STOCKLUND HOUSE, EAST STREET, CHICHESTER PO19 1JE … · services across multiple channels. Further information can be found at Phone-In Ltd are a specialist mobile telephone retailer

STOCKLUND HOUSE, EAST STREET, CHICHESTER PO19 1JERETAIL & OFFICE INVESTMENT

Stocklund House East St, Chichester PO19 1JE

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Investment Summary › Chichester is an historic, attractive Cathedral City

located on the south coast.

› Affluent demographic and a sought after retail investment location, with low vacancy rates and due to the historic nature of the city, limited scope for future development.

› Three well configured ground floor retail units, with first floor offices above. Second floor residential and third floor penthouse sold off.

› Extensive combined retail frontage onto the south side of East Street, with a return frontage onto St John’s Street.

› Virtual Freehold, 999 years at a peppercorn.

› Multi-let to to three retail tenants and one office tenant producing a total rent of £217,500 per annum.

› Three retail tenants and one office tenant with a WAULT of approximately 4.9 years to expiries, no breaks.

› Numerous asset management opportunities to include lease re-gears and extensions, potential to create a single large retail / restaurant unit, and conversion of 1st floor offices to residential (Subject to Planning).

› Our client is seeking offers in excess of £3,400,000 subject to contract & exclusive of VAT. An acquisition at this level reflects an attractive net initial yield of 6.01% after purchaser’s costs of 6.49%.

Chichester is one of the premier retailing destinations in the south of England

Stocklund HouseEast St, Chichester PO19 1JE

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M3

M27 A3(M)

M25

M23

A31

A31A27

A24

A23

A34

A33

A36

A3

A3

A272

A286

A303

A339A346

PORTSMOUTHBRIGHTON

SOUTHAMPTON

WINCHESTER

Basingstoke Leatherhead

Farnham

Petersfield Midhurst

CHICHESTER

New Forest

South DownsSouthamptonAirport

Gatwick Airport

Cowes

Crawley

Andover

Fareham

J7

E A S T S T R E E T

A2

86

OR C H

A R D ST R E E T

AV

EN

UE

DE

CH

AR

TR

ES

NO

RT

H S

TR

EE

T

SO

UT

H S

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Cathedral

LibraryCinema

Priory Park

Chichester

STOCKLUND HOUSE

A 2 8 6 MA R K E T R

O A D

W E S T S T R E E T

A 2 8 5

Location

Chichester is an historic Cathedral City and popular retail destination, located on the south coast, approximately 68 miles south west of London, 17 miles east of Portsmouth and 34 miles west of Brighton.

The A27 dual carriageway provides excellent road communications linking Brighton to the east and Portsmouth to the west. Furthermore the A3, which lies 12 miles to the west of the city, provides access to London.

Situation

The property is situated on the south side of East Street, in close proximity to H&M, TK Maxx, New Look and Next.

A number of restaurants and coff ee shops are close by including ASK Italian Restaurant, Brasserie Blanc and Caff é Nero.


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Demographics & Retailing in Chichester

The total population within the Chichester primary catchment area is 248,000, with an estimated shopping population of 154,000 (PROMIS). Tourism plays an important role in Chichester, swelling local population numbers to over 1.5 million people per annum.

Chichester benefits from one of the most affluent populations in the UK, with significantly above average representation of the most affluent AB social group and an under-representation of the least affluent social groups, D and E.

Home ownership in Chichester is above average with 66% of the population owning their homes.

Chichester is one of the premier retailing destinations in the south of England. The city’s prime retail core is found along the pedestrianised section of East Street, where retailers include Next, Clarks, Marks & Spencer, Monsoon, Costa Coffee and Caffé Nero.

As well as a good representation of national multiple retailers, Chichester is home to a large selection of upmarket and independent retailers who complement the attractive historic architecture which the city has to offer.

Well known aspirational brands found in Chichester include Molton Brown, LK Bennett, White Stuff, Jack Wills and Fat Face.

There are currently no managed shopping centres in Chichester and with the historic nature of the City there is limited scope for future development to compete with the vibrant retail the high street areas have to offer. Occupational demand for Chichester is strong, with PROMIS reporting the town to be ranked 25 in the UK in terms of reported tenant requirements.

H&M, TK Maxx and New Look have taken occupation of stores on East Street outside the traditional prime pedestrianised pitch in order to gain representation in the City in modern large units.

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An attractive four storey building with three retail units & 1st floor offices


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Description

The property comprises an attractive four storey building with three retail units at ground floor with frontage onto East Street and a return frontage along St John’s Street. There are offices at first floor level and residential units on the second floor with an independent penthouse located on the top floor.

The building was renovated in 2012 including conversion of the second floor from offices to three residential apartments and an additional storey added at third floor to provide a penthouse apartment.

External alterations included rendering at first and second floors, new double glazed uPVC sash windows and installation of a new lift core to service the residential apartments.

The building is of concrete frame construction with brickwork elevations rendered to include cornices and rendered bands providing attractive detailing.

The residential second and third floors have been sold off on a long leasehold basis.

The building is not listed and sits within the Chichester Conservation Area.


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Unit 1Unit 2Unit 3

E A S T S T R E E T

Ground Floor Not to scaleRear area excluded from sale

TenureVirtual Freehold, 999 years at a peppercorn.

Tenancies

The property is multi-let to 4 tenants in accordance with the tenancy schedule and produces £217,500 per annum.

The WAULT is approximately 4.9 years to expiries, there are no breaks.

Tenancy Schedule

UNIT USE AREA SQ M

AREA SQ FT TENANT LEASE

STARTLEASE EXPIRY

RENT REVIEW

RENT PER ANNUM

RENT PSF (ZONE A) COMMENT

Shop Unit 1 Retail 96.62 1,040 (698 ITZA)

The Real Eating Company Cafes Ltd t/a The Real Eating Company

04/06/2010 30/11/2021 N/A £65,000 £89.50

Reversionary lease signed dated 12/10/2016 extending current lease term to 30/11/2021. 2 months rent free from 04/06/2020 to 04/08/2020. Inside L&T Act 1954. Rent payable monthly pursuant to a side letter. Lease guaranteed by The Real Eating Company Group Ltd. 5% for return frontage.

Shop Unit 2 Retail 63.08 679 (564.5 ITZA) Phone-In Ltd 03/08/2010 30/11/2021 N/A £57,000 £101.00

Reversionary lease signed dated 01/03/2016 extending current lease term to 30/11/2021. Inside L&T Act 1954. Rent payable monthly pursuant to a side letter.

Shop Unit 3 Retail 94.11 1,013 (710 ITZA)

William Hill Organisation Ltd t/a William Hill 04/12/2012 29/11/2021 30/11/2016 £58,000 £81.50 Inside L&T Act 1954.

First Floor Offices 275.46 2,965 Workspace Chichester Ltd 21/12/2015 16/04/2021

Fixed increase

21/12/2016

£37,500(£12.65 psf) N/A

Current passing rent of £25,000 p.a. with stepped increase to £37,500 p.a. on 21/12/2016 to be topped up by vendor. Outside L&T Act 1954. Repairing covenant subject to a schedule of condition.

TOTAL 529.27 5,697 £217,500


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COVENANT INFORMATION

Established in 2004, the Real Eating Company is an independent restaurant and café business specialising in serving food from sustainable sources and local producers. The company currently trades from 6 locations across the south east (Bournemouth x 2, Chichester, Horsham, Lewes, Salisbury) and is due to open their 7th restaurant in Kingston upon Thames before the end of 2016.

Further information can be found at www.real-eating.co.uk

William Hill are one of the UK’s leading bookmakers and one of the most recognised brands in the gambling industry, providing gaming and betting services across multiple channels.

Further information can be found at www.williamhillplc.com

Phone-In Ltd are a specialist mobile telephone retailer off ering sales, repair, data recovery and unlocking to private and business customers.

They have been trading from Unit 2 Stocklund House for over 20 years.

Further information can be found at www.phoneinchichester.co.uk

Workspace Chichester provide serviced offi ce accommodation across 3 locations in Chichester.

Further information can be found at www.workspacechichester.co.uk


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Rental CommentaryPrime retail rents on East Street have recently been achieved at £170+ Zone A. The restricted supply of available accommodation, low vacancy rates and strong levels of occupational demand provide strong fundamentals for future rental growth.

We have analysed the current passing rents to reflect between £80 and £100 Zone A.

Asset Management OpportunitiesThe property provides a purchaser with a number of asset management initiatives to explore, which include the following, subject to necessary consents:

› Negotiate lease re-gears and extensions with existing tenants.

› Create a single retail unit arranged over ground or ground and first floors (STP).

› Secure a change of use to A3 for restaurant use across ground and first floors (STP).

› Gain residential consent for the first floor offices (STP).

› Sale of first floor office accommodation.

Investment ComparablesRecent investment transactions in Chichester include the following:

ADDRESS TENANT TERM CERTAIN YIELD PRICE DATE

16-17 North Street WH Smith 6 years 4.25% £3.62m Marketing

4 East Street Oasis 10 years 3.69% £2.55m 2016

26 East Street Everything Everywhere Ltd 5 years 5.08% £1.80m 2016

43 East Street(opposite subject property)

TK Maxx 11 years 4.85% £8.77m 2015

13 North Street Starbucks Coffee Co 6 years 4.50% £1.645m 2015

87/88 East Street Lush / Mint Velvet 4 years 4.70% £3.58m 2015

21 East Street Halifax 7 years 4.40% £3.525m 2015

Misrepresentation Act 1967 Tudor Toone Ltd, for itself and for the vendors of this property, hereby give notice that:

These particulars do not constitute, nor constitute any part of, an offer or contract.

Tudor Toone Ltd and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations.

Neither Tudor Toone Ltd nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property.

Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. Unless otherwise stated all prices and rents are quoted exclusive of value added tax (VAT).

Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction.

Subject to contract & exclusive of VAT.

Tudor Toone Ltd is a limited company registered in England and Wales (registered number 7330167). Registered office: 41/43 Maddox Street London W1S 2PD.

Details prepared December 2016.

Subject to Contract and Exclusive of VAT

Service ChargeThere is a service charge which relates to the external upkeep of the property. The budget for year end 31st May 2017 is £2,282.50.

VATThe property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

EPCA copy of the EPC is available in the data room.

Data RoomA data room has been set up by the solicitors to provide details of all the property and legal information which is deemed relevant to the sale.

This will include the following:

› Title information › Occupational leases › Existing floor plans

› EPCs › Marketing details

Proposal Offers are sought in excess of £3,400,000 (Three Million, Four Hundred Thousand Pounds) subject to contract and exclusive of VAT.

This reflects an attractive net initial yield of 6.01% after purchaser’s costs of 6.49%.

Further InformationFor further information or to arrange an inspection, please contact: -

Lee Evans Tel: 0207 495 5550 BSC (Hons) MRICS Mob: 07900 581 920 Associate Email: [email protected]

Hugh Faith Tel: 0207 495 5550 BA (Hons) Msc MRICS Mob: 07824 810 910 Associate Email: [email protected]

Documents

STOCKLUND HOUSE, EAST STREET, CHICHESTER PO19 1JE … · services across multiple channels. Further information can be found at Phone-In Ltd are a specialist mobile telephone retailer