Stratford Upon Avon PRIME BOUTIQUE RETAIL ARCADE INVESTMENT Old Red Lion Court Bridge Street Stratford Upon Avon CV37 6AB
INVESTMENT SUMMARY Boutique shopping arcade comprising 11 retail units. Highly prominent scheme located in Stratford-upon-Avon s prime shopping pitch of Bridge Street. Stratford-upon-Avon is an affluent market town and tourist destination with an estimated 4.9 million visitors annually. Let to 9 tenants including Talk Talk, Phase Eight, Photo Zone, Ask and Freebrights with an attractive WAULT of 6.69 years term certain. Total rental income 299,500 per annum. Highly reversionary - ERV for the property is 339,200 per annum. Offers sought in excess of 3,400,000 which reflects an attractive net initial yield of 8.25% and a reversionary yield of 9.38% after purchaser s costs of 6.49%.
SITUATION The property occupies a prominent position on the southern side of Bridge Street opposite Marks and Spencer, in the heart of Stratford-upon-Avon s prime shopping pitch. Bridge Street is the main arterial route for vehicles through the town centre and with excellent roadside parking provision it forms a key part of Stratford-upon-Avon s tourism and retail centre. Bridge Street also runs into the pedestrianised Henley Street, where Shakespeare s birthplace is located and because of these factors the property benefits from excellent footfall and passing trade. Other national retailers in the immediate vicinity include New Look, Sainsbury s, Laura Ashley, Jaeger, The Edinburgh Woollen Mill, Jo Malone and The White Company. LOCATION Stratford-upon-Avon is an affluent and attractive market town located 8 miles to the west of Warwick and 22 miles south east of Birmingham. The A46 and A439 provide direct access to J15 of M40 motorway which is situated 7 miles to the north east. Regular services link Stratford upon Avon to Birmingham Snow Hill (45 mins) and London Marylebone (2 hours) and as a result it is a popular choice for commuters and tourists alike. Worcester Birmingham Stratford Upon Avon Coventry Royal Leamington Spa Rugby The property is situated adjacent to Sainsbury s, Poundland and McDonalds and can be accessed from both Bridge Street or Sheep Street to the rear via the car park / loading area (not within the demise) and Shrieves Walk shopping arcade. On street Pay and Display car parking can be found directly outside the front of the property along Bridge Street. Owing to its status as birthplace of English playwright and poet William Shakespeare, the town receives an estimated 4.9 million visitors annually contributing 135 million per annum to the local economy. Stratford has a population of 120,485 and has one of the most affluent catchments, ranking 10th of PROMIS centres on the PMA affluence indicator. The area has a significantly above average proportion of adults of working age categorised within the most affluent AB social group. Cheltenham Oxford
RETAILING IN STRATFORD-UPON-AVON Town centre retail space in Stratford is estimated at totalling 650,000 sq ft with the prime pitch centred around Bridge Street, Henley Street and High Street. The Town Square Shopping Centre reopened as Bell Court in 2017 and has been redeveloped into a leisure dominated scheme of 70,000 sq ft including 20 leisure and retail units anchored by a 4 screen Everyman cinema. Tenants include Byron Burger, Nandos, Ask, Veeno, Miller & Carter, Lush, All Bar One and Sea-Salt. All of which have either just opened or are fitting out currently. Prime rents in Stratford-upon-Avon are currently in the region of 140 psf Zone A, however rents are still 4% below the pre-recession peak at 145 psf Zone A, demonstrating future rental growth potential. 26 Bridge Street New Look September 2016-10 year renewal 6m Rent Free Net Effective ITZA of 133 2B Bridge Street - Greggs July 2017-10 year lease 5 year break renewal No Rent Free Net Effective ITZA of 120 11 Bridge Street Boots March 2016-5 year renewal No Rent Free Net Effective ITZA of 130
