chippenham - 10 high street prime retail investment
CHIPPENHAM - 10 HIGH STREET PRIME RETAIL INVESTMENT Sat Nav Ref: SN15 3ER
INVESTMENT SUMMARY • • • • • •
Chippenham is an affluent market town with a strong central shopping area Located in the prime retail pitch Comprises two shop units with self-contained accommodation on the upper floors The retail units are let to Thomas Cook and Boots Opticians on recently renewed leases Potential conversion of the upper floors to residential (subject to consents) Seeking offers in the region of £1,000,000, reflecting a NIY of 6.25% after purchaser’s costs.
2 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
A449 A49
A417
A44
A424
A5
A465 A40
A44
A436 A48
A418
A34
A40
A40 A4042
A41
A417 A41
A449
DEMOGRAPHIC & ECONOMIC PROFILE
A413
A420
A429 A419
A404 A40
London
Chippenham
Bristol
A4
A33 A36 A339
A303
A361 A36 A303
A39
A31
Chippenham has a population of 45,337 (2011 Census) and a retail catchment population of approximately 260,000 people. The population extends to 301,000 people living within a 30 minute drive time and this is forecast to grow by 3.1% over the next five years and 6.2% over the next 10 years. This is largely due to plans to build a further 5,500 new homes in the Chippenham area over this time period.
A34
A350
LOCATION
Chippenham benefits from a very affluent catchment population. The most affluent A and B social groups are significantly over represented, whilst the least affluent D and E social groups are particularly under represented. The affluence of the catchment is further highlighted by the fact that the population has a higher than average percentage of home and car ownership.
Chippenham is an historic market town and the third largest centre in Wiltshire. It is located 13 miles east of Bath, 22 miles east of Bristol, 20 miles west of Swindon and 101 miles west of London.
Total employment in the town has increased at a faster rate than the PROMIS average and the unemployment count in March 2017 was 0.6%, compared with a UK average of 1.3%.
A303 A36
A23
Chippenham is located on the M4 motorway and the town centre is 3 miles south of Junction 17. The town centre is also 1 mile east of the junction of the A350 and A4 trunk roads, which run north/south and east/west of the town respectively. Chippenham benefits from being on the main railway line between London Paddington and the West Country. The journey time to London is approximately 1 hour 15 minutes. The combination of the accessibility to London and the quality of life in the area has proved very attractive and over the past decade or so Chippenham has increasing become a commuter town. The train service will be further improved following the electrification of the mainline, which is scheduled for completion in 2018. This will increase the frequency of trains to London and also reduce the journey time by around 10 minutes. The rapidly expanding Bristol Airport is located 30 miles to the south west of Chippenham and this provides a large number of European and worldwide flights.
3 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
RETAILING IN CHIPPENHAM Chippenham’s central shopping area is very compact and comprises approximately 500,000 sq ft of retail floor space, which is centred on the pedestrianised High Street flanked by two shopping centres, Emery Gate and Borough Parade. The number of vacant shops in the town is very low. Chippenham’s retail core benefits from a lack of immediate competition with, Swindon, Bath and Bristol all at least a half an hour drive away. The town’s retail catchment extends towards Tetbury and Malmesbury to the north, Royal Wootton Bassett to the west, Devizes to the south and Bath to the east. This is an affluent, rural hinterland which comprises many small towns and villages which are home to commuters for the bigger centres such as London, Bristol and Bath. Major retailers represented in Chippenham include:
High Street hosts a popular weekly market every Friday and Saturday which sells a range of locally produced food and other goods.
4 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
SITUATION The subject property is located in the 100% retail pitch on High Street, adjacent to Boots and The Works. Other nearby retailers include:
DESCRIPTION The property is of traditional construction with loadbearing rendered walls and a pitched tiled roof.
ACCOMMODATION The property comprises the following approximate net internal floor areas: 10A High Street - Thomas Cook Ground Floor Sales
788 sq ft
Ground Floor ITZA
427sq ft
TOTAL
788 sq ft
10B – Boots Opticians Ground Floor Sales
726 sq ft
Ground Floor ITZA
447 units
First Floor Ancillary TOTAL
26 sq ft 752 sq ft
10C High Street - The High Street Dental Practice First Floor Second Floor* TOTAL
1,095 sq ft 302 sq ft 1,397 sq ft
*Floor to ceiling height of 1.98m
5 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
TENURE Freehold
TENANCIES 10A High Street - Is let to TCCT Retail Limited (trading as Thomas Cook) on a five year, effective FRI lease which commenced on 30 December 2016. The current rent is £27,000 per annum. The lease is subject to a tenant’s break option on 30 November 2019, which is subject to six months notice and the payment a penalty equivalent to three months rent. 10B High Street - Is let to Boots Opticians Professional Services Limited, on a five year, effective FRI lease, which commenced on 1 June 2017. The current rent is £28,000 per annum. The tenant has the use of one car parking space at the rear of the property. 10C High Street - The part ground, first and second floors are let to Messrs Christopher Sydney Lambert-Rose and Sandra Laurinda Watt (trading as The High Street Dental Practice), on a 25 year, effective FRI lease. This commenced on 18 May 2012 and is subject to five yearly, upwards only rent reviews and also tenant’s break options every five years. The current rent is £11,250 per annum. The tenant has the right to park one vehicle at the rear of the property The total current income is £66,250 pa.
RENTAL ANALYSIS We calculate that the rents on the shops both equate to £62 Zone A. This was set at the recent lease renewals and is in line with the current rental tone. At the peak of the economic cycle in 2007, rents on High Street reached £80 Zone A. They quickly recovered and in the past few years there has been evidence of rental growth due to the lack of available units and the strength of tenant demand. The rent on the upper floors equates to just £8 psf.
6 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
Two shop units with self-contained accommodation on the upper floors
COVENANT INFORMATION TCCT Retail Limited - Thomas Cook was established in 1841 and is one of the best known travel agents in the world with annual sales of £7.8 billion and 19 million customers each year. The company operates from 16 countries. TCCT Retail Limited has an ICC Rating of 45 and in the past three years has reported the following figures in their annual accounts:
Turnover
30/09/2016 (£’000s)
30/09/2015 (£’000s)
30/09/2014 (£’000s)
282,311
310,903
317,059
Pre Tax Profit
-202,058
-13,179
24,919
Shareholders' Funds
-450,342
-219,763
-200,633
Boots Opticians Professional Services Limited is part of the Boots Company. This was founded in 1849 and since 2014 has been a subsidiary of Walgreens Boots Alliance Inc, which is the largest drug store chain in the United States. Boots themselves are the largest drug store chain in the United Kingdom. Boots Opticians Professional Services Limited has an ICC Rating of 69 and in the past three years has reported the following figures in their annual accounts:
Turnover Pre Tax Profit Shareholders' Funds
31/08/2016 (£’000s)
31/08/2015 (£’000s)
31/08/2014 (£’000s)
278,106
391,067
252,820
21,073
39,176
24,727
132,241
130,245
112,166
Whilst we do not have any financial information on the dental practice, we understand that the accommodation has been used as a dentist for at least 30 years.
7 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
For indicative purposes only. Title plan available upon request.
PROPOSAL 50 metres
EPC
As this building is Listed EPCs are not required. We areCopyright instructed seek offers Experian, in the region andtoconfidentiality 2017. © Crown copyright and of £1,000,000 (One2017. Million subject database rights OSPounds) 100019885 to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level would reflect a net initial yield of 6.25% The property has been elected for VAT purposes. It after purchaser’s costs at 5.75%. is anticipated that the sale be treated as a Transfer
VAT
Experian Goad Plan Created: 02/10/2017 Created By: Fawcettmead
FURTHER INFORMATION
more information on our products and services For further information For or to arrange an inspection, please contact the sole agent: www.experian.co.uk/goad | [email protected] | 0845 601 6011 Richard Bashford 020 7182 7497 07774 619 204 [email protected]
Craig Cawthorne 020 7182 7498 078111 41407 [email protected]
Of a Going Concern (TOGC). Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 SUBJECT TO CONTRACT
INVESTMENT SUMMARY • • • • • •
Chippenham is an affluent market town with a strong central shopping area Located in the prime retail pitch Comprises two shop units with self-contained accommodation on the upper floors The retail units are let to Thomas Cook and Boots Opticians on recently renewed leases Potential conversion of the upper floors to residential (subject to consents) Seeking offers in the region of £1,000,000, reflecting a NIY of 6.25% after purchaser’s costs.
2 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
A449 A49
A417
A44
A424
A5
A465 A40
A44
A436 A48
A418
A34
A40
A40 A4042
A41
A417 A41
A449
DEMOGRAPHIC & ECONOMIC PROFILE
A413
A420
A429 A419
A404 A40
London
Chippenham
Bristol
A4
A33 A36 A339
A303
A361 A36 A303
A39
A31
Chippenham has a population of 45,337 (2011 Census) and a retail catchment population of approximately 260,000 people. The population extends to 301,000 people living within a 30 minute drive time and this is forecast to grow by 3.1% over the next five years and 6.2% over the next 10 years. This is largely due to plans to build a further 5,500 new homes in the Chippenham area over this time period.
A34
A350
LOCATION
Chippenham benefits from a very affluent catchment population. The most affluent A and B social groups are significantly over represented, whilst the least affluent D and E social groups are particularly under represented. The affluence of the catchment is further highlighted by the fact that the population has a higher than average percentage of home and car ownership.
Chippenham is an historic market town and the third largest centre in Wiltshire. It is located 13 miles east of Bath, 22 miles east of Bristol, 20 miles west of Swindon and 101 miles west of London.
Total employment in the town has increased at a faster rate than the PROMIS average and the unemployment count in March 2017 was 0.6%, compared with a UK average of 1.3%.
A303 A36
A23
Chippenham is located on the M4 motorway and the town centre is 3 miles south of Junction 17. The town centre is also 1 mile east of the junction of the A350 and A4 trunk roads, which run north/south and east/west of the town respectively. Chippenham benefits from being on the main railway line between London Paddington and the West Country. The journey time to London is approximately 1 hour 15 minutes. The combination of the accessibility to London and the quality of life in the area has proved very attractive and over the past decade or so Chippenham has increasing become a commuter town. The train service will be further improved following the electrification of the mainline, which is scheduled for completion in 2018. This will increase the frequency of trains to London and also reduce the journey time by around 10 minutes. The rapidly expanding Bristol Airport is located 30 miles to the south west of Chippenham and this provides a large number of European and worldwide flights.
3 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
RETAILING IN CHIPPENHAM Chippenham’s central shopping area is very compact and comprises approximately 500,000 sq ft of retail floor space, which is centred on the pedestrianised High Street flanked by two shopping centres, Emery Gate and Borough Parade. The number of vacant shops in the town is very low. Chippenham’s retail core benefits from a lack of immediate competition with, Swindon, Bath and Bristol all at least a half an hour drive away. The town’s retail catchment extends towards Tetbury and Malmesbury to the north, Royal Wootton Bassett to the west, Devizes to the south and Bath to the east. This is an affluent, rural hinterland which comprises many small towns and villages which are home to commuters for the bigger centres such as London, Bristol and Bath. Major retailers represented in Chippenham include:
High Street hosts a popular weekly market every Friday and Saturday which sells a range of locally produced food and other goods.
4 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
SITUATION The subject property is located in the 100% retail pitch on High Street, adjacent to Boots and The Works. Other nearby retailers include:
DESCRIPTION The property is of traditional construction with loadbearing rendered walls and a pitched tiled roof.
ACCOMMODATION The property comprises the following approximate net internal floor areas: 10A High Street - Thomas Cook Ground Floor Sales
788 sq ft
Ground Floor ITZA
427sq ft
TOTAL
788 sq ft
10B – Boots Opticians Ground Floor Sales
726 sq ft
Ground Floor ITZA
447 units
First Floor Ancillary TOTAL
26 sq ft 752 sq ft
10C High Street - The High Street Dental Practice First Floor Second Floor* TOTAL
1,095 sq ft 302 sq ft 1,397 sq ft
*Floor to ceiling height of 1.98m
5 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
TENURE Freehold
TENANCIES 10A High Street - Is let to TCCT Retail Limited (trading as Thomas Cook) on a five year, effective FRI lease which commenced on 30 December 2016. The current rent is £27,000 per annum. The lease is subject to a tenant’s break option on 30 November 2019, which is subject to six months notice and the payment a penalty equivalent to three months rent. 10B High Street - Is let to Boots Opticians Professional Services Limited, on a five year, effective FRI lease, which commenced on 1 June 2017. The current rent is £28,000 per annum. The tenant has the use of one car parking space at the rear of the property. 10C High Street - The part ground, first and second floors are let to Messrs Christopher Sydney Lambert-Rose and Sandra Laurinda Watt (trading as The High Street Dental Practice), on a 25 year, effective FRI lease. This commenced on 18 May 2012 and is subject to five yearly, upwards only rent reviews and also tenant’s break options every five years. The current rent is £11,250 per annum. The tenant has the right to park one vehicle at the rear of the property The total current income is £66,250 pa.
RENTAL ANALYSIS We calculate that the rents on the shops both equate to £62 Zone A. This was set at the recent lease renewals and is in line with the current rental tone. At the peak of the economic cycle in 2007, rents on High Street reached £80 Zone A. They quickly recovered and in the past few years there has been evidence of rental growth due to the lack of available units and the strength of tenant demand. The rent on the upper floors equates to just £8 psf.
6 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
Two shop units with self-contained accommodation on the upper floors
COVENANT INFORMATION TCCT Retail Limited - Thomas Cook was established in 1841 and is one of the best known travel agents in the world with annual sales of £7.8 billion and 19 million customers each year. The company operates from 16 countries. TCCT Retail Limited has an ICC Rating of 45 and in the past three years has reported the following figures in their annual accounts:
Turnover
30/09/2016 (£’000s)
30/09/2015 (£’000s)
30/09/2014 (£’000s)
282,311
310,903
317,059
Pre Tax Profit
-202,058
-13,179
24,919
Shareholders' Funds
-450,342
-219,763
-200,633
Boots Opticians Professional Services Limited is part of the Boots Company. This was founded in 1849 and since 2014 has been a subsidiary of Walgreens Boots Alliance Inc, which is the largest drug store chain in the United States. Boots themselves are the largest drug store chain in the United Kingdom. Boots Opticians Professional Services Limited has an ICC Rating of 69 and in the past three years has reported the following figures in their annual accounts:
Turnover Pre Tax Profit Shareholders' Funds
31/08/2016 (£’000s)
31/08/2015 (£’000s)
31/08/2014 (£’000s)
278,106
391,067
252,820
21,073
39,176
24,727
132,241
130,245
112,166
Whilst we do not have any financial information on the dental practice, we understand that the accommodation has been used as a dentist for at least 30 years.
7 | Fawcett Mead Chippenham - 10 High Street
Retail property expertise
For indicative purposes only. Title plan available upon request.
PROPOSAL 50 metres
EPC
As this building is Listed EPCs are not required. We areCopyright instructed seek offers Experian, in the region andtoconfidentiality 2017. © Crown copyright and of £1,000,000 (One2017. Million subject database rights OSPounds) 100019885 to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level would reflect a net initial yield of 6.25% The property has been elected for VAT purposes. It after purchaser’s costs at 5.75%. is anticipated that the sale be treated as a Transfer
VAT
Experian Goad Plan Created: 02/10/2017 Created By: Fawcettmead
FURTHER INFORMATION
more information on our products and services For further information For or to arrange an inspection, please contact the sole agent: www.experian.co.uk/goad | [email protected] | 0845 601 6011 Richard Bashford 020 7182 7497 07774 619 204 [email protected]
Craig Cawthorne 020 7182 7498 078111 41407 [email protected]
Of a Going Concern (TOGC). Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 SUBJECT TO CONTRACT
