PDF - Green and Partners
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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