EUROPA HOUSE FOLKESTONE 49-55 SANDGATE ROAD, KENT, CT20 1RX
www.europahousefolkestone.com
Mixed use retail & office investment with significant development potential
ON BEHALF OF JOINT FIXED CHARGE RECEIVERS EUROPA HOUSE FOLKESTONE
INVESTMENT CONSIDERATIONS DEVELOPMENT POTENTIAL PROPOSAL
• Mixed use retail and office building located within Folkestone’s • 18,232 sq ft of vacant office accommodation over the We are instructed to seek offers in excess of prime retail pitch totalling 36,250 sq ft (3,367.7 sq m). third to eighth floor levels presenting an immediate £3,800,000 (Three Million and Eight Hundred • Freehold. opportunity for conversion to residential use through the application of Permitted Development Rights (STP). Thousand Pounds) subject to contract and • Let to NatWest Bank, Caversham Trading Ltd and Claires Accessories. UK Ltd at a low passing rent of £191,688 per annum. • The property does not fall under an Article 4 Direction. exclusive of VAT. A purchase at this level reflects • Very attractive AWULT of 32.3 years certain. a capital value of approximately £105 psf. HERITAGE COAST
GRAND BURSTIN HOTEL CREATIVE CENTRE DEVELOPMENT SEAFRONT REGENERATION PROJECT
22 -26 SANDGATE ROAD DEVELOPMENT (PD)
BOUVERIE PLACE SHOPPING CENTRE EUROPA HOUSE
FOLKESTONE BUS STATION
SANDGATE ROAD SAINSBURY’S
< FOLKESTONE TRAIN STATION
Outlines for indicative purposes only. EUROPA HOUSE FOLKESTONE
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LOCATION
Folkestone is a major retail and commercial centre situated on the south east coast of Kent, approximately 70 miles south west of central London and 7 miles south west of Dover. RAIL - High Speed Travel ROAD BUS AIR The town benefits from excellent road communications being located at the Folkestone benefits from being situated Folkestone is located on the A259 Folkestone Bus Station is located within London Ashford Airport is a eastern end of the M20 which provides direct access to Ashford, Maidstone, on the UK’s only high speed line - the which links directly with Junction 13 a 4 minute walk of the subject property 35 minute drive to the south west the M25 and London. Folkestone also marks the eastern end of the A259 HS1. The route offers direct services of the M20 and A20 for access to and provides 34 local bus services and Gatwick International Airport south coast trunk road. to London St Pancras and Stratford London and Dover respectively. including routes to Canterbury, is just over an hour to the west. The town is served by two mainline railway stations, Folkestone Central and International with a fastest journey Ashford and Dover amongst others. Folkestone West which provide regular services to nearby centres and London. time of under one hour. The terminus of the High Speed 1 (previously known as the Channel Tunnel Link) is situated to the north of the town. The nearest international station is Ashford which provides high speed trains to the continent. Mixed use retail & office building investment opportunity
Folkestone
© Crown Copyright, ES 0004. For identification purposes only. Experian Goad Plan Created: 09/05/2016 50 metres Created By: Allsop Copyright and confidentiality Experian, 2016. © Crown copyright and database For more information on our products and services: rights 2016. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 SITUATION DEMOGRAPHICS RETAILING IN FOLKESTONE
The property is situated on a pedestrianised section to the eastern side of Folkestone has a primary catchment area of 100,000 with an estimated shopping Folkestone’s prime retail offering is centred on the pedestrianised section of Sandgate Road between West Terrace and West Cliff Gardens which forms population of 57,000, which is forecasted to see significant growth over the period Sandgate Road and the surrounding streets within Folkestone’s town centre. the primary retail thoroughfare in Folkestone. Sandgate Road benefits from 2015-2020. Folkestone’s primary catchment population is adults aged over 45 with The town centre comprises a total of 0.83 million sq ft of retail, financial and strong pedestrian flow comprising a wide variety of retail, leisure, financial a high proportion of the population aged 65 and above. Whilst Folkestone has an leisure accommodation occupied by predominantly national covenants. The towns and professional services. Surrounding occupiers include; Debenhams, Lloyds above average retiree population it has seen a significant increase in young adults aged primary shopping centre is the Bouverie Place Shopping Centre which is situated Bank, Top Shop, WH Smith and Superdrug, amongst others. Folkestone railway 15-24 over the past 15 years. Between 2000 and 2011 Folkestone has seen an above on Albion Mews Road which runs parallel to the north of Sandgate Road. station is located within a 12 minute walk (0.6 miles) to the north west of average increase in total employment compared to the rest of the UK. Built in 2007, The Bouverie Place Shopping Centre is a multi-level retail scheme the subject property. anchored by ASDA on the first floor with Primark, TK Maxx, Peacocks and Next, amongst others. Prime rents in Folkestone are currently achieving in the region of £40 Zone A. EUROPA HOUSE FOLKESTONE
DESCRIPTION
The subject property comprises a prominent 11 storey, mixed use commercial building totalling 36,250 sq ft (3,367.7 sq m). There are two retail units arranged over ground and basement floor levels and separate self-contained office accommodation over the remaining 8 storeys. 49/51 Sandgate Road (Caversham Trading Ltd) Ground floor retail unit with basement ancillary accommodation totalling 5,349 sq ft (496.9 sq m). The unit provides open plan ground floor sales accommodation with a shop depth of approximately 17.6m. To the rear of the unit is ancillary storage/ office accommodation and stairwell access to the basement which is currently used as storage and staff accommodation. 53 Sandgate Road (Claires Accessories UK Ltd) Ground floor retail unit with ancillary basement accommodation totalling 1,614 sq ft (149.9 sq m). The unit provides open plan ground floor sales accommodation with a shop depth of TENANCY & ACCOMMODATION SCHEDULE approximately 17.6m. To the rear of the unit is ancillary staff accommodation and stairwell access to the basement which is Unit Tenant Name Area Sq m Area Sq ft Lease Start Lease Expiry Next Review Current Rent £/PSF currently used as storage. (ITZA) (ITZA) (PA) (ITZA) Europa House (NatWest) 49/51 Sandgate Road Caversham Trading Ltd 496.9 5,349 3/9/2010 2/9/2020 3/9/2015 £65,000 £12.15 (168) (1,810) (£35.91) NatWest occupies the basement, ground and two upper floors 53 Sandgate Road Claires Accessories UK Ltd 149.9 1,614 24/6/2012 3/2/2017 £20,300 £12.58 of Europa House which provides a retail unit with office and (49.6) (534) (£38.01) ancillary accommodation totalling 11,055 sq ft (1,027 sq m). Europa House, Sandgate Road The unit is accessed by a ground floor lobby which provides a designated frontage onto Sandgate Street and direct access to Basement / Ground / First / Second National Westminster Bank Plc 1,027 11,055 29/9/1975 28/9/2074 29/9/2017 £95,000 £8.06 the first floor banking hall. The second floor comprises office Third Floor Vacant 511.1 5,501 accommodation and a business centre, whilst the basement is Fourth Floor Vacant 468.1 5,039 used for the bank’s strong room. Access to all levels is provided by internal stairwells within the unit and a lift which is also Fifth Floor Vacant 176.4 1,899 accessed through the lobby. NatWest benefits from three parking Sixth Floor Vacant 179.4 1,931 spaces to the rear which are let on separate leases (See tenancy Seventh Floor Vacant 179.4 1,931 and accommodation schedule). Eighth Floor Vacant 179.4 1,931 Europa House (Vacant Offices) Roof antenna aerial 1 Cornerstone Telecommunications 19/2/2016 18/2/2031 £5,300 The remainder of Europa House comprises 6 storeys of vacant self-contained office accommodation totalling 18,232 sq ft Roof antenna aerial 2 Vodafone Ltd 29/4/2000 30/6/2015 £4,528 (1,693.8 sq m) arranged over the third to eighth floors. The vacant Car Spaces X 3 National Westminster Bank Plc 1/1/1980 31/12/2029 £1,560 accommodation is situated immediately above the NatWest unit Total 3,367.7 36,250 £191,688 with access provided via a communal entrance at ground floor level fronting Sandgate Street. The offices benefit from stairwell and lift access from ground floor level. AWULT The ninth floor provides plant accommodation. The property provides an attractive AWULT of 32.3 years (certain). Europa House, Folkestone
Mixed use retail & office building investment opportunity
Bank
6 3
DEVELOPMENT POTENTIAL Rising (Subject to necessary consents) LB Posts Bollard 8 Rising Bollard The property provides a significant 3
0 development opportunity by means of 4
1 immediate conversion of the vacant upper 4 offices to residential through the application 2 3 4 Posts of Permitted Development Rights, subject 4 Bank
to necessary consent. The site is not subject 4 D
A 4 to an Article 4 restriction. O 7 6 4 R E In order to establish the development T A potential, the Vendor has commissioned G D a planning report which provides a N A comprehensive review of the development S potential in regards to planning. A full copy of the planning report is available upon FOLKESTONE SEAFRONT REDEVELOPMENT request or via the data room: www.europahousefolkestone.com Folkestone Harbour Company (FHC) have recently confirmed that work on the regeneration of Folkestone Harbour and seafront will begin this The report states there is the potential to year. The residential-led development allows for provisional directive progress a comprehensive redevelopment e permission of up to 1,000 residential units and a mix of commercial s
of the site. There is no evident planning or u floorspace totalling 10,000 sq m. The Council’s ambition is to create a
5 o environmental constraints requiring the 7 vibrant public realm enlivening the seafront with a mix of new uses whilst H retention of the existing built development. a helping to link the seafront with the town centre. The development serves p
to build upon the substantial regeneration work that has already taken
The site complies with Shepway District 5 ro 9 u place in the Creative Quarter in Folkestone’s Old Town. Council’s planning policies that seek E
to direct major new development to Post Office It is forecasted that the development will boost investor awareness of
6 sustainable locations and to make the 1 Folkestone and have significant socio-economic benefits including further most efficient use of brownfield land. job creation and an increase in tourism. There would also be significant
infrastructure improvements. The FHC will firstly commence work on 6 Furthermore, the site is located within 3 Rising Bollard sea defences before applying for planning permission for the first phase the ‘Folkestone Town Centre Potential of development.
