Canterbury 23 ST GEORGE’S STREET CT1 2SS Prominent, Well Secured, South East Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS INVESTMENT SUMMARY • Canterbury is a popular, dominant regional shopping • Located in a prime, pedestrianised position on the • Long Leasehold – recently re-geared with Canterbury destination offering an attractive and historic retailing busy St Georges Street, opposite Fenwick, a main City Council (circa 123 years unexpired). environment serving a catchment of circa 480,000 entrance to Whitefriars Shopping Centre and • Securely let to Superdrug Stores plc for a further 7.5 year s which is supplemented by a regular influx of tourists. adjacent to Poundland and WH Smith. unexpired. A top performing store within the region. • The city offers and benefits from awide and varied • A prominent building on a substantial corner site of • Net annual income of £268,425 after head rent deduction. selection of mass market and specialist retailers 0.138 acres (560 sq m) providing 9,465 sq ft (880 including, M&S, Debenhams, Fenwick, H&M, Next, sq m) of well configured retail accommodation. • Offers of £3,875,000 (Three Million, Eight Hundred Topshop, Zara, Primark, WH Smith, Jack Wills, Crew, and Seventy Five Thousand Pounds) reflecting a net • Two flats (3 beds) included in the occupational lease Hobbs, French Connection, Karen Millen, Cath initial yield of 6.5% allowing for purchasers costs of with separate access. Kidston and Phase Eight. 6.53%. Prominent, Well Secured, South East, Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS LOCATION DEMOGRAPHICS Canterbury is a historic and attractive cathedral city located 62 miles (100km) south Canterbury has the largest district population in Kent comprising 149,100 (ONS). The city east of London, 17 miles (27km) north west of Dover and 29 miles (47km) east of Maidstone. is the dominant retailing centre in the county and serves a primary catchment population The city is easily accessible by road via the A2 (dual carriageway) which connects to the of 480,000 with a shopping population of 217,000. The catchment has recently experienced M2 motorway, London and the Channel Tunnel Rail Terminal (30 minutes’ drive to the above average population growth, with this trend set to continue over the next five years. south east). The high speed rail service from Canterbury West to London provides The city is home to four universities, with a total student population of around 40,000. frequent, direct trains to London St Pancras with a fastest journey time of 56 minutes As a consequence, young adults aged 15-24 are particularly over-represented. Canterbury whereas Canterbury East station offers a regular service into London Victoria and is a major tourist destination with attractions such as Canterbury Cathedral attracting mainland Europe via Ashford. Gatwick Airport is only 65 miles (105 km) to the south east. over 1 million visitors annually. In 2015 Visit Kent revealed the overall value of tourism to Chelmsford Canterbury economy was more than £450 million with 7.2 million visitors. A1(M) A414 M25 A12 M25 A10 A130 M11 A406 A127 A1 Romford M25 Southend-on-Sea A13 LONDON A12 Dartford Gravesend A23 Isle of Margate Sheppey A232 A249 A26 M20 A229 Ramsgate M2 A28 M20 M2 M25 Maidstone CANTERBURY A228 A256 A21 M20 M23 A28 Gatwick A22 Airport A229 Royal Ashford Tunbridge Wells A20 A26 Folkestone A22 A21 A2070 A23 A259 A259 A23 A21 A26 A27 A27 A27 Hastings Brighton Eastbourne Prominent, Well Secured, South East, Retail Investment Opportunity Second best trading store in the region after Bluewater The catchment population is very affluent Canterbury is projected to see population growth over the period 2016-2021 In June 2016 retail Ranked within the top forty vacancy rates stood PROMIS Centres in terms of its at 4.5% well below overall Retail Provision Score the PROMIS average The population within Canterbury’s primary catchment is 480,000 persons serving an estimated shopping population of 217,000 persons In 2015 the value of tourism to Canterbury economy was £450m with 7.2m visitors, up 1.6% from the previous year Canterbury 23 ST GEORGE’S STREET CT1 2SS C&H FABRICS next Canterbury Catherdal Prominent, Well Secured, South East, Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS RETAILING IN CANTERBURY Canterbury has a compact retail core with an estimated floor space provision of 1.01 million sq ft and ranks 19/100 in the UK on the PMA Anchor Score. The prime retailing pitch within Canterbury has traditionally been St. George’s Street, the Parade and High Street although this has been extended