kingston-upon-thames

TROPHY FREEHOLD RETAIL INVESTMENT OPPORTUNITY
24 CLARENCE STREET
KINGSTON-UPON-THAMES
KT1 1NX
Investment Summary
�Kingston-upon-Thames is a premier retailing
centre in South West London
�Trophy asset
�Freehold
�Exceptionally prominent retail unit, occupying
a 100% prime position on Clarence Street
�Modern, well configured retail accommodation,
totalling 399.57 sq m (4,301 sq ft), arranged
over ground and first floors
�Leased to Hema Retail Limited, with surety
from Hema BV and French Connection Group
plc (D&B rated 5A1), for a term expiring on
17th August 2018
�The current rent is £482,000 per annum exclusive
�Seeking offers in excess of £10,500,000
(Ten Million, Five Hundred Thousand Pounds),
subject to contract and exclusive of VAT
�A purchase at this level would reflect a Net
Initial Yield of 4.34%, allowing for purchaser’s
costs of 5.80%
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
M40
Aylesbury
Luton
Oxford
Location
Kingston-upon-Thames is one of the UK’s leading retail and commercial
centres and also has important, historic roots, being the earliest Royal
Borough and the location where Saxon kings were crowned. The town
is located within the M25 London Orbital motorway, approximately 16
km (10 miles) south west of Central London and 7 km (4 miles) south
of Richmond.
Kingston benefits from excellent road communications, being situated
a few miles from the A3 trunk road and only 11 km (7 miles) from
the M25. In addition, the town centre is served by some 40 bus routes,
with frequent services to all parts of the borough and other areas of
Greater London.
A12
High
Wycombe
A34
J4
J13
M4
Slough
A404
Reading
Newbury
M25
J5
J8
A329(M)
A339
Heathrow
London-City M25
Bracknell
J10
J10
J3
KINGSTON-UPON-THAMES
M23
Gatwick
M3
A34
Crawley
A3
Winchester
A20
Petersfield
Southampton
A23
Southampton
Regular rail services are provided from Kingston rail station to London
Waterloo, with a quickest journey time of approximately 20 minutes.
London Heathrow International Airport is located approximately
20 km (13 miles) north west of the town and London Gatwickole
International Airport is located approximately 28 km (17 miles) to the
south east, facilitating easy access to an unrivalled range of domestic
and international flights.
Brighton
A27
HAMPTONWICK
RAIL STATION
HI
GH
.
ST
KI
FAIR
A308
THE
BENTALL
CENTRE
A3
08
KINGSTON
RAIL STATION
CROMWELL RD.
R
E
RS
HO
I
FA
CLARENCE
ODEAN
IMAX CINEMA
ST.
HEMA
W
AY
HORSE
.
RD
LD
THE
KING’S FIELD
NG
E
AT
SG
W
HE
AT
FI E
RIVER THAMES
Situation
The property occupies a 100% prime position on Clarence Street,
opposite its junction with Fife Road, and between Marks & Spencer
and Miss Selfridge / Burton, in an exceptionally prominent position,
close to the entrance to the Bentall Centre. Other retailers represented
within the immediate vicinity include, Russell & Bromley, Gap, Monsoon,
H Samuel, TopShop and River Island.
M2
A2 0
Woking
Guildford
Basingstoke
M27
London
THE FAIRFIELD
RECREATION GROUND
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
Retailing in Kingston
Demographics
Kingston is a premier retailing centre and the third largest shopping
Kingston has an estimated primary catchment population of 874,000
destination in Greater London after, the West End and Croydon, with 1.4 million
sq ft of retail floorspace (PMA PROMIS). In terms of the amount of money
generated from the retail sector within Greater London centres, Kingston is
bettered only by the West End. The town has an expansive representation
of national retailers and a wide range of speciality and high end independent
retailers, in addition to a strong leisure and food & beverage offer, including
attractive riverside bars and restaurants.
Notable retailers represented within Kingston town centre include, John
Lewis (incorporating Waitrose), Marks & Spencer, Bentalls, Primark, H&M, Gap,
Superdry, Next, Zara, River Island, TopShop, TopMan, Miss Selfridge / Burton,
Uniqlo and Monsoon. Higher end and specialist retailers include Russell &
Bromley, LK Bennett, Heal’s, The North Face, Molton Brown, Timberland, The
White Company, Comptoir des Cotonniers, Reiss, L’Occitane and Jack Wills.
persons (PMA PROMIS), ranking 13th of the PROMIS centres by this
measure. Kingston dominates its densely populated catchment area
and the local population is one of the most affluent of the PROMIS
centres, ranking 32nd on the PMA Affluence Indicator. The Kingston
primary catchment population includes a particularly high proportion
of adults aged 25 to 44, and the town is projected to experience
significantly above average population growth over the period 2014
to 2019. The local population also contains a significantly above
average proportion of adults of working age categorised within the
most affluent AB social group. Kingston ranks 11th of the PROMIS centres,
in terms of the volume of comparison retail spend available in the
catchment and is forecast to see significantly above average percentage
growth in the available pool of comparison spending over the period
2014 to 2019.
Prime retailing within Kingston is focused on the pedestrianised section of
Clarence Street and the main ground floor mall of the Bentall Centre, Kingston’s
dominant covered shopping centre which fronts the northern side of Clarence
Street. The centre comprises 690,000 sq ft of accommodation, trades over four
levels, and is anchored by Bentalls department store, with a range of national
retailers including Zara, H&M and Hollister.
The local student population from the further and higher education
establishments of Kingston College and Kingston University London,
coupled with over £360 million of annual tourism expenditure
(London Development Agency), add to Kingston’s vibrancy and
importance as a retail centre.
The town centre also supports another, smaller managed shopping centre,
the Eden Walk Centre, which is situated to the south of Clarence Street and
provides some 276,000 sq ft of accommodation, with occupiers including
Boots and Heal’s.
Market Place and Church Street have become increasingly popular destinations
in recent years, attracting a number of higher end and specialist retailers,
including White Stuff, Hobbs and Jack Wills.
The subject property is located within the area known as the Eden Quarter,
which is one of Kingston’s most significant opportunities for growth. The
Eden Quarter Development Brief Supplementary Planning Document (SPD)
was adopted on 27th March 2015 and has been prepared to promote a
coordinated approach to development and to secure the best long-term
future for Kingston. The aim is to combine high quality retail, leisure and
commercial uses with active public space and residential living. Full details
are available from the Planning section of Kingston Council’s website, at
www.kingston.gov.uk.
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
The service sector accounts for 83% of total employment in Kingston,
which is above the Retail PROMIS average, and within this sector, ‘financial
& business services,’ account for 35% of local jobs, significantly above
the Retail PROMIS average. A considerable number of local residents
commute into Central London to work, underlining the importance of
the financial and business services sector.
In addition to the retailers, including John Lewis, Bentalls, Marks &
Spencer and Sainsbury’s, which are among the town’s largest employers,
other major employers within the wider area include Alliance Healthcare
and Merlin Entertainment. The Public Sector is also a major employment
source, particularly The Royal Borough of Kingston upon Thames,
Kingston Hospital NHS Trust, local schools and the further and higher
education establishments of Kingston College and Kingston University
London.
NORTH
Copyright and confidentiality Experian, 2015. © Crown copyright and database rights 2015.
Ordnance Survey 100017316. Extent of Title shown for indicative purposes only.
50 metres
Experian Goad P
Cre
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
Description
Tenancy
The property comprises an exceptionally prominent retail
The entire property is let to Hema Retail Limited, with a
unit, offering modern and well configured retail and ancillary
accommodation, arranged over ground and first floor levels.
The first floor sales area is accessed via an attractive staircase,
situated in the centre of the unit and via a customer lift at the
rear of the unit. The unit has recently been fitted out to the
current tenant’s attractive corporate style.
surety from Hema BV, and also, by virtue of an Authorised
Guarantee Agreement, French Connection UK Limited and
French Connection Group plc, for a term expiring on 17th August
2018. The lease is drawn on full repairing and insuring terms, and
the current rent is £482,000 per annum exclusive, reflecting
£327.50 per sq ft Zone A.
Accommodation
Covenant Information
The property has previously been measured in accordance
with the RICS Code of Measuring Practice (6th Edition) and
provides the following dimensions and net internal areas:
Hema is an international retailer with over 680 stores across the
Netherlands, Belgium, Luxembourg, France, Germany, Spain and
the UK. The company has approximately 10,000 employees and
distinguishes itself by developing and selling its own branded
goods, with products typically convenient, attractive, practical
and of good quality, including homewares, stationery, cosmetics
and clothing.
Gross Frontage
13.05 m
42 ft 10 in
Net Frontage
11.43 m
37 ft 6 in
Internal Width
12.61 m
41 ft 4 in
22.49 m
73 ft 9 in
219.90 sq m
2,367 sq ft
ITZA
121.80 sq m
1,311 sq ft
First Floor Sales
119.75 sq m
1,289 sq ft
First Floor Ancillary
59.92 sq m
645 sq ft
399.57 sq m
4,301 sq ft
Shop Depth
Ground Floor
Total
Tenure
Freehold. The extent of the Title is outlined in red, for
indicative purposes only, on the enclosed Goad extract.
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
Hema is a relatively new entrant to the UK, having opened its
first three stores during 2014 (Victoria Place in Central London,
Bromley and the subject property in Kingston-upon-Thames).
For the year ended 2nd February 2014, Hema BV reported a
Turnover of €1.09 billion.
French Connection Group plc is a UK based global retailer of
fashion clothing and accessories and is listed on the London Stock
Exchange.
For the year ended 31st January 2015, French Connection Group
plc reported a Sales Turnover of £178.50 million, a Loss Before
Taxes of £1.60 million and a Tangible Net Worth of £55.60 million.
French Connection Group plc has been ascribed the strongest
D&B rating of 5A1, representing a ‘minimum risk of business failure.’
Planning
The property is neither Listed nor does it lie within a Conservation Area.
VAT
We understand the property is elected for VAT and therefore VAT will be
payable on the purchase price. It is envisaged the sale will be dealt with
as a Transfer of a Going Concern.
EPC
The property has an EPC rating of D (84).
Investment Rationale
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Dominant Greater London retailing centre
Strong demographic profile of local population
Trophy asset
Freehold
100% prime retail unit
Total income of £482,000 per annum
Proposal
We are instructed to seek offers in excess of £10,500,000
(Ten Million, Five Hundred Thousand Pounds), subject
to contract and exclusive of VAT, for the freehold interest
in this property.
A purchase at this level would reflect a Net Initial Yield
of 4.34%, allowing for purchaser’s costs of 5.80%.
24 CLARENCE STREET KINGSTON-UPON-THAMES KT1 1NX
Further Information
John Burnside
John Shaw
SUBJECT TO CONTRACT
+44 (0)20 7544 2041
+44 (0)7730 817 046
[email protected]
+44 (0)20 7544 2038
+44 (0)7808 479 289
[email protected]
A copy of this brochure and additional supporting information
is available to view at: www.thinkcapitarealestate.uk/kingston
65 Gresham Street
London EC2V 7NQ
+44 (0)20 7709 4500
thinkcapitarealestate.uk
Capita Property & infrastructure Ltd (“CPI”), trading as Capita, for itself and as agent for the vendors or lessors (the “Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt has been made to ensure accuracy,
this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on the part of CPI or the Seller, (b) no such statements or descriptions are to be relied on as statements
or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements, particulars
(3) The Seller does not make or give, and neither CPI nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT
and no statement is made as to the incidence of VAT. (5) No liability is accepted and no representation is made by either CPI or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software
loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CPI would otherwise have for any fraudulent concealment or for any statements made fraudulently by it, its employees or agents.
CAPITA: July 2015
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