GALLERY
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Summary
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Attractive Seaside town
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100% Prime Pitch
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VAT Free
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Let to The Works Stores Ltd (Revenue £264m, Net Worth £20.5m)
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Over 7 years unexpired, no breaks
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Passing rent of £60,000 pa
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Upward only rent review in December 2024
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7 car parking spaces at the rear
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Future development potential, subject to planning
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Freehold
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£715,000, subject to contract
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8% Net Initial Yield
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£143 per square foot / £1,540 per square metre
Location
Bognor Regis is an attractive seaside town in West Sussex on the south coast of England. The town is located 71 miles (114 km) south west of London, 7 miles (11 km) south east of Chichester, 18 miles (29 km) west of Worthing, 24 miles (38.6 km) East of Portsmouth and 30 miles (48.2 km) west of Brighton.
Bognor Regis has excellent transport links with the A27 providing convenient access to Portsmouth, Worthing and Brighton and to the wider national road network. In addition, the A27 links to the A3, M27 and M23. The town has benefitted from the completion of a £28 million bypass and relief road enhancement to the A259 Chichester to Littlehampton coast road.
Bognor Regis Railway provides regular and direct services to London Victoria with the fastest journey time being 1 hour and 38 minutes. The town is located 47 miles (75.6 km) south west of Gatwick Airport and 77 miles (124 km) south west of Heathrow Airport.
The district catchment is boosted annually by 3.7 million tourist visits, injecting approximately £180 million into the West Sussex seaside economy. Bourne Leisure have investment significantly in the Butlins Resort in Bognor Regis which attracts 385,000 visitors per annum (Blackstone acquired Bourne in February 2021). ‘Enterprise Bognor’ is a strategic employment and investment initiative which has identified 70 hectares of land, mainly to the north of the town centre for 1.15m sq ft of employment space, securing 4,000 jobs. Major employers include Rolls Royce, Warburtons and the University of Chichester. [Source: www.bognorregis.gov.uk].
Situation
The property is situated within a 100% prime position within the heart of the town centre on the pedestrianised London Road, Bognor’s principal retailing street.
Other retailers in the vicinity include EE (adjacent), WH Smith/Post Office (Opposite), Boots, Poundland, Sports Direct, Savers, Vodafone, Three, Wilko, Specsavers, Costa, Superdrug, Greggs, o2, Carphone Warehouse and H Samuel.
The town’s main car park and a large Morrisons supermarket are located moments from the property. Bognor Regis Beach is approximately 350 metres from the property.
Description
The property comprises a two-storey commercial property with the benefit of a gated rear yard with 7 car parking spaces.
The ground floor predominantly consists of sales accommodation with storage and a staff area. The first floor consists of storage.
The property has been fitted out by the tenant to their usual corporate style.
We suggest that there is the potential to increase the massing on the first floor along the flat roof at the centre of the property. In addition, we suggest that a buyer could convert the first floor and part ground floor to residential use with independent access and parking at the rear of the property, subject to planning permission and vacant possession. See aerial photography.
Accommodation
The property has been measured by BKR Floor Plans and provides the following floor Net Internal floor areas:
| Net Frontage | 7.92 m | 26’ |
| Gross Frontage | 8.76 m | 28’9” |
| Zone A | 48.22 sq m | 519 sq ft |
| Zone B | 47.84 sq m | 515 sq ft |
| Zone C | 43.57 sq m | 469 sq ft |
| Remainder | 204.66 sq m | 2,203 sq ft |
| Ground Floor | 344.29 sq m | 3,706 sq ft |
| First Floor | 47.84 sq m | 515 sq ft |
| Ground Floor ITZA | 1,169 UNITS | |
| Total NIA | 1,169 UNITS | 4,221 sq ft |
| Total GIA | 464.31 sq m | 4,998 sq ft |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £590 + VAT.
Tenure
Freehold.
Tenancy
The property is let to The Works Stores Limited on a full repairing and insuring lease for a term of 10 years from 2nd December 2019, expiring 1st December 2029 at a passing rent of £60,000 per annum. There is an upwards only rent review effective 2nd December 2024.
