COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT

Transcription

1 COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT

2 KEY INVESTMENT CRITERIA Plymouth ranks 1st in the UK PMA competition index and has the highest spend retention of any retail centre in the UK. WAULT of 9.6 years to expiry, no breaks. Prominently situated at the Junction of the A38 and Plymouth road, the principal route into the city centre. Retail warehouse units let to ScS & Oak Furniture Land on new leases. Drive Thru unit let to McDonald s on a reversionary lease until Freehold. McDonald s Drive Thru reflects a low passing rent of psf. We are seeking offers in excess of 6,720,000, subject to contract and exclusive of VAT. A purchase at this level will reflect the following attractive yield profile: Net Initial Yield 7.47% Equivalent Yield 7.69% Reversionary Yield 7.73% (after allowing for purchaser s costs of 6.53%).

3 LOCATION BRISTOL CHANNEL BARNSTAPLE MINEHEAD EXMOOR NATIONAL PARK M5 BRIDGE WATER GLASTONBURY A37 A361 A361 A37 A303 Plymouth is located on the south coast of Devon, approximately 220 miles (382 km) south west of London, 121 miles (194 km) south of Bristol, 45 miles (72 km) south west of Exeter and 55 miles (88 km) east of Truro. Plymouth is located on the A38 dual carriageway, which connects with the M5 at Exeter and is the main thoroughfare to the south west. The city has a mainline railway station with a journey time to Bristol (Temple Meads) of 2 hours and to London Paddington of 3 hours. Exeter International is the nearest major airport approximately 48 miles (77 km) away. NEWQUAY TRURO FALMOUTH A30 1 A30 5 TAUNTON A361 WELLINGTON A303 A377 A30 EXETER LAUNCESTON EXMOUTH DARTMOOR A380 NATIONAL PARK A388 A38 TORQUAY A385 A38 PLYMOUTH PLYMOUTH DARTMOUTH PLYMOUTH ENGLISH CHANNEL M5 A30 A35 EXETER YEOVIL A37 DORCHESTER WEYMOUTH Plymouth is home to the largest operational naval base in Western Europe as well as being an important commercial shipping port. It is the largest conurbation on the south coast and is the principal commercial and administrative centre for Cornwall and South Devon. There is a strong service-based economy with major employers including Royal Mail, Land Registry, BBC and the University of Plymouth. Plymouth ranks 1st in the UK PMA Competition Index CATCHMENT Plymouth has a primary catchment population of 471,000 people. PROMIS estimate the shopping population of Plymouth to be 359,000 people, 21st of all 200 PROMIS centres in this respect. Plymouth is dominant within its catchment and is classified as a Regional Centre. It is ranked 1st in the UK PMA competition Index and has the least competition of any retail centre in the UK. This is further evidenced by the closest competing retail centres being Paignton (29 miles), Torquay (30 miles) and Exeter (45 miles). As a result, spend retention is one of the highest in the UK at circa 93%. Consumer spending in Plymouth is boosted by tourism and the student population, with an estimated 11.8 million domestic and foreign visitors to the city annually, contributing approximately 360 million to the city s economy. In addition, Plymouth has a student population of approximately 60,000 which is the fifth largest in the country and is estimated to contribute 100m to the city s retail economy annually.

4 SITUATION The subject property forms part of Coypool Retail Park which is made up of three separate retail warehouse clusters, located approximately 3 miles north east of the City Centre. Coypool Road is close to the junction of the A38 (also known as the Devon Expressway) and Plymouth Road, the two principal roads into the City Centre from the East. Coypool Retail Park is one of Plymouth s principal retail warehouse destinations with no current voids. Other occupiers at Coypool Road include Harvey s, Bensons for Beds, Jollyes and B&M. The former B&Q store is currently being redeveloped for occupation by Furniture World, Dreams and HBH Woolacott (Electrical Superstore). COYPOOL RD. TRIUM PHAL CRES WOODFORD CL. The subject property is located on the entrance into Coypool Retail Park and benefits from maximum prominence to Plymouth Road. COYPOOL RD. COYPOOL RETAIL PARK Coypool Retail Park is one of Plymouth s principal retail warehouse destinations with no current voids. LONGBRIDGE RD. PLYMOUTH RD. PLYMOUTH RD. COYPOOL RD. COYPOOL RD. PLYMOUTH RD. WOODFORD CRES. To be. WOODLAND AVE

5 MARSH MILLS PHASE 1 MARSH MILLS PHASE 2 PLYMOUTH GATEWAY DEVON EXPRESSWAY To be COYPOOL RETAIL PARK

6 DESCRIPTION The subject property consists of two units constructed in 1992 with a steel portal frame with brick elevations steel cladding. Both Units A & B benefit from an internal mezzanine built in A purpose built Drive Thru unit was built two years later and has since been extended due to the tenant over-trading from this location. ScS and Oak Furniture Land let on new leases, McDonald s rent is reversionary. Units A & B benefit from a service yard to the rear with dedicated access off Coypool Road. There are approximately 138 car parking spaces in total, a ratio of 1:241. The total site area is Ha / acres. PLANNING Original planning consent was granted November 1992 for the erection of two non-food retail units with associated parking, servicing arrangements and sewage treatment plant. Units A & B benefit from a wide bulky goods planning consent which include the sale of DIY goods, garden items, furniture, carpets and electrical items. In April 1994 consent was granted for the erection of a fast food restaurant and take away. Further planning information available on request. SERVICE YARD Plan for indicative purposes only.

7 TENANCIES & ACCOMMODATION Address Tenenat Trading Fascia Lease Start Lease Expiry Next Review GIA (sq ft) Passing Rent (pa) Passing Rent (psf) ERV (pa) ERV (psf) Comments Unit A A Share & Sons Ltd ScS 14/10/ /10/ /10/ , , , Internal mezzanine extending 11,968 sq ft (not rentalised)* Unit B JB Global Ltd Oak furnitureland 20/09/ /06/ /03/ , , , Internal mezzanine extending 12,327 sq ft (not rentalised). Rent at review to be capped at 2.5% per annum compounded.* Restaurant Premises McDonald s Restaurants Ltd McDonald s 29/09/ /09/ /09/2019 2,577 72, , year reversionary lease from 29/09/2019. Day 1 upward only rent review and 5 yearly thereafter. Total 33, , *Rent free to be topped up by the vendor. WAULT of 9.6 years RENTAL COMMENTARY The supply of retail warehouse accommodation in Plymouth is limited for a city of its catchment and consequently there have been few vacancies. Rents on Coypool Road have historically been at a discount to both Marsh Mills and Friary Retail Park, offering affordable options to bulky goods retailers. The two retail warehouse units within the subject demise were both let within the last 6 months and are in our opinion rack rented, but offer excellent future rental growth prospects as demonstrated by the recent letting to Dreams. DRIVE THRU UNIT The most recent open market rental evidence in the town are the pre-lettings on Plymouth Gateway to Costa on 1,800 sq ft at 50 psf and to KFC on 4,083 sq ft at 35 psf. Costa also occupy 1,775 sq ft on Phase 1 at Marsh Mills at a rent reflecting psf from November We are of the opinion that the McDonald s unit has an estimated rental value of 90,000 per annum based on 35 psf. The Dreams unit will extend to 5,000 sq ft, and is being carved out of the former B&Q store, of which the freehold has been acquired by a JV between HBH Woolacott (Electrical Superstore) and Furniture World for owner occupation. Dreams have agreed a new 10 year lease at a rent reflecting 18 psf net of 2 years at half rent.

8 CROWNHILL RETAIL PARK Ownership: TAMERTON Royal London FOLIOT Asset Management. Tenants Include: B&Q, M&S Simply Food, Pizza Hut and KFC. WOOLWELL RETAIL WAREHOUSE PROVISION WHITLEIGH CROWNHILL DERRIFORD LEIGHAM MARSH MILLS RETAIL PARK Ownership: (Phases I&II) Universities Superannuation Scheme. Tenants Include: Homebase, Wickes, PC World, Catpetright, DFS, Furniture Village, Halfords, Next Home, Bathstore.com, Carphone Warehouse and Costa. Coypool Retail Park is an established retail warehouse location, close to Marsh Mills and the newly consented Plymouth Gateway. The principal schemes in Plymouth are identified on the map and outlined below: MARSH MILLS RETAIL PARK This two-phase scheme has a restricted bulky goods planning consent and is regarded as Plymouth s principal bulky offering. Phase I & II extends to 157,339 sq ft. Rents range from psf (depending on size of unit) although due to no vacancies, there have been no recent open market lettings. PENNYCROSS CENTRAL PARK PEVERALL HARTLEY A38 EGGBUCKLAND CRABTREE COYPOOL RETAIL PARK PLYMPTON PLYMOUTH GATEWAY Restricted bulky goods consent for 55,000 sq ft. We understand rents range from psf on the larger units and psf on the food outlets. The scheme is due to open in Spring FRIARY RETAIL PARK PLYMOUTH SALTRAM HOUSE Located adjacent to the City Centre, this is an Open A1 nonfood park extending to circa 80,000 sq ft built in 1990 and subsequently redeveloped in part in 2013 and Rents on the park range from psf dependant on the size of the units. A374 SALTRAM HOUSE STONEHOUSE FRIARY RETAIL PARK Ownership: Plymouth City Council (acquired from AXA in November 2016 for 23.4 million / 6.7%). Tenants Include: Dunelm, Pets at Home, Poundland, Poundstretcher, Smyths Toys, Hobbycraft and Costa. CATTLEDOWN MOUNT BATTEN LAIRA BRIDGE RETAIL PARK Ownership: Columbia Threadneedle Investments. BILLACOMBE Tenants Include: PLYMSTOCK Carpetright/Go-Outdoors. PLYMOUTH GATEWAY RETAIL PARK Ownership: Ediston Real Estate (secured planning consent in August 2016). ELBURTON Tenants Include: Pre-lets agreed with Mothercare, Wren Kitchens, Tapi Carpets, Sofology, KFC and Costa. CROWN HILL RETAIL PARK A bulky good s scheme located further north of Plymouth City Centre which extends to 134,238 sq ft. LAIRA BRIDGE RETAIL PARK The scheme has Open A1 planning consent and extends to 58,844 sq ft.

9 COVENANT JB GLOBAL LTD ( ) Oak Furniture Land was founded in 2004 with an online platform and now trades from 75 stores throughout the UK. There are a further 25 stores planned for the next 2 years. Furthermore, there is planned expansion into the US this year moving from their current online platform to both bricks and clicks. A SHARE & SONS LTD ( ) SCS was established in 1894 as a family owned furniture store and has grown to 100 stores throughout the UK, with 36 concessions in the House of Fraser department store. In January 2015, ScS Group Plc joined the London Stock Exchange. The company released their half year results in January this year, with gross sales up 14.1% from the previous year. MCDONALD S RESTAURANTS LTD ( ) McDonalds is the world s largest chain of quick service restaurants, serving tens of millions of customers daily worldwide. There are over 1,200 stores in the UK alone with plans for a further 30 new stores per year, with the primary vehicle for expansion being Drive Thru restaurants. 30/09/ /09/ /09/ /07/ /07/ /07/ /12/ /12/ /12/2013 Turnover 239, , ,543 Pre-tax Profit 6,506 11,032 7,095 Tangible Net Worth 8,750 14,250 11,869 D&B Rating 3A 2 Turnover 317, , ,206 Pre-tax Profit 11,736 4,488 5,000 Tangible Net Worth 36,426 33,312 25,089 D&B Rating 5A 2 Turnover 89,566 87,383 87,333 Pre-tax Profit 304,122 48,958 37,871 Tangible Net Worth 109, , ,129 D&B Rating 5A 1

10 TENURE The property is owned freehold. VAT It is understood the property is elected for VAT and will be treated as a Transfer of a Going Concern. EPC A full copy of EPC s are available upon request. PROPOSAL We are seeking offers in excess of 6,720,000, subject to contract and exclusive of VAT. A purchase at this level will reflect the following attractive yield profile: Net Initial Yield 7.47% Equivalent Yield 7.69% Reversionary Yield 7.73% (after allowing for purchaser s costs of 6.53%). FURTHER INFORMATION For further information please contact: Fiona Nichols T: M: fiona.nichols@gcw.co.uk Oli Horton T: M: oliver.horton@gcw.co.uk Alex Matthews T: M: alex.matthews@gcw.co.uk 7-10 Chandos Street London W1G 9DQ T: F: Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC Registered office: 30 City Road, London EC1Y 2AB. GCW: April Produced by Barbican Studio T: