FREEHOLD HIGH STREET INVESTMENT OPPORTUNITY

12 South Street Bishop’s Stortford CM23 3AT 12 South Street, Bishop’s Stortford CM23 3AT

Investment Summary

• Bishop’s Stortford is an affluent commuter town

• Prominent freehold property in prime pitch

• Total accommodation of 539.11 sq m (5,803 sq ft), with well configured retailing space

• Let to Waterstones Booksellers Limited

• Total current rent of £90,000 per annum exclusive, reflecting £75.70 per sq ft Zone A

• Estimated rental value of £95,000 per annum exclusive, reflecting £80.00 per sq ft Zone A

• Seeking offers in excess of £1,400,000 (One Million, Four Hundred Thousand Pounds), subject to contract and exclusive of VAT

• A purchase at this level would reflect aNet Initial Yield of 6.08%, a Reversionary Yield of 6.41% and a Nominal Equivalent Yield of 6.35%, allowing for purchaser’s costs of 5.80% Location Retailing in Bishop’s Stortford Bishop’s Stortford is an affluent market town which dates from Bishop’s Stortford’s retailing provision is approximately 0.64 million sq ft, with South Street and Potter Street being the Roman times. It is located 45 km (28 miles) south of and 56 km (35 prime pitch. Major national retailers represented there include Marks & Spencer, Boots, WH Smith and Burton / Dorothy miles) north of Central London. Perkins. There is also a strong representation of upmarket retailers, including Fat Face, Crew Clothing, Phase Eight and Gerry Weber, making the town centre retail offer vibrant and attractive. The town benefits from excellent transport connections, making it a desirable commuter town. It is located close to Junction 8 of the M11 motorway, providing The high street retail offer is complemented by the 225,000 sq ft Jackson Square Shopping Centre, anchored by Sainsbury’s

access to the and London to the south. It is also located on the and Next. The scheme’s car park provides the town’s main shopper car park and facilitates a circular shopping route

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A120, providing access to Braintree and to the east. encompassing South Street.

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Rail services are provided from Bishop’s Stortford rail station to London Liverpool HA N K D O

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Street, with a quickest journey time of 35 minutes. is on Situation R D T

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the town’s doorstep, located 5 km (3 miles) to the east. The airport is London’s S

Bedford T M11 The property occupies a prominent position on the western side of South Street, diagonally opposite Marks & Spencer. third busiest, largely providing domestic and European flights.A11 T A1 (M) C Other retailers represented nearby include Crew Clothing, Burton / Dorothy Perkins, Specsavers, Clinton’s and Steamer A421 N B O E Trading Cook Shop. Haverhill R M1 Biggleswade L BRIDGE ST A505 L E S H

H Saffron I A10 Walden L L ILL Milton Keynes DM WIN P C O H Bishop’s Stortford T T U H LONDON T

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LONDON STANSTED S

Stevenage C R C T H A A AIRPORT Braintree S U

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Bishop A120 T W S

Stortford D A T D Y E R Sainsbury’s

A1 (M) D L

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ILL A D M11 12 M1 DM 50 IN Waterstones A41 St. Albans W

A10

D Cheshunt R

A413

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Watford Enfield M25 A I

M25 A12 V High L

E M40 Wycombe T

R Edgeware R

S A406 Brentwood D O

LONDON R I P SOUTHEND D A127 T A1 AIRPORT N Romford E S O Wembley T L Stratford Southend-On-Sea P L Slough A40 South A E LONDON LONDON CITY Ockendon D M4 AIRPORT A13 GRANGE RD LONDON Reading Dartford S

Twickenham A205 O

Bracknell RD U Kingston A2 TON TATION RD W T S

upon Thames Bromley NE L H

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Croydon

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M2 L C Bishop’s T N

H Woking S

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A23 M26 A Stortford

D Leatherhead C Caterham R

Sevenoaks Maidstone S Rail Station RD A3 M25 WICK T WAR

Guildford A21 M20 M23 Tonbridge CR A24 E A22 S C LONDON E GATWICK N AIRPORT T East 12 South Street, Bishop’s Stortford CM23 3AT R Grinstead D

Crawley

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U N 12 South Street, Bishop’s Stortford CM23 3AT

Demographics

The Bishop’s Stortford primary catchment population is 79,000 persons (PMA PROMIS). The local population is one of the most affluent of the PROMIS catchments, ranking 12th on the PMA Affluence Indicator. The Bishop’s Stortford area contains a significantly above average proportion of adults categorised within the most affluent AB social group and per capita retail spending levels are significantly above the PROMIS average (CACI).

The service sector accounts for 74% of total local employment, with ‘financial & business services,’ accounting for 30% of this figure.

Description

The subject property comprises a purpose built, modern, mid-terraced retail unit, arranged over ground and first floors, attractively fitted out to the standard corporate style of the tenant.

Sales accommodation is provided on the ground floor and part of the first floor is now also utilised by the tenant for retailing, with the front section of the first floor occupied by Cafe W, Waterstones’ branded coffee shop. The rear of the first floor is used for ancillary accommodation, staff welfare and storage facilities.

The unit was originally let with the first floor as ancillary accommodation. The tenant subsequently installed a sales staircase and customer lift. Bishops Stortford

Accommodation

The net internal areas stated below have been provided by our client and we understand these were utilised at a previous rent review.

Gross Frontage 8.83 m 29 ft 0 in

Net Frontage 7.48 m 24 ft 6 in

Internal Width 8.19 m 26 ft 10 in

Shop Depth 32.98 m 108 ft 2 in

Ground Floor 324.60 sq m 3,494 sq ft

ITZA 99.78 sq m 1,074 sq ft

First Floor Ancillary 214.51 sq m 2,309 sq ft

Total 539.11 sq m 5,803 sq ft

Tenure

Freehold. The extent of the Title is outlined in red, for indicative purposes only, on the enclosed Goad extract.

Tenancy

The property is let to Waterstones Booksellers Limited, for a term of 20 years from 21st November 1998, expiring 20th November 2018. The lease is drawn on effectively full repairing and insuring terms and provides for five yearly, upward only rent reviews. The current N rent is £90,000 per annum exclusive, reflecting £75.70 per sq ft Copyright and confidentiality Experian, Zone A. The November 2013 rent review is currently outstanding. 2015 © Crown copyright and database rights 2015. Ordnance Survey 100019885. Extent of Title shown for indicative purposes only.

12 South Street, Bishop’s Stortford CM23 3AT Copyright and confidentiality Experian, 2015. © Crown copyright and database rights 2015. Ordnance Survey 100019885 12 South Street, Bishop’s Stortford CM23 3AT

Rental Value Covenant Information

We are of the opinion the current rental value for the subject INVESTMENT RATIONALE Waterstones was acquired by A&NN Capital Fund Management property is £95,000 per annum exclusive, reflecting £80.00 per (owned by Russian billionaire Alexander Mamut) in June 2011, sq ft Zone A. This is supported by the June 2015 letting of • Affluent London commuter town from HMV Group, for £53 million. Subsequently, Waterstones 4 South Street, to Premier Travel, at the same Zone A level. has invested in the business, refurbishing stores across its • Freehold estate, creating Wi-Fi hot spots and new cafés within stores, and establishing a new staff training programme. Planning • Prime retail unit For the year ended 26th April 2014, Waterstones Booksellers The property is not Listed but does lie within the Bishop’s • Modern, well configured accommodation Limited reported a Sales Turnover of £374.55 million and has Stortford Conservation Area. • Let to Waterstones Booksellers Limited been ascribed a D&B rating of N2, indicating a financial strength which is negative but representing a ‘lower than average risk of • Total income of £90,000 per annum business failure.’ • Reversionary Asset Management • Asset management opportunities The outstanding November 2013 rent review provides an opportunity to potentially increase the rental income. In addition, there is potential to negotiate a lease extension with the tenant, as the November 2018 lease expiry approaches. 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). PROPOSAL

We are instructed to seek offers in excess of £1,400,000 (One Million, Four 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 6.08%, a Reversionary Yield of 6.41% and a Nominal Equivalent Yield of 6.35%, allowing for purchaser’s costs of 5.80%.

12 South Street, Bishop’s Stortford CM23 3AT 12 South Street, Bishop’s Stortford CM23 3AT

SUBJECT TO CONTRACT

John Burnside John Shaw 020 7709 4500 +44 (0)20 7544 2041 +44 (0)20 7544 2038 thinkcapitarealestate.uk +44 (0)7730 817 046 +44 (0)7808 479 289 [email protected] [email protected]

Capita, 65 Gresham Street, London EC2V 7NQ

A copy of this brochure and additional supporting information is available to view at: www.thinkcapitarealestate.uk/bishopsstortford

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 August 2015. Designed by Capita’s Real Estate Design.