16 east street, southampton high-yielding investment ... - Realla
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16 EAST STREET, SOUTHAMPTON HIGH-YIELDING INVESTMENT OPPORTUNITY IN TOP 25 UK CITY
INVESTMENT SUMMARY • Southampton is one of the largest cities in the south east and is among the UK’s top 25 cities • Situated in a strong retail pitch on the northern side of East Street • Currently let to New Age Vapes Ltd on a new 5 year lease • Long leasehold, expiring December 2054 Annual income: Price: Net Initial Yield:
2 | Fawcett Mead Southampton – 16 East Street
£22,000 per annum £200,000 10.75%
Retail property expertise
A404
A127 A406
A40
London
A13
LOCATION
A4
A2
Southampton is a prosperous south coast city located within the county of Hampshire and is one of the principal commercial and retail centres of the UK.
A33
A339
A21
A303
A22
A31 A34
A23 A272
A26
A272
A3
Southampton A26
Southampton benefits from excellent communications by road, given the city is situated at the junction of the M3 and M27 motorways. The M3 provides access to London to the North, whilst the M27 provides access to Portsmouth to the East and Bournemouth to the West. Southampton Central is a key railway station, providing approximately 96 daily direct rail services to London Waterloo, with a fastest journey time of 1 hour 20 minutes. Southampton International Airport is located only 7 miles north of the city centre. The airport provides flights to over 40 European destinations and benefits from approximately 1.8 million passengers a year – this figure is predicted to rise to 6 million by 2030. Southampton is considered one of the UK’s busiest passenger and freight ports. The port handles in excess of 42 million tonnes of cargo annually, accounting for approximately 7% of the UK’s annual seaborne trade.
DEMOGRAPHICS Southampton benefits from a highly affluent and youthful population. The total population within the Southampton primary catchment area is 733,000, above the Regional Centre average and ranking the city 18 out of the PROMIS centres. The estimated shopping population of the city is 433,000, ranking Southampton 16 out of the PROMIS centres on this measure (Source: Promis). The city is home to two major universities: The University of Southampton and Southampton Solent. Together, these universities have a student population of around 40,000. Tourism provides a major boost to the local economy, with around 1 million passengers travelling through the port and 1.8 million through the airport annually.
3 | Fawcett Mead Southampton – 16 East Street
Retail property expertise
RETAILING IN SOUTHAMPTON Southampton provides approximately 2.18 million sq ft of retail accommodation. This ranks the city 12 of the PROMIS centres by this measure. The city has a relatively compact retail core, with the central shopping area focused around Above Bar Street and High Street. The city’s two main shopping centres, West Quay and The Marlands, lie on the west side of Above Bar Street. West Quay is the city’s dominant shopping centre. The scheme, which was opened in 2000, comprises 1.02 million sq ft in premier retail accommodation. The scheme received a boost in 2016 with the development of the new leisure extension, West Quay South, which created a new leisure destination comprising a Showcase Cinema-de-Lux, a Hollywood Bowl and over 20 new restaurants. The scheme is anchored by John Lewis and M&S and benefits from an annual footfall of 16 million.
4 | Fawcett Mead Southampton – 16 East Street
The Marlands is a 250,000 sq ft shopping centre situated north of West Quay shopping centre. The centre is host to a number of value retailers, including Peacocks, Poundworld, Poundland and Savers, as well as a 500 seat Global Buffet which opened on the upper floor in 2015. East Street is a popular secondary retailing pitch, which run eastwards from High Street. The street provides a number of speciality stores as well as several national multiple traders, including:
Retail property expertise
SITUATION The property is situated in a central location on the northern side of East Street. The property benefits from excellent footfall being located in the dominant route between High Street and Queensway, which is home to Debenhams department store. There are a number of high profile residential developments to the east of the subject property, which will further improve the footfall through this arterial thoroughfare.
DESCRIPTION The property comprises a tradition two storey building with a fully glazed frontage, beneath brick elevations at first floor level. The ground floor sales area provides well configured retail accommodation, whilst the first floor offers storage provision.
ACCOMMODATION Fawcett Mead have not measured the subject property, but the vendor provides the following approximate Net Internal Areas: Use Ground Foor
Sales
ITZA First Floor
sq ft 1,440 684 units
Storage
Total
5 | Fawcett Mead Southampton – 16 East Street
440 1,880
Retail property expertise
TENURE Long Leasehold expiring in December 2054 at a peppercorn rent.
TENANCY The property is let in its entirety to New Age Vapes Ltd for a term of 5 years from 22nd June 2015 and expiring 21st June 2020, at a rent of £22,000 per annum. There is a Tenant’s option to break dated 21st June 2018.
COVENANT INFORMATION There is no financial documentation regarding New Age Vapes Ltd in the public sphere, to our knowledge.
6 | Fawcett Mead Southampton – 16 East Street
Retail property expertise
www.experian.c
For indicative purposes only. Title plan available upon request.
EPC An Energy Performance Certificate is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL We have been instructed to seek offers in excess of £200,000 (Two hundred thousand pounds) subject to contract and exclusive of VAT, for our client’s leasehold interest. A purchase at this level reflects a net initial yield of 10.75% after purchase’s cost of 2.30%.
