THE WATERFRONT ST HELIER JERSEY

Size: px

Start display at page:

Download "THE WATERFRONT ST HELIER JERSEY"

Darlene Preston
5 years ago
Views:

1 DOMINANT LEISURE PARK PRIME SECURE REVERSIONARY INVESTMENT OPPORTUNITY THE WATERFRONT ST HELIER JERSEY JE2 4HE

INVESTMENT SUMMARY Dominant Leisure Park in St Helier, the capital of the affluent Channel Island of Jersey.

Prominently located on the A1 Esplanade for vehicular links to the rest of the island and within easy walking distance of the key office and retail hubs of St Helier.

The scheme is fully let with a total passing rent of 1,161,721 pa which represents an affordable current average rent of 12.83 per sqft. WAULT of 15.

A well let scheme and 100% of the income which is secured to UK registered tenants has a Low Risk or Very Low Risk Experian rating.

2 INVESTMENT SUMMARY Dominant Leisure Park in St Helier, the capital of the affluent Channel Island of Jersey. Anchored by the Channel Islands only multiplex cinema and Jersey s only major waterpark. Prominently located on the A1 Esplanade for vehicular links to the rest of the island and within easy walking distance of the key office and retail hubs of St Helier. A long leasehold interest, at a rent of 1, with an unexpired term in excess of 133 years. The scheme is fully let with a total passing rent of 1,161,721 pa which represents an affordable current average rent of per sqft. WAULT of years and WAULT to tenants breaks of 9.36 years. A well let scheme and 100% of the income which is secured to UK registered tenants has a Low Risk or Very Low Risk Experian rating. There are opportunities to improve rental income through settlement of outstanding and impending rent reviews and to enhance the tenant mix over the short and medium term through re-letting and lease re-gears. We are seeking 15,610,000 (fifteen million six hundred and ten thousand pounds) for this asset on our client s behalf, subject to contract and exclusive of GST. A purchase at this level would reflect a net initial yield of 7.00% on the current passing rent, 7.52% on settlement of the outstanding rent reviews and an equivalent yield of 7.73% after assumed purchaser s costs of 6.32%. 01

St Helier is the capital of Jersey, its largest urban area and is the island s key centre for business, retail and leisure.

3 EXETER POOLE LOCATION Jersey is the largest of the Channel Islands, is a self-governing crown dependency and is a major world financial centre. It is not part of the European Union but is part of the EU Customs Union by way of third party agreements which are outside of those between the EU and the United Kingdom. St Helier is the capital of Jersey, its largest urban area and is the island s key centre for business, retail and leisure. Key employers in Jersey form a roll call of the world s leading financial institutions and financial services businesses, including The Royal Bank of Canada, Credit Suisse, HSBC, KPMG, Citibank, Ernst & Young, SG Hambros and Lloyds. ENGLISH CHANNEL CHERBOURG GUERNSEY JERSEY The island is extremely well connected to the UK and continental Europe by air with direct flights to London City, Berlin, Gatwick, Birmingham, Hamburg, Dublin and Edinburgh among others. The airport lies 5 miles west of St Helier and ferry services run to St Helier Harbour from Guernsey (1 hr), St Malo (1 hr 15) and Poole (4 hrs 30). 02

4 A4 SITUATION The Waterfront is situated on the south western edge of St Helier, with St Helier Harbour and a number of marinas to its south. The A1 dual carriageway, The Esplanade, forms the main link into St Helier from the west and forms the north western boundary of the property. On the southern edge of The Waterfront is the Waterfront Gardens which has a multi-level car park below it with 520 spaces, 300 of which are for public pay and display use, accessed from La Route du Port Elizabeth. The area surrounding The Waterfront is predominantly residential with a number of apartment buildings, in addition to the 185 room and 8 conference room Radisson Blu Waterfront hotel which is to the west of the property. There are a large and growing number of offices within easy reach of the scheme via an underpass below The Esplanade and other occupiers in the close vicinity include Cooper & Co coffee and the Organic Kids nursery school. The Esplanade Quarter public car park provides pay and display spaces which are very easily accessible to customers of the scheme, on the opposite side of the A1 Esplanade. It is owned and is being developed by The Jersey Development Company ( JDC ) as the International Finance Centre in six Grade A office buildings, the first of which was completed in 2017 and is virtually fully let. Importantly, when it is fully developed a 520 space public car park will remain at the site, in addition to dedicated parking for the offices. Opposite the property, on the other side of La Rue de L Etau, is the site for Phase Two of The Horizon residential development which will include over 280 apartments and 194 basement car parking spaces. Phase 1 was launched in winter 2017 and is already 70% sold. Phase 2 launched on 8th June 2018: JDC is the owner and developer of Horizon and also of the site to the north of the property which is being used as replacement parking during the development of the IFC and we are informed is to be developed as a further residential scheme in due course. Demand for apartments in the immediate locality of the scheme is extremely strong and JDC has contracted residential sales worth over 32 million over the last 6 months. ELIZABETH CASTLE ST. AUBIN S ROAD VICTORIA AVENUE WEST PARK A1 ESPLANADE A1 PEI RSON ROAD KENSINGTON PL. LA ROUTE ELIZABETH PL. SEATON PLACE GLOUCESTER ST.YORK ST. DE ESPLANADE ESPLANAD E LA ANLEY ST. CASTLE ST. LIBERATION RO UGE BOUILLON A1 BROAD ST. COMMERCIAL ST. A16 H NEW STREET. ILL ST LA ROUTE DU FORT VAL PLAISANT ST HELIER QUEEN ST. LA COLOMBERIE HAVRE DES PAS A4 LA COLOMBER I E ROAD ST. SAVIOUR S LA ROUTE DU FORT S MORT M ILLAIS T. CLEMENT S RD MORT MILLAIS. GEORGETO WN ROAD A4 GREEN RO BAGATELLE ROAD BAGOT ROAD RUE DE BEAUV LES VAINES ST CLEMENTS GOLF AND SPORTS CENTRE AD LA GRANDE ROUTE DE SAINT-CLEMENT LES VAINES LE COLOMBIER DE LA VILLE RUE 03

