6/10 SPURRIERGATE, YORK PRIME FREEHOLD RETAIL INVESTMENT FOR SALE INTERNATIONALLY RENOWNED TOURIST DESTINATION AND HISTORICAL CATHEDRAL CITY 6/10 SPURRIERGATE | YORK INVESTMENT SUMMARY z York is an internationally renowned tourist destination and historic cathedral city attracting 6.9 million visitors per annum, contributing an estimated £608m per year (Visit York 2017) to the local economy. z York’s 2018 retail expenditure totalled £1.694 billion and is forecast to grow at 2.9% pa over the coming 5 years, above the national average of 2.6%. z Prime trading location on the pedestrianised Spurriergate opposite Zara, whilst in close proximity to H&M and TK Maxx. Sports Direct/Flannels are due to open in the former BHS soon. z Freehold parade comprising 8,461 sq ft (786 sq m) of retail accommodation with potential for residential conversion on the upper parts, subject to planning. z We are instructed to seek offers in excess of £2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 9.30% after allowing for standard purchasers costs of 6.42%. 6/10 SPURRIERGATE | YORK LOCATION The city of York is a leading commercial and administrative centre in North Yorkshire. The historic City is home to the popular York Minster A19 and Roman Walls and is located 25 miles north A64 east of Leeds and 21 miles east of Harrogate and 210 miles north of London. York benefits from excellent communications A64 with the city’s ring road, the A64, leading directly A19 to the A1(M) motorway and further onto the national motorway network. M62 M62 Leeds Bradford International Airport is located Huddersfield 24 miles south west and offers direct flights to over 75 international destinations. M1 York benefits from excellent transport communications via rail on the East Coast M18 Mainline with direct services to Manchester (1 hour 17 minutes), Edinburgh (2 hours 30 minutes), Leeds (23 minutes) and London Kings Cross (1 hour 53 minutes). 6/10 SPURRIERGATE | YORK DEMOGRAPHICS York has a primary catchment population of 307,000 persons, of which 60% are categorised within the most affluent ABC1 social groups. (PROMIS, 2018). PRIMARY CATCHMENT POPULATION Total retail expenditure was estimated at £1.694 billion in 2018 and is forecast to grow at 2.9% per annum between 2018 and 2023, above the Promis average of 2.6% (PMA) and ranking 47th by this measure. This spending is supported by circa 24,000 students studying at either The University of York or York St John University. TOTAL ESTIMATED RETAIL EXPENDITURE Visit Yorkshire reported in February 2017 that annual visitor spend was up 6% to £608 million on the previous year. Visitor numbers are up 1.5% to 6.8 million and the number of jobs supported by tourism has increased by 6% to 20,300, accounting for 1 in 5 jobs in the City. 6/10 SPURRIERGATE | YORK RETAILING IN YORK York city centre has an approximate total retail floorspace of 1.5 million sq ft (139,350 sq m). The prime retailing is traditionally concentrated along the pedestrianised Coney Street/ Spurriergate where multiple retailers who have representation include Boots, Zara, WH Smith and H&M. The prime retailing is further complemented by Davygate, Stonegate and Low Petergate. The streets interlink together to create an extensive, vibrant and aesthetically pleasing retail environment. Anchor retailers in the city include Browns Department Store, Debenhams, Fenwicks, Primark and Marks and Spencer. The city ranks 18th and 17th on the PMA Fashion and Retail score respectively (PROMIS 2018). The city has limited managed floor space, which is concentrated on the 160,000 sq ft Coppergate Shopping Centre anchored by Fenwicks and Primark. 6/10 SPURRIERGATE | YORK TO BE SITUATION NORTH FONE HUB POUNDLAND The subject property is situated in a prime trading position on Spurriergate, close to its junction with Coney Street and Market Street. Major retailers in the immediate vicinity include Boots, Zara and H&M. Sports Direct/Flannels have acquired the former BHS store on Coney Street and are due to open shortly. The property benefits from a strong pedestrian footfall which forms part of the principal retail circuit which leads on to the Coppergate Centre. The property is highlighted in blue on the attached goad plan extract. DESCRIPTION The property comprises 2 retail units arranged over basement, ground and 3 upper floors. Both units are currently arranged to provide sales accommodation at ground floor level together with ancillary accommodation at basement, first, second and third floor levels. Access SPURRIERGATE CENTRE CAFE to the rear is available via Low Ousegate and Church Lane which are both public highways. Both properties are Grade II listed and are situated in a conservation area. For Identification purposes only 6/10 SPURRIERGATE | YORK ACCOMMODATION The floor areas for the 2 properties are set out in the tenancy and accommodation schedule below. Floor Areas EPC Rating Address Tenant Lease Start Lease Expiry Rent (PAX) SQ FT SQ M Ground Floor Sales 1,064 98.84 ITZA 534 49.61 Adden Limited t/a Leia. Basement Ancillary 992 92.15 6 Spurriergate, Guarantor - Wacoal 20/09/2006 19/09/2021 £125,000 First Floor 821 76.27 D99 York Europe Limited Second Floor 418 38.83 Third Floor 341 31.67 Total 3,636 337.79 Ground Floor Sales 1,305 121.23 8/10 Spurriergate, Telefonica O2 UK 28/02/2011 27/02/2021 £147,300 ITZA 609 56.58 York Limited t/a O2 Basement 1,105 102.65 First Floor 1,265 117.52 D99 Second Floor 620 57.59 Third Floor 530 49.23 Total 4,825 448.25 Total Rent £272,300 Total Floor Area 8,461 786.04 TENURE TENANCIES The title to the whole property is freehold registered with title absolute on title The property is let to 2 tenants producing a current rent of £272,300 pa. number NYK201475. The wault is currently 2.09 years to expiry. 6/10 SPURRIERGATE | YORK COVENANT Leia are a lingerie and swim wear designer and retailer. The company currently trade from this store in York which deals with all of thier website sales and distribution. O2 are a commercial brand of Telefonica UK Ltd and is a leading digital communication company. O2 has over 450 stores in the UK and this is the company’s only shop in York City Centre. The principal accounting information is set out below. Telefonica 31/12/2015 31/12/2016 31/12/2017 Experian UK Limited GBP GBP GBP Score Turnover 5,393,000,000 5,241,000,000 5,471,000,000 Pre-tax profit 1,405,000,000 545,000,000 534,000,000 96 Net Worth 647,000,000 516,000,000 543,000,000 Adden 31/03/2016 31/03/2017 31/03/2018 Experian Limited GBP GBP GBP Score (Guarantor - Wacoal Europe Limited) Turnover 3,824,000 3,259,000 3,601,000 Pre-tax profit 515,000 283,000 5,000 49 Net Worth -2,262,000 -2,023,000 -2,013,000 Wacoal 31/12/2015 31/12/2016 31/12/2017 Experian Europe GBP GBP GBP Score Limited Turnover - - - Pre-tax profit -204,000 2,713,000 9,670,000 100 Net Worth 3,067,000 5,829,000 15,400,000 6/10 SPURRIERGATE | YORK EPC The property has an EPC rating as detailed in the tenancy and accommodation schedule. An EPC for the property can be provided on request. VAT The property is elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer Of A Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of £2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 9.30% after allowing for standard purchasers costs of 6.42%. The sale price will reflect a capital value of £325 per sq ft. Recent transactions include the sale of 15/17 Market Street York (Superdrug) in January 2019 for £4.675m which reflected a net initial yield of 5.82% and a capital value of c. £322 per sq ft. 6/10 SPURRIERGATE | YORK For further information or to arrange an inspection please do not hesitate to contact: PHILIP HAY 020 7637 7100 [email protected] MICHAEL JAMESON 020 7637 7100 [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. 101556. Designed by TCC 09/19..