PDF - Green and Partners

Substantial,
Well Secured, Freehold
Town Centre Retail
Investment Opportunity
2-22 The Martlets,
8-24 Haslett Avenue
& 31-35 Broadway
CRAWLEY
Freehold Retail Investment Opportunity
HA
SL
ET
T
VIRGIN HOLIDAYS HQ
YS
A
VE
U
KE
N
ES
CROS
W
S
E
WILKINSONS
T
T H E B R OA D WAY
PRIMARK
Bus Stands
area subject
to 999 year lease
at peppercorn rental
QUEENS
SQUARE
BOOTS
H&M
HMV
POUNDLAND
NEXT
O2
NEW LOOK
CEX
SUPERDRUG
Q U E E N S WAY
HALIFAX
SPORTS
DIRECT
COUNTY MALL
SHOPPING CENTRE
TOP SHOP
THE MARTLETS
CRAWLEY
INVESTMENT SUMMARY
■ Crawley is a strategically located, affluent,
south-east retailing destination with a
catchment of 481,000, an estimated shopping
population of 213,000 and per capita spending
levels well above the national average.
■ A rare opportunity to acquire a substantial
1.8 acre freehold site within Crawley’s
main retailing core with future redevelopment
prospects.
■An extensive unbroken retail parade
including the entire western side of the Martlets,
which is the strategic, prime pedestrianised link
between County Mall and Queens Square.
■ A strong and varied blend of established
tenants including Waterstone’s, McDonalds,
Specsavers, Warren James, Vodafone,
Card Factory, Mothercare and TUI.
■ Freehold.
■ A weighted unexpired lease term (WULT) of
approximately 6.59 years
■ 8,685m² (93,486 sq ft) of retail and commercial
floor space including a 141 space surface and
underground town centre car park.
■ An expanding and popular business destination.
Crawley benefits from its close proximity to Gatwick
Airport and is home to the headquarters of Virgin
Atlantic, TUI Travel and Nestlé.
■ £14,000,000 Subject to Contract & Exclusive
of VAT reflecting an attractive initial yield of
7.56% and equivalent of 8.11%.
Freehold Retail Investment Opportunity
CRAWLEY
Crawley is an important retailing and business destination in West Sussex,
located 50km (31 miles) south of Central London, 34km (21 miles) north of
Brighton and 43.5km (27 miles) south-west of Guildford.
The town has first class transportation links adjoining the M23 (J10-11),
which in turn links with the M25 (J7) and Central London to the north and
Brighton to the south. There is also an excellent rail service from Crawley
to London Victoria (with a fastest journey time of 45 minutes). The Gatwick
Express operates nearby from Gatwick Airport (3 miles north of the town
centre) to London Victoria with departures every 15 minutes and a non-stop
journey time of 30 minutes.
THE
PROPERTY
DEMOGRAPHICS & ECONOMY
A popular expanding commuter town, Crawley has a resident population
of circa 102,700 (2011 estimate) and an extensive primary catchment
population of 481,000,which ranks above the Sub Regional Centre average.
The town is projected to see further above average population growth in the
next few years.
Crawley
The Crawley area has a particularly affluent demographic profile with a
significantly above average proportion of adults of working age categorised
within the most affluent AB social grouping. In contrast, the least affluent D
and E social groups are under-represented.
The local economy is strong. Gatwick Airport is a major employer with
around 25,000 employed directly or indirectly through airport related services.
Other major employers locally include Virgin Atlantic, Nestlé, TUI Travel,
CAA, Servisair, Thales, APV UK Ltd and KPMG.
CRAWLEY
RETAILING IN CRAWLEY
Crawley has a town centre retail floor space of circa 960,000 sq ft, which
is disproportionally low considering the town’s extensive catchment and
affluence. The estimated shopping population of Crawley is 213,000 with per
capita retail spending levels above the PROMIS average.
The prime retailing pitch outside of County Mall is regarded as the
pedestrianised Martlets, which links the shopping centre to Queens Square.
National multiples represented on the Martlets include, H&M Hennes,
Republic, Carphone Warehouse, Lush, JJB Sports, Schuh,Topman,
Sports Direct, HMV, Vodafone, Waterstone’s and Specsavers.
