VICTORIA ROAD RETAIL PARK

Transcription

1 VICTORIA ROAD RETAIL PARK VICTORIA ROAD, SOUTH RUISLIP, HA9 0AJ ENTER

2 Executive THE OLD DAIRY DEVELOPMENT Executive The subject property is prominently located on Victoria Road in South Ruislip, within the affluent London Borough of Hillingdon in West London. Approximately 13 miles west of Central London. Extensive and affluent catchment with 226,000 people living within 10 minutes of the scheme. Situated immediately adjacent to The Old Diary development, comprising a new Asda foodstore, a multiplex Cineworld Cinema and 5 restaurants (Frankie & Benny s, Chiquito, Nando s, Bella Italia and Mimosa) due to open in early The development also includes 132 new residential units. Within close proximity to an established retail warehouse location with in excess of 300,000 sq ft of accommodation. Comprises a recently refurbished retail warehouse development providing 2 units extending to a total of approximately 40,525 sq ft GIA. Wide A1 planning consent (including part food). Let to Aldi Stores Ltd and B&M Retail Ltd 5A1 covenants - on 15 year leases with no break options. Let at relatively low passing rents of between and per sq ft. The Aldi lease benefits from 5 yearly RPI index linked rent reviews with collar and caps at 1.0% and 3.0% per annum. Freehold. We are instructed to seek offers in excess of 14,850,000, subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.25% (assuming purchasers costs at 6.73%).

3 Executive M40 Slough Chorleywood Watford Borehamwood Barnet M1 A1 M25 M25 Rickmansworth Harefield M4 A40 Uxbridge A30 Northwood Ruislip Hayes West Drayton Heathrow Airport A312 Pinner A316 Harrow A40 Greenford M4 A4 Hounslow Stanmore Wembley Twickenham A41 SOUTH RUISLIP A406 A406 Richmond Location Edgware Brent Park A40 A3 A205 A41 A214 A406 A1 A501 LONDON South Ruislip is a densely populated residential suburb situated in the London Borough of Hillingdon, approximately 13 miles west of Central London. The general area benefits from excellent communications, with the A40 (Western Avenue) being situated less than a mile to the south, providing direct access between Central London and the M25/M40 (Junction 1A), being approximately 7 miles directly to the west. The area benefits from excellent public transport links, with South Ruislip railway and underground station being situated to the south of the subject property. This provides access into Marylebone railway station in Central London and to the Central Line of the London Underground leading into both the West End of London and the City. A10 A10 A10 A2 A13 A406 A12 10 min drive time 15 min drive time A min A205 drive time The subject property benefits from an extensive catchment population with circa 226,000 people living within a 10 minute drive-time, increasing to in excess of 500,000 people within a 15 minute drive-time. The population within the 10 minute drive-time catchment is forecast to increase by 6.2% by 2020 and by 11.4% by % of year olds are in full time employment, above the average of 69.6%, with many based in Central London. There is a high proportion of younger working age adults with 30.3% between 25 and 44, 11% above average. Conversely, just 17.3% of catchment is aged 60 or above, 23.8% below the average. The mean annual income in the 10 minute drive-time catchment is 41,615, which is 14.2% above the CACI base average. 40k to 60k 20% above average Catchment = 21.0% Average = 17.5% 60k to 80k 29% above average Catchment = 10.6% Average = 8.2% 80k to 100k 33% above average Catchment = 5.6% Average = 4.2% Acorn Group Category No of people % of Catchment 100k+ 30% above average Catchment = 5.2% Average = 4.0% % versus CACI base average Affluent Achievers Executive Wealth 30, Rising Prosperity Career Climbers 19, Comfortable Communities ly Stretched Urban Adversity Successful Suburbs Steady Neighbourhoods 45, , Modest Means 6, Striving Families 5, Young Hardship 5, Difficult Circumstances 7,

