SOUTHEND-ON-SEA CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB - WELL LET FREEHOLD MIXED-USE BUILDING ADJACENT TO SOUTHEND CENTRAL STATION ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
WELL LET FREEHOLD MIXED-USE BUILDING
ADJACENT TO SOUTHEND CENTRAL STATION
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
SOUTH ESSEX SOUTHEND UNIVERSITY ALEXANDER SOUTHEND
COLLEGE CENTRAL OF ESSEX HOUSE (HMRC) VICTORIA SOUTHEND AIRPORT LONDON LIVERPOOL STREET
(9 MINS) (59 MINS)
QUEENSWAY
ROAD
A13
WARRIOR
SQUARE
LONDON
FENCHURCH STREET
(59 MINS)
A1160
SHOEBURYNESS
DENCORA (10 MINS)
CHICHESTER COURT
ROAD
HIGH
STREET
P
YORK ROAD
CAR PARK
SOUTHEND
PIER & BEACH
For indicative purposes only.
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
INVESTMENT CONSIDERATIONS
■ Southend on Sea is a major Commercial Centre
and Seaside Town
■ Excellent transport links served by Southend Central
and Southend Victoria Stations which provide
regular services into Central London (Liverpool
Street & Fenchurch Street) & the A127 & A13
■ Prominent location in the heart of the Town Centre
adjacent to Southend Central Station with a
commanding frontage onto the High Street
and a return frontage onto Clifftown Road
■ Landmark unbroken freehold building of
62,906 sq ft arranged as four retail units over
ground and 1st floor and a six storey mixed-use
residential (3rd floor) and office (4th, 5th & 6th
floor) tower called Central House
■ The third floor of Central House was converted
to nine, two bedroom flats in 2018 through
permitted development rights at a cost of
approximately £600,000
■ Large car park to the second floor (64 spaces)
which was resurfaced in 2019 at a cost of
£250,000. The parking ratio is 1:376 sq ft
■ Multi let to 16 tenants with a total Contractual
Income of £766,202 p.a.
■ WAULT of 5.6 years to expiry and 5.3 years to break
■ 84% of the rent received from strong covenants
and a spread of use and income risk between
retail, residential and office uses
■ Asset management opportunities to include agreeing
a surrender with Primark and re-letting 115 High Street
■ The building is outside of the Article 4 Direction,
falls outside of the Clifftown Conservation Area
and is not listed
■ Development potential for conversion of the 1st
PROPOSAL DATAROOM
floor ancillary accommodation above the shops Offers are sought in excess of £7,500,000 (Seven Million For access to the Allsop dataroom
and the 4th, 5th & 6th floor office accommodation please use the following link:
Five Hundred Thousand Pounds) subject to contract and
into residential flats subject to obtaining the https://datarooms.allsop.co.uk/register/
necessary consents and vacant possession on the exclusive of VAT. This represents a net initial yield of 9.65% on the SouthendOnSea
1st floor which is subject to leases contractual income and a low capital value of £119 psf overall.
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
LOCATION
Southend-on-Sea is a popular Essex seaside town located
approximately 39 miles (62 km) east of London, 19 miles
(30 km) south of Chelmsford and 20 miles (32 km) east of
Brentwood. Southend Central provides frequent services
(9 per hour at peak times) to London Fenchurch Street,
A5
with a fastest journey time of approximately 1 hour
A505 Stevenage
A418 Dunstable Luton Stansted Victoria provides regular rail services
whilst Southend Colche
Luton Bishop’s Braintree
A5
Knebworth (6 per hourA120
at peak times) to London Liverpool Street
Stortford
A10 with a fastest journey time of 59 minutes.
A418 A602
A5
Road access to Southend is provided
A131 by the A127 dual
Aylesbury Welwyn Garden carriageway and the A13 which in turn, provides access
A41 City A10
Hertford to Junction 29 of the M25, approximately 20 miles (32 km)
A414
Harlow to the west. London Southend Airport
A130 is located 1.5 miles
A41 Hemel
Hempstead St Albans Hatfield (2.4 km) to the north of the town centre and provides
A4010
M10
regular flights to European destinations.
