Goldstone Retail Park - Unique Redevelopment Opportunity - Hove | BN37PN - Joiner Cummings
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2 | Goldstone Retail Park | Hove, BN3 7PN Investment Rationale E Brighton & Hove is one of the fastest growing conurbations in E C urrent planning consent permitting predominantly the country with a population increase of around 13% over the Open A1 non-food. past decade and 9% growth forecast by 2030. E Unique opportunity to undertake a comprehensive and E Brighton & Hove has a strong residential market, that is significant residential led mixed use redevelopment. undersupplied relative to levels of demand and forecast E T he site is identified within the Hove Station Development population growth. Area, and the Hove Station Neighbourhood Plan for E The site is highly accessible by train and road being to the north substantial redevelopment. west of Hove Town Centre and located off Old Shoreham Road E Indicative studies suggest potential for scheme of c. 800 units, (A270), a main arterial route which provides direct access to with the ability to create taller landmark elements. London Road (A23). E Brighton has a significant undersupply of residential stock (61 out E The property is currently a well configured and established retail of 63 cities for housing stock growth), leading to sustainable values scheme, built in 1998 and totalling 82,000 sq ft across 5 retail together with house price growth of c.20% since April 2015. warehouse units, together with 2 pod units. E Potential to include a mix of residential tenures/uses including E The site extends to 5.5 acres (2.2 hectares). Private For Sale, Build to Rent, Student Accommodation and E The park is let on a WAULT of 5 years to a mix of national Care Homes, optimising the cashflow profile and driving multiples including; TK Maxx, DFS, Pets at Home and Harveys development returns. off sustainable rents, together with a vacant 26,000 sq ft unit and 2 pods let to Burger King and Nando’s.
4 | Goldstone Retail Park | Hove, BN3 7PN Strategic Location Hove is easily accessible by car: Hove forms a key part of the Brighton and Hove conurbation on the A23: 2 miles east south coast in East Sussex, approximately 45 miles east of Portsmouth, A27: 4 miles north west 27 miles west of Eastbourne and 53 miles south of Central London. M25: 51 miles north Eastbourne: 27 miles east It benefits from excellent transport links with There are three main train stations which both the A23 London Road and A27 within a service the town (Hove, Aldrington and Portsmouth: 45 miles west 10-minute drive. The A23 runs from Brighton 20 Brighton) all located within a 10 minutes’ miles north to the M23 and from there the M25. drive of the scheme and providing quick access to Portsmouth, Eastbourne and The A27 runs west to the M27 and A3(M) London Victoria. intersection, directly north of Portsmouth and from there the wider motorway network. Hove, Aldrington and Brighton Stations are situated within a 10-minute drive of the scheme and benefit from connections via GWR, Thameslink and Southern Railway to the following locations: M25 Grays Reading London Dartford M4 Bracknell A2 Eastbourne 37 mins Isle of Rochester Sheppey London Victoria 55 mins Croydon A33 A249 A3 M20 Epsom M2 Woking Portsmouth & Southsea 1h 12 mins A331 M25 Maidstone M3 A21 London Gatwick 35 mins Guildford Tonbridge M20 Horley A22 A31 Alton M23 Royal Ashford Tunbridge Wells Haslemere A2070 Horsham Tenterden A23 A26 A3 A272 Haywards London Gatwick Airport is located 27 miles Heath (36 mins) north of Brighton & Hove and Rye offers a wider range of international flights A3(M) Lewis A27 Chichester Arundel Hailsham to over 230 destinations across 70 countries. Hastings Worthing Brighton A26 Portsmouth Bognor Regis Newhaven Eastbourne
