LONGWOOD RETAIL PARK NEWTOWNABBEY, PRIME NORTHERN IRELAND RETAIL PARK INVESTMENT BT37 9UF

Transcription

1 LONGWOOD RETAIL PARK NEWTOWNABBEY, BT37 9UF PRIME NORTHERN IRELAND RETAIL PARK INVESTMENT

2 A prime, well secured retail park located within the dominant retail cluster north of Belfast city centre. 2 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

3 Longwood Retail Park A Leading Retail Destination + A premier shopping destination, one of Belfast s leading schemes in an area of substantial retail critical mass, with an extensive catchment profile ,000 people live within the primary catchment area increasing to over 365,000 people living within a 15 minute drive-time. + Excellent accessibility located adjacent to Junction 2 of the M2, drawing on population centres north of Belfast. + Relevant retail for a loyal customer base with high levels of average household Comparison Goods spend. + Modern floorspace utilising the scheme s flexible layout. + Average unexpired lease term of 8.2 years to expiry and 7.9 years to break. + Institutional income stream secured on covenants of leading retailers totalling 3,699,970 of which 72% have a 5A1 Dun & Bradstreet rating with Minimum Risk of business failure. + A good quality planning consent providing a mix of Open and Bulky Class A1 retail consent. + Part Freehold / Free Farm Grant and part Long Leasehold site extending to 14.8 acres. + Future value enhancement opportunity to broaden tenant mix by increasing retailer representation and further improvement to the customer experience. Proposal We are instructed to seek offers in the region of 47,780,000 subject to contract and exclusive of VAT. An acquisition at this level assuming purchaser s costs of 6.78% and the 2.5% pa compound 5 yearly reviews on DW Sports, reflects the following yield profile: 7.25% Net Initial Yield 7.38% October % October LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

4 BELFAST Belfast is the commercial, administrative and cultural capital of Northern Ireland, with a city population of 339,000 people and 670,000 living within the wider metropolitan area. Located on the north-west coast, the City has witnessed significant investment and transformation over the last decade and is also the focus of the region s main infrastructure with good connections to the rest of Ireland and mainland UK. The economy is diverse with significant growth sectors in Pharmaceuticals and Healthcare, ICT and energy, as well as emerging sectors such as Cloud Computing, 3D Printing, Big Data and Virtual Commerce. Northern Ireland is a more competitive location than the rest of the UK and the Republic of Ireland, and Belfast is ranked in the top 10 local areas in the UK for productivity with a GVA per head of 44,577. Corporation Tax levels here are already the lowest in the G20, and from 2018, they will potentially fall to 12.5 per cent. Between April 2015 and April million in major developments were approved in Belfast, including 21 new office schemes, 17 new or expanded hotels and 12 purpose-built student accommodation projects. In addition, the acquisition of Belfast City Airport by 3i, which should lead to operating efficiencies and facilitate expansion. As a consequence of the recent election results and the deal agreed between the Conservative Party and the DUP, Northern Ireland will see significantly increased investment over the next 5 years particularly infrastructure and services. Belfast 4 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

