PIZZA EXPRESS AND STUDENT ACCOMMODATION - Propex

PIZZA EXPRESS
AND STUDENT ACCOMMODATION
Post Office Road,
Bournemouth

Investment Considerations
■ Restaurant investment let to Pizza
Express with Student Accommodation in
the upper parts
■ Ideal lot size for a private investor/SIPP
■ 71% of income let to blue chip tenant
Pizza Express Restaurants Ltd on a FRI
lease expiring January 2036 (tenant break
clause in January 2026)
■ 29% of income let to Kings Colleges,
Bournemouth on a FRI lease expiring
January 2027 with annual RPI increases
■ Offers in the region of £2,075,000, subject
to contract
■ Net initial yield of 5.75%
This Plan is based upon the Ordnance Survey Map with the sanction of the
Controller of H.M. Stationery Office. Crown Copyright reserved. (100000271). This
Plan is published for the convenience of Purchasers only. Its accuracy is not
guaranteed and it is expressly excluded from any contract. NOT TO SCALE.
Location
Bournemouth is an attractive, commercial seaside town
on the south coast of England approximately 100 miles
(165km) south west of London and 30 miles (51km)
west of Southampton. It is a major centre for tourism,
a leading national conference centre and a major focus
for the leisure industry on the south coast. The town
benefits from a very significant primary catchment
population of approximately 390,000 persons (2001
Census) and a growing student population in excess of
18,000 students at the university.
Bournemouth benefits from excellent road and rail
communications being situated close to the A31 which
links to the M27 and in turn the M3 motorway. There is
a regular rail service to London Waterloo with a
journey time of approximately 1 hour 45 minutes and
Bournemouth International Airport is located 4 miles
(7km) north east of the town centre.
Situation
The unit is located in a prominent pedestrianized
position on Post Office Road about 50 metres north of
Old Christchurch Road whilst Albert Road lies to the
rear of the property. Old Christchurch Road is a prime
pedestrianized retail shopping location, which boasts
retailers such as Dingles and Beales Department stores
as well as Top Shop, River Island, Oasis, Lush, La Senza and
WH Smith. The property itself lies adjacent to a listed
Roman Catholic Church and Argos. There are further
retailers along both Post Office Road and Albert Road.
Description
The property is an impressive looking building of
traditional stone and brick construction under a
pitched tiled roof. The façade is listed Grade II and the
ground floor has recently been refurbished to provide
a new restaurant with ancillary accommodation which
is occupied by Pizza Express.
The upper parts are arranged over first and second floors
which are currently being refurbished to provide student
accommodation. There will be 13 bedrooms over the
two floors with two kitchens, two living rooms and a
laundry room. The works to complete this refurbishment
is scheduled for completion in January 2012.
Tenure
The property is held freehold.

Accommodation
We have measured the property and have calculated it to have the following approximate gross internal floor areas.
Floor Area sq ft Area sq m
Ground Floor 3,710 344.67
First Floor 1,829 169.92
Second Floor 1,776 165
Total 7,315 679.59
Tenancy
The restaurant unit is let to Pizza Express Restaurants Ltd on a 25 year FRI lease from January 2011, subject to
5 yearly upward only rent reviews from at £90,000 per annum. There is a tenant break clause at year 15.
The first and second floors have been let to Kings School of English (Tuition) Ltd) t/a Kings Colleges, Bournemouth
on a new 15 year FRI lease, subject to annual RPI increases at a commencing rental of £36,400 per annum. The lease
will commence on Practical Completion of the upper parts which is due in January 2012.
Therefore, the total rental for both Pizza Express and Kings Colleges, Bournemouth will be £126,400 per annum.
R PARKS
L)
METRO
ERMARKET
RE
1 - 3
NEW LOOK
LADIES WEAR
CORIANDER
MEXICAN
REST
S`JUICED
CAFE
BARKER
SWINTON
INS OFF
D/C
22
5
KUKUI
BAR
3
24
26
28
CLOSED
9 - 11
THOMAS COOK
TRAVEL AGENT
7 7A
CORAL
RICHMOND
CLASSICS
BOURNEMOUTH JEANS
CLOTHING
NATWEST
BANK
1 - 5
RICHMOND HILL
13
BET OFF
MENS WEAR
ENTRANCE
(BUSES TAXIS & ACCE
SANTANDER
BANK
DECODENCE
GIFTS
THE
ARTHOUSE
ART GAL (RET)
PO
POST OFFICE
PLACE OF WORSHIP
POST OFFICE ROAD
24
&
MAGNUMS
BAR & RESTAURANT
HOLLYWOOD
PARTY CENTRE
PARTY GOODS
PHONES 4U
TELEPHONES
PANDORA
JEWELLER
VACANT
7 15 17 - 19
9 - 13
22
WHSMITH
N/A & BKS
(3 RETAIL FLOORS)
This Plan is based upon the Ordnance Survey Map with the sanction of the
Controller of H.M. Stationery Office. Crown Copyright reserved. (100000271). This
Plan is published for the convenience of Purchasers only. Its accuracy is not
guaranteed and it is expressly excluded from any contract. NOT TO SCALE.
ENT
ENT
CLOSED
20
16 - 18 14 12
SHAKE THAT
CAFE
OFFICE
SHOES
PIZZA
EXPRESS
SUBWAY
SANDWICH BAR
21
2
FREE SPIRIT
CLOTHING
ENT
R E PORTER
JEWELLER
OASIS
LADIES WEAR
10
23
8
2 - 6
9
LUSH
HLTH&BEA
7B
LORD
S/WBAR
VACANT
CATALOGUE SHOWROOM
25
SHAKEAWAY
T/A
7A
(PEDESTRIANS ONLY)
4
3
6
ENT
SCRIBBLER
1
CARDS
ENT
GO
ARGOS
TIMPSON
SHOE
REP
8
JANE NORMAN
LADIES WEAR
LA SEN
LING
VACANT
MCDONALD`S
FAST FOOD
RESTAURANT
(2 RETAIL FLOORS)
10
27
DOROTHY PERKIN
LADIES WEAR
BURTON
MENS WEAR
(2 RET FLR
14
MAXIMS
JUKEBOX VINTAGE
CLOTHING
L/WR&M/WR
12
CASINO
ALBERT ROAD
FLAVOUR
CAFE
10
33 - 35
VACANT
HOTTER
SHOES
8
L/WR&M/WR
37
APPETITES
SANDWICH BAR
CONSORTIUM
CLOTHING
6
CO
CAFE
RICHMOND CLASSICS
LADIES WEAR
MONSOON
LADIES WEAR
XPOSE
ESTATE AGENT
STEPHEN NOBLE
BATH TRAVEL
TOPSHOP
LADIES WEAR
(2 RETAIL FLOORS)
39
14 - 24
7
41
3 - 5
DINGLES
DEPARTMENT STORE
OLD CHRISTCHURCH ROAD
&
12
ENTRANCE
VERTON ROAD
&
(2 RETAIL FLOORS)
SPEARMINT RHINO
CLUB
2 - 4
43
(6 RETAIL FLOORS)
TRAVEL AGENT
LLOYDS TSB
BANK
STEAME
ADELAIDE LANE
1
45 - 47
ST PETERS WALK
12 13
ERNEST
JONES
JEWELLER
ARCADE
4
J & R
JWLR
RBS
KAREN MILLEN
S WEAR
BRIDES OF
BOURNEMOUTH
BRIDAL WEAR
CLINTON CARDS
M BUTTERFLY
LADIES WEAR
SAM & SEBASTIAN
GIFTS
14 - 16
JEWELLER
VACANT
6A
VACANT
2
CARDS & GIFTS
BANK
49 - 51
53
RIVER ISLAND
LADIES &
MENS WEAR
(2 RETAIL FLOORS)
30 - 34
BOURNEMOUTH ARCADE
WATERSTONE`S
BOOKS
(3 RETAIL FLOORS)
ESSENTIAL
17 18 - 19 20 21 - 22 2
7 5 - 6 3 - 4 2
L ACCESS
HSBC
BANK
55
36 - 42
WHITE STUFF
CLOTHING
ROBERTA
GRANVILLE PLACE
57 - 59
BARCLAYS
IMELDA`S WARDROBE
SHOES
WESTOVER
JWLR
L/WR (2 RET FLRS)
CHARLES FOX
JEWELLER
COFFEE S
TRAILFINDE
TRAVEL AGEN
BANK
HOLLAND &
BARRETT
HEALTH FOOD
61 - 63
DEPARTMENT
(7 RETAIL FLOORS)
CLOS
54
52
44 50
Tenants Covenants
Pizza Express (Restaurants) Ltd have reported the
following figures for the last two financial years:
Financial
Year
Ending
Kings School of English (Tuition) Ltd have reported the
following figures for the last two financial years :
Financial
Year
Ending
Turnover Pre-Tax
Profit
Turnover Pre-Tax
Profit
Post Office Road, Bournemouth
Net
Current
Assets
28.06.2010 £314.7m £62.0m £297.7m
28.06.2009 £294.8m £59.0m £252.0m
Net
Current
Assets
31.12.2010 £4.939m £614,849 £270,445
31.12.2009 £4.054m £491,887 £116,134
Kings Colleges was established in 1957 and they
opened a London College in 1966 and then Kings
Oxford College in 1986. Over the years, they have
been a pioneer in international educational
programmes and in the 1970s were one of the first
colleges to welcome significant numbers of students
from Asia and China. Further information is available at
www.kingscolleges.com
Estimated Rental Value
The current rent on the Pizza Express unit is £90,000
per annum which equates to £24.26 psf. We believe
that this rent is reversionary as A3 quoting rents at the
Nautilus which will be a new landmark leisure
development in Bournemouth town centre adjacent to
the Pavilion are £35 psf.
VAT
The property has been elected for VAT and therefore
it is anticipated that the sale will be treated as a Transfer
of a Going Concern (TOGC).

Additional Information
Further information including layout plans and the specification of
works for the student accommodation, site plans and leases are
available from the vendor’s agent upon request.
Proposal
Our clients are seeking offers in the region of £2,075,000 (Two
Million and Seventy Five Thousand Pounds) for the benefit of the
freehold interest in the above property, subject to contract and
exclusive of VAT which reflects a net initial yield of 5.75% following
deduction of normal purchaser’s costs of 5.8%
Contact
For further information, please contact :
Mark Bruce-Lockhart
Philips Lockhart, 24 Brooks Mews, London,
W1K 4EA
Tel : 020 7659 0332
Fax : 020 7659 0331
Email : mbruce-lockhart@philipslockhart.co.uk
Property Misrepresentation Act Philips Lockhart and for the vendors of this property whose agents they are, give notice that:- 1:The particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute nor constitute part
of an offer or contract; 2: All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements
of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3: Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves
independently as to the incidence of VAT in respect of any transaction; 4: All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication.They have not however been tested and therefore, we give
absolutely no warranty as to their condition or operation; 5: No person in the employment of Philips Lockhart has any authority to make or give any representations whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the
vendors; 6: No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; 7: These particulars were prepared in November 2011