VACANT
yright and confidentiality Experian, 2017. © Crown copyright and database s 2017. OS 100019885
50 metres
FURTHER INFORMATION Jonathan Mills 020 7182 7483 | 07795 333 195 [email protected] Joe Baio 020 7182 7489 | 07515 889 649 [email protected] Thomas Heptonstall 020 7182 7484 | 07714 255 245 [email protected] Philip Parsons 020 7543 6891 [email protected] Tom Hanson 020 7543 6807 [email protected]
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
16 EAST STREET, SOUTHAMPTON HIGH-YIELDING INVESTMENT OPPORTUNITY IN TOP 25 UK CITY
INVESTMENT SUMMARY • Southampton is one of the largest cities in the south east and is among the UK’s top 25 cities • Situated in a strong retail pitch on the northern side of East Street • Currently let to New Age Vapes Ltd on a new 5 year lease • Long leasehold, expiring December 2054 Annual income: Price: Net Initial Yield:
2 | Fawcett Mead Southampton – 16 East Street
£22,000 per annum £200,000 10.75%
Retail property expertise
A404
A127 A406
A40
London
A13
LOCATION
A4
A2
Southampton is a prosperous south coast city located within the county of Hampshire and is one of the principal commercial and retail centres of the UK.
A33
A339
A21
A303
A22
A31 A34
A23 A272
A26
A272
A3
Southampton A26
Southampton benefits from excellent communications by road, given the city is situated at the junction of the M3 and M27 motorways. The M3 provides access to London to the North, whilst the M27 provides access to Portsmouth to the East and Bournemouth to the West. Southampton Central is a key railway station, providing approximately 96 daily direct rail services to London Waterloo, with a fastest journey time of 1 hour 20 minutes. Southampton International Airport is located only 7 miles north of the city centre. The airport provides flights to over 40 European destinations and benefits from approximately 1.8 million passengers a year – this figure is predicted to rise to 6 million by 2030. Southampton is considered one of the UK’s busiest passenger and freight ports. The port handles in excess of 42 million tonnes of cargo annually, accounting for approximately 7% of the UK’s annual seaborne trade.
DEMOGRAPHICS Southampton benefits from a highly affluent and youthful population. The total population within the Southampton primary catchment area is 733,000, above the Regional Centre average and ranking the city 18 out of the PROMIS centres. The estimated shopping population of the city is 433,000, ranking Southampton 16 out of the PROMIS centres on this measure (Source: Promis). The city is home to two major universities: The University of Southampton and Southampton Solent. Together, these universities have a student population of around 40,000. Tourism provides a major boost to the local economy, with around 1 million passengers travelling through the port and 1.8 million through the airport annually.
3 | Fawcett Mead Southampton – 16 East Street
Retail property expertise
RETAILING IN SOUTHAMPTON Southampton provides approximately 2.18 million sq ft of retail accommodation. This ranks the city 12 of the PROMIS centres by this measure. The city has a relatively compact retail core, with the central shopping area focused around Above Bar Street and High Street. The city’s two main shopping centres, West Quay and The Marlands, lie on the west side of Above Bar Street. West Quay is the city’s dominant shopping centre. The scheme, which was opened in 2000, comprises 1.02 million sq ft in premier retail accommodation. The scheme received a boost in 2016 with the development of the new leisure extension, West Quay South, which created a new leisure destination comprising a Showcase Cinema-de-Lux, a Hollywood Bowl and over 20 new restaurants. The scheme is anchored by John Lewis and M&S and benefits from an annual footfall of 16 million.
4 | Fawcett Mead Southampton – 16 East Street
The Marlands is a 250,000 sq ft shopping centre situated north of West Quay shopping centre. The centre is host to a number of value retailers, including Peacocks, Poundworld, Poundland and Savers, as well as a 500 seat Global Buffet which opened on the upper floor in 2015. East Street is a popular secondary retailing pitch, which run eastwards from High Street. The street provides a number of speciality stores as well as several national multiple traders, including:
Retail property expertise
SITUATION The property is situated in a central location on the northern side of East Street. The property benefits from excellent footfall being located in the dominant route between High Street and Queensway, which is home to Debenhams department store. There are a number of high profile residential developments to the east of the subject property, which will further improve the footfall through this arterial thoroughfare.
DESCRIPTION The property comprises a tradition two storey building with a fully glazed frontage, beneath brick elevations at first floor level. The ground floor sales area provides well configured retail accommodation, whilst the first floor offers storage provision.
ACCOMMODATION Fawcett Mead have not measured the subject property, but the vendor provides the following approximate Net Internal Areas: Use Ground Foor
Sales
ITZA First Floor
sq ft 1,440 684 units
Storage
Total
5 | Fawcett Mead Southampton – 16 East Street
440 1,880
Retail property expertise
TENURE Long Leasehold expiring in December 2054 at a peppercorn rent.
TENANCY The property is let in its entirety to New Age Vapes Ltd for a term of 5 years from 22nd June 2015 and expiring 21st June 2020, at a rent of £22,000 per annum. There is a Tenant’s option to break dated 21st June 2018.
COVENANT INFORMATION There is no financial documentation regarding New Age Vapes Ltd in the public sphere, to our knowledge.
6 | Fawcett Mead Southampton – 16 East Street
Retail property expertise
www.experian.c
For indicative purposes only. Title plan available upon request.
EPC An Energy Performance Certificate is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL We have been instructed to seek offers in excess of £200,000 (Two hundred thousand pounds) subject to contract and exclusive of VAT, for our client’s leasehold interest. A purchase at this level reflects a net initial yield of 10.75% after purchase’s cost of 2.30%.
VACANT
yright and confidentiality Experian, 2017. © Crown copyright and database s 2017. OS 100019885
50 metres
FURTHER INFORMATION Jonathan Mills 020 7182 7483 | 07795 333 195 [email protected] Joe Baio 020 7182 7489 | 07515 889 649 [email protected] Thomas Heptonstall 020 7182 7484 | 07714 255 245 [email protected] Philip Parsons 020 7543 6891 [email protected] Tom Hanson 020 7543 6807 [email protected]
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
