harlow â 32 broadwalk
HARLOW – 32 BROADWALK 100% PRIME RETAIL INVESTMENT LET TO WH SMITH ON A NEW FIVE YEAR LEASE
Sat Nav Ref: CM20 1JD
INVESTMENT SUMMARY • Harlow is an affluent town situated in west Essex, only 20 miles north east of Central London • The town is the dominant retail centre within its core catchment, and therefore benefits from excellent shopper retention • The property is situated on Broadwalk, within the town’s prime pedestrianised retailing pitch • Occupiers in the immediate vicinity to the subject property include:
• The property is let to WH Smith Retail Holdings Ltd on a new five year FRI lease expiring in August 2022 • Excellent potential for future rental growth • The tenant is one of the most recognised brands on the high street, and displays a CreditSafe rating of A-75, indicating ‘Very Low Risk’ with a 0.1% chance of default • Freehold Total Current Income: £100,750 per annum Price: £1,295,000 Attractive Net Initial Yield: 7.35%
2 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
A10
A120
A120
A120
A602 A12
A10
Harlow
Harlow, located in west Essex, was elected a New Town in 1947, and is now considered one of the foremost satellite growth centres outside of Central London. The town is strategically located 16 miles west of Chelmsford City Centre and 20 miles north of Central London.
A12
A414 A414
LOCATION
A414
A130 A12
Harlow benefits from excellent road connections being situated immediately west of the M11 Motorway, which provides direct access into Central London. Furthermore, the M25 Motorway is located to the south of the town.
A10 A12
A12 A127
A503
A406
A127
A12
A1
A40 A40
LONDON
A13
A13
A13 A102
A4
A282
A205 A214
Harlow Town Train Station facilitates regular services into London Liverpool Street in a fastest journey time of 30 minutes, Cambridge in 45 minutes and Stansted Airport in 20 minutes. Stansted International Airport lies within 10 miles of Harlow Town Centre. There are regular services via Harlow Town Train Station.
DEMOGRAPHICS The total population within the Harlow primary catchment area is 275,000, with approximately 163,000 people who consider the town as their main shopping destination, placing Harlow above the Promis Centre Average for this measure (source: Promis). Harlow displays a young and affluent population of upwardly mobile professionals. Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are in excess of the Promis average (source: Promis). Harlow is considered the dominant retail centre within its core catchment, attracting an impressive 60.6% market share.
3 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
RETAILING IN HARLOW Town centre retail floorspace in Harlow is estimated at 880,000 sq ft, which compares with the Promis average on this measure. Prime retailing in Harlow is centred around the pedestrianised Broadwalk, where retailers such as Primark, McDonald’s, Starbucks, Boots, Costa and Body Shop have representation. There are two managed shopping centres in the town, The Harvey Centre and Water Gardens Shopping Centre.
4 | Fawcett Mead Harlow – 32 Broadwalk
The Harvey Shopping Centre is the foremost scheme within the town and hosts national retailers including Primark, Tesco, HMV, Argos and Wilko. The scheme, which is owned by Addington Capital and AEW, benefits from an annual footfall of circa 10.6 million. Water Gardens Shopping Centre is situated on the southern edge of Broadwalk and comprises 365,000 sq ft in modern retail accommodation. The scheme is host to Topshop, TK Maxx, River Island and Next. The Standard Life owned scheme compliments the town centre with provision of 1,200 car parking spaces.
Retail property expertise
SITUATION The subject property is situated in a prime location on the western side of the pedestrianised Broadwalk, between two entrances to the Harvey Shopping Centre in the heart of Harlow’s principal retail pitch. The unit is located strategically between and
DESCRIPTION The subject property provides well configured retail accommodation at ground floor with ancillary accommodation at first floor level. The property is serviced via the loading level at the second floor, with an internal goods lift.
ACCOMMODATION The property comprises the following net internal areas: Floor Ground
Use
sq ft
Sales
7,601
ITZA
sq m 706.20 1,903 units
Ancillary
1,683
156.40
First
Storage
3,083
286.40
Second
Loading
179
16.60
12,546
1,165.60
We have relied upon third party areas.
5 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
TENURE Freehold
TENANCY The property is let to WH Smith Retail Holdings Limited (company number: 471941) on a Full Repairing and Insuring lease for a term of five years, commencing on 18th August 2017 and expiring on 17th August 2022. The current passing rent is £100,750 per annum.
COVENANT INFORMATION WH Smith was founded in 1792 and today is one of the most recognised brands on the high street. The retailer traders from over 1,300 stores across the UK, and these stores service over 240 million customers each year. It is estimated that each year, 73% of the UK population visit a WH Smith store (source: WH Smith). WH Smith Retail Holdings Limited publicised the following figures in their most recent annual accounts: 31/08/2016
31/08/2015
31/08/2014
Turnover
£175,131,000
£169,626,000
£164,447,000
Pre Tax Profit
£75,302,000
£62,066,000
£105,938,000
£461,234,000
£470,827,000
£466,645,000
Net Worth
RENTAL ANALYSIS We devalue the rent to reflect approximately £45.76 Zone A. We are aware of recent rental evidence that suggests there is excellent potential for future rental growth. Further information available upon request.
6 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
EPC The property displays an EPC rating of C-69. Further information available upon request.
VAT
U
PO
ER
CH
RET
ST ND
The property has been elected for VAT purposes. It is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC).
PROPOSAL
U
R
FFE
RO
E ND
Offers sought in excess of £1,295,000 (One Million Two Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT. Assuming standard purchasers costs of 5.99%, a purchase at this level would reflect a net initial yield of 7.35%.
FURTHER INFORMATION Graham Fawcett 020 7182 7482 07980 548 852 [email protected] Joe Baio 020 7182 7489 07515 889 649 [email protected]
For indicative purposes only. Title plan available upon request.
