51-59 MONTAGUE STREET, WORTHING
- Prime location with dual frontage onto the pedestrianised Montague Street and Marine Parade.
- A well configured store trading over two floors, with a total area of 89,086 sq ft (8,276 sq m).
- Let to the 5A1 covenant of Marks and Spencer PLC until March 2027.
- Marks and Spencer has a net worth of £4.91 billion.
- Restricted alienation clause and tenant option to renew for a further 40 years from expiry.
- Benefits from fixed annual rental uplifts of 1.95% on 29 September each year.
- Current passing rent of £694,309 per annum (£7.42 per sq ft) rises to £707,849 per annum (£7.57 per sq ft) at the next fixed uplift on 29 September 2019.
Offers sought in excess of £9,480,000 subject to contract and exclusive of VAT.
|Net Initial Yield||7.00%|
Yields based on the topped up September 2019 rent.
Yields are net of purchaser’s costs of 6.69%.
Prominent frontages to Montague Street and the seafront
The property comprises a substantial, attractive retail unit with prominent frontage onto both Montague Street and Marine Parade, with accommodation arranged over ground, basement and three upper floors.
The ground floor comprises a large open plan sales floor, including M&S Foodhall. While the first floor comprises further sales space and the main stock rooms. The popular M&S Café is also located at first floor and benefits from sea views.
Access to the first floor is provided via an escalator and two customer lifts. Two goods lifts provide direct access to the stock rooms on all floors from the loading bay, which is located at lower ground floor level and accessed via a service road from Marine Parade.
Staff facilities, training rooms and further stock rooms are located on the second floor.
The property is let in its entirety to Marks and Spencer PLC for a term commencing 6 July 2001 and expiring 31 March 2027.
The current rent of £694,309 per annum (£7.42 per sq ft) is subject to fixed annual uplifts on 29th September by 1.95%. The passing rent will increase to £707,848 per annum on 29th September 2019 which reflects £7.57 per sq ft (incorporating an addition of 5% for fittings).
The alienation provisions are restrictive and highly beneficial to the landlord; the tenant can only assign to a company “of no less financial standing” than Marks and Spencer PLC as at the start of the lease in 2001, i.e. an investment grade rating of ‘A’ or better.
The lease is FRI and is outside the L&T Act 1954.
On expiry, the tenant has the right to renew the lease for a term of 40 years, at open market rent, with a break at the 15th year (31st March 2042).
51-59 Montague Street is held freehold under title number WSX255620.
The rear section of the property fronting Marine Parade (shaded in blue on the title plan) is held on a long leasehold interest from Worthing Borough Council (title number WSX40044). The lease is for a term of 99 years from 29th September 1974 expiring 28th September 2073 at peppercorn.
Knightsbridge House, which forms 17 apartments on the second, third and fourth floors of shaded element, has been let by the long leaseholder to Barratt Developments (Investments) Limited until 25th September 2073 at a peppercorn.
The property is located in the seaside town of Worthing, West Sussex. Worthing is located on the south coast, approximately 11.2 miles west of Brighton, 15.4 miles east of Bognor Regis, 19.8 miles from Chichester and 54.8 miles from Central London.