WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020 129 STOKE ROAD, GOSPORT HAMPSHIRE, PO12 1SD INVESTMENT CONSIDERATIONS Gosport is an established Hampshire town Large retail unit of 23,975 sq ft with Let to the 5A1 covenant of Waitrose Limited We are instructed to seek offers in excess of located on the south coast with a population of approximately 80 car parking spaces. with 8.7 years unexpired. £3,300,000 (Three Million and Three Hundred approximately 82,000 people. Thousand Pounds), subject to contract and Waitrose have been in continuous occupation Low passing rent of £220,000 per annum exclusive of VAT. Prominently located on the edge of Gosport for over 43 years. A reversionary lease (£9.18 psf). town centre serving the affluent Alverstoke was signed by Waitrose starting last year A purchase at this level reflects anet initial suburb and wider area. demonstrating commitment to the unit. Significant fixed increase to £250,000 per yield of 6.25%, with a reversion to 7.11% in annum (£10.43 psf) in July 2020. This is still 2020 assuming purchasers costs of 6.48%. Freehold. considered low for a supermarket rent. WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD WINCHESTER A3057 A272 A3 Twyford A272 Petersfield M3 A32 A3057 LOCATION Eastleigh A3 M27 B3354 Droxford SOUTHAMPTON South Downs Gosport is an established Hampshire town located on the south coast approximately 3 miles (4.8 km) AIRPORT National Park south west of Portsmouth, 6 miles (9.7 km) south east of Fareham and 15 miles (24.1 km) south east ofM27 Southampton. M271 B2150 Cadnam A32 A286 The town is located on a peninsula with the Solent to the west and Portsmouth harbour to the east. A336 A334 SOUTHAMPTON Hedge End Portsmouth is linked via a pedestrian ferry that runs throughout the day with a journey time of four A3(M) Wickham minutes. A35 Waterlooville The A32 (Fareham Road) is the principal arterial route to Gosport providing good access to the M27 at Hythe M27 junctions 10 and 11, which links to the M3 at Southampton and the A3 (M) at Havant. A326 A27 Fareham Rail services to London Waterloo are via Portsmouth with a fastest journey time of 1 hour 40 minutes. Havant A27 Titchfield Portchester Portsmouth town centre and train station are easily accessed via the harbour ferry. Cosham A337 Chichester M275 Southampton International airport is located 20 miles (32.2 km) to the north west. A32 A27 The Solent Chichester Blackfield PORTSMOUTH Harbour AONB Lee-on-the-Solent SITUATION North Solent Hayling Island National GOSPORT The property is prominently situated approximately 0.5 miles to the west of Gosport town centre Nature Reserve Alverstoke providing excellent access for shoppers travelling from the wider area including the affluent suburb of Alverstoke. The Solent Cowes The building is located between Stoke Road and South Street with good frontage onto both. It is also within walking distance from the town centre and the high street retail offer as well as other out-of-town retail units including those occupied by Argos, Halfords, Asda, Morrison’s and Iceland. ISLE OF WIGHT The next nearest Waitrose unit by road is located 9.8 miles (15 km) north west in Locks Heath to the Royal Clarence Marina National Museum A south east of Southampton. 3 of the Royal Navy 2 UEEN ST F Q ORTON ROAD AD O A R 32 H Gosport B T S 2 R AD Marina Portsmouth P RO 1 O M BY 5 R UM -Gosport 4 W I N T Ferry Terminal I G H G D W A A R O D R E A L 3 N 2 L I GUN WHARF L A H Town Centre QUAYS N S ’ E D SUBJECT PROPERTY H STREET N IG A H N O A R AD N RO OUTH ROA D O E S D R K Gosport F O D T S R Gosport War R Ferry Terminal A O Memorial 33 H G 3 B3 W Hospital Portsmouth N IOW Car U G OAD B3333 Ferry Terminal B3 BURY R 333 OAD UTH R B SO R E O E Haslar A U G D N D Lake I S E R T V ALVERSTOKE B R A E R Haslar E E A T L H S Marina T A D H A O R D Y E A The Royal Navy S O E R L Submarine Museum G K N R A A P Gosport Park AD O R R LA Royal Haslar AS H Luxury Waterfront Residential Village WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020 CATCHMENT & DEMOGRAPHICS Gosport has a catchment of 360,000 within a 10km radius and a town population of approximately 82,000. The demographic profile of the Gosport area is typically an older, affluent and skilled worker in employment (or now retired). The CACI Lifestyle groups percentage of skilled workers for the area is 36.7% as opposed to the average for Great Britain of 12.8%. This affluent population is highlighted further by 66% of the population owning their homes outright or owning with a mortgage compared to the Great Britain average of 63.5%. Unemployment within Gosport is only 1.1% of the economically active population in comparison to the Great Britain average of 4.9%. Furthermore, 72% of the local population are aged 35 or over. DESCRIPTION The property comprises a large retail unit, which has been occupied continuously by Waitrose for over 43 years since its original construction. The unit totals 23,975 sq ft over ground and first floors and is of concrete frame construction. The store has two main access points, to the front and rear, and is fitted out internally to the modern Waitrose format. Internally the store benefits from 5 main checkouts as well as 4 basket checkouts. The store also has deli and meat counters, a cash machine and full Waitrose services including a click & collect counter. Loading is to the rear of the store where a main goods lift to the first floor is located. There are also two additional staff lifts to each side of the unit. The first floor comprises storage space with a large chilled area and separate freezer area, staff canteen and managers offices. The unit benefits from approximately 80 car parking spaces providing a good ratio of 1:299 sq ft. The property occupies a 0.88 acre (0.357 hectare) site with a low site cover of 36%. ACCOMMODATION The property has been measured on a Gross Internal Area basis (GIA) in accordance with the RICS Code of Measuring Practice (6th Edition). Description Area (sq m) Area (sq ft) Ground Floor Retail 1,125.11 12,111 First Floor Ancillary 1,102.16 11,864 Total 2,227.27 23,975 WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD ISLE OF WIGHT Fort Monckton Gosport & Stokes Bay Golf Club Institute of Naval Medicine CLAYHALL RD Royal Haslar Luxury Waterfront Residential Village Gosport Park ALVERSTOKE HASLAR ROAD Haslar Marina BURY ROAD SOUTH STREET SUBJECT PROPERTY STOKE ROAD Town Centre HIGH STREET TENURE TENANCY Freehold. The property is let on full repairing and insuring terms to Waitrose Limited by There is a fixed uplift on 17th July 2020 to £250,000 per annum (£10.43 psf). way of a reversionary lease to the original lease for a term of 10 years from 17th July 2015 to 16th July 2025 (total of 8.7 years unexpired). The passing rent is The original lease to Waitrose dates back to 1973 and they have been in £220,000 per annum (£9.18 psf). continuous occupation for over 43 years. WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020 COVENANT Waitrose is a chain of British supermarkets, which forms the food retail division of Britain’s largest employee-owned retailer, the John Lewis Partnership. Waitrose has circa 365 branches across the United Kingdom and a 5.3% share of the market, making it the sixth-largest grocery retailer in the UK. Waitrose Limited has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure and their last 3 years trading figures are: 30 Jan 2016 31 Jan 2015 25 Jan 2014 (000’s) (000’s) (000’s) Sales Turnover £5,966,600 £6,016,700 £5,640,900 Profit Before Tax £66,600 £80,600 £109,100 Tangible Net Worth £930,300 £853,700 £796,600 EPC The property has an EPC rating of 82 (band D). A copy of the EPC is available in the data room. WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD LETTING MARKET VAT The passing rent of £9.18 per sq ft is considered low for a supermarket, and remains so even with the fixed increase in The property is elected for VAT and it is proposed that the sale will be treated 2020 to £10.43 per sq ft. Other examples include: as a Transfer of a Going Concern (TOGC). Address Area (sq ft) Rent (£ psf) Comments DATA ROOM Co-Op, Southampton 13,034 £22.24 Rent review in September 2016. There is a data room for the property with key tenancy information, title Tesco, Gosport 36,522 £20.00 Open market letting in May 2013. documents and EPC certificates. Access can be provided on request. Waitrose, Waterlooville 42,000 £16.07 Rent set prior to 2016 rent review. 2016 rent review at arbitration. Waitrose, Dorchester 15,187 £17.69 Passing rent stated. INVESTMENT MARKET Supermarket investments continue to be well sought after in the current market as they provide a defensive income stream.