5 Location & Communications M74 Road Belfast has good road communications served by the M2 providing a link to the north and west of the Province and the M1 which links with Dublin in the south. All the major roads serving Northern Ireland converge on the city. Rail The two principal railway services in the City Centre include Great Victoria Street and Belfast Central, the latter of which provides a direct link with Dublin. A new 130 million transport hub is planned in the heart of the city to better integrate trains, buses and cross border connections. DONEGAL LONDONDERRY BALLYMENA M2 COOKSTOWN M1 BELFAST ENNISKILLEN ARMAGH NEWCASTLE CAVAN DUNDALK CAIRNRYAN ISLE OF MAN DOUGLAS A74(M) DUMFRIES CARLISLE M6 Air Belfast has two airports within a 30 minute reach: George Best Belfast City located approximately 4 miles (6 km) north-east of the city centre and Belfast International approximately 23 miles (37 Km) to the north-west. Ferry Belfast Harbour is located 2 miles (3 km) north of the city centre and is the second busiest port on the island, dealing with 70% of Northern Ireland s seaborne trade and welcoming more than 80 cruise LIMERICK ships in a year. Passenger ferry services provide regular crossings to Scotland, England and Wales. M6 LONGFORD MULLINGAR ATHLONE M6 PORTLAOISE M7 M7 M9 M8 KILKENNY M4 M3 M1 M50 DUBLIN ARKLOW M11 HOLYHEAD BANGOR LIVERPOOL M55 M65 M61 M62 M53 M56 MANCHESTER M6 M60 STOKE-ON-TRENT M54 WOLVERHAMPTON Longwood Retail Park, Longwood Road, Newtownabbey, BT37 9UF 5 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

6 Catchment & Demographics BALLYNURE BALLYCLARE BALLYCARRY CACI research confirms that Belfast is the leading retailing destination in the region. DOAGH A57 A8 WHITEHEAD Longwood s catchment as a consequence of strong critical massing of retail in the immediate location and excellent accessibility is extensive, capturing affluent demographic groups in the north of the City. ANTRIM A26 A57 M2 NEWTOWNABBEY A2 CARRICKFERGUS + CACI 10 minute drive-time estimate of 162,000 people increasing to over 365,000 people within a 15 minute drive-time. + A population increase of 1.6% is estimated by 2021 for the 10 minute drive-time catchment and 2.6% by Longwood s shopper groups draw on much of the Affluent Acorn category groups north of Belfast around Newtownabbey, Whiteabbey and Monkstown. BELFAST INTERNATIONAL AIRPORT CRUMLIN GLENAVY A6 A52 BELFAST M5 HOLYWOOD GEORGE BEST BELFAST CITY AIRPORT DUNDONALD A2 A20 BANGOR A21 NEWTOWNARDS + High levels of average household Comparison Goods spend in the 15 minute catchment of 6,780 against a UK average of 6,876 most notably on Personal Goods which is 16% above the average. A26 10 minute drivetime 15 minute drivetime DUNMURRY M1 A24 COMBER Longwood Retail Park, Longwood Road, Newtownabbey, BT37 9UF 6 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

7 Strategic Location Longwood is highly accessible from the local and national road network, situated just north of the junction of the M2 and M5 and having accessibility from the A2. HAZELBANK PARK + The scheme occupies a large site of 14.8 acres just 5 miles north of Belfast city centre in Newtownabbey. + Longwood, together with the adjoining retail provision provide approximately million sq ft of retail accommodation, and is designated a District Centre within the Belfast Metropolitan area. + Newtownabbey is exceptionally well placed to capture increased consumer spend with its improving retail offer, strong tenant line-up, extensive free parking and the ease of access. BELFAST ZOO Whitewell Rd M2 Arthu Church Rd VALLEY LEISURE CENTRE ABBEY RETAIL PARK r Rd VALLEY RETAIL PARK Mill Rd ABBEY CENTRE WHITEHOUSE Longwood Rd Shore Rd A2 Inward Investment & Housing Development Antrim Rd A2 M5 In March 2017 the Department of Finance launched a 100 million Northern Ireland Investment Fund which will provide a significant drive for inward investment in private sector-led development, infrastructure and low carbon projects to deliver economic growth for the entire region. There are also a high number of housing starts in the area including: + Clanmil Housing are constructing 48 units on the former Tesco supermarket site at Carnmoney Road; + Farland are developing 64 units at Glen Corr off Ballyclare Road; + Hagan Homes are developing 24 units at Wells Gate on Fairhill Crescent; + In addition 21 units are being built in a development known as Foxton on Ballycraigy Road. BELFAST CASTLE A6 FORTWILLIAM GOLF CLUB Grays Ln Shore Rd J2 A2 J2 M2 M5 Longwood Retail Park, Longwood Road, Newtownabbey, BT37 9UF Newtownabbey is readily accessible for consumers enabling it to draw from local and regional catchments 7 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

8 Newtownabbey Retail Provision Valley Retail Park Longlands Ave Glenmount Rd Church Rd Abbey Retail Park Glenmount Rd There is an estimated million sq ft of retail floorspace within the Newtownabbey area, making it the most significant out of centre offer in the Capital. This cluster of food and non-food retailing has a large catchment representing the only retail provision for the north Belfast population drawing on areas such as Whiteabbey, Greenisland, Mossley, Glengormley and Carrickfergus. Longlands Park Longlands Ave Arthur Rd Longlands Rd Arthur Rd Old Church Rd Felden Gardens Longwood Rd Potential Leisure Development Abbey Centre Longwood Rd THE DOOR STORE Longwood Rd FUNKY MONKEYS Longwood Road Development + Longwood Retail Park (subject property): Matalan, TK Maxx, Bargain Buys, Home Bargains, Dreams, Mothercare, Pets at Home, DW Sports, Homebase and Costa. + Abbey Centre (NewRiver): Shopping centre with key anchors including Primark, Dunnes Stores, Argos, Next, River Island, Topshop/Topman, JD, New Look, Clarks and Boots. The Dunnes Stores and Next are relocating within the scheme following a new extension. Arthur Cl Arthur Ave Mill Rd Longwood Retail Park Sanda Rd + Abbey Retail Park (Hammerson): Tesco, Carpetright, Currys/PC World and B&Q. + Valley Retail Park (AEW UK): Go Outdoors, Harry Corry, Halfords, Smyths Toys and Harveys/Bensons. + Longwood Road Development (Private Investor): Starplan, Funky Monkeys, CFC Interiors and Screwfix Direct. Whitewell Rd M2 Abbey Business Park Bawnmore Park Mill Rd A2 Shore Rd Quay Rd In addition there are a number of solus retailers including; Marks & Spencer, Sports Direct, B&M, Dunelm, Pure Gym, Energie Gym, Toys R Us, Lidl and a McDonald s drive-thru. 8 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

9 Longwood Retail Park Modern accommodation aligned with current retailer requirements, providing a customer orientated and contemporary, high quality shopping environment. + Over 190,000 sq ft of open air retail floorspace. Abbey Trading Estate Longwood Rd + A further 34,900 sq ft of mezzanine space in 5 units. + Predominantly arranged across three terraces, a solus unit and a pod unit located at the centre of the scheme. + Approximately 787 customer parking spaces providing a ratio of 1:246 sq ft. + Future flexibility to adapt units to a range of sizes, to accommodate retailer requirements. Construction + Predominantly steel portal frame construction. 787 parking spaces + Substantial glazed frontages in the majority of units. Mill Rd + Extensive tarmac with black top finish car park and concrete surfaced service yards at surface and basement level. Access + Vehicle access to the park is from the junction with Mill Road to the South West of the park and from Longwood Road to the North. To Let Shore Rd + Regular bus service to the park from the city centre and surrounding areas. + The pedestrian crossings in and around the park ensure a safe shopping environment. + Service access is also from Mill Road and Longwood Road. For indicative purposes only 9 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

10 Modern, flexible floorspace let to leading retailers drawing upon a substantial catchment. 10 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

11 Tenancies The property is let to destination retailers producing a total current income of 3,699,970 per annum with an average weighted unexpired lease term of 8.2 years (7.9 years including tenant breaks). Unit Tenant Trading Fascia GIA (sq ft) Lease Start Term (years) Lease Expiry Next Rent Review TOB Rent pa psf Comments 1 Matalan Retail Ltd Matalan 40,690 11/10/ /10/ /10/ , TJX UK TK Maxx 30,099 23/07/ /05/ /05/ , Potential to split the unit into a 20,000 sq ft and 2 x 10,000 sq ft. Original 15 year term extended by reversionary lease dated 11 May The 2020 rent review is capped at 115% of the passing rent. 3 Poundworld Retail Ltd Bargain Buys 15,018 04/05/ /05/ , a TJ Morris Ltd Home Bargains 10,682 05/08/ /08/ /08/ , Cap on rent review of 2% pa compound. 4b Mytime Furniture Limited Dreams 7,506 26/07/ /07/ /07/ /05/ , Cap on rent review of 2.5% pa compound. 4c Mothercare UK Ltd Mothercare 9,989 30/04/ /04/ , a Pets at Home Ltd Pets at Home 9,942 23/10/ /10/ , Cap on area at rent review of 9,942 sq ft. 5b Vacant (Vendor guarantee) Vacant 10, , Dave Whelan Sports Ltd DW Sports 22,550 23/10/ /10/ /10/ , Hampden Group Ltd Homebase 35,000 25/09/ /09/ /09/ , Previous tenant (Creations Interiors Ltd) vacated on 13/05/ year vendor rent, rates and service charge guarantee. 2.5% per annum compound 5 yearly rent review. Full cover mezzanine. Mezzanine sales of circa 30% ground floor area. Cap on area at rent review of 35,000 sq ft. Pod MBCC Foods (Ireland) Limited Costa 1,991 19/08/ /08/ /08/ /08/ , Cap on rent review of 3% pa compound. Mobile Chris White 7,020 Let on licence from May TOTAL 193,645 3,699,970 Tenure The property is held part Freehold / Free Farm Grant (being a freehold with leasehold characteristics) and part Long Leasehold for a term of 850 years from 30 May 2003 and is subject to the payment of ground rents. Planning The property benefits from a mix of Open and Bulky Class A1 retail consent. A planning summary is available on request. The site extends to approximately 14.8 acres (6.0 hectares). 11 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

12 Covenants The scheme let to a strong line-up of fashion, homeware, convenience and DIY retailers; the majority of which are dominant in their sectors of the market. 72% of the scheme s income on occupied units is secured against tenants rated by Dun & Bradstreet as having a Minimum Risk of business failure rising to 96.7% when including the income secured against tenants with a Lower than Average Risk. Matalan have announced an increase in full year profits and a 37% jump in EBITDA before exceptional items to 77m in the year to February They opened four new stores last financial year and rolled out its Home Extra format in three stores. A further 50 Matalan stores are to be refurbished in the coming year, while the business is due to launch a new ecommerce platform. Hampden Group Ltd, trading as Homebase, was sold in February 2016 by Home Retail Group to Wesfarmers, the owners of Australian DIY chain Bunnings Warehouse, who are investing 580 million into the retailer. We would suggest that the company is considerably stronger since the acquisition. Unit Tenant Trading Fascia % of income Year Ending Note: the % of income figures excludes the Vendor Guarantee on Unit 5b. Sales Turnover (000 s) Profit/Loss Pre Taxes (000 s) Net Worth (000 s) D&B Ranking Risk of Business Failure 1 Matalan Retail Ltd Matalan 21.4% ,060,500-20, ,800 5A1 Minimum 2 TJX UK TK Maxx 15.8% ,434, , ,400 5A1 Minimum 3 Poundworld Retail Ltd Bargain Buys 8.5% ,689-5,405 7,048 3A2 Lower than average risk 4a TJ Morris Ltd Home Bargains 4.9% ,602, , ,800 5A1 Minimum 4b Hometime Group Limited Dreams 3.3% A3 Greater than average risk 4c Mothercare UK Ltd Mothercare 6.4% ,000-9,500-57,100 N1 Minimum 5a Pets at Home Ltd Pets at Home 5.7% ,726 81, ,310 5A1 Minimum 6 Dave Whelan Sports Ltd DW Sports 14.7% ,586 3,566 51,804 5A2 Lower than average risk 7 Hampden Group Ltd Homebase 17.9% ,537-1,617, ,567 5A1 Minimum Pod % MBCC Foods (Ireland) Limited Costa 1.4% ,630,324 5,714 20,006 4A2 Income Profile and Unexpired Term Certain (to break) Years Scheme Income (%) Term Certain (Years) Lower than average risk Costa Homebase DW Sports Pets at Home Mothercare Dreams Home Bargains Bargain Buys TK Maxx Matalan 12 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

13 Future Value Enhancement + Future split of the Matalan unit + Potential extension of Bunnings unit + Re-letting of the vacant unit + Regears and future lease extensions + Build out the Starbucks drive-thru: Terms have been agreed with Starbucks to take a new drive-thru pod extending to 2,200 sq ft in the corner of the scheme adjacent to Mothercare and the Mill Road entrance. A new 15 year lease (break at year 10) has been agreed at a rent of 55,000 per annum ( per sq ft) subject to 5 yearly open market reviews capped in line with RPI compounded on an annual basis. To Let Proposed Starbucks Developing Newtownabbey Retail Cluster The retail provision in Newtownabbey provides a sub-regional draw, with significant anchor retailers including Marks and Spencer, Dunnes, Primark and Next s largest superstore in Northern Ireland, which opened to trade in December The Dunnes store is currently being extended by 15,000 sq ft, together with a new 35,000 sq ft anchor store. These initiatives will further strengthen the retailing dominance that Newtownabbey provides as a convenient, accessible and modern retailing environment. The area (described as Abbey Centre ) is designated a District Centre within the draft Belfast Metropolitan Area Plan, with proposals to reclassify the hierarchy of centres such that Abbey Centre (together with Antrim Town Centre) becomes a Tier 1 retail centre in the Antrim and Newtownabbey Borough given its commercial importance and potential for future development. Abbey Trading Estate, that sits north of Longwood and west of the Abbey Shopping Centre is being promoted for re-development by the owners, (Corbo). This will further enhance the amenities, appearance and provision of the immediate vicinity. 13 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

14 Further Information Service Charge A low service charge rate of 0.94 to 1.42 per sq ft. Environmental A Phase 1 Environmental Assessment has been prepared by Delta-Simons dated June A copy is available upon request. EPCs Copies of the EPC s for all units are available upon request. Capital Allowances Further information is available on request. VAT We understand the Property has been elected for VAT and it is anticipated that the transaction will be treated as a TOGC. 14 LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

15 Proposal We are instructed to seek offers in the region of 47,780,000 subject to contract and exclusive of VAT. An acquisition at this level assuming purchaser s costs of 6.78% and the 2.5% pa compound 5 yearly reviews on DW Sports, reflects the following yield profile: 7.25% Net Initial Yield 7.38% October % October LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF

16 Contact Cushman & Wakefield 43/45 Portman Square London, WIA 3BG PATRICK KNAPMAN T: M: E: GRAHAM COLLISON T: M: E: JENNY HEWITT T: M: E: BILLY MCCOMBE T: M: E: MICHAEL PIERCE T: M: E: DISCLAIMER - June 2017 Cushman & Wakefield LLP and DTZ McCombe Pierce LLP for themselves and for the vendors of this property whose agents they are, give notice that: (1) The property information is produced in good faith, set out as a general guide only and does not constitute, or constitute any part of, an offer or a contract. (2) No person in the employment of Cushman & Wakefield LLP and DTZ McCombe Pierce LLP has any authority to make or give any representation or warranty whatsoever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) None of the statements contained in this property information are to be relied on as statements of fact. Any intending purchaser or lessee should satisfy themselves by inspection or otherwise as to the accurateness of the property information June LONGWOOD RETAIL PARK, NEWTOWNABBEY, BT37 9UF