NCP BOURNEMOUTH BH2 6EJ - LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS - Allsop
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NCP BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP LIMITED FOR A FURTHER 18.2 YEARS.
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ
ENTRANCE EXIT
INVESTMENT CONSIDERATIONS PROPOSAL
Prime multi-storey car park located in the very heart of the Large strategic town centre investment providing 236 parking Offers sought in excess of £5,540,000 (Five Million Five
popular and affluent coastal town of Bournemouth spaces arranged over 8 levels with a site area of Hundred and Forty Thousand Pounds) subject to contract
Let to the strong covenant of National Car Parks (NCP) approximately 0.48 acres (0.19 Hectares) and exclusive of VAT. This reflects a net initial yield of
Limited (5A1) for an unexpired term of 18.2 years Virtual Freehold 5.25%, after allowing for purchaser’s costs of 6.63%.
Situated adjacent to Bournemouth’s principle retail and Direct Town Centre access from Bournemouth’s main arterial
leisure offerings, a short ten minute walk to Bournemouth’s road the A338
beach and pier Based on a purchase at asking terms the property has a very
Topped up rent passing of £310,065 pa subject to RPI low capital value of £82.15 psf
annual increases (1.5%-5% collar and cap)
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
A338
BOURNEMOUTH BROMPTON
LIBRARY COURT
BOURNEMOUTH
TOWN HALL
SITE AREA: 0.48 Acres (0.19 Hectares)
LEVELS: 8
TOTAL SQ FT: 67,436 BOURNEMOUTH
CENTRAL GARDENS
NATIONWIDE
OFFICES
THE SQUARE
THE BOURNEMOUTH
ORATORY
BOURNEMOUTH BH2
LOWER GARDENS
ST PETER’S CHURCH
BOURNEMOUTH BOURNEMOUTH BOURNEMOUTH
INTERNATIONAL CENTRE BEACH & PIER PAVILION THEATRE
0.1 MILES SOUTH ▼ 0.2 MILES SOUTH ▼ 0.1 MILES SOUTH ▼
Outline for indicative purposes only.
BASINGSTOKE
A350
A36
A338
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
A34
ANDOVER M3
A361
A36
A303 A303
A34
A36 A338
A37
A31
SALISBURY WINCHESTER
A303
A36 M3
A350 A3
A354 A338
YEOVIL M27 M271
A33
SOUTHAMPTON
M27 A3(M)
LYNDHURST
A37 A31
A27
A350
NEW FOREST
NATIONAL PARK
A354 A338 PORTSMOUTH
A31
A348
A35
CHRISTCHURCH
CENTRAL GARDENS
A35 DONCASTER POOLE BOURNEMOUTH
ISLE OF WIGHT
A354
SWANAGE 21.9m
WEYMOUTH
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© Crown Copyright, ES 100004106.
Posts For identification purposes only.
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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:806
LOCATION
The attractive and prosperous town of Bournemouth is a major commercial and tourist destination located on the South Coast of England.
The town, together with Poole and Christchurch, form the Dorset conurbation and is one of the largest and most affluent conurbations
along the South Coast. Bournemouth is located approximately 100 miles (160 km) south west of London, 50 miles (80 km) west of
Portsmouth, 30 miles (48 km) west of Southampton, 40 miles (64 km) south west of Winchester and 6 miles (9.6 km) east of Poole.
Bournemouth benefits from excellent transport communications being situated on the A348 which links with the A31 and then Junction 1
of the M27 Motorway. The M27 connects Bournemouth to Southampton and Portsmouth to the east as well as London and the National
Motorway network (via the M25) to the north. Bournemouth is also well connected to the west via the A35, one of the main arterial
routes along the South Coast, linking Southampton to the east with Exeter and the M5 to the west.
Bournemouth train station is located within the city centre, a five minute drive from the subject property, providing direct rail services into
London Waterloo with a fastest journey time of approximately 1 hour 50 minutes. Regular train services run to Poole and Weymouth.
Bournemouth International Airport is located approximately 4 miles north of the town centre while Southampton International Airport is
located approximately 33 miles (53 km) to the north east.
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
SITUATION
The property is located in the heart of Bournemouth on the west side
of Richmond Hill, adjacent to the town’s principle public square,
‘The Square’. Richmond Hill benefits from excellent accessibility
connected to the town’s main arterial road the A338, providing
direct access to the Town Centre. Bournemouth’s picturesque
Central Gardens and Lower Gardens are located just south of
the subject property.
The property is situated a short 10 minute walk to Bournemouth’s
beach front and pier, and provides easy access to the town’s
two principle theatres The Pavilion and The International Centre.
Richmond Hill, and the immediate surrounding area, are a popular
leisure and retail location with The Odeon Cinema located in
close proximity, alongside a number of national and independent
occupiers including Debenhams, Sports Direct, Zizzi, New Look,
Slug & Lettuce and Pizza Express.
DESCRIPTION
The property is arranged as a multi-storey car park over ground
and seven upper levels (including two levels of rooftop parking).
The car park is situated behind the predominately leisure and retail
frontage of Richmond Hill with access to the car park from the west
side of the street. The entrance to the car park is accessed via ground
floor level whilst the car park’s point of exit is on level 2 alongside
the car park’s staff accommodation. The stairwell is located at the
right of the northern end of the property, which incorporates two lifts.
The property provides a total of 236 car parking spaces and
an approximate site area of 0.48 acres (0.19 Ha). The total
floor area is shown in the accommodation schedule below.
ACCOMMODATION (GIA)
Level Sq M* Sq Ft*
Ground 640 6,889
1 911 9,806
1A 740 7,965
2 894 9,623
2A 742 7,987
3 905 9,741
3A 619 6,663
4 814 8,762
Total 6,265 67,436
*Measurements are approximate and for indication only – not to be fully relied
upon. Any interested party should carry out their own measured survey.
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
DRIVER DEMAND
HEART OF BOURNEMOUTH’S CONVENIENT BOURNEMOUTH
BOURNEMOUTH PRIME RETAIL LOCATION ACCESS BEACH
Conveniently located in the Situated in Bournemouth’s The car park has direct Town Bournemouth’s seven miles of sandy
very centre of Bournemouth, primary retail location alongside Centre access from Bournemouth’s beach and pier is a short 10 minute
adjacent to the ‘The Square’ and a number of national multiples main arterial road the A338, walk from the subject property and is
Bournemouth’s central Gardens. and independent retailers. offering convenient central access. the Town’s most popular attraction.
RESTAURANT HOT SPOT CINEMA & THEATRE LOCAL TOURISM CAR OWNERSHIP
The car park is adjacent to Zizzi, The state of the art Odeon BH2 Bournemouth attracts 5.8 million The level of car ownership in
Slug & Lettuce and Pizza Express with Cinema Complex is located across day visitors per year, many of Bournemouth is significantly above
a number of independent restaurants The Square and Bournemouth’s those arriving by car. There is average with a particularly high
and cafes in close proximity. Pavilion Theatre and International almost no parking near the proportion of 2 car households.
Centre are a short walk to the south. beach itself.
DEMOGRAPHICS
Bournemouth has a residential population of 187,503 and a The town is an important destination for tourists with an estimated firms including Standard Life and JP Morgan Chase. The service sector
primary shopping catchment of 172,000, ranking the town 46th 1.06 million staying visitors and 5.82 million day visitors each accounts for approximately 80% of total employment in Bournemouth,
of the PROMIS Centres. Bournemouth is an affluent town with an year. The South West Research Company reported in 2015 staying of which financial and business services accounts for approximately
above average proportion of adults of working age categorised visitors spend approximately £287m. 28%. Bournemouth is also home to two universities, Bournemouth
within the most affluent AB social group, with high levels of Bournemouth is a major conference venue and also plays an University and Arts University Bournemouth, and has a growing
employment, car and house ownership. important role as a back office location for a number of international student population in excess of 17,000 students.
NCP THE SQUARE RICHMOND HILL BOURNEMOUTH BH2 6EJ LONG INCOME CAR PARK INVESTMENT LET TO THE 5A1 COVENANT NCP FOR A FURTHER 18.2 YEARS
TENANCY
The property is let in its entirety to National Car Parks Limited on a full repairing and
insuring lease for a term of 34 years and 11 months (no breaks) from 29th June 2002
to and including 28th May 2037(18.2 years unexpired). The current passing rent is TENANT COVENANT INFORMATION
£305,483 pa rising to a minimum of £310,065 pa in June 2019 reflecting £1314
NCP is the UK’s most recognised and longest standing private car park operator A post-acquisition risk evaluation conducted by Dun & Bradstreet rated NCP
a space – the Vendor will top up the rent to the minimum uplift from completion.
being founded in 1931. NCP operates car parking spaces across the UK at over 5A 1, the highest available rating, highlighting the marked improvement in credit
The lease benefits from annual Retail Price Index linked rent reviews, with a collar 500 sites for approximately 150,000 cars, possessing a 30% market share. quality following the acquisition. National Car Parks Limited has an Experian
of 1.5% and a cap of 5%. The tenant has an option to renew the tenancy for a NCP Limited is jointly owned by Park24 and the Development Bank of Japan Credit Rating of 100 - which indicates a ‘Very Low Risk’. National Car Parks
further 20 years on identical terms, at the rent then passing. The lease is Outside (DBJ), both investment grade rated businesses with substantial cash generation Limited’s financial results for the last 3 years are summarized below:-
the 1954 Landlord & Tenant Act. potential and cash/capital reserves relative to the NCP Group.
Year Ending Turnover Pre Tax Profit Net Worth
The joint venture (JV) purchased NCP Limited in July 2017 for an indicative
enterprise value of £440 million. As part of the Acquisition 100% of the NCP 31/03/2017 £211,461,000 £24,793,000 £210,138,000
TENURE
Group’s external debt was repaid. (Park24 is a listed Japanese company based 25/03/2016 £202,703,000 £28,001,000 £186,896,000
Virtual Freehold. Held for a term of 999 years, commencing on 23 July 2002 in Tokyo, and is a major parking operator with over 1 million spaces in 19,000
for a term of 999 years and expiring on 22 July 3001 (thus having some 983 years sites across 8 countries). DBJ is a Japanese Government owned financial 27/03/2015 £198,736,000 £14,859,000 £156,973,000
unexpired), at a total head rent of £10 per annum. institution with a strong track record in infrastructure finance.
RUNNING YIELD ASSUMING AN ANNUAL Year Rent NIY 2024 £359,450 6.09% 2029 £416,701 7.06% 2034 £483,071 8.18%
AVERAGE RPI LINKED UPLIFT OF 3% AND 2020 £319,367 5.41% 2025 £370,234 6.27% 2030 £429,202 7.27% 2035 £497,563 8.42%
2021 £328,948 5.57% 2026 £381,341 6.46% 2031 £442,079 7.48% 2036 £512,490 8.68%
A PURCHASE AT 5.2% NIY.
2022 £338,816 5.74% 2027 £392,781 6.65% 2032 £455,341 7.71%
2023 £348,981 5.91% 2028 £404,565 6.85% 2033 £469,001 7.94%
VAT PROPOSAL
The property has been elected for VAT and it is anticipated that the
transaction will be treated as a Transfer of a Going Concern (TOGC).
Offers sought in excess of £5,540,000 (Five Million Five Hundred and Forty Thousand Pounds) subject to
contract and exclusive of VAT. This reflects a net initial yield of 5.25%, after allowing for purchaser’s costs of 6.63%.
DATAROOM
For access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/NCPBournemouth For further information or to make arrangements for viewing please contact:
Liam Stray Richard Lea Henry Tye
020 7543 6769 020 7543 6832 020 7543 6737
liam.stray@allsop.co.uk richard.lea@allsop.co.uk henry.tye@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,
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. Design CommandD www.commandHQ.co.uk 03.19
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