Chelmsford
A41 A414 Maldon
J21 A1(M) A414
M25
Potters Bar Epping Chipping
J20
J23 Ongar
J19 J25 J27
A404
A4010 M25
Watford A1 Enfield A12
High Rickmansworth M1 M11 A130
A10
M40 Wycombe A355 South Brentwood Billericay
A413
M25 Oxney J28
A129
Wickford
M40 M1
Harefield Harrow
A12
Rayleigh
Walthamstow A127
A127
M40 Ruislip Romford J29 Basildon
A130
A127
A404 J16
A40 Wembely Holloway A12 A176
A13
Benfleet A13
A1159
Uxbridge A40
Stratford
Canvey
SOUTHEND-
LONDON ON-SEA
M25
Slough A13 M25 Island
M4 A13
A13
J15 M4 M4
Windsor Hounslow Grays
M4 M25 Heathrow Clapham A20 Tilbury
Dartford
Staines A316 A2
Gravesend
Ashford J2 A2
J12 M3 A309
A3 Bromley A20
Swanley
A23
J3 Gillingham
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA Southend-on-Sea
SITUATION
The property is situated on a prominent corner over the past five years due to house prices and
position at the junction of Clifftown Road rail fare affordability. Average house prices are K
PRIMAR
and the High Street immediately adjacent approximately £326,000 in Southend compared (NOT IN
OCCUP
ATION)
to Southend Central Station. The property to £514,000 in London. A monthly season ticket
benefits from a commanding frontage onto from Southend Central to London Fenchurch
the pedestrianised High Street, between The Street costs £95.90 whilst Southend Central to ICES
ED OFF
T MANAG RE)
Victoria and The Royal Shopping Centres and a London Zones 1-6 costs £133.30 (with a railcard). INSTAN AS A JOB CENT
IED
(OCCUP
substantial return frontage onto Clifftown Road. Southend welcomes over 6.5 million visitors
Southend Central is adjacent to the subject annually and tourism is one of the main driving
property with direct links to Fenchurch Street. forces behind the town’s economy supporting
Southend Victoria Station is situated to the north in excess of 7,000 jobs and £380m contribution
of the subject property commutable within an to the local economy. The leisure offering is
8 minute walk with direct rail links to London predominantly located along the sea front.
Liverpool Street. Southend has become a Southend Pier is the world’s longest pleasure pier
popular commuter town for London commuters and is at the centre of the Town’s attractions.
© Crown Copyright, ES 100004106. For identification purposes only.
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
HIGH
STREE
T
N ROAD
CLIF TO
Site outline for identification purposes only.
TENURE
Freehold (title number: EX276458) with a site area of 0.64 acres
/ 0.26 hectares with a site cover of approximately 70%
DESCRIPTION 101-115 High Street (Ground and First Floor Storage)
The four ground floor retail units have glazed
The property comprises a landmark building arranged to provide four The property is of concrete frame construction with pre cast externally shop frontages whilst the external windows to the
retail units over ground and 1st floor and a six storey mixed-use residential clad concrete. We can confirm that High Alumina Cement was not used first floor ancillary storage space units are single
(3rd floor) and office (4th, 5th & 6th floor) tower called Central House. A in the construction of this building. A Sandberg report is available for glazed and metal framed. There is a loading
ramp off Clifftown Road links to a first floor loading bay which serves the download in the dataroom. bay / yard which is accessed via the rear of the
retail accommodation and a large second floor car park which serves property, off Clifftown Road which leads directly
The building is not subject to an Article 4 Direction, is not listed and falls
Central House. The building is accessed via a communal entrance off to the first floor storage accommodation for
outside of the Clifftown Conservation Area.