County Mall extends to approximately 480,000 sq ft over two levels and
is anchored by Debenhams, Bhs and Boots. Other retailers include
Superdry, River Island and Miss Selfridge. The main mall entrance is
adjacent to the subject property.
Beneficial to the town’s future growth is the proposed regeneration of the
Northern Quarter. Planning permission has been granted to Land Securities/St
James Investments for Phase 1 centred on the re-development of the ‘former
Sussex House site’ in the High Street, comprising a Morrison’s food store, a
110-bed Travelodge and 4 restaurants.
SITUATION
The property has a triple aspect with prominent frontages onto both The
Martlets and Haslett Avenue with a small return frontage onto The Broadway.
The main entrance to County Mall is in close proximity as are the town centre’s
principal bus stops and rail station. Retailers located opposite and adjacent
include H&M, Top Man, Carphone Warehouse, Schuh, Republic,
Primark, Sports Direct, HMV, O2, Halifax, Shoe Zone, JJB Sports,
Lush, Greggs and Deichmann.
DESCRIPTION
The property built in the 1970’s comprises two substantial blocks; the first
is situated on the western side of The Martlets and runs virtually the entire
length from 2-26, adjoining Deichmann, which fronts onto Queens Square to
the North, and Carphone Warehouse to the south. The second block can be
found at the County Mall end of The Martlets directly opposite the Bus Station
and includes 8-24 Haslett Avenue and 31-35 Broadway. In addition there is
a surface and underground car park (141 spaces) to the rear of the property
with vehicular access from The Broadway. 24-26 The Martlets has effectively
been sold off on a long lease (999 years at a peppercorn).
ACCOMMODATION
The property provides a total approximate net internal floor area of 8,685m²
(93,486 sq ft) as set out in the schedule of tenancies and accommodation.
45 metr
MA
COUNTY
41
REVIVE
JUICE
BAR
42
43
14
46
47 - 48
MA L L
L O WE R
11
10
A NEWS
VENEZI
N/A
50A
ROBBINS
BASKIN
PARL
I/CREAM
ENT
RY
CLOTHING
49
11A
TIMPSON
P
SHOE RE
SUPERD
9
51 50
KIE S
`S COO BIS
MILLIE
&
CONF
52
ORANGE
ONES
TELEPH
TS
BARRAT
SHOES
53
NATION
JEWEL
LER
JEWEL
R
JEWELLE
H SAMUEL
GAME
S
ER GAME
COMPUT
ETT
D & BARR
HOLLAN
FOOD
HEALTH
VACANT
LE
PINEAPP
L/WR
54
ORES
OASIS ST
WEAR
LADIES
BOOTS
T
CHEMIS
IL FLOO
(2 RETA
RS)
Y
FRIAR
22
24
WAY
18
16
ST CATHERINE`S
HOSPICE
CHARITY SHOP
YMCA
CHAR SH
MANPOWER
EMPLOYMENT
AGENCY
27 27 29
31
33
35
PARK HOUSE
TAJ
THE GROCER
12
14
20
P
ENT
VACANT
VACANT
ENT
VACANT
VAC
THE TRADE EXCHANGE
FINANCIAL SERVICES
VACANT
55
