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Home , Kingston upon Thames, Romford, Uxbridge

HSBC 52-54 CLARENCE STREET , KT1 1NP

HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP HSBC 52-54 CLARENCE STREET HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER KINGSTON UPON THAMES, KT1 1NP 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP

INVESTMENT CONSIDERATIONS ▲ Kingston is an affluent commuter situated in South West ▲ Prominent dual frontage town centre high street retail bank totalling approximately 4,230 sq ft ▲ Excellent road and rail communications ▲ Kingston is ranked 23 out of the PROMIS centres with a consumer base of approximately 303,000 ▲ Freehold ▲ Current income of £377,206 per annum (Topped up to December 2018 review date)* ▲ Unexpired lease term of approximately 9.2 years ▲ Let to the 5A1 covenant of HSBC Bank Plc ▲ The rent is reviewed annually in line with RPI with a collar and cap of 3%-5% ▲ Offers are sought in excess of £7,060,000 (Seven Million and Sixty Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 5.00% off the topped up rent, after allowing for purchasers costs of 6.65%

*Assumed 3% increase. HSBC 52-54 CLARENCE STREET HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER KINGSTON UPON THAMES, KT1 1NP 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP

Stevenage Dunstable Stansted LUTON Luton Bishop’s Knebworth Stortford M1 A1(M) Aylesbury Harpenden Welwyn Garden City Hertford M11 Hemel Harlow Berkhamsted St Albans Hatfield Thame Hempstead M10 Chelmsford J21 Chipping Chesham J20 Potters Bar Epping J23 Ongar J19 Borehamwood J25 M25 J27 M25 Enfield High M1 M11 Billericay Wycombe Brentwood J28 Wickford M40 Harrow LOCATION Brent J29 J16 Cross Kingston-upon-Thames is an affluent commuter town in Benfleet Henley-on-Thames Southend-on-Sea South- located approximately 10 miles south Maidenhead Canvey M25 Stanford-le-Hope Island west of , 20 miles north east of Guilford and A404(M) LONDONLondon J15 M4 City 15 miles East of Windsor. Windsor READING M4 Richmond Dartford The town benefits from good road communications with the A329(M) KINGSTON Gravesend Sheerness A3 Kingston Bypass providing access to the M25 (Junction 9) J2 UPON THAMES approximately 7 miles to the south and the M3 (Junction 1) J12 Swanley M3 J3 Rochester Gillingham approximately 6 miles to the west. The town also benefits Walton-on-Thames M2 from excellent public transport links being served by Kingston, Sutton M25 M20 Sandhurst M25 Sittingbourne , and Rail Stations providing Shoreham Snodland Woking J10 frequent services to London Waterloo every 15 minutes,

J9 J5 M26 M20 with a fastest journey time of 18 minutes. M3 Famborough Sevenoaks Fleet M25 Maidstone London Heathrow and London Gatwick airports are situated BASINGSTOKE J8 J7 J6 Oxted approximately 9 miles north west and 23 miles south Aldershot Reigate respectively. Famham Tonbridge M23 Horley Paddock Royal Wood Staplehurst Alton Witley Gatwick Tunbridge Cranleigh Wells Crawley Three Bridges North East Grinstead Horsham Horsham

Haywards Heath

Burgess Hill HSBC 52-54 CLARENCE STREET HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER KINGSTON UPON THAMES, KT1 1NP 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP

RETAILING IN KINGSTON

The consumer base for Kingston Upon Thames is estimated to be 303,000 ranking the town 23 of the PROMIS centres. Kingston ranks 28 in terms of volume of total retail spend available within the Primary Retail Market Area and is forecast to see significantly above average percentage growth in the available pool of comparison spending in the period 2017-22. Town Centre retail floor space in Kingston is estimated at 1.4 million sq ft of which approximately 600,000 sq ft is within the Bentall Centre. Prime pitch is centred on the pedestrianised stretch of Clarence Street and includes much of the main ground floor of the Bentall Centre. Church Street and Market Place is largely populated by high quality fashion multiples along with independent and specialist retailers. Planning permission has been granted for British Land and the Universities Superannuation Scheme (USS) to commence the redevelopment of Shopping Centre. The redevelopment has been granted consent for 385 residential units, a cinema, 13,830 sq m of retail accommodation, 4,178 sq m of food and beverage and 3,223 sq m of office accommodation. The planning permission also includes new pedestrian routes and public spaces linking Market Square, Memorial Square, Clarence Street and Eden Street. This will further add to the pull of Kingston as a retail and leisure destination. Primark have commenced construction on their site at 70-78 Eden Street which will provide a four storey retail building with basement. Build works have also started at 62-68 Eden Street to provide a mixed use building with 39 apartments above.

© Crown Copyright, ES 100004106. For identification purposes only. HSBC 52-54 CLARENCE STREET HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER KINGSTON UPON THAMES, KT1 1NP 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP

SITUATION DESCRIPTION The property is located at the eastern end of the The property comprises an attractive corner building totalling approximately 4,230 sq ft pedestrianised Clarence Street benefitting from a return of accommodation arranged over basement, ground, mezzanine and first floors. frontage onto Eden Street. Clarence Street, the town’s prime pitch, runs through the town centre from Kingston Floor Area sq m Area sq ft Railway Station to the north east and Kingston Bridge to Basement 43.0 463 the south west. The property is adjacent to a bus stop providing a high footfall. Ground 124.6 1,342 Other occupiers in the vicinity include, Pret a Manger, ITZA 94.4 1,017 Starbucks, O2, Carphone Warehouse, & Spencer, Topshop and . Mezzanine 98.1 1,056 First 127.2 1,369 Total 392.9 4,230 HSBC 52-54 CLARENCE STREET HIGH STREET INVESTMENT OPPORTUNITY LET FOR A FURTHER KINGSTON UPON THAMES, KT1 1NP 9.2 YEARS WITH ANNUAL RPI REVIEWS 3%-5% COLLAR AND CAP

TENANCY DETAILS The property is let to HSBC Bank Plc expiring 20 December 2027 and benefits from annual rent reviews to RPI collared and capped at 3% & 5%. Additionally there is a 5 yearly upward only rent review to open market rental value. The vendor will top up the passing rent to the December 2018 review date assuming a 3% uplift and therefore the rent will be £377,206. The tenant has the option to extend the term for a further 20 years from the end of the term. The tenant can serve notice (not less than 6 months) after the 18th year of the term.

COVENANT INFORMATION HSBC is one of the world’s largest banking organisations serving more than 37 million customers from 70 countries. The company has approximately 4,000 offices worldwide and is listed on the London, New York, Paris and Bermuda stock exchanges. HSBC BANK PLC reported the following accounts for the last 3 years:

Date 31 Dec 2015 31 Dec 2016 31 Dec 2017 Turnover (000’s) - - - Pre-tax Profit (000’s) £2,971,000 £874,000 £2,370,000 Total Net Worth (000’s) £30,486,000 £34,195,000 £38,113,000

TENURE Freehold.

The property is locally listed.

INVESTMENT COMPARABLES

Address Tenant AWULT Sale Price NIY Date

21-27 Church Street, Kingston White Stuff & Molton Brown 5.46 years term certain £9.48m 4.50% On market

22 Clarence Street, Kingston Itsu 3.75 years £7.15m 4.60% Jul-18

19-27 Thames Street, Kingston Multi-let to three tenants - £9.75m 4.25% Dec-17

37-41 High Street, Kingston Nando’s & Pizza Express 10.7 years £3.725m 4.65% Nov-17

55-57B Clarence Street, Kingston Multi-let to four tenants 2.76 years £18.1m 4.40% Aug-17 EPC PROPOSAL The property has an EPC rating of D(93). We are instructed to seek offers in excess of £7,060,000 (Seven Million and Sixty Thousand pounds) subject to contract and exclusive of VAT. VAT This equates to an attractive net initial yield of 5.00% off the topped The property is elected for VAT purposes and therefore VAT will be payable by the purchaser, unless the sale is structured as a TOGC. up rent, after allowing for purchasers costs of 6.65%

DATAROOM For further information or to make arrangements for viewing please contact: Further information is available on the dataroom which is available at: https://datarooms.allsop.co.uk/register/HSBC-Kingston Richard Lea Andy Pointon 020 7543 6832 020 7543 6720 [email protected] [email protected] www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. 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 contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 10.18