Riverside Retail Park

Transcription

1 Riverside Retail Park Warrington WELL SECURED open A1 RETAiL PARK investment opportunity

2 RIVERSIDE RETAIL PARK WHARF STREET warrington WA1 2GZ CONTENTS 05 Executive Summary 13 PLANNING 06 LOCATION 13 COVENANT INFORMATION 06 SOCIO-ECONOMIC PROFILE 14 ASSET MANAGEMENT OPPORTUNITIES 08 RETAIL WAREHOUSE PROVISION 15 PROPOSAL 10 SITUATION 11 DESCRIPTION 12 TENANCIES 12 TENURE 12 SERVICE CHARGE

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5 RIVERSIDE RETAIL PARK WARRINGTON EXECUTIVE SUMMARY n Warrington is located in the north west of the UK, strategically positioned between Manchester and Liverpool in the county of Cheshire and at the heart of the surrounding motorway network. The town s resident population stands in the order of 198,900 people and the 15 minute drivetime catchment is approximately 248,000 people (CACI Ltd). n the current annual income stands at 2,601,421 reflecting non food rents of between psf, whilst the average weighted unexpired term is around 9.7 years. n 76.4% of the income is secured against companies boasting a Delphi Rating defined as low risk whilst 69.8% is rated very low risk. n Riverside Retail Park is situated only a short distance to the south east of Warrington town centre, on the banks of the River Mersey and adjacent to the Mersey Road Roundabout junction. n The park benefits from an Open A1 non food planning consent, though food sales over c. 1,728 sq m (18,600 sq ft) of floorspace are expressly permitted, in isolation to the A3 planning consents for the two restaurant pods. n The park extends to around 14,703 sq m (158,259 sq ft), comprising 12 units configured in an L-shaped terrace around forecourt parking for approximately 625 cars, together with two stand alone restaurant pods. n Currently fully let to 14 occupational tenants the scheme boasts a strong retail mix including Homebase, Sportsdirect.com, Discount UK, Pets at Home, Laura Ashley, Home Bargains, Next, Pizza Hut and McDonalds. Offers are sought in the region of 35,000,000 subject to contract and exclusive of VAT, for the Freehold interest in this property. A purchase at this level would reflect an initial yield of 7.03%, based on purchasers costs of 5.80%. Additionally should an uplift be agreed on the outstanding Homebase review from September 2011 a further top-up payment from the Purchaser is expected by the Vendor. Postcode: WA1 2GZ Grid Reference: SJ

6 riverside retail ParK LOCATION SOCIO-ECONOMIC PROFILE Warrington is situated in the county of Cheshire, approximately 31.5 km (19.6 miles) south west of Manchester, 21.7 km (13.5 miles) south of Wigan, 30.1 km (18.7 miles) east of Liverpool and 311 km (193 miles) north west of London. Warrington boasts a resident borough population of around 198,900 people. Drivetime catchment figures provided by caci Ltd shows populations of 135,882 people, 247,980 people and 559,358 people within 10, 15 and 20 minute contours respectively. Standing on the banks of the river mersey, the town prospered during the industrial revolution and indeed doubled in size following its designation as a New town in Warrington boasts strong communication links as a result of its positioning at the heart of the north wests motorway network. the m62, Junction 9, is around 4 km (2.5 miles) to the north via the a49 Winwick road, providing direct links to Liverpool in the west and manchester to the north east. the m6, via the a574 or a57, provides a key arterial north south route just to the east, linking with Wigan, Preston and the North and Newcastle under Lyme, Stoke on trent and the South. Finally the m56, around 7.4 km (4.6 miles) to the south via either the a56 or a49, offers a link to Ellesmere Port and the m53 to the south west. Warrington Bank Quay train Station offers links to Liverpool, manchester and Preston amongst others and provides a fastest direct service to London Euston of around 1 hour 50 minutes. M57 Knowsley 2 Saint Helens Prescot Rainhill Widnes Runcorn 2 Abram Ashton in Makerfield Haydock Newton le Willows Burtonwood Warrington Norton Risley M56 Tylldesley 2 Lymm 10 minute drivetime 15 minute drivetime 30 minute drivetime M56 Wilms M56 Knutsford 06 Ellesmere Port Elton Northwich

