Prime Retail Investment Opportunity - 21-27 Church Street, Kingston-upon-Thames, KT1 1RW - Gerald Eve
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Prime Retail Investment Opportunity 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
INVESTMENT SUMMARY
• Kingston-upon-Thames is a leading and renowned retail and commercial centre located
within affluent South West London
• Highly prominent retail pitch situated within the heart of Kingston’s town centre, close
to the famous Bentall Centre and John Lewis
• Attractive property with fully glazed return frontages
• Two well configured retail units arranged over ground and first floors
• Let to 5A1 covenants White Stuff and Molton Brown providing a total current income of
£455,000 per annum
• AWULT of 8.5 years to expiry and 5.46 to break
• Affluent primary retail market area population of 363,000 providing a PROMIS ranking
of 31 out of 200
• Opportunities for asset management and adding value by building upwards and
extending the building to add an additional two floors for residential use (subject to
planning permission)
• Freehold
• We are instructed to seek offers in excess of £9,480,000 (Nine Million Four Hundred and
Eighty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this
level would reflect a net initial yield of 4.50% allowing for standard purchaser’s costs
of 6.69%.
2 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
Kingston Station
The Bentall Centre
John Lewis
Subject Property
Kingston College
3 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
J16
WEMBLEY
LOCATION
A40
A1
M25
HAYES A40
Kingston-upon-Thames is one of the UK’s leading commercial and retailing centres and is one A5
of only six Royal Boroughs in England and Wales. LONDON
J15 M4
The town is located in the affluent South West of Greater London, within the M25 London M4
Orbital motorway, approximately 5 miles south of Richmond, 11 miles west of Croydon and A3
12 miles south west of Central London.
J14 HEATHROW AIRPORT
HOUNSLOW
A307
M25
Kingston benefits from excellent road communications with it being situated TWICKENHAM
within close proximity to the M25, M3 and A3. J13 A3
A23
KINGSTON A24
HAMPTON UPON THAMES
The town benefits from regular commuter rail services into London Waterloo A308
with a fastest journey time of approximately 28 minutes. J12 MITCHAM
M3
A24
London Heathrow Airport is located approximately 14 miles north west of the M25
town and London Gatwick is located 17 miles to the south east, providing easy A3 A240
access to a wide range of regular domestic and international flights.
4 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
SITUATION
The property is situated in a highly prominent
corner position on Church Street, in the heart of
the town centre and within close proximity to the
famous Bentall Centre and John Lewis department
store. The Bentall Centre is Kingston’s principal
shopping centre with approximately 600,000 sq ft
of covered retail accommodation. Major retailers
in the immediate vicinity include GAP, Russell &
Bromley, Whistles, Jack Wills and Fat Face.
5 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
RETAILING IN KINGSTON DEMOGRAPHICS
Kingston-upon-Thames is a leading and renowned retail centre and one of the strongest shopping destinations within the M25 Kingston has an estimated primary retail market
boasting 1.4 million sq ft of retail floorspace (PROMIS). Kingston’s retail provision has a high ranking on the PMA scores ranking it area of 363,000 ranking it 31st out of the PROMIS
20 out of 200 for retail and 17 on the fashion ranking. This reflects the expansive range of national and high-end retailers that are centres by this measure, reflecting the dominance
represented in the town centre, in addition to an extensive leisure and food & beverage offer. Key fashion retailers include H&M, of Kingston across its densely populated catchment
Topshop, Marks & Spencer, LK Bennet, The White Company, Monsoon and Superdry. area. Kingston also ranks 30th in terms of total retail
expenditure (£1.96bn in 2017), which is forecast to
Kingston’s prime retail pitch is focused on the main pedestrian section of Clarence Street, to the north of the property, and within see above average growth of 3.4% over the period to
The Bentall Centre. The shopping centre is anchored by Bentalls department store (a Fenwick store), and trades over four levels 2022.
with over 600,000 sq ft of retail accommodation.
The town has an affluent population ranking 34 on
Church Street provides Kingston’s upmarket retail offering and has attracted high-end occupiers including Whistles, Jones the PMA Affluence Indicator with 72% of adults being
Bootmaker, Crabtree & Evelyn, Karen Millen, L’Occitane and Hobbs. within ABC1 categories.
6 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
DESCRIPTION ACCOMMODATION
The property comprises two high quality retail units offering modern retail and ancillary The property has been measured in accordance with the RICS Code of Measuring Practice (6th
accommodation arranged over ground and first floors. Edition), and provides the following approximate net internal floor areas: -
White Stuff SQ FT SQ M
Ground Floor Sales 1,923 178.65
Ground Floor Ancillary / Storage 137 12.73
First Floor Ancillary / Storage 1,934 179.63
TOTAL 3,994 371.01
Molton Brown SQ FT SQ M
Ground Floor Sales 484 44.97
Ground Floor Ancillary / Storage 5 0.47
First Floor Ancillary / Storage 450 41.83
TOTAL 939 87.27
TOTAL 4,933 458
7 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
TENURE
Freehold.
TENANCIES
The property is let on 2 Full Repairing and Insuring leases producing a total passing rent of £455,000 per annum.
Tenancy information is detailed in the schedule below:
Tenant Name Lease Start Tenant Break Lease Expiry Passing Rent ITZA Next Review Rent Review
White Stuff Upwards only
30-Aug-2018 29-Aug-2024 29-Aug-2028 £350,000 £270 30-Aug-2023 to open market
Limited rental value
Molton Brown 27-Jul-2017 Upwards only
27-Jul-2007 26-Jul-2022 £105,000 £257 to open market
Limited (outstanding) rental value
8 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
COVENANT INFORMATION
White Stuff Limited Molton Brown Limited
(Company number 02319237) (Company number 02414997)
White Stuff was formed in 1985 and sells high-end casual outdoor garments including skiwear. Molton Brown was originally founded as a hair salon in 1973 and has since become one of the
The company now trades from over 115 shops across the UK and Germany as well as running a UK’s leading upmarket producers of toiletries and grooming products. The company now sell their
successful wholesale business and online sales. products through their own network of retail stores and within department stores worldwide. Their
products can also been found in some of the most prestigious hotels in the world.
The company is in a very stable condition and has a D&B rating of 5A1 and a failure score of 94
out of 100 (low risk). The company is in a very stable condition and has a D&B rating of 5A1 and a failure score of 100
out of 100 (low risk).
The most recent financial results for the company are summarised as follows:
The most recent financial results for the company are summarised as follows:
29 April 2017 30 April 2016 2 May 2015 31 December 2016 31 December 2015 31 December 2014
White Stuff Limited (£) In Thousands (£) In Thousands Molton Brown Limited (£) In Thousands (£) In Thousands (£) In Thousands
(£) In Thousands
Sales Turnover 151,386 144,140 131,446 Sales Turnover 79,719 70,618 67,929
Profit/(Loss) Before Taxes 9,110 15,968 16,375 Profit/(Loss) Before Taxes 2,690 3,837 10,594
Tangible Net Worth 39,571 34,732 21,345 Tangible Net Worth 35,096 33,862 33,965
Net Current Assets 20,446 18,711 8,313 Net Current Assets 29,331 29,311 29,121
9 21-27 Church Street, Kingston-upon-Thames, KT1 1RW
ASSET MANAGEMENT
Subject to planning permission, there is potential
to build upwards and create an additional two
floors for residential use. Given the strength
of the residential market in Kingston, there is
potential to add considerable value here.
EPC
Energy Performance Certificates are available
upon request.
VAT
The property is elected for VAT and it is
anticipated that the transaction will be treated
as a Transfer of a Going Concern (TOGC).
PROPOSAL
FURTHER INFORMATION
We are instructed to seek offers in excess of
£9,480,000 (Nine Million Four Hundred and For further information or to arrange and inspection, please contact the following:
Eighty Thousand Pounds) subject to contract and
exclusive of VAT. A purchase at this level would Verity Youlden Andrew Matthews Richard Lines
reflect a net initial yield of 4.50% allowing for
standard purchaser’s costs of 6.69%. T: 020 7518 7277 T: 020 3486 3482 T: 020 7333 6274
E: VYoulden@geraldeve.com E: AMatthews@geraldeve.com E: RLines@geraldeve.com
Conditions under which these particulars are issued
All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:-
1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract.
2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors.
3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars.
4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property.
The statement does not affect any potential liability under the Property Misdescriptions Act 1991. Particulars issued September 2018.
© 2018 Gerald Eve LLP. All rights reserved.
Gerald Eve LLP is a limited liability partnership registered in England and Wales with registered number OC339470 and its registered office at 72 Welbeck Street, London, WIG 0AYYou can also read
