Prime Freehold Retail Investment
85/91 Montague Street, Worthing, West Sussex BN11 3BN
Key Investment Criteria
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•
•
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Prime pedestrianised pitch in affluent south
east seaside town
Let to Burton / Dorothy Perkins and Bonmarché
WAULT of over 5.5 years to lease expiry (4.4
years to tenant break clause)
Seeking offers in excess of £2,245,000 (Two
Million Two Hundred and Forty Five Thousand
Pounds), subject to contract and exclusive of
VAT, reflecting an attractive net initial yield of
8.00%, allowing for purchasers’ costs of 5.8%.
Location & Catchment
Retailing in Worthing
The affluent coastal town of Worthing is the largest town in West
Sussex. Located 11 miles (18 km) west of Brighton, 20 miles (32
km) east of Chichester and 59 miles (95 km) south of London.
Worthing has excellent road communications with the A24 dual
carriageway providing access to the M25 and the A27 linking
Brighton and Chichester to the East and West respectively.
Worthing’s prime retailing is centred on the
pedestrianised section of Montague Street,
anchored by Marks & Spencer, BHS, H&M and
Boots. The town’s two main multi-storey car parks
are located on either side of the street, close to
the subject property.
The town enjoys a regular commuter rail service to London Bridge
and Victoria with a journey time of approximately 1 hour and 20
minutes. Gatwick Airport is 35 miles to the north and Southampton
International Airport is approximately 55 miles to the west of the town.
The prime retailing on Montague Street is further
complimented by the Montague Centre, an open
scheme anchored by Beale’s, TK Maxx and HMV.
Worthing has a population of 161,000 people within a 15 minute
drive time and in this catchment, according to Experian, 55% of
households earn more than £30,000 per annum, higher than the
national average of 50%. Worthing is projected to benefit from
above average population growth of 19% between 2012 and 2032,
compared to the national average of 13%.
Situation
85/91 Montague Street occupies a prime trading
position within the pedestrianised part of Montague
Street. Retailers in close proximity to the subject
property include River Island, New Look, Next,
JD and Clarks.
Description
The property comprises a three storey concrete frame building with
brick elevations, under a flat asphalt covered roof, on which sits
an extension to the adjoining multi-storey car park. The property
benefits from rear servicing.
Tenure
Freehold.
Service Charge
The structure and common parts of the property (excluding the
car park) are covered by a service charge with Burton / Dorothy
Perkins and Bonmarché. Further details are available upon request.
Tenancy & Accommodation
Tenant
Accommodation
Burton / Dorothy
Perkins Properties
Limited (Guaranteed
by Redcastle
Limited)
Bonmarché Limited
The Borough of
Worthing
Sq ft
Sq m
Lease Start
Lease Expiry
(Tenant only
break option)
Next Rent
Review
Rent
Passing
pa
Zone A
Analysis
Ground Floor
ITZA
First Floor
Second Floor
Total
2,253
798 units
2,556
2,473
7,282
209.30
29.09.2010
28.09.2020
29.09.2015
£95,000
£83
Ground Floor
ITZA
First Floor
Second Floor
Total
2,893
977 units
2,710
2,719
8,322
268.76
25.03.2010
24.03.2020
(02/11/2017)
n/a
£95,000
(topped up)
£86
23.02.1967
22.02.2966
Roof (car park)
237.45
229.74
676.50
251.76
252.60
773.11
Peppercorn
For indicative purpose only.
Covenant
VAT
Burton/Dorothy Perkins Properties Limited, as a small company, are
not obliged to file detailed accounts. They are part of the Arcadia
Group, which is the UK’s largest privately owned clothing retailer.
The group’s brands include Burton; Dorothy Perkins; Evans; Miss
Selfridge; Topman; Topshop and Wallis. Arcadia Group is privately
owned by Taveta Investments Ltd, the investment vehicle owned
by Sir Philip Green and his family. The lease is guaranteed by
Redcastle Limited who reported, for the year ending 31st August
2013, a turnover of £227.6m, a pre-tax profit of £39.1m and a net
worth of £312.5m.
The property has been elected for VAT and it
is anticipated that the sale will be dealt with by
means of a Transfer of Going Concern
Bonmarché Limited listed on the AIM market of the London Stock
Exchange in November 2013 with Sun European Partners retaining
a 52.4% stake in the business. For the year ending 29th March
2014, Bonmarché Limited reported a turnover of £164.3m, a pre-tax
profit of £9.5m and a net worth of £14.7m. For the same period,
LFL sales increased 10.4% in store and 84.2% online. The latest
trading update in the 13 weeks to 28th June showed continued
sales growth with LFL increasing 13.5% in store and 53.5% online.
EPC
85-87 Montague Street — D (98)
89-91 Montague Street — E (107)
Full copies of the EPC’s are available upon
request.
Proposal
Seeking offers in excess of £2,245,000 (Two
Million Two Hundred and Forty Five Thousand
Pounds), subject to contract and exclusive of VAT,
reflecting an attractive net initial yield of 8.00%,
allowing for purchasers’ costs of 5.8%.
Further Information
Fiona Nichols
DD: 020 7647 4809
M: 0781 7676 763
[email protected]
Oli Horton
DD: 020 7647 4806
M: 0778 8695 859
[email protected]
7/10 Chandos Street
London W1G 9DQ
T: 020 7408 0030
F 020 7495 4248
W: www.gcw.co.uk
Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken
for any error, omission or mis-statement in these particulars which do not constitute an offer or
contract. No responsibility or warranty whatever is made or given either during negotiations or
in particulars by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England
No. OC376010. Registered office: 30 City Road, London EC1Y 2AB. November 2014.