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THE HARPENDEN ESTATE
PROMINENT ISLAND SITE RETAIL
RESIDENTIAL INVESTMENT opportunity
Investment Considerations
• Rare opportunity to acquire the freehold of a prominent mixed use island site
• Extremely affluent commuter town with excellent communications
• Prime trading location in close proximity to Marks & Spencer, Waitrose and Sainsbury’s
• Unbroken estate comprising 27 shops, 3 office suites and 18 apartments
• Vibrant mix of national retailers and local covenants including Hamptons Estate Agents, Halifax,
Waterstones (t/a Harpenden Books) and JoJo Maman Bebe
• WAULT of 3.3 years
• Strong tenant demand resulting in a low vacancy rate of c. 8.50%
• Plethora of asset management opportunities to enhance income and capital value
• Current net income of £982,267 per annum
• ERV of £1,151,100 per annum based on recent letting evidence within the subject property
PROPOSAL
Seeking offers in excess of
£15,330,000 subject to
contract and exclusive of VAT.
A purchase at this level would
reflect a Net Initial Yield of
6.00% after allowing for
purchasers costs of 6.80%.
2
Location
Rare opportunity to acquire
a freehold, prominent mixed
use island site
Harpenden is an attractive and prosperous commuter town in the county
of Hertfordshire, South East England. It is situated approximately 6 miles (10
kilometres) south of Luton, 5 miles (8 kilometres) north of St Albans and 30
miles (48 kilometres) north of central London.
The town is popular with commuters due to its excellent
communications including the Thameslink route into London King’s
Cross/St Pancras, with up to seven trains per hour. The fastest
journey time is approximately 26 minutes.
In addition Harpenden is situated in close proximity to the M1
and M25 motorways providing easy access to surrounding towns.
Three motorways run through the county of Hertfordshire, the M1,
A1(M) and M25 which are in turn fed by a comprehensive
network of A-roads.
In addition London Luton Airport is located approximately 6 miles
(10 kilometres) north of the town.
A505
A418
A602
A5
Harpenden
A10
A41
A414
A413
A41
A4010
A413
A10
A355
A12
A404
A503
A406
A12
A1
A40
A40
A13
A13
A102
A4
A205
A40
A214
A2
3
A1
MILTON KEYNES
Demographic profile
Harpenden has a core catchment population of 123,076, with a total catchment
population of 523,819 (Source: CACI). The population extends to 822,329 living
within a 30 minute drive time and this is set to grow by 9.4% to 899,507 in the
next 10 years. This projected growth is well above the UK average of
6% (Source: ONS).
M1
A421
LEIGHTON BUZZARD
A1 (M)
M11
A10
stevenage
LUTON
STANSTED AIRPORT
LUTON AIRPORT
A5
HARPENDEN
AYLESBURY
A418
Harpenden has a wealthy, affluent and stable population.
42% of the population is qualified as AB (which includes those
in managerial and professional occupations), according to CACI’s
‘population by social grade’. 44% of Harpenden’s catchment
population earns in excess of £60,000 per annum and the town
has a significantly above average proportion of adults of working
age categorized within the ‘Affluent Achievers’ group of the
Acorn Group Profile (Source: CACI).
A6
A4146
A41
hertford
HODDESDON
harlow
hatfield
HEMEL
HEMPSTEAD
ST. ALBANS
A414
POTTERS BAR
A4010
A413
M25
WATFORD
RICKMANSWORTH
M40
M1
BARNET
A10
A406
HIGH
WYCOMBE
HARROW
UXBRIDGE
WEMBLEY
ROMFORD
WALTHAMSTOW
STRATFORD
M25
A12
UPMINSTER
DAGENHAM
Prime trading location in close
proximity to Marks & Spencer,
Waitrose and Sainsbury’s
Situation
The subject property comprises a prime island site in the heart of the affluent
town centre. The block is prominent and forms part of the prime pitch with
frontages on to High Street, Church Green and Leyton Road. Opposite the
estate on Leyton Road and Church Green is a Marks & Spencer and Waitrose
supermarket. Retailers on High Street include a large Sainsbury’s, WH Smith,
Mountain Warehouse, Santander and Boots, as well as a host of independent
restaurants, cafés, and boutiques.
Harpenden Train Station is situated approximately
350 metres east of the town centre.
4
Retailing in Harpenden
Harpenden is a popular retail location in the south east due to the breadth of
its retail offer and the attractive character of the town centre. The prime retail
offer is focussed around High Street and Leyton Road. Major UK multiples in the
prime pitch include Marks and Spencer, Waitrose, Sainsbury’s, WH Smith, Phase
Eight, Costa, M&Co, Viyella and Boots. The town also attracts an abundance of
independent antique shops, jewellers and speciality gift retailers. In addition, the
town has a diverse leisure offer of both national multiples as well as independent
cafes and restaurants providing a variety of choice for both residents and visitors.
Vibrant mix of local covenants
and national retailers including
JoJo Maman Bebe, Halifax and
hamptons estate agents
Description
The property comprises an unbroken shopping parade occupying an island
site. The ground floor accommodation is predominantly retail with a mix of
residential, office and ancillary accommodation above on two upper floors.
Within the estate, The Leys, a partly covered arcade, connects the High Street
and Leyton Road and comprises retail units within an open square as well as
access to upper floors.
The buildings are of traditional construction, benefiting from brick elevations
with full height retail fenestration on ground floor and timber sliding sash or
casement windows to the upper floors with multi-pitched tiled roofs.
5
Tenancy
Covenant Information
Rental Value
The property is secured on a total of 29 retail leases, 18 residential leases and
3 office leases. The total contracted gross income, including the residential
leases is £1,074,841 per annum. After the deductions of service charge and
management fees for the residential accommodation, and service charge and
business rates cover for the vacant commercial units, the current net operating
income is £982,267 per annum.
The property is let to a diverse mix
of national and local retailers broadly
reflecting the following income profile:
We have analysed the property on an
individual unit basis, which is detailed in
the attached tenancy schedule.
3%
Office Income
A full tenancy schedule is attached.
Tenure
The property is held freehold.
14%
Regional
Multiples
income
per sector
16%
Residential Income
81%
Retail Income
28%
Local
Traders
58%
National
Multiples
income
Profile
This equates to the following rental values
for the various aspects of the property:
Retail: £938,850 per annum
Residential: £182,600 per annum
Offices: £29,650 per annum
Therefore, we are of the opinion the ERV for
the entire property is £1,151,100 per annum.
6
AD
N
U
VA
A
GH
RO
7
Asset Management Opportunities
•
The current accommodation can be reconfigured, amalgamating
and extending units to provide larger retailing floorplates
•
Exploit strong A3 demand to create a cluster of restaurant units
•
Convert offices and ancillary accommodation on the upper
floors to create additional residential accommodation subject to
obtaining consent
•
Additionally, further residential accommodation may be
developed within the core of the estate to create an urban piazza
•
Obtain possession of apartments and offices demised to retail
tenants on over-riding leases
•
Residential capital values are in the region of £500 per sq ft
•
Obtain possession of retail units and create new headline Zone A
values and additionally improve the tenant profile
•
Progress current interest from national multiple retailers (further information available on request)
•
Individual properties within the estate can be sold Freehold Smaller lot sizes will attract private investors
8
EPC
A full copy of the EPC’s 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).
Proposal
We are instructed to seek offers for our client’s freehold
interest in excess of £15,330,000 (Fifteen Million Three
Hundred and Thirty Thousand Pounds), subject to contract
and exclusive of VAT.
A purchase at this level would reflect a blended Net Initial
Yield of 6.00%, after allowing for purchasers costs of 6.80%.
Further Information
For further information or to arrange an inspection of the property, please contact:
RICHARD BROWN
0207 318 7818
richard.brown@eu.jll.com
CHRISTOPHER ROBINSON
0207 087 5624
chris.robinson@eu.jll.com
JONATHAN HEPTONSTALL
0207 318 7843
jonathan.heptonstall@eu.jll com
LENNARD MAGIS
0207 852 4101
lennard.magis@eu.jll.com
MISREPRESENTATION ACT
JLL, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the
property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they
wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (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 as at the date of the particulars (or the date of the
relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys
and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by JLL, the vendor(s) of the property or any of their respective subsidiaries,
affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated
by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has authority to make or give
any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle. Designed by Graphic Outlines Ltd. 2016