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
Sat Nav Ref: CM20 1JD
INVESTMENT SUMMARY • Harlow is an affluent town situated in west Essex, only 20 miles north east of Central London • The town is the dominant retail centre within its core catchment, and therefore benefits from excellent shopper retention • The property is situated on Broadwalk, within the town’s prime pedestrianised retailing pitch • Occupiers in the immediate vicinity to the subject property include:
• The property is let to WH Smith Retail Holdings Ltd on a new five year FRI lease expiring in August 2022 • Excellent potential for future rental growth • The tenant is one of the most recognised brands on the high street, and displays a CreditSafe rating of A-75, indicating ‘Very Low Risk’ with a 0.1% chance of default • Freehold Total Current Income: £100,750 per annum Price: £1,295,000 Attractive Net Initial Yield: 7.35%
2 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
A10
A120
A120
A120
A602 A12
A10
Harlow
Harlow, located in west Essex, was elected a New Town in 1947, and is now considered one of the foremost satellite growth centres outside of Central London. The town is strategically located 16 miles west of Chelmsford City Centre and 20 miles north of Central London.
A12
A414 A414
LOCATION
A414
A130 A12
Harlow benefits from excellent road connections being situated immediately west of the M11 Motorway, which provides direct access into Central London. Furthermore, the M25 Motorway is located to the south of the town.
A10 A12
A12 A127
A503
A406
A127
A12
A1
A40 A40
LONDON
A13
A13
A13 A102
A4
A282
A205 A214
Harlow Town Train Station facilitates regular services into London Liverpool Street in a fastest journey time of 30 minutes, Cambridge in 45 minutes and Stansted Airport in 20 minutes. Stansted International Airport lies within 10 miles of Harlow Town Centre. There are regular services via Harlow Town Train Station.
DEMOGRAPHICS The total population within the Harlow primary catchment area is 275,000, with approximately 163,000 people who consider the town as their main shopping destination, placing Harlow above the Promis Centre Average for this measure (source: Promis). Harlow displays a young and affluent population of upwardly mobile professionals. Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are in excess of the Promis average (source: Promis). Harlow is considered the dominant retail centre within its core catchment, attracting an impressive 60.6% market share.
3 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
RETAILING IN HARLOW Town centre retail floorspace in Harlow is estimated at 880,000 sq ft, which compares with the Promis average on this measure. Prime retailing in Harlow is centred around the pedestrianised Broadwalk, where retailers such as Primark, McDonald’s, Starbucks, Boots, Costa and Body Shop have representation. There are two managed shopping centres in the town, The Harvey Centre and Water Gardens Shopping Centre.
4 | Fawcett Mead Harlow – 32 Broadwalk
The Harvey Shopping Centre is the foremost scheme within the town and hosts national retailers including Primark, Tesco, HMV, Argos and Wilko. The scheme, which is owned by Addington Capital and AEW, benefits from an annual footfall of circa 10.6 million. Water Gardens Shopping Centre is situated on the southern edge of Broadwalk and comprises 365,000 sq ft in modern retail accommodation. The scheme is host to Topshop, TK Maxx, River Island and Next. The Standard Life owned scheme compliments the town centre with provision of 1,200 car parking spaces.
Retail property expertise
SITUATION The subject property is situated in a prime location on the western side of the pedestrianised Broadwalk, between two entrances to the Harvey Shopping Centre in the heart of Harlow’s principal retail pitch. The unit is located strategically between and
DESCRIPTION The subject property provides well configured retail accommodation at ground floor with ancillary accommodation at first floor level. The property is serviced via the loading level at the second floor, with an internal goods lift.
ACCOMMODATION The property comprises the following net internal areas: Floor Ground
Use
sq ft
Sales
7,601
ITZA
sq m 706.20 1,903 units
Ancillary
1,683
156.40
First
Storage
3,083
286.40
Second
Loading
179
16.60
12,546
1,165.60
We have relied upon third party areas.
5 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
TENURE Freehold
TENANCY The property is let to WH Smith Retail Holdings Limited (company number: 471941) on a Full Repairing and Insuring lease for a term of five years, commencing on 18th August 2017 and expiring on 17th August 2022. The current passing rent is £100,750 per annum.
COVENANT INFORMATION WH Smith was founded in 1792 and today is one of the most recognised brands on the high street. The retailer traders from over 1,300 stores across the UK, and these stores service over 240 million customers each year. It is estimated that each year, 73% of the UK population visit a WH Smith store (source: WH Smith). WH Smith Retail Holdings Limited publicised the following figures in their most recent annual accounts: 31/08/2016
31/08/2015
31/08/2014
Turnover
£175,131,000
£169,626,000
£164,447,000
Pre Tax Profit
£75,302,000
£62,066,000
£105,938,000
£461,234,000
£470,827,000
£466,645,000
Net Worth
RENTAL ANALYSIS We devalue the rent to reflect approximately £45.76 Zone A. We are aware of recent rental evidence that suggests there is excellent potential for future rental growth. Further information available upon request.
6 | Fawcett Mead Harlow – 32 Broadwalk
Retail property expertise
EPC The property displays an EPC rating of C-69. Further information available upon request.
VAT
U
PO
ER
CH
RET
ST ND
The property has been elected for VAT purposes. It is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC).
PROPOSAL
U
R
FFE
RO
E ND
Offers sought in excess of £1,295,000 (One Million Two Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT. Assuming standard purchasers costs of 5.99%, a purchase at this level would reflect a net initial yield of 7.35%.
FURTHER INFORMATION Graham Fawcett 020 7182 7482 07980 548 852 [email protected] Joe Baio 020 7182 7489 07515 889 649 [email protected]
For indicative purposes only. Title plan available upon request.
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
