stop Prime Mixed Use Town Centre Investment - Northamton - Singer Vielle Sales

Prime Mixed Use Town Centre Investment

49-53 Abington Street | Northampton | NN1 2AW

£2,250,000

subject to contract

EXCHANGED

Summary

  • A prime multi-let retail, office & residential investment

  • Prime location in the heart of Northampton town centre

  • Fully income producing

  • Secure income let to national retailers and the Local Authority

  • Active management opportunities

  • £2,250,000, subject to contract

  • 9.0% Net Initial Yield

  • 9.8% Reversionary Yield

Location

Northampton is located approximately 106 km (66 miles) north west of Central London, 88 km (55 miles) south east of Birmingham, 59 km (37 miles) south of Leicester and 88 km (55 miles) west of Cambridge.

The town benefits from good road communications with Junction 15 of the M1 Motorway approximately 6.4 km (4 miles) to the south, accessed via the A45, Junction 15a some 6.4 km (4 miles) to the south-west and Junction 16 approximately 8 km (5 miles) to the west, accessed via the A4500. The M1/M6 Motorway Interchange is approximately 29 km (18 miles) to the north-west.

In addition, the town is connected to the national railway network with a fastest journey time to London Euston of 49 minutes. Direct rail connections are also provided to other regional centres including Birmingham, Nottingham and Milton Keynes. London Luton Airport is approximately 61 km (38 miles) to the south-east and Birmingham International Airport is approximately 72 km (45 miles) to the north-west.

Northampton is located at the heart of the UK, with unrivalled national and international transport links. The town has been identified by Government as a key area for economic growth and was singled out in a recent Experian report as the best place in the UK to do business, the only place in the country to score 19 out of a possible 20 points across four critera: Number of start-ups, rate of insolvencies, level of financial health and business turnover. Northampton has also recently been rated in the UK’s top ten places to work based on factors including average house price, wage and available jobs. (Source: www.northamptonez.co.uk).

Situation

Abington Street is Northampton’s principal retail thoroughfare. The subject property occupies a prime retailing pitch on the northern side of Abington Street, at its junction with Wellington Street. The Grosvenor Centre is immediately to the west. Therefore, the property benefits from a strong pedestrian flow. Nearby occupiers include Marks & Spencer, H&M, Tesco, The Edinburgh Woollen Mill, Bonmarche, Specsavers and Sports Direct.

The Grosvenor Centre totals approximately 29,729 sq m (320,000 sq ft) and is the town’s main shopping centre, benefiting from over 60 shops and eateries plus over 800 car parking spaces. The Centre underwent a significant refurbishment programme throughout 2015 to provide a more modern and stylish shopping environment. The scheme is anchored by Primark, Next and Boots with other notable brands including Topshop, Superdry, Apple iStore, Lush, Pandora amongst others. The centre’s principal entrance on Abington Street is in close proximity to the subject property.

Description

The property comprises a three-storey mixed use building providing three retail units on ground floor, together with offices on part first floor which are accessed via Abington Street. The remainder of the first floor and the whole of the second floor provide six residential apartments.

The retail units have been fitted out to a high standard by each tenant is their usual corporate style.

Service access and car parking for 9 vehicles is provided to the rear via Albert Place.

Accommodation

The commercial accommodation has been measured by Commercial Measured Surveys Limited and provides the following areas;

49 Abington Street (Marie Curie)

Gross Frontage 5.75 metres 18 ft 10 inches
Net Frontage 5.42 metres 17 ft 9 inches
  NIA NIA
Zone A 32.8 sq m 353 sq ft
Zone B 31.0 sq m 334 sq ft
Zone C 32.0 sq m 344 sq ft
Zone D 4.70 sq m 51 sq ft
ITZA   612
Total Ground Floor Sales 100.5 sq m 1,082 sq ft

 

51 Abington Street (Greggs)

Gross Frontage 5.94 metres 19 ft 6 inches
Net Frontage 5.41 metres 17 ft 9 inches
  NIA NIA
Zone A 31.8 sq m 342 sq ft
Zone B 29.0 sq m 312 sq ft
Zone C 25.8 sq m 278 sq ft
Zone D 4.0 sq m 43 sq ft
ITZA   573
Total Ground Floor Sales 90.6 sq m 975 sq ft

 

51a-53 Abington Street (Blue Inc)  

Gross Frontage 9.73 metres 31 ft 11 inches
Net Frontage 9.31 metres 30 ft 7 inches
  NIA NIA
Zone A 57.1 sq m 615 sq ft
Zone B 64.1 sq m 690 sq ft
Zone C 60.9 sq m 656 sq ft
Zone D 49.4 sq m 532 sq ft
Remainder 0.2 sq m 2 sq ft
ITZA   1,191
Total Ground Floor Sales 231.7 sq m 2,495 sq ft
     
Ground Floor Ancillary 15.3 sq m 165 sq ft
Ground Floor Office 7.9 sq m 85 sq ft
Basement Storage 41.9 sq m 451 sq ft
First Floor Storage 4.0 sq m 3 sq ft
Overall Total 300.8 sq m 3,239 sq ft

 

49-53 Abington Street (Blue Arrow)

    NIA NIA
First Floor Offices 221.7 sq m 2,386 sq ft
First Floor Ancillary 3.4 sq m 37 sq ft
Total   225.1 sq m 2,423 sq ft

 

49-53 Abington Street (Northampton Council)

    GIA GIA
First Floor Flat 1, 1-bed 44 sq m 474 sq ft
  Flat 2, 2-bed 60.5 sq m 651 sq ft
  Flat 3, 3-bed 45 sq m 484 sq ft
  Flat 4, 1-bed 45 sq m 484 sq ft
  Flat 5, 1-bed 33 sq m 355 sq ft
  Flat 6, 1-bed 35 sq m 377 sq ft


A set of floor plans is available to download and the measured survey report can be re-addressed to a purchaser.  Note: the residential accommodation has not been measured and therefore these areas are approximate.

Rateable Value

Accommodation Description Rateable Value
Marie Cure, Ground Floor, 49 Abington Street Shop & Premises £30,750
Greggs PLC, Ground Floor, 51 Abington Street Shop & Premises £29,000
Blue Inc, Ground Floor, 51a-53 Abington Street Shop & Premises £63,500
First Floor, 51a-53
Abington Street
Offices & Premises £12,250


The Uniform Business Rate is 49.7 pence per pound for rateable values of £18,000 and above, and 48.4 pence per pound for rateable values below £18,000.

Tenure

Freehold.

Tenancies

The property is currently fully let to six tenants in accordance with the attached tenancy schedule. There are three retail tenants and one office tenant. The residential accommodation on part first and second floor is let on an over-riding lease to Northampton Borough Council who in turn sub-lets to six individual council-approved social housing tenants.

The total current income is £214,439.93 per annum.

Rental Value & Asset Management Opportunities

We devalue the current shop rents as follows:- 

49 Abington Street (Marie Cure Cancer Care) - £40,000 per annum - £65.32 psf Zone A 

51 Abington Street (Greggs) - £37,500 per annum - £69.82 psf Zone A 

51a-53 Abington Street (Blue Inc) - £80,000 per annum - £69.45 psf Zone A 

The current office rent (Blue Arrow) reflects £77.74 per sq m / £7.22 per sq ft

Following lease renewals to Blue Inc. and Greggs in May 2016 and February 2017 respectively, the leases are considered to be rack-rented.

Over the last few years a significant number of office premises have been converted to residential within the town centre which has created a shortfall of good quality available office space. Due to this shortfall there is a strong demand for good quality office space.  A conservative rental value of £8.50 per sq ft has been applied for the existing first floor offices.  

The development of the remainder of the upper floor offices to residential would also provide an obvious option, subject to obtaining the necessary planning consents. 

Two-bedroomed apartments in Northampton rent on the open market rent for approximately £650-£750 per month, whilst one-bedroomed apartments rent for approximately £550-£625 per month dependent upon condition. One-bedroomed student apartments rent for approximately £125 per person per week.  For the subject property, a rental value of £600 per month has been applied for the 1-bedroom apartments and £700 per month for the 2-bedroom apartments. 

In accordance with the attached schedule, we estimate the open market rental value for the property to be £233,595 per annum.

Service Charge

The service charge budget for the year ending 24th March 2017 is £12,500.00. The Service Charge Accounts and the Service Charge Budgets are available to download

Covenants

The property provides secure income being let to national occupiers including Greggs PLC (Shareholders’ Funds £266m), Marie Curie Cancer Care (Net Assets £101m), Blue Arrow Limited (Shareholders’ Funds £56m) and Northampton Borough Council. Please refer to the Covenant Table which is available to download.

The company accounts for each tenant are also available to download:

Marie Cure Cancer Care
Greggs PLC
Blue Inc (UK) Limited
Blue Arrow Limited

Value Added Tax

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers of £2,250,000 (Two Million, Two Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0% and a reversionary yield of 9.8%, assuming standard purchaser’s costs of 6.33%.

Investment Considerations

  1. An opportunity to acquire a prime, multi-let retail, office and residential investment in Northampton town centre;

  2. The property occupies a prominent position in the heart of Northampton’s retail core;

  3. Fully-let and income producing;

  4. Let to secure tenants including Greggs, Marie Cure Cancer Care, Blue Arrow and Northampton Borough Council;

  5. Opportunities for rental growth and asset management;

  6. A purchase at the asking price will provide an investor with an attractive yield profile;

Contact us

Singer Vielle  +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendor's Solicitor

Fladgate LLP  +44 20 3036 7238
Julian Scharfer JScharfer@fladgate.com

Joint Agent

 

Hannah Bunting  hb@chowncommercial.co.uk

+44 (0) 1604 604 050

customer service