7 MANCHESTER WARRINGTON LIVERPOOL ST HELENS WIGAN NORTHWICH CHESTER STOCKPORT MACCLESFIELD WIDNES BURY LEIGH WILMSLOW OLDHAM ROCHDALE BOLTON KNUTSFORD ORMSKIRK SKELMERSDALE RUNCORN AD M56 M56 M56 M56 M56 M53 M M57 M58 M A579 A580 A577 A58 A57 A57 A56 A50 A56 A58 A57 A57 A557 A533 A533 A533 A533 A556 A556 A556 A54 A54 A41 A41 A41 A570 A570 A580 A580 A

8 RIVERSIDE RETAIL PARK RETAIL WAREHOUSE PROVISION Warrington s retail warehouse provision (non food) extends to around 111,482 sq m (1.2m sq ft) comprising 3 main retail parks (including the subject property), the Cockhedge Shopping Park which offers both in and out of town centre characteristics and a number of solus units including the IKEA and M&S superstores at Gemini. We have provided information on these elements below and on the adjacent map and aerial photograph. 04 DW Fitness Bank Street, WA1 2AS Situated on the western side of Mersey Street in close proximity to the subject property, this former JJB Sports Health & Fitness was originally developed in 1997 and extends to around 2,379 sq m (25,600 sq ft) with parking for approximately 120 cars. 05 B&Q Warehouse Newton Street, WA2 8RP Developed in 1998 this store extends to approximately 9,996 sq m (107,600 sq ft) and is owned by B&Q. Additionally there is a c. 254 sq m (2,739 sq ft) Burger King fast food unit. 01 Gemini retail park 02 Alban retail park 03 DFS 01 Gemini Retail Park Europa Boulevard, WA5 7TY Situated approximately 5 km (3.1 miles) to the north west of the town centre, this location has established itself as the premier out of town offer in Warrington. Currently anchored by a c. 13,935 sq m (200,000 sq ft) IKEA Superstore and 11,344 sq m (122,000 sq ft) Marks & Spencer unit, with additional retailers in the form of Boots, Next and Toys R Us, we understand proposals are in place for an extension of the existing Next offer together with refurbishment of both this and the Boots unit. 02 Alban Retail Park Hawleys Lane, WA2 8TW This retail park was originally constructed in the late 1980s and extends to approximately 12,402 sq m (133,500 sq ft) in 11 units including 3 stand alone pods. Currently anchored by a Currys/PC World Megastore and retailers including Halfords, Hobbycraft, Mothercare and Carpetright we understand future plans for this scheme centre around the introduction of a large food anchor. 06 Pinners Brow Retail Park Winwick Road, WA2 7XA Originally developed in 2000, this four unit scheme extends to around 5,388 sq m (58,000 sq ft) and is let to CS Lounge Suites, Storey Carpets and Wickes with around 696 sq m (7,500 sq ft) in one unit currently vacant. Located approximately 0.3 km (0.5 miles) to the north west of the town centre. 07 Cockhedge Shopping Park Cockhedge Way, WA1 2QQ Effectively forming part of the town centre offer this c. 25,548 sq m (275,000 sq ft) scheme was originally developed in Anchored by a c. 6,967 sq m (75,000 sq ft) Asda foodstore, there are around 40 units ranging in size from 19 sq m (200 sq ft) to 2,322 sq m (25,500 sq ft) and occupiers including Gala Bingo, Superdrug, Carpetright, Comet and Wilkinson. 04 DW FITNESS 05 B&Q Warehouse 06 PINNERS BROW RETAIL PARK 07 COCKHEDGE SHOPPING PARK DFS Vernon Street, WA1 2HG Positioned immediately adjacent to the subject property, the store extends to around 2,034 sq m (21,900 sq ft). 08 Matalan Winwick Street, WA2 8NU Located just to the north of the Tesco foodstore on Winwick Road, this unit extends to around 2,928 sq m (31,519 sq ft). 08 MATALAN