to include Whitefriars Shopping Centre. Whitefriars Shopping Centre comprises a 600,000 sq ft open air scheme anchored by Fenwick department store with national retailers present including H&M, Zara, Next and M&S. The Marlowe Arcade is located between St Margaret’s Street and Rose Lane which provides access to The Parade and St George’s Street respectively. Anchored by Primark the scheme also contains a number of upmarket retailers such as Hobbs, Phase Eight, Ecco, Karen Millen and Swarovski. In addition, the city has a great offer of catering outlets such as Strada, Byron Burgers, Zizzi’s, Wagamama’s, Carluccio’s, Gourmet Burger King, Nandos and Cote Brasserie. There are also a high number of high quality independent caterers which significantly enhance the city’s food offer. Prominent, Well Secured, South East, Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS ACCOMMODATION Areas Address Floor Area (sq ft) Area (sq m) Ground Floor (Sales) 4,230 393 Ground Floor (ITZA*) 1,327 N/A units Ground Floor (Ancillary) 447 42 23 George’s Street First Floor (Sales**) 2,487 231 Basement Floor (Ancillary) 771 72 Second Floor Flat (3 bed) 765 71 Third Floor Flat (3 bed) 765 71 Total 9,465 880 *The Ground Floor ITZA includes a 5% adjustment for return frontage applied to Zone A only. **The first floor is used as ancillary but is to be treated as sales as stipulated within the lease. SITUATION The subject property occupies a prominent corner position and is located on the busy pedestrianised St George’s Street opposite Fenwick and a main entrance into the Whitefriars Shopping Centre. Retailers in close proximity include Topshop, H&M, WH Smith, M&S, EE, Poundland, Zara, McDonalds and Starbucks. DESCRIPTION The property is a Grade II listed building arranged over ground, first and basement floors with two three bedroom flats on second and third floors which have their own separate access from Canterbury Lane. Store servicing is to the rear of Link Lane. Prominent, Well Secured, South East, Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS TENURE TENANT COVENANT The property is held on a long leasehold from Canterbury City Council for a term of 125 Superdrug is the UK’s second largest beauty and health retailer employing circa 14,000 years from 20th February 2015 to and including 19th February 2140. The unexpired term staff and currently operating from 800 stores across the UK. is therefore circa 123 years. Company Financial Tangible Sales Profit Net Current Name D&B Year Net Worth Turnover Before Tax Assets The head rent is 10% of rents received (side by side), reviewed 5 yearly (upwards only). The Superdrug 5A 1 26/12/15 £50,149,000 £1,105,002,000 £56,842,000 £135,485,000 next head lease rent review is 20th February 2020. The current head rent is £29,825 pax. Stores Plc TENANCY We are advised that the store is one of Superdrug’s best traders in the region. The property is entirely let to Superdrug Stores Plc on a 25 year Full Repairing and Insuring lease expiring 28th September 2024 at a passing rent of £298,250 per annum. CURRENT INCOME £268,425 per annum (after head rent deduction). Prominent, Well Secured, South East, Retail Investment Opportunity Canterbury 23 ST GEORGE’S STREET CT1 2SS INVESTMENT COMPARABLES VAT Canterbury continues to attract strong investor interest and we highlight below relevant comparable The property has been elected for VAT and any disposal will be by investment transactions in the city. way of a Transfer of a Going Concern (TOGC). Un-expired Date Address Tenant Term Purchaser Price NIY PROPOSAL Jul 2016 11 High Street Costa Coffee 10 years Private Investor £2,400,000 3.33% We have been instructed to seek offers of £3,875,000 (Three Jul 2016 21 St Georges Street Poundland 9 years Vabeld Real £4,020,000 6.20% Million Eight Hundred and Seventy Five Thousand Pounds), Estate Subject to Contract & Exclusive of VAT, which reflects a net initial Jan 2015 6-10a High Street Debenhams 19.25 years LaSalle £22,350,000 5.63% Investment yield of 6.5% allowing for purchaser’s costs of 6.53%. Dec 2014 39/40 High Street Pizza Hut, Vision Express 9.8 years Private Investor £3,100,000 6.14% Aug 2014 12/13 High Street Crew Clothing 7 years Private Investor £1,725,000 5.75% Jun 2014 44 Burgate & 1/3 Blacks Outdoor 4 years Private Investor £1,090,000 6.50% FURTHER DETAILS Butchery Lane For further information or to arrange an inspection please contact: David Freeman 020 7658 4830 [email protected] Patrick Over 020 7658 4832 [email protected] Simona Malinova 020 7658 4826 [email protected] MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed.