21-23 High Street Uxbridge Ub8 1Jd Prime Greater London Reversionary Retail Investment Investment Summary
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21-23 HIGH STREET UXBRIDGE UB8 1JD PRIME GREATER LONDON REVERSIONARY RETAIL INVESTMENT INVESTMENT SUMMARY • Uxbridge is an affluent Greater London town and a dominant South East commercial centre • Situated in a prime High Street trading location and directly adjacent Intu Uxbridge and Uxbridge Underground Station • Recently refurbished prominent retail property totalling 7,431 sq ft • Let on single FRI lease to Lloyds Bank Plc, providing 9.4 years of Investment Grade income • £200,000 pa rent, equating to a low ITZA rent of £75.00 per sq ft, rebased at recent lease renewal • Provable rents of £90-95 per sq ft ITZA in prime Uxbridge indicating excellent rental growth potential • Freehold • Offers in excess of £3,800,000 (Three Million Eight Hundred Thousand Pounds) reflecting an attractive net initial yield of 5.00%, assuming purchasers’ costs of 5.80% 20 17 A41 4 A40 3 Harrow 2 M1 M40 A4155 A355 21-23 HIGH STREET 1 16 1 A404 A405 A40 Maidenhead Slough UXBRIDGE A412 A40(M) 9B M25 A312 Ealing A4 7 A4 A408 6 15 CENTRAL 8/9 2 5 4 3 1 LONDON A308 4B M4 4A A4 Hammersmith Windsor 14 Heathrow A205 Richmond A332 13 A316 10 Bracknell Staines 1 A23 12 Kingston A322 A3 M3 Croydon 11 Camberley 3 LOCATION DESCRIPTION Uxbridge is an affluent Greater London commercial, Uxbridge is home to a high number of corporate office The property comprises three separate retail units which have administrative and commuter10 town located approximately occupiers, Brunel University and Uxbridge College, accounting been amalgamated behind the facades. 18.5 miles north west of Central London and 6.3 miles north for approximately 40,000 office workers and 25,000 students 21 and 22 High Street have been combined to create a single of Heathrow Airport, within the M25. respectively. M25 7 well configured banking unit at ground floor level with secure Uxbridge Underground Station is located approximately 50 metres Retailing is focused on the High Street and the recently storage provided at basement level. The first and second floor from the property, providing both Piccadilly and Metropolitan Line rebranded Intu7/ 8Uxbridge centre (previously the Chimes Centre) levels comprise open plan office accommodation, spreading services; with a journey time of 45 minutes to Central London. which comprises 420,000 sq ft over three levels together with across all three properties and providing open plan offices and a an Odeon Multiplex. The Pavilions Shopping Centre provides ‘Club Lloyds’ area with partitioned customer offices at first floor. Uxbridge has excellent road communications being situated M23 387,000 sq ft of retail floorspace. The second floor provides further office accommodation and a 1.5 and 2.5 miles south of the A40 and M40 (Junction 1) staff kitchen and break-out area. Male and female staff WCs are respectively, 4 miles east of the M25 (Junction 16) and 5 miles located on both first and second floors. north of the M4 (Junction 4). SITUATION The subject property is located close to the entrance of The property also benefits from a basement, which currently DEMOGRAPHICS & RETAIL PROFILE Uxbridge underground station and the recently renamed Intu houses the bank’s vaults and ancillary storage space. The Uxbridge shopping centre, commanding a prominent position properties have direct access to a rear service yard, which also The demographic profile of Uxbridge indicates above average on Uxbridge’s9 prime pedestrianised retail pitch. provides eight car parking spaces. affluence with over 56% of the population categorised in the AB and C1 social groups and over 77% of the population The property also benefits from significant footfall between the Lloyds comprehensively refurbished the property in 2014, owning at least one car. The Pavilions and Intu Uxbridge shopping centres. The entrance including the refitting of all customer facing areas. to the Pavilions is within 150 metres of the property. The two Uxbridge has an extensive catchment population of 349,000 23 High Street comprises a self-contained ground floor retail unit shopping centres both provide extensive car parking facilities people extending as far as Rickmansworth to the north and the with an open plan sales area to the front and partitioned kitchen with Intu Uxbridge having a capacity in excess of 1,500 spaces, M4 to the south, attracting a regular shopping population of and staff WC to the rear. To the rear is a fenced patio area with supplying most of the town’s main parking provision. 196,000 people. wooden decking. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate Net Internal Area: 21/22 High Street RETAIL SQ M SQ FT Ground floor area 184.87 1,990 ITZA 136.47 1,469 Basement 97.36 1,048 1st floor offices 185.43 1,996 2nd floor offices 1183.29 1,973 23 High Street RETAIL SQ M SQ FT Ground floor area 39.39 424 ITZA 33.21 357.5 Total 690.34 7,431 TENURE The property is held Freehold. TENANCY The property is let to Lloyds Bank Plc on a full repairing and insuring lease for a term of 10 years commencing on 20th June 2014, providing 9.4 years unexpired. The new lease has been agreed at a rebased rent of £200,000 per annum equating to £75.00 per sq ft ITZA. The lease is subject to an upward-only rent review on 20th June 2019. 23 High Street is not occupied by Lloyds. Their subtenant has recently vacated and Lloyds is in the process of reletting. COVENANT INFORMATION Lloyds Bank Plc is the United Kingdom’s leading retail and Lloyds Bank Plc (Co. No. 2065) has a D&B Rating of 5A1. The last 3 years’ audited accounts are summarised as follows: commercial bank offering a comprehensive range of financial products and services including current accounts, savings, 31 Dec 2013 £000’s 31 Dec 2012 £000’s 31 Dec 2011 £000’s mortgages, loans and credit cards. With 1,300 high street branches, it is backed by online, mobile and telephone banking, Sales Turnover 53,977,000 55,410,000 44,644,000 and a network of Commercial Banking and Private Banking relationship managers. Lloyds Bank plc is a wholly owned subsidiary of Lloyds Banking Profit / (Loss) Before Taxes 894,000 (474,000) (1,531,000) Group plc and is one of the main operating companies of the Group. Lloyds Bank merged with TSB in 1995 to form Lloyds TSB, one of the largest forces in British domestic banking. The Tangible Net Worth 39,444,000 43,593,000 45,387,000 new group continued to expand, and in 2000 acquired Scottish Widows. In 2009 Lloyds Banking Group was created when Lloyds TSB Group acquired HBOS. In September 2013 Lloyds TSB once Net Current Assets (Liabilities) 61,444,000 (309,770,000) (238,292,000) again became two separate banks - Lloyds Bank and TSB Bank. For further information please visit www.lloydsbank.com. RENTAL COMMENTARY Recent open market letting evidence suggests that a headline rental level in the region of £90-95 per sq ft ITZA is appropriate for the property, indicating a reversion at the next rent review in 2019. Recent lettings include: Address Tenant Transaction Date ITZA PSF N/A - A3 use 162 High Street Five Guys New 15 year lease Jan-14 £28.72 per sq ft overall 163 High Street Boots Lease renewal (10 years) Sep-13 £105.70 167 High Street Ladbrokes New 15 year lease Sep-13 £114.30 155 High Street Deichmann Shoes New 10 year lease May-13 £91.50 164 High Street Pret a Manger New 5 Year lease Mar-13 £133 174 High Street Santander Rent review Aug-10 £110 50 High Street Metro Bank New 15 year lease Jun-10 £110 The Uxbridge office market has been particularly buoyant over the past 18 months, with prime office rents standing at £32 per sq ft and further rental growth is anticipated due to a lack of supply. INVESTMENT COMMENTARY Demand for well let, secure income retail investments with good growth prospects has been consistently strong. Recent bank investment deals in comparable locations include: Date Address Tenant Unexpired Term Price Yield Oct 14 London, 19-21 Golders Green Road Natwest 12 years £1,660,000 4.08% Oct 14 Surbiton, 1 Claremont Road Lloyds 7 years £1,170,000 3.88% Sep 14 Wood Green, 6-7 High Road Bank of Scotland plc 11.5 years £3,000,000 4.73% June-14 Wood Green, 62 High Road Barclays 11 years £4,150,000 4.10% May-14 Chiswick, 308 Chiswick High Road Lloyds 8 years £5,520,000 4.28% Apr-14 Staines, 61 High Street HSBC 6 years £3,600,000 5.25% Mar-14 Twickenham, 2 York Street Barclays 12 years £ 2,720,000 3.60% EPC PROPOSAL The property has an EPC rating of C with a score of 67. We are instructed to seek offers in excess of £3,800,000 (Three Million Eight Hundred Thousand Pounds) reflecting an attractive net initial yield of 5.00%, VAT assuming purchasers’ costs of 5.80%. The property has been elected for VAT. Adopting a sensible ERV of £90 per sq ft ITZA and £17 per sq ft on the office accommodation, this reflects a reversionary yield of 5.60% in 2019 and an equivalent yield of 5.47%. VIEWING AND FURTHER INFORMATION For further information or to arrange a viewing please contact: Richard Talbot-Williams Hugh Yates [email protected] [email protected] Tel: +44 (0) 20 7338 4244 Tel: +44 (0) 20 7338 4336 5, Aldermanbury Square, London EC2V 7BP Mob: +44 (0) 7795 114684 Mob: +44 (0) 7881 249811 Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited and Farm Street Real Estate Advisors for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1.