Hunters LONG LET DEPARTMENT STORE WITH MINIMUM FIXED UPLIFTS DEBENHAMS HASTINGS TN34 1HN
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Hunters
Property Investment Ltd
LONG LET
DEPARTMENT STORE
WITH MINIMUM FIXED UPLIFTS
DEBENHAMS
HASTINGS TN34 1HN
DEBENHAMS HASTINGS TN34 1HN
INVESTMENT SUMMARY
Located in the heart of Hastings within the
pedestrianised retail pitch
Site of 0.53 acres
Well configured store trading over five floors, with
a total area of 96,089 sq ft
Freehold
Let to the 5A1 covenant Debenhams Retail Plc until
2034 - unexpired term of approximately 16½ years
Current rent of £636,662.55 per annum
(£6.62 psf overall)
Rent reviews every 5 years equivalent to
2.5% pa compounded or open market rental value,
whichever is the higher - next rent review in June
2019, providing a minimum uplift to £720,325.58 pa
Significant asset management opportunities
on a break up including potential reconfiguration,
more massing, sub division, or change of use to
residential / PRS / student / hotel accommodation,
subject to planning
Hastings could see the new arrival of the HS1
rail extension
Offers are sought in the region of £9,950,000
(Nine Million, Nine hundred and Fifty Thousand
Pounds), subject to contract and exclusive of VAT.
Reflects a capital value rate of £103.54 per sq ft
This reflects the Net Initial Yield 6.00%
following minimum
June 2019 6.79%
yield profile, net of
standard purchaser's June 2024 7.68%
costs:- June 2029 8.69%
2
DEBENHAMS HASTINGS TN34 1HN
LOCATION
Hastings is located in East Sussex on England’s south coast.
London M20 Rochester
The town is approximately 55 miles south of London, 31
M26 M2
miles south west of Ashford and 16 miles east of
M25
Eastbourne. It is connected to the national road network via Sevenoaks Maidstone Canterbury
the A21, linking to J5 of the M25, and the A259 south coast M23 A28
A21 M20
road leading to Eastbourne to the west and Folkestone to Tunbridge Wells Ashford
the east. Hastings also lies on the A27 west-east coastal Gatwick A264
A262
route (Salisbury to Pevensey), which, between Portsmouth East Grinstead
A2070
and Lewes, is one of the busiest trunk roads in the UK, A22 A26 Folkestone
providing direct access to Eastbourne, Brighton and
A265 A259
Portsmouth. A23 A21
Uckfield
Hastings rail station offers frequent services to London,
Lewes A22
either by Southeastern Trains to London Bridge (1h 26m) A27 HASTINGS
or by Southern via Ashford to St Pancras International Brighton A27
Bexhill
(1hr 36m) or Victoria. Ashford Station provides access to Eastbourne
HS1/Eurostar. Hastings also benefits from an east-west rail Newhaven
service to Eastbourne (30mins) and Brighton (1hr 18m).
Network Rail have assigned £2.3bn to improve train services to the south
London Gatwick airport is 39 miles to the north and the port
east with works scheduled to conclude by 2019 which paves the way for high
of Dover (40 miles) and the Channel Tunnel (36 miles) are to
speed trains to London. Hastings could see the new arrival of the HS1 line
the east.
extension, which would run from Bexhill, Hastings and Ashford. This would
reduce journey times from Hastings to London St Pancras International to
Recent Infrastructure Improvements and Investment 68 minutes. Hastings would gain an international status as it would be
The long awaited Bexhill to Hastings Link Road (at a cost of connected to the Channel Tunnel train line to Europe. The arrival of HS1
approximately £120 million), which opened in 2015, has would be a ‘Gamechanger’ for Hastings and, in addition to the new link road
greatly reduced local congestion and provides significant recently opened, would further boost its accessibility and economy.
travel time savings to Eastbourne and Brighton. This much
needed road improvement is already boosting the local
Demographics and Local Economy
economy with an anticipation it will assist delivery of up to
● The total population within Hastings primary catchment area is 171,000
2,000 new homes and 3,000 new jobs.
with an estimated shopping population of 90,000.
Hastings’ 144 year old Grand Pier was largely destroyed by
fire in 2010 and, after a £14.2m redevelopment, reopened ● 86% of catchment residents live in areas where average household income
in 2016. The new pier sums up Hastings’ on-going is also above GB average.
regeneration and is expected to bring a further 300,000
● 32% of Hastings catchment area is Acorn Wealthy Achievers.
visitors to Hastings per year, with an extra £1.2 million to
the local economy. ● Household income is 10% above GB average.
3
DEBENHAMS HASTINGS TN34 1HN
D.
.
RD
SO
SR
RE
UT
H
HI
EEN
TE
NS
Hastings RR
VO
AC
QU
DE
E
STATION AP
PROACH
A2101
AD
RO
HA
ET
VER
M
NS
ID
RE
DL
ST
LOC
EE
E
ST
ON
L
QU
.
EL
KR
A21 A21
GT
SS
D.
AD
IN
RU
E
LL
RO
AR
WE
A2101
LL
U
SQ
HI
LE
ST
A21
CA
HAR
OLD
.
ST ON
PASSAGE PELH
AM S
A259
N TS
PLAC
T.
SO B ER
ER.
T RO TSON T
ER ROBER K PLACE
E
RO
B
E DENMAR
PARADE E PARAD
CARLISLE CARLISL
A259
SITUATION
The property fronts onto the pedestrianised Robertson Street with
a further entrance from Robertson Terrace which runs parallel and
to the rear of Robertson Street. The Priory Meadow Shopping
Centre (420,000 sq ft) lies the north east of the property, provides
1,100 parking spaces. Tenants include Marks and Spencer, River
Island, Boots, H&M, New Look and Topshop.
Surrounding occupiers include HSBC Bank, NatWest Bank, Café
Nero and Yates’s Public House.
SITE
The property occupies an irregular shaped site with a total frontage
to Robertson Street of 55m (180 ft) and Robertson Terrace of
24.4m (90 ft). The overall site area is approximately 0.214 hectares
(0.53 acres).
4
10 2 PH PH DEBENHAMS HASTINGS TN34 1HN
53 54 to 56 57 58 59 60 61
LB
CAMBRIDGE ROAD
11 9 7
52b
b51 c 51d 52
51 51a51 1a
47 to 49 1 to 3
4
1
11 10
13 12
3
15 14
16
9
5
AG E
N PASS
6
SO El Sub Sta
RT
BE
RO
34 to 69
18 to 33
1 to 17
rt
5 6 Alb any Cou
4
E RRA CE
SON T
ROBERT
REDEVELOPMENT SITE
E
CLUULPTUR
CRE IA'S ICE
TRE
CEN ILE
B
AM
MOB
SC
ZOF
UNDER PMENT
DEVEL
O
IC E
OFF CE
RAN
ENT
5
DEBENHAMS HASTINGS TN34 1HN
THE PROPERTY
HASTINGS TRAIN STATION
6
DEBENHAMS HASTINGS TN34 1HN
DESCRIPTION
The property combines several buildings which 6/9 Robertson Street is of the same construction Internal customer areas are served by escalators
have been altered and extended at various times as Number 4, but includes an additional upper floor. between the ground, first and second floors.
and using a number of construction methods. The ground floor offers similar retail frontage to 1/3 A passenger lift also serves the ground to
Robertson Street with three display windows and fourth floor levels and there are two goods lifts
1/3 Robertson Street is considered the primary
two double doors. serving the basement to upper floor levels.
entrance to the store, situated closest to the
An independent customer lift within the terrace
Robertson Street / Havelock Road and Queens The building fronting Robertson Terrace is more
buildings links the ground, first and second floors
Road Junction. This building dates back to the modern, believed to date back to the 1960s. The
as well. The third floor accommodation is
1800s and comprises basement, ground and ground and first floors (first and second floors from
accessed via a staircase and leads to storage
5 upper floors. It has a sandstone façade to the within the store) are let to Debenhams, with the
areas which are predominantly disused.
upper floors of the frontage with a number of ground having a similar style glazed frontage as
Within the third floor retail space there is a
crittal style steel and PVC windows to the first Robertson Street with display windows and double
section partitioned off which was previously
floor. The ground floor has three full height entrance doors. The first floor is used as a
used as a hairdressers. Currently it is used as a
display windows, two sets of metal, double Debenhams café for customers and benefits from
storage area.
glazed doors and two fire exit doors which lead sea views with large PVC windows. At ground level,
to the basement. to the right hand side there is an undercroft The fourth floor of 1-3 Robertson Street is used
driveway through the building which leads to a small for administrative office purposes and is
Adjacent to this, the ground and first floor of delivery yard which includes a vehicle turning table. arranged in individual rooms. The remainder of
Number 4 Robertson Street is occupied by the fourth floor provides a staff area.
HSBC Bank which is not within the demise of the The additional 6 upper floors of this building
property. By way of a flying freehold, the 2nd comprise a block of residential flats which has been The majority of the remaining areas including
floor of this building is occupied by Debenhams. sold on a long lease as detailed below in the the basement are used for storage purposes,
Tenancy Summary. maintenance offices, plant and staff rooms.
7
ACCOMMODATION TENANCY
Our client has been provided the following gross internal floor areas:- The property is let on two leases as follows:- Rental Period Minimum Rent (pa)
Floor Description Area (sq m) Area (sq ft) 24.06.2019 - 23.06.2024 £720,325.58
The commercial element is let by way of an
Ground Sales 2143.11 23,068 24.06.2024 - 23.06.2029 £814,982.27
occupational lease to Debenhams Retail Plc for
First Sales 2069.78 22,279 a term of 30 years from 25th March 2004 expiring 24.06.2029 - 24.03.2034 £922,077.64
Second Sales and restaurant 2366.67 25,475 24th March 2034 (16 ½ years unexpired).
The residential element, known as Albany
Third Sales and previously hairdressing 679.49 7,314 The tenant has an option to renew the lease at
Court, Robertson Terrace, has been sold on
Fourth Offices and staff room 461.53 4,968 expiry for a further 25 years. The passing rent is
a long lease to Multistates Limited for a term
Fifth Storage and workshop 383.27 4,125 £636,662.55 per annum (as of 24th June 2014
of 199 years from 1st November 2004
Basements Storage 823.09 8,860 minimum fixed uplift) and increases every 5 years,
expiring 1st October 2203 at a peppercorn
based on a stated minimum rent (equates to 2.5%
Total 8926.94 96,089 rent. The tenant is obliged to repair, uphold,
per annum compounded) or the open market rent,
cleanse and keep in repair the premises
whichever is the higher. The lease stipulates the
TENURE including the roof, external and/or load
minimum rent as shown opposite:
The property is held freehold. bearing parts of the building.
8
DEBENHAMS HASTINGS TN34 1HN
TENANT COVENANT INFORMATION VAT
Debenhams is one of the UK’s most iconic department stores The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going
with a history on the British high street dating back over 200 Concern (TOGC).
years, which now trades from 248 department stores across
27 countries. The company is the second largest department EPC
store chain in the UK, with a top four market share in The EPC rating for the property is available upon request.
womenswear and menswear and a top ten share in the
RECENT INVESTMENT TRANSACTIONS
childrenswear market.
Evidence of recent department store investment sales are:
Debenhams Retail Plc has a Dun & Bradstreet rating of 5A1
Location Size (sq ft) Tenant Unexpired Price Yield Date
representing minimum risk of business failure. Financial results ............. .............. Term
for the last three years are set out below: Manchester 387,595 Debenhams 33 years £84.5m 5.07% Under Offer
Southampton 295,000 Debenhams 17 years £29m 5.95% Under Offer
Company Number: 03/03/2016 29/08/2015 30/08/2014
000083395 (£000s) (£000s) (£000s) Nottingham 190,000 Debenhams 23 years £25.85m 5.35% April 17
Sales Turnover £2,105,400 £2,099,300 £2,085,900 Winchester 50,612 Debenhams 17 years £15.83m 4.16% April 17
Pre-tax Profit £145,200 £140,200 £135,700 Eastbourne 102,946 Debenhams 17 years £14.10m 5.88% April 17
Net Worth £1,010,600 £922,800 £809,900 Camberley 115,858 House of Fraser 23 years £17m 5.75% Dec 16
.... (& Nat West)
9
DEBENHAMS HASTINGS TN34 1HN
PROPOSAL FURTHER INFORMATION AND VIEWING
Offers are sought in the region of £9,950,000 Should you have any queries or wish to make an inspection, please contact:
(Nine Million, Nine Hundred and Fifty
Bidwells Hunters Property Investment Limited
Thousand Pounds), subject to contract and
25 Old Burlington Street 66 Grosvenor Street
exclusive of VAT. This reflects a capital value rate
London W1S 3AN London W1K 3JL
of £103.54 per sq ft.
Tel: 020 7493 3043 Tel: 020 7493 2009
This provides the following minimum running
yield profile, net of standard purchaser’s costs:- Mike Fox Richard Hunter
DDI: 020 7297 6273 DDI: 020 7493 2009
Net Initial Yield 6.00% mike.fox@bidwells.co.uk richard@huntersprop.co.uk
June 2019 6.79% Darryl Stevenson Saskia Hunter
June 2024 7.68% DDI: 020 7297 6277 DDI: 020 7493 2009
darryl.stevenson@bidwells.co.uk saskia@huntersprop.co.uk
June 2029 8.69%
October 2017
10Hunters
Property Investment Ltd
Bidwells
25 Old Burlington Street
London W1S 3AN
Tel: 020 7493 3043
bidwells.co.uk
Hunters Property Investment Limited
66 Grosvenor Street
London W1K 3JL
Tel: 020 7493 2009
huntersprop.co.uk
IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 AND THE
PROPERTY MISDESCRIPTIONS ACT 1991
Bidwells LLP and Hunters Property Investment Limited act for themselves and for the vendors
of this property, whose agents they are, give notice that:
These particulars do not form part of any offer or contract and should not be relied upon as
statements or representatives of fact. Bidwells LLP and Hunters Property Investment
Limited have no authority to make or give in writing or verbally any representation or
warranties in relation to the property. Any areas of measurements or distances are
approximate. The text, photographs and plans are for guidance only and are not necessarily
comprehensive. No assumptions should be made that the property has all necessary
planning, building regulation or other consents. Bidwells LLP and Hunters Property
Investment Limited have not carried out a survey, nor tested the services, appliances or
facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of
Health & Safety, please ensure that you take due care when inspecting the property.
Bidwells LLP is a limited liability partnership registered in England & Wales (registered number
OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2
9LD, where a list of members is available for inspectionYou can also read
