RETAIL WAREHOUSE INVESTMENT. Dunelm Store EASTERN AVENUE, SHOREHAM-BY-SEA, BN43 6PD ENTER

Transcription

1 RETAIL WAREHOUSE INVESTMENT Dunelm Store EASTERN AVENUE, SHOREHAM-BY-SEA, BN3 PD ENTER

2 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD Shoreham-by-Sea is well located and easily accessible via the A5 to Worthing 8 miles west and Brighton,.5 miles east. The town benefits from an affluent catchment with retail expenditure at,0 million, significantly above the PMA average of million. Retail warehousing is very limited within the catchment area, with many of the retailers in the area trading well here as a result. The subject property is located in a prominent position in close proximity to a B&Q and Halfords unit. The unit totals,780 sq ft, with car parking spaces. The property is well let to the D&B rated 5A covenant of Dunelm (Soft Furnishings) Limited with years unexpired. Bulky goods planning consent. The current rent is low compared with other rents in the area, at 30,00 per annum, reflecting.55 per sq ft, with good prospects for an uplift at the 07 rent review. Potential to re-gear the lease with Dunelm. Potential to re-gear the lease with Dunelm We are instructed to seek offers for the above property at 5,05,000 (Five Million and Fifteen Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of.75%, based on purchaser s costs of.5%.

3 Harlow Slipway m LB 3 Sand & Mud Builders Yard Shoreham-by-Sea Station 8 Garage 73 to 75 S Gantry Fn 3.5m Garage 37 to Tk WB LB Play Area Skatepark 3.7m Tank 3 to Works CCLW Shelter Warehouse 35 5 Conveyor 5.m 5.m 5.7m LC Shelter.0m Miniature Rifle Range Hall Hall Tank Conveyor.7m MLW Tank Conveyor WB MP 5.5 LB.5m Track 33 Works El Sub Sta Superstore Warehouse Tanks El Sub Sta Warehouse Tanks Factory Tank High Wycombe Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD Amersham Watford A Romford Brentwood Basildon Southend-on-Sea M LONDON 7 30 Woolwich 3 3 Tilbury Richmond Windsor HEATHROW Dartford 3 Staines Kingston upon Thames Swanley Croydon Sutton M0 3 Epsom 0 3 Woking M 5 5 Leatherhead 7 M5 Sevenoaks 8 Oxted Guildford Dorking Tonbridge M3 Godalming GATWICK East Grinstead Tunbridge Wells Crawley 0 A3 A3 A7 A3 Haslemere A Horsham A A A3 A3 A A05 A Haywards Heath A A0 A3 A A A Uckfield A A A Crowborough A8 Chatham Situation The property is situated in a highly visible position on an elevated site overlooking Eastern Avenue, in close proximity to its junction with the A5 Brighton Road, the main route running through the town and linking Shoreham with Worthing, Hove and Brighton. The town centre and train station are located 0. miles west of the subject property. On the opposite side of Eastern Avenue is a McDonalds, a 5,55 sq ft Halfords unit and a 3, sq ft standalone B&Q unit. This cluster of retail warehousing forms the only retail warehousing in the vicinity. The Council car park adjacent to the subject property is part of a potential development site, which includes a new Civic Centre. Any redevelopment here is likely to be a mixed use scheme and should further improve the vicinity. 3 ROSSLYN ROAD 3 ADUR DRIVE Allotment Gardens A A83 Chichester A7 Littlehampton Worthing Bognor Regis Shoreham-by-Sea A7 Lewes Hove Brighton A A7 Seaford A Newhaven A Hailsham Eastbourne A Hastings a a ROSSLYN AVENUE 87 3 GORDON AVENUE Army Atc EASTERN CLOSE 78 GORDON ROAD CORBYN CRESCENT 8 30 Shoreham-by-Sea is an affluent seaside town and port in West Sussex, 8 miles east of Worthing,.5 miles west of Brighton and 58 miles south of London. Glyndebourne Court Surry Court to 3 to 0 to 5 to Glyndebourne Court SL HAM ROAD ED Bdy to 3 EASTERN AVENUE Dolphin Mews DOLPHIN ROAD CORBYN CRESCENT The town benefits from excellent road links, the A5 links the town to Worthing and Brighton. The A7 runs east west of the town, connecting to the A3 to the east which in turn links to the M3 and to Gatwick Airport. To the west, the A7 connects to the A which leads to the M5, and to the A3(M) and the M7, 3 miles west. Pashley Court 38 to Mercury House PH 38 Civic Centre EASTERN AVENUE HUMPHREY'S GAP Coastguard Lookout Ham Business Centre The Ham BRIGHTON ROAD Shoreham has a mainline railway station with direct trains running regularly to a number of destinations including Brighton (5 minutes), Portsmouth (57 minutes) and London Clapham Junction ( hour minutes). Gatwick Airport is located 3 miles north and is the second largest airport in the UK, serving over 0. million passengers annually. A B C Riverside Business Centre Builders Yard Free Wharf New Wharf Lennards Wharf Travelling Crane MLW MLW 0m 50m 00m 50m West Arm ED & Ward Bdy River Adur Ordnance Survey Crown Copyright 0. All rights reserved. Licence number Plotted Scale - :7 Shoreham Harbour

