41-43 Coney Street York
Total Page:16
File Type:pdf, Size:1020Kb
43 CONEY STREET & 2 SPURRIERGATE | YORK TROPHY RETAIL INVESTMENT IN ONE OF THE UK’S MOST SOUGHT AFTER RETAIL CENTRES 43 CONEY STREET & 2 SPURRIERGATE | YORK INVESTMENT SUMMARY The City of York is the administrative and cultural capital of North Yorkshire and benefits from an affluent primary catchment of 488,000 persons. York is one of the UK’s most popular tourist destinations attracting over 6.8 million visitors a year and contributing an estimated £608 million towards the local economy. York’s 2017 retail expenditure totalled £1.643 billion and is forecast to grow at 6.3% pa over the coming five years, significantly above the national average of 2.4%. An extremely prominent and substantial retail premises situated in a 100% prime position on Coney Street, the long established prime retail thoroughfare. Exceptionally rare 39,242 sq ft store with an impressive 23.75 metre frontage. Let to the undoubted, 5A1 covenant of Boots UK Limited on a 15 year Full Repairing and Insuring Lease from 13th February 2008 (4.40 years unexpired). Freehold site totalling 0.44 acres and offering significant long-term development potential. We have been instructed to seek offers in excess of £13,550,000 (Thirteen Million, Five Hundred & Fifty Thousand Pounds) subject to contract and exclusive of VAT. After the deduction of standard purchaser’s costs of 6.72%, this would reflect an attractive Net Initial Yield of 6.50%. NEWCASTLE UPON TYNE LOCATION The City of York was founded by the Romans in AD71 and is M6 the administrative and cultural capital of North Yorkshire. The A1(M) historic walled city is situated at the confluence of the River MIDDLESBROUGH Ouse and River Foss, 21 miles east of Harrogate, 25 miles northeast of Leeds and 210 miles north of London. York has long benefited from excellent transport connections, since becoming a northern hub of the UK’s railway network in the 19th Century. SCARBOROUGH ROAD - The city’s ring road (via A64) provides a quick dual carriageway link to the A1(M) at Junction 44 and ultimately the national motorway network some 14 miles to the southwest. LANCASTER A1(M) YORK RAIL - York Station is situated on the East M6 Coast Mainline and provides direct services to all of the major northern cities including Leeds LEEDS (23 mins), Newcastle (56 mins), Manchester BRADFORD HULL (1 hr 19 mins), Edinburgh (2 hrs 25 mins) and M65 M62 Glasgow (3 hrs 39 mins). London Kings Cross is just 1 hr 50 mins away, also via a direct service. M62 M1 M180 M18 MANCHESTER AIR - By air, York is served by Leeds Bradford International Airport some 31 miles to the west A1(M) LIVERPOOL M62 giving access to over 75 destinations. SHEFFIELD M56 LINCOLN M6 M1 STOKE-ON-TRENT TROPHY RETAIL INVESTMENT NOTTINGHAM IN ONE OF THE UK’S MOST SOUGHT AFTER RETAIL CENTRES DERBY LEICESTER WOLVERHAMPTON BIRMINGHAM COVENTRY 43 CONEY STREET & 2 SPURRIERGATE | YORK DEMOGRAPHICS York boasts a primary catchment of 488,000 persons, of which 57% are categorised within the most affluent ABC1 social groups. Total retail expenditure was estimated at £1.643 billion in 2017 and is forecast to grow at 6.3% per annum between 2017 and 2022, significantly above the Promis average of 2.4% (PMA) and ranking 5th by this measure. York has been at the centre of major political events in England for much of the past 2,000 years and boasts an exceptional history, which drives tourism. It is internationally renowned for its historic architecture and abundance of tourist attractions, such as: York Minster, The Castle Museum and the National Railway Museum. These help make York one of the UK’s most popular tourist destinations attracting over 6.8 million visitors a year and contributing an estimated £608 million towards the local economy (Visit York, 2016). The city is also home to a significant student population with University of York and York St John University accommodating over 22,000 students. The high tourism levels and additional student population are a significant boost to the retail in the city. 488,000 57% PERSONS CATEGORISED WITHIN THE WITHIN THE MOST PRIMARY AFFLUENT ABC1 CATCHMENT SOCIAL GROUPS £1.643 billion 6.3% per annum RETAIL FORECAST EXPENDITURE GROWTH OF RETAIL IN 2017 EXPENDITURE BETWEEN 2017 AND 2022 RETAILING IN YORK York city centre offers approximately 1.49 million sq ft of retail floorspace, which is considered constrained for a city of its stature. A significant amount of this floorspace is arranged in historic and often listed buildings, creating a unique and desirable shopping environment, but restricting tenants to compromised space. Large format stores, such as the