63/67 Parade

Sutton Coldfield, West Midlands

Overview

  • 100% prime retail pitch on Parade
  • Directly opposite main entrance to Gracechurch Shopping Centre
  • Let to two multinational, 5A1 occupiers: Superdrug Stores Plc and HSBC Bank Plc
  • Superdrug and HSBC have been in occupation for at least 27 and 16 years respectively
  • Freehold
  • Total passing rent of £198,500 pa
  • WAULT to expiry of 4.34 years (2.68 to break)
  • Potential redevelopment plan on upper floor (STP)
Offers sought in excess of £2,400,000 reflecting a net yield of 7.78%.
Subject to contract and exclusive of VAT.
Yields are net of purchaser's costs of 6.36%.

Location

Sutton Coldfield is located approximately 8 miles (13km) north of Birmingham city centre, 11.5 miles (18.5km) east of Walsall and 8.5 miles (13.5km) south-west of Tamworth.

The town benefits from excellent road links via the M6 which provides access to Manchester (95 miles) and the North West. The town also has easy access to the M42, to the east of the town, which in turn leads to the M5 and the south and west of England.

By rail there are direct and frequent commuter services from the town to Birmingham New Street (19 mins), which in turn provides direct connections to London (81 mins). Sutton Coldfield railway station is located within a 5 minute walk of the property.

Birmingham International Airport is located 14 miles (22.5km) south-east of the town, providing regular domestic and international flights.

Catchment and Local Economy

Sutton Coldfield is the most affluent borough within the West Midlands, the second most populous area of the UK after Greater London. The town has a substantial primary catchment population, with a Primary Retail Market Area estimated at 119,000 people and is expected to see above average growth in population over the period 2018-2023.

Reflecting the affluent demographic profile, the town contains a significantly above average proportion of adults of working age categorised within the most affluent AB social group (PROMIS).

In contrast, the least affluent D and E social groups are particularly under represented.

The area is regarded as one of the most desirable and prestigious residential locations within central England and contains eight out of the ten most expensive residential streets in the West Midlands.

The level of owner occupation in Sutton Coldfield is significantly above average ranking the town 11th of the 200 PROMIS Centres on this measure.

As the most affluent district in Birmingham, Sutton Coldfield benefits from high levels of household income and low levels of unemployment. The Service sector accounts for approximately 75% of total employment with manufacturing accounting for 11%. Reflecting the wealth in the local catchment, per capita spending levels are significantly above the PROMIS average for both comparison and retail warehouse goods.

The Langley Sutton Coldfield Consortium recently outlined plans for a 5,500 home housing development on Sutton Coldfield's green belt, which will also include a new secondary school, three primary schools, a medical centre, a district centre with shops, café, gym, pub, retirement village and sports facilities, as well as linking the site to existing greenways in Sutton Coldfield.

Situation

The subject premises sit in a 100% prime position on the east side of Sutton Coldfield's main pedestrianised retail thoroughfare, Parade. The property is directly opposite the main entrance to Centre Mall, a significant footfall driver to the immediate locality.

Lower Parade is the focal point for the entire town's bus stops which is approximately 25 metres from the subject property.

Other retailers in the vicinity include Waterstones, Boots and Beaverbrooks.

To the northern end of Parade, a short distance from the property, Key Land Development and Urban Village are developing a £15m luxury residential complex. The development will boast 63 apartments in total and a new restaurant on the ground floor.

Retailing in Sutton Coldfield

Sutton's strength and resilience stems from the backcloth of an extensive and largely prosperous catchment area, in conjunction with a compact and easy to use core shopping area; convenient and reasonably priced car parking, along with excellent public transport accessibility.

The town's retail centre is focussed around Parade, Newhall Retail Park and Gracechurch Shopping Centre, which comprises circa 550,000 sq ft and attracts weekly footfall in excess of 130,000. Anchor tenants within the town include Boots, H&M and TK Maxx.

The Parade, which is pedestrianised, provides a vibrant high street offer and accommodates a broad range of national retailers including Aldi, The Entertainer, Waterstones and Card Factory.

Demonstrating its commitment to Sutton Coldfield, M&G Real Estate recently announced it had enlisted the architecture firm Chapman Taylor a regeneration specialist and renowned for its work on at St Pancras International, Heathrow's Terminal 2 and 5's retail section, Brent Cross shopping centre in London and MediaCityUK in Manchester to draft conceptual plans for the future of Sutton Coldfield's town centre.

Description

The property comprises two well configured retail units arranged over ground, basement and first floors. 67 Parade utilises ground and basement only.

Tenure

63-67 Parade is held freehold as outlined in red on the Title Plan.

Tenancy

Further information can be found within the schedule below.


Covenant Information

A summary of the last three years of reported accounts for both tenants is set out in the link below.

Superdrug Stores plc
Superdrug is the United Kingdom's second largest beauty and health retailer, currently operating stores in England, Scotland, Wales and Ireland.

Superdrug is owned by AS Watson, the retail division of the Hong Kong based conglomerate CK Hutchinson Holdings Limited.

HSBC Bank plc
HSBC is one of the world's largest banking organisations serving more than 37 million customers from 70 countries. The company has approximately 4,000 offices worldwide and is listed on the London, New York, Paris and Bermuda stock exchanges.


VAT

The property has been elected for VAT. We anticipate that the transaction will be treated as a Transfer of a Going Concern (TOGC).

EPC RATING

Superdrug - E
HSBC - E
Available on request.

Proposal

Offers sought in excess of £2,400,000, reflecting a net initial yield of 7.78%.

Subject to contract and exclusive of VAT. Yields are net of purchaser's costs at 6.36%.

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NET INITIAL YIELD:
7.78%
PRICE:
£2,400,000
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