229 HIGH STREET & 32-33 GANDY STREET EXETER EX4 3NE · include Geneva, Madrid, Munich, Nice, Dublin...

INVESTMENT SUMMARY

• Prime retail and restaurant investment situated in the historic Cathedral and University city of Exeter, the principal commercial centre for Devon.

• Exeter is a dominant retailing centre with an affluent catchment.

• Prime location fronting the High Street in close proximity to the Princesshay Shopping Centre.

• Large retail unit over four floors fronting the High Street let to Urban Outfitters and a prominent restaurant over ground and first floor to the rear, fronting Gandy Street and let to Bill’s.

• Average weighted unexpired lease term of 10.13 years to expiry.

• Our clients are seeking offers in excess of £5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.5%, after allowing for purchaser’s cost of 6.62%.



229 HIGH STREET & 32-33 GANDY STREET EX4 3NE PRIME FREEHOLD RETAIL & RESTAURANT INVESTMENT FOR SALE


LOCATION

Exeter is an historic Cathedral and University city located in the south west of England. The city is the main commercial centre for Devon and is located approximately 45 miles (72 km) east of Plymouth, 81 miles (130 km) south west of Bristol and 175 miles (280 km) south west of London.

Exeter benefits from excellent transport links being located at the southern end of the M5 which links with the M4 and the national motorway network. To the west of Exeter is the A38 (Devon expressway) giving direct access to Plymouth and the A30 to Cornwall. The A30 also links the A303 to the east, providing a trunk road connection to the M3 motorway and there on to London.

The city has a comprehensive rail service which links to the national rail network from both Exeter Central and Exeter St Davids. Fastest journey time to London Paddington is approximately 2.5 hours and to London Waterloo 3.5 hours.

Exeter International Airport is located 6 miles (10 km) to the east of the city with a range of UK and international flights to destinations that include Geneva, Madrid, Munich, Nice, Dublin and Edinburgh.

SwindonSalisbury

Oxford

Reading

High Wycombe

BasingstokeGuildford

Crawley

Maidstone

RoyalTunbridge Wells

Chelmsford

LONDON

Portsmouth

BrightonEastbourne

Southend-on-sea

Hastings Ramsgate

Torquay

Taunton

Weston-Super-Mare

Cardiff

Swansea

Bath

Bristol

WinchesterBarnstaple

Newquay

Penzance

St Austell

Truro

DartmoorNational Park

ExmoorNational Park

M5

A30

A394

A30

A39

A39

Bournemouth

Weymouth

A38

PlymouthA390

Southampton

Newport

M5

M25

M3 FolkestoneDover

A303

A31

M4

A30

Exmouth

M4

EXETER





DEMOGRAPHIC PROFILE

Exeter has an estimated primary catchment population of approximately 508,000 people which is boosted significantly by tourism as well as a large student population. South West Tourism Alliance estimates approximately 500,000 staying visitors and over 1.5 million day visitors each year, spending in excess of £166 million per annum. Additionally, Exeter University is one of the top Russell Group universities in the country which together with Exeter College, attracts in excess of 28,000 students.

Exeter has an affluent catchment ranking 31st out of the 200 PROMIS Centres in terms of the volume of comparison retail spend available in the catchment area. Exeter is forecast to see above average percentage growth in the available pool of comparison spending between 2016 and 2021. Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are significantly above the PROMIS average.

Large scale employers in the city include The Met Office along with the University and Devon County Council. Other major businesses represented include EDF Energy and British Telecom.

SUBJECT PROPERTY





RETAILING IN EXETER

Exeter is a very established and thriving retail centre providing one of Devon’s primary shopping destinations with a total floor space estimated to be in excess of 1.39 million sq ft. The prime retail pitches are located within the pedestrianised section of the High Street between the Guildhall Centre and the John Lewis department store and Princesshay Shopping Centre.

Princessshay Shopping Centre was developed by Land Securities Plc and opened in 2007. The Centre extends to approximately 530,000 sq ft of retail space, anchored by a 130,000 sq ft Debenhams department store with other retailers including Zara, Top Shop, Hollister, Superdry, New Look and Fat Face.

At the other end of the High Street, and on the opposite side to Princesshay is the Guildhall Shopping Centre which provides retail and restaurant space anchored by Primark, Wilko and Sainsbury’s. Aviva Investors have recently spent approximately £12 million remodelling the Queen Street restaurant area with occupiers including Gourmet Burger Kitchen, Polpo, Comptoir Libanais and Kupp which has underpinned this location as the destination for A3 within the city.