4 Victoria Road Retail Park Situation Aerial Description Accommodation V I C T O R I A ROA D, S O U T H R U I S L I P H A 9 0 A J TH EF A FAIR WAY THE OR IA R ROAD CT TO VIC AD RO A I R ND LD E FIE N VI E IV DR AD RO IO AT ST CH OA R P AP DR D EN South Ruislip NG LO LK WA NS AD RO IA Clearly, the completion of this development will substantially enhance the immediate location to the benefit of the subject property. NG LO IVE DR EE QU OR CT VI The immediate vicinity of the subject property is largely residential accommodation. Adjacent to the scheme and sharing the same access road off Victoria Road is The Old Dairy development being undertaken by Citygrove Leisure, which has been funded by Standard Life. The development is to comprise an Asda foodstore (80,000 sq ft), a new 11-screen multiplex Cineworld cinema and 5 restaurants, which are let to Frankie & Benny s, Chiquito, Nando s, Bella Italia and Mimosa. The development also includes 132 new residential units. Construction is well advanced and the scheme is due to open in early NG LO LK WA NS SUBJECT PROPERTY AY IRW EE QU The subject property is situated to the south of Victoria Road and to the west of a significant concentration of out-of-town retail, fronting the same thoroughfare. Retailers include Argos, Homebase, Pets at Home, Oak Furniture Land, DFS, Currys/PC World, Bensons For Beds, Wickes, TK Maxx, Halfords, Furniture Village, Carpetright, a Sainsbury s foodstore (60,000 sq ft) and petrol filling station. This is generally acknowledged as one of the strongest out-of-town retail destinations in Greater London. LD FIE Situation OA D

5 Key 1 Subject Property 2 The Old Dairy Development Asda, Cineworld, Nando s, Frankie & Bennys, Mimosa, Bella Italia, Chiquito Sainsburys 4 South Ruislip Station 5 Brook Retail Park Pets at Home Oak Furnitureland 6 Victoria Retail Park Homebase, Argos Brantano Currys PC World, DFS 8 Bensons for Beds 9 Wickes 10 Ruislip Retail Park Carpetright, Halfords, TK Maxx, Furniture Village 3 4

6 Description The subject property was formerly a DIY store and additional unit, however, in 2015, it was subject to a major refurbishment to provide the current configuration. This now provides an attractive and modern development occupied by Aldi and B&M and provides a total ground floor GIA of approximately 40,525 sq ft. To the front of the scheme is a tarmacadamed customer car park providing approximately 196 spaces, equating to an overall ratio of 1:207 sq ft. The refurbishment works undertaken included the front elevations being substantially improved, with the provision of significant glazing and new signage features. In addition, the original garden centre was removed and the car park re-laid. Upon completion of the adjacent development, the subject property will benefit from pedestrian access directly from Victoria Road, with vehicular access is provided via a roundabout off Victoria Road. This junction will also be used to access The Old Dairy development. Service vehicles also use this access road, which then leads to the rear of the property into a dedicated service yard located to the rear of the units. In summary, the subject property provides a highly attractive retail development built in accordance with both modern retailer and investor requirements.

7 Accommodation The property provides the following approximate accommodation: Unit Tenant GIA (sq ft) GIA (sq m) A Aldi 16,225 1,507 B B&M 24,300 2,258 Total 40,525 3, customer car parking spaces, creating a ratio of 1:207 sq ft (1:19.2 sq m). Planning The property is subject to planning consents which allow the sale of the following goods: Unit A Food and other convenience goods or a wide range of specific bulky goods, together with sports goods and children s clothing and footwear. There is a restriction that the net sales area shall not exceed 1,075 sq m. Unit B A wide range of specific bulky goods, together with sports goods and children s clothing and footwear. In addition, ancillary sales of food and drink from no more than 10% of the floor area, toiletries from no more than 5% of the floor and pet products, including food for non-human consumption, from no more than 5% of the floor area, unless prior written consent is obtained from the Local Planning Authority.

