13 north street chichester PO19 1LB - Green & Partners

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13 north street chichester PO19 1LB Investment Summary • Occupying a prime pedestrianised retailing pitch on North Street adjacent to Boots and Marks & Spencer • The vitality of the town centre is boosted by the absence of a covered shopping centre and the lack of an extensive retail warehousing provision • Well secured to Starbucks Coffee Company (UK) Limited • Freehold • Current income £78,250 pax • 8.25 years unexpired • £1,287,000 (subject to contract & exclusive of VAT) • Attractive 5.75% net initial yield Location The cathedral city of Chichester is a busy and historic retailing and tourist hub in West Sussex, lying approximately 68miles (109km) south west of London, 17miles (27km) east of Portsmouth and 34miles (55km) west of Brighton. Communications are excellent with the town lying adjacent to the A27 linking Brighton to the east and Portsmouth to the west. The A3 also provides good access into London and the rest of the UK. In addition rail links are strong. London (Victoria) is accessed via with an approximate journey time of 1 hour 30 minutes. Retailing in Chichester The total population within the Chichester primary catchment area is 246,000 and the estimated shopping population is 148,000. The town is particularly affluent with per capita retail spending levels well above the PROMIS average (CACI) and has a significantly high overrepresentation of the most affluent AB & C1 social grouping. The retail offer in Chichester is concentrated within the city walls and is focused along two main shopping axis, namely North Street/South Street and East Street/West Street; these intersecting at Market Cross. Chichester
13 north street chichester PO19 1LB There is no closed managed shopping centre within Chichester and the out of town provision is principally limited to bulky goods operators, which enhances the desirability and vitality of the town centre. Situation The subject property is situated on the busy pedestrianised section of prime North Street within close proximity to Boots, Marks & Spencer, WH Smith and O2. Description The property lies within a conservation area and is a Grade II listed building. The premises are arranged on ground and three upper floors. The ground floor is used solely for retail purposes with prominent frontage onto North Street. The first floor comprises both storage and staff rooms, while the second and third floor are vacant. The unit is serviced via an alley to the rear of the property leading to Chapel Street. Tenure Freehold Accommodation The property provides an approximate total net floor area of 226.21m 2 (2,435sq ft) sub-divided as follows: Ground Ground First Second Third Floor Use m 2 Sq Ft Sales ITZA Ancillary Ancillary Ancillary 112.60 39.20 43.01 31.40 1,212 575 units 422 463 338 226.21 2,435 Tenancy STARBUCKS COFFEE CO (UK) lTD FR&I Lease expiring on 21st May 2021 (circa 8.25 years unexpired) at a current passing rental of £78,250 pax and an upward only rent review on 22nd May 2016. There is a rent deposit in place of £64,475.95 as of 28/02/2013. Rental Commentary Prime rental levels on North Street have remained relatively stable in recent years. White Company took a 10 year lease of 73 North Street in January 2012 at a rent of £175,000 pax (£140 psf Zone A net). More recently, Mountain Warehouse have taken a 10 year lease of 83 North Street at a rent of £152,000 pax (£125 psf Zone A, although this can be devalued to £132 ZA depending upon the applied rate psf on the upper floor). The subject property devalues to approximately £122.60 psf Zone A adopting a 3.75% allowance for the configuration of the sales area. We believe the unit is rack rented and that there is a strong case for future rental growth off this relatively modest base level. Tenant Covenants Tenant D&B Rating Current income pax £78,250 per annum exclusive (£122.40 Zone A). EPC The property has an EPC rating of D. VAT The property has been elected for VAT and thus VAT will be payable on the purchase price. Proposal £1,287,000 (One Million, Two Hundred and Eighty Seven Thousand Pounds) Subject to Contract and exclusive of VAT, reflecting an attractive net initial yield of 5.75%, allowing for purchaser’s costs of 5.8%. Date of Accounts Turnover (000’s) Pre-Tax Profit/ Loss (000’s) Net Worth (000’s) Starbucks Coffee Co (UK) Ltd N 2 02/10/2011 £397,716,437 (£32,853,958) (£1,280,376) NB: Starbucks Coffee Co (UK) Ltd are a wholly owner subsidy of Starbucks Coffee Holdings (UK) Ltd who for the same period posted a tangible net worth of £210,054,708.
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13 north street chichester PO19 1LB - Green & Partners

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