Ravenside Retail Park

Transcription

1 Ravenside Retail Park Edmonton Prime London retail park

2 Ravenside Retail Park Contents 05 Executive Summary 06 Location 06 Socio Economic Profile 08 Situation 10 Description 11 Tenure 11 Tenant Trading 12 Tenancies 12 Service Charge 13 Planning 13 Covenant Information 14 Asset Management Opportunities 14 Outstanding Rent Review 14 Environmental Considerations 15 Proposal

3 Based on the excellent performance of the two anchor tenants we would anticipate very successful trading when these stores open. The adjacency of a regional anchor in IKEA and a large Tesco Extra clearly underpins the location and trading. 03 Edmonton Ravenside Retail Park

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5 Whilst Wickes and Mothercare are the only tenants currently trading from the scheme we understand that these are amongst the top stores in their respective portfolios from a trading perspective. Postcode N18 3HA Grid reference TQ Executive Summary Edmonton is a strategically positioned commercial centre on the A406, London s North Circular dual carriageway, towards the southern boundary of the London Borough of Enfield benefiting from exposure to a significant and extensive catchment. The Ravenside Retail Park forms part of a significant retail offer including a Tesco Extra, IKEA Superstore, Costco and further retail clusters, providing in the order of 82,125 sq m (884,000 sq ft) of floorspace. Furthermore there is also a J Sainsbury foodstore of around 8,918 sq m (96,000 sq ft) approximately 4 km (2.5 miles) to the east of the subject property. The park benefits from a wide Bulky Goods planning consent with further relaxations, offering modern, well configured retail space extending to approximately 11,943 sq m (128,551 sq ft) together with 381 car parking spaces. The scheme is currently let to two tenants with a further five retailers having signed Agreements for Lease and taken occupation to commence fitting out of their respective units. The average unexpired term for those tenants in the main terrace stands in the order of 14 years. The Maplin Electronics lease incorporates a fixed uplift in 2011 whilst the Wickes and Argos leases incorporate fixed uplifts in Whilst Wickes and Mothercare are the only tenants currently trading from the scheme we understand that these are amongst the top stores in their respective portfolios from a trading perspective. The approaching lease expiry on the Mothercare unit (June 2013) offers an excellent opportunity to regear given the store s trading figures and the fact that this is Mothercare s only unit in the immediate area. Subject to planning a downsize and subdivision of the unit could also be implemented. Offers are sought in the region of 35,700,000, subject to contract and exclusive of VAT, for the Freehold interest in this property. Based on an annual income of 3,303,126, assuming settlement of the outstanding Mothercare review and the vendor topping up the Maplin Electronics income to the level of the fixed uplift in 2011, this will show the following yield profile: Initial Yield 8.75% Reversionary Yield Feb 2012 (Wickes guaranteed uplift) 9.40% Reversionary Yield Mar 2012 (Argos guaranteed uplift) 9.45% 05 Edmonton Ravenside Retail Park

6 Location Socio-Economic Profile Edmonton is situated in the London Borough of Enfield, Hemel approximately Hempstead 14.5 km (9 miles) north of the Capital s centre. Surrounding centres include Wood Green around 7 km (4 miles) to the south west, Walthamstow around 6.9 km (4.2 miles) to the south east and Enfield itself around 5.8 km (3.6 miles) to the north. The area benefits from excellent communication links Abbots with the A406 North Circular providing Langley access both east and west across northern London. To the east the North Circular links with Woodford, Walthamstow, the M11 (and M25) and A12. To the west is the (M25 and the north), Radlett Haringey, Friern Barnet, Brent Cross and the M1 Motorway. Aldeham The closest train station is Angel Road, situated just Chorleywood to the north of the North Circular and this Watford provides a direct link with London s Liverpool Street offering a fastest journey Rickmansworth time of around 27 minutes. Harefield Denham Ruislip South Oxney St Albans Stanmore Harrow London Colney Borehamwood Edgware Ridge Brent Cross Edmonton Essendon boasts a resident population of around 96,492 people (2001 Census). According to CACI approximately 159,409 Wildhill people within a 10 minute drive time of the subject property and this figure increases to around 435,216 people within a 15 minute drivetime. The presence of the IKEA ensures that the immediate locality draws upon a much wider catchment, covering much of north east London. A406 Finchley Hampstead A1 M25 Cockfosters Cuffey Southgate Finsbury A503 Forty Hill Enfield Upper Muswell Hill Edmonton Wood Green Walthamstow Crouch End Cheshunt Waltham Cross Edmonton Waltham Abbey Sewardstone A406 North Circular A12 Drive time Nazeing contours 5 minutes 10 minutes 15 minutes Woodford M25 Loughton M11 A1400 A406 Chigwell Ilford Uxbridge Camden Hackney Stratford