C
MOSS
AR
MENS WE
MOTHERCARE
C/WR & NURS GDS
35
21 - 25
TIE RACK
L&M
ACCESS
ENTRANCE
LUSH
HLTH&BEA
SHOE ZONE
LADIES & MENS WEAR
REPUBLIC
SHOES
SCHUH
TELEPHONES
THE CARPHONE WAREHOUSE
BLACKS OUTDOOR LEISURE
CAMPING GOODS
(2 RETAIL FLOORS)
36
19
56
ENT
37
BANK
SHOES
45
12
44
NE
SHOE ZO
WEAR
& MENS
LADIES
F HINDS
R
JEWELLE
8
7
BAKER
ENT
THE CLOTH STORE
HABERDASHERY
57
BLUE IN
STORE
S
N CARD
CLINTO
& GIFTS
CARDS
GREGGS
VACANT
SANTANDER
5
6
THE
ME
PERFU
SHOP
BEA
HLTH &
S
L EXPRES
OPTICA
OPTICIAN
BANK
3 STORE
HALIFAX
ENTRAN
CE
THOMSON
TRAVEL AGENT
UNIT 4 - 26 UNIT 3 - 26 UNIT 2 - 26 UNIT 2A - 26 UNIT 1 - 26
NCP
(180) (ACTUAL)
SERVICE AREA &
30 - 31
32 - 34
TELEPHONES
(2 RETAIL FLOORS)
CLOTHING
H&M
RECORDINGS
22
SOLETRADER
SHOES
CARDS & GIFTS
CARD FACTORY
WARREN JAMES
JEWELLERS
COMPUTER GAMES
GAME
HMV
TOPMAN
MENS WEAR
(2 RETAIL FLOORS)
SPORTS GOODS
(2 RETAIL FLOORS)
OPTICIAN
SPORTS DIRECT
D & A THE OPTICIANS
SPECSAVERS
OPTICIAN
TEL
VODAFONE
WATERSTONE`S
BOOKS
(2 RETAIL FLOORS)
&
COSTA
COFFEE SHOP
DEICHMANN SHOES
20
58
CONNEXIONS
ADVICE CENTRE
50 - 52
area subject to
999 year lease at
peppercorn rental
A
E
NU
VE
E
W
ST
F WORSHIP
P
NCP
(36) (ACTUAL)
50 52
48
EVANS CYCLES
44 - 46
CYCLES & REPAIRS
MONARCH
42
AMUSEMENTS
NAIL ART
BEAUTY SALON
BANK
VACANT
SANTANDER
40
ENT
TRAVEL AGENT
38
QUIDS IN
HOUSEHOLD GOODS
FLIGHT CENTRE
36
BRITISH HEART FOUNDATION
FURNITURE & ELECTRICAL
CHARITY SHOP
28
VACANT
34
VACANT
THE BROADWAY
28
21
16 - 18
(2 RETAIL FLOORS)
THE FABULOUS
99S
HO GDS
KUBUS
DELICATESSEN
14
PRIMARK
15 - 17
REED
EMP AGY
10 - 12
CLOTHING
(BUSES TAXIS & LOADING ONLY)
VACANT
THE MARTLETS
FISH
PUNKY
WEAR
LADIES
4
1
21
VACANT
14 - 26
12
19
17
REED
EMP AGY
40
PEACOCKS
8
4-6
13 - 15
3
TONI & GUY
HAIRDRESSING
38 - 39
COSTA
COFFEE SHOP
VACANT
LINGERIE
ANN SUMMERS
SLATER
M/WR
CHELTENHAM
&
GLOUCESTER
BANK
WILKINSONS
10
BENSONS AMUSEMENT CENTRE
AMUSEMENTS
BETFRED
BETTING OFFICE
AHEAD CYCLES
CYCLES & REPAIRS
A1 SUPERSTORE
HO GDS
8
CLARKES STATIONERS
OFFICE EQUIPMENT
6
SHOECARE
SHOE REP
11
9
2-
MCDONALD`S
FAST FOOD RESTAURANT
(2 RETAIL FLOORS)
CLOTHING
13
THE BROADWAY
4
THE
PAVILION
HYPE
WEAR
LADIES
13
P
7
SHOPPERS
AMUSEMENTS
AMUSEMENTS
26
11
ELECTRONICS
PAVILLION
NEWS
N/A
19
TOYS & GAMES
9
MAPLIN
SCOPE
CHARITY SHOP
BATEMANS
OPTICIANS
7
1-5
GAMES WORKSHOP
STREET VALUE
HO GDS
BANK
GAMESTATION
COMPUTER GAMES
GAME
PLAYER
COMP
GAME
17
18 - 20 22
HEALTH & BEAUTY
WIMPY
TAKE AWAY
QUEENS
SQUARE
10 - 11
SAVERS
CUZINI
ASIAN REST
LLOYDS TSB
RUSH LONDON
HAIRDRESSING
3
MOBEN
KITCHENS
KIT FURN
24
VACANT
8-9
26
VACANT
5-6
28
SAVE THE CHILDREN
CHARITY SHOP
BURTON
MENS WEAR
& DOROTHY PERKINS
LADIES WEAR
(2 RETAIL FLOORS)
4
VACANT
7
BRIGHTHOUSE
1-3
STATIONER
12 - 13
SERVICE AREA
THE CARTRIDGE SHOP
SHOES
30
32
PIZZA T/A
(PEDESTRIANS ONLY)
25 - 29
BANDSTAND
14 - 19
38 - 40
36
34
STEAD & SIMPSON
PIZZA HUT DELIVERY
ITHS
GOLDSM
ER
JEWELL
THORNTONS
BIS
CONF &
TT
24
ER
S
E
GREGGS
This Goad Plan is for identification only and not to be scaled as working drawing. No part of this plan
may be entered into an electronic retrieval system without prior consent of the publisher. © Crown copyright 2011. Licence number PU100017316. For full terms and of copyright conditions visit www.goadplans.co.uk/copyright
BAKER
10
Crawley
SUBWAY
S/W BAR
T-MOBILE
TELEPHONES
TELEPHONES
COMPUTER GAMES
O2
JESSOPS
PHOTO GOODS
3
CEX
PHONES 4U
TELEPHONES
L/WR&M/WR
NEXT
HOME ENTERTAINMENT
HO TEXT
CURRYS.DIGITAL
(3 RETAIL FLOORS)
1
23 - 24
2
LIGHTING
VACANT
ENT
6 2-4
20 - 22
POUNDLAND
SUMMIT
VACANT
PARKSIDE
ENT
5
DISCOUNT STORE
CLARKS
SHOES
NCP
(60) (ESTIMATED)
8 - 10
SUPERDRUG
HEALTH & BEAUTY
BRITISH BOOKSHOPS
SUSSEX STATIONERS
BOOKS
S)
IL FLOOR
(2 RETA
15
GOODS
SPORTS
CLAIRE`S
L ACCESS
EST AG
APEX
D/C
12
EVANS
LADIES WEAR
BHS
STORE
VARIETY
17
16
AND
RIVER ISL
WEAR
& MENS
LADIES
RS)
OO
IL FL
(2 RETA
JD
DS
DIAMON LS
& PEAR
SS
L ACCE
16
14
COFFEE REPUBLIC
COFFEE SHOP
2
LADIES & MENS WEAR
USE
WAREHO
AR
LADIES WE
ENT
1-5
NEW LOOK
NORTHWOOD
18
HOUSEHOLD TEXTILES
ENT
E
LFRIDG
MISS SE
WEAR
LADIES
4
BUS SERV
4
LINENS DIRECT
3
EXCALIBUR
DRAPES
BONMARCHE
LADIES WEAR
WILLIAM HILL
BETTING OFFICE
54 54
ALLIANCE & LEICESTER
BANK
THOMAS COOK
TRAVEL AGENT
THE BODY SHOP
HEALTH &
BEAUTY
56
BOULEVARD
FLORIST
FLORIST
19 - 21
ENT
BAKERS OVEN
BAKER
17
SERVICE AREA
58 - 60
NATIONWIDE
BUILDING
SOCIETY
VACANT
15
ENT
11 - 13
62
BOULEVARD
NEWSAGENTS
7-9
64
METRO
CAFE
2
QUEENSWAY
THE PAVEMENT
SHAKIES
I/CREAM PARL
4
QUIZNOS SUB
S/W BAR
1
SUN CENTRAL
23 - 29
VARIETY STORE
(3 RETAIL FLOORS)
SOLARIUM
Freehold Retail Investment Opportunity
19
WALLIS
WEAR
LADIES
18
W
OPTI
MARKS & SPENCER
CRAWLEY
TENANCIES
TENURE
The block is leased to a variety of national, regional and local retailers in accordance with the Schedule of Tenancies.
McDonalds, Card Factory, Waterstone’s, Specsavers, Mothercare, Vodafone, Sole Trader and TUI are
all represented. The leases are predominantly drawn on institutional terms. Outgoings relating to the units on Haslett
Avenue and The Broadway are recoverable through a comprehensive service charge. Those on the Martlets are let on
FRI terms.
Freehold.
NB: 24-26 The Martlets is subject to a 999 year lease at a peppercorn rental.
Area Analysis (sq ft)
Address
Unexp
term
Rental
Value pa
Tenant Name
Lease Start
Expiry Date
2 The Martlets Vodafone Ltd
(t/a Vodafone)
11/02/1999
10/02/2014
1.91
£52,500
£40,000
470
403
Waterstone’s
Booksellers
Limited (t/a
Waterstone’s)
28/10/1999
27/10/2024
12.63
£148,000
£133,000
2313
1184
8 The Martlets Specsavers
29/09/1994
Optical
Superstores Ltd
(t/a Specsavers)
28/09/2019
7.55
£71,100
£62,000
1173
603
10 &12 The
Martlets
Game (Stores)
Limited (in
administration)
29/09/1994
28/09/2019
7.55
(£139,000)
£124,000
2445
14 The
Martlets
Warren James
(Jewellers) Ltd
(t/a Warren
James)
22/06/2011
21/06/2021
9.28
£60,000
£60,000
16-18 The
Martlets
Sportswift
Ltd (t/a Card
Factory)
19/06/2006
18/06/2016
4.27
£156,000
20 The
Martlets
Twinmar
29/09/1998
Limited (t/a Sole
Trader)
28/09/2013
1.54
22 The
Martlets
TUI UK Ltd
29/05/2011
28/05/2021
9.21
24-26 The
Martlets
Redevco
Properties (UK)
Limited
25/03/2012
24/03/3011
999
4 & 6 The
Martlets
Breaks
Current
Rent pa
22/06/2016
(T)
29/05/2016
(T)
GFS
ITZA
1st
Other Anc
Service
Charge
240 n/a
Ins.
Rates
Payable
(2012/13)
Covenant
L/L Shortfall
Y/E
T/O
Profit/Loss
Comments
£19,923.00
31/03/2011
FRI
£62,746.00
30/04/2011
£477,424,000
-£20,597,000
£51,676,000 The RR wef 28/10/09 remains
outstanding. Prohibition within the
alienation clause of lease which
does not allow underlettings at
less than passing rent.
1137 n/a
FRI
£29,083.00
28/02/2011
£390,791,000
£21,261,000
£80,512,000 Upper parts used as consultancy
rooms but valued as ancillary
as T's improvement. 2009 RR
documented as nil increase.
1250
890 n/a
FRI
£61,372.00
29/01/2011
1209
601
440 n/a
FRI
£29,083.00
31/03/2010
£43,613,327
£11,922,679
£66,751,544 Tenant received 6 moths rent free
and TBO is subject to a 3 mth
penalty if exercised. £5 applied to
1st floor anc.
£125,000
2460
1261
1014 n/a
FRI
£61,372.00
31/01/2010
£209,453,000
£35,641,000
£47,896,000 2011 rent review is subject to a
nil increase. Tenant trades well
and potentially interested in a
re-gear with negotiations to start
post RR documentation.
£64,000
£57,000
1088
573
387 n/a
FRI
£29,083.00
26/06/2010
£32,021,032
£1,280,312
£56,000
£56,000
949
558
345 141 (GF)
FRI
£28,167.00
30/09/2011
£3,546,000,000
£26,000,000
£0
£0
14650
1797 Sales 34 GF
427 Anc
10828 650 (2nd)
£26,976.70
£7,685.09
£395,254.00
£5,162,800,000 -£168,600,000
Net Worth
FRI
-
n/a
-£3,283,600,000 Guaranteed by Vodafone
Multimedia Ltd. For the year
ending 31/03/2011 the
guarantor reported a net worth
of £300,271,000. 2009 RR
documented as a nil increase.
n/a
In administration. Tenant vacated
but administrator responsible for
empty rates
£21,568,977
-£49,000,000 Recent lease renewal. Rent
devalues to £95.50 allowing
£7.50psf for GF Anc and £5 psf
for 1st floor. TBO in year 5 subject
to 3mth rent penalty if exercised.
Initial rent of £56,000 pa and 3
month rent free.
Redevco have a long lease on the
former C&A store at a peppercorn
but do contribute towards the
service charge
Freehold Retail Investment Opportunity
Area Analysis (sq ft)
Lease Start
Expiry Date
Car Park The
Broadway
Address
RCP Car Parking 04/12/2009
Limited (104
spaces)
Tenant Name
24/12/2014
Offices @ 14
Haslett Ave
Dr H Thomas &
Dr I Anderson
(Saxonbrook
Medical)
14/01/2025
15/01/2010
Unexp
term
Breaks
2.78
12.83
Current
Rent pa
£70,000
15/01/2015
£82,864
Rental
Value pa
£70,000
GFS
n/a
ITZA
1st
n/a
£74,000
Other Anc
n/a n/a
8056
2663 (2nd)
Service
Charge
Ins.
£6,600.00
£623.12
£17,380.49
£3,115.58
Rates
Payable
(2012/13)
£22,213.00
Covenant
L/L Shortfall
Y/E
£5,067.49 31/03/2011
T/O
£5,226,724
Profit/Loss
£1,072,419
Net Worth
Comments
£249,788 Plus 50% of T/O over £140k. 104
spaces (55 surface / 49 basement).
A further 37 basement spaces
(out of RCP's control) are allocated
to other tenants. The lease is not
drawn on full repairing terms and
thus there is a small Landlord's
shortfall (£5067.49 pax currently).
£64,922.00
Tenant has right to park in 30
basement car spaces. Part 1st
floor is sublet to Crawley Chemists
Ltd until 31/12/2024 @£10k pax.
Tenant has agreed to remove the
TBO in Jan 2015 in return for 3
months rent free now and 6 months
rent free in Jan 2015. Solicitors
instructed.
16 Haslett Ave Vacant
£0
£39,500
1648
809
897
658 (GF)
£3,378.83
£830.82
£20,954.00
£25,163.65
Smith Price Quoting £50,000pax
18 Haslett Ave Vacant
£0
£40,750
1759
855
848
116 (GF)
778 (2nd)
£3,962.53
£415.41
£21,297.00
£25,674.94
Smith Price Quoting £50,000pax
£11,473.53
£3,115.58
£52,212.00
20 Haslett Ave Mothercare UK
Limited (t/a
Mothercare)
09/05/1997
08/05/2017
5.15
£141,500
£112,000
4151
1713
4000 (sales)
120 (1st)
3,904 (2nd)
The Outdoor
Group Trading
Limited (t/a
Blacks)
02/12/2004
01/12/2009
-2.28
£70,500
£55,000
1943
876
1912
901 (2nd)
£4,276.62
£1,246.23
£22,786.00
24 Haslett Ave McDonalds Real
Estate LLP
24/06/1981
23/06/2021
9.28
£75,500
£62,000
2188
886
2038
755 (2nd)
£5,555.80
£1,453.94
£22,671.00
31/12/2010
£1,184,462,000
31 The
Broadway
St Catherines
Hospice Trading
(Sussex) Ltd
06/11/2002
05/11/2012
0.65
05/11/2007
£30,900
£18,750
1076
734
541
£1,528.82
£415.41
£10,992.00
31/03/2011
£1,643,641
33 The
Broadway
The National
Council of
Young Men's
Christian
Associations
(YMCA)
27/04/2006
26/04/2021
9.12
26/04/2016
£29,000
£19,250
1048
714
544
£984.72
£415.41
£10,420.00
31/03/2011
£23,067,000
£936,000
£10,713,000
35 The
Broadway
Manpower UK
Limited
10/12/2004
09/12/2014
2.74
09/12/2009
£28,000
£19,250
1074
724
545
£982.94
£415.41
£10,649.00
31/12/2010
£571,779,000
£2,004,000
£25,416,000
8,10 & 12 The Taj The Grocer
(UK) Ltd
Broadway
16/02/2011
15/02/2026
13.93
£40,000
£58,220
3303
1860
489
444 (GF)
£2,091.53
£1,038.53
£43,510.00
37,375
11,164
£85,192.51
£13,085.44
22 Haslett Ave
£1,175,864 £1,225,720
TOTAL (excluding Game) £1,119,958
44,947
Total Area 93,486
27/03/2010
£562,317,000
£23,405,000
£67,100,000
Holding over. Lease renewal
discussions ongoing with JD Sports.
Prior to administration offered 10
years @ £60,000 pax with 5 yr
TBO and 3 months rent free. 2
mth penanlt if TBO exercised. Rent
devalues to £57 psf ZA assuming
£4 on GF (anc), £3 on 1st (anc) and
£1.50 on 2nd (anc).
£157,211,000
_
£355,953,000 5 year reversionary lease agreed
with a Day 1 upwards only review
on 24/06/2016.
£50,000
Stepped rental:Yrs 1&2@
£40,000. Yr 3@ £50,000 Yr
4@£60,000 and Yr 5 @£67,500.
Average rent £51,500
£55,906.08
CRAWLEY
Freehold Retail Investment Opportunity
INCOME
RENTAL VALUE
The current gross income is £1,175,864 pax with a net income of £1,119,958
pax allowing for service charge, insurance and business rates shortfalls which
totals £55,906 pa.
Prime headline rental values within Crawley peaked at £140 psf ZA within the County Mall Shopping Centre (Lower Mall) in 2007 on lettings to Warehouse,
River Island and Millie’s Cookies. Rentals currently reflect circa £110 psf ZA. Recent transactions within The Martlets reflect circa £95 psf ZA evidenced by the
following open market lettings and lease renewals.
INCOME ANALYSIS
Address
Covenant Analysis
Type
Lease
Zone A psf
Date
Comments
22 The Martlets
TUI UK Ltd
Tenant
L/R
10 yrs from 29/05/11
(recently completed)
£95.50 (N/E)
05/11
TBO 5th year with 6 mths notice and 3 mth rental penalty. 3 months rent free.
Within subject property.
14 The Martlets
Warren James
OML
10 yrs from 22/06/11
£96.33
06/11
TBO 5th year with 6 mths notice and 3 mth rental penalty. 6 months rent free.
Within subject property.
5 The Martlets
CEX
OML
10 yrs from 03/10
£95 (N/E)
03/10
12 mths rent free
13/15 The Martlets
Sports Direct
R/G
10 yrs from 09/11
£95 (N/E)
09/11
12 mths rent free. Re-geared lease.
81% of current income is secured to nationally renowned tenants.
Regional
6%
Local
16%
Rental levels passing within the Haslett Avenue parade reflect between £71 and £28 psf ZA and offer a good discount to prime. McDonalds has recently
completed a 5 year reversionary lease (wef 06/16) at the passing rental of £75,500 pax (£71 psf ZA) in return for 6 months rent free whereas at the Broadway
end of the parade Taj The Grocer (UK) Ltd entered into a 15 year lease in February 2011 on a stepped rental basis, the average equating to circa £28 psf ZA.
National
78%
Lease Expiry Profile
76% of the current income is secured for a further 5 years.
3-6 years
25%
0-3 years
27%
6-10 years
25%
10-15 years
23%
The weighted unexpired lease term (WULT) is circa 6.59 years (to expiry)
Broadway Frontage
CRAWLEY
SERVICE CHARGE
The Martlets units are secured on full repairing and insuring leases. The
remainder of the freehold ownership (including the long leasehold of
24/26 Martlets) is subject to a service charge which is calculated on a
gross floor area basis with individual tenant percentage apportionments.
The total service charge budget for the year ending 31st March 2013 is
£90,260 pa. The current service charge, rates and insurance shortfall is
£55,906 pax as set out in the tenancy schedule.
ASSET MANAGEMENT OPPORTUNITIES
• The property presents a rare opportunity to acquire a substantial
unbroken retail parade on a 1.8 acre freehold site (not including 2426 Martlets) in Crawley town centre which has future re-development
prospects subject to planning which could result in the extension and
improvement of the existing holding.
• The asset provides an investor with flexibility allowing sub-division
and sale of part.
• Consider acquiring adjoining ownerships (25-34 Queens Square –
Deichmann/Shoppers Amusements/Primark and 24-26 The Martlets)
to take full control of this strategic island site for future re-development.
• There is the opportunity to enhance the current rental income with the
letting of the vacant units at 16 and 18 Haslett Avenue and potentially
10/12 The Martlets (Game) as well as improving the weighted
unexpired lease term on the property as some of the tenants have
intimated that they would re-gear leases.
VAT
The property has been elected for VAT and any disposal will be by way of a
Transfer of a Going Concern (TOGC).
PROPOSAL
Haslett Avenue Frontage
We have been instructed to seek offers £14,000,000 for the freehold
interest reflecting a net initial yield of 7.56% and an equivalent
yield of 8.11% allowing for purchase costs of 5.8%.
FURTHER INFORMATION
For further information please contact:
David Freeman
James Baillie
Ed Smith
020 7659 4830
020 7659 4839
020 7659 4831
[email protected]
[email protected]
[email protected]
MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as
to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. March 2012.
Adrian Gates Photography & Design 07710 316991