PRIORY FIELDS RETAIL PARK TAUNTON, TA1 1QS

Transcription

1 PRIORY FIELDS RETAIL PARK TAUNTON, TA1 1QS ENTER

2 Taunton is the main administrative and retail centre for Somerset, and enjoys excellent road communications, being close to the M5 motorway. The town benefits from an affluent and captive catchment population with higher than average levels of retail spend per capita. The property is situated in a highly visible location, which is to be further improved by a new road link. The scheme is well let to the A rated (D&B) covenants of Dunelm, Carpetright, Harveys, HomeSense, Pets at Home and Wickes, and benefits from an attractive average income weighted unexpired lease term of marginally under 14 years, inclusive of breaks. Significant asset management potential, including downsizing Wickes to create 3 further units. Heads of Terms are agreed with Hobbycraft and Dreams, subject to planning, for two of these. Reversionary potential, as demonstrated by Heads of Terms agreed with Hobbycraft and Dreams, at per sq ft. We are instructed to seek offers for the freehold interest in the above property of 28,333,000 (Twenty Eight Million, Three Hundred and Thirty Three Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50%, based on purchaser s costs of 5.80%.

3 LOCATION Taunton is the principal retail and administrative centre for the county of Somerset. The town is located in the South West of England, and enjoys excellent road communications, including the A38, which links the town with junction 25 of the M5 motorway. The M5 provides access to both Bristol and Exeter, 44 miles north east and 36 miles south west of Taunton respectively. Taunton also benefits from good rail links with the main railway station providing regular services to destinations including Exeter (44 minutes), Bristol (31 minutes), and London Paddington (1 hour 50 minutes). Taunton has a primary catchment population of 331,000 people, with 72,035 and 146,841 people living within a 10 and 20 minute drive time of the subject property respectively. Due to the lack of proximity to towns with a comparable or better retail offer, it is considered Taunton benefits from a captive catchment. Taunton has a relatively affluent population as demonstrated below: Affluence Indicators Taunton PMA Retail Top 200 Centre Average Car ownership of 2+ cars 36% 30% (% of households) Owner occupiers (% of households) 74% 70% Per capita in-store comparison 2,319 2,301 retail expenditure (2010) Per capita retail warehouse expenditure (2010) Unemployment claimant count 2.5% 3.9% (September 2011) 39 ridge A38 Bude Fowey 5 Holsworthy Launceston Looe A388 A388 0 Liskeard A387 A Port Einon Ilfracombe Saltash Torpoint A418 A3123 Bideford A386 A386 A379 Lynton Great Torrington Okehampton Tavistock Barnstaple A Maesteg Lynmouth Ashburton Buckfastleigh Plympton Port Talbot PLYMOUTH Porthcawl Salcombe A381 A A379 South Molton A385 A38 Totnes Kingsbridge A Cowbridge Tiverton Crediton EXETER M5 A EXETER A Risca M Newport 23 Caldicot M4 M Avonmouth Caerphilly M4 20 Congresbury Westonsuper-Mare 21 Burnham-on-Sea Minehead Watchet Dartmouth Pontypridd Bridgend Wellington Honiton A38 Seaton Sidmouth Exmouth Dawlish Teignmouth Newton Abbot Torquay Paignton TAUNTON Brixham Barry CARDIFF Bridgwater 25 Clevedon A372 Langport Chard Axminster Lyme Regis Chepstow Ilminster A35 M5 A A38 BRISTOL Cheddar Glastonbury Street Wells 3 88 A356 Crewkerne Bridport A368 A37 A37 A37 Yeovil M32 A371 A4 A A359 A357 M4 A BRISTOL Bath A46 A362 A420 Frome Shepton Mallet Wincanton Sherborne A36 Tetbury 3 A352 A357 A433 Corsham A350 Shaftesbury Blandford Forum Fortuneswell A354 Dorchester Weymouth Tr W W A31 A3