7 M25 London Colney Abbots Langley A41 M1 Radlett Ridge M25 Potters Bar Cuffey Cheshunt Waltham Cross Waltham Abbey M25 horleywood Watford Aldeham A1 Borehamwood Barnet Cockfosters Forty Hill Enfield Sewardstone Loughton Harefield South Oxney A41 A410 Stanmore Edgware M1 Southgate A406 North Circular Muswell Hill Crouch End Edmonton Woodford Upper A406 North Circular M11 Edmonton Walthamstow Chigwell Chigwell Row Denham Cowley Ruislip Harrow Brent Cross A406 North Circular A40 Perivale Hanwell Southall A406 North Circular Finchley Finsbury A1 Hampstead A503 A41 A1 Camden Town A4201 A40 Holborn KensingtonLondon Hackney A1211 Stepney A13 A12 Leyton Stratford Plaistow 2 A1400 Ilford A406 Beckton A117 Dagenham A13 Rainham M4 A4 A307 A316 A4 A302 0 A2203 Chelsea Lambeth Peckham Woolwich A3216 A3 A202 A2211 Blackheath Wandsworth The presence of the IKEA ensures that the Forest Hill New Eltham immediate Streatham locality draws upon a much wider catchment, covering much of north Chislehurst east London. Beckenham Bexleyheath Crayford North Cray 07 Dartford Edmonton Ravenside Retail Park T Swanley

8 Situation The Ravenside Retail Park is situated on the southern side of the A406 North Circular, just to the west of the Cooks Ferry roundabout. The site which offers excellent frontage 8 and visibility to and from the dual carriageway is bordered to the east by the River Lea, to the south by the Orbital Business Park and by IKEA (300,000 sq ft) and Tesco (100,000 sq ft) superstores to west. We estimate that the combined retail offer in the immediate vicinity provides a critical mass 6 7 of space in the order of 91,044 sq m (980,000 sq ft). The majority of customers visiting IKEA and Tesco have to pass 5 by the subject property, ensuring significant traffic flow. The aerial photo adjacent shows the positioning of the subject property in the context of the A406 1 Subject Property 3 North Circular and the surrounding retail provision. We have provided further information in regard to these schemes and stores on the next page. We consider that the subject property offers significantly 4 2 superior specification and quality retail warehouse floorspace than the surrounding provision and this has been demonstrated by a number of tenants relocating from this older space (Allied Carpets and Paul Simon). This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds.

9 Subject Property Ravenside Retail Park. Tesco Extra c. 9,290 sq m (100,000 sq ft). IKEA Superstore 27,870 sq m (300,000 sq ft). Eley Retail Park c. 8,351 sq m (89,900 sq ft). Developed around 1984 current tenants include Magnet, Bensons Beds and Joysleep. Cork Tree Retail Park c. 8,639 sq m (93,000 sq ft). Developed around 1989, current tenants include Currys, Pets at Home, Harveys and Halfords. Cabinet Way Development c. 8,527 sq m (91,790 sq ft). Developed around 1983, current tenants include Carpets 4 Less, Kwik Fit, Topps Tiles and B&Q. Costco Superstore c. 9,290 sq m (100,000 sq ft). J Sainsbury 8,918 sq m (96,000 sq ft). 09 Edmonton Ravenside Retail Park

10 Description The subject property is effectively split into two physical elements by the access roundabout from Argon Road and Ravenside Close acting as a spine road running into the scheme. The western half of the site comprises an east facing stand alone retail warehouse unit occupied by Mothercare extending to around 2,797 sq m (30,107 sq ft) with a main forecourt car parking provision (101 spaces) and further smaller parking provision (32 spaces) to the south east corner, effectively adjacent to the servicing area. To the east of Ravenside Close is a north facing stand alone DIY store occupied by Wickes extending to approximately 5,625 sq m (60,550 sq ft) and a further north west facing terrace of 5 units which has recently been completed and extends to approximately 3,520 sq m (37,894 sq ft). These units benefit from a forecourt parking provision of around 248 spaces. The combined car parking areas offer an overall provision for the scheme of circa 381 spaces and a ratio of 1: 31.3 sq m (337 sq ft). Practical Completion of the new terrace was achieved in March and the tenants have taken occupation and are currently fitting out their respective units. The units are of steel portal frame construction incorporating a modern and attractive combination of brickwork and cladding around glazed entrance features. Internally the units offer a minimum eaves heights of 5.5 m (18 ft), and comfortably accommodate mezzanine floors as demonstrated by those set out in the Tenancy Section, together with required ancillary and staff facilities. Segregated servicing facilities for all the units are available via Ravenside Close whilst primary customer access to the scheme from the A406 North Circular is available from the Cooks Ferry roundabout via Harbet Road and Argon Road. This is also the main customer access route to the adjacent Tesco and IKEA stores A406 North Circular 09 A406 North Circular 55 ARGON ROAD Ravenside Retail Park A112 ARGON ROAD A406 North Circular The arrows depict the access route from the A406 North Circular in both directions.

11 RAVENSIDE CLOSE Tenure The property is held Freehold. East Bound West Bound NORTH CIRCULAR ROAD ARGON ROAD CANAL SERVICE YARD RIVER LEE This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. Tenant Trading The Mothercare store is their only representation in the immediate area, Wood Green and Enfield being the nearest other stores (4.8 km and 5.3 km respectively) and we understand that this is one of the top trading stores in their UK Portfolio. The Wickes store is also one of the top performing stores in the UK portfolio, clearly benefiting from the excellent strategic position on the A406 North Circular and a lack of decent competition in the area. Clearly it is not possible to obtain trading feedback for those tenants fitting out however based on the excellent performance of the two anchor tenants we would anticipate very successful trading when these stores open. The adjacency of a regional anchor in IKEA and a large Tesco Extra clearly underpins the location and trading. 11 Edmonton Ravenside Retail Park

12 Tenancies Service charge The property is currently let to two occupational tenants with a further five Agreements for Lease in place, in accordance with the Tenancy Schedule set out below. We have also set out the relevant incentives for the more recent lettings. Whilst there is a service charge regime in place on the scheme given the significant changes that have taken place on the park in recent years, arguably the most relevant information is the Budget Forecast for the financial year and we have set summary information for this period out below together with the previous two years: Budget 2009/2010 Budget 2008/2009 Actual 2007/2008 Total 63,681 ( 0.49 psf) 79,901 50,797 This forecast for the forthcoming financial year shows a 20.1% decrease over the budget for the year ending 31st March More detailed information is available on request. Property Tenant trading As Term Lease Lease Next GIA Mezz Current Current Comments Address S start Expiry Review (sq ft) (sq ft) Rent Rent (Unit) ( pa) ( psf) 1a next Group Plc next Home 10 yrs 25/03/09 11/08/19 12/08/14 9,000 8, , Reviewed to lower of Open Market Value or gearing to Consumer Price Index. 1B argos Ltd argos 15 yrs 09/03/09 08/03/24 09/03/14 10,000 10, , Stepped rent (March 2012) to psf. OM reviews are capped at 2.5% 1C allied Carpets Properties Ltd Allied Carpets 15 yrs 25/12/08 24/12/23 25/12/13 7,500 6, , D Paul Simon (London) Ltd Paul Simon 15 yrs 25/12/08 24/12/23 25/12/13 5,500 2, , pa compound growth on passing rent. Mezzanine space is storage only. 1E maplin Electronics Ltd maplin 15 yrs 16/03/09 15/03/24 16/03/14 5, , Stepped rent (March 2011) to psf ( 165,000 pa). 2 Wickes Building Supplies Ltd Wickes 20 yrs 07/02/07 06/02/27 07/12/12 60,550 3,157 1,541, The first floor space is valued at 50% of the OMV psf of the ground floor. Fixed uplift on 07/02/12 to 1,787,311 pa. 3 Childrens World Ltd mothercare 25 yrs 24/06/88 23/06/13 24/06/08 30,107 10, , The 2008 Rent Review is now outstanding. The rent stated is the anticipated settlement level. The current rent payable is 565,000 pa ( psf). Advert. Excited Limited n/a 3 yrs 01/06/08 31/05/11 26,250 50% of this income is offset against Service Charge Burger Van Andrea Lafave n/a 3 yrs 01/04/09 31/03/12 15,000 Licence relating to 2 car park spaces. 50% of this income is offset 128,157 39,557 3,289,376 against Service Charge. 1. The vendor will make-up any shortfall in the initial annual income stream as a result of any rent free periods % of the income derived from the Advertising Board and Burger Van (non permanent trading units) is to be credited towards the service charge account under the terms of the Allied Carpets Properties lease. Consequently we have deducted this from the Total Annual Income figure. 3. Next, Argos and Paul Simon have consent to pay their rents monthly under agreed side letters. 4. The floor areas set out for units 1A, 1B, 1C, 1D and 2 are capped areas and are to be assumed at future reviews. Slightly larger areas for some of the units were recorded at Practical Completion and details of these are available on request actual scheme total area 128,551 sq ft.

13 Planning Covenant Information The scheme has seen significant change and redevelopment in the last few years with the site previously comprising a stand alone Wickes, Courts and Mothercare units between 1988 and The original Wickes unit was positioned where the recently completed terrace currently stands, with Courts occupying the unit that Wickes now occupy (having relocