For Sale Well Let Retail Warehouse Investment. B&Q Warehouse. Coatbridge Tennent Street ML5 4AN

Transcription

1 For Sale Well Let Retail Warehouse Investment B&Q Warehouse Coatbridge Tennent Street ML AN

2 2 Executive Summary» Coatbridge is situated east of Glasgow approximately 11. miles from the city centre.» The town has a resident population of,81 and a wider District population of 26,680.» The property is situated in a prominent position adjacent to Faraday Retail Park on the edge of the town centre.» The subjects comprise a modern purpose built retail warehouse unit extending to 102,77 sq ft and flanked by builders yard and garden centre.» The development incorporates surface parking for 600 cars (1 space per 171 sq ft).» DIY consent.» Let to B&Q plc (D&B Rating A1) until 10 December 2022.» Rental of 1,1,200 per annum exclusive ( 12.9 per sq ft).» Offers in excess of 17.M invited representing a net initial yield of 7.19%.» The proposition offers secure income with longer term development potential. B&Q Warehouse Coatbridge Tennent Street ML AN

3 Location Coatbridge is situated in North Lanarkshire in Scotland s central belt. The town is in the eastern market area of the large conurbation which is centred upon Glasgow. More than one-third of Scotland s population lives within a 0-minute drive of the town. Demographics The population of the North Lanarkshire local authority area is 26,680 (2011 Census). This population is projected to rise by.% to 0,680 by North Lanarkshire includes the main settlements of Coatbridge, Cumbernauld, Airdrie, Motherwell and Wishaw. The resident population of Coatbridge is,81 (2011 Census). Transport Coatbridge is strategically located adjacent to the north side of the A8(T)/M8 motorway, the principal road link between Glasgow and Edinburgh. In addition, the town lies only a few miles to the east of the M7/ M7 interchange, the M7 comprising the principal route from west central Scotland to the South. The Eurocentral railfreight terminal is within 2 miles drive. Coatbridge is served by a good rail network connecting it with both Glasgow and Edinburgh and Glasgow Airport lies only some 0 minutes drive to the west. Retail Market Overview Retail sales in Scotland increased by 0.8% during quarter two 201 and by 2.9% over 12 months (Scottish Government). The recovery in sales volumes in Scotland since 2012 matches the overall performance across Great Britain. Retail expenditure is recovering as employment rises and price inflation abates. North Lanarkshire is polycentric and does not have a dominant shopping centre. Retailing therefore has a significant local role in each town, including in Coatbridge. The 7,800 sq m Quadrant Centre in the town centre was built in the 1990s and includes national multiples such as Argos, Iceland and New Look. Additionally a range of traditional high street retail units supports a mix of independent and retailers including Superdrug, Specsavers, Boots and Asda. Faraday Retail Park is adjacent to the town centre and opposite B & Q. Town centre improvement works have recently been undertaken and included improved links from Main Street to the Retail Park. Index of Retail Sales Volume at basic prices, Q2 (2011 = 100) Dumbarton M Paisley A A811 A726 1 M80 GLASGOW M7 A72 Hamilton East Kilbride A8 A7 M80 Coatbridge M7 Airdrie Wishaw DIY Sector 9 A71 Stirling 1 A7 Falkirk 7 Carluke Sales in the DIY retail sector grew by % in 201, with predictions for 201 showing healthy growth (MINTEL). The sector is gaining from the increase in residential property market activity; with the market for home improvements closely linked to the number of house moves. Verdict also expects that the DIY market in the UK will return to growth in 201, for the first time since A98 Lanark M8 M A L 8 Q1 Q2 Q Q Q1 Q2 Q Q Q1 Q2 Q Q Q1 Q2 Q Q Q1 Q2 Q Q Q1 Q2 Q Q Q1 Q Scotland GB

4 A72 A89 Faraday Retail Park B&Q Warehouse Coatbridge Tennent Street ML AN

5 Caldeen road A72

6 6 Situation The subject property is situated in a prominent position on the edge of Coatbridge town centre and benefits from frontage to the A72 (Whifflet Street). The A72 links Coatbridge town centre to the A8 and in turn the M8 (Glasgow Edinburgh motorway). Faraday Retail Park which extends to 28,892 sq m (11,000 sq ft) is situated adjacent to the subject property. The Park has the benefit of an unrestricted retail planning consent and is anchored by Tesco Extra, Next, Argos and Matalan. Access to the site is via Caldeen Road and Tennent Street. Description and Accommodation The subject property trades as a B&Q Extra and comprises a modern retail warehouse development constructed in 2002 in accordance with the standard B&Q specification. The development incorporates a retail warehouse unit (GIA: 9,6 sq m (102,77 sq ft), adjacent to garden centre 2,787 sq m (0,000 sq ft) and a bulk goods yard 1,860 sq m (20,000 sq ft) on a site of approximately.27 ha (10. acres). The development is served by 600 dedicated car spaces which represents a ratio of 1 space per 171 sq ft. The retail warehouse unit is of steel portal frame construction with part brick/block and composite panel cladding. Internally the unit is fitted out to the standard B&Q format incorporating the usual facilities and a small customer café. There is a designated service yard incorporating a 27 metre diameter turning circle to the rear of the unit with access from Tennent Street. W Canal St Bank St Oxford St B7 B7 St Kirk Baird St Ellis St Stobcross St Lloyds St Weir St St Johns St Church St Main St S Circular Rd Cecil St Muiryhall St B80 Faraday Retail Park B7 WHIFFLET COATBRIDGE Coatbank St A72 Coatbank Way Miller St Kildonan St Muiryhall St Albion St Coats St Caldeen Rd Park St Tenn ent St Clyde St Main Street Orchard Grove Meadow Walk B&Q B7 Albion Rovers FC L B7 Whifflet Public Park B&Q Warehouse Coatbridge Tennent Street ML AN

7 7 Tenancy and Rental Analysis The property is leased to B&Q plc (Registered No 9787) for a period of 20 years from 9 December 2002 until 10 December The current rent passing under the lease is 1,1,200 per annum and this is subject to an open market (upwards only) rent review on 9 December As at the date of these particulars the lease has a remaining term certain of just over 8 years. The entire site incorporating surface car park and landscaped areas is leased to the tenant on full repairing and insuring terms. The annual rental of 1,1,200 per annum based upon the measured area of 102,77 sq ft equates to a rental of 12.9 per sq ft. For the purposes of rent review the existence of the garden centre, bulky goods area etc should be assumed but no rental value should be attributed to these areas. Tenant Information B&Q plc is the largest home improvement and garden centre retailer in the UK, employing more than 0,000 people nationwide. The company currently operates from 0 stores in the UK, 8 stores in Ireland and over 60 stores internationally. B&Q plc is part of Kingfisher plc, Europe s leading home improvement retail group and the third largest in the world. For the financial year ending 1 February 201, sales turnover was.6bn with profit of 18.6m. The company has a tangible net worth of.bn and a Dun & Bradstreet rating of A1 indicating minimum risk of business failure. The covenant is institutionally acceptable. A summary of the most recent accounts for the company is set out below. B&Q plc 1/2/201 (000 s) 2/2/201 (000 s) 28/1/2012 (000 s) Turnover,89,00,67,900,710,00 Profit before Tax 18,600 (,100) 20,00 Tangible Net Worth,8,900,0,00,68,00 Net Current Assets,86,900,71,00,8,900

8 8 B&Q Warehouse Coatbridge Tennent Street ML AN

9 9 The below map shows B&Q stores within a 10 mile radius of the subjects. M80 7 A98 Du Dumbarton 2 1 Falkirk M9 A77 1 M M Paisley 77 GLASGOW A726 M7 Coatbridge A72 A8 Hamilton 6 East Kilbride 1 A7 6 8 M7 Airdrie Wishaw A71 A7 Carluke Lanark M8 Livings A71 A721 1: B&Q Warehouse Tennent Street, Coatbridge (Subject Site) 2: B&Q Mini Warehouse Westway Retail Park, Cumbernauld : B&Q Supercentre Braidhurst Industrial Estate, Motherwell : B&Q Warehouse Forge Retail Park, Parkhead Radius 2. miles miles 10 miles : B&Q Warehouse Nerston Industrial Estate, East Kilbride 6: B&Q Warehouse Strathkelvin Retail Park, Bishopbriggs

10 10 Tenure Outright Ownership/Heritable Interest (Scottish legal equivalent of freehold in England). Planning The B&Q site has a restricted Class 1 (Retail) planning consent, granted in outline in 2001 by North Lanarkshire Council. This consent states that notwithstanding the provision of Class 1 of the Town & Country Planning (Use Classes) (Scotland) Order 1997, the proposed building and ancillary garden centre and bulk goods yard shall be used solely as a DIY store selling goods, services and materials for constructing, maintaining, improving and furnishing houses and gardens, in particular shall not be used for the sale of food, clothes, footwear and sports goods. Detailed planning consent was granted in May This included a condition stating that the proposed building should be maintained as a single retail unit and shall not be split or subdivided in any way at any time in the future. Within the Local Development Plan (LDP), the main retail policy is RTC 1 Protecting the North Lanarkshire Network. This states that the Council will protect the network of centres as the continuing focus of retail, leisure, civic and community uses. With a view to doing so, the plan states what uses are appropriate for the various retail centres in North Lanarkshire. The B&Q site is covered by policy RTC 1B, wherein it states that the appropriate use for this site is for the sale of Class 1 Bulky Goods only. This is a slightly wider definition than that contained in the retail planning consent for the site, which restricts its use to DIY and a garden centre. We are unaware of any major development proposals in the vicinity that would have an impact on the property. The current Development Plan comprises the Glasgow & Clyde Valley Strategic Development Plan (approved 2012) and the North Lanarkshire Local Development Plan (approved 2012). B&Q Warehouse Coatbridge Tennent Street ML AN

11 11 Capital Allowances Further information is available upon request. VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale can be treated as a Transfer of a Going Concern (TOGC). EPC The property has an Energy Performance Rating of D+. A copy of the EPC can be provided upon request. Proposal We are instructed to seek offers in excess of 17,00,000 (Seventeen Million Five Hundred Thousand Pounds) exclusive of VAT for the benefit of our client s heritable interest in the property. A purchase at this level would offer a net initial yield of 7.19% after deduction of purchaser s costs at.8%.

12 Viewing and Further Information Ryden LLP 6 Castle Street Edinburgh EH2 BN Ford Swanson Tel: ford.swanson@ryden.co.uk Nick Armstrong Tel: nick.armstrong@ryden.co.uk Ryden is a limited liability partnership registered in Scotland. Messrs Ryden for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property. October 201.