17-19 CORNHILL AND 1 TAVERN STREET IPSWICH PRIME RETAIL INVESTMENT OPPORTUNITY

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Domenic Wilkerson
6 years ago
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1 17-19 CORNHILL AND 1 TAVERN STREET IPSWICH PRIME RETAIL INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY Ipswich is the largest town in Suffolk and one of the principal shopping centres in East Anglia 100% prime freehold High Street retail unit Located on the prime pedestrianised

2 INVESTMENT SUMMARY Ipswich is the largest town in Suffolk and one of the principal shopping centres in East Anglia 100% prime freehold High Street retail unit Located on the prime pedestrianised Cornhill Street, between Debenhams department store and the entrance to the Tower Ramparts shopping centre New 5 year FR&I lease off a rebased rent let to Burton/Dorothy Perkins Properties Limited. Potential to convert upper floors and car park to residential subject to planning We are instructed to seek offers in excess of 3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 6.64%, after allowing for purchaser s costs of 6.45%.

LOCATION Cambridge A14 A14 A14 Bury St Edmunds A14 A140 A12 Ipswich is the county town of Suffolk, England, located on the estuary of the River Orwell, approximately 82 miles (132km)

Ipswich benefits from excellent road communications located at the junction of the A14 and A12 which links directly with Junction 28 of the M25 Motorway.

3 LOCATION Cambridge A14 A14 A14 Bury St Edmunds A14 A140 A12 Ipswich is the county town of Suffolk, England, located on the estuary of the River Orwell, approximately 82 miles (132km) north east of Central London, 58 miles (93km) east of Cambridge and 42 miles (68km) south of Norwich. Ipswich benefits from excellent road communications located at the junction of the A14 and A12 which links directly with Junction 28 of the M25 Motorway. The town also benefits from regular rail services to London Liverpool Street with fastest journey times of approximately 1 hour 10 minutes. Stansted Airport is approximately 40 miles (64 km) to the south west. A10 A10 A10 M11 M11 M11 Harlow A11 A120 A131 A120 A12 A134 A12 Colchester A14 Ipswich A12

4 DEMOGRAPHIC PROFILE The total population within the Ipswich primary catchment area is 391,000 and is projected to see above average growth in population over the period The estimated shopping population of Ipswich is 270,000, ranking the town 37 of the PROMIS centres. The service sector as a whole accounts for 60% of total employment in Ipswich, above the Retail PROMIS average. The Professional & Business Services and Finance sectors together account for an above average 15.4% of total employment, whilst the retailing and leisure sectors account for 23.2% of total employment, around the Retail PROMIS average (Promis, 2017). The larger Finance employers in Ipswich include Ipswich Building Society, Legal & General, Churchill, Willis and AXA. Professional & Business Service firms based in the town include solicitors AshtonKCJ, Birketts and Eversheds, as well as accountants Ensors and Grant Thornton.

RETAILING IN IPSWICH SITUATION The town centre retail floor space in Ipswich is estimated at

H&M, New Look, Topshop/Topman, Jack Wills and River Island.

market fashion offer spread across the main retail pitches in the town centre.

comprises 125,000 sq ft and is anchored by Boots and new stores for River Island and Pandora.

The centre has recently undergone a major 25.

5 RETAILING IN IPSWICH SITUATION The town centre retail floor space in Ipswich is estimated at 1.30 million sq ft with the prime retailing centred along the pedestrianised stretch of Tavern Street and Westgate Street. Ipswich has a relatively strong representation of fashion retailers including Next, Primark, H&M, New Look, Topshop/Topman, Jack Wills and River Island. Value retailers are also well represented with Wilkinson, Bon Marche, Poundland, Peacocks and 99p Stores in the town. Along with a Marks & Spencer store and Debenhams department store, Ipswich has a good mass market fashion offer spread across the main retail pitches in the town centre. The town s principle shopping centre, Tower Ramparts, has recently been refurbished and comprises 125,000 sq ft and is anchored by Boots and new stores for River Island and Pandora. The larger of Ipswich s two centres is the 235,000 sq ft Buttermarket Shopping Centre. The centre has recently undergone a major 25.1m refurbishment and reconfiguration and is now anchored by a 12 screen Empire cinema and family entertainment centre. A new 20,000 sq ft Pure Gym has also been introduced along with nine new restaurant units, occupiers include; Coast to Coast, Byron, Wagamama, Prezzo and Cosy Club. The subject property is situated in a prime trading location between the pedestrianised Westgate Street and Tavern Street, adjacent to Lloyds bank, whilst in close proximity to Debenhams and the entrance to the Tower Ramparts centre.