Clifftown Road and the second floor car park which provides 64 part each of the retail units.
covered / part open air car parking spaces. In total 55 car parking spaces Central House (4th, 5th and 6th floor) benefits from: 101-109 High Street (Ground Floor and Part First)
have been allocated to Althea, the office tenant whilst the remaining 9 is occupied and leased by Instant Offices Limited
spaces are allocated for the nine flats. The car park was resurfaced in • Communal reception and a concierge office
which is used as a Job Centre.
2019 at a cost of approximately £250,000. • Two, 10 person passenger lifts and a stairwell serving all floors Paste floorplans of the refurbishment
Central House provides a ground floor reception area with a concierge • Excellent natural light throughout and great views with good visibility (from attached email docs)
office, two lifts and a stairwell which serves all floors. Both lifts were of the Thames Estuary depending on the angle 111 High Street is occupied by Southend Discount
refurbished in 2020 at a cost of approximately £100,000. The third floor • Suspended ceiling with fluorescent tube lighting Gold Ltd – A small jewellers and pawn shop.
is configured as nine two bedroom flats which were converted under Externally the unit benefits from a concrete lower
permitted development rights in 2018 at a cost of approximately £600,000. • Perimeter trunking with under floor trunking level external wall with a glazed frontage above.
The apartments have been arranged to provide kitchen, front room, • Double glazed windows throughout (the windows to the common 113 High Street which is let to Primark Stores Ltd
bathroom and two bedrooms and built to a good specification (fan oven, parts are metal framed single glazed windows) is unoccupied. Internally this unit is similar to unit
extractor fan, induction hob and electric central heating). The 4th, 5th and • Refurbished male and female toilets to each floor 101 – 109 High Street.
6th floors are arranged to provide office accommodation. The common 115 High Street is vacant.
areas of each office floor comprise male and female toilets and access • Gas central heating
to the lifts. There is a plant room on the seventh floor which links to the lift • 55 demised car parking spaces providing a car parking ratio of
engine, flat roof and two telephone masts which are subject to leases. 1:340 sq ft on the office accommodation
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
ACCOMMODATION SCHEDULE
UNIT ADDRESS TENANT FLOOR TOTAL FLOOR LEASE START LEASE BREAK LEASE NEXT REVIEW WAULT WAULT CONTRACTED COMMENTS
AREA (SQ FT) EXPIRY (EXPIRY) (BREAK) RENT P.A
Retail Accommodation
Ground 10,796 7 months’ rent free. Trading as a
101-109 High Street Government Job Centre.
Instant Managed Offices Limited Part First 685 11/01/2021 11/01/2024 10/01/2026 4.71 2.71 £115,000
(Ground & Part First Floor) Tenant only break in 11/01/2024.
Total 11,481 Outside the 1954 L&T Act.
101-109 High Street, On the market to let with
Vacant Part First 9,557
Part First Floor alternative use potential to flats STP.
Ground 990
111 High Street,
Southend Discount Gold Limited First 452 31/07/2015 30/07/2025 31/7/2020 4.26 4.26 £30,000 Rent reviewed 5 yearly.
(Ground & First Floor)
Total 1,442
Ground 9,862
113 High Street, , Rent Reviewed every 21 years.
Primark Stores Limited First 5,328 2/1/1965 31/1/2028 6.77 6.77 £290,000
(Ground & First Floor) Primark are not in occupation.
Total 15,190
Store Room 113 High Street,
Primark Stores Limited Ground 1/1/1971 31/1/2028 6.77 6.77 £100
Southend (Ground Floor)
Ground 653
On the market to let for £30,000 p.a.
115 High Street,
Vacant First 470 0.00 0.00 £0 Particulars are available to
(Ground & First Floor)
download in the dataroom.
Total 1,123
Total NIA 38,793 6.05 5.52 £435,100
Car Park Second 64 car parking spaces (part open air / part covered), 55 spaces have been demised to the Althea (office tenant) & 9 car parking spaces are demised to the nine flats.
Residential Accommodation
Flat 1 Central House Mr M A K & Dr F Bhuiyan 660 25/10/2018 24/10/2019 0.00 £11,700 AST - Holding over
Flat 2 Central House Mr V Pjatrikovs & Mrs Z Subebayeva 550 23/2/2019 22/8/2019 0.00 £9,300 AST - Holding over
Flat 3 Central House Mrs S J & Miss C L Tripp 550 11/5/2020 10/5/2021 0.04 £9,600 AST
Flat 4 Central House Mr L M Sealey & Mr C P Slack 560 26/1/2019 25/1/2020 0.00 £11,100 AST - Holding over
Flat 5 Central House Mr D Gilbert & Miss E J Cooper Third 629 10/8/2020 9/8/2021 0.28 £10,800 AST
Flat 6 Central House Mr K Harland & Mr J Hardwick 580 12/2/2019 11/2/2020 0.00 £9,300 AST - Holding over
Flat 7 Central House Mr L A Torres Mr A F Gomez & Mr J D Moreno Ma 624 22/1/2021 21/1/2022 0.74 £9,900 AST
Flat 8 Central House Mr C Chavernoz & Miss L Krasteff 629 22/10/2019 21/4/2021 0.00 £9,600 AST - Holding over
Flat 9 Central House Mr A L H Lane-Collinge & Ms P R J Simpson 620 2/10/2020 1/10/2021 0.43 £10,200 AST
Total GIA 5,402 0.17 £91,500
Office Accommodation
Fourth 6,237 The 6th floor is presently unused.
Central House - 4th, 5th & 6th Rent reviewed 5 yearly with next
Althea UK and Ireland Limited Fifth 6,237 8/26/2016 8/25/2028 8/26/2021 7.33 7.33 £225,000
Floors & 55 Car Parking Spaces review 26/08/2021. There is a service
Sixth 6,237 charge cap at £153,755 p.a.
Total NIA 18,711 7.33 7.33 £225,000
Other
Telecom Rooftop Site, Telecommunications mast. Rent
EE Ltd & Hutchison 3G UK Ltd. 8/21/2006 8/20/2016 0.00 £14,596
Central House reviewed 3 yearly.
Transformer Chamber,
Eastern Electricity plc. 2/1/1965 1/31/2027 5.77 £5
Central House
Street Lantern, Central House Southend Borough Council. 2/1/1965 £1
0.002 £14,602
Total Floor Area 62,906 WAULT 5.61 5.31 £766,202
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
SERVICE CHARGE INSURANCE
The service charge budget is estimated at There is an insurance shortfall on the vacant
£226,485.88 p.a for 01/01/2021 - 31/12/2021. accommodation which totals £5,173.40 p.a.
There is an anticipated shortfall of £53,000 This includes £2801.16 on the vacant first
p.a. The service charge budget for 2021 floor retail space above 101-109 High Street,
is significantly less than the service charge £440.32 on 115 High Street and £1,901.92
budgets for 2020, 2019 and 2018. The accounts on the nine flats to the 3rd floor of Central
are available to download from the dataroom. House.
ASSET MANAGEMENT / DEVELOPMENT POTENTIAL
The property offers significant asset management and development potential which includes:
• Development potential for conversion of the 1st floor ancillary accommodation above the
shops into six flats and the 4th, 5th & 6th floor office accommodation into 27, two bedroom
flats subject to obtaining the necessary consents and vacant possession of the 1st floor
ancillary accommodation which is subject to leases. There is also potential to add another
floor to the 7th floor subject to obtaining the necessary consents.
• Agreeing a lease surrender with Primark for 113 High Street which is leased to Primark though
unoccupied and re-letting the space.
• Re letting 115 High Street and the part first floor above 101-109 High Street.
• Development potential for part of the first floor accommodation above 101-109 High Street
to residential accommodation subject to obtaining the necessary consents.
• Agreeing a lease surrender with Althea for conversion of the unused 6th floor to residential
through permitted development rights.
CENTRAL HOUSE, 101-115 HIGH STREET, ESSEX, SS1 1AB
SOUTHEND-ON-SEA
OFFICE MARKET COMMENTARY
Southend is Essex’s fourth largest submarket with a total office
stock of approximately 2m sq ft across 224 buildings. The current
office vacancy rate is 2.4% and there is no new office space
under construction and no development pipeline. The largest
office in Southend is Alexander House which totals 224,000 sq ft
which is occupied by HMRC. Other notable occupiers include
RBS, Hood Group and Ventrica. The latter two companies
occupy approximately 30,000 sq ft at Maitland House. The office
leasing market in Southend has been severely impacted by
permitted development, which has reduced the town’s office
space supply considerably which has been supportive of rental
growth over the past few years. As a result, Southend has an
increasingly constrained office supply with a marked absence
of any Grade A office accommodation which improves tenant
retention and the likelihood of future rental growth.
COVENANT ANALYSIS
PRIMARK STORES LIMITED ALTHEA UK AND IRELAND LIMITED INSTANT OFFICES LIMITED
Primark is a major retail group operating out of 384 stores in the Althea UK and Ireland is the leading provider of managed services, Instant Offices is part of The Instant Group. Established in 1999, The
Republic of Ireland, UK, Spain, Portugal, Germany, the Netherlands, multi-vendor maintenance, integrated clinical consumables Instant Group is a workspace innovation company that rethinks
Belgium, Austria, France, Italy, Slovenia, Poland and the US. Primark is management, and equipment sales/rentals for the acute healthcare workspace on behalf of its clients injecting flexibility, reducing cost and
sector. Created from the union of eight leading biomed, endoscopy, driving performance. Instant places more than 11,000 companies a
known for selling clothes at competitive prices. Its success is based on
and diagnostic imaging service companies, Althea employs 2,700 year in flexible workspace such as co-working, serviced or managed
sourcing supply, making clothes with simple designs and fabrics. The
engineers, technicians, and customer service specialists worldwide. offices including Barclays, Prudential, Capita, Jaguar Land Rover, Amex,
brand targets young, fashion-conscious individuals aged below 35, Booking.com and Worldpay and the UK Government. Their services
The group, controlled by Permira Funds, manages more than 1.4 million
offering them simple yet fashionable clothes at discounted prices. include co-working, serviced office brokerage, commercial property
medical devices in over 2,700 healthcare facilities across 17 countries.
consulting and bespoke managed office solutions.
Period ended Period ended Period Ended 9 months ended
14/09/2019 15/09/2018 16/09/2017 31/12/2019 31/12/2018 31/03/2017 31/07/2020 31/07/2019 31/07/2018
Turnover £3,449,257,000 £3,346,702,000 £3,171,714,000 Turnover £98,968,000 £62,220,000 £57,568,000 Turnover £65,171,000 £71,701,000 £67,787,000
Pre Tax Profit £638,072,000 £634,742,000 £587,614,000 Pre Tax Profit £23,485,000 £13,666,000 £10,565,000 Pre Tax Profit £13,875,000 £13,648,000 £11,609,000
Net Assets £1,102,839,000 £841,833,000 £593,050,000 Net Assets £34,741,000 £28,658,000 £17,538,000 Net Assets £38,069,000 £29,760,000 £21,736,000
EPCs
Available upon request.
VAT
The property has been elected for VAT. It is anticipated this
will be treated as a TOGC (Transfer of Going Concern).
ANTI-MONEY-LAUNDERING
A successful bidder will be required to provide information to satisfy
the AML requirements when Head of Terms are agreed.
DATAROOM
For access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/SouthendOnSea
PROPOSAL
Offers are sought in excess of £7,500,000 (Seven Million Five Hundred
Thousand Pounds) subject to contract and exclusive of VAT.
This represents a net initial yield of 9.65% on the contractual income
and a low capital value of £119 psf overall.
For further information or to make arrangements for viewing please contact:
Alex Butler Andrew Wise
07801 219 888 07535 045 149
alex.butler@allsop.co.uk andrew.wise@allsop.co.uk
allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied
on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and
contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of
each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop
is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 05.21You can also read
