50 NEW GEORGE STREET & 131/133 ARMADA ... - Green & Partners

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PLYMOUTH: 50 NEW GEORGE STREET & 131/133 ARMADA WAY INVESTMENT SUMMARY • Regional shopping destination with an estimated primary catchment of circa 463,000 persons and few competing retailing centres nearby. • Extremely prominent position at the junction of New George Street and Armada Way. • Let to Arcadia Group Ltd for a further 10 years and Starbucks Coffee (UK) Ltd for circa 6.25 years. • 75% of the income secured on Arcadia’s covenant. • A substantial multi-let parade comprising circa 1,820.14m² (19,592 sq ft) in a busy retailing pitch within Plymouth opposite HOF (Dingles), Disney, Sports Direct and Bhs and adjacent to JD Sports. • Includes a vacant unit (3,131 sq ft). • Long Leasehold. • £4,120,000 subject to contract and exclusive of VAT, reflecting an attractive net initial yield of 9% rising to an estimated 9.91% on letting of the vacant unit, allowing for purchaser costs of 5.8%. PLYMOUTH Plymouth is the largest city in the south west of England and is located 354 km (220 miles) south west of London, 180km (112 miles) south west of Bristol, 70.8km (44 miles) south west of Exeter and 90km (56 miles) east of Truro. The city is located on the A38 dual carriageway, which connects with the M5 (J31) at Exeter. Plymouth Airport is located 4.8km (3 miles) north of the city centre with regular flights throughout the UK and continental Europe. In addition, the city is an important continental and international sea port. The city is served by a mainline railway station, with a journey time to London (Paddington) of circa 3 hours 7 minutes and Bristol (Temple Meads) of approximately 2 hours. DEMOGRAPHIC Plymouth with a primary catchment of 463,000 and a retail catchment of 343,000 is particularly dominant within this catchment, due to the distance from major competing centres, ranking the city first in the PMA competition index (least PLYMOUTH competition from surrounding centres). Consumer spending is boosted by tourism and the student population. There are an estimated 11.8 million domestic and foreign visitors to the city annually, contributing an estimated £360 million to the city’s economy. In addition, there is a student population of approximately 60,000, which is the 5th largest in the country and is estimated to contribute circa £100 million to the local economy annually. Plymouth is expected to see above average growth in both population and retail spending over the period 2010-2015. RETAILING IN PLYMOUTH Plymouth is the largest regional shopping centre west of Bristol. The central shopping area comprises an estimated 1.55 million sq ft of retail floor space with Drake Circus Shopping Centre the main covered scheme considerably enhancing the city’s retail offer, attracting a number of new retailers such as Zara, H & M and Cult Clothing. New George Street remains a strong retailing pitch and occupiers represented include House of Fraser (Dingles), Debenhams and Tesco.
PLYMOUTH: 50 NEW GEORGE STREET & 131/133 ARMADA WAY SITUATION The property occupies an extremely prominent position at New George Street’s junction with Armada Way. Nearby retailers include House of Fraser, Bhs, JD Sports, Sports Direct, H. Samuel, Argos, Waterstone’s and Disney. DESCRIPTION & ACCOMODATION The premises form a substantial property constructed post war in the early 1950’s. The New George Street premises comprises a substantial retail unit arranged over ground, first and second floors with an extensive return frontage onto Armada Way. The ground floor and first floor are used primarily as a sales area with ancillary areas located to the rear on both floors. The third floor is used entirely as staff and ancillary space. 131/133 Armada Way comprises two separate retail units. They are both arranged over ground, first (sales) and second floors (ancillary and storage). 133 Armada Way is currently vacant. Arcadia Group Ltd: Floor Description Area (sq m) Area (sq ft) Ground Sales 431.44 4644 ITZA 1968.8 units Ancillary 16.72 180 First Sales 373.75 4023 Ancillary 48.95 527 Second Staff/ Ancillary 367.89 3960 Unit 1 - Vacant: Floor Description Area (sq m) Area (sq ft) Ground Sales 100.15 1078 ITZA 695 units First Sales 94.95 1022 Second Staff/ Ancillary 95.78 1031 Unit 2 - Starbucks Coffee (UK) Ltd: Floor Description Area (sq m) Area (sq ft) Ground Sales 100.15 1078 ITZA 695 units First Sales 97.08 1045 Second Staff/ Ancillary 93.27 1004 TENURE Long Leasehold: 50 New George Street is held on a 125 year lease from 29/09/1986 (circa 100.16 years unexpired) at 10% of rents received (side-by-side). The current head rent is £33,020 pax. 131/133 Armada Way is held on a 125 year lease from 22/02/1985 (circa 98.56 years unexpired) at 9% of rents receivable. The current head rent is £15,174 pax which is subject to 5 yearly reviews the next being 22/02/2015. The combined head rent is £48,194 pax. TENANCIES 50 New George Street - Arcadia Group Ltd 35 years from 29th August 1986 (circa 10 years unexpired) at a rent of £330,200 pax subject to 5 yearly rent reviews, the next being on 29/08/2011. Topshop has relocated to Drakes Circus and the property is currently occupied on a licence to Madhouse (in solicitor’s hands). 131/133 Armada Way- Unit 1- Vacant The vendor will cover the cost equivalent to 12 month’s empty rates. 131/133 Armada Way- Unit 2- Starbucks Coffee Co (UK) Ltd 10 year lease from 27 November 2007 (circa 6.25 years unexpired) at a rent of £110,000. Rent Reviews are 5 yearly, the next being on 27/11/2012. CURRENT NET INCOME The current combined net rental income less the current £48,194 head rent is £392,006 pax.
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50 NEW GEORGE STREET & 131/133 ARMADA ... - Green & Partners

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