INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
57 High Street
CHELMSFORD
PRIME RETAIL BANK
INVESTMENT FOR SALE
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
INVESTMENT SUMMARY
Chelmsford is one of the largest and most affluent
retail centres in Essex, with a thriving economy with
over 11,000 businesses and 50,000 jobs.
100% prime freehold retail investment situated
between the City’s two shopping centres.
Newly agreed reversionary lease at a market rent.
Let to the strong national covenant of Nationwide
Building Society with just over 9 years unexpired.
Ideally situated to benefit from the Bond Street
Development, which will be anchored by John Lewis,
which is predicted to increase comparison spend by 27%.
Voted one of the top 10 most 'Credit Crunch
Resistant Towns' (CACI 2010).
51% more 'Wealthy Executives' (CACI's highest
affluence group) in Chelmsford than the national
average.
Our clients are seeking offers in excess of £2,755,000
(Two Million Seven Hundred and Fifty Five
Thousand Pounds), subject to contract and
exclusive of VAT, which reflects a net initial yield of
5.25%, after allowing for purchaser’s costs of 6.44%.
57 HIGH STREET, CHELMSFORD
PRIME RETAIL BANK INVESTMENT FOR SALE
2
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
LOCATION
Chelmsford is located in the heart of Essex, 30 miles
north east of central London, 21 miles south of
Colchester and 16 miles east of Harlow.
The city has excellent communication links with the
A12, providing dual carriage access to the M25, 12 miles
to the south west. Other nearby roads include the A131,
running north to Braintree and south to Basildon, and
the A414 which runs west to Harlow.
Chelmsford Railway Station has a fast and frequent
commuter service to London Liverpool Street Station,
with a fastest journey time of 34 minutes. The station
is the busiest station in the east of England, with over
7,000,000 passengers a year. IPSWICH
Stansted Airport is approximately 13.5 miles to the north
west and is a base for a number of major European low
cost carriers. In 2015 it was the fourth busiest airport in
the UK.
A1(M)
Stansted
Airport
A120
M11
A10
A120
BRAINTREE
A12
HARLOW
A1(M)
COLCHESTER
A133
A12
CHELMSFORD
A414
M25
M25
A131
A12
M11
M1
A127
A12
M25
LONDON
57 HIGH STREET, CHELMSFORD
SOUTHEND-ON-SEA
A13
PRIME RETAIL BANK INVESTMENT FOR SALE
3
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
DEMOGRAPHIC PROFILE
RETAILING IN CHELMSFORD
Chelmsford is the only city in Essex and has a large and
dominant primary catchment area of 404,000, which is
above the sub regional centre average. The catchment
population is one of the most affluent of the PROMIS
catchments, ranking it 29 of the PROMIS centres. 62%
of the population is within the highest social grade of A,
B and C1 grouping. Major employers in the town include
M&G Investments, BAE Systems, The Royal Sun Allliance
and Amlin.
Chelmsford has an estimated 1.16 million sq ft of retail
accommodation, making it comparable with the sub
regional centre average. The prime retailing within
Chelmsford is concentrated on the pedestrianised
High Street, between the city’s two covered shopping
centres, The Meadows and High Chelmer. Retailers on
the High Street include Marks & Spencer, Debenhams,
H&M, GAP and Waterstones.
The Benson Elliott owned Meadows Shopping Centre
is anchored by Wilkinsons, Odeon Cinema and
Sportsworld, and offers more mass market retailing.
The LaSalle owned High Chelmer Shopping Centre is
anchored by Primark, with tenants including Boots,
New Look and Topshop.
The new proposed Bond Street development is an
open air 300,000 sq ft retail and leisure development
57 HIGH STREET, CHELMSFORD
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
anchored by a 120,000 sq ft John Lewis department
store and a 5-screen Cineworld. The developers, Aquila,
started construction on the scheme in March 2015, with
completion due in autumn 2016.
The new development will add significantly to
Chelmsford’s retail and leisure offer, and retailers
who have already committed include Monsoon, Fat
Face, Hotel Chocolat, Schuh and Snow + Rock, with
restaurant retailers including Byron, ASK, Las Iguanas
and Prezzo. The Bond Street development will see
comparison spend in Chelmsford increase by 27% to
£660.9m, placing it alongside Tunbridge Wells, York and
Maidstone (CACI 2014).
The subject property is ideally situated to benefit from
the new development.
PRIME RETAIL BANK INVESTMENT FOR SALE
4
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
B
TO
H
HU
C
ES
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
BOND STREET
DEVELOPMENT
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
Anchored by
N
Other tenants include:
THE WHITE COMPANY
BLU
E SK
Y
LONDON
For illustrative purposes only
57 HIGH STREET, CHELMSFORD
PRIME RETAIL BANK INVESTMENT FOR SALE
5
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
SITUATION
The subject property occupies a prime trading location
on the pedestrianised High Street, adjacent to Moss
and Goldsmiths and opposite the main entrance to
the Meadows Shopping Centre. The goad plan extract
highlights the unit in red.
DESCRIPTION
The property comprises a well configured ground floor
retail unit with ancillary, office and storage space on the
first and second floors. The property is serviced to the rear.
ACCOMMODATION
Jackson Criss have inspected the property and can confirm
the following approximate dimensions and areas:Gross Frontage
Net Frontage
Shop Width
Shop Depth
24 ft 4 in
7.4 m
22 ft 7 in
6.9 m
98 ft
29.9 m
23 ft
7.0 m
Ground Floor Sales
1,951 sq ft
Ground Floor ITZA
847 units
First Floor Offices / Staff
1,214 sq ft
112.8 sq m
260 sq ft
24.2 sq m
3,425 sq ft
318.2 sq m
Second Floor Stock
Offices / Ancillary
Total Area
57 HIGH STREET, CHELMSFORD
181.2 sq m
PRIME RETAIL BANK INVESTMENT FOR SALE
6
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
RENTAL VALUE
The rent passing of £154,000 pax agreed with
Nationwide at the June 2015 rent review reflects a
Zone A rent of £170 per sq ft, applying £7.50 per sq
ft to the first floor and £3.50 per sq ft to the second
floor. The most salient rental evidence can be set
out as follows:- 1. 38 High Street (Metrobank)
Open market letting April 2016. The company
have taken a 25 year lease at a rent of £325,000
pax, reflecting a headline Zone A of £200 per sq
ft and net Zone A of £198 per sq ft.
2. 36-37 High Street (McDonalds)
Lease renewal April 2016, on a 10 year lease, at a
rent of £310,000 pa, reflecting a headline Zone
A rate of £182.40 per sq ft and a net Zone A of
£173.00 per sq ft.
3. 69 High Street (iCandy)
Open market letting September 2015, on a new
10 year lease, at a headline Zone A of £196.70 per
sq ft and a net Zone A of £178.88 per sq ft.
4. 26 High Street (RBS)
Lease renewal effective August 2015, agreed at a
rent of £210,000 pax, reflecting a net Zone A of
£189.52 per sq ft. TENURE
TENANCY
The property is held freehold.
The property is let to Nationwide Building Society on a Full Repairing and Insuring lease, for a term of 10 years from
24th June 2015, at a rent of £154,000 per annum exclusive.
There is therefore just over 9 years unexpired on the lease.
57 HIGH STREET, CHELMSFORD
5. 40/41 High Street (Barclays)
Rent review March 2015, £378,000 pa, reflecting
a net Zone A of £178.00 per sq ft.
It is therefore our opinion that the rent passing
reflects the current market rental value as of today’s
date, devaluing to a Zone A rent of £170 per sq ft and
offers excellent prospects for rental growth, given
the most recent evidence and the past £200 ZA
rental tone.
PRIME RETAIL BANK INVESTMENT FOR SALE
7
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
COVENANT
Nationwide Building Society is a British mutual financial
institution and the largest building society in the world.
They currently have around 700 branches within the UK.
A summary of the financial results can be set out as
follows: Turnover
04/04/2015 04/04/2014 04/04/2013
£m
£m
£m
447
493
571
Pre-tax profit
1,044
677
210
Net Worth
8,701
7,950
5,686
TOWN PLANNING
We have made verbal enquiries to the local planning
authority who have confirmed that the property is Grade II
listed and is situated within the conservation area.
VAT
The property has been elected for VAT purposes, and it is
anticipated that the investment sale will be treated as a
Transfer Of a Going Concern (TOGC).
EPC
The property has an EPC rating of D88. An EPC report for the
property can be provided upon request.
57 HIGH STREET, CHELMSFORD
PRIME RETAIL BANK INVESTMENT FOR SALE
8
INVESTMENT SUMMARY
LOCATION
DEMOGRAPHICS
RETAILING IN CHELMSFORD
GOAD
SITUATION
DESCRIPTION
ACCOMMODATION
TENURE
TENANCY
RENTAL VALUE
COVENANT
TOWN PLANNING
VAT
EPC
PROPOSAL
FURTHER INFORMATION
PROPOSAL
We are instructed to seek offers in excess of £2,755,000 (Two
Million Seven Hundred and Fifty Five Thousand Pounds),
subject to contract and exclusive of VAT which reflects a net initial
yield of 5.25%, after allowing for purchaser’s costs of 6.44%.
The most salient investment evidence can be set out as follows:68/71 High Street, Chelmsford
100% prime retail block of 4 units let to Carphone Warehouse,
Claire’s Accessories, iCandy and Clintons, within a WAULT of 7.56
years (to break 5.16 years). The property was sold in January 2016 at a price of £8.5m, which
reflected a net initial yield of circa 4.95%.
FURTHER INFORMATION
For further information, please contact:
Philip Hay
020 7637 7100
[email protected]
Brook Wannop
020 7637 7100
DESIGNED BY TCC
[email protected]
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents
they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of
intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (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 but any intending purchasers
or tenants should not rely on them as statements or representations of fact but satisfy themselves
by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of
Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in
relation to this property. JC0087. April 2016.
57 HIGH STREET, CHELMSFORD
PRIME RETAIL BANK INVESTMENT FOR SALE
9