4 SITUATION The subject property is situated in an accessible and highly visible location. It lies just to the eastern edge of the town centre, fronting the roundabout junction of the A38, the main route into the town linking to the M5, and the, which forms a bypass around Taunton. There are currently proposals to improve the road link between the area around the subject property and the western part of the town and these are detailed further under Compulsory Purchase Order. The majority of retail warehousing in Taunton is subject to a bulky goods planning consent, albeit the subject property benefits from the widest bulky consent of all the schemes in the town. Despite this, there is a relative under supply of retail warehouse floor space per household for furniture / furnishing goods (source: PMA), which are provided for on the subject property. We summarise the competing schemes in the town as follows: Taunton Retail Park Situated close to junction 25 of the M5 and totalling some 95,000 sq ft, this scheme is anchored by Homebase, and is arranged in an L shaped terrace. Further occupiers include PC World, Comet, Currys and Staples, and there is also a standalone A3 unit let to Pizza Hut. Rents for the smaller units are circa per sq ft. Deane Retail Park This scheme is located opposite Taunton Retail Park and is anchored by a Sainsbury s foodstore of circa 78,000 sq ft. The park comprises 34,600 sq ft of bulky goods accommodation occupied by Mothercare, Halfords and Bensons Beds / Ponden Home. Rents here are circa per sq ft. GREENWAY RD 27 STAPLE G R O VE RD A38 WELLINGTON RD PARKFIELD RD TESCO KINGSTON RD Proposed Northern Inner Distributor Road CASTLE ST TRULL RD MORRISONS WOOD ST HIGH ST STATION RD VIVARY PARK PRIORSWOOD RD A 3027 EAST ST A38 EAST REACH A38 MARY ST PRIORY BRIDGE RD SOUTH RD EASTWICK RD LYNGFORD RD SOUTH ST Opposite Deane Retail Park, and accessed separately, is a standalone unit let to B&Q totalling 47,400 sq ft let off per sq ft. St Johns Retail Park Located just to the east of the subject scheme but in a solus position off the A38, is this 40,000 sq ft bulky goods scheme let to Dreams, Ideal Homes Furniture and DFS. The anchor DFS store is let off per sq ft. CHEDDON RD PRIORY AVE TAUNTON TOWN CENTRE PRIORY FIELDS RETAIL PARK A538 OBRIDGE VIADUCT A3259 VENTURE WAY ST JOHNS RETAIL PARK A38 TONEWAY WORDSWORTH DR CREECHBARROW RD HAMILTON RD HOLWAY RD ASDA ROMAN RD RIVERSIDE LEISURE PARK A38 TONEWAY BRIDGWATER RD BLACKBROOK WAY HERON GATE TAUNTON RETAIL PARK M5 TONEWAY A38 BRIDGWATER RD B&Q HYDE LANE DEANE RETAIL PARK JCT 25 SAINSBURY S RUISHTON LANE

5 DESCRIPTION DESCRIPTION The subject property was redeveloped in 2003 and provides a modern purpose built retail warehouse scheme arranged in a terrace of 6 units totalling 110,350 sq ft GIA, with customer car parking at the front. The scheme is of steel frame construction, with the main elevations clad in attractive masonry, with micro rib cladding panels above. The terrace is arranged in a staggered formation and there are canopy entrance features on each of the units, with tenant s signage displayed above. Internally, the units are fitted out to the individual tenant s specification. Units 1, 3 and 4 benefit from trading mezzanine floors, while the rest of the units have sufficient eaves height (6 metres) to accommodate the installation of mezzanines, subject to planning. Unit 6, occupied by Wickes, has an external garden centre area. The units are of standard dimensions and Unit 6 in particular would be easily sub-divisible. There is a tarmacadam surfaced car park, which provides 396 spaces, giving a car parking ratio of 1:279 sq ft. Situated to the rear of the units is a dedicated service yard, which is accessed separately and segregated from the customer car park. We calculate the site area extends to approximately 8.22 acres (3.33 hectares), giving a low site cover of 30.8%.

6 TENURE / TENURE The property is held freehold and the site area is delineated in red on the Ordnance Survey plan extract to the right. There is a Compulsory Purchase Order in respect of a small part of the site at the western edge of the scheme s demise. This is in connection with Somerset County Council s plans to construct the Taunton Northern Inner Distributor Road ( TNIDR ). This road will provide a link from the roundabout junction at the south western boundary of the scheme, between Priory Avenue and Priory Park, heading north along the existing route of Priory Park, but dualled, over a new bridge across the river. The road will then run to the south of the railway line and station, finally, connecting to a new roundabout junction with the 27 Staplegrove Road to the west of the town centre. The result of these works should be a much improved road link east-west across Taunton and, importantly for the subject property, better access for customers coming from the western side of Taunton. The CPO would potentially result in the loss of some 40 car parking spaces at the south-western edge of the demise, for which, however, compensation will be payable. There is no date currently set for a public enquiry and discussions with the County Council are ongoing. Overall, we consider these proposals beneficial for the retail park. Full details including plans of the road link and proposed land take are available on request. The proposed road is marked on the map on Page 4.

