Minster Quarter - Phase 1 Reading - A unique freehold mixed-use development opportunity in the heart of Reading - LoopNet
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Minster Quarter - Phase 1 Reading A unique freehold mixed-use development opportunity in the heart of Reading
READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
A unique opportunity to
step into a well progressed
residential development
MINSTER QUARTER - PHASE 1 | READING 3
READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
Low rental base, which will
continue to diversify
Investment Summary
• Defensive, convenience retail and leisure is let
off low average rents per sq ft (£3 basement,
£13 external ground floor, £11 internal ground
floor and £5 at first floor)
• The offices are let off a low average rent of £17
per sq ft, representing a significant discount to
prime rents of £40 per sq ft
M11
Luton
Stevenage
• Residential will contribute the largest income
M40
Aylesbury
A1(M)
component in the future
M1
Harlow
M11
Oxford
Chelmsford • The remaining tenant mix will be highly
M25 diversified between hotel, leisure, retail and
High Watford Enfield
Wycombe
M40
M25
M1
office uses.
M25
Harrow Romford Basildon
READING • The vendor is willing to consider offers for the
Slough
LONDON
M4 M4
M4
property in its constituent parts or as a whole
Twickenham
Bracknell Mitcham Bromley
Newbury
Croydon M2
M3
Existing Income Profile 2021
Woking M25 M20
M26 3%
Farnborough
Basingstoke M25 Sevenoaks
Guildford
3% 3% 11%
M23
M3 Royal
Tunbridge
11%
Crawley
Wells
Horsham
Minster Quarter is in the heart of The freehold property for sale Mixed use asset delivering Refurbished and repurposed 27%
15%
Reading, one of the UK’s most extends to 5 acres, representing robust performance
• Boutique cinema, live events and
vibrant growing towns the first phase of the wider
• Gross income of £5,239,166 catering offer, strengthening the
Minster Quarter development
and net income of £4,468,563 community provision at the centre 5%
• Reading is the fastest growing UK • One of the best located mixed
• Footfall increase 27% over the • Competitive socialising venue 2% 21%
town. A Life Sciences and tech hub, use development opportunities
previous 2 years (including bowling, crazy golf and
home to 13 of the top 30 global in the UK, and the potential to Repurposed Leisure Outward Facing Retail Internal Mail
darts) providing the only facility of
brands create a landmark destination • WAULT of 4.9 Yrs to break and First Floor - Wellbeing First Floor - Services Flexible Office Space
its kind in Reading Office Commercialisation Misc Car Park
7.9 yrs to expiry
• One of the best connected hubs in • The council owned site
• International restaurant brands
the UK, 23 minutes from London by adjacent is allocated for a
Usage
Floor Area Average Rent
(Taco Bell) and high quality Future Income Profile 2025
train, 27 miles from Heathrow and further 1,300 new homes (sq ft) (per sq ft)
Outward independents (including Greek and 1%
connected to national motorway Facing Retail 71,980 £13
1% 1%
• Additional innovations include Thai offers)
network by the M4. Crossrail will & Leisure
educational facilities, student 8%
deliver a further boost. Internal Mall 68,323 £11
• Agreement for Lease with a new
residences, placemaking, tech First Floor 105,501 £5 5%
food hall concept, anchored by a
• Its population is affluent, highly and Life Sciences Basement 77,003 £3
micro-brewery 6%
educated and disproportionately Offices 75,215 £17
• Opportunity to work in
young 3%
54%
collaboration with the council
• The site anchors the western end to positively influence the form 8%
of the core retail pitch, a 5 minute of development
walk from the train station and Repurposed 398,000 sq ft mixed use investment 11%
accessed immediately off the Inner
Distribution Road (IDR) opportunity with significant development potential 5% 5%
Residential Hotel Basement Logistics
MINSTER QUARTER - PHASE 1 | READING 5
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Residential Residential Residential
Investment Summary Affordable
Quadrant House
Offices
Hotel
Fountain
House
Offices
Residential Quadrant House
Planning consent 13,600 sq ft newly
for 422 flats refurbished
co-working space
ST
M
D
ROA
A
RD
R
O
Y
OXF
S
B
U
TT
S
TR EET
I ER S
HOS
Fountain House
Q
U
62,400 sq ft currently let
EE
HOSIER STREET
E L Hotel
N
LEV MARKET
S
as offices with a residential UND
W
