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89/91 Clarence Street & 2/6 Castle Street Kingston

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89/91 Clarence Street & 2/6 Castle Street Kingston INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION 89/91 CLARENCE STREET & 2/6 CASTLE STREET KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION INVESTMENT SUMMARY Kingston-upon-Thames is one of the UK's most significant and renowned retail centres located in south west London. Freehold. Rarely available retail and office block, occupying a prime position on Clarence Street, well positioned to take advantage of British Land and USS’s development of Eden Walk. Excellent rental growth prospects given demand for the town. 59% of the income secured to the undoubted covenants of Starbucks Coffee Company (UK) Limited and Office Angels Ltd with an overall WAULT of 6.06 years. Potential to convert the office accommodation to residential use, subject to planning. The current rent is £312,800 per annum. Our clients are seeking offers in excess of £4,950,000 (Four Million Nine Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 5.60%, after allowing for purchaser’s costs of 6.59% and the service charge shortfall. 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 2 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION LOCATION Kingston-upon-Thames is one of the UK’s leading commercial and retailing centres and is one of only six Royal Boroughs in England and Wales. The town is located in the affluent south west area of Greater London, approximately 5 miles (8 km) south of Richmond, 11 miles (17.7 km) west of Croydon and HIGH M1 12 miles (19.3 km) south west of Central London. WYCOMBE RICKMANSWORTH WATFORD The town benefits from excellent communications, with it being in close proximity to the M25, M3 and A3. M40 The town benefits from a regular commuter rail service A1 to London Waterloo, with a fastest journey time of 6 0 A4 approximately 20 minutes. M25 4155 A A 4 A1 1 4 M40 9 HARROW 0 London Heathrow Airport is located approximately A 4 M1 12 miles (19.3 km) west of the town and London Gatwick A 413 A A 3 4 A Airport is located 17 miles (27.3 km) to the south east, 5 A 0 4 1 5 9 1 J16/ 8 A 4 4 J1A1A 0 1 enabling easy access to a diverse range of domestic and A 40 international flights. 6 0 UXBRIDGE 4 A A A 4 0 4 1 8 A 0 4020 3 A A M25 GREENFORD 4 0 8 A MAIDENHEAD 4 A40 2 3 1 7 A A 4 5 A 2 40 1 EALING A404(M) SLOUGH 3 CENTRAL A HAYES SOUTHALL 6 M4 0 BRAY 4 LONDON A M4 J15/ M4 A4 HAMMERSMITH J4B4B A4 CHISWICK L A M4 O 4 ND M4 ON A308 R D A4 T 3 BA H WINDSOR RD A 0 3 FIFIELD 4 A 3 A HEATHROW AIRPORT BATTERSEA PUTNEY s e Ri RICHMOND A205 ve m r Tha M25 A A3 HOUNSLOW 2 A332 OLD 05 214 A WINDSOR CLAPHAM WINKFIELD A30 FELTHAM A3 TWICKENHAM A30 EGHAM STAINES 8 6 1 3 A TEDDINGTON WIMBLEDON BRACKNELL A308 KINGSTON A329 A30 M3 UPON MITCHAM ASCOT VIRGINIA THAMES WATER 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 3 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION 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. RETAILING IN KINGSTON Kingston-upon-Thames is one of the UK’s most into The Bentall Shopping Centre, which comprises significant and renowned retail centres, arguably one approximately 600,000 sq ft of retail floor space and of the strongest high street shopping destinations trades over 4 floors. The other main managed shopping within the M25 outside of Central London. centre is Eden Walk, which comprises approximately 290,000 sq ft of retail floor space and is anchored by The town centre retail floor space in Kingston is Boots, Sainsbury’s and Habitat. estimated at 1.40m sq ft. Kingston ranks 16 on the base of its PMA retail score and 16 on the PMA fashion Primark is extending its store on Eden Street by score. The town’s high ranking on the PMA retail and approximately 59,000 sq ft, which will further fashion scores, reflects an extensive range of fashion strengthen Eden Street. and non-fashion retailers in the town. Key fashion retailers include Cos, H&M, Hollister, Primark, New In addition to this, Kingston Council has now granted Look, Monsoon and River Island, as well as upper middle permission for British Land and the Universities quality operators such as Karen Millen, Jigsaw, Reiss, Superannuation Scheme (USS) to commence a L.K.Bennett and Massimo Dutti. transformative redevelopment of the Eden Walk Shopping Centre. The southern end of Memorial Kingston offers two quality department stores in John Gardens, to the back of the centre, will also be Lewis and Bentalls, with variety stores including Marks reopened, providing improved links between Eden Walk & Spencer and Primark. and the rest of the town centre. The main focus of prime retail activity in Kingston is The scheme will feature new stores, a dining terrace, a the pedestrianised Clarence Street, home to Marks & boutique cinema and a “sky” restaurant. The complex Spencer’s two stores and the main entrance to The will also include 385 residential flats, from studio Bentall Shopping Centre. The prime retailing extends apartments to three bedroom homes. 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 4 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION N BENTALL CENTRE VODAFONE ITSU ALDI EDEN WALK SHOPPING CENTRE EXTENDED PRIMARK STORE For illustrative purposes only 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 5 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION SITUATION The subject block, which is highlighted in green on the Goad plan, occupies a prime trading location at the junction of Clarence Street and Castle Street, adjacent to Uniqlo, whilst in close proximity to Pret A Manger, and Metro Bank. Castle Street forms a busy pedestrianised cut through from Fife Road and Kingston Railway Station and offers a mix of national occupiers and cafes / restaurants. DESCRIPTION The ownership comprises a retail parade of 5 shop units, fronting Clarence Street / Castle Street, primarily arranged over ground floor and basement, with three floors of self-contained offices above, accessed from two self-contained entrances on Castle Street. ACCOMMODATION We have been provided with a measured survey report, undertaken by CBRE Limited on behalf of our clients, which sets out the floor areas as detailed in the tenancy schedule below. 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 6 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION TENURE Freehold. TENANCIES The property is let in accordance with the tenancy schedule set out below, producing a current gross rental income of £312,800 pax and a net rental income of £294,954 per annum exclusive after deduction of service charge shortfalls. The majority of the leases are let on effective, full repairing and insuring terms recoverable via a service charge, details of which are available from this office. SERVICE CHARGE Based on current budgets there is an anticipated service charge shortfall of £17,846 going forward due to service charge caps, with potential to reduce this figure following renegotiation of contracts. The historic service charge shortfall in part relates to amounts accrued in relation to a refurbishment of the common parts of the Clarence Street offices, which the purchaser may seek to carry out in the medium-term. At present, the total amount accrued for a refurbishment is £54,000. A further £20,000 is being accrued over the service charge year end 31 March 2017. Further information on the service charge will be available in the data room. 89/91 CLARENCE STREET & 2/6 CASTLE STREET, KINGSTON-UPON-THAMES PRIME RETAIL / OFFICE INVESTMENT BLOCK FOR SALE 7 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN KINGSTON GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCIES SERVICE CHARGE RENTAL VALUE COVENANT VAT EPC PROPOSAL FURTHER INFORMATION DESCRIPTION TENANT LEASE LEASE NEXT REVIEW ACCOMMODATION CURRENT ERV LANDLORD COMMENTS START EXPIRY (BREAK (SQ FT) RENT £ P.A.
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