk). Attractions in the borough include Richmond Park, the
Riverside, Hampton Court Palace, Kew Gardens, Twickenham Rugby Stadium and Richmond
town centre itself.
N
RETAILING IN
RICHMOND UPON THAMES
Richmond upon Thames provides a thriving retail and commercial centre
with a combination of national covenants and upmarket specialist retailers
which reflect the affluent nature of the catchment area. The prime pitch
centres on George Street where major retailers include House of Fraser,
Gap, Marks & Spencer, WH Smith and H&M.
The town has established itself as a high end shopping destination and
ranks 59 on the basis of its PMA Retail Score and 40 on the PMA Fashion
score with per capita spending levels significantly above the PMA average.
The town has a considerably above average volume and quality of retail
provision relative to the size of the shopping population reflecting the
importance of the town as a tourist and visitor location.
SITUATION
AQ DIE
U
OF NDE
UA S W
LA
FE R
R
EA
The property is situated on the north side of George Street occupying a
R
100% prime pitch. It is in close proximity to major brands which include
Gant, Natwest, H&M, Top Shop, Boots and Holland and Barrett.
DESCRIPTION
The property comprises a prominent mid-terrace building arranged over ground, basement
and three upper floors providing ground floor sales with self-contained accommodation
above which has been sold off on a long lease. The property is of brick built construction
with a part tiled, part flat roof.
ACCOMMODATION
The property provides the following areas:
Accommodation Sq m Sq Ft
Ground Floor Sales 73.02 786
ITZA – 542
Ground Floor Ancillary 15.2 164
Basement Basement has restricted height and is not usable
Total Area NIA 88.22 950
Upper Floors (Only applicable if the freehold interest is purchased)
First Floor Two Bedroom Flat*
Sold off on a long lease of 999 years at a
Second Floor Two Bedroom Flat*
total ground rent of £750 pa from completion
Third Floor One Bedroom Flat*
TENURE
The buyer can elect to purchase either the freehold of the property with the vendor
retaining the uppers on a 999 year lease or the leasehold interest of the ground floor
shop and basement on a 999 year lease from completion.
TOWN PLANNING
The building is located within the Central Richmond Conservation Area but is not Listed.
TENANCY
The ground floor and basement is let to Smiggle UK Limited for a term of
10 years from 13th August 2014 (C.8 years unexpired) on an effective full
repairing and insuring lease at a passing rent of £115,000 pa.
The lease is subject to an upward only rent review on 13th August 2019
and a tenant only break clause on 13th August 2019.
If the buyer elects to purchase the freehold interest, the vendor will retain
the upper three floors on a 999 year lease paying £750 pa in ground rent
with the rights to develop and extend above if desired.
COVENANT INFORMATION
Founded in Melbourne in 2003, Smiggle is an Australian retail chain that
sells stationery and related accessories. The company was acquired by
the Just Group in July 2007 with its first UK store opening 7 years later in
2014. Although originally based in Australia the chain has now grown
to become a global brand with stores located across New Zealand (23),
Singapore (17), United Kingdom (70) and Australia (137). The business
has produced the following headline accounts over the last 2 years:
25/07/2015 26/07/2014
Turnover £10,297,000 £1,165,000
Pre Tax Profit £641,000 -£1,678,000
Shareholder Funds £3,169,000 £2,657,000
RENTAL VALUE
The rent passing of £115,000 pa on the Smiggle unit devalues to a Zone A rent of £209 psf. Based on an ITZA of
542 sq ft, it is our opinion that the estimated rental value of the retail premises is in the region of £125,500 pa, which reflects
a Zone A rent of £230 psf. As the basement has restricted height and trap door access only we have applied nil value.
The principal evidence can be set out as follows:
Address Tenant Event Date £ Zone A
59 George Street Under offer Under offer August 2016 Quoting £240
50 George Street Tea Too Assignment June 2015 £225
44/45 George Street Massimo Dutti Letting September 2014 £230
39/40 George Street Itsu Letting April 2014 £200
36 George Street Reebok Letting October 2013 £238
50 George Street Ugg Letting December 2012 £220
36 George Street Pret-a-Manger Letting October 2012 £234.25
Whilst transactional evidence in prime locations is scarce in Richmond upon Thames, rents have seen a steady increase
in value in the past decade from £200 psf Zone A in mid-2005 to the £230 psf Zone A of today. There are currently very
few voids within the prime shopping core and this together with the town’s affluent population means rents are expected
to continue to grow over the coming years.
RECENT INVESTEMENT TRANSACTIONS
Address Tenant Date Size Sq ft Price NIY
8 The Quadrant Hamptons Estates Ltd May 16 1,974 £2.5 million 4.35%
42 George Street EE Jan 16 1,581 £2.675 million 4.15%
9-11 The Quadrant Multi-Let Dec 15 13,010 £8.6 million 5.01%
43 George Street Vacant Possession Jun 15 1,500 £2.9 million Vacant Possession
3 The Square Nationwide Feb 15 £3.88 million 4.28%
2 & 2A George Street Links of London Dec 14 1,230 £1.8 million 5.25%
60 and 61-62 George Street Boots Oct 14 6,400 £6.2 million 3.82%
15 George Street L’Occitane Aug 14 1,120 £3.18 million 3.86%
27-28 George Street Main tenants -
Aug 14 5,485 £5.85 million 4.68%
& 7-9 Church Court Office & 3Store
VAT
The property is elected for VAT.
EPC
57/58
The building has an EPC rating of D with a score of 82.
A copy of the Energy Performance Certificate is available
upon request.
GEORGE STREET
RICHMOND UPON THAMES TW9 1HE
Offers sought in excess of £2,165,000 (Two
Million One Hundred and Sixty Five Thousand
Pounds), subject to contract and exclusive of VAT. A
purchase at this level reflects a net initial yield of
5% and a reversionary yield of 5.42% in 2019 assuming
purchasers costs of 6.32%.
For further information please contact:
Alex Butler Richard Ward
020 7543 6722 020 7908 7034
alex.butler@allsop.co.uk richard@hrh.uk.com
Liam Stray Jeremy Lovell
020 7543 6769 020 7908 7037
liam.stray@allsop.co.uk jeremy@hrh.uk.com
www.allsop.co.uk www.hrh.uk.com
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.
allsop: September 2016 Produced by Barbican Studio: +44(0) 20 7634 9574
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