6 & 6A CLARENCE STREET - KINGSTON-UPON-THAMES 100% PRIME FLAGSHIP RETAIL BANK INVESTMENT FOR SALE - Jackson Criss
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4, 6 & 6A CLARENCE STREET KINGSTON-UPON-THAMES 100% PRIME FLAGSHIP RETAIL BANK INVESTMENT FOR SALE
INVESTMENT SUMMARY • The Royal Borough of Kingston-Upon-Thames is a leading affluent retail centre in South West London. • Freehold. • Highly prominent location, occupying a prime position on the pedestrianised Clarence Street, at its junction with Church Street and located between JLP and the main entrance to the Bentall Centre. • Let to the undoubted covenant of Barclays Bank UK PLC with just over 8.25 years remaining on the lease. Barclays has been in occupation since c 1908 and carried out a refit of the subject property in 2018. • The tenant has recently removed the break clause effective 5th October 2022. • Our clients are seeking offers in excess of £10,300,000 (Ten Million, Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 5.00% after allowing for normal purchaser’s costs at 6.70%. 4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
A 4 M1
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UXBRIDGE 06
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LOCATION
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A 41
8 A 4020
A30
M25 GREENFORD
Kingston-Upon-Thames is one of the UK’s leading
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MAIDENHEAD
commercial and retailing centres and is one of the A 40
A4
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A
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EALING 40
only 6 Royal Boroughs in England andA404(M)
Wales. The
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SLOUGH
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HAYES CENTRAL
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SOUTHALL
town is located in the affluent South West of Greater
BRAY M4
A406
LONDON
London, approximately 5 miles south of Richmond,
M4 HAMMERSMITH
11 miles west of Croydon and 12 miles south west J15/
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CHISWICK A4
A4
of Central London. The town benefits from excellent A308
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communications, with it being in close proximity to the WINDSOR A4 BAT H RD
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FIFIELD A4
0
M25, M3 and A3. The town benefits from a regular
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BATTERSEA
PUTNEY
commuter rail service to London Waterloo, with a HEATHROW AIRPORT RICHMOND
es
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A205 er T h a m
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fastest journey time of approximately 20 minutes. OLD M25 HOUNSLOW A205 A3
A3
WINDSOR A214
CLAPHAM
London Heathrow Airport is located approximately
WINKFIELD
40 miles west of the town and London Gatwick A 30 FELTHAM
A3
Airport is located 17 miles to the south east, enabling TWICKENHAM
EGHAM STAINES A 30
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easy access to a diverse range of domestic and 16
A3
TEDDINGTON WIMBLEDON
international flights.
BRACKNELL
KINGSTON UPON
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A308
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A329 M3 THAMES MITCHAM
ASCOT VIRGINIA
WATER
DEMOGRAPHIC PROFILE
Kingston has an estimated primary catchment
population of 887,000, significantly above the
Regional Centre average and ranking the town 13th
out of the PROMIS centres on this measure. The
estimated shopping population of Kingston is 467,000,
ranking the town 15th out of the PROMIS centres,
reflecting the dominance of Kingston across its
densely populated catchment area.
The town also ranks 11th in terms of the volume of
comparison retail spend available in the catchment
area and is forecast to see significantly above average
growth in that spending between 2015 – 2020.
Kingston has an affluent catchment population,
with a 36% representation of ABC1 demographics
and an average house price of £487,000 (Q3 2017)
according to data from The Royal Borough of
Kingston upon Thames.
4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
RETAILING IN KINGSTON
Kingston-Upon-Thames is one of the Kingston offers 2 quality department stores The other main managed shopping centre is
UK’s most significant and renowned retail in John Lewis and Bentalls, with variety Eden Walk, which comprises approximately SITUATION
centres, arguably one of the strongest High stores including Marks & Spencer and 290,000 sq ft of retail floor space and is
The subject property occupies
Street shopping destinations within the M25 Primark. anchored by Boots and Habitat. British
a prime trading location on the
outside of Central London. Land and the Universities Superannuation
pedestrianised Clarence Street,
The main focus of prime retail activity in Scheme (USS) have planning permission to
close to its Junction with Church
The town centre retail floor space in Kingston is the pedestrianised Clarence carry out a transformative redevelopment
Street, whilst in close proximity to
Kingston is estimated at 1.40m sq ft. Street, home to Marks & Spencer’s two of Eden Walk to feature new stores,
JLP and the main entrance to The
Kingston ranks 16 on the base of its PMA stores and the main entrance to The Bentall dining terrace, boutique cinema and a
Bentall Shopping Centre.
retail score and 16 on the PMA fashion Shopping Centre. The prime retailing “sky” restaurant. The complex will also
score. The town’s high ranking on the extends into The Bentall Shopping Centre, include 385 residential flats. The proposed
PMA retail and fashion scores, reflects an which comprises approximately 600,000 timescale for completion is 2023/2024.
extensive range of fashion and non-fashion sq ft of retail floor space and trades over
retailers in the town. Key fashion retailers 4 floors. Aviva are making improvements Primark have extended their store on Eden
include Cos, H&M, Hollister, Primark, New to the malls and the scheme’s entrance to Street by approximately 59,000 sq ft,
Look, Monsoon and River Island, as well Fife Road. A new Curzon 5 screen cinema which will further strengthen the secondary
as upper middle quality operators such as including an open air roof top cinema will thoroughfare of Eden Street.