5 Town Centre A1 Esplanade Temporary Parking Radisson Blu Esplanade Quarter / IFC Horizon Waterfront Gardens Waterfront Gardens Parking Entrance 04

Unemployment at 4% is lower than 4.4% in the UK and only 16.4% of households have no access to a car, compared to 26% for the UK.

6 DEMOGRAPHICS Jersey has a resident population of 102,700 people which is growing by approximately 1% per annum. The population is affluent and social grade indicators show that 56% of the island population falls under an ABC1 equivalent category, compared to the UK proportion of 53%. Unemployment at 4% is lower than 4.4% in the UK and only 16.4% of households have no access to a car, compared to 26% for the UK. 727,000 PEOPLE VISITED JERSEY IN 2017 AND A TARGET TO GROW VISITORS TO 1 MILLION PA Tourism is a major additional benefit for the island, with an estimated 727,000 people visiting in 2017 and a target to grow annual visitor numbers to 1 million people by 2030 (Jersey.com and gov.je). DESCRIPTION The Waterfront occupies a site of approximately 3.6 acres and is a modern leisure scheme with dual anchors of a 10 screen Cineworld multiplex and the Aquasplash indoor and outdoor swimming pool and waterpark, both of which are unrivalled customer draws for the island. The scheme also incorporates multiple UK and international names, including Fitness First, KFC, Pizza Hut and TGI Friday restaurants. There is also the Tamba gaming arcade and the Bar & Canteen bar restaurant with its large roof terrace. Entrances to the two anchor tenants lie each side of a central courtyard which provides outdoor space for customers and outside seating for the bar and restaurant tenants. The Waterfront has a long and well established position as the major leisure draw for the island and the gym, bars and restaurants also benefit from the large and growing office and residential provision in the close locality of the scheme. 83.6% OF ADULTS HAVE ACCESS TO AT LEAST ONE CAR R U E DE L ETAU A 1 102,700 E S P L A N A DE A 1 JERSEY RESIDENT POPULATION L A R T E D U PORT ELIZABETH TENURE The property is owned on a long leasehold basis from The States of Jersey, with an unexpired term in excess of 133 years, at a rent of 1 pa if demanded. HORIZON PHASE 2 WAT ERFRONT GA R D E NS 05

8 TENANCIES & ACCOMMODATION The property is fully let with a WAULT of years and WAULT to tenants breaks of 9.36 years, on an effective full repairing and insuring basis with five yearly upward only rent reviews, on the following summarised terms: Unit Tenant Lease Expiry Current Annual Rent Area (sq ft) Rent per sq ft Next Rent Review Annual Rental Value Annual Rental Value (psf) Comments Multiplex Cinema Restaurant 1 Restaurant 2 Cine UK Limited t/a Cineworld Scotco Restaurants Jersey Limited t/a Pizza Hut Scotco Restaurants Jersey Limited t/a KFC 04/12/ ,680 35, /12/ , /11/ ,500 3, /11/ , Surety: Scotco Restaurants Ltd 20/11/ ,000 3, /11/ , Surety: Scotco Restaurants Ltd Stated area for rent review is 35,247 sqft. Measured area 37,603 sq ft. Mutual option to break on 5th December 2027 with 6 months notice. In the event that the Waterfront multi-storey car park is reduced below 250 spaces or taken out of public use after 5th December 2027 the tenant can determine the lease on 6 months notice. Bar Restaurant Thursdays UK Limited t/a TGI Fridays 27/09/ ,000 8, /09/ , Gaming Arcade Lily Lea Limited t/a Tamba Gaming Arcade 31/12/ ,000 14, /01/ , Rent topped up to stepped rent on 1/1/2019 and there is a subsequent increase on 1/1/2020 to 100,000 pa. Tenant s option to break on 1st January 2026 on 6 months notice. Gym St Brelades Bay Fitness Ltd t/a Fitness First 04/12/ ,540 15, /12/ , Fixed rental increase to 234,780 pa on 5/12/2022. Guarantor: St Brelades Bay Hotel Properties Ltd. The Bar Citann Limited t/a The Bar & Canteen 24/12/ ,000 10, /12/ , Stated area for rent review 10,680 sq ft. Measured area 11,039 sq ft, including balcony of 2,826 sq ft. Guarantor: The Liberation Group Ltd Acquatic Centre The Public of the Island of Jersey t/a Aquasplash 12/09/ The Landlord has a right to break the sub-lease on 6 months notice if demolition is required in connection with refurbishment or redevelopment or reconstruction on every 25th anniversary of the term, with the first such anniversary being 19/07/2028. Total 1,161,721 90, ,300, There is no equivalent under Jersey law to the security of tenure provisions of the 1954 Landlord & Tenant Act, so at lease end tenants do not have automatic statutory rights to renew. 07

TENANTS COVENANTS Jersey registered companies are not bound to release financial information in the same way as companies that are

Rating Multiplex Cinema Cine UK Limited UK Dec 2016 239,172 31,918 103,167 Low Risk Restaurant 1 & 2 Scotco Restaurants Jersey Limited

9 TENANTS COVENANTS Jersey registered companies are not bound to release financial information in the same way as companies that are registered in the UK, however a number of UK companies can be relied upon to meet the lease liabilities and each tenant s latest published accounts are summarised below. 100% of the current income leased to, or guaranteed by, UK registered companies is rated Low Risk or Very Low Risk by Experian and this comprises 68% of the current income. Unit Tenant Company Domicile Year Ending Turnover 000 s Pre-Tax Profit 000 s Total Assets less Current Liabilities 000 s Experian Risk Rating Multiplex Cinema Cine UK Limited UK Dec ,172 31, ,167 Low Risk Restaurant 1 & 2 Scotco Restaurants Jersey Limited Jersey Restaurant 1 & 2 Scotco Restaurants Ltd UK Dec ,341 1,755 13,875 Very Low Risk Bar Restaurant Thursdays UK Limited UK Jan ,007 21,006 82,877 Very Low Risk Gaming Arcade Lily Lea Limited Jersey Gym St Brelades Bay Fitness Limited Jersey Gym St Brelades Bay Hotel Properties Limited Jersey The Bar Citann Limited Jersey The Bar The Liberation Group Ltd Jersey 08

PLANNING Planning permission for the scheme was granted in January 2001 to Construct new building comprising leisure pool, health & fitness club,

The property is allocated in the 2011 Jersey Island Plan as being within the Built Up Area and the Town of St Helier.

10 PLANNING Planning permission for the scheme was granted in January 2001 to Construct new building comprising leisure pool, health & fitness club, multi-plex cinema, restaurant/bars, nightclub and public house. The property is allocated in the 2011 Jersey Island Plan as being within the Built Up Area and the Town of St Helier. The Town Centre Area starts on the opposite side of the A1 Esplanade and The Waterfront Gardens, which lie above the Waterfront underground multi-storey car park immediately to the south of the scheme, are allocated in the Plan as Protected Open Space. 09

11 ASSET MANAGEMENT In the short term there is a good opportunity to increase the passing rent through settlement of the outstanding rent reviews. In the medium and longer term the scheme will benefit from active asset management to refresh the tenant line-up as consumer tastes evolve and to regear leases for the key tenants. The scheme comprises a robust offer which will give the buyer the opportunity to enjoy unthreatened market dominance on the island of Jersey, with values supported by the opportunity to incorporate higher density residential use in the longer term. PROPOSAL We are seeking 15,610,000 (fifteen million six hundred and ten thousand pounds) for this asset on our client s behalf, subject to contract and exclusive of GST. A purchase at this level would reflect a net initial yield of 7.00% on the current passing rent, 7.52% on settlement of the outstanding rent reviews and an equivalent yield of 7.73% after assumed purchaser s costs of 6.32%. Subject to contract and exclusive of GST. TOGC Goods and Services Tax ( GST ) of 5% may be payable on acquisition but it is anticipated that that the sale will be able to be treated as a transfer of a going concern with no charge for GST, subject to the GST status of Purchaser. CONTACTS Will Andrews Mark Smith T T M M E wandrews@klmretail.com E msmith@klmretail.com Stamp Duty will be payable on Lease assignment on completion. EPC EPCs are not required under Jersey law. SURVEYS Assignable measured and building surveys and an environmental audit are available upon request. MISREPRESENTATION ACT: KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (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 as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of KLM Retail LLP, KLM Out of Town Retail & Leisure Ltd or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to KLM Retail and KLM Out of Town Retail Ltd include any joint agents acting with KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd. June 2018.

HADDEN HILL RETAIL PARK DIDCOT, OX11 9DA THE GARDEN TOWN S ONLY RETAIL PARK PRIME & SECURE INVESTMENT OPPORTUNITY IN GROWING CATCHMENT

HADDEN HILL RETAIL PARK DIDCOT, OX11 9DA THE GARDEN TOWN S ONLY RETAIL PARK PRIME & SECURE INVESTMENT OPPORTUNITY IN GROWING CATCHMENT Didcot is a south east commuter town located approximately 12 miles