6 For Identification purposes only NORTH

DESCRIPTION The property comprises a well configured retail unit arranged over three floors,

on the first and second floors. The unit is serviced from Cornhill.

practice (6th Edition) and provides the following approximate floor areas: Accommodation Area (sq

7 DESCRIPTION The property comprises a well configured retail unit arranged over three floors, providing sales accommodation on ground and first floor with additional ancillary accommodation on the first and second floors. The unit is serviced from Cornhill. The demise also includes the car park to the rear of Cornhill, comprising approximately 0.19 acres. ACCOMODATION The property has been measured in accordance with the RICS Code of Measuring practice (6th Edition) and provides the following approximate floor areas: Accommodation Area (sq ft) Area (sq m) Ground Floor Sales 2, Ground Floor ITZA 1,413 units Basement Storage First Floor Sales 2, Second Floor Storage 2, Total 8, TENURE The property is held freehold.

TENANCY The property is let in accordance with the tenancy schedule set out below, producing a current rental income of 212,000 pax.

Burton/Dorothy Perkins Properties Limited recently entered into a lease renewal for a term of 5 years from 1st February 2017 at a passing rent of

TENANCY SCHEDULE Description Tenant Name Trading as Lease Start Expiry Date Passing Rent p.

8 TENANCY The property is let in accordance with the tenancy schedule set out below, producing a current rental income of 212,000 pax Cornhill is let on effectively Full Repairing and Insuring terms. The car park is subject to a schedule of condition. Burton/Dorothy Perkins Properties Limited recently entered into a lease renewal for a term of 5 years from 1st February 2017 at a passing rent of 200,000 per annum. The tenant received 6 months rent free devaluing to a Gross Zone A of rent of and a Net Zone A rent of per sq ft. TENANCY SCHEDULE Description Tenant Name Trading as Lease Start Expiry Date Passing Rent p.a Passing Rent (Zone A/ sq ft) Cornhill Burton/Dorothy Perkins Properties Limited Burton/Dorothy Perkins 01/02/17 31/01/22 200, Car Park National Car Parks Limited National Car Parks 30/05/17 29/05/22 12,000 Total 212,000

COVENANT We have reviewed the covenant strength of the current tenants in the building and have summarised their most recent accounts below: Burton /Dorothy Perkins Properties Limited 27/08/2016

9 COVENANT We have reviewed the covenant strength of the current tenants in the building and have summarised their most recent accounts below: Burton /Dorothy Perkins Properties Limited 27/08/ /08/ /08/2014 Experian Score GBP GBP GBP Turnover 10,971,000 4,199,000 - Pre-tax profit 199, , Net Worth - 272, ,000 1 NCP Limited 25/03/ /03/ /03/2014 Experian Score GBP GBP GBP Turnover 202,703, ,736, ,933,000 Pre-tax profit 28,001,000 14,859,000 9,435, Net Worth 186,896, ,975, ,754,000 VAT The property has not been elected for VAT. EPC An EPC for the property can be provided upon request.

PROPOSAL We are instructed to seek offers in excess of 3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 6.

The most salient comparable investment evidence can be set out as follows:- i) 13 Cornhill, Ipswich (Lloyds Bank) Prime freehold retail investment let to Lloyds bank on a 15 year lease to expire June

10 PROPOSAL We are instructed to seek offers in excess of 3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 6.64%, assuming purchaser s costs at 6.45%. The most salient comparable investment evidence can be set out as follows:- i) 13 Cornhill, Ipswich (Lloyds Bank) Prime freehold retail investment let to Lloyds bank on a 15 year lease to expire June 2026 at a passing rent of 275,000. Purchased by a private investor in August 2016 for 4.1m, reflecting a net initial yield of 6.30%. ii) 33 Tavern Street, Ipswich (Lush) Freehold retail investment let to Lush on a lease to expire November 2022 at a passing rent of 73,000. Purchased by a private investor in December 2016 for 1.025m reflecting a net initial yield of 6.70%. iii) 46/48 Tavern Street, Ipswich (Poundworld) Freehold retail investment let to Poundworld on a new 10 year from 20th January 2016 at a passing rent of 190,000 per annum. Purchased by Goodlife Properties Ltd in June 2016 for 2.825m reflecting a net initial yield of 6.32%.

For further information, please contact the sale agents, Jackson Criss: DESIGNED BY TCC John Boissier 020 7637 7100 johnb@jacksoncriss.co.uk Brook Wannop 020 7637 7100 brookw@jacksoncriss.co.uk Messrs.

11 For further information, please contact the sale agents, Jackson Criss: DESIGNED BY TCC John Boissier Brook Wannop 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. JC0107. July 2017.

136/140 High Street GUILDFORD

136/140 High Street GUILDFORD PRIME FREEHOLD HIGH STREET INVESTMENT FOR SALE INVESTMENT SUMMARY The highly affluent south east town of Guildford is one of the UK s premier retail destinations outside of