186 – 188 HIGH STREET SLOUGH South East High Yielding Investment Opportunity Investment Summary
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186 – 188 HIGH STREET SLOUGH South East High Yielding Investment Opportunity Investment summary • Slough is a major commercial centre within the Thames Valley, located approximately 20 miles west of central London. • The construction of Crossrail will reinforce Slough’s position as a major commuter town and transform journey times into London’s main employment centres. • Slough’s town centre regeneration projects includes a £450m new commercial district on a 29 acre site to the north west of the town providing 1,600 new homes by 2020. • 100% prime pitch directly opposite the entrance to the interlinking Queensmere and Observatory Shopping Centres. • The property provides two prominent and attractive modern retail units with office accommodation above 186 High Street providing a total of 13,586 sq ft of accommodation with an 8 space car park to the rear. • 79% of the total income secured against the strong covenants of River Island and LloydsPharmacy. • Asset management opportunities include: obtaining change of use to residential on the office element, creating additional accommodation above 188 High Street and to the rear of the units on the car park and agreeing terms with a national retailer at a reversionary rent on 186 High Street. • We are instructed to seek offers in excess of £2,420,000 (Two Million Four Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractiveNet Initial Yield of 8.00%, assuming purchaser’s costs of 5.80%. 186 – 188 HIGH STREET SLOUGH A41 Chelmsford 3 7 7 8 A418 1 2 7 A4010 22 A414 20 Amersham 24 M25 25 26 A12 19 5 6 High Barnet Enfield 5 18 M1 Brentwood 5 Wycombe Watford 4 Chigwell 17 A10 Location M40 M11 28 4 Beaconsfield A12 3 2 A406 4 Slough is a major commercial centre within the Thames Valley. The town 2 29 A127 Marlow A40 Harrow 1 A41 is located 3 miles north of Windsor and 17 miles east of Reading and 1 SLOUGH A13 Henley- Uxbridge A406 M25 approximately 20 miles west of central London. on-Thames Maidenhead CITY A13 LONDON 30 Distance Approx. Drive Time 7 6 Woolwich Destination 4 3 2 1 31 (Miles) (Mins) Windsor A4 1a Tilbury 14 Richmond M4 Reading A329(M) A205 Dartford M4 (J6) 1.5 5 13 HEATHROW A20 A2 2 12 A2 10 1 Kingston Windsor 3 8 Bracknell Staines 1 11 upon Thames Swanley 3 Croydon M25 (J15) 5 10 11 A232 Sutton M20 3 4 Heathrow 7 15 Camberley M25 Epsom M25 2 10 A22 3 4 A33 4 Woking 9 Reading 17 30 A24 A23 M26 9 5 Leatherhead 7 Sevenoaks M25 A228 Central London 20 50 Farnborough A3 5 8 6 A21 6 M3 Slough benefits from excellent road communications being situated Aldershot Guildford Dorking Redhill Oxted Reigate A26 7 between the M4, M40 and the M25 motorways, providing easy access A22 to London and the West Country. The construction of Crossrail will reinforce Slough’s position as a major commuter town and transform journey times. By 2019, Crossrail will provide direct access from Slough to the West End (30 mins) and City of London (37 mins). By 2020, the Western Rail Access to Heathrow (WRAtH) will connect Heathrow Airport to Slough within 6 minutes. Current train services run to London Paddington, with the fastest journey time of 18 minutes. London Heathrow is located approximately 7 miles to the east. Crossrail Journey Times 35 minutes Forrest Harold 30 minutes Stratford Green IllfordGoodmayes Romford Wood Shenfield Slough Hayes & Ealing Bond Maryland Manor Seven Chadwell Gidea Brentwood Twyford Taplow Iver Harlington Hanwell Broadway Street Farringdon Whitechapel Park Kings Heath Park Reading Maidenhead Burnham Langley West Southall West Acton PaddingtonTottenham Liverpool Woolwich Drayton Ealing Mainline Court Road Street Surface Underground Heathrow Canary Custom Abbey Airport Wharf House Wood 44 minutes 186 – 188 HIGH STREET SLOUGH Slough Local Economy Slough is home to 4,600 businesses and is the third most productive town in the UK. It has a highly competitive and dynamic business environment that contributes approximately £8 billion to the National economy. Slough’s town centre regeneration projects include the £450 million Heart of Slough project, that will see an entirely new commercial district on a 29 acre site to the north west of the town providing: 1,600 homes, 70,000 sq ft of office space, a bus station, and a new cultural centre for the town known as “The Curve”. The project is due to complete 2019/2020 and will provide major improvements to the local infrastructure and public realm. Pinewood Studios have also won permission for an ambitious £200 million expansion plan that will see over 1 million sq ft of new stages and workshops built over the next 15 years. Constructed by McAlpine, Pinewood’s plan will make it the biggest studio in the UK. The construction of Crossrail High per capita spend 4.6% Slough is home to 4,600 will reinforce Slough’s position above the Retail PROMIS businesses and is the third most as a major commuter town average at £2,720 per annum productive town in the UK 186 – 188 HIGH STREET SLOUGH PARK STREET Situation Description Located just 500 metres from Slough Railway Station, the The property provides two prominent and attractive modern The second floor of 186 High Street provides property occupies a 100% prime position on the pedestrianised retail units. 186 High Street is configured over ground, basement recently refurbished office accommodation within the High Street located directly opposite the interlinking and two upper floors whilst 188 High Street is arranged over following specification: Queensmere and Observatory Shopping Centres. The property ground and part first floor. 186 High Street (River Island) is • Self-contained ground floor entrance currently arranged to provide sales accommodation at ground overlooks a busy public square with a strong leisure offer that • Passenger lift leads to the principal entrance to the Queensmere Shopping and first floor and ancillary accommodation at basement • Air cooling system Centre. Anchored by Debenhams and Primark the 595,500 sq level, whilst the second floor provides separately let office ft Shopping Centres provide a 1,400 space car park with ongoing accommodation. 186 High Street (LloydsPharmacy) currently • Kitchenette proposals to re-develop some of the retail accommodation to provides sales accommodation at ground floor and ancillary • EPC: C (75) space at first floor level. The first floor is set back from the High provide a new façade and residential accommodation. Adjacent • Private Male and Female WCs retailers include JD Sports and Boots. Street and provides an excellent opportunity for a purchaser to create additional space at part first and second floor level. • 3 Car Parking spaces accessed via Park Street In addition, there is an opportunity to extend to the rear of the retail units onto the car park, creating additional retail accommodation. 186 – 188 HIGH STREET SLOUGH Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following areas: Ground Floor Sales ITZA Ground Floor Ancillary Basement Ancillary First Floor Sales First Floor Ancillary 2nd Floor Offices Total Address Tenant Sq m Sq ft Units Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft 186 High Street River Island (Retail) 263.1 2,832 1,227 9.6 103 188.9 2,033 276.9 2,980 738.5 7,948 188 High Street LloydsPharmacy (Retail) 145.1 1,562 738 59.4 639 204.5 2,201 Seymour House Zam Zam (Offices) 322.4 3,437 322.4 3,437 Total 1,265.4 13,586 2 6 1 Tenure 8 6 6 6 1 1 Freehold, as outlined in red on the Ordnance Survey Plan. The property occupies a site of approximately 0.19 acres (0.08 hectares). 4 6 1 30.6m Town Square 6 7 1 4 8 1 o t 8 7 1 TCBs 6 8 1 8 8 1 TCBs 2 9 1 0 9 2 1 30.2m 21 6 9 1 4 8 9 9 1 1 Post Office 4 0 9 2 TCB C 6 H 1 2 A o P t E L 6 S 0 TR 2 EET e g 0 d e 2 i 2 r s e u l o o o t H 7 C o 8 1 t 2 5 4 9 8 ESS 1 1 1 1 4 4 2 15 0 1 6 1 2 2 1 0 8 51 9 4 Pegasus Court 0m 10m 20m 30m 3 186Ordnance – 188Survey © Crown HIGH2 Copyright 2016. STREET All rights reserved. Licence SLOUGHnumber 100022432. Plotted Scale - 1:927 Tenancy Schedule Lease Expiry Next Rent Rent Passing Address Tenant Lease Start Comments (Break date) Review (pa) £100,000 Outside 1954 Act. Landlord and tenant break option any time during the 186 High Street River Island Clothing Co. Ltd 01/01/2016 31/12/2017 - term with 3 months notice required. Offer from national fashion retailer on (£58.00 ZA) 10 year term (5 year break) at a rent of £120,000 pa (£74 ZA headline). 21/09/2024 £60,000 188 High Street LloydsPharmacy Ltd 22/09/2014 22/09/2019 Tenant break option with 6 months notice required. (22/09/2019) (£79.15 ZA) Zam Zam Educational and £45,000 Second Floor, Seymour House 02/12/2015 01/12/2020 - Outside 1954 Act, with 6 month rent deposit and 6 month rent free. Cultural Academy London (£13.09 psf) Total £205,000 pa Covenant River Island Clothing Co.