By agreement with the tenant, the December 2024 break option was removed and the tenant receives in effect a 7.5 month rent-free benefit whereby the lease rent is reduced to half-rent for five quarters, expiring after the September 2023 quarter, following which the rent returns to the lease rent of £60,000 per annum. The vendor will “top-up” the rent so a purchaser benefits from an income of £60,000 per annum from completion.
Based on our analysis the passing rent equates to a Zone A rate of £51 per square foot.
Therefore, there are in excess of 7 years unexpired with no breaks.
Covenant
The Works Stores Limited (Co. No. 06557400) has reported the following figures:
| 1st May 2022 | 2nd May 2021 | 26th April 2020 | |
|---|---|---|---|
| Revenue | £264,630,000 | £180,0680,000 | £225,042,000 |
| Pre-Tax Profits | £12,858,000 | (£5,707,000) | (£672,000) |
| Net Worth | £20,550,000 | £5,733,000 | £4,992,000 |
The ultimate parent company is The Works.co.uk, listed on the London Stock Exchange.
The Works is one of the UK’s leading multi-channel specialist retailers of value gifts, arts, crafts, toys, books and stationery. The company has 525 stores throughout the UK & Ireland with 3,800 employees. It was placed on the Best Companies 2021 25 Best Big Companies to Work For list for the third consecutive year.
Their stores can be found on high streets, in retail parks, shopping centres and as concessions in various locations. The company also has a significant and growing online presence with its multi-channel offering, one of the first of its kind in the value retail sector, including a popular Click & Collect service, offering further convenience for customers.
The company saw a significant increase in sales prior to the COVID-19 enforced store closures in March 2020. During COVID-19 the company’s stores went into hibernation but its website continued to trade throughout. The company’s product proposition played an important role in customers’ lives during this period, providing help with children’s education, mindfulness material to support mental health and well-being products to beat the boredom during the most challenging weeks of lockdown.
During lockdown the company drove the highest follower growth versus its competitors across its’ two main social media platforms; Facebook and Instagram. This equated to a 145% follower increase year on year.
The company has stated in their accounts that the pre-tax loss reported in 2020 and 2021 is as a result of the national lockdown during the COVID-19 pandemic. Since then, the performance of the company is ahead of the profitable pre pandemic levels.
For further information see www.theworks.co.uk.
VAT
The property has not been registered for VAT and therefore VAT is not applicable on the purchase price.
Proposal
We are instructed to seek £715,000 (Seven Hundred and Fifteen Thousand Pounds), subject to contract. This price reflects a net initial yield of 8%, assuming purchasers’ costs of 5.33%.
Please note that a purchaser will be re-charged the costs of the measured survey (£590 + VAT) and searches (£668.28) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1% of the Purchase Price plus VAT.
Investment Considerations
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Located in a popular seaside town (3.7 m tourists per annum in district catchment);
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Let to the secure covenant of The Works Ltd (Revenue £264m, Net Worth £20.5m);
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Over 7 years term certain;
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Tenant removed break clause, demonstrating their commitment to this location;
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Significant repurposing potential via future development of the upper parts;
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Gated rear yard with car parking for 7 cars;
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100% prime pitch location in the heart of the town centre;
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VAT Free Investment
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Attractive lot size to an investor;
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Attractive net initial yield of 8%.
Data Room and clicktopurchase®
Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.
Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.
clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, click here.
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Contact Us
| Singer Vielle | +44 (0) 207 935 7200 | |
|---|---|---|
| Daniel Elia | daniel@singervielle.co.uk | +44 (0) 203 701 1353 |
| Dale Henry | dale@singervielle.co.uk | +44 (0) 203 701 1356 |
| Neil Singer | neil@singervielle.co.uk | +44 (0) 203 478 9120 |
Vendors Solicitor
| Druces LLP | +44 (0) 207 216 5591 |
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| Karen Chapman | k.chapman@druces.com |