Redevelopment Focus Area’ and as such
6 there have been a number of proposed 5 P and existing residential led schemes O U present within close proximity to the N subject property. These include 46 Bank D
Sandgate Road (opposite the site), W A 22-26 Sandgate Road, 29-33 Sandgate Y Road, 16-18 Guildhall Street and Monument House (23 West Terrace). 1 The report concludes that in planning terms, subject to the necessary consent, there is the potential to progress a conversion 5 of Europa House to residential use under W Permitted Development Rights or undertake E 0m 5m 10m 15m S 7 a comprehensive redevelopment of the T TE 1 to 25 site (subject to planning). R R Ordnance Survey © Crown Copyright 2016. All rights reserved. © Crown Copyright,A ES 0004. For identificationLicence number 100022432. purposes Plotted only. Scale - 1:657 ©Farrells C E COVENANT Caversham Trading Ltd Claires Accessories UK Ltd National Westminster Bank Plc D&B Rating 5A 1 D&B Rating 4A 1 D&B Rating 5A 1 Trading as BrightHouse and formed in 1994 Caversham Formed in 1961 Claires Accessories is a retailer of Formed in 1968 NatWest is a large retail and commercial bank in the Trading Ltd is the UK’s leading rent-to-own retail chain accessories and jewellery primarily aimed toward girls United Kingdom with a network of 1,400 branches and 3,400 cash machines. with over 270,000 customers and over 300 stores. and young women with 3,469 stores in 36 countries. Currently the bank has 7.5 million personal customers and 850,000 small business The business has produced the following headline The business has produced the following headline accounts and is ranked among the top 10 largest banks in the world by assets. accounts over the last 3 years: accounts over the last 3 years: The business has produced the following headline accounts over the last 3 years:
31 Mar 2015 31 Mar 2014 31 Mar 2013 31 Jan 2015 01 Feb 2014 02 Feb 2013 31 Dec 2014 31 Dec 2013 31 Dec 2012
Turnover £67,479 £70,032 £75,961 Turnover £125,298 £120,629 £127,666 Turnover £9,697,000 £11,316,000 £10,297,000 (£,000’s) (£,000) (£,000)
Pre-Tax Profit £2,759 £7,131 £8,235 Pre-Tax Profit £1,295 £7,917 £3,232 Pre-Tax Profit £2,577,000 (£6,805,000) (£3,322,000) (£,000’s) (£,000) (£,000)
Total Net Worth £56,365 £53,640 £44,253 Total Net Worth £17,996 £16,167 £16,860 Total Net Worth £16,009,000 £12,075,000 £19,964,000 (£,000’s) (£,000) (£,000)
TENURE EPC VAT DATAROOM
Freehold. The property has an EPC rating of C56. The property is elected for VAT. Further information is provided in the data room. For access please EPC available upon request. register on the following website www.europahousefolkestone.com.
PROPOSAL Offers in excess of £3,800,000 (Three Million and Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a capital value of approximately £105 psf.
For further information or to make arrangements for viewing please contact:
National Investment Residential Investment & Development James Salmon Liam Stray James Hood 020 7543 6880 020 7543 6769 020 7344 2637 [email protected] [email protected] [email protected] www.allsop.co.uk
RECEIVER CAVEAT: The property is being marketed for sale on behalf of Joint LPA Receivers (acting as agent for the registered proprietors of the property) and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the property, including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability.
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 09.16