7 TENANCIES The property benefits from an average income weighted unexpired lease term (including breaks) of 13.9 years. It is let on full repairing and insuring leases with 5 yearly upwards only rent reviews as follows: Unit Tenant GIA Lease Term Lease Next Rent Rent Rent Comments (sq ft) Start (years) Expiry Review (per annum) (per sq ft) 1 Dunelm (Soft Furnishings) Ltd 20,065 15/03/ /03/ /03/ , Rent reviews capped to 2.5% per annum compounded. Mezzanine floor of c. 12,175 sq ft. 2 Carpetright plc 10,108 23/12/ /12/ /12/ , Homestyle Operations Ltd 10,000* 29/09/ /09/ /09/ , *Area stipulated in lease for rent review purposes. (t/a Harveys) Mutual break option 28/09/ TJX UK (t/a HomeSense) 10,115 01/06/ /05/ /06/ , Tenant s option to break at 01/06/2020. First rent review is to the higher of the current rent passing or OMV capped at 264,500 per annum. Mezzanine floor of c. 9,030 sq ft. 5 Pets at Home Ltd 10,062 22/03/ /03/ /04/ , Wickes Building Supplies Ltd 50,000* 25/12/ /12/ /06/ , Outstanding rent review. *Maximum area stipulated in lease for rent review purposes, ground floor measured area 50,230 sq ft. TOTAL 110,350 1,948,475 The scheme was originally granted planning permission in 1985 for the development of 3 retail warehouse units, subject to a Section 52 Agreement. In 1995 the schedule of goods permitted to be sold from the development was amended to include: 1. all types of furnishings and furniture; 2. DIY goods; 3. garden products; 4. electrical gas, electronic and battery operated household office and domestic products and appliances, electronic games, photographic equipment, and ancillary goods, together with ancillary service departments; 5. vehicle goods, parts equipment and accessories, camping and caravanning goods, cycles, cycle goods, parts, equipment, accessories and cycling related fitness goods; 6. associated ancillary confectionery and non-alcoholic beverage sales; 7. videos and video hire; 8. office supplies, computers and associated equipment, parts supplies and fittings and; 9. pets, pet products, pet foods and associated supplies. Therefore, on the basis of the above, we consider the scheme to have a wide bulky goods consent. In February 2003 planning permission was granted for the demolition of the existing units and erection or replacement buildings. The Section 52 Agreement, as amended in 1995, still applied to the site. In September 2009, the permission on Unit 1 (Dunelm) was altered to include a new 1,521 sq m (16,372 sq ft) mezzanine floor to accommodate retail, storage and café uses within the unit. Condition 2, which limited the retail floorspace on the mezzanine, was varied in October 2009 to allow 1,131 sq m (12,174 sq ft) retail floorspace of which no more than 170 sq m (1,830 sq ft) can be used as a café or coffee shop. In January 2010, permission was granted for a mezzanine floor in Unit 4 (HomeSense). We understand the Council has been more amenable to granting further consents on the subject property as demonstrated by the consents for the mezzanine floors as detailed above, as the scheme is sequentially preferable to the other retail parks in Taunton. Copies of the planning consents are available on request.

8 POTENTIAL A downsize has been negotiated with Wickes for a reduced unit of 23,295 sq ft at a revised rent of per sq ft. There are proposals to create 3 further units in the downsized space of 9,100 sq ft, 7,500 sq ft and 10,000 sq ft. Heads of Terms are agreed subject to planning, with Hobbycraft for the 9,100 sq ft unit and with Dreams for the 7,500 sq ft store, both at rents equating to per sq ft. The addition of Hobbycraft and Dreams would enhance the tenant mix and further increase footfall to the scheme. Furthermore, lettings at levels of per sq ft would also improve the overall rent and increase the rental tone. Retailers including Argos, Smyths Toys, Wren Kitchens, Next Home, Boots and Maplin have potential requirements for Taunton and would be possible occupiers for the remaining 10,000 sq ft unit, subject to planning. There is also the potential to relocate retailers off their existing schemes in Taunton to the subject property, including Bensons Beds on Deane Retail Park. The scheme is predominantly well let to Dun & Bradstreet 5A1 rated covenants. We set out below a summary of the most recent tenant accounts: Unit Tenant Year Ending Sales Pre Tax Net Worth D&B Rating Turnover Profit / Loss (000s) (000s) (000s) 1 Dunelm (Soft Furnishings) Ltd 03/07/ ,839 77,245 60,028 5A1 04/07/ ,783 52,181 43,869 2 Carpetright plc 30/04/ ,800 6,600 1,200 1A2 01/05/ ,600 22,300 4,000 3 Homestyle Operations Ltd 26/06/ ,068 1,026 7,251 3A2 (t/a Harveys) 27/06/ ,700 2,464 6,318 4 TJX UK (t/a HomeSense) 29/01/2011 1,264,884 92, ,872 5A1 30/01/2010 1,194,312 78, ,604 5 Pets at Home Ltd 25/03/ ,646 68, ,401 5A1 26/03/ ,899 58, ,437 6 Wickes Building Supplies Ltd 01/01/ ,052 48, ,590 5A1 02/01/ ,661 46, ,232

9 VAT The property has been elected for VAT purposes. It is anticipated any sale will be treated as a Transfer of a Going Concern. PROPOSAL We are instructed to seek offers for the freehold interest in the above property of 28,333,000 (Twenty Eight Million, Three Hundred and Thirty Three Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50%, based on purchaser s costs of 5.80%. Paul Wilkinson Tel: Mob: p.wilkinson@wilkinsonwilliams.co.uk Ellie Kirkby Tel: Mob: e.kirkby@wilkinsonwilliams.co.uk Wilkinson Williams, Heathcoat House, 20 Savile Row, London W1S 3PR 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. Designed and Produced by Creativeworld. Tel January 2012.