CHESTER 18-20 EASTGATE STREET & 20-22 EASTGATE ROW - 100% Prime freehold retail investment with residential development potential - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
100% Prime freehold retail investment with residential development potential
CHESTER 18-20 EASTGATE STREET &
20-22 EASTGATE ROW
Sat Nav Ref: CH1 1 LF
INVESTMENT SUMMARY 2
• Chester is an attractive, affluent and historic
Cathedral City that benefits from a thriving
tourism industry, attracting over 8 million
visitors a year.
• Chester was ranked the 2nd best place to live
in the UK (outside of London) by CACI.
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
• 100% prime retail investment on Eastgate
Street, Chester’s premier retailing
thoroughfare.
• Recently let retail units offering excellent
prospects for rental growth from re-based
rents.
• Let to Penhaligon’s, Aurum Group and
Pavers – with a WAULT of 9.6 years until
expiry.
• The property offers a number of asset
management opportunities, including
potential conversion to residential use
(subject to planning).
• Freehold
Total current income: £213,250 per annum
Price: £3,410,000
Net Initial Yield: 5.87%
(Subject to contract & exclusive of VAT)
A570
A580 A580
A580
A57
Liverpool A5058
A67
A557
A562
A50
A561 A5300
A41 A557
A558
A56
3
A49
A558
A556
A533
A550
A55
A556
A49
Chester A51
A55
A41
A494 A51 A530
A534
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
A534
A534
A483 A41
A49 A51
100% prime retail investment on
LOCATION Eastgate Street, Chester’s premier
The historic and affluent Cathedral City of Chester is the county town and
administrative centre for Cheshire. The city is located approximately 20 miles
retailing thoroughfare
south of Liverpool and 35 miles southwest of Manchester.
DEMOGRAPHICS
Chester, which traces its origins back to the 1st Century A.D, is still ringed by
one of the most complete remaining examples of a Roman wall. The city’s Chester has an extensive primary retail catchment of 810,000, ranking the
historic and cultural significance attracts over 8 million visitors a year, with city 15th of the PROMIS centres. Chester ranks 19th in terms of the volume
tourism estimated to generate an annual revenue of £1.7 billion. of comparison retail spend available in the catchment area and is forecast
to experience above average percentage growth in the available pool of
Chester benefits from excellent road communications, with the city’s comparison spending over the period 2016-2021 (source: PROMIS).
ring road linking with the M53 and M56 and onto the national motorway
network. The city’s unique heritage and thriving local economy has attracted a number of
notable financial and business services employers to the area. Major employers
By rail, the city’s mainline railway station provides regular services to include: Lloyds Bank, Bank of America, Shell and Marks & Spencer Financial
London Euston (2 hours), Liverpool (45 minutes) and Manchester (1 Services.
hour and 5 minutes).
In addition to the historic city centre, other major attractions include Chester
In addition, both Liverpool John Lennon Airport and Manchester Cathedral, Chester Race Course and Chester Zoo, a top 10 UK Visitors Attraction
International Airport are located within a 40 minute drive time of Chester. with over 1.4 million visitors annually.
RETAILING IN CHESTER 4
Chester is one of the region’s premier retail destinations, comprising an aesthetically
attractive and appealing retail environment.
Chester’s retail core is focused on Eastgate Street, extending into Foregate Street
and Northgate Street. Major retailers with representation here include:
100% prime is recognised to be the pedestrianised section of Eastgate Street that
falls within the historic Roman walls, where there are very few vacancies and of
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
which the subject property forms part.
Chester is also famous for its Row level trading format, with its principal thoroughfares
accommodating the distinctive two-level properties known as “The Rows”. This
provides a unique and alluring retail environment that attracts up market, boutique
style retailers, shoppers and tourists alike. Examples of these aspirational, boutique
brands that have representation include:
Chester has two covered shopping centres. The Grosvenor Centre, located in close
proximity to the subject property, is the dominant scheme in the town. Totalling
245,000 sq ft and including a 410 space car park, the scheme is anchored by Browns
of Chester department store (operated by Debenhams) with other tenants including
H&M, TK Maxx and Topshop.
The secondary scheme in the city is The Forum Centre, which is located at the northern
end of Northgate Street and is due to be redeveloped as part of Chester Northgate.
The development proposals are for a retail and leisure led scheme comprising a
100,000 sq ft department store, a multiplex cinema (to be Picturehouse), a hotel
(Crowne Plaza), a new market hall, 70 residential units and car parking for around
800 vehicles. Planning permission for the scheme has been granted, with completion
scheduled for 2021.
It is our opinion that the development of Chester Northgate will further enhance
Chester’s standing in the retailing hierarchy, whilst also providing a significant boost
to the local economy.
5
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
SITUATION DESCRIPTION
The property is situated in a 100% prime trading location on The property comprises two attractive, four storey terraced buildings that are
the pedestrianised Eastgate Street. The property is located Grade II Listed. The retail element consists of two ground floor units (18/20
on the southern side of Eastgate Street just to the west Eastgate Street – let to Aurum Group and Penhaligon’s), with two further units
of the Browns of Chester department store (operated by at Row level (20/22 Eastgate Row – one currently vacant and one let to Pavers).
Debenhams), adjacent to Jack Wills and opposite Fat Face
and EE. Other retailers in the immediate vicinity include Jo The first and second floors provide ancillary accommodation and in our opinion,
Malone, Kuoni, Hobbs, Ernest Jones, Cath Kidston and a would be suitable for conversion to residential use (subject to planning).
number of high end jewellery operators.
The property offers a number of 6
asset management opportunities,
including potential conversion to
residential use (subject to planning)
ACCOMMODATION
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
The property provides the following approximate net internal floor areas:
Address Tenant Accommodation (sq ft) Comments
ITZA: 449 Units 12.5% discount applied to
Penhaligon’s GF Sales: 1,202 ITZA for shape and step.
18 Eastgate St
Limited GF Anc: 48
Total: 1,250 Gross ITZA: 513 Units.
Aurum Group ITZA: 234 Units 12.5% discount applied to
20 Eastgate St Ltd (t/a The GF Sales: 440 ITZA for shape and step.
Watch Lab) Total: 440 Gross ITZA: 267 Units.
Pavers occupy 690 sq ft
ITZA: 651 Units
of 1F. The remainder of the
GF Sales: 1,560
Pavers 1F and 2F are retained by
20 Eastgate Row 1F Anc: 1,226*
Limited the landlord and the tenant
2F Anc: 1,355*
contributes to service
Total: 4,141
charge (if demanded).
ITZA: 353 Units
GF Sales: 624
Vacant GF Anc: 229
22 Eastgate Row
(Guarantee) 1F Anc: 462
2F Anc: 464
Total: 1,779
TENURE
Freehold
7
TENANCIES
18 Eastgate Street is let to Penhaligon’s Limited on a 10 year
lease from 2nd January 2018 (expiring 1st January 2028),
at a current rent of £85,000 per annum. There is a tenant’s
option to determine on 2nd Janurary 2024 and an upwards
only rent review in year 5.
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
20 Eastgate Street is let to Aurum Group Ltd (trading as
The Watch Lab) on a 10 year lease from 13th December 2017
(expiring 12th December 2027), at a current rent of £43,750
per annum. There is a tenant’s option to determine on 12th
December 2022 and an upwards only rent review in year 5.
20 Eastgate Row is let to Pavers Limited on a 10 year lease
from 13th June 2017 (expiring 12th June 2027), at a current
rent of £55,000 per annum with a fixed uplift on the 5th
anniversary of the term to £61,000 per annum. There is a
tenant’s option to determine on 13th June 2022.
22 Eastgate Row is currently vacant. The landlord will provide
a two year rental guarantee of £29,500 per annum.
The property therefore
produces a total net income
of £213,250 per annum.
The weighted average unexpired lease term until expiry is 9.6
years and until break options is 6.6 years.
The leases are drawn on effectively full repairing and insuring
terms via the provision for an on-demand service charge (not
currently in operation).
COVENANT 8
We set out below the most recently available financial information for the occupa-
tional tenants:
Penhaligon’s Limited is a luxury British perfume house, established in 1870. The
company trades from approximately sixteen stores in the most affluent retail centres
in the United Kingdom. Penhaligon’s are the holders of two royal warrants, awarded
for supplying goods of excellence and quality to HM The Queen and HRH The Prince
of Wales.
Penhaligon’s Limited 31/12/2016 31/12/2015 31/12/2014
Turnover £19,756,000 £18,877,000 £15,808,000
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
Pre Tax Profit (£3,745,000) (£1,502,000) £727,000
Net Worth £7,025,000 £9,800,000 £11,304,000
Aurum Group Limited is a prestigious jeweller in the UK. The group wholly owns the
Watches of Switzerland, Mappin & Webb and Goldsmiths brands. The group is the
largest distributor of Rolex, Cartier and Breitling in the United Kingdom.
Aurum Group Limited 01/05/2016 03/05/2015 04/05/2014
Turnover £404,305,000 £369,199,000 £402,491,000
Pre Tax Profit £4,549,000 £4,833,000 £2,732,000
Net Worth £122,816,000 £123,558,000 £73,733,000
Pavers Limited is a traditional family-owned footwear business with approximately
one hundred stores in the United Kingdom. The company is currently in the process
of acquiring Jones Bootmaker, a well-established shoe retailer with a strong British
heritage. The acquisition will see 389 personnel and forty-two stores transferred to
Pavers ownership.
Pavers Limited 28/01/2017 30/01/2016 31/01/2015
Turnover £83,723,000 £81,780,000 £82,150,000
Pre Tax Profit £8,292,000 £10,794,000 £10,082,000
Net Worth £39,920,000 £38,168,000 £39,309,000
Recently let retail units
offering excellent prospects 9
for rental growth from
re-based rents
RENTAL ANALYSIS AND VALUE
We have analysed the passing rent in respect of Penhaligon’s
and The Watch Lab to reflect £189 Zone A and £187 Zone A
respectively.
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
Due to the recent agreement of all of the occupational leases,
we consider the property to be effectively rack rented.
However, with prime rents in Chester having reached £255
Zone A previously, we consider both units offer excellent
potential for rental growth.
The passing rent in respect of Pavers reflects £78.50 Zone A,
which again we consider to be a rack rent in today’s market.
INVESTMENT COMPARABLES
Address Tenant Term Certain Date Price Net Initial Yield
Ernest Jones
10 Eastgate Street WAULT: 5.5 years March 2017 £2.75m 4.75%
Lakeland
Jo Malone
26 Eastgate Street WAULT: 6 years August 2016 £3.60m 4.10%
Mappin & Webb
29 Eastgate Street Bella Italia 9 years June 2015 £2.115m 4.71%
Chester was ranked the
2nd best place to live 10
in the UK (outside of
London) by CACI
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
H.S
AMU
EL
DEVELOPMENT POTENTIAL
The vendor has undertaken feasibility studies to re-
develop the first and second floors for residential use.
These studies demonstrate that there is scope to
provide a four-bed dwelling covering the two upper
floors (subject to obtaining the necessary planning
consent). Further information is available on request.
EPC
Energy Performance Certificate are available upon
request.
VAT
We understand that the property is elected for VAT.
It is anticipated that the sale will be treated as a
transfer of a going concern (TOGC).
For indicative purposes only.
Title plan available upon request.11
Fawcett Mead
CHESTER - 18-20 EASTGATE STREET & 20-22 EASTGATE ROW
FURTHER INFORMATION
PROPOSAL
Jonathan Mills Joe Baio
Offers are sought in excess of £3,410,000 (three million, jonathan@fawcettmead.co.uk joe@fawcettmead.co.uk
four hundred and ten thousand pounds) subject to contract 020 7182 7483 020 7182 7489
and exclusive of VAT. 07795 333 195 07515 889 649
Assuming purchaser’s costs of 6.49%, a purchase at this Ed Kievenaar Richard Bashford
level would reflect an attractive net initial yield of 5.87%. ed@fawcettmead.co.uk richard@fawcettmead.co.uk
020 7182 7494 020 7182 7497
07747 536 644 07774 619 204
Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. SUBJECT TO CONTRACT
Designed by Graphic Outlines Ltd 2018You can also read