GRO
A
LK
permitted development Planning consent for
application being 101 bedrooms and ground
processed floor restaurant
A Y
FW
EL DOR Basement Ground Floor First Floor
D USS
Internal community External retail and
Basement Further based, defensive retail leisure with scope to add
development phases and medical uses to A3 tenant mix
Opportunity to repurpose
77,000 sq ft of basement Ongoing Scope to expand MSU,
space and introduce last opportunities to service-led and medical offers
mile logistics, storage, dark evolve and intensify
kitchens, conferencing or site usage
additional leisure space
MINSTER QUARTER - PHASE 1 | READING 7
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River Thames
Reading Station Thames Tower Forbury Place
Reading Town Hall
Crossrail
Station Hill
The Oracle
Reading Minster
Friar St
Broad St
Oxford Rd
Penta Hotel
Minster Quarter
– Phase 1 Hosier Street Market
A329
Reading Borough Council
Minster Quarter
Development Site
Oxford Rd River Kenet
A329
Student Accommodation
IDR
9
READING
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Reading
Young, mobile 13 of the 17,000
and highly top 30 students
educated global brands Renowned
University town with
Readings population is Reading is home to some
students from 150
attracted to the town of the largest companies
different countries
by a dynamic business in the world
environment and high
quality of life
“Silicon Valley” 72% of the Crossrail will
of the UK population arrive in 2022
Reading is a Life
STOCK IMAGE
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Connectivity to London
Route Map
Reading is one of the best connected hubs in the
UK, being located adjacent to the M4, just 40 miles Crossrail
from London (23 minutes by train) and 27 miles from Heathrow Airport 38 minutes
Showing rail and air connections
Heathrow airport (38 minutes by train). Heathrow Bond Street 53 minutes
serves on average 81 million passengers annually and Liverpool Street 61 minutes
provides flights to over 180 destinations.
Reading train station was upgraded in 2013 at a
cost of £900 million, adding five new platforms, a
National Rail
new link bridge and additional entrance. Reading
London Paddington 23 minutes
provides direct access to Central London with
journey times to London Paddington of just 23
minutes. Reading is also connected to the UK’s
“Knowledge Arc” with a journey time to Oxford of
Airport
just 21 minutes.
London Heathrow 26 miles
Already strategically positioned on a busy rail London Gatwick 55 miles
and road interchange, connections will shortly be
significantly boosted by the arrival of Crossrail. The
redeveloped station will accommodate the new
Crossrail Elizabeth line service, which is expected Car
to operate from 2022. This new, high capacity M4 motorway 4 miles
service will link 41 stations from Reading in the west, M25 motorway 23 miles
through Central London, to Shenfield and Abbey
Wood in the east.
Six Crossrail trains per hour will pass through
Reading station with direct services to the
Crossrail Elizabeth Line West End, City and Docklands
Route Map
SOUTH BUCKS HILLINGDON ISLINGTON
CAMDEN Circle
Metropolitan
Hammersmith
Surface line & City Hammersmith
& City
Central
Tunnel Taplow Burnham EALING District Central
Luton
Gatwick
District TO
Overground HAM
Jubilee
Portal (tunnel entrance and exit) WESTMINSTER Farringdon Whitechapel
Ealing Bond
West Broadway Street
KE CH
National Rail connection Iver Drayton Hanwell
Maidenhead Langley
NS EL
CITY OF
HA & F
Hayes & Southall LONDON
SLOUGH Liverpool
I
Acton
NG EA
Airport connection Harlington Tottenham
MM ULH
Slough West Paddington Street
Main Line
TO
Court Road
S
Ealing Circle
N
ER AM
Circle
Northern
&
Hammersmith Metropolitan
Central
SM
& City Hammersmith
Bakerloo & City
IT
District Northern
H
Central
Twyford
WINDSOR & MAIDENHEAD Stansted
Southend
T1,2,3
Heathrow
T4
Reading WOKINGHAM
Piccadilly
Heathrow
MINSTER QUARTER - PHASE 1 | READING 13
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Reading Residential
Reading is ideally placed within London’s Reading consistently outperforms the South East
and wider UK averages with average rental growth
commuter belt, which makes it an currently standing at 2.18% per annum (Knight Frank
attractive proposition to buyers moving out Research). Rents are forecast to grow by 10.9% by
of the Capital in search of more space, a 2025, outstripping the wider South East region by 1.6%.
