Bournemouth, Post Office Road

PIZZA EXPRESS
AND STUDENT ACCOMMODATION
Post Office Road,
Bournemouth
Net initial yield of 6% and an estimated
reversionary yield of 6.5% in 2016
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This Plan is based upon the Ordnance Survey Map with the sanction of the
Controller of H.M. Stationery Office. Crown Copyright reserved. (100000271). This
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The property is an impressive looking building of
traditional stone and brick construction under a
pitched tiled roof. The façade is listed Grade II and the
ground floor has been refurbished to provide a
stunning new restaurant with ancillary accommodation
which is occupied by Pizza Express.
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Offers in excess of £2,005,000, subject to
contract
Description
5
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Bournemouth benefits from excellent road and rail
communications being situated close to the A31 which
links to the M27 and in turn the M3 motorway. There is
a regular rail service to London Waterloo with a
journey time of approximately 1 hour 45 minutes and
Bournemouth International Airport is located 4 miles
(7km) north east of the town centre.
52
29% of income let to Kings Colleges,
Bournemouth on a FRI lease expiring
February 2027 with annual RPI increases
■
44 50
71% of income let to blue chip tenant
Pizza Express Restaurants Ltd on a FRI
lease expiring January 2036 (tenant break
clause in January 2026)
PL
AC
E
■
GR
AN
VIL
LE
Ideal lot size for a private investor/SIPP
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The unit is located in a prominent pedestrianized
position on Post Office Road about 50 metres north of
Old Christchurch Road whilst Albert Road lies to the
rear of the property. Old Christchurch Road is a prime
pedestrianized retail shopping location, which boasts
retailers such as Dingles and Beales Department stores
as well as Top Shop, River Island, Oasis, Lush, La Senza and
WH Smith. The property itself lies adjacent to a listed
Roman Catholic Church and Argos. There are further
retailers along both Post Office Road and Albert Road.
BR
BO IDES
BR URN OF
IDA EM
L W OUT
EA H
R
Restaurant investment let to Pizza
Express with Student Accommodation in
the upper parts
Situation
Bournemouth is an attractive, commercial seaside town
on the south coast of England approximately 100 miles
(165km) south west of London and 30 miles (51km)
west of Southampton. It is a major centre for tourism,
a leading national conference centre and a major focus
for the leisure industry on the south coast. The town
benefits from a very significant primary catchment
population of approximately 390,000 persons (2001
Census) and a growing student population in excess of
18,000 students at the university.
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Location
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Investment Considerations
This Plan is based upon the Ordnance Survey Map with the sanction of the
Controller of H.M. Stationery Office. Crown Copyright reserved. (100000271). This
Plan is published for the convenience of Purchasers only. Its accuracy is not
guaranteed and it is expressly excluded from any contract. NOT TO SCALE.
The upper parts are arranged over first and second floors
which have been extensively refurbished to provide
student accommodation. There are 13 bedrooms over
the two floors with two ancillary kitchens, two living
rooms and a laundry.
Tenure
The property is held freehold.
Post Office Road, Bournemouth
Accommodation
We have measured the property and have calculated it to have the following approximate gross internal floor areas.
Floor
Area sq ft
Area sq m
Ground Floor
3,710
344.67
First Floor
1,829
169.92
Second Floor
1,776
165
Total
7,315
679.59
Tenancy
The restaurant unit is let to Pizza Express Restaurants Ltd on a 25 year FRI lease from 21st January 2011, subject
to 5 yearly upward only rent reviews from at £90,000 per annum. There is a tenant break clause at year 15.
The first and second floors have been let to Kings School of English (Tuition) Ltd) t/a Kings Colleges, Bournemouth
on a 15 year FRI lease from 24th February 2012, subject to annual RPI increases at a current rental of £37,307 per
annum.
Therefore, the total received from both tenants in the building is £127,307 per annum.
Tenants Covenants
Pizza Express (Restaurants) Ltd have reported the following figures
for the last two financial years:
£75,000 per annum which demonstrates the potential upside if the
tenant ever vacated.
With an ERV of £104,000 per annum on the restaurant unit and
annual RPI increases on the upper parts this equates to an overall
ERV on the building in 2016 of £145,000 per annum.
Financial Year Turnover
Ending
Pre-Tax
Profit
Net Current
Assets
01.07.2012
£332.717m
£63.133m
£391.793m
VAT
26.06.2011
£322.490m
£58.641m
£344.083m
The property has been elected for VAT and therefore it is
anticipated that the sale will be treated as a Transfer of a Going
Concern (TOGC).
Kings School of English (Tuition) Ltd have reported the following
figures for the last two financial years :
Financial Year Turnover
Ending
Pre-Tax
Profit
Net Current
Assets
31.12.2010
£4.939m
£614,849
£270,445
31.12.2009
£4.054m
£491,887
£116,134
EPC
The restaurant has an EPC Rating of 103 (Band E) whilst the upper
parts have an EPC Rating of 117 (Band E)
Additional Information
Further Information including layout plans, site plans, leases and
EPC reports are available from the vendor’s agent upon request.
Kings Colleges was established in 1957 and they opened a London
College in 1966 and then Kings Oxford College in 1986. Over the
years, they have been a pioneer in international educational
programmes and in the 1970s were one of the first colleges to
welcome significant numbers of students from Asia and China.
Further information is available at www.kingscolleges.com
Proposal
Estimated Rental Value
Contact
The current rent on the Pizza Express unit is £90,000 per annum
which equates to £24.26 psf overall. We believe that this rent is
reversionary as A3 quoting rents at the Nautilus which will be a
new landmark leisure development in Bournemouth town centre
adjacent to the Pavilion are £35 psf. In addition, Patisserie Valerie
have just taken a new unit at 2-6 Post Office Road at about £30 psf
overall which makes the subject property reversionary. With
respect to the student accommodation the tenant is currently
paying a rent of £37,707 per annum but we understand they then
sub-let the individual rooms to the students as approximately
For further information, please contact :
Our clients are seeking offers in excess of £2,005,000 (Two Million
and Five Thousand Pounds) for the freehold interest in the above
property, subject to contract and exclusive of Vat which reflects a
net initial yield of 6% following deduction of normal purchaser’s
costs of 5.8% and an estimated reversionary yield of 6.5% in 2016.
Mark Bruce-Lockhart
Tel : 020 7268 9952
Mob : 07770 637163
Email : mb-l@philipslockhartstarr.co.uk
Richard Starr
Tel : 020 7268 9955
Mob : 07831 872376
Email : rs@philipslockhartstarr.co.uk
Property Misrepresentation Act Philips Lockhart Starr and for the vendors of this property whose agents they are, give notice that:- 1:The particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute nor constitute
part of an offer or contract; 2: All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements
of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3: Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves
independently as to the incidence of VAT in respect of any transaction; 4: All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication.They have not however been tested and therefore, we give
absolutely no warranty as to their condition or operation; 5: No person in the employment of Philips Lockhart Starr has any authority to make or give any representations whatsoever in relation to this property or these particulars nor enter into any contract on behalf
of the vendors; 6: No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; 7: These particulars were prepared in September 2013