DESCRIPTION The property comprises two, two storey retail units fronting onto Bridge Street with ground floor retail and sales and storage at first floor level. Between the units is a walkway leading onto an open courtyard providing a nine unit retail arcade. The units are predominantly two storey with ground floor sales and a mixture of further sales and stores at first floor. The two units that front onto Bridge Street are Grade II listed. The walkway leads onto a loading yard (not within the demise) and further to Sheep Street, the prime leisure pitch, to the rear. TENURE Freehold. ACCOMMODATION AND TENANCY SCHEDULE The property is let to 9 occupiers with a further two units currently under offer. The property produces a total rental income of 299,500 per annum and is highly reversionary with an ERV of 339,200 per annum. The WAULT to break is 6.69 years and 8.69 years to expiry. A summary of the tenancies is set out in the schedule below: Unit Tenant ITZA (Sq ft) Ground Floor Area (Sq ft) First Floor Area (Sq ft) Floor Area Total (Sq ft) Lease Start Date Lease Expiry Date Break Date Review Date Passing Rent WAULT Break WAULT Expiry ERV % Income Unit 1 Freebrights Limited 848 1586 1207 2,793 24/02/2015 23/02/2035 24/02/2030 24/02/2020 80,000 12.32 17.32 116,000 26.71% Comments Unit 2 Talk Talk Mobile Phones Limited 439 770 860 1,630 01/02/2013 31/01/2023-01/02/2018 52,500 5.25 5.25 63,000 17.53% Unit 3 Under Offer - Roobard Kids Ltd 250 250-250 TBC 5 years 3 years 3 years 12,000 3.00 3.00 12,000 4.01% 1 month rent free. Unit 4 Oakley & Irvine Stratford Upon Avon 379 379 300 679 09/12/2014 08/12/2024 09/12/2019 09/12/2019 17,500 2.10 7.11 17,500 5.84% Limited Unit 5 Under Offer - Dolls Dressing Room Ltd 220 220 185 405 TBC 5 years - - 12,000 5.00 5.00 12,000 4.01% 6 month rent deposit provided. No rent free. Unit 6 Phase Eight (Fashion & Designs) Limited 403 403 368 771 25/12/2014 24/12/2017 - - 16,000 0.15 0.15 17,000 5.34% Tenant has offered a new 3 year lease renewal. Unit 7 Azzurri Restaurants Ltd 907 1098 1451 2,549 02/10/1998 01/10/2028-02/08/2018 50,000 10.92 10.92 34,500 16.69% Sub-let to Sarto Mens and Ladies Wear Ltd for a term expiring on 29 September 2028. Sub-rent 30,000 per annum. Unit 8 Sam Bush 462 462 361 823 27/10/2017 15/01/22 16/01/19-17,500 1.21 4.21 19,100 5.84% Stepped rent: initial 16,500 pa, rising to 17,500 16 Jan 2018. Rent topped up to Jan 2018 increase. Unit 9 Photo Zone Ltd 346 359 328 687 09/04/2013 08/04/2018 - - 14,000 0.43 0.43 14,600 4.67% Tenant has offered a new 5 year lease renewal. Unit 10 Omed Jamalzadeh & Samantha Ann Jamalzadeh 336 348 321 669 07/08/2015 06/08/2025 07/08/2020 07/08/2020 12,000 2.77 7.77 16,000 4.01% Unit 11 Andrew Daniel Nicholas 365 395 366 761 25/03/1989 16,000 0.00 0.00 17,500 5.34% Tenant is holding over. Total 12,017 299,500 6.69 8.69 339,200 100%
INVESTMENT COMPARABLES Stratford-upon-Avon has been a popular location for investors due to its affluence and strong retailing pedigree. Below are the most recent transactions within the town. Address Tenant Term Rent pa Date Price NIY % Certain Yrs 31 Bridge St Holland & Barrett 3.50 73,900 Aug-17 1,275,000 5.40% 19 Bridge St Jo Malone 4.00 75,000 Jan-17 1,530,000 4.62% 17/18 High St Blacks Outdoor 3.25 100,000 Dec-16 1,370,000 6.88% 11 Bridge St Boots 5.00 280,000 Jul-16 5,000,000 5.25% 12-13 Bridge St Joules 8.50 100,000 Apr-16 1,793,000 5.30% SERVICE CHARGE There is a service charge in operation at the property which is fully recoverable from the tenants. This currently operates at a cost of 58,998 ( 4.90 per sq ft.) for the year end 31 December 2017. Further information is available on request. There are no landlord shortfalls. VAT The property is elected for VAT and VAT will be chargeable on the purchase price. It is anticipated that the purchase will be treated as a TOGC. EPCs Copies of all the EPCs are available on request. PROPOSAL We are instructed to seek offers in excess of 3,400,000 (Three Million Four Hundred Thousand Pounds) which reflects an attractive net initial yield of 8.25% and a reversionary yield of 9.38% after purchaser s costs of 6.49%.
FURTHER INFORMATION For further information or if you wish to arrange a viewing please do not hesitate to contact: Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham B3 3BD BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk TIM COX 01789 269 444 tim.cox@timcox.co.uk Tim Cox Associates 37 Guild Street Stratford upon Avon CV37 6QY JAMES HEMSTOCK 0121 513 0894 james.hemstock@fspproperty.co.uk Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, Tim Cox Associates nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.