4 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD Shoreham-by-Sea forms part of the Brighton conurbation, along with Hove. Brighton s primary catchment area comprises 5,000 people, with an estimated shopping population of 3,000 people ranking it th out of the top 00 PMA Retail Centres. CACI estimate there are 8,37 people living within a 0 minute drive time of the subject property, extending to 30,8 people within a 0 minute drive time. Brighton is a seaside resort of considerable character, an important tourist destination, retirement town and conference centre. The area attracts over 8 million visitors each year with total tourism expenditure being 780 million in 0. It is also the most popular UK seaside destination for foreign tourists with 0,000 visitors in 03. The Brighton catchment population has above average affluence with retail expenditure being significantly above the PMA average of,0 million. Per capita in-store comparison expenditure in 05 was,7 compared with the PMA average of,00. Retail warehouse expenditure per capita in 05 was also substantially above average at 57 in Brighton compared with 53. The financial sector is an important source of employment in Brighton reflecting the presence of large organisations including Lloyds, Legal & General and American Express, which has its European headquarters in the city. Warranty provider, Domestic & General, has an office in the city. In November 0, the company announced plans to recruit 0 additional staff at its insurance call centre. Major employers in the Public Sector include the University of Brighton, University of Sussex, Brighton and Sussex University Hospitals NHS Trust, Sussex Police and the City Council. Brighton also plays host to a sizeable creative industry. In particular, the city s New Media cluster (digital, computerised or networked information and technology) has the highest concentration of digital companies in the UK; Disney operates two of its companies - Club Penguin and Black Rock Studio - from the city. Brighton has one of the highest rates of business start ups in the country. The Greater Brighton City Deal was signed in March 0 with the aim of driving growth through investment in infrastructure and training to attract creative and technological businesses to the area. The deal aims to deliver more than 0,000 jobs over the next few years.

5 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD Retail warehousing is very limited in Shoreham-by-Sea with the subject property being in one of the only retail warehouse pitches for the town. The surrounding retail warehousing comprises standalone units let to Halfords and B&Q.. miles north of the subject property, close to the A7, is the Holmbush Centre which is owned by Tesco Stores. It comprises a,500 sq ft Tesco Extra unit and a 0,300 sq ft Marks & Spencer GM store. In close proximity is a 3,7 sq ft Next Home and Garden store, the first of its kind, and it was due to the success here that the retailer has rolled out the format across the country. Retail warehousing in the general Brighton and Hove area is also limited, with overall provision per household of retail warehouse floorspace below the PMA average. Brighton itself has main retail parks, Pavilion Retail Park and Brighton Retail Park. Pavilion Retail Park is located north of Brighton on the A70 with an open A consent and occupied by Halfords and B&Q. The scheme is being redeveloped to include,500 sq ft of space which is under offer to national retailers. A7 UPPER SHOREHAM RD A5 Marks & Spencer, Tesco Dunelm B&Q, Halfords SHOREHAM BYPASS BRIGHTON ROAD A70 A7 NEXT Home & Garden SHOREHAM - BY - SEA A3 OLD SHOREHAM ROAD ALBION STREET Currys PC World SHOREHAM BYPASS HANGLET ON ROAD KINGSWAY DEVIL S DYKE RD Homebase & Carpetright NEVILL ROAD Barker & Stonehouse HOVE SACKVILLE ROAD Furniture Village A70 Oak Furniture Land A7 DYKE ROAD AVENUE LONDON RD LONDON RD Goldstone RP: 8,300 sq ft TK Maxx, DFS, Toys R Us, Harveys, Pets at Home, Burger King, Nando s, Wickes & Staples KINGSWAY A5 WEST ST A7 Brighton RP:,35 sq ft M&S Simply Food, Argos & Next LONDON RD A70 A70 LEWES ROAD A7 Hollingbury RP: 35,000 sq ft Matalan & Brantano MARINE PARADE LEWES ROAD Pavilion RP: 7,5 sq ft B&Q and Halfords BRIGHTON A5 Brighton Retail Park totals,3 sq ft of open A non-food consented space, let to M&S Simply Food, Next and Argos. Adjacent to this is Hollingbury Retail Park, a unit scheme occupied by Matalan and Brantano. In Hove, located on the Old Shoreham Road, is Goldstone Retail Park, totalling 7,000 sq ft of open A non-food consented space with occupiers including Toys R Us, Pets at Home, DFS and TK Maxx. There are a number of solus units in the vicinity. A plan of the retail warehousing in the area is shown opposite.

6 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD The subject property provides a standalone unit of,780 sq ft GIA. Internally, the unit is fitted out to Dunelm s specification and benefits from a trading mezzanine floor. The store is being refitted next year and will include a coffee shop which proves popular with Dunelm s customers and helps increase dwell time. The store serves a large catchment area, incorporating Hove, Brighton and parts of Worthing, and extending as far north as Crawley and East Grinstead. Dunelm have limited stores in the area; Rustington is their next closest store to the west, located 3. miles away. Eastbourne is the closest store to the east at 3.8 miles and there is a long drive time between the subject property and the Dunelm to the north in Croydon; miles. Car parking is located to the front of the subject property providing approximately spaces, equating to a ratio of : 50 sq ft. Windsor 3 Woking Guildford 3 0 Leatherhead Godalming Dorking Croydon 8 7 M3 M5 Oxted East Grinstead M0 3 M 5 Sevenoaks Tonbridge Tunbridge Wells Servicing is situated at the front of the unit on the far western elevation. Both vehicular and servicing access and egress to the scheme is off Eastern Avenue. The total site area is.5 acres, providing a low site cover of 3.5%. 0 Haslemere Rustington Horsham 3. MILES MILES Haywards Heath Shoreham-by-Sea Lewes 3.8 MILES Crowborough Uckfield Hailsham Eastbourne The subject property provides a standalone unit of,780 sq ft GIA.

7 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD The property is let to Dunelm (Soft Furnishings) Limited on a full repairing and insuring lease from 8 June 007 for a term of 5 years, expiring 7 June 0. The current rent per annum is 30,00, reflecting.55 per sq ft. Rent reviews are 5 yearly with the next review on 8 June 07. The review is upwards only but to the lower of open market rent and 07,85 per annum, (. per sq ft). Tenure The property is held freehold with the site area delineated in red on the plan above.

8 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD ERV Dunelm are paying a rent reflecting.55 per sq ft with the next review due in June 07. We believe the current rent looks low when compared to other properties in Shoreham, Brighton and Hove. Furthermore this is one of the few places in the country where, due to the limited supply coupled with high tenant demand, rents have increased over the past few years, and there have been uplifts achieved at rent review, as demonstrated below: Address Tenant Transaction GIA (sq ft) Effective Date Rent (per sq ft) Comments The Pavilion Centre, Hove Halfords New Letting 7,500 Jun Re-location to a new unit on the scheme. 8-8 Shoreham Road, Hove Barker & Stonehouse Assignment & lease re-gear Old Shoreham Road, Hove Currys PC World New letting of extended building 0,000 Feb-.00 Former DSG assigned to Barker & Stonehouse and the lease re-geared 8,80 Oct Existing unit is being refurbished and extended. The new lease was agreed October 05 with occupation to occur in circa December 0. Brighton Road, Shoreham B&Q Lease renewal 3, Jul New 0 year lease with 5 year break clause Hollingbury Retail Park, Brighton Brantano Rent Review 0,000 Jun Previous rent reflected.50 per sq ft. Hollingbury Retail Park, Brighton Matalan Rent Review 5,000 Jun Previous rent reflected 7 per sq ft. Goldstone Retail Park, Hove TK Maxx New Letting 0,000 Nov New letting netting back to 8.05 per sq ft. Upper Shoreham Road, Shoreham Next Home & Garden New Letting 3,7 Sep New letting of former Homebase. First Home & Garden store. Planning The property was originally granted permission for a retail warehouse unit in 85, with the permitted use being for the sale of non-food durable goods, with the exception of DIY products. The original permission stated a maximum floorspace of 3,8 sq ft, however this was subsequently varied to allow a further 700 sq ft in. Further details are available on request. Tenant Covenant Dunelm was established over 30 years ago by Bill and Jean Adderley, and the company still remains partially owned and run by the family today. Dunelm is now one of the UK s leading home furnishing retailers, with over 30 stores across the UK employing in excess of,500 members of staff. The retailer benefits from a 5A covenant, as rated by Dun & Bradstreet. We set out below a summary of their most recent company accounts: Tenant Dunelm (Soft Furnishings) Ltd Year Ending Sales Turnover (000 S) Pre Tax Profit (000 S) Net Worth (000 S) 0/07/05 835,805 8, 88,07 8/0/0 730,5,7 3,08 D&B Rating 5A

9 Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN3 PD EPC The unit has an EPC rating of B7. VAT The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction will be treated as a TOGC. Proposal We are instructed to seek offers for the above property at 5,05,000 (Five Million and Fifteen Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of.75%, based on purchaser s costs of.5%. Ellie Kirkby Tel: Mob: e.kirkby@wilkinsonwilliams.co.uk Paul Wilkinson T: M: E: p.wilkinson@wilkinsonwilliams.co.uk Wilkinson WIlliams Heathcoat House, 0 Savile Row, London, WS 3PR MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows:. 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.. 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.. 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.. 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. s 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. June 0. Designed and produced by Creativeworld Tel: