27 HIGH TOWN, HEREFORD HR1 2AB

Size: px

Start display at page:

Download "27 HIGH TOWN, HEREFORD HR1 2AB"

Marianna Walters
5 years ago
Views:

1 27 HIGH TOWN, HEREFORD HR1 2AB

27 HIGH TOWN, HEREFORD, HR1 2AB Prime High Town Location Let to A G Retail Cards Ltd Lease expiry March 2018 Rebased Rent Rent 90,000 per annum with fixed increase in 2016 Guide Price 1,120,000 Net

2 27 HIGH TOWN, HEREFORD, HR1 2AB Prime High Town Location Let to A G Retail Cards Ltd Lease expiry March 2018 Rebased Rent Rent 90,000 per annum with fixed increase in 2016 Guide Price 1,120,000 Net Yield 7.6% increasing to 8.0% in 2016 HEREFORD The historic cathedral city of Hereford is the county town of Herefordshire and is situated in the rich agricultural area close to the Welsh border. The city is an important administrative centre but has a local economy that embraces industry, agriculture and tourism. The resident population is approximately 56,400 persons with around 76,500 living within 6 miles and 125,000 living within 12 miles. These numbers are considerably increased especially in the summer months by visitors and holidaymakers. Herefordshire attracts about 5 million visitors annually. The city is approximately 137 miles north-west of London and 48 miles south-west of Birmingham. Communications are good with access to the national motorway network available from Junction 4 of the M50 fifteen miles to the south. The A49 links with Shrewsbury and the A50 to the north and Ross-on Wye to the south. Rail services are available to London Paddington with a fastest journey time of around 2hrs 40 minutes. OLD MARKET SHOPPING CENTRE The new shopping centre at the junction of Widemarsh Street and Newmarket Street is now open and trading. It has introduced a Debenhams department store, large stores for TK Maxx, H&M, Next, The Outfit and others, Multiplex cinema, catering and car parking. Now the uncertainty is removed, the effect of the new scheme is considered by many to be beneficial as it appears to be drawing more shoppers into Hereford who might otherwise have gone elsewhere Widemarsh Street links the new scheme with the traditional best shopping area of High Town where the concentration of major retailers including Primark, M&S, Boots, New Look and Smiths ensures continuing prime status. Significantly, all the banks remain in the High Town area. LOCATION very busy stretch between WH Smith and Marks & Spencer. The main entrance to the covered market is opposite and other retailers close by include H Samuel, East, O2 and Lloyds Bank. This is now the only Clintons branch in Hereford. The other, more secondary branches, were closed in The location is indicated on the attached Goad plan extract.

27 HIGH TOWN, HEREFORD,HR1 2AB DESCRIPTION The accommodation is arranged over basement, ground and three upper floors within a grade II listed building having brick elevations under pitched roofs.

3 27 HIGH TOWN, HEREFORD,HR1 2AB DESCRIPTION The accommodation is arranged over basement, ground and three upper floors within a grade II listed building having brick elevations under pitched roofs. It was substantially refurbished and extended in 1998 and refitted by the current tenants in The ground floor is used for sales. The first floor has been used for sales in the past but the current tenant uses it and the other upper floors for ancillary purposes. There is a basement which is not used and has not been valued. DIMENSIONS The property has the following approximate dimensions and GIA floor areas: Gross Frontage 24'10" 7.57 m Net Frontage 23'02" 7.06 m Shop Depth 75'00" m Ground Floor Sales 1,502 sq.ft m² ITZA 700 units First Floor Sales / Ancillary 1,270 sq.ft m² Second Floor Ancillary 509 sq.ft m² Third Floor Ancillary 217 sq.ft m² TENURE The property is freehold. It is let to A G Retail Cards Ltd on a full repairing and insuring basis for a term of 5 years from 25 th March 2013 and expiring on 24 th March There are no breaks. The lease features a rising rent Until 31 st July ,000 per annum 1 st August 2014 until 31 st July ,000 per annum 1 st August 2016 until 24 th March ,000 per annum EPC The property has an EPC rating of D 98. A copy of the EPC and report can be supplied on request. TENANT COVENANT A G Retail Cards Ltd (Company Number ) is a subsidiary of American Greetings Corporation of the US. They took over the old Clintons Card business from the administrators in Around 350 of the old Clintons and Birthdays branches were closed and nearly 400 branches were taken over by A G Retail Cards Ltd. They have developed the stores and refitted the branches in their new corporate style. They are one of the country s leading retailers for gifts, greeting cards and stationery. For the year ended 1st February 2014, A G Retail Cards Ltd had a turnover of million and net worth of 17.3 million. Experian rate the company Below Average Risk COMMENT ON RENT In common with nearly every town in the country, recession and internet shopping have taken their toll and best zone A rents have fallen from historic highs in the order of per sq ft to current levels of under 100 per sq ft. In the case of Hereford, the situation was exasperated by uncertainty surrounding the new shopping centre. This shop was originally let to Clinton Cards at a rent of 116,000 per annum representing a Zone A rate of 135 per sq ft. The branch was retained by A G Retail Cards when they took over the group from the administrators and has since been refitted in their new corporate style. They renegotiated the lease terms in the depressed market of 2012/2013 when the rent was substantially reduced to 85,000 per annum. This reflects a zone A rate in the order of 92 per sq ft taking the first floor sales/ancillary at 7.50 per sq ft, second floor at 3 per sq ft and third floor at 1.50 per sq ft. Now all uncertainty around the Old Market shopping centre is removed and new shopping patterns are established with Widemarsh Street as the new axis linking the prime retailing, we would expect recovery in rents and good potential for future growth.

27 HIGH TOWN, HEREFORD,HR1 2AB PROPOSAL For the freehold interest subject to the benefit of the letting, we seek offers in the region 1,120,000 subject to contract to show a net initial yield of 7.

4 27 HIGH TOWN, HEREFORD,HR1 2AB PROPOSAL For the freehold interest subject to the benefit of the letting, we seek offers in the region 1,120,000 subject to contract to show a net initial yield of 7.6% increasing in July 2016 to 8.0% with purchase costs taken at 5.8%. This represents an opportunity to purchase a prime shop in a strong retail centre which is traditionally popular with investors. The rebased rent and increased offer represented by the new shopping centre provide very good growth prospects. FURTHER INFORMATION For further information please contact:- Stephen Powell stephenpowell@smithprice.co.uk or John Loveday johnloveday@smithprice.co.uk SUBJECT TO CONTRACT MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract. Smith Price LLP is a limited liability partnership registered in England and Wales. Registered number: OC Registered office: 5/7 John Princes Street, London W1G 0JN

Prime Secure Freehold Retail Investment Pret A Manger, 21/23 Northgate Street, Chester CH1 2HA

Prime Secure Freehold Retail Investment Pret A Manger, 21/23 Northgate Street, Chester CH1 2HA Key Investment Criteria Chester is an affluent and historic Cathedral city which attracts over 8 million tourists