Residential sales values in Reading are also forecast to
change of lifestyle, or for schooling for their grow by 10.9% to 2025.
children. The town is also a short journey to
Heathrow and Gatwick airports, adding to
South East Reading
its global appeal.
Crossrail is already having a significant economic impact 2021 0.0% 0.0%
on the South East, with house prices in Crossrail towns
increasing by 84% since its inception in 2009. Crossrail
2022 1.5% 1.5%
towns have seen growth outstrip the wider area,
including London, where house prices have only grown
by 57% in the same period (Crossrail). 2023 2.5% 3.0%
Crossrail will introduce a growing residential core of
2024 2.5% 3.0%
young professionals who will make up a significant part
of the target demographic. Reading’s youthful and
2025 2.5% 3.0%
highly mobile population is ideally suited to rented or
flatted accommodation, with 35% of total households in
Reading already living in private rented accommodation 2021-2025 9.3% 10.9%
(Mosaic). It is projected that there will be a net inflow
of commuters into Reading once the Crossrail link is Source: Knight Frank Research
established.
Reading is a high-profile residential development
This rental base, coupled with growing levels of
destination, with existing schemes adding to the quality,
employment, currently standing at 96.4% of the total
scale and critical mass of the location. Development
workforce, makes Reading the ideal location to develop
pipeline stock accounts for just 6% of the market’s
a BTR platform (Oxford Economics). Median incomes
capacity (Knight Frank Research).
among Reading’s rental population are 12% higher than
the UK average and household disposable income is set
to grow by a further 13% by 2029, offering significant
scope for rental growth within Reading.
Development pipeline stock accounts for just 6% of the
market’s capacity (Knight Frank Research)
There are no completed BTR A young and highly affluent
schemes in Reading. population ideally suited to
This investment offers an develop a BTR platform at the
“early-mover” advantage. heart of Reading town centre.
MINSTER QUARTER - PHASE 1 | READING 15
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Reading Office Market Retailing in Reading
Reading has a diverse range of occupiers who Reading consistently ranks among the top retail Superdry and Zara. The centre has a mass-market
employ over 220,000 people within the town centre. destinations in the UK. It is the 12th largest town for leisure provision let to a Vue and food and beverage
Reading is often referred to as the “Silicon Valley of consumer spend and shopper population (CACI). occupiers including Nandos, Pizza Express and
the UK” due to its high concentration of tech-based Wagamamma.
OXFORD
Reading dominates its catchment, retaining 88% of
companies.
total spend within the town centre. The town draws
Multinational IT employers including Cisco Systems, from a large catchment of many smaller, affluent M40
Verizon, Microsoft, O2, Three Mobile and The towns in the surrounding area. The total shopper
Oracle Corporation have made Reading their home, population is 309,000 people (CACI). HIGH WYCOMBE
alongside Bayer, Thales, Primark and major UK-based
Town centre retail floorspace in Reading is estimated M40
businesses including NHS, SSE, Thames Water and the
at 1.78 million sq ft, 24% lower than the average for
Environment Agency.
the top 30 retailing centres or 577,000 sq ft lower in
absolute terms. SLOUGH
The main shopping thoroughfare in the town is the M4
M4 READING
pedestrianised Broad Street, which houses large
A329(M)
stores occupied by John Lewis, Primark and Marks BRACKNELL
& Spencer. Broad Street Mall, the retail component
M3
of Minster Quarter, bookends the western end of
the prime pitch and is the main focus for value and CAMBERLEY
convenience orientated retailing in Reading town
FARNBOROUGH
centre. The proposed improvement to public realm M3
BASINGTOKE
and the extension of the pedestrian thoroughfare
along Oxford Road will enhance the location further.
The M4 corridor has experienced marked increases The Oracle, located at the eastern end of Broad
M3
in take up over the past year, with demand growing Street, provides 745,000 sq ft of retail floorspace and
Overall ranking as a potential hub and spoke location external leisure. Historically anchored by department
by 111% since Q2 2020. Reading has captured most
of this demand, boasting the highest percentage of stores let to Debenhams and House of Fraser, other
take-up of 77 South East office destinations, and a 1 Hammersmith retailers include Victoria’s Secret, Apple, Hollister,
12% market share (Knight Frank).
Reading is also set to capture significant demand 2 Reading
going forwards ranking 2nd of 49 “hub & spoke” Prime Retail Rents
(per sq ft)
locations in the UK (Knight Frank Research). These
locations, offering excellent connectivity to major 3 Bromley Overall Zone A
cities alongside highly successful existing business
environments, are due to benefit from greater Minster Quarter £12.00 £65
4 Watford
workforce flexibility. These highly accessible
locations will absorb new demand from businesses Broad Street £30.00 £150
seeking additional “spoke” locations, and the arrival 5 Croydon
The Oracle £35.00 £175
of Crossrail in 2022 will act as a further catalyst to
this model. Out of Town
£25.00 -
Retail Parks
Minster Quarter dominates Reading is one of the UK’s
Reading, the “Silicon Valley of Reading has the highest take Reading’s convenience retailing top retail destinations. Total
the UK”, is home to businesses up of 77 South East office offer, hosting a successful mix of floorspace is 24% below
employing 220,000 people. destinations (Knight Frank Research) service and value-led retailers. averages for the top 30 towns.
MINSTER QUARTER - PHASE 1 | READING 17
STR
EET
READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
CHEAPSIDE
HOME READING CONNECTIVITY OFFICE & RETAIL Broad Street
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS 96 98
93 94 97
88 89 90 to
87a 89
87
84
83
82
31
80 81
77
Reading Borough Council
75
2
30
ROAD
OXFORD
3
30A
4
29
41
5
65
16
to
14
Chain Street
62
63
St Mary's
61
Church House
ST
Minster Quarter Masterplan
1
MA
59
-60
RY
Hotel
'S
Queens
BU
58
53
T
Information PH
Broad Street Mall
54
TS
Bureau
57
Walkk
56
The Broad Street Mall
55
4
Reading Minster of to
St Mary the
Fountain
Multistorey Car Park Virgin
House
Reading Borough Council have an exciting masterplan There is a clear opportunity for the purchaser to work Minster C
to revitalise the historic core of Reading town centre. alongside the council and help unlock this large-scale HOSIER
STRE ET
15
The owners have worked with Reading Borough future development. The benefits from this scale of
HOWARD
14
13
12
Council to integrate their proposals into the wider regeneration to the area immediately alongside the EE
T
STREET
TR
NS 9
GU
masterplan. The 422 consented residential units above property are significant, reinforcing the strength of 6
5
the property represent an integral component of the the location and supporting the diverse range of uses
4
3 to
2
1
overall plan and a key first step to catalyse the wider and occupiers proposed. St Mary's
Church
PH
development.
2
1
3
4
9
5
6
7
8
This large-scale urban regeneration project is
10
focussed on the site of the old Reading Civic Centre, Do not scale off this drawing
Date Rev. Revisions
directly adjacent to the existing Broad Street Mall. 21
23
25
BR
Club
IDG
ET
ES
31
RE
Cu
TR
ST
s
de
EET
LE
nW
30
Broad Street
ST
35
alk
Development Framework
CA
37
Area
39
alk
96 98
W
w 113
Ne
93 94 97
88 89 89 90 to 43 108 to
87a
Core Area around Hosier Street
87
Proposals could include:
84
83
(RBC owned)
82
31
80 81
77
75 51
RO
17
SE
18
WA
L K
2
Thames Valley Police
1
30
2
55
1,300 new homes in Conferencing facilities Flexible events “Greenstreets” on
3
30A
4
29
a mix of low-rise and to capture demand and outdoor the site of the street
59
Magistrate Court
5
tall buildings associated with the performance space currently known as
65
16
to
63
14
Chain Street
University, which is a Queens Walk 34
Broad Street Mall
62
63
St Mary's
key life sciences hub
61
Church House
ST
1
MA
59
-60
ET
RY
RE
ST
'S
LE
ST
BU
CA
58
53
TT
S
Relocation of the New bridge link over A new town centre Further educational
open local market into the arterial A329/ University campus, uses with a growing
improved facilities and IDR to the west of accommodated number of student
flexible, pop-up retail the centre, improving within the halls of residence
space to cater for new accessibility into the development within the town
businesses town centre centre linked to the
University of Reading
A council-led masterplan to deliver large-scale urban regeneration
of which the subject property is a key component.