8 Aldi Stores Limited Aldi are a leading global supermarket chain, with approximately 10,000 stores spread across 18 countries. Since their entry into the UK market in 1990, they have rapidly expanded, and currently have 652 stores, and they plan to open a further 70 this year. Their stated goal is to have 1,000 stores in the UK by Aldi have benefited significantly from the changing patterns of consumer behaviour in the food sector and their disruptive and highly efficient business model has seen them grow their market share significantly at the expense of the major food retailers, resulting in substantial growth in sales and profits. Aldi Stores Limited have a Dun & Bradstreet rating of 5A1. Their most recent accounts are summarised below: Year to 31/12/13 (000 s) Year to 31/12/14 (000 s) Turnover 5,271,853 6,893,257 Profit/loss 260, ,584 Net worth 1,817,950 1,948,445 B&M Retail Limited B&M was founded in 1978 and bought by the Arora brothers in December Since then, they have grown from a company of 21 stores, and successfully listed on the London Stock Exchange in 2014 and has continued to expand. They have become one of the UK s leading variety retailers operating from in excess of 500 stores throughout the UK and employing over 22,000 staff. The business also operates with different brand names in Germany. The company has a current market capitalisation of approximately 2.6 billion. B&M Retail Limited have a Dun & Bradstreet rating of 5A1. Their most recent accounts are summarised below: Year to 29/03/14 (000 s) Year to 28/03/15 (000 s) Turnover 1,509,132 1,526,181 Profit/loss 123, ,800 Net worth 281, ,599

9 The property is let in accordance with the following: Unit Tenant Trading as GIA (sq ft) Lease Start Expiry Date Next Rent Review Current Rent (Per Annum) Rent (per sq ft) Comment Unit 1 Aldi Stores Ltd Aldi 16,225 25/01/ /01/ /01/ , month rent free period. RR to RPI between 1% and 3% pa. Unit 2 B&M Retail Ltd B&M 24,300 08/02/ /02/ /02/ , month rent free period. RR capped at 112%. SC cap of 22,080 pa (increased by RPI). TOTAL 40, ,

10 Management The lease to B&M Retail Ltd includes a cap on the amount of service charge payable by the tenant, being set at 22,080 per annum, subject to annual increases in line with RPI. The service change budget is currently being reviewed and it is envisaged that the cap will lead to a shortfall. Further details are available. The Secretary of State for Transport has been negotiating rights to potentially divert services and gain access over the service road and yard to assist in building the HS2 rail link. A draft Settlement Deed is currently being negotiated. Further details to be provided on request. Tenure The site delineated in red below is held freehold. This is provided for indicative purposes only. Victoria Road Rental Whilst the leases commenced in the earlier part of 2016, both lettings were negotiated in Since this time, we believe the market for both food and non-food retail units in good locations in the Greater London area have increased due to an imbalance between tenant demand and supply of suitable accommodation. Prime rents on the retail warehousing on Victoria Road to the south west of the subject property have historically been significantly higher than those achieved on the lettings to B&M and Aldi, peaking at between per sq ft. Whilst this general location may have been considered as stronger than the subject property, we would suggest that this will no longer be the case following the opening of The Dairy leisure and retail development. The shortage of good quality units in the Greater London area has, we believe, led to a general increase in rents, and we would highlight the following transactions which illustrate this: 1. Asda Mile End Road Retail Park In September 2015, Asda took a lease on a unit of circa 15,000 sq ft at a headline rent of per sq ft. 2. Lidl Plough Lane Retail Park We understand that Lidl has signed a lease to take a circa 15,000 sq ft unit at a headline rent in excess of per sq ft. 3. Dunelm Friern Bridge Retail Park We understand that Dunelm recently agreed to take a circa 20,000 sq ft unit at a headline rent equating to per sq ft. We therefore feel that if the units were marketed today, it is likely that rents in excess of those which are currently being paid would be achieved.

11 VAT The property has been elected for VAT. It is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC). Proposal Our clients are seeking a price in excess of 14,850,000 (Fourteen Million, Eight Hundred and Fifty Thousand pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.25% (assuming purchaser s costs of 6.73%). Further Please contact: Wilkinson Williams LLP Heathcoat House 20 Savile Row London W1S 3PR Miles Marten Tel: Mobile: m.marten@wilkinsonwilliams.co.uk Jack Lloyd Tel: Mobile: j.lloyd@wilkinsonwilliams.co.uk MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. September Wilkinson Williams LLP give notice that some of the partnership members have a financial interest in this property. Designed and produced by Creativeworld Tel: