21-23 HIGH STREET UXBRIDGE UB8 1JD

21-23 HIGH STREET UXBRIDGE UB8 1JD
PRIME GREATER LONDON REVERSIONARY RETAIL INVESTMENT
INVESTMENT SUMMARY
• Uxbridge is an affluent Greater London
town and a dominant South East
commercial centre
• Situated in a prime High Street trading
location and directly adjacent Intu Uxbridge
and Uxbridge Underground Station
•
Recently refurbished prominent retail
property totalling 7,431 sq ft
• Let on single FRI lease to Lloyds Bank
Plc, providing 9.4 years of Investment
Grade income
• £200,000 pa rent, equating to a low ITZA
rent of £75.00 per sq ft, rebased at recent
lease renewal
•
Provable rents of £90-95 per sq ft ITZA in
prime Uxbridge indicating excellent rental
growth potential
• Freehold
• Offers in excess of £3,800,000 (Three
Million Eight Hundred Thousand
Pounds) reflecting an attractive net initial
yield of 5.00%, assuming purchasers’
costs of 5.80%
3
Harrow
2
M40
A355
1
16
Slough
7
6
M25
A4
15
Windsor
A332
14
A312
4
3
4A
A40(M)
Ealing
2
1
Hammersmith
Heathrow
A316
Staines
Richmond
CENTRAL
LONDON
A205
1
A23
Kingston
12
LOCATION
A405
A4
13
M3
1
A40
A408
4B
M1
21-23 HIGH STREET
UXBRIDGE
A412
5
A308
ll
A41
A40
A3
Croydon
11
DESCRIPTION
Uxbridge is an affluent Greater London commercial,
administrative and commuter10town located approximately
18.5 miles north west of Central London and 6.3 miles north
of Heathrow Airport, within the M25.
Uxbridge is home to a high number of corporate office
occupiers, Brunel University and Uxbridge College, accounting
for approximately 40,000 office workers and 25,000 students
respectively.
7
Uxbridge Underground Station is located approximately 50 metres
from the property, providing both Piccadilly and Metropolitan Line
services; with a journey time of 45 minutes to Central London.
Retailing is focused on the High Street and the recently
rebranded Intu7/8Uxbridge centre (previously the Chimes Centre)
which comprises 420,000 sq ft over three levels together with
an Odeon Multiplex.
The Pavilions Shopping Centre provides
M23
387,000 sq ft of retail floorspace.
M25
Uxbridge has excellent road communications being situated
1.5 and 2.5 miles south of the A40 and M40 (Junction 1)
respectively, 4 miles east of the M25 (Junction 16) and 5 miles
north of the M4 (Junction 4).
DEMOGRAPHICS & RETAIL PROFILE
The demographic profile of Uxbridge indicates above average
affluence with over 56% of the population categorised in the
AB and C1 social groups and over 77% of the population
owning at least one car.
Uxbridge has an extensive catchment population of 349,000
people extending as far as Rickmansworth to the north and the
M4 to the south, attracting a regular shopping population of
196,000 people.
SITUATION
The property comprises three separate retail units which have
been amalgamated behind the facades.
21 and 22 High Street have been combined to create a single
well configured banking unit at ground floor level with secure
storage provided at basement level. The first and second floor
levels comprise open plan office accommodation, spreading
across all three properties and providing open plan offices and a
‘Club Lloyds’ area with partitioned customer offices at first floor.
The second floor provides further office accommodation and a
staff kitchen and break-out area. Male and female staff WCs are
located on both first and second floors.
The subject property is located close to the entrance of
Uxbridge underground station and the recently renamed Intu
Uxbridge shopping centre, commanding a prominent position
on Uxbridge’s9 prime pedestrianised retail pitch.
The property also benefits from a basement, which currently
houses the bank’s vaults and ancillary storage space. The
properties have direct access to a rear service yard, which also
provides eight car parking spaces.
The property also benefits from significant footfall between the
The Pavilions and Intu Uxbridge shopping centres. The entrance
to the Pavilions is within 150 metres of the property. The two
shopping centres both provide extensive car parking facilities
with Intu Uxbridge having a capacity in excess of 1,500 spaces,
supplying most of the town’s main parking provision.
Lloyds comprehensively refurbished the property in 2014,
including the refitting of all customer facing areas.
23 High Street comprises a self-contained ground floor retail unit
with an open plan sales area to the front and partitioned kitchen
and staff WC to the rear. To the rear is a fenced patio area with
wooden decking.
ACCOMMODATION
The property has been measured in accordance with the RICS
Code of Measuring Practice (6th Edition) and provides the
following approximate Net Internal Area:
21/22 High Street
RETAIL
SQ M
SQ FT
Ground floor area
184.87
1,990
ITZA
136.47
1,469
Basement
97.36
1,048
1st floor offices
185.43
1,996
2nd floor offices
1183.29
1,973
RETAIL
SQ M
SQ FT
Ground floor area
39.39
424
ITZA
33.21
357.5
Total
690.34
7,431
23 High Street
TENURE
The property is held Freehold.
TENANCY
The property is let to Lloyds Bank Plc on a full repairing and
insuring lease for a term of 10 years commencing on 20th June
2014, providing 9.4 years unexpired.
The new lease has been agreed at a rebased rent of £200,000 per
annum equating to £75.00 per sq ft ITZA. The lease is subject to
an upward-only rent review on 20th June 2019.
23 High Street is not occupied by Lloyds. Their subtenant has
recently vacated and Lloyds is in the process of reletting.
COVENANT INFORMATION
Lloyds Bank Plc is the United Kingdom’s leading retail and
commercial bank offering a comprehensive range of financial
products and services including current accounts, savings,
mortgages, loans and credit cards. With 1,300 high street
branches, it is backed by online, mobile and telephone banking,
and a network of Commercial Banking and Private Banking
relationship managers.
Lloyds Bank plc is a wholly owned subsidiary of Lloyds Banking
Group plc and is one of the main operating companies of the
Group. Lloyds Bank merged with TSB in 1995 to form Lloyds
TSB, one of the largest forces in British domestic banking. The
new group continued to expand, and in 2000 acquired Scottish
Widows. In 2009 Lloyds Banking Group was created when Lloyds
TSB Group acquired HBOS. In September 2013 Lloyds TSB once
again became two separate banks - Lloyds Bank and TSB Bank.
For further information please visit www.lloydsbank.com.
Lloyds Bank Plc (Co. No. 2065) has a D&B Rating of 5A1. The last 3 years’ audited accounts are summarised as follows:
31 Dec 2013 £000’s
31 Dec 2012 £000’s
31 Dec 2011 £000’s
53,977,000
55,410,000
44,644,000
894,000
(474,000)
(1,531,000)
Tangible Net Worth
39,444,000
43,593,000
45,387,000
Net Current Assets (Liabilities)
61,444,000
(309,770,000)
(238,292,000)
Sales Turnover
Profit / (Loss) Before Taxes
RENTAL COMMENTARY
Recent open market letting evidence suggests that a headline rental level in the region of £90-95 per sq ft ITZA is appropriate for the
property, indicating a reversion at the next rent review in 2019. Recent lettings include:
Address
Tenant
Transaction
Date
ITZA PSF
162 High Street
Five Guys
New 15 year lease
Jan-14
N/A - A3 use
£28.72 per sq ft overall
163 High Street
Boots
Lease renewal (10 years)
Sep-13
£105.70
167 High Street
Ladbrokes
New 15 year lease
Sep-13
£114.30
155 High Street
Deichmann Shoes
New 10 year lease
May-13
£91.50
164 High Street
Pret a Manger
New 5 Year lease
Mar-13
£133
174 High Street
Santander
Rent review
Aug-10
£110
50 High Street
Metro Bank
New 15 year lease
Jun-10
£110
The Uxbridge office market has been particularly buoyant over the past 18 months, with prime office rents standing at £32 per sq ft
and further rental growth is anticipated due to a lack of supply.
INVESTMENT COMMENTARY
Demand for well let, secure income retail investments with good growth prospects has been consistently strong. Recent bank
investment deals in comparable locations include:
Date
Address
Tenant
Oct 14
London, 19-21 Golders Green Road
Natwest
Oct 14
Surbiton, 1 Claremont Road
Sep 14
Unexpired Term
Price
Yield
12 years
£1,660,000
4.08%
Lloyds
7 years
£1,170,000
3.88%
Wood Green, 6-7 High Road
Bank of Scotland plc
11.5 years
£3,000,000
4.73%
June-14
Wood Green, 62 High Road
Barclays
11 years
£4,150,000
4.10%
May-14
Chiswick, 308 Chiswick High Road
Lloyds
8 years
£5,520,000
4.28%
Apr-14
Staines, 61 High Street
HSBC
6 years
£3,600,000
5.25%
Mar-14
Twickenham, 2 York Street
Barclays
12 years
£ 2,720,000
3.60%
EPC
PROPOSAL
The property has an EPC rating of C with a score of 67.
We are instructed to seek offers in excess of £3,800,000 (Three Million Eight
Hundred Thousand Pounds) reflecting an attractive net initial yield of 5.00%,
assuming purchasers’ costs of 5.80%.
VAT
Adopting a sensible ERV of £90 per sq ft ITZA and £17 per sq ft on the office
accommodation, this reflects a reversionary yield of 5.60% in 2019 and an equivalent
yield of 5.47%.
The property has been elected for VAT.
VIEWING AND FURTHER INFORMATION
For further information or to arrange a viewing please contact:
5, Aldermanbury Square,
London EC2V 7BP
Richard Talbot-Williams
[email protected]
Hugh Yates
[email protected]
Tel: +44 (0) 20 7338 4244
Tel: +44 (0) 20 7338 4336
Mob: +44 (0) 7795 114684
Mob: +44 (0) 7881 249811
Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited and Farm Street Real Estate Advisors for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that:
1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending
purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory
& Property Management UK Limited and Farm Street Real Estate Advisors nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: unless
otherwise stated all prices and rents are quote exclusive of VAT. Property Misdescriptions Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Feb 2015.
For further information in relation to other investment sales from BNP Paribas Real Estate, please log on to www.realestate.bnpparibas.co.uk
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