Goldstone Retail Park | Hove, BN3 7PN | 5 Extensive Catchment & Highly Affluent Demographic 10 minute 15 minute E According to PROMIS, the total population within the Hickstead Wivelsfield Brighton & Hove Primary Retail Market Area is estimated Dial Post Wineham Goddards Green at 473,000 at end 2018, above the Regional Centre average Burgess Hill Chailey and ranking the City 16th out of the PROMIS Centres. Spithurst Plumton E B righton & Hove serve an extensive and highly affluent Ashington Ashurst Henfield Green Hassocks catchment area. CACI Limited estimate 218,123 people Woodmancote Muddleswood Wiston Ditchling live within a 10 minutes’ drive-time of the property Barcombe A23 increasing to over 309,188 people within a 15 minutes’ Oreham Common Plumpton drive-time. Pyecombe Hamsey A26 Fulking Bramber E By 2023 the population is estimated to increase by 2.5% Saddlescombe for the 15 minutes’ drive-time catchment with an increase Stanmer Falmer Lewis Findon A27 of 5.3% estimated by 2028, significantly higher than the Coombes UK regional average of 5%. A24 A27 Swanborough Portslade Iford E T he immediate 10-minute catchment boasts a highly A27 Southwick Woodingdean affluent profile, with those categorised in the top 3 Acorn Shoreham-by-Sea Hove Southease Groups considerably in excess of the UK Average at 78.1%. Worthing Brighton Saltdean BN3 7PN 10 mins UK Avg Peacehaven Affluent Achievers: 15.3% 21.6% E The social grade statistics also reflect a strong BN3 7PN 5 mins UK Avg Rising Prosperity: 45.1% 10.0% 5-minute drive-time, with Social Grade AB Comfortable Communities: 17.7% 26.6% at 32.5%, significantly above the UK average Social Grade AB: 32.5% 22.2% of 22.2%. Total 78.1% 58.2% Social Grade C1: 36.9% 30.8% E The 15 minutes’ drive-time population spends Home Ownership: 58.3% 63.3% on average £115.26 per household per week on personal and household goods which is in line Car Ownership: 66.5% 75.6% with the UK average.
6 | Goldstone Retail Park | Hove, BN3 7PN Thriving Local Economy Brighton & Hove is a highly affluent University City and international tourist destination, complemented by a strong and growing economy. The Brighton & Hove Economic Strategy 2018 – 2023 was E Brighton is 61st out of 63 cities for housing stock growth, adopted by the council in December 2018 and highlights highlighting a significant need and high demand for the City’s key characteristics, summarised below: new product. E T he City has seen strong population growth of around E In 2018 Brighton ranked 9th for highest rises in house 13% over the past decade and is forecast to grow by a prices annually. further 9% by 2030. E B righton & Hove is a thriving economy which has seen Brighton And Hove Retail Supply employment grow by approximately 11% since 2013 to E Brighton and Hove has one of the most limited retail a total of 140,000 jobs, with the number of businesses warehouse provisions in the country for a conurbation of increasing by 20% to 16,000. its size, with high levels of demand and limited supply. E T he local economy has grown to over £7bn in the last More information can be provided on out of year, largely due to the rise of creative & digital town dynamics. industries. Over the last 5 years, this sector has grown E Total retail warehouse supply in Brighton and Hove is by over 40% to approximately 1,500 businesses and estimated at 400,000 sq ft, with retail parks accounting 6,800 jobs. for approximately 58% of this space. E The city has a highly qualified workforce with approximately 50% of the working population having high-level qualifications, above the UK average of 38%. E S ignificant student population of approximately 35,000 POPULATION AND ECONOMIC GROWTH spread across the University of Brighton and University IN BRIGHTON & HOVE IS ANTICIPATED of Sussex. TO BE EXCEPTIONALLY STRONG OVER E T ourism remains an important driving force for the THE NEXT DECADE AS IT CONTINUES economy, accounting for approximately 20% of the jobs in the City, with an expenditure of over £850m. TO OFFER A HIGH STANDARD OF LIVING AND EMPLOYMENT OPPORTUNITIES E S ince 2014, the council has received approximately 100 applications for commercial to residential development, the 7th highest level recorded across all local authorities outside London.
Goldstone Retail Park | Hove, BN3 7PN | 7 Brighton Pier British Airways i360 Hove Station Sussex County Cricket Club Goldstone Retail Park Hove Park A2023 A270 For indicative purposes only.
8 | Goldstone Retail Park | Hove, BN3 7PN Goldstone Retail Park E G oldstone Retail Park is located off the A270 Old Construction Shoreham Road, arguably the prime out of centre retail destination across Brighton and Hove. The scheme is E P urpose built in 1998 of steel portal frame construction approximately 1.5 miles west of central Brighton. with steel panel elevations and partially glazed frontages. E T otalling approximately 82,000 sq ft, the scheme is E The car park is a combination of paving and tarmac with well configured and comprises 5 retail warehouse black top finish. units together with 2 pods. Access E T he well-established park is let to a mix of tenants including; TK Maxx, DFS, Pets at Home and Harveys E V ehicle access to the park is via Newtown Road which together with a vacant 26,000 sq ft unit. There are is just off the A270 Old Shoreham Road which connects 2 pods let to Burger King and Nando’s. with Brighton and the A23 London Road. E The site extends to approximately 5.5 acres E T here is a regular bus service every 5 minutes to the park (2.2 hectares). from Brighton town centre and surrounding areas. E T here are 305 car parking spaces across the site giving E The park is also accessible via Hove Station which is a ratio of 1:269 sq ft per space. 0.5 miles south east of the park approximately a 9-minute walk. E O riginal planning permission was granted in 1997 for predominantly Open A1 non-food planning consent. Planning permission was granted in 1998 for “Erection of a single storey building for the use Class A3 takeaway GOLDSTONE RETAIL PARK IS THE STRONGEST restaurant/drive through with associated parking, AND MOST ESTABLISHED RETAIL PARK IN servicing and landscaping.” THE CATCHMENT BUT MORE SIGNIFICANTLY PROVIDES A UNIQUE RESIDENTIAL REDEVELOPMENT OPPORTUNITY
Goldstone Retail Park | Hove, BN3 7PN | 9 Hove Park 70) Old Shoreham Road (A2 Newton Road e an eL ton lds Go For indicative purposes only.
10 | Goldstone Retail Park | Hove, BN3 7PN Tenancies The property is let to a good mix of predominantly bulky goods retailers producing a total net income of £2,506,181 per annum with an average weighted unexpired lease term of 5 years (4.8 years including tenant breaks). The short-term income is secured on covenants of leading retailers of which 71% have a ‘Very Low’ or ‘Low Risk’ of business failure (Experian). GIA Term Next RR Unit Tenant Trading Fascia Lease Start Lease Expiry TOB Rent pa psf Comments (sq ft) (Yrs) Date Unit 1 TJX UK TK Maxx 10,000 29/11/2013 10.0 28/11/2023 - - £340,000 £34.00 - DFS Furniture Unit 2 DFS 20,000 25/03/1998 25.0 24/03/2023 - - £590,000 £29.50 - Company Ltd Vacant 2 year rent, rates and service charge Unit 3 - 26,142 - - - - - £650,000 £24.86 (Vendor Guarantee) guarantee provided by the vendor. Unit 4a Pets At Home Ltd Pets at Home 8,479 24/10/2011 15.0 23/10/2026 24/10/2021 - £299,925 £35.37 - Steinhoff UK Group Unit 4 Harveys / Bensons 11,844 22/05/2013 10.0 21/05/2023 - - £461,916 £39.00 - Properties Unit 5 Leon Kennedy Ltd Burger King 2,500 15/10/1999 25.0 14/10/2024 14/10/2019 - £74,340 £29.74 - Unit 6 Nando's Chickenland Ltd Nando's 3,000 11/05/2015 20.0 10/05/2035 11/05/2020 11/05/2030 £90,000 £30.00 - Substation Seeboard PLC - - 15/06/1998 60.0 14/06/2058 - - - - - 81,965 Total Rent £2,506,181 Nearest Stores Broadwater Way, Eastbourne - 20 miles east Country Oak Retail Park, Crawley - 33 miles north Burgess Hill, Sussex - 7 miles north Duke Street, Brighton - 2 miles south east North Street, Brighton - 2 miles south west North Street, Brighton - 2 miles south west
Goldstone Retail Park | Hove, BN3 7PN | 11 Existing Use Value Goldstone Retail Park is the strongest dedicated retail park in the conurbation with the presence TK Maxx, DFS, Pets at Home, Harveys, Burger King and Nando’s. As an out of town retail offer, value could be sustained and enhanced over the medium term as an alternative to residential redevelopment with the following: E U ndertake a long term letting on the remaining vacant unit, increasing footfall and setting new rental evidence. E P otential to split the vacant unit and re-let off higher rental tone. E R emoval of Nando’s tenant break option. E N egotiate lease extensions with TK Maxx, DFS, Harveys and Burger King. E R efurbish the retail frontages. ALL THE EXISTING TENANTS ARE KEEN TO MAINTAIN LONG TERM COMMITMENT ON THE PARK, WHICH COULD BE ACHIEVED WITH LIMITED COST
12 | Goldstone Retail Park | Hove, BN3 7PN Brighton Residential Market E B righton has experienced increasing values E D evelopment has been brought forward for a substantial period, with a general in a number of schemes to help mediate upward trend since the market downturn. the supply and demand imbalance which currently exists and is expected to persist E G rowth has largely been driven by into the future. increasing outflows of buyers from London, coupled with a general lack of new supply. Market evidence indicates sales values typically E L and Registry figures quoted in Brighton in the region of £550 - £600 per sq ft for new and Hove Council’s quarterly market review, build stock, with current/recent developments show average unit values of £358,772 at end selling including: March 2019, reflecting an increase of 20% from April 2015. E O ne Hove Park, Goldstone Crescent, Hove E S ales volumes peaked in March 2016, with E New Wave, Newtown Road, Hove rates since showing a slight softening E A rtisan, Davigdor Road, Hove reflecting the lack of new stock alongside a short term cooling in the wider E Super B, New England Square, Brighton residential market. E Western Wharf, Kingsway, Hove E T he fact that rates have been consistent over the medium term reflects the E M ontpelier Place, Clifton Hill, Brighton underlying strength of demand and longer term attraction of the location. E R ussell House, Russel Square, Brighton THERE ARE FEW OPPORTUNITIES WITHIN THE CONURBATION TO BRING FORWARD A WELL DESIGNED, WELL LOCATED, ICONIC RESIDENTIAL QUARTER.
Goldstone Retail Park | Hove, BN3 7PN | 13
14 | Goldstone Retail Park | Hove, BN3 7PN e en Av A27 Card Coldean n Ave ybo Bra A27 Withdean Withdean Park Dy ke e n Rd Woo Rd Av Ditchling Rd d l a nd D nd e A2038 re ur S r Hangleton Sh vi r ley Dr Ne i ll A293 Rd Hove 9 Bevendean West Park Blatchington Preston Preston Goldstone Park A270 A270 Retail Park Dy ke 1 Rd 6 2 Round Hill Aldrington 3 7 Elm Grove Rd n r re Wa A2023 El m G r o ve Portslade-by-Sea 8 Hove Church Rd Whitehawk Brunswick Wilson Ave 5 Town 10 4 St West East Brighton Kemptown Park Eas ter n Brighton Rd 11 12 A259
Goldstone Retail Park | Hove, BN3 7PN | 15 Development Pipeline & Recent Land Transactions Residential development in Brighton is constrained as a result of the city’s setting and surrounding geographical features, with the coast to the south and South Downs National Park to the north. Development has to be focussed on brownfield sites within the urban area. Sackville Road, Hove – c600 units including 43,000 sq ft commercial 1 7 Hove Gardens, Ellen Street – 187 units c 1 acre (10% affordable). and 250 units for elderly (10% affordable). 2 Rayford House – 41 units 0.7 acres. 8 Land east of Pelham Street – 135 residential units (0% affordable). Westermann Industrial Works, School Road, Hove – 101 units Preston Barracks – 369 units plus 534 student beds, 3 9 1.58 acres. new business school and innovation hub (15% affordable). King Alfreds Leisure Centre –re-provision of leisure centre and Circus Street – 142 units plus student and 30,000 sq ft offices 4 10 c560 new residential units. (20% affordable). Kings House Hove – part refurb part new build delivering c160 5 11 NGP Boundary Road – c500 – 600 units. on 1.3 acres (17.5% affordable). 6 KAP, Newtown Road – 148 units with ground floor retail / commercial. 12 Phase 2 and 3 Brighton Marina – c.1,000 units. THE LIMITED OPPORTUNITIES AND UNDERLYING STRENGTH OF THE LOCATION AND RESIDENTIAL SECTOR SUPPORT A STRONG LAND MARKET, WITH INTEREST IN THE LOCATION FROM MULTIPLE SECTORS. BROAD ‘TONE’ OF VALUE FROM LAND TRANSACTIONS ARE C.£75,000 - £90,000 PER PRIVATE UNIT
16 | Goldstone Retail Park | Hove, BN3 7PN Planning Policy s Cre Rd ne View sto Orchard Gardens Gold Background Park Hove Recreation Dr Ground Shirley Frith R on Ave d A270 Ln ne E T he Brighton & Hove City Plan Part One identifies 8 development areas. A2023 n Rd Aldringt ph’s Cl sto Ran e lagh ld Poynter Leighto Vill Go Rd as St Jose The Hove Station Area (DA6) comprises an extensive area around Hove Ne w to w n s Station and includes Goldstone Retail Park. Landsee illa ll Rd r Rd Hart ingt rk V Ro on Sackville Road d Villa Fonthi a s e Pa Hov Prinsep Rd E Aim of DA6 – Hove Station Area to secure the creation of a high-quality Aldrington Station environment that will attract investment and new employment Morti m er Rd opportunities and promote the efficient use of land through Shakesp W ilb ur yA ve The Up p e r Dr eare St predominantly employment and residential, mixed use developments. Conw ay Stre et Hove Station Wil bury Ave Rd E The Hove Station Neighbourhood Forum draft Neighbourhood Plan has Byron St Ellen nd St Rutla ve The Dri Claren been produced with the pre-submission version being consulted upon Words worth St don Rd from March to May 2019. Cowpe Wordsw St r orth St St ourne Westb Crom E The Hove Station Neighbourhood Plan Part 1 notes an increased housing tone St well R d A2023 Golds need and comments that the minimum amount of housing set out in DA6 Portlan d Rd illas s Villa ns s Garden ark V Garde of the City Plan Part 1 was agreed at a time when it was considered there tone ry Rd Denm Claren Eaton Golds ourne Pem don Villa was no prospect of redeveloping Goldstone Retail Park. Wilbu brok s e Cre For indicative purposes only. s Westb E T he Hove Station Neighbourhood Plan sets out a ‘blue skies’ vision of how the area could be appropriately redeveloped in the longer term. Straegic allocation: 1. Conway Street CURRENT POLICY IS E Policy 3 of the draft Neighbourhood Plan states – “proposals for the redevelopment of Goldstone Retail Park for mixed use residential and Development Area Boundary DISTINCTLY IN FAVOUR employment use will be encouraged”. OF RESIDENTIAL / MIXED Protected Employment site - CP3(3) USE REDEVELOPMENT OF E Policy 11 also indicates the potential for taller building/s at the site. Protected Employment - led (residential & GOLDSTONE RETAIL PARK E T he Neighbourhood Plan sets out the Hove Station Quarter Concept employment) mixed use site - CP3(4) Plan which depicts a residential led redevelopment of the site.