19READING
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Minster Quarter
- Phase 1
An Exceptional
Development Opportunity
An exciting 5 acre mixed-use development
opportunity with planning consent in place.
Minster Quarter presents a rare opportunity to take forward a
genuine mixed-use development project at the heart of one of
the UK’s most dynamic locations.
Situated at the western end of Broad Street, in the heart of
Reading town centre, the site totals 5 acres.
Comprising offices, flexible workspace, convenience and value
retailing, leisure, education and service-led uses including
healthcare and community occupiers, the property also has a full
height, 5m basement with scope to introduce logistics, storage,
data, leisure, conferencing or educational uses.
Residential Opportunity
A consented opportunity to deliver 422
apartments across four blocks, transforming the
Reading residential market.
Excellent central location in close proximity to the heart of
Reading’s social and cultural centre
Four distinct structures providing a range of 1, 2 and 3 bedroom
apartments
422 new apartments
Private amenity deck accessible only by residents, unique to the
Reading residential market
Significant number of apartments offer dual aspect living spaces,
meeting current occupier demands
Affordable housing provisions impact on only 10% of the
total units
MINSTER QUARTER - PHASE 1 | READING 21READING
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A consented flexible
Build-to-Rent or
Build-to-Sell design
These exciting proposals have been designed to
accommodate either a bespoke build-to-rent platform
or build-to-sell units, comprising three residential
towers on top of a podium, with independent access
for each tower. Site E (on the Oxford Road frontage) is
currently proposed to house the affordable element of
the development.
Further flexibility can be worked into proposals to
ensure linkage to the Reading Council Minster Quarter
Masterplan. With evolution in the dynamic of the town
centre, the retail offer will inevitably benefit from
the extensive development proposed and positively
change to meet the demands of the new residential
occupants.
Hotel Development
Opportunity
Alongside the planning consent achieved for the
residential development, a consent is in place to
develop a 101-bedroom hotel on Hosier Street. The
hotel will be a significant footfall driver, integrated
directly with Reading Borough Council’s Minster
Quarter Masterplan.
Premier Inn have previously committed to operate a
101-bedroom hotel, along with a restaurant and bar on
the ground floor.
The site offers an excellent opportunity to revisit the
Premier Inn plans or introduce an alternative operator
to the site. Alternatively, the opportunity exists to
explore an apart-hotel concept.
MINSTER QUARTER - PHASE 1 | READING 23READING
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Broad Street Mall
A Repurposed
Retail Offer
The existing mall element, Broad Street This repurposed leisure quarter is
Mall, is arranged over three levels expected to cater for Reading’s
including a full height basement. The substantial young professional and
ground floor hosts the core of Reading’s student population, driving footfall to
convenience and value-retailing offer the western end of Broad Street and
with large units let to TK Maxx, Iceland throughout the centre.
and Poundland. The first floor provides
An Agreement for Lease has also been
a mix of supporting service-led units
signed with UNION Reading for a new
with units let to NHS, Post Office and
Food Hall that will be anchored by the
The Gym and new leisure uses with
Vocation Brewery serving 50 draft beers
the recent introduction of a boutique
and further food and drink pods. The
cinema, events space and restaurants.
pods will include Burgers, Falafels, Pizza,
The centre benefits from four significant Barbeque and Coffee. The offer will
external frontages to Oxford Road, transition throughout the day, providing
St Mary’s Butts, Dusseldorf Way and breakfast and coffee during the morning
Queens Walk. The design delivers followed by lunch and grab & go to a
valuable flexibility and provides a vibrant evening offer.
much more lettable proposition to the
Demand for retail space has remained
typical inward facing department store
robust throughout the current
anchored shopping centre designs.
ownership, proven by recent lettings to
The owners have successfully Taco Bell, to ThaiGrr and to Kourelou
repurposed a former three level Argos Greek restaurants on Queens Walk as
store to deliver a 3-screen boutique part of the repurposing of the former
cinema, competitive socialising and Argos space.
catering element to Reading town
Internally, the malls have been recently
centre. The development is focussed on
refurbished to provide a mix of well-
external frontages on Oxford Road and
configured, large retailing space, which
Queens Walk and also includes a grocery
is an affordable alternative to other
store, let to Iceland.
accommodation on Broad Street, The
Oracle, and out of town locations.
Repositioned to house a cinema, additional restaurants and Four external frontages deliver valuable flexibility and provides
a competitive socialising offer, adding an evening economy a much more lettable proposition to the typical inward facing
and strengthening the community offer at the centre. department store anchored shopping centre designs.
MINSTER QUARTER - PHASE 1 | READING 25READING
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Broad Street Offices
Minster Quarter’s two office blocks are accessed
from the centre car parks and Queens Walk. Fountain
House (62,400 sq ft) compromises a successful, multi-
let office property catering for a mix of multi-national,
national and regional occupiers. Tenants include a
serviced office provider and The University of West
London.
Quadrant House (13,850 sq ft) was recently let to Co-
space, a serviced office and co-working provider. The
reception links directly into the mall and incorporates
a new coffee shop. The letting will be the catalyst
for an influx of young professionals using the flexible
office space throughout the day, driving spend to
other tenants on the property.
Fountain House offers flexibility to either improve the
longevity and security of the existing office income
streams or a conversion of the building into residential
uses through PDR. The existing, linear floorplates,
coupled with plentiful natural light, offer excellent
conversion potential.
The introduction of new bars, restaurants, cafes and
a cinema and events destinations along Queens Walk
will transform the estate and lead to a substantial
improvement to placemaking. This growing
attractiveness of the location will drive an increased
depth of demand for the offices and the potential for
rental uplift.
Optionality to either improve the
existing income profile or explore a
conversion to residential uses under
Permitted Development Rights
MINSTER QUARTER - PHASE 1 | READING 27READING
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Repurposing
The recent investment has future proofed the centre
and provided an excellent platform for the next stage
of the asset’s life cycle, introducing high density
residential and hotel accommodation.
Project Description
Substantial repositioning to include a new Iceland
foodstore at ground floor, a boutique 3-screen cinema,
two new high quality independent restaurants and a
Redevelopment of basement competitive socialising offer. This market-
Former Argos Store leading repositioning has introduced an evening
economy that can now be added to and enhanced.
Really Local Group’s community focus will appeal to the
full social demographic in Reading town centre.
Full overhaul of Quadrant House including renewal of the
Quadrant House services, flooring, lighting, ceilings and communal parts
Refurbishment and letting to Co-space, a serviced office and co-working
provider, incorporating a new coffee shop in the mall.
The internal common parts have been substantially
Mall and Fountain refurbished including new flooring, lighting ceilings,
House Refurbishment atrium and WCs along with a complete refurbishment of
three floors and the reception of Fountain House.
Total Landlord Investment of £8m (excluding design and planning costs to
achieve the residential and hotel consents)
The next phase of repurposing will introduce UNION Reading,
a brewery-anchored, all-day foodhall concept, opening in Q1
2022 on Dusseldorf Way
Minster Quarter is an exemplar of repositioning a
shopping centre to ensure the offer remains highly
relevant to its catchment and provides a hub for
community interaction and entertainment.
MINSTER QUARTER - PHASE 1 | READING 29READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
Additional Future Value
Enhancement Initiatives
In addition to the consented residential and hotel development there are multiple
additional opportunites to enhance the value of the asset.
1 Delivery of Hotel 4 Basement Repurposing
6
Residential Residential Residential
Negotiations are ongoing with Premier Inn, to operate The property has 77,000 sq ft of 5m height basement space, which is
Quadrant House
a 101-bedroom hotel and Thyme restaurant at ground Affordable Offices
currently underutilised due to changing retailer requirements. The space is
floor and an agreement for lease has been signed. highly accessible, directly from the IDR (Reading’s primary arterial road) and
Alternative hotel operators have also expressed an Hotel provides 5m clear height throughout.
interest, which could be progressed. Fountain
House A city centre basement of this scale is a very rare asset. There is potential
Offices to utilise the vacant space within the basement or negotiate the release of
space to accommodate alternative uses including last mile logistics, data
centres, storage, conference space, dark kitchens, additional leisure facilities.
2
2 422 residential units
5 1
Flexibility to deliver either a build-to-rent or build- 5 Fountain House Offices
to-sell platform. The first phase of residential
ST
Flexibility exists to either improve the longevity and security of the
M
development will catalyse the advancement of the OA D
A
DR existing office income streams or consider a conversion of the building
R
OR
Y
next phase of the Minster Quarter development OXF
S
7
B
into residential uses, with the existing floorplates offering excellent
U
TT
framework, which includes an allocation for a further
S
conversion potential.
