College Square, Margate, Kent.

Property Document 

Anchored Retail Scheme

Description

The Development was built in the mid 1980’s and is of traditional brick and concrete construction and has a total floor area of approximately 69,900 sq ft comprising a large supermarket let to Morrisons 40,356 sq ft, 6 retail units and a kiosk together with a large multi-storey car park offering 506 spaces. The main pedestrian access to College Square is directly from Hawley Street into College Walk.

The supermarket is arranged over ground, first and basement floors, the ground floor provides retail sales area as well as ancillary storage together with staff and office accommodation. The basement provides a goods delivery area from the secure service yard and storage. The car park is demised to Morrison and is managed for the benefit of the foodstore by Euro Car Parks and provides 506 car parking spaces. 198 spaces are at surface level and 308 are undercover on two floors in an adjoining multi-storey car park which is approached from Hawley Street. Customer access from the car park is directly into the store from entrance level or via lift directly from the car park at basement level.

Location

The seaside resort of Margate is located in the north east corner of Kent in the Isle of Thanet which is also made up of Broadstairs and Ramsgate. The town lies 16 miles (25 km) north east of Canterbury and approximately 77 miles (124 km) east of Central London.

The Town is easily accessible from the M2 at junction 7 via Thanet way (A299) and the A2 via Canterbury Road (A28). Canterbury is approximately a 23 minute drive from the Town centre and Broadstairs and Ramsgate are 7 minutes and 10 minutes along the A255 and A254 respectively.

Margate railway station provides services to London, Canterbury, Dover and Ashford. Since the opening of the High Speed 1 rail service the journey time from St Pancras International (Central London) is 88 Minutes and proposals to enhance the Ashford to Margate line will further reduce the journey time to 60 minutes

Situation

Margate’s retailing is predominately centred on High Street (where tenants include Primark, Store Twenty One, New Look, WHSmith, Costa and the Carphone Warehouse) with further retailing located at the Centre and College Square (less than 100m away). The High Street and College Square are linked to the north via the Old Town area surrounding Market Place, which offers small independent restaurants and shops, and at the middle of the High Street via Queen Street and Cecil Square, which abuts The Centre where tenants include Boots, Shoe Zone, Peacocks and Card Factory.

College Walk occupies a well-known location which is easily accessible by both car, public transport and pedestrian from the town Centre and seafront. The site is bounded by Hawley Street to the west, Union Row to the South and Addington Street to the west. The large retail unit to the north of the scheme has recently been acquired by Poundstretcher and will further consolidate this part of town as Margate’s key convenience retail destination.

Investment Summary 

• Dominant 40,356 sq ft Morrisions supermarket within the surrounding area
• 94% of the income is secured against Morrisons, 99p Stores, Iceland and Superdrug
• Excellent WAULT of 18.1 years to expiry
• 506 car parking spaces with a ratio of 1:80sq ft
• Reversionary Morrisons rent from £11.00 psf to £12.50 psf representing an increase of £61,000 pa in 2016

Service Charge

The service charge is operated under two schedules and is apportioned on a floor area basis. The service charge year end is 31^st March 2015 and the current budget is £91,150, reflecting £1.30 psf.

EPC

Energy Performance certificates are available upon request

VAT

This property has been elected for VAT purposes and it is anticipated that the investment will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Offers sought in excess of £9,000,000 (Nine Million Pounds,) Reflecting the following yield profile –

Net Initial Yield – 7%

Reversionary Yield – 7.7%