99-109 HIGH STREET PRIME HIGH STREET PAR ADE - LoopNet
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PRIME HIGH STREET PAR ADE
99-109
HIGH STREET
C H E LT E N H A M
Cheltenham is an attractive Regency Spa
CHELTENHAM town in Gloucestershire that is recognised as
being the ‘Gateway to the Cotswolds’.
I N V E ST M E N T SU M M A RY
• Located in the attractive Regency Spa town of
Cheltenham, which boasts a large, affluent catchment
consumer spending and popular tourist attractions.
• The town’s quality retail offer has recently welcomed
a new full-line John Lewis store, which we expect will
have a positive impact on rents in the town and in
particular the subject pitch.
• Attractive and prominent mid terrace Regency style
parade providing three well configured, modern retail
units, totalling 41,081 sq ft.
• Freehold.
• Strong, national tenant line-up of New Look Retailers
Limited (Category A Store), The Works Stores Limited
and The Entertainer (Amersham) Limited.
• New Look recently re-geared on a 10 year lease at
the passing rent.
• Long dated Weighted Average Unexpired Lease Term
(WAULT) of 8.30 years to expiry and 5.20 years to
break.
• We are instructed to seek offers in excess of
£7,600,000 (Seven Million Six Hundred Thousand
Pounds) subject to contract and exclusive of VAT. This
equates to an attractive Net Initial Yield of 6.50%
after deductions for purchaser’s costs of 6.66%.
WOLVERHAMPTON
M69
8 7
9
HINCKLEY
2
1
1 6 5 8
2 M1
3
BIRMINGHAM 3
20
6 2
M6
M5 SOLIHULL COVENTRY 1 19
KIDDERMINSTER 4
5
4
1 2
M423
18 CHELTENHAM
BROMSGROVE 16 17
M40 LEAMINGTON
5 SPA
DEMOGRAPHICS
REDDITCH
15 14 DAVENTRY
M5 13
6
WORCESTER 12
7 The town benefits from a highly affluent and loyal catchment population
with the Primary Retail Market Area extending to 247,000 people and
GREAT M40
MALVERN
the shopping population totalling 225,000 people, highlighting extremely
EVESHAM
BANBURY 11
high penetration. 63% of the catchment is categorised within the most
HEREFORD 8
1
affluent ABC1 social groups, versus the Promis 200 average of 52%.
2 9 Furthermore, this population is expected to see above average growth,
M50 TEWKESBURY estimated at 0.68% pa, over the period 2018-2013 (PMA).
M5 10
4 3 10
GLOUCESTERSHIRE Cheltenham attracts a vast number of tourists with over 2.2 million
GLOUCESTER
11
C H E LT E N H A M 9 visitors per annum bringing an estimated £158 million to the local
KIDLINGTON economy in 2016 alone (Cheltenham Borough Council). This is a result
ABERGAVENNY
12 WITNEY of numerous town centre tourist attractions, and of course the world
renowned annual Cheltenham Festival.
13
STROUD OXFORD
8
M5 CIRENCESTER 7
PONTYPOOL
247,000 63%
ABINGDON
CHEPSTOW
14
2
26 25 24 M48 1
DIDCOT
27 23
28
NEWPORT M4 22
21
SWINDON Persons in the Primary Within ABC1
M4 30 29
Retail Market Area Social Groups
16 16
32 17 M4 15
4 33 19 17
CARDIFF 19
18 1 M4 18
2
M32 M4
M5 3
CHIPPENHAM 14 13
CLEVEDON 12
225,000 0.68% pa
20
BRISTOL
BARRY NEWBURY
21
BRISTOL BATH
Estimated Shopper Population Growth
L O C AT I O N BASINGSTOKE
Population (2018-2023)
Cheltenham is an attractive Regency Spa town in Gloucestershire that is recognised as being the ‘Gateway to the
Cotswolds’. The town is located 40 miles northeast of Bristol, 40 miles southeast of Birmingham and 88 miles west of
London.
£1.48bn 2.8% pa
Total Retail Estimated Retail
Cheltenham benefits from excellent transport links with the A40 running through the town centre and providing access to
Expenditure in Expenditure Growth
the rest of the country via the M5 (3 miles to the west). By rail Cheltenham Spa station hosts direct services to London
Cheltenham in 2018 (2018-2023)
Paddington of approximately 2 hours, and regular services also operate to Bristol, Birmingham, Manchester and Glasgow.
R E TA I L I N G I N C H E LT E N H A M
The core retail centre in Cheltenham is compact and comprises the High Street, together with a
number of streets running perpendicular from it, principally Promenade and Regent Street.
Cheltenham ranks strongly on the basis of its retail offer (29th based on PMA) with major multiples
including M&S, TK Maxx, Next, River Island, and H&M. There is also significant representation from
aspirational fashion retailers reflecting the demographic profile including Reiss, Radley, Karen Millen,
The White Company and Hobbs.
A £23 million redevelopment of the former Beechwood Shopping Centre saw John Lewis opening a
new 115,000 sq ft store in October 2018. This addition has dramatically enhanced Cheltenham’s retail
offer, enabling it to attract shoppers from further afield and considerably strengthening the eastern
end of High Street.
THE JOHN LEWIS EFFECT
We expect that the John Lewis opening will have a positive impact on Zone A rents in the town and
the subject pitch in the medium term, particularly when considering alongside rents in other John
Lewis locations:
AVERAGE
Peterborough
Aberdeen
P R I M E Z O N E A’ S
Sheffield I N OTH E R J O H N
Leicester L E W I S L O C AT I O N S
CHELTENHAM
Norwich
( E XC L U D I N G
Exeter SUPER REGIONAL
Chelmsford
SHOPPING CENTRES)
Solihull
Watford
Nottingham
Reading
Leeds
Edinburgh
Oxford
Liverpool
Cardiff
Cambridge
Newcastle-upon-Tyne
Glasgow
Birmingham
Southampton
0 50 100 150 200 250 300 350 400
Source: PMA / Knight Frank
CHELTENHAM S I T UAT I O N The property is situated on the pedestrianised eastern end of High Street, the town’s principal retail thoroughfare. The subject pitch has been strengthened with the addition of a 115,000 sq ft John Lewis store, as well as from a £1 million street-landscaping initiative by the Council, improving the amenity offering at the eastern end of the High Street. Retailers in the vicinity include Superdrug, Costa Coffee, Barclays and Iceland. 111 High Street (adjoining unit) is currently under offer to a national multiple on a split basis.
CHELTENHAM
DESCRIPTION
The property is an attractive and prominent mid terrace Regency style parade providing
three retail units. 103-109 High Street is a well configured MSU arranged over basement,
ground and first floor. 99 & 101 High Street are arranged over ground and first floor.
The parade encompasses a significant site area of 0.62 acres and all units benefit from rear
servicing from the service yard to the rear of the property.
TENURE TENANCIES
Freehold. The property provides a Weighted Average Unexpired Lease
Term (WAULT) of 8.30 years to expiry and 5.20 years to break.
Address Tenant Floor Areas Lease From Lease To Next RR Rent Comments
(Break Option)
99 High Street The Entertainer Ground Floor Sales - 2,785 sq ft 19/05/2006 18/05/2021 19/05/2016 £130,000
(Amersham) Limited ITZA - 1,075 units
First Floor Ancillary - 2,432 sq ft
Total - 5,217 sq ft
101 High Street The Works Stores Ground Floor Sales - 2,060 sq ft 12/10/2017 11/10/2027 12/10/2022 £72,000
Limited ITZA - 919 units
First Floor Ancillary - 1,868 sq ft
Total - 3,928 sq ft
103/109 High Street New Look Retailers Ground Floor Sales - 10,505 sq ft 11/01/2010 10/01/2030 11/01/2025 £325,000 Category A Store
Limited First Floor Sales/Ancillary - 10,867 sq ft (10/01/2025) Reversionary lease signed
Basement Ancillary - 10,564 sq ft 25/03/2019. 10 year extension with
Total - 31,936 sq ft (GIA) tenant break in year 5 (6 months
notice). 6 months rent free granted,
to be topped up by the vendor.
Total 41,081 sq ft £527,000 pa
CHELTENHAM
C OV E N A N T S
N E W L O O K R E TA I L E R S L I M I T E D TH E WO R K S STO R E S LI M ITE D T H E E N T E R TA I N E R ( A M E R S H A M )
LIMITED
New Look has been a prominent fashion retailer on the British The Works Stores Limited trading as The Works is a discount
High Street for over 50 years. Whilst the company undertook retailer based in the UK selling predominantly books, games The Entertainer (Amersham) Limited is the UK’s largest
a CVA in March 2018, the company has since re-financed, and stationary. The retailer was founded in 1981 and a stock independent toy retailer and was founded in 1981. It has
raising £150m. Performance since the CVA has been positive, market float in 2018 raised £65 million. Encouragingly sales and recently reported exceptionally strong trading figures, including
benefitting from offloading 85 under performing stores and profits have been on an upward trend, in the past three years 31% year-on-year increase in profits. During 2018, the chain
saving the group £80m whilst also recording a profit of £38.5m sales have risen by 14% to £189.3m and underlying profits are added 16 stores, taking its portfolio to 163, whilst also
between March - December 2018. The subject property was a up 14% to £12m (July 2018). acquiring competitor, the Early Learning Centre.
top performing Category A store and the CVA had no impact
on the lease terms. Furthermore, the tenant has recently
extended the lease at the passing rent in return for 6 months
rent free.
Pre-Tax Shareholders’ Pre-Tax Shareholders’ Pre-Tax Shareholders’
Fin.Year End Turnover Fin.Year End Turnover Fin.Year End Turnover
Profit Funds Profit Funds Profit Funds
24/03/2018 £1,226,075,000 -£257,010,000 £177,604,000 29/04/2018 £192,100,000 £7,537,000 £31,244,000 27/01/2018 £163,855,000 £11,914,000 £32,360,000
25/03/2017 £1,324,195,000 £84,987,000 £432,899,000 30/04/2017 £166,421,000 £5,154,000 £24,710,000 28/01/2017 £152,605,000 £8,661,000 £27,033,000
26/03/2016 £1,398,502,000 £178,532,000 £375,730,000 01/05/2016 £154,398,000 £9,796,000 £20,080,000 30/01/2016 £139,480,000 £6,852,000 £26,872,000
CHELTENHAM
I N V E S T M E N T C O M PA R A B L E S
WAULT to Expiry
Date Address Tenant Price NIY Purchaser
(WAULT to Break)
Dec-18 72-74 Promenade, Cheltenham T2 & Molton Brown 4.2 years (1.9 years) £4,680,000 5.17% Private Investor
Sep-18 211 High Street, Cheltenham Caffé Nero 6.5 years (1.5 years) £1,280,000 4.79% Cheltenham BC
Jul-18 91-97 High Street, Cheltenham Argos (part sublet to Superdrug) 4 years £2,850,000 6.30% Private Investor
Feb-18 84 Promenade, Cheltenham The White Company 1 year £3,350,000 4.31% Alterity Investments
Jan-18 108-110 Promenade, Cheltenham Joules & Vinegar Hill 5.8 years £6,050,000 5.00% Colombia Threadneedle
CHELTENHAM EPC 99 High Street (The Entertainer) - D94 101 High Street (The Works) - D95 103-109 High Street (New Look) - D81 Further information available upon request. VAT The property has been elected for VAT and we would expect the transaction to be treated as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of £7,600,000 (Seven Million Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive Net Initial Yield of 6.50% after deductions for purchaser’s costs of 6.66%. C O N TAC T For further information or to make arrangements for viewing please contact: ALASTAIR BIRD SAM WATERWORTH 020 7861 1232 020 3909 6821 alastair.bird@knightfrank.com sam.waterworth@knightfrank.com IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc:The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London,W1U 8AN, where you may look at a list of members’ names. May 2019. Designed and produced by Creativeworld.Tel: 01282 858200.
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