subject property, are therefore a rarity and can command premium rental levels. Nevertheless, the city ranks 16th and 17th on the PMA Fashion and Retail Score respectively, evidencing strong tenant demand despite the lack of modern retail accommodation. Retailing in York is concentrated to the east of the River Ouse, on a network of pedestrianised streets. Prime pitch is considered as the pedestrianised Coney Street and Spurriergate, home to a number of top multinational retailers, such as: Zara, H&M, Next, Ernest Jones, Mango, Office and JD Sports. The city has just one small shopping centre, the 160,000 sq ft Coppergate Centre. The scheme is anchored by Fenwicks, Primark, Topman/Topshop and the city’s main car park but does not compete with the exceptional high street offer. SITUATION The property is situated in a 100% prime position on the west side of pedestrianised Coney Street, at its junction with Market Street. This Coney Street frontage with views up Market Street makes it one of the most prominent stores on the street, lying adjacent to WH Smith to the North and Beaverbrooks Jewellers to the South. Nearby retailers in include: H&M, Zara, TK Maxx, Holland & Barrett and Fat Face. TROPHY RETAIL INVESTMENT IN ONE OF THE UK’S MOST SOUGHT AFTER RETAIL CENTRES 43 CONEY STREET & 2 SPURRIERGATE | YORK DESCRIPTION The property provides an extremely prominent and substantial retail premises, which offers an impressive 23.75 metre (77ft 11ins) frontage. The 39,242 sq ft store is principally arranged over basement and ground floor, with the first and second floors providing a small amount of office space and potential to extend (STPP). The tenant trades from the large, well-configured ground floor and we consider it to be the best large format store in the city centre. It has been extensively fitted-out in accordance with Boots’ corporate style and includes over 10 beauty concessions at the entrance, as well as an opticians and pharmacy counter to the rear. Our client’s ownership includes a passageway to the north of the property, adjoining 41 Coney Street (WH Smith). This makes the property one of the few stores on Coney Street with rear servicing, which enters the property at basement level. We have measured the property in accordance with RICS Property Measurement 2015 and conclude a Gross Internal Area (GIA) of 39,242 sq ft, arranged as follows: FLOOR AREA (sq ft) AREA (sq m) Ground 16,575 1,539.91 Basement 16,375 1,521.27 First Floor 5,348 496.88 Second Floor 944 87.73 Gross Internal Area 39,242 3,645.79 DIMENSIONS FEET METRES Gross Frontage 77 ft 11 ins 23.75m Net Frontage 74 ft 2 ins 22.60m Shop Depth (max) 206 ft 8 ins 62.98m Internal Width (max) 92 ft 3 ins 28.10m We understand that the property is not listed but does sit within the Central Historic Core Conservation Area. TROPHY RETAIL INVESTMENT IN ONE OF THE UK’S MOST SOUGHT AFTER RETAIL CENTRES 43 CONEY STREET & 2 SPURRIERGATE | YORK York is one of the UK’s most TENURE popular tourist destinations attracting over 6.8 million The property is held freehold. visitors a year TENANCY The property is let to Boots UK Limited on a 15 year Full Repairing and Insuring Lease from 13th February 2008 (4.40 years unexpired), subject to an upwards only rent review on 13th February 2018 which remains outstanding. The rent passing is £940,000 per annum. Boots acquired the store in 2008, upsizing from 48 Coney Street opposite (now TK Maxx). Their relocation is in line with Boots’ strategy for 15,000-20,000 sq ft floorplates in regional centres and we consider the unit extremely well suited to their requirements. Furthermore, the tenant has obtained a pharmaceutical licence at the premises, which should ensure their long-term commitment to the location. Under a licence dated 10th October 1978, the owners of WH Smith, 41 Coney Street have the right to air and light from 43 Coney Street to nine of its windows and two ventilator grills, subject to an annual payment of £10. The total rental income is therefore £940,010 per annum. COVENANT BOOTS UK LIMITED Boots is the UK’s leading pharmacy-led health and beauty retailer, with over 2,500 stores in UK and 90% of the UK population within a 10 minute drive from one of its stores. Boots is classified in the UK as a “top ten” retailer based on data to include sales turnover, sales area, number of stores and average store size. FYE FYE FYE D&B 31/08/2017 31/08/2016 31/08/2015 Rating (000’s) (000’s) (000’s) Turnover £6,837,000 £6,876,000 £9,198,000 Profit / Loss Before Tax £498,000 £523,000 £542,000 5A1 Tangible Net Worth £752,000 £150,000 £367,000 ESTIMATED RENTAL VALUE The passing rent of £940,000 per annum reflects £23.95 per sq ft.