sign in sign up
<<
Home , Berkhamsted, Welwyn Garden City

4-24 HOWARDSGATE

& 6 - 8 WIGMORE SOUTH

WELWYN GARDEN CITY, AL8 6BQ

Prime Pitch Retail Parade INVESTMENT SUMMARY

• Prime pitch retail parade located in the centre of Garden City.

• is an affluent, well-connected South East . • Prominent position on Howardsgate, Welwyn Garden City’s dominant high street retail pitch. • Excellent footfall location, with Sainsbury’s supermarket and car park to the rear, accessed via Wigmore South.

• Nearby occupiers include Cote Brasserie, Bills, Pizza Express, Halifax, Costa and Prezzo. • Currently configured as 8 retail units and 4 residential apartments. • The retail is multi let to eight tenants including Superdrug, Zizzi’s Restaurant, Martins & Co, Cancer Research and The Salvation Army. • Attractive Average Weighted Unexpired Lease Term of 8.2 years to expiries and 5.9 years to breaks.

• Total passing rent of £406,450 per annum. • Reversionary potential to £413,171 per annum. • Highly secure income with 93% rated by Creditsafe as Low Risk or Very Low Risk covenants. • Strong trading pitch with recent lease regears demonstrating tenant commitment to the location and only two unlet units on Howardsgate. • Virtual freehold - 999 year interest at a peppercorn rent. • Asset management opportunities to regear leases with existing occupiers, convert the office space to residential.

• Seeking offers in excess of£5,600,000 .

Allowing for £1,100,000 for the residential element and Purchaser’s costs of 6.61% this reflects an attractive Net Initial Yield 7.36%.

2 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 3 LOCATION

Welwyn Garden City is an affluent Welwyn Garden City benefits from strong transport links. Junctions 4, 5 and 6 of the A1(M) are all within 2 miles   commuter town in (3 km) of the town centre, which provides a north to CONNECTS located 22 miles (35 km) north of south arterial route between and the north east WELWYN AIRPORT TO 70 Central London. of . GARDEN CITY 13 MILES DESTINATIONS

The town benefits from an excellent position within Junction 23 of the M25 Motorway intersects with Junction London’s northern commuter belt. 1 of the A1(M) just 8 miles (13 km) to the south.

Regular direct rail services to London (Kings Cross and Moorgate) are provided from Welwyn Garden City with   fastest journey times of 28 and 46 minutes respectively KINGS CROSS MOORGATE making the town desirable for London commuters. 28 MINS 46 MINS Luton Airport is conveniently located 13 miles (20 km) north west of the town, which connects to 70 national 9 MILES and international destinations. 

LUTON N 13 MILES STEVENAGE LUTON STANSTED

Bicester LUTON WELWYN WELWYN GARDEN CITY Kidlington GARDEN CITY M11 Hemel M1 Harlow Hempstead HATFIELD Oxford A1(M) ST ALBANS HATFIELD A413 A41 8 MILES 4 MILES A4010 M25

Abingdon M1 Barnet Enfield Chigwell Brentwood M11 Didcot M40 Beaconsfield M25 CENTRAL LONDON Harrow Wembley 22 MILES M25 Maidenhead Uxbridge CENTRAL CITY A40 LONDON

M4 A4 Woolwich Richmond Windsor HEATHROW Dartford 4 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 5 A20 A24

Newbury M25 M20 A23 A24 M25 Woking M26 M3 M25 Basingstoke

M23

GATWICK M3

Crawley WELWYN GARDEN CITY RETAIL OFFER

Welwyn Garden City has an estimated Welwyn Garden City is one of the most affluent The town’s prime restaurant and convenience retail offer is centred PROMIS catchments, with a significantly above average around Howardsgate, an attractive square with central landscaped shopping population of approximately proportion of adults categorised within the most gardens, which fronts The Howard Centre to the east. 90,000 with the area expected to affluent AB social group (which includes those in benefit from significantly above average managerial and professional occupations). Howardsgate is anchored by a Sainsbury’s supermarket which is adjacent to the subject property alongside John Lewis and

population growth in the next 5 years. The town centre’s retail provision extends to department stores. Howardsgate’s strength as a retail location is approximately 520,000 sq ft which is anchored by Land reflected in there being almost no unit availability. Securities’ Howard Centre. Key restaurants on Howardsgate include: The Howard Centre provides 58 units across 240,000 sq ft and is the town’s fashion retail focus with key occupiers below:

in addition to Boots, Halford’s, Holland & Barrett and Superdrug.

BRIDGE ROAD N

BRIDGE ROAD

PARKWAY

PARKWAY

STONEHILLS HOWARDSGATE

HOWARDSGATE 10 MIN WALK

THE HOWARD CENTRE

SHREDDED WHEAT

DEVELOPMENT SITE FRETHERNE ROAD

BROADWATER ROAD

6 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 7 N SITUATION

The Property is prominently located on the southern side of Howardsgate at its corner with Wigmore South and Parkway.

In addition to the footfall generated from Howardsgate, Wigmore South is a busy link to the entrance and c.380 space car park for the Sainsbury’s supermarket which is immediately to the rear of the Property.

THE HOWARD CENTRE

VACANT IVORY DENTAL CLINIC

ENT TO ADECCO

BACKHOUSE BETTING OFFICE

8 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 9 Welwyn Garden City has seen a sustained The former Shredded Wheat site at Broadwater Road, a 10 minutes walk from Howardsgate, is the town’s KEY increase in residential accommodation largest development with resolution to grant planning through the conversion of offices under being achieved in December 2018 for the development DEVELOPMENT Permitted Development Rights. of a residential led mixed use scheme, comprising 1 million sq ft including c.1,454 apartments. This should further boost retail spend within the town. Approximately 500,000 sq ft of offices are understood to have been converted, Plans are also being trialled by the Council along Howardsgate and Stonehills for a reduced speed limit which has led to an increase in the density and part pedestrianisation to further enhance the retail of the town’s shopping population. experience.

APPROX. 500,000 SQ FT OF OFFICE SPACE CONVERTED TO RESIDENTIAL ACCOMMODATION

NEW RESIDENTIAL SCHEME 10 MINS WALK FROM HOWARDSGATE

CGI of the proposed scheme for former Shredded Wheat factory

10 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 11 DESCRIPTION

The Property comprises an attractive The Property forms half of an island block with frontage to Howardsgate and benefits from retail parade configured as eight units. rear service access. Two of these are capable of subdivision, while independent units can equally be The upper parts in the main comprise residential accommodation which has been amalgamated. sold off. Unit 10 and 22/24 Howardsgate are the only units to include first floor accommodation. There is basement accommodation accessed via Parkway.

SALE DEMISE SOLD OFF INTEREST SALE DEMISE SOLD OFF INTEREST SALE DEMISE

For indication purposes only

12 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 13 TENANCY TENURE

The Property is let in accordance with the below tenancy schedule and provides an 999 year long leasehold interest less 10 days, from 3 December 2015 Average Weighted Unexpired Lease Term of 8.2 years to expiries and 5.9 years to breaks. at a peppercorn rent.

Tenant GIA Rent Rent ERV ERV Unit Floor ITZA Lease Start Lease Expiry Break Date Rent Review Comments (Trading As) (Sq Ft) (£ Pa) (£ ZA) (£ Pa) (£Psf / ZA) 4/6 Azzurri Restaurants Ltd Lease guaranteed by Azzurri Ground 3,744 - 15-Feb-02 14-Feb-27 - 15-Feb-22 £75,000 £20.03 £75,000 £20.03 Howardsgate (Zizzi’s) Central Ltd. 10 Individuals Ground 1,426 D2 consent. 849.92 12-Mar-15 11-Mar-40 - 12-Mar-20 £26,000 £29.00 £26,000 £29.00 Howardsgate (Ivory Dental Clinic) First 560 Rent deposit in place. 12/14 Sold off on 999 year lease. Quacar Investments Corp. - - - 30-Jun-14 18-Jun-3013 - - £250 - £250 - Howardsgate Occupied by HSBC. 16 ECP Lettings Ltd Ground 990 599.08 23-Dec-16 22-Dec-26 23-Dec-22 23-Dec-21 £33,000 £55.08 £33,000 £55.08 Lease guaranteed by Mr S. Dooley. Howardsgate (Martins & Co) Rent increased at Feb-18 review by 18 Salvation Army Trading Ground 918 587.50 07-Feb-13 06-Feb-23 - - £32,500 £55.32 £32,500 £55.32 £1,500 pa. Howardsgate Company Ltd Feb-18 break not exercised. 20 Cancer Research UK Ground 910 585.75 31-Mar-15 30-Mar-25 30-Mar-20 31-Mar-20 £30,500 £52.07 £32,220 £55.01 Howardsgate Ground 4,176 Vendor to top up stepped rent to year 22/24 Superdrug Stores Plc 1,536.50 29-Sep-18 28-Sep-28 29-Sep-23 29-Sep-23 £95,000 £60.01 £95,000 £60.01 5 level. See Note 1. Tenant break Howardsgate First 560 option subject to £23,750 penalty. H. Backhouse 6/8 (Baker Street) Ltd Ground 1,023 709.50 22-Nov-02 21-Nov-22 - £35,500 £50.04 £35,500 £50.04 Wigmore South (Backhouse Bookmakers) York House Lease surety from Office Angels Ltd. Adecco UK Ltd First 1,287 - 17-Aug-18 16-Aug-23 17-Aug-21 £25,000 £19.43 £25,000 £19.43 Wigmore South PDR consent for two flats. See Note 2. Denmark House Vacant Basement 2,665 - - - - - £0 - £5,000 £1.88 Parkway Commercial Sub Total 15,594 £352,750 £359,471 8 Private Individual Flat 1 829 15-Nov-19 £15,300 £15,300 2 bedroom, 2 bathroom. Howardsgate 8 Private Individual Flat 2 549 08-Nov-19 £12,600 £12,600 2 bedroom, 1 bathroom. Howardsgate 4 Private Individual Flat 3 926 11-Sep-19 £15,300 £15,300 2 bedroom, 1 bathroom. Wigmore South 4 Private Individual Flat 4 441 17-Mar-19 £10,500 £10,500 1 bedroom, 1 bathroom. Wigmore South Residential Sub Total 2,745 £53,700 £53,700 Totals 18,339 £406,450 £413,171

Notes: 1. Rent subject to stepped rents as part of lease renewal. Year 1 £75,000 pa, Year 2 £80,000 pa, Year 3 £85,000 pa, Year 4 £90,000 pa, Year 5 £95,000 pa. 2. Permitted Development Rights for 840 sq ft / 78sq m 2 bedroom, 1 bathroom flat and 484 sq ft / 45 sq m 1 bedroom 1 bathroom flat.

14 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 15 The office accommodation currently Welwyn Garden City benefits from PERMITTED let to Adecco provides future potential RETAIL a well trading, compact high street for conversion to residential use via retail pitch, reflected in the lack of DEVELOPMENT Permitted Development Rights. MARKET available space.

The vendor has obtained consent under PDR for the The Property and the surrounding retail offer benefit from conversion of this space to two residential units, as shown strong tenant retention levels and limited available space. in the below table and layout plan. Retail rental levels remain at a significant discount to Welwyn’s strong commuter links render it a desirable surrounding major centres. Welwyn therefore provides very residential location, as evidenced by the strength of sustainable rental tone with future rental growth potential. demand for apartments in particular. Recent evidence supports Permitted Development apartment pricing of Superdrug have recently demonstrated their commitment £400 per sq ft plus. to the town, renewing their lease at £60 Zone A, reflecting the prime position and prominence of their unit.

PROPOSED FIRST FLOOR PLAN Snappy Snaps renewed their lease in December 2018 at an understood rent in excess of £55 Zone A.

We consider Snappy Snaps premises to an occupy inferior trading position to the Property.

Flat Type GIA Sq M GIA Sq Ft 1 1 Bed 45 484 2 2 Bed 78 840 Totals 123 1,324

16 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 17 SUPERDRUG STORES PLC 93% of the commercial income is rated COVENANT by Creditsafe as Low Risk or better. Superdrug is the UK’s second largest health and beauty retailer, operating across 800 stores, with c.200 in store HIGHLIGHTS pharmacies. Superdrug forms part of the A.S. Watson Group, the world’s largest international health and beauty retailer.

Superdrug Stores Plc are rated by Creditsafe as 78A SUPERDRUG STORES 7% reflecting Very Low Risk. AZZURRI RESTAURANTS 7% 27% 30-Dec-17 31-Dec-16 26-Dec-15 Sales Turnover £1,241,783,000 £1,213,600,000 £1,099,223,000 BACKHOUSE BOOKMAKERS 9% Profit Before Tax £92,934,000 £80,385,000 £56,842,000 Net Worth £115,296,000 £86,291,000 £50,149,000 MARTINS & CO

SALVATION ARMY 9%

CANCER RESEARCH 9% 21% IVORY DENTAL CLINIC 10% ADECCO

QUACAR INVESTMENTS

AZZURRI RESTAURANTS LTD

The Azzurri Group is one of the UK’s best known Italian casual dining restaurateurs, operating the Zizzi, ASK Italian, Coco Di Mama and Radio Alice brands. The Group employs 6,000 people and operates 260 restaurants. Zizzi is the Group’s largest concept, totalling 156 restaurants, 8 of which opened in 2018.

Azzurri Restaurants Ltd are rated by Creditsafe as 76A reflecting Very Low Risk.

02-Jul-17 26-Jun-16 28-Jun-15 Sales Turnover £249,250,000 £226,636,000 £217,670,000 Profit Before Tax £19,289,000 £17,627,000 £17,095,000 Net Worth £76,115,000 £60,446,000 £45,330,000

18 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 19 SALE DEMISE INVESTMENT CONSIDERATIONS SOLD OFF INTEREST

• Prime pitch restaurant and convenience retail offer in an affluent South East commuter town.

• Reversionary potential with an ERV of £413,171 per annum.

• Ongoing residential development is increasing the town’s population density and therefore increasing the retail catchment.

• Located adjacent to Sainsbury’s supermarket and close to The Howard Shopping Centre which are key footfall drivers.

• Let to a range established tenants who have shown commitment to the location.

• Very limited availability within Howardsgate, demonstrating the strength of retailer trading performance.

• Opportunity to regear leases, amalgamate units and enhance tenant mix.

For indication purposes only PROPOSAL

SALE DEMISE SOLD OFF INTEREST SALE DEMISE SOLD OFF INTEREST SALE DEMISE We are instructed to seek offers in excess of£5,600,000 (Five Million, Six Hundred Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects the following attractive profile, allowing for Purchaser’s costs of 6.61%:

Residential Element £1,100,000 Net Initial Yield 7.36% VAT

The Property is elected for VAT which will therefore be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer Of a Going Concern (TOGC). EPC

Further information is available upon request.

For indication purposes only

20 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 21 INFORMATION DATAROOM

For further information please contact: A dataroom has been set up for prospective purchasers’ due diligence. Further information is available on request.

Disclaimer: ADS RE Ltd (ADS RE) and Allsop on their own behalf and on behalf of the vendors / lessors of the properties whose agent ADS RE is, gives notice that: Simeon Cohen George Collins Alex Butler Jonathan Butcher 1 (a) All particulars provided are given as a general outline only for the guidance of the intending purchaser, lessee or tenant, and do not constitute in whole or in part, an offer 020 3418 2050 020 3418 2060 020 7543 6722 020 7543 6755 of contract for sale or lease; (b) Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility. None of the statements contained in [email protected] [email protected] [email protected] [email protected] these particulars as to the property are to be relied upon as statements or representations of fact; (c) The vendor / lessor does not make or give, and neither ADS RE, Allsop nor any of their members or any person in their employment has any authority to make or give any representation or warranty whatsoever in relation to any properties. 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 ADS Real Estate Advisors Allsop contract for sale or agreement for lease between the vendor / lessor and a purchaser or tenant. 2 Prospective purchasers / lessees or tenants should not rely on any particulars 6 Brook Street, London W1S 1BB 33 Wigmore Street, London W1U 1BZ provided and are strongly advised to; (a) Satisfy themselves by inspection or otherwise as to the correctness of each statement contained in these particulars; (b) Inspect the property and the neighbouring area; ensure that any items expressed to be included are available and in working order; (c) Arrange a full measured, structural (and where Tel: 020 3418 2000 | Web: www.adsre.co.uk Tel: 020 7437 6977 | Web: www.allsop.co.uk appropriate environmental) survey of the property; and (d) Carry out all necessary searches and enquirie FEBRUARY 2019

22 4-24 Howardsgate & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 23