4, 6 & 6A CLARENCE STREET KINGSTON-UPON-THAMES

100% PRIME FLAGSHIP RETAIL BANK INVESTMENT FOR SALE INVESTMENT SUMMARY

• The Royal Borough of Kingston-Upon-Thames is a leading affluent retail centre in South West .

• Freehold.

• Highly prominent location, occupying a prime position on the pedestrianised Clarence Street, at its junction with Church Street and located between JLP and the main entrance to the Bentall Centre.

• Let to the undoubted covenant of Barclays Bank UK PLC with just over 8.25 years remaining on the lease. Barclays has been in occupation since c 1908 and carried out a refit of the subject property in 2018.

• The tenant has recently removed the break clause effective 5th October 2022.

• Our clients are seeking offers in excess of £10,300,000 (Ten Million, Three Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 5.00% after allowing for normal purchaser’s costs at 6.70%.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE HIGH WYCOMBE RICKMANSWORTH WATFORD M1

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London is located approximately WINKFIELD A30 40 miles west of the town and London Gatwick A3 Airport is located 17 miles to the south east, enabling A EGHAM STAINES 308 16 easy access to a diverse range of domestic and 3 A WIMBLEDON international flights. BRACKNELL A KINGSTON UPON A30 308 A329 M3 THAMES ASCOT VIRGINIA WATER DEMOGRAPHIC PROFILE

Kingston has an estimated primary catchment population of 887,000, significantly above the Regional Centre average and ranking the town 13th out of the PROMIS centres on this measure. The estimated shopping population of Kingston is 467,000, ranking the town 15th out of the PROMIS centres, reflecting the dominance of Kingston across its densely populated catchment area.

The town also ranks 11th in terms of the volume of comparison retail spend available in the catchment area and is forecast to see significantly above average growth in that spending between 2015 – 2020.

Kingston has an affluent catchment population, with a 36% representation of ABC1 demographics and an average house price of £487,000 (Q3 2017) according to data from The Royal Borough of .

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE RETAILING IN KINGSTON

Kingston-Upon-Thames is one of the Kingston offers 2 quality department stores The other main managed shopping centre is UK’s most significant and renowned retail in John Lewis and Bentalls, with variety Eden Walk, which comprises approximately SITUATION centres, arguably one of the strongest High stores including Marks & Spencer and 290,000 sq ft of retail floor space and is The subject property occupies Street shopping destinations within the M25 Primark. anchored by Boots and Habitat. British a prime trading location on the outside of Central London. Land and the Universities Superannuation pedestrianised Clarence Street, Scheme (USS) have planning permission to The main focus of prime retail activity in close to its Junction with Church carry out a transformative redevelopment The town centre retail floor space in Kingston is the pedestrianised Clarence Street, whilst in close proximity to of Eden Walk to feature new stores, Kingston is estimated at 1.40m sq ft. Street, home to Marks & Spencer’s two JLP and the main entrance to The dining terrace, boutique cinema and a Kingston ranks 16 on the base of its PMA stores and the main entrance to The Bentall Bentall Shopping Centre. retail score and 16 on the PMA fashion Shopping Centre. The prime retailing “sky” restaurant. The complex will also score. The town’s high ranking on the extends into The Bentall Shopping Centre, include 385 residential flats. The proposed PMA retail and fashion scores, reflects an which comprises approximately 600,000 timescale for completion is 2023/2024. extensive range of fashion and non-fashion sq ft of retail floor space and trades over retailers in the town. Key fashion retailers 4 floors. Aviva are making improvements Primark have extended their store on Eden include Cos, H&M, Hollister, Primark, New to the malls and the scheme’s entrance to Street by approximately 59,000 sq ft, Look, Monsoon and River Island, as well Fife Road. A new Curzon 5 screen cinema which will further strengthen the secondary as upper middle quality operators such as including an open air roof top cinema will thoroughfare of Eden Street. Karen Millen, Jigsaw, Reiss, LK Bennett and open in March 2020 with 2 new restaurants. Massimo Dutti.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE NORTH

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE DESCRIPTION

The property comprises a period building providing sales/office accommodation on the ground, first and second floors, with ancillary space provided on the basement and third floor levels.

The property is not listed, but is within the Kingston Old Town Conservation Area.

The original part of the building is noted as a building of townscape merit.

ACCOMMODATION

The property comprises the following approximate dimensions and net internal floor areas: -

Clarence Street Frontage 83 ft 6 in 25.45m

Church Street Frontage 23 ft 4in 7.11 m

Display Frontage 9 ft 9 in 2.97 m

Wood Street Frontage 21 ft 2 in 6.45 m

Internal Width 79 ft 4 in 24.18 m

Ground Floor Sales 2,373 sq ft 220.45 sq m

Ground Floor ITZA 1,966 sq ft

First Floor Sales 2,357 sq ft 218.96 sq m

Second Floor Sales 2,209 sq ft 205.22 sq m

Third Floor Ancillary 862 sq ft 80.08 sq m

Basement Storage 1,561 sq ft 145.02 sq m

Total Accommodation 9,362 sq ft 869.75 sq m

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE TENURE

The property is held freehold.

TENANCY

The entire property is let to Barclays Bank UK PLC on a full repairing and insuring lease for a term of 20 years from 5th October 2007, expiring 5th October 2027. The current rent passing is £550,000 pa and the lease is subject to 5 yearly upward only rent reviews with the next rent review due on 29th September 2022.

At review the premises may be used for Class A1, A2 and B1 of the Town and Country Planning (Use Classes (Amendment)) England Order 2005.

The lease is Full Repairing and Insuring and is subject to a schedule of conditions, when will have been largely superseded by the 2018 refit.

RENTAL ANALYSIS

It is our opinion that the current passing rent of £550,000 reflects a Zone A rent of approximately £266 per sq ft, making a 17.5% allowance to shape/ hard frontage, reduced to 12.5% with a positive 5% addition for return frontage/prominence. We have applied A/10 to the first floor sales, £10 per sq ft to second floor sales/office and £3 per sq ft to the third floor and basement accommodation.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE RENTAL VALUE

It is our opinion that the estimated rental value of the subject premises as of today’s date would lie in the region of £520,000 pa exclusive which reflects a Zone A rent of £250 psf applying the devaluation previously stated.

The historic prime Zone A tone for Clarence Street, Kingston was c £310 psf Zone A.

COVENANT STRENGTH

Barclays Bank UK PLC is a British multi national investment bank and financial service company headquartered in London. The company specialises in retail, wholesale and investment banking. Barclays Bank is one of the most recognised brand names on the UK high street with over 14,000 branches and locations across the country. Barclays has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. The summary account information can be set out as follows: -

Date of 31/12/2018 31/12/2017 Account £000 £000 Turnover - -

Pre Tax Profit 1,548,000 14,060

Net Worth 13,409,000 159,269

The company have an Experian Credit score of 83/100 reflecting low risk.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE VAT

We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged that the sale will be dealt with as a Transfer Of A Going Concern (TOGC).

EPC

The property has an EPC rating of E120. A copy of the EPC certificate and report is available from this office.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE PROPOSAL

We are instructed to seek offers for the freehold interest in excess of £10,300,000 (Ten Million Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect the following yield profile net of purchaser’s costs at 6.70%.

Net Initial Yield 5.00% Reversionary Yield 4.73% Equivalent Yield 4.76% True Equivalent Yield 4.91%

The sale price reflects a low capital value of £1,100 psf. The principal comparable evidence can be set out as follows: -

1. 54 Clarence Street (HSBC) Freehold retail investment let of a rent of £377,206 pa, which devalues to a Zone A rent of £315 psf sold in November 2018 for £7,445,000 which reflected a net initial yield of 5.07%. The property is let to HSBC on a lease to expire December 2027 with annual RPI reviews collared and capped at 3% and 5%. The sale price reflected £1,760 per sq ft and the property is in a secondary location.

2. 21/27 Church Street, Kingston (White Stuff / Molton Brown) Freehold retail investment sold in November 2018 for £10m which reflected a net initial yield of 4.26% and a capital value of £2,027 psf. The block was overrented and had a Wault of 5 years to expiry.

3. 22 Clarence Street, Kingston (Itsu) Freehold retail investment let to Itsu on a lease to expire March 2022 at a rent of £350,000 pa which reflected a Zone A rent of £305 psf. The property was purchased in July 2018 for £7.15m which reflected a net initial yield of 4.60% and an equivalent yield of 4.15%. The sale price reflected a capital value of £1,429 psf.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE For further information, please contact:

Philip Hay BSc (Hons) MRICS Mike Jameson BSc MRICS 020 7637 7100 020 7637 7100 [email protected] [email protected]

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. TCC 101715. June 2019.

4, 6 & 6A CLARENCE STREET, KINGSTON-UPON-THAMES KT1 1NW 100% PRIME RETAIL BANK INVESTMENT FOR SALE