worthing - Harmer Ray Hoffbrand LLP

PRIME RETAIL INVESTMENT FOR SALE
41/43 SOUTH STREET, BN11 3AW
WORTHING
WORTHING
41/43 SOUTH STREET, BN11 3AW
INVESTMENT SUMMARY
• Excellent bank investment for sale.
• Prominent corner location on
South Street.
• In close proximity to Debenhams,
Beales, TK Maxx and Wilkinson.
• Re-based rent from 2011 providing
excellent prospects for rental growth.
WORTHING
Worthing is located on the south coast of England and is the largest town in West Sussex. It is located
approximately 10 miles west of Brighton, 20 miles east of Chichester and 60 miles south of London.
It benefits from excellent transport links. London Victoria can be reached in 1 hour 20 minutes by rail
whilst the A24 and A27 provide good road links to London and along the south coast to Brighton and
Bognor Regis.
The town has a population of approximately 104,500 (2011 census) which is boosted each year by an
additional 3.2m tourists who spend approximately £160m in the Worthing and Adur District. (2010
figures).
The population is more affluent than the GB average as can be seen by the demographic figures below:Class Groupings 2001 – Worthing
Urban Area
GB
• Future asset management
opportunity to take back upper parts
for residential conversion (STPP).
AB. Higher and intermediate
managerial/administrative/professional
21.8%
21.7%
• Offers in excess of £1,760,000.
C1. Supervisory clerical junior
managerial/administrative/professional
37.0%
29.4%
• A purchase at this level will show a
net initial yield of 7.25%.
RETAILING IN WORTHING
Worthing is the major retailing centre in West Sussex and draws from a comparison goods shopping
population of approximately 150,000.
The core retailing area of Worthing is provided principally along Montague Street and South Street.
South Street is the home of the department stores, Beales and Debenhams, and to the main bus termini
for the town, whilst Montague Street houses Marks and Spencer, British Home Stores and Boots.
Other major retailers with representation in town include Monsoon, Next, River Island, Superdrug
and H&M.
SITUATION
The property is situated on an extremely prominent corner location at the junction of South Street
and Liverpool Road, adjoining the Beales Department Store and the Liverpool Road entrance to the
Montague Shopping Centre.
Other occupiers in close proximity include Jones The Bootmaker, Edinburgh Woollen Mill,
Toni & Guy and Blue Inc.
WORTHING
41/43 SOUTH STREET, BN11 3AW
DESCRIPTION
LEASE TERMS
The property is Grade II Listed and built of a traditional masonry construction under a pitch slate roof. It
comprises a banking hall and ancillary offices on the ground floor with further ancillary office space and
staff areas on the three upper floors and in the basement. There is a lift that serves ground and first floors.
The property is let to Lloyds TSB Bank Plc on a lease for
ten years from the 15th July 2011 at a passing rent of
£135,000 per annum.
The following areas are those agreed between the parties for the purpose of the last two rent reviews
and the lease renewal:-
The rent passing reflects approximately £56 Zone A.
COVENANT INFORMATION
41/43 South Street
Ground floor
3,635 sq feet
337.7 sq m
2,406 units
-
First floor offices/ancillary
2,578 sq feet
239.5 sq m
Second floor offices/ancillary
1,848 sq feet
171.7 sq m
Third floor ancillary
968 sq feet
89.9 sq m
Basement ancillary
1,094 sq feet
101.6 sq m
ITZA
Lloyds is 46% owned by the UK taxpayer and is one of the
major UK High Street clearing banks.
Lloyds is part of the Lloyds Banking Group plc whose brands
include Lloyds Bank, Halifax, Bank of Scotland, Birmingham
Midshires and Scottish Widows.
More financial information may be found on the company
web site http://www.lloydstsb.com
INVESTMENT RATIONALE
The acquisition of this property will offer
an investor the following benefits:• Extremely prominent corner property
with large frontage offering the
potential to subdivide if need be.
• Valuable A2 consent.
• Let to the excellent covenant of
Lloyds Bank Plc 46% owned by the
UK Government.
• Longer term opportunity to consider
alternative uses on the upper floors
at lease expiry.
PRIME RETAIL INVESTMENT FOR SALE
41/43 SOUTH STREET, BN11 3AW
WORTHING
FURTHER INFORMATION
For further information including
title information, the lease, other
legal information, EPC or to carry out
an internal inspection please do not
hesitate to contact HRH or refer to
the website:
www.hrh.uk.com/investment-disposals
Andrew Hoffbrand
Tel: 020 7908 7033
Mob: 07889 035300
andrew@hrh.uk.com
Richard Ward
Tel: 020 7908 7034
Mob: 07919 118529
richard@hrh.uk.com
HRH
3rd Floor, Portland House
4 Great Portland Street
London W1W 8QJ
BEALES
VAT
PROPOSAL
The property is not elected for VAT.
Offers in excess of £1,760,000
(one million seven hundred and sixty
thousand pounds) are sought for
the freehold interest.
TENURE Freehold.
A purchase at this level will reflect
a yield of 7.25% after normal
purchaser’s costs.
EPC
Energy Performance Certificate
Non-Domestic Building
Certificate Reference Number:
41-43 South Street
WORTHING
BN11 3AW
0980-1974-0337-5000-8060
This certificate shows the energy rating of this building. It indicates the energy efficiency of
the building fabric and the heating, ventilation, cooling and lighting systems. The rating is
compared to two benchmarks for this type of building: one appropriate for new buildings and
one appropriate for existing buildings. There is more advice on how to interpret this information
on the Government's website www.communities.gov.uk/epbd.
T: 020 7499 5399 | F: 020 7580 6291
www.hrh.uk.com
Energy Performance Asset Rating
Technical Information
Benchmarks
Main heating fuel:
Natural Gas
Building environment: Heating and Natural Ventilation
1417
Total useful floor area (m2):
Building complexity (NOS level):
3
Building emission rate (kgCO2/m ): 54.32
2
Buildings similar to this
one could have ratings as
follows:
If newly built
If typical of the
existing stock
Green Deal Information
The Green Deal will be available from later this year. To find out more about how the Green Deal can make your
property cheaper to run, please call 0300 123 1234.
DISCLAIMER NOTICE
Whilst every care is taken in the preparation of these
particulars Harmer Ray Hoffbrand LLP, any joint agents
involved and the vendor take no responsibility for
any error, mis-statement or omission in these details.
Measurements are approximate and for guidance only.
These particulars do not constitute an offer or contract
and members of the Agent’s firm have no authority to
make any representation or warranty in relation to the
property. Particulars dated February 2014.