1,300 new homes on the adjoining council land.
EET
STR There is scope to lease the vacant 5th floor and grow rents through
3 HOS
IER
tenant engineering as the micro-location is improved. Alternatively, an
application is being prepared under Permitted Development to convert
Q
U
EE
HOSIER STREET
EL the building to residential.
N
LEV MARKET
S
ND
W
G ROU
A
LK
4
3 Ground Floor External Frontages
Y
The centre’s design, with four external frontages, has ORF
WA
ELD Basement Ground Floor First Floor
created flexibility to accommodate a range of leisure, DUS
S 6 Further Development Phases
catering, grocery and service-led uses. Demand has Following the delivery of the proposed towers along Dusseldorf Way, further
proven to be very resilient for these units, and there is phases of site intensification may include additional accommodation along
scope to increase the proportion of externally accessed the St Mary’s Butts frontage, subject to necessary consents.
space through the reconfiguration of existing floorspace.
The raft of development projects will deliver a truly mixed use asset that
caters for the evolving needs of residents, workers and shoppers alike.
MINSTER QUARTER - PHASE 1 | READING 31READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
Asset Management Plan
Ground Floor First Floor
1 Ground Floor - MSU consolidation 2 Placemaking and A3 quarter 3
Delivery of Food Hall letting 4 First Floor - further medical and 5 Car Park Regear
to UNION Reading community uses
A key strength of the property is the These two frontages will be significantly The Car Park is currently council operated
quality of the anchor tenants. TK Maxx remodelled as part of the wider A market-leading food hall operator, who Strengthening of the existing services on a long lease. A re-gearing of the car
have recently committed to extend development opportunities at the property. will operate an all-day food, coffee and and medical offer to introduce more park could enable additional income
their lease for a further 5 years, a strong There is the opportunity to enhance drink offer on the Hosier Street frontage healthcare and community uses. There is generation and introduction of new
endorsement of the ongoing attraction the environment through placemaking of the scheme. An Agreement for Lease the opportunity to capture live demand technology and tariff systems which
of the trading environment. There is the initiatives and drive rents forward. There is has been signed and the operator is due to for this space and improve the existing support the future occupiers of the
potential to consolidate internal units in to the potential to create a destinational mix start on site imminently. profile. Historic demand has originated property.
bigger box affordable MSU’s for anchor of restaurants and cafes, bookended by from medical, dentistry and physiotherapy
tenants, helping drive price tension in the repurposed cinema and leisure element centres for this space.
letting the remaining units. and the newly developed hotel.
MINSTER QUARTER - PHASE 1 | READING 33READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
Income Analysis Tenure
The property totals 398,000 sq ft of commercial the marketing budget. Within the retail component, A freehold site,
floorspace of which 76,000 sq ft comprises units are let to a sustainable mix of tenants who are extending to 5
refurbished office space (including 37,000 sq ft of generally expanding their national occupied portfolios. acres, in the heart
flexible offices), 39,800 sq ft repurposed leisure of Reading town
The property’s office component is let to 4 tenants
space, 32,170 sq ft outward facing retail space, 68,300 centre’s most
and produces a gross income of £1,260,000 per
sq ft of internal mall space, 105,500 sq ft of health, exciting regeneration
annum. The income will improve to £1,404,300 per
wellbeing and first floor space and 77,000 sq ft of opportunity.
annum upon letting of the vacant 5th floor of Fountain
basement space.
House.
The commercial element of the scheme produces
The property benefits from a WAULT of 4.9
a gross income of £5,239,166 per annum and a net
years to break and 7.9 years to expiry, excluding
income of £4,468,563 per annum after the deduction
commercialisation and car park income. The Broad Street Mall
of landlord non-recoverable costs and contribution to
Monthly footfall Existing Usage by Floor Area Existing Usage by Income
Monthly Footfall
900000
18%
800000 19%
700000 26%
600000
500000 35%
400000
300000
17%
200000 19%
100000
0
y ry ch il ay ne ly t r er r r
ar ua ar pr Ju us be be be
nu A M Ju ug ob 23%
Ja br M A te
m ct em em 6%
Fe p O ov ec
Se N D
27% 10%
2017 2018 2019 2020
Outward Facing Retail & Leisure Outward Facing Retail & Leisure
Internal Mail First Floor Internal Mail First Floor
Basement Offices Basement Offices
Top 10 Tenants
Total Rent % of Total
Unit Tenant Lease Expiry Break Option
(per annum) Income
Fountain House Reading Business
£437,414 2028 8%
- 3rd/9th/10th Floors Centre
MBO
Quadrant House £337,500 2031 6%
2026
Fountain House
CoSpace £323,700 2028 6%
- 6th/7th/8th Floors
201/205 Broad Street Mall/ TBO
Metro Bank £250,000 2037 5%
Oxford Road 2022
TBO
38/41 Broad Street Mall TK Maxx £175,000 2029 3%
2024
124-135 Broad Street Mall Wilkinsons £175,000 2025 3%
49 Oxford Road Really Local Group £161,350 2036 3%
Footfall stood at 7.5 Minster Quarter is a rare example
55/56 Broad Street Mall Poundland £160,000 2024 3%
million pre-Covid, of a UK shopping centre where
36/37 Broad Street Mall UNION Reading £130,000 2036 2% reflecting a 27% over the the income profile is on an
3 St Mary's Butts & 102 Broad
Street Mall
The Gym Group £116,640 2028 2% previous 2 years upward gradient
£2,260,382 43%
MINSTER QUARTER - PHASE 1 | READING 35READING
INVESTMENT READING MINSTER BROAD STREET ENHANCEMENT FURTHER
HOME READING CONNECTIVITY OFFICE & RETAIL
SUMMARY RESIDENTIAL QUARTER MALL & OFFICES INITIATIVES INFORMATION
MARKETS
Further Information Key Contacts
Dataroom Car Parking COMMERCIAL RESIDENTIAL DEVELOPMENT BUILD-TO-RENT
Further information can be located on the The property benefits from a 740 space
data site, accessed via the following link multi-storey car park, accessed from Charlie Barke Tim Traynor Nick Pleydell-Bouverie
www.minster-quarter-development.com Castle Street. The car park is let to Reading 020 7861 1233 01483 617 929 020 7861 5256
Borough Council until 2097 and annual Charlie.Barke@knightfrank.com Tim.Traynor@knightfrank.com Nick.Pleydell-Bouverie@knightfrank.com
Service Charge income received is based on 4.489% of
turnover. The total turnover for the year Will Lund Charlie Dugdale Claire Fisher
Operating costs at the mall are covered 020 3909 6819 020 7861 5411 020 3967 7179
ending 2019 was £1,621,698 per annum
by way of a comprehensive service charge Will.Lund@knightfrank.com Charles.Dugdale@knightfrank.com Claire.Fisher@knightfrank.com
which equated to a net rental income of
regime, which runs from 1st April to 31st
£72,798 per annum.
March and is apportioned on a floor area
basis. The 2021/2022 service charge budget
for centre totals £2,174,166 per annum Marketing Budget
equating to approximately £5.48 per sq ft. The proposed marketing budget for 2021/22
Further information, including service charge is £124,900 per annum. The landlord
expenditure and budgets, is available in the currently contributes 50%. A full breakdown
marketing data room. is available in the marketing data room.
IMPORTANT NOTICE (1) Particulars: These particulars are not
an offer or contract, nor part of one. You should not rely on
statements by Knight Frank LLP in the particulars or by word of
mouth or in writing (“information”) as being factually accurate
about the property, its condition or its value. Knight Frank LLP has
no authority to make any representations about the property, and
accordingly any information given is entirely without responsibility
on the part of the agents, seller(s) or lessor(s). (2) Photos etc:
The photographs show only certain parts of the property as they
appeared at the time they were taken. Areas, measurements and
distances given are approximate only. (3) Regulations etc: Any
reference to alterations to, or use of, any part of the property does
not mean that any necessary planning, building regulations or other
consent has been obtained. A buyer or lessee must find out by
inspection or in other ways that these matters have been properly
dealt with and that all information is correct. (4) VAT: The VAT
position relating to the property may change without notice. Knight
Frank LLP is a limited liability partnership registered in England with
registered number OC305934. Knight Frank LLP registered office is
55 Baker Street, London, W1U 8AN, where you may look at a list of
members’ names. June 2021.
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