SITUATION

The subject property is situated in a prime position on the north-west side of the pedestrianised High Street within close proximity to both Princesshay Shopping Centre and the Guildhall Shopping Centre. Other nearby occupiers include Marks & Spencer, House of Fraser, H&M, Russell & Bromley and Tesco Metro.

The Goad extract plan highlights the subject property in blue.





NORTH

For Identification purposes only





DESCRIPTION

The existing buildings of 229 High Street and 32/34 Gandy Street have been extended and amended since their construction in the 1930s. The original building of 229 High Street includes the reuse of a salvaged Elizabethan shop front from North Street. The building also now includes a prominent mural which faces along the High Street.

The retail accommodation is arranged to provide sales accommodation over

ground and first floor with ancillary accommodation at basement and second floor.

The restaurant unit is arranged as ground floor sales with part first floor sales and part first floor ancillary.

Both units are let in accordance with the attached Tenancy Schedule.

COVENANT

A summary of the covenant strength of the two occupiers is highlighted.

ACCOMMODATION

The property comprises 14,264 sq ft in total and is arranged as one retail unit and one restaurant unit.

TenantExperian Credit

Score out of 100

URBN UK Limited 100

Bill’s Produce Store Limited 100





RENTAL COMMENTARY

Retail rents on Exeter High Street have remained stable over recent years with various transactions reinforcing the

rental tone. We set out below a series of comparable evidence for both the retail and restaurant unit.

TENANCY SCHEDULE

Address Tenant

Lease Info Areas Rent ERV

CommentsTerm

Start Date

Expiry Date

R/R GF ITZA BF 1st F 2nd F

229 High StreetURBN UK Ltd t/a Urban Outfitters

15 11.07.11 10.07.26 11.07.21 4,900 1,436 1,492 1,909 1,992£285,000 (£198.50 ZA)

£265,500 (£185 ZA)

Composite ITZA stated assuming A/12 on the ground remainder, A/16 on loading bay and A/20 on basement, 1st and 2nd floor. Set back frontage cancelled out by return. Rent capped at no greater than 115% of the previous rent at review.

32/33 Gandy StreetBills Produce Store Ltd t/a Bills

20 03.02.12 02.02.32 03.02.17 1,528 2,443 0£65,000 (£23.65 psf)

£71,500 (£26 psf)

February 2017 rent review outstanding.First floor @ half rate, gives WGIA 2,749.

Address Transaction Tenant Date Zone A psf

12/13 High Street OML Goldsmiths June 2016 £180

247/248 High Street RR Specsavers December 2015 £182

11 High St OML Smiggle September 2015 £183

247 High St OML Pret September 2015 £185

U18 Guildhall Centre OML Polpo March 2017 £38

U22 Guildhall Centre OML Kupp August 2016 £31.65

U2 Guildhall Centre OML Comptoir Libanais July 2016 £32.20

U14 Guildhall Centre OML Turtle Bay July 2016 £30.84

We devalue the passing rent upon the prime Urban Outfitters unit to a Zone A of £198.50, assuming A/12 on the ground floor remainder, A/16 on the loading bay and A/20 on the basement, first and second floor stock. We have off set the setback frontage against the benefit of the prominent return.

We devalue the passing rent on the Bill’s restaurant to approximately £23.65 psf which we consider to be reversionary.





INVESTMENT COMPARABLES

We consider the subject property offers an excellent opportunity to purchase a prime multi-let commercial freehold investment offering a WAULT in excess of 10 years in a dominant retailing centre and would highlight the following comparable transactions that have taken place.

Address Tenant(s) Expiry Price NIY Date

235-240 High Street

Various including

Jones, Office and

Saltrock

WAULT of 4.57 years £11.5m 5.25% July 2016

39 & 40 High Street,

13 Martins Lane,

Exeter

Sketchers USA Ltd

WAULT 9.3 years

to expiry

(4.3 years to break)

£3.35m 5.25% July 2016

PROPOSAL

We are invited to seek offers in excess of £5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT, for our client’s freehold interest in the subject property. A purchase at this level will effect a net initial yield of 5.5%, assuming purchaser’s cost of 6.62%.

EPC

EPC for the property are available upon request.

VAT

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





For further information, please contact the sale agents, Jackson Criss:

Jonathan Milburn

020 7637 [email protected]

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. JC0112 September 2017. D

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BY

TC

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http://www.tccommunications.co.uk/


229 HIGH STREET & 32-33 GANDY STREET EXETER EX4 3NE · include Geneva, Madrid, Munich, Nice, Dublin...

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