Goldstone Retail Park | Hove, BN3 7PN | 17 Redevelopment Potential Hove Park Having regard to the planning policy context and surrounding development pipeline, Pilbrow & Partners have produced indicative concept proposals for a sophisticated residential scheme comprising: A270 E A n iconic ‘place making’ development incorporating a perimeter of residential urban blocks encircling green open spaces. E A systematic design with high quality public realm enhancing the connectivity with Hove Garden to the north and Hove Station in the south. E A n exciting combination of built form including housing, perimeters blocks Ln of flats (c6 – 8 storeys) with central resident courtyards, and taller tower ne sto elements rising to c11 Storeys). ld Go E P otential for a vibrant mix of non-residential uses at ground floor with undercroft/basement parking utilising existing topography against N e w to 1 surrounding road to minimise excavation. 2 oad wn Sackville Road ill R Ro E Affordability provision at 20% in line with advice from planning consultants / 3 ad Fonth architects, taking into consideration high existing use value. The Concept proposal indicates a total of c800 units (56,000 sq m / 603,000 sq ft NSA) and circa 1,900 sq m / 20,100 sq ft (NIA) non-residential. There is a pipeline of development in the immediate vicinity providing a framework within which to consider the development potential of the property. No. Height Density Scheme Units (storeys) (dph) Hove Station 1 Sackville Trading Estate and Hove Goods Yard 591 1 - 15 402 Conway Street 2 KAP ltd, Newtown Road 148 4 - 11 411 3 Chrome Productions Limited, Goldstone Lane 65 3 406 4 Unit 1 - 3 Ellen Street 186 4 - 17 517 Ellen S t 4 A SCHEME OF THIS UNIQUE POTENTIAL WOULD SUGGEST A SITE VALUE SIGNIFICANTLY HIGHER Pending Approval Planning Granted Built Proposed Scheme THAN E.U.V. BASED ON TRANSACTIONAL EVIDENCE
18 | Goldstone Retail Park | Hove, BN3 7PN Further Information Planning A report by Indigo on the redevelopment potential of the site is available on request. Schematic Plans A copy of the Pilbrow and Partners 03 September 2019 Report is available on request. Service Charge A low service charge rate of £1.19 per sq ft. EPCs EPC’s have been procured and are available on request. VAT We understand the property has been elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern. Capital Allowances These are to be retained by the vendor. Surveys An environmental report is available on request.
Goldstone Retail Park | Hove, BN3 7PN | 19 WE ARE INSTRUCTED TO SEEK OFFERS FOR THE FREEHOLD INTEREST TOGETHER WITH A TOP UP PAYMENT ON GRANT OR IMPLEMENTATION OF PLANNING CONSENT.
Contacts R E TA I L RESIDENTIAL Patrick Knapman Paul Wickenden T: 020 7152 5019 T: 0203 296 4035 M: 07768 825 666 M: 07702 759 031 43/45 Portman Square, E: patrick.knapman@cushwake.com E: paul.wickenden@cushwake.com London W1H 6LY www.cushmanwakefield.com Graham Collison George Jolliffe T: 020 7152 5140 T: 0203 296 2734 M: 07770 921 388 M: 07525 698 903 E: graham.collison@cushwake.com E: george.jolliffe@cushwake.com Dominic Barnard T: 0207 152 5970 M: 07970 761 972 E: dominic.barnard@cushwake.com Cushman & Wakefield, as agent for the vendors or lessors of this property, gives notice that: (i) These particulars are set out as a general outline for guidance only, do not form any part of an offer or contract and must not be relied upon as statements or representations of fact; (ii) All descriptions, dimensions, photographs, 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 intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; (iii) No person acting on behalf of Cushman & Wakefield has any authority to make or give any representation or warranty whatsoever in relation to this property. Cushman & Wakefield accepts no responsibility for any statement made in these particulars; (iv) Any areas, measurements or distances given are approximate. Unless otherwise stated, all purchase prices, any rents or outgoings are correct at the date of publication, and unless otherwise stated, are quoted exclusive of VAT; (v) Images may be computer generated. Photographs show certain parts of this property as they appeared at the time they were taken; and (vi) Any descriptions given of this property cannot be taken to imply this property is in good repair, has all necessary consents, is free of contamination, or that the services and facilities are in working order. Intending purchasers or lessees are advised to carry out their own investigations. 16815.001 | September 2019 | Cushman & Wakefield LLP | Regulated by the Royal Institution of Chartered Surveyors Designed and produced by THE GROUP www.completelygroup.com
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