Karen Millen, Jigsaw, Reiss, LK Bennett and open in March 2020 with 2 new restaurants.
Massimo Dutti.
4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
NORTH 4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
DESCRIPTION The property comprises a period building providing sales/office accommodation on the ground, first and second floors, with ancillary space provided on the basement and third floor levels. The property is not listed, but is within the Kingston Old Town Conservation Area. The original part of the building is noted as a building of townscape merit. ACCOMMODATION The property comprises the following approximate dimensions and net internal floor areas: - Clarence Street Frontage 83 ft 6 in 25.45m Church Street Frontage 23 ft 4in 7.11 m Display Frontage 9 ft 9 in 2.97 m Wood Street Frontage 21 ft 2 in 6.45 m Internal Width 79 ft 4 in 24.18 m Ground Floor Sales 2,373 sq ft 220.45 sq m Ground Floor ITZA 1,966 sq ft First Floor Sales 2,357 sq ft 218.96 sq m Second Floor Sales 2,209 sq ft 205.22 sq m Third Floor Ancillary 862 sq ft 80.08 sq m Basement Storage 1,561 sq ft 145.02 sq m Total Accommodation 9,362 sq ft 869.75 sq m 4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
TENURE
The property is held freehold.
TENANCY
The entire property is let to Barclays Bank UK PLC
on a full repairing and insuring lease for a term
of 20 years from 5th October 2007, expiring 5th
October 2027. The current rent passing is £550,000
pa and the lease is subject to 5 yearly upward only
rent reviews with the next rent review due on 29th
September 2022.
At review the premises may be used for Class A1,
A2 and B1 of the Town and Country Planning (Use
Classes (Amendment)) England Order 2005.
The lease is Full Repairing and Insuring and is
subject to a schedule of conditions, when will have
been largely superseded by the 2018 refit.
RENTAL ANALYSIS
It is our opinion that the current passing rent of
£550,000 reflects a Zone A rent of approximately
£266 per sq ft, making a 17.5% allowance to shape/
hard frontage, reduced to 12.5% with a positive 5%
addition for return frontage/prominence. We have
applied A/10 to the first floor sales, £10 per sq ft to
second floor sales/office and £3 per sq ft to the third
floor and basement accommodation.
4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
RENTAL VALUE
It is our opinion that the estimated rental value of the subject
premises as of today’s date would lie in the region of £520,000 pa
exclusive which reflects a Zone A rent of £250 psf applying the
devaluation previously stated.
The historic prime Zone A tone for Clarence Street, Kingston was
c £310 psf Zone A.
COVENANT STRENGTH
Barclays Bank UK PLC is a British multi national investment bank
and financial service company headquartered in London. The
company specialises in retail, wholesale and investment banking.
Barclays Bank is one of the most recognised brand names on the
UK high street with over 14,000 branches and locations across
the country. Barclays has a primary listing on the London Stock
Exchange and is a constituent of the FTSE 100 Index. The summary
account information can be set out as follows: -
Date of 31/12/2018 31/12/2017
Account £000 £000
Turnover - -
Pre Tax Profit 1,548,000 14,060
Net Worth 13,409,000 159,269
The company have an Experian Credit score of 83/100 reflecting low risk.
4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
VAT We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged that the sale will be dealt with as a Transfer Of A Going Concern (TOGC). EPC The property has an EPC rating of E120. A copy of the EPC certificate and report is available from this office. 4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
PROPOSAL We are instructed to seek offers for the freehold interest in excess of £10,300,000 (Ten Million Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect the following yield profile net of purchaser’s costs at 6.70%. Net Initial Yield 5.00% Reversionary Yield 4.73% Equivalent Yield 4.76% True Equivalent Yield 4.91% The sale price reflects a low capital value of £1,100 psf. The principal comparable evidence can be set out as follows: - 1. 54 Clarence Street (HSBC) Freehold retail investment let of a rent of £377,206 pa, which devalues to a Zone A rent of £315 psf sold in November 2018 for £7,445,000 which reflected a net initial yield of 5.07%. The property is let to HSBC on a lease to expire December 2027 with annual RPI reviews collared and capped at 3% and 5%. The sale price reflected £1,760 per sq ft and the property is in a secondary location. 2. 21/27 Church Street, Kingston (White Stuff / Molton Brown) Freehold retail investment sold in November 2018 for £10m which reflected a net initial yield of 4.26% and a capital value of £2,027 psf. The block was overrented and had a Wault of 5 years to expiry. 3. 22 Clarence Street, Kingston (Itsu) Freehold retail investment let to Itsu on a lease to expire March 2022 at a rent of £350,000 pa which reflected a Zone A rent of £305 psf. The property was purchased in July 2018 for £7.15m which reflected a net initial yield of 4.60% and an equivalent yield of 4.15%. The sale price reflected a capital value of £1,429 psf. 4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE
For further information, please contact:
Philip Hay BSc (Hons) MRICS Mike Jameson BSc MRICS
020 7637 7100 020 7637 7100
phay@jacksoncriss.co.uk mikej@jacksoncriss.co.uk
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or
contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations
of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. TCC 101715. June 2019.
4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALEYou can also read
