High Quality Retail Investment Opportunity

33 Tavern Street | Ipswich | IP1 3AG


subject to contract



  • High quality retail investment opportunity

  • Prime town centre retail location

  • Secure Income - Let to Lush Retail Limited

  • Rent re-based in July 2016

  • Tenant’s 2017 break option removed, demonstrating their commitment to the property

  • Freehold

  • Offers in the region of £985,000, subject to contract

  • 7.0% net initial yield

33 Tavern Street | |  |  | Ipswich | | IP1 3AG


Ipswich is located approximately 123 km (77 miles) north-east of London, 88 km (55 miles) east of Cambridge, 72 km (45 miles) south of Norwich and 21 km (13 miles) north-west of Felixstowe. The town benefits from good road communications and is located on the A12 which links directly with Junction 28 of the M25 Motorway some 83 km (52 miles) to the south west. The A14 is approximately 3.2 km (2 miles) to the south and serves Felixstowe to the south-east and Cambridge and the M11 Motorway to the west.

In addition, the town is connected to the national railway network with a fastest journey time to London Liverpool Street of 1 hour 7 minutes. Stansted airport is situated approximately 78 km (49 miles) to the south west.

The Ports of Ipswich, together with Felixstowe (the largest container port in the UK and one of the largest in Europe), Mistley and Harwich make it the UK’s most important gateway to the North Sea and trade routes to the near continent and beyond. Together, these ports form the largest near-sea and deep-sea container port complex in the country with significant roll-on, roll-off and passenger ferry functions.

The population of Ipswich is 133,400. Ipswich has grown by 16,326 residents (13.9%) between 2001 and 2011, which ranks it the 10th (out of 64) fastest growing Primary Urban Area in England. Ipswich has a strong employment base for business with a proportionally higher average working age population 87,600 (65.7%) which is higher than the average for the rest of Suffolk (61.0%) and the England average (64.8%). (Source: Ipswich Borough Council).


Ipswich’s retail offer is focussed around a central core, bounded by the pedestrianized thoroughfares of Westgate Street, Tavern Street, Princes Street and Buttermarket which accommodate the United Kingdom’s major retailers including Debenhams, H&M, Marks & Spencer, Next, Primark and River Island.

The subject property is situated in an extremely prominent position within the very heart of Ipswich town centre on Tavern Street equidistant between Northgate Street and Tower Street. McDonald’s and O2 are on either side of the property and other national high street brands along Tavern Street include H&M, Jack Wills, Cotswold Outdoor, River Island, Virgin Media, EE and Starbucks. Pedestrian footfall in the vicinity of the property is continuously high, being one of the principal pedestrianised thoroughfares within the town centre.

Ipswich also benefits from two major shopping centres: Sailmakers (formerly Tower Ramparts) which has its main entrance from Tavern Street and comprises approximately 12,077 sq m (130,000 sq ft) and Buttermarket which comprises approximately 21,368 sq m (230,000 sq ft).

Both of the main shopping centres within Ipswich town centre have changed hands over the past two years. Tower Ramparts Centre in Tavern Street which is owned by LaSalle Investment Management has been transformed and rebranded Sailmakers Shopping Centre. Comprising 12,077 sq m / 130,000 sq ft providing 38 retail units there have been new lettings including Blue Inc., BB’s, Pandora and Subway. In addition, Topshop / Topman committed itself to the scheme by completing a major refit to their store in 2015. The main entrance to the scheme links directly onto Tavern Street and the scheme also acts as a thoroughfare between Tavern Street and the town centre bus station.

In addition, The Buttermarket shopping centre was acquired in March 2015 in a joint venture between Capital & Regional and Drum Property Group. Buttermarket is undergoing is a major redevelopment / refurbishment programme and the multi-million pound project has attracted a 12 screen Empire cinema, Byron Burgers, Coast to Coast, Prezzo, Pure Gym and Wagamama. 

33 Tavern Street | |  |  | Ipswich | | IP1 3AG
33 Tavern Street | |  |  | Ipswich | | IP1 3AG


An attractive brick built building, the property comprises ground floor sales together with ancillary accommodation at first floor. In addition, there is accommodation in the basement and on the second floor which are demised to the tenant but are not accessible and have been closed off.

Internally, the property has been fitted out to a high standard in the tenant’s corporate image.

The building is Grade II Listed. 


The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:

Net Frontage    8.08 m  26’6” ft
Gross Frontage    8.61 m  28’3” ft
Ground Floor  Zone A  42.27 sq m  455 sq ft
   Zone B  35.95 sq m  387 sq ft
   Total Sales  78.22 sq m  842 sq ft
   ITZA    649
First Floor    59.64 sq m  642 sq ft
Total    137.86 sq m  1,484 sq ft

A set of floor plans is available to download and the measured survey report is available for assignment to a purchaser.

33 Tavern Street | |  |  | Ipswich | | IP1 3AG
33 Tavern Street | |  |  | Ipswich | | IP1 3AG




The property is let to Lush Retail Limited on a Full Repairing and Insuring lease for a term of 10 years from the 14th November 2012 expiring on the 13th November 2022.

In accordance with a Deed of Variation dated 21st July 2016 the tenant has agreed to remove a tenant only break option in November 2017 therefore providing in excess of 6 years unexpired lease term.

The Deed of Variation reduced the rent from £80,000 per annum to £73,000 per annum which came into effect on 24th June 2016. There will be an upwards only rent review on 13th November 2017 which will be capped at £80,000 per annum. Based on our analysis the current passing rent equates to £104 Zone A.

As part of the Deed of Variation the tenant received a rent free period from 1st August 2016 to 31st October 2016 (inclusive). A purchaser will not suffer an income shortfall as the vendor will top up any rent free period remaining.



The tenant, Lush Retail Limited (Co. No. 03084750), has reported the following figures;

  30th June 2015 30th June 2014
Turnover £95,138,548 £67,576,241
Pre-Tax Profit £ 6,892,863 £     144,444
Total Shareholders’ Funds £  7,200,891 £  1,897,540

Established in Poole, Dorset in 1994 Lush is a manufacturer and retailer of beauty products with an emphasis on ethically sourced ingredients. The ultimate parent undertaking is Lush Cosmetics Limited which reported in its most recent financial results the company is present in 49 countries and manufacturing products in 6 of those. For further information visit www.lush.com.

33 Tavern Street | |  |  | Ipswich | | IP1 3AG
33 Tavern Street | |  |  | Ipswich | | IP1 3AG

Market Commentary

The current passing rent of £73,000 per annum devalues to £104 Zone A and was re-based in July 2016 from a previous rent of £80,000 per annum (£118 Zone A).

46-48 Tavern Street, a much larger unit than the subject property, was let to Poundworld in January 2016 on a new 10 year lease a rent of £190,000 equating to circa £98.00 Zone A. Prior to the letting to Poundworld the property was let to River Island who were paying £306,000 per annum.

Jack Wills opened diagonally opposite the subject property at 52-56 Tavern Street in May 2016 following refurbishment. Originally let to Tesco, Jack Wills took assignment of a 20 year lease from July 2014, with a break option at the 10th year, at a passing rent of £90,000 per annum for no premium. As part of the transaction Jack Wills received £150,000 contribution towards shell works which had originally been granted to Tesco.

In addition, we understand 13 Tavern Street and 22 Tavern Street have been let this year to Pandora and Tiger respectively at rents devaluing to in excess of £100 Zone A.

Value Added Tax

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

33 Tavern Street | |  |  | Ipswich | | IP1 3AG
33 Tavern Street | |  |  | Ipswich | | IP1 3AG


Our client is seeking offers in the region of £985,000 (Niine Hundred and Eighty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 7.0%.

Investment Considerations

  1. An opportunity to acquire a prime freehold retail investment on one of the principal pedestrianised shopping streets within the heart of Ipswich town centre;

  2. The tenant has recently demonstrated their commitment to this property by removing their break option in 2017.

  3. Rent re-based in July 2016;

  4. The investment provides secure income;

  5. In excess of 6 years unexpired lease term;

  6. A purchase at the asking price reflects an attractive net initial yield.



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
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
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

Stephenson Harwood LLP  
Stephen Laud stephen.laud@shlegal.com +44 (0)20 7809 2514