9 01 05 N 02 S TOWN CENTRE A RIVERSIDE RETAIL PARK A A57 Warrington RIVERSIDE RETAIL PARK 09 A5061

10 WINWICK ROAD RIVERSIDE RETAIL PARK SITUATION Riverside Retail Park is situated on the southern edge of Warrington town centre, on the eastern side of the Mersey Street and on the northern bank of the River Mersey, adjacent to the bridge roundabout junction of Wilson Pattern Street, Knutsford Road and Mersey Street. A574 WINWICK ROAD A50 A574 Bounded by the River Mersey to the south, predominantly residential and light commercial uses to the east and north and a DFS Furniture store immediately to the west, the property benefits from excellent prominence to the main arterial route into Warrington from the south in the /A5060. WARRINGTON HOSPITAL WARRINGTON HOSPITAL FROGHALL LANE A57 PARKER STREET WILSON PATTEN STREET MIDLAND WAY A57 FROGHALL LANE A57 WARRINGTON CENTRAL RAIL STATION PARKER STREET A5060 MERSEY STREE T A5061 A57 CHURCH STREET MANCHESTER ROAD FARRELL STREET MIDLAND WAY A57 Riverside Retail Park KNUTSFORD ROAD WARRINGTON A5 061 A50 A50 MERSEY STREE T A57 CHURCH STREET MANCHESTER ROA FARRELL STREET CHESTER ROAD WILDERSPOOL CAUSEWAY WILSON PATTEN STREET A KNUTSFORD 5060

11 RIVERSIDE RETAIL PARK DESCRIPTION The subject property comprises a purpose built retail warehouse park totalling approximately 14,703 sq m (158,259 sq ft) arranged around forecourt parking for approximately 625 cars, providing a ratio of 1: 253 sq ft. Segregated rear servicing facilities are available for the Homebase unit and south facing portion of the terrace via Parr Street and from Wharf Street for the west facing portion of the terrace. Configured in what is effectively an L-shaped terrace, the scheme is anchored at its western end by a DIY store extending to c. 3,344 sq m (35,998 sq ft) with garden centre, together with 11 units within the terrace totalling around 10,732 sq m (115,517 sq ft) and two stand alone restaurant units of sq m (3,634 sq ft) and 289 sq m (3,110 sq ft) respectively, the latter being a drive-thru. The site itself totals approximately 4.8 hectares (11.9 acres). Mersey Street () Garden Centre Parr Street Internally the units have been fitted out to the respective corporate specification of the occupiers and the eaves heights comfortably allow the installation of mezzanine floors as demonstrated by those currently in 8 of the units on the park. We estimate the first floor space extends to approximately 5,156 sq m (55,500 sq ft). Primary customer access is from the main roundabout junction via Wharf Street, which also runs along the southern boundary of the park and links with the industrial estate to the east. Knutsford Road (A5061) Wharf Street River Mersey This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. 11

12 RIVERSIDE RETAIL PARK Tenancies The property is let in accordance with the following schedule: Unit Tenant Fascia GIA sq ft Mezz sq ft Term (years) Lease Start Lease Expiry Next Review Passing Rent pa Passing Rent psf Comments 1 Homebase Ltd Homebase 35,998 9, , RR O/S 2 Sportsdirect.com Retail Ltd Sportsdirect.com 10,213 8, , Area stated in lease. 3 TJ Morris Ltd Home Bargains 12, , RR to OMV or 2% pa. Max rent at 1st review 181,069 pa and 2nd review 199,914 pa. Area stated in lease 4 Poundworld Retail Ltd Discount UK 12,618 12, , Area stated in lease. 1st review to OMV but capped at 227,124 pa 5 Dreams plc Dreams 12, , Area stated in lease. 6 Opus Homewares Ltd B&M Homestore 10, , Pets at Home Ltd Pets at Home 8,176 2, , Sleepmasters plc Bedshed 7,093 3, , Laura Ashley Ltd Laura Ashley 10, , Kingsbury Furniture Stores Ltd Harveys 11,100 5, , Guarantor Kingsbury Group plc 11 A Share & Sons Ltd SCS 11,109 5, , Guarantor SCS Upholstery plc 12 Next Group plc Next 10,075 9, , Pizza Hut (UK) Ltd Pizza Hut 3, , McDonalds Restaurants Ltd McDonalds 3, , ,259 55,545 2,601,421 SERVICE CHARGE TENURE Service charge information is available on request. The property is held Freehold. 12

13 RIVERSIDE RETAIL PARK COVENANT INFORMATION PLANNING We have set out below some recent account information together with the Delphi Ratings for the tenant and guarantors (where applicable). We would emphasise that 69.8% of the income is secured against covenants ranked with a Delphi Rating indicating very low risk and indeed 76.4% of the income is rated low risk or better. Tenant Date for Accounts Homebase Ltd Sportsdirect.com Retail Ltd Sales Turnover 1,457,903,000 1,477,990,000 1,420,013,000 1,278,328,000 1,410,466,000 1,029,207,000 Pre Tax Profits (Loss) 62,094,000 41,322,000 ( 302,371,000) 116,578,000 42,329,000 37,674,000 Total Current Assets 1,018,435,000 1,037,250,000 1,013,614, ,586, ,968, ,129,000 Delphi Rating % of Income % % Outline Planning Consent was granted by Warrington Borough Council (App. No. 93/31125) on 7th February 1995 for: development of 18,600 sq ft (GFA) food retail, 4,500 sq ft (GFA) fast food outlet and 136,900 sq ft (GFA) non food retail (excluding garden centre floor area) with associated servicing, car parking and new access road.. TJ Morris Ltd Poundworld Retail Ltd ,358, ,320, ,575, ,944,486 93,646,014 67,010,504 59,453,270 59,453,270 42,619,880 5,231,668 1,182,497 1,361, ,278,599 93,088,294 71,870,423 28,444,380 14,646,276 10,886, % % Thereafter full planning permission (App. No. 96/35226) was granted on 30th August 1996 for the development of restaurant/ fast food unit (McDonalds). Dreams plc Opus Homewares Ltd Pets at Home Ltd ,131, ,570, ,384,000 82,528,000 83,667,000 40,350, ,646, ,899, ,800,000 4,433,000 17,900,000 ( 3,013,000) 5,811,000 6,233,000 ( 1,215,000) 68,853,000 58,377,000 53,653,000 33,748,000 43,123,000 40,347,000 11,570,000 13,086,000 7,904, ,424, ,311,000 59,621, % % % On this basis we understand that the scheme has an open A1 non food planning consent which allows the sale of food from 18,600 sq ft of floorspace. Additionally there are no restrictions in relation to minimum unit size and the restaurant pods have an Laura Ashley Ltd ,716, ,278, ,279,000 31,309,000 20,588,000 19,462, ,852, ,961, ,922, % A3 consent. Steinhoff UK Group Properties Ltd Kingsbury Furniture Stores Ltd & Kingsbury Group Plc 84,387, ,284,000 92,634, ,000 ( 7,968,000) ( 2,960,000) 34,640,000 32,790,000 29,356, % Copies of the relevant documents are available on request. A Share & Sons Ltd ,158, ,863, ,125,000 1,087,000 ( 6,587,000) ( 8,369,000) 44,358,000 36,008,000 39,645, % Next Group plc ,400, ,800, ,000, ,300, ,000, ,600,000 2,313,500,000 2,027,000,000 2,080,030, % Pizza Hut (UK) Ltd McDonalds Restaurants Ltd ,174, ,346, ,026,000 1,184,462,000 1,129,957,000 1,075,535,000 ( 22,185,000) ( 12,122,000) ( 13,306,000) 157,211, ,048,000 77,743,000 18,878,000 20,129,000 17,065,000 61,406,000 64,099, ,017, % % 13

14 RIVERSIDE RETAIL PARK ASSET MANAGEMENT OPPORTUNITIES The scheme has seen significant asset management activity in the last months with lettings to Home Bargains, Dreams and Discount UK indicating good levels of tenant demand. The underlying open A1 planning consent with no minimum unit size restrictions and additional specified food sales offer excellent flexibility for further value add initiatives and we have identified a number of these possibilities below: n Settlement of the outstanding Homebase review from September n Development of a pod unit between the Homebase and Sportsdirect.com units of c. 1,750 sq ft subject to planning (plan available on request). n Introduction of food retailer to utilise available consent with relocation/consolidation of existing occupiers. n Introduction of further fashion/pharmaceutical operators. 14 n Acquisition of land adjacent to entrance of the site, behind the Pizza Hut unit, to improve configuration and parking arrangements.

15 RIVERSIDE RETAIL PARK PROPOSAl Offers are sought in the region of 35,000,000 subject to contract and exclusive of VAT, for the Freehold interest in this property. A purchase at this level would reflect an initial yield of 7.03%, based on purchasers costs of 5.80%. Additionally should an uplift be agreed on the outstanding Homebase review from September 2011 a further top-up payment from the Purchaser is expected by the Vendor. 15

16 CONTACT PATRICK KNAPMAN T: F: E: JUSTIN HOULIHAN T: F: E: Misrepresentation Act 1967 and Property Misdescriptions Act Cushman & Wakefield LLP for themselves and for vendors or lessors of this property whose agents they are, give notice that : 1 The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. 2 No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. 3 This property is offered subject to contract and, floor areas, measurements or distances given are approximate and unless otherwise stated, all rents are quoted exclusive of VAT. 4 Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. 5 Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Riverside Retail Park Warrington February 2012 Ref: