FOUNDRY COURT AND WATERMANS YARD NORWICH - RESIDENTIAL & RETAIL INVESTMENT OPPORTUNITY - Savills
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Savills Residential Capital Markets
FOUNDRY COURT AND
WATERMANS YARD
NORWICH
RESIDENTIAL & RETAIL INVESTMENT OPPORTUNITY
Foundry Court
FOUNDRY COURT AND WATERMANS YARD | NORWICH 2 3 FOUNDRY COURT AND WATERMANS YARD | NORWICH
INVESTMENT
SUMMARY
WATERMANS FOUNDRY
YARD COURT • Two well situated blocks known as
Foundry Court and Watermans Yard,
together comprising 48 apartments,
Riverside
27 garages, 15 off-street surface car
Norwich Train Station Leisure Area
parking spaces and three retail units
• All of the apartments are let on
assured shorthold tenancies (ASTs),
with a gross income of £368,160 per
annum
The Cathedral • Foundry Court has three retail units
with a gross income of £30,915 per
annum
Castle Mall
Shopping Centre • The portfolio has a total rent passing
of £399,075 per annum and an
estimated market rental value of
Norwich Castle £429,500 per annum, reflecting a
rental increase of 7.6%
• The residential units have a net sales
Norwich Market area (NSA) of 2,849 sq m (30,670 sq
ft) and the retail units have a gross
internal area (GIA) of 161 sq m (1,734
sq ft)
City Hall
Theatre Royal
The Forum
• The portfolio has been consistently
Chapelfield occupied at 100%
Shopping Centre
• A strong reversionary rental potential,
through active management and
rental growth prospects
• Both properties are centrally located
in Norwich city centre and are within
walking distance to all amenities
FOUNDRY COURT AND WATERMANS YARD | NORWICH 4 5 FOUNDRY COURT AND WATERMANS YARD | NORWICH
Over 10 million day tourists and
1.5 million overnight visitors are
attracted to Norwich each year
LOCATION
Norwich is the main centre of East Anglia and dominates a Norwich has two universities; UEA, a top 15 university, with ANGLIA SQUARE
large primary catchment area, which encompasses much of c. 15,000 students and the second highest graduate retention SHOPPING CENTRE A147
eastern Norfolk. It has a resident population of 132,512 (2011 rate in the UK and Norwich University of the Arts, which is
Census) and a primary catchment population of 895,000. The smaller at c. 2,000 students, with a city centre campus. The WATERMANS SR O AD
YARD ISPIN
city lies approximately 110 miles to the north east of London city is also a major tourist destination, having two cathedrals, ST CR
WHIT
via the A11/M11 and about 45 miles to the north of Ipswich via a castle, museums, five theatres and galleries. There is also an
the A140/A14. The mainline station is situated to the east of extensive array of shops, restaurants and bars. Over 10 million
E
DU K E S T
OA
the city centre and provides links to London and the Midlands day tourists and 1.5 million overnight visitors are attracted TE
ST GE
FRIA
with the fastest journey time to London Liverpool Street being to the city each year, with tourism being worth about £700 GA
KS
ER
RD
RS
c. 1 hour 50 minutes. The city also benefits from an expanding million per year to the city and supporting 12,000 jobs.
T
H
O
FIS
RN
RGES
airport with a regular route to Schipol and internationally
BA
thereafter. The local economy is dominated by a number of key long
GATE
established employers concentrated in the finance and COLE
S
BISHOPGATE
T
Norwich is a vibrant city which has seen substantial manufacturing sectors. Major employers within the city
development over the past fifteen years. This has primarily include Aviva, Marsh, Virgin Money, Moneyfacts, Archant, NORWICH
been in the retail, leisure and residential sectors in and around Kettle Foods, PWC and Anglian Windows. There are also W CATHEDRAL
ES
the city centre. Subsequently, Norwich was ranked 13th in major employers on the outskirts of the city, including WI
NORWICH
T
the UK by Javelin Group’s Venuescore 2017 as a leading retail Lotus Cars and Broadland Business Park. The city has an CK
ST
FOUNDRY
47
GRAPES HIL L
destination. Chapelfield, Castle Mall and Riverside are well established reputation for food research and the Norwich ST AND
R EWS ST FERRY LANE
A1
established destinations and occupiers provide a good mix of Research Park (NRP) is one of the leading classes for this POTTER UNIVERSITY COURT
retail and leisure brands; Chapelfield is anchored by House of type of development. A £26 million Government grant has GATE OF THE ARTS
R O SARY R D
Fraser. The city centre is a major destination in its own right enabled the second phase of development at NRP.
and benefits from the presence of John Lewis, Debenhams, ST G PRINC
EADO W EO
Marks and Spencer, Jarrolds and an historic covered market. I LES S
T EM FW
L
AL
CAST
ES
RD
BE
TH
EL CASTLE
ST MUSEUM
& GALLERY
HE
T
CHAPELFIELD ATR A1 2
GARDENS E ST 42
KIN G
CASTLE MALL
THEATRE ROYAL
ST
A1
NORWICH
47
ST
RAIL STATION
INTU CHAPELFIELD
ION
Not to Scale - For Identification Purposes Only.
A1
47
UN
NORWICH RIVERSIDE
BUS STATION
BE
RETAIL PARK
RO
RT
EN
SU
U
ST
VI RD
RR
CT
1
A1
OR
EY
47
IA
ST
A1
ST
A1
47
FOUNDRY COURT AND WATERMANS YARD | NORWICH 6 7 FOUNDRY COURT AND WATERMANS YARD | NORWICH
The portfolio has been consistently
occupied at 100%
PORTFOLIO SUMMARY
The portfolio comprises 48 apartments, 24 garages, 15 off-street surface car parking spaces and three retail units across
two properties: Foundry Court, Prince of Wales Road, NR1 1NS and Watermans Yard, Westwick Street, NR2 4SZ.
The owner constructed the buildings in 2004 and 2006 respectively and has managed them since completion. The
properties have been maintained to a good standard with general maintenance and capital expenditure occurring in
between tenancies. White goods and cooking appliances are included within the portfolio.
The majority of tenants are professional / working people, plus a few mature students. There are no DSS tenants.
The portfolio has been consistently 100% occupied. The minimum tenancy length offered is six months and the average
tenancy length is c. 18 months. Generally most tenants have stayed for over six months and there are current tenants who
have been in occupation over 10 years.
Residential Commercial Parking Residential Commercial Total Income Residential Commercial Total Market
Property Garages Foundry Court
Units Units Spaces Income PA Income PA PA ERV* ERV* Rental Value
Foundry
24 3 12 11 £171,120 £30,915 £202,035 £181,800 £36,500 £218,300
Court
Watermans
24 - 15 4 £197,040 - £197,040 £211,200 - £211,200
Yard
Totals 48 3 27 15 £368,160 £30,915 £399,075 £393,000 £36,500 £429,500
*Estimated Rental Value
Foundry Court Watermans Yard Watermans Yard
FOUNDRY COURT AND WATERMANS YARD | NORWICH 8 9 FOUNDRY COURT AND WATERMANS YARD | NORWICH
FOUNDRY COURT, NR1 1ND
Foundry Court completed in 2004 and comprises 24 self-contained apartments (three x one bedroom apartments, 20 x two
bedroom apartments and one x three bedroom apartment), three commercial units, 12 garages and 11 surface car parking
spaces. The parking facilities service the residential aspect of the property. Six of the apartments are ground and first floor
duplexes with direct access.
Since completion the properties have received general capital expenditure and have therefore been maintained to a good
standard. However, there is an opportunity to add value through light refurbishment.
Foundry Court is situated on the Prince of Wales Road, which is one of the main links from the city centre to Norwich railway station.
The station is located approximately 0.1 miles to the east and provides direct service to London Liverpool Street in as little as one
hour 47 minutes, every half an hour. Norwich Cathedral and The Close, which is the largest English cathedral precinct at 44 acres, is
situated c. 0.2 miles to the north. All three retail units are in a prominent position fronting the Prince of Wales Road. The local council
have just announced a £2.6 million regeneration plan aimed at the Prince of Wales Road, which will improve the flow of pedestrian
and vehicle traffic. The prime retail area is situated c. 0.4 miles to the west of the property.
The estimated market rental value of the residential and commercial units is £218,300, reflecting a rental increase of 8.05%.
Foundry Court Residential Tenancy Schedule
No. of Parking Facility
Apartment Floor NSA* Sq m. NSA* Sq ft. Income PCM Income PA
Bedrooms Let with Flat
1 First 52 561 2 - £575 £6,900
2 First 48 519 1 Garage £575 £6,900
3 First 55 587 2 Garage £550 £6,600
4 Second 52 561 2 Garage £575 £6,900
5 Second 48 519 1 - £550 £6,600
6 Second 55 587 2 Space £575 £6,900
7 Third 52 561 2 Garage £595 £7,140
8 Third 48 519 1 Space £575 £6,900
9 Third 55 587 2 - £575 £6,900
10 Ground & First 65 698 2 Garage £595 £7,140
Foundry Court Commercial Tenancy Schedule
11 Ground & First 65 698 2 - £600 £7,200
All three retail units are demised within Foundry Court.
12 Second 49 525 2 Garage £595 £7,140
13 Second 49 525 2 Garage £575 £6,900
Unexpired Market
14 Third 49 525 2 Garage £550 £6,600 Tenant Service Area sq ft. Income PA Lease Start Lease End Date
Lease Term Rental Value
15 Third 49 525 2 - £575 £6,900 Rebel Inc. Tattoo Studio 561 £9,665 2008 July 2018 6 months £10,000
16 Ground & First 65 698 2 Garage £650 £7,800 Linkup Estate Agent 587 £12,000 2004 January 2019 12 months £12,000
17 Ground & First 65 698 2 Space £625 £7,500 WMG Car Leasing 586 £9,250 2013 November 2018 11 months £12,500
18 Second 49 525 2 Space £595 £7,140 Total 1,734 £30,915 £36,500
19 Second 49 525 2 Garage £595 £7,140
20 Third 49 525 2 Garage £595 £7,140 New terms have been agreed with Rebel Inc. based upon a new lease expiring in 2023 at a rent of £10,000 per annum, subject
to a break clause exercisable by the tenant after July 2019 with a three month notice period.
21 Third 49 525 2 Space £595 £7,140
22 Ground & First 65 698 2 Garage £550 £6,600
23 Ground & First 65 698 2 Space £625 £7,500
24 Second 87 936 3 Space £795 £9,540
Totals: 1,331 14,325 £14,260 £171,120
*Net Sales Area
FOUNDRY COURT AND WATERMANS YARD | NORWICH 10 11 FOUNDRY COURT AND WATERMANS YARD | NORWICH
WATERMANS YARD, NR2 4SD
Watermans Yard completed in 2006 and comprises 24 self-contained apartments (23 x two bedroom apartments and one x
three bedroom apartment), four surface car parking spaces and 14 garages. All of the apartments benefit from either a balcony
or Juliet balcony. Four of the apartments are impressive duplex units and four have direct views over the River Wensum.
Watermans Yard is situated on Westwick Street, which is approximately 1.0 mile to the north west of Norwich railway station
and c. 0.5 miles to the north west of the main shopping area of the city centre. The River Wensum runs parallel to Westwick
Street to the north of the site. St Benedicts Street, runs parallel to the south, which is a very vibrant part of the city centre with
a number of independent bars and restaurant.
The estimated market rental value is £211,200, reflecting a rental increase of 7.19%.
Watermans Yard Tenancy Schedule
No. of Parking Facility
Apartment Floor NSA* Sq m. NSA* Sq ft. Income PCM Income PA
Bedrooms Let with Flat
1 Ground 65 703 2 - £625 £7,500
2 First 65 703 2 Garage £650 £7,800
3 Second 65 703 2 Space £675 £8,100
4 Third & Fourth 90 974 3 Garage £795 £9,540
5 First 55 597 2 Garage £650 £7,800
6 Second 55 597 2 - £650 £7,800
7 Third 55 597 2 Space £625 £7,500
8 First 55 597 2 Garage £650 £7,800
9 Second 55 597 2 Garage £650 £7,800
10 Second 64 689 2 Garage £795 £9,540
11 Third 55 597 2 Garage £695 £8,340
12 Ground & First 93 999 2 Garage £875 £10,500
13 Second & Third 77 831 2 Garage £800 £9,600
14 Third 60 646 2 - £625 £7,500
15 Ground 60 646 2 - £650 £7,800
16 Ground 60 646 2 - £575 £6,900
17 First 60 646 2 Garage £675 £8,100
18 First 60 646 2 Space £725 £8,700
19 First 60 646 2 Garage £695 £8,340
20 Second 60 646 2 Garage £695 £8,340
21 Second 60 646 2 - £625 £7,500
22 Second 60 646 2 Garage £675 £8,100
23 Ground & First 63 678 2 Space £650 £7,800
24 First 62 669 2 Garage £695 £8,340
Totals: 1,519 16,345 £16,420 £197,040
*Net Sales Area
FOUNDRY COURT AND WATERMANS YARD | NORWICH 12 13 FOUNDRY COURT AND WATERMANS YARD | NORWICH
THE RESIDENTIAL MARKET
Capital Value Growth – Price Vs Peak Rental Value Heat Maps Average Rents & Rental Growth - NR1 Average Rents & Rental Growth - NR2
40% £900 £900
£800 £800
30%
£700 £700
20%
£600 £600
Average Eents PCM
Average Eents PCM
Price vs peak
10% £500 £500
0% £400 £400
£300 £300
-10%
£200 £200
-20%
£100 £100
-30% £0 £0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Average monthly asking rent, 1 bed properties - Q3 2017 2015 2016 2016 2016 2016 2017 2017 2017 2015 2016 2016 2016 2016 2017 2017 2017
Norwich Norfolk East of England England & Wales Over £650 £500 - £550 Under £450 1 Bedroom Flat 2 Bedroom Flat 3 Bedroom Flat 1 Bedroom Flat 2 Bedroom Flat 3 Bedroom Flat
£550 - £600 £450 - £500
Source: Land Registry Source: Rightmove Source: Rightmove
Source: Land Registry.
The Price Vs Peak graph shows average capital value growth The above graph demonstrates the average rent per calendar The above graph demonstrates the average rent per calendar
of residential property in the stated locations from 2008. In month (PCM) per unit type from Q4 2015 to Q3 2017, for the month (PCM) per unit type from Q4 2015 to Q3 2017 for the
Norwich average residential capital values have increased by postal code location of NR1. postal code location of NR2.
22%, which reflects 2% above Norfolk and 3% above England
& Wales. The average rental compound annual growth rate (CAGR) The average rental CAGR from 2015 to 2017 in NR1 across
from 2015 to 2017 in NR1 across one, two, and three bedroom one, two, and three bedroom flats was 4.9%. The rental CAGR
flats was 4.3%. The rental CAGR for Foundry Court during the for Watermans Yard for during the same period was 2.1%.
same period was 1.4%.
The average rents PCM per unit type in NR1 in Q3 2017 were:
The average rents PCM per unit type in NR1 in Q3 2017 were: one bedroom: £569, two bedroom: £727 and three bedroom:
one bedroom: £644, two bedroom: £759 and three bedroom: £867. Currently the average rents PCM in Watermans Yard are:
£810. Currently the average rents PCM in Foundry Court are: two bedroom: £674 and three bedroom: £795 (one unit).
one bedroom: £560, two bedroom: £590 and three bedroom:
£714. The aforementioned data analysis for both Foundry Court
Average monthly asking rent, 2 bed properties - Q3 2017 and Watermans Yard supports the fact that the rents have
Over £750 £700 - £725 £650 - £675 not been pushed over the last three years, in order to
£725 - £750 £675 - £700 Under £650
maintain a 100% occupancy rate. Therefore, the portfolio
has an attractive reversionary rental income, which could be
Source: Land Registry.
assessed through active management and rental growth.
Savills House Price Forecast Savills Rental Growth Forecast
5-year compound 5-year compound
Location 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
growth growth
UK 1.0% 2.5% 5.0% 2.5% 2.5% 14.2% UK (excluding London) 2.5% 2.5% 3.0% 3.5% 3.5% 15.5%
East Midlands 1.0% 3.0% 5.0% 2.5% 2.5% 14.8%
East of England 0.5% 2.5% 4.0% 2.0% 2.0% 11.5%
South East (excluding London) 0.5% 2.5% 4.0% 2.0% 2.0% 11.5%
FURTHER
INFORMATION
Tenure Contacts
Both properties are held freehold. Piers de Winton MRICS
Director - Residential Capital Markets
Method of Sale pdewinton@savills.com
The portfolio is offered for sale, by way of private 020 7016 3816
treaty, as one lot. Offers individually for either
Foundry Court or Watermans Yard will also be James Watkins MRICS
considered. Offers are sought for the freehold Surveyor – Residential Capital Markets
interest/s subject to contract. jwatkins@savills.com
020 7409 8056
VAT
Arthur Morgan MRICS
Both properties are not elected for VAT.
Associate – Norwich
amorgan@savills.com
Data Room
01603 229 259
Further Information can be found on the
Savills Data Room:
www.savills.com/foundrycourtandwatermansyard
Viewings
Viewings are strictly by appointment via the
vendor’s sole selling agent, Savills. Please contact
either Arthur Morgan or James Watkins to make
an appointment.
Important Notice
Savills, their clients and any joint agents give notice that:
1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their
own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These
particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily
comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not
tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and Produced by Savills Marketing: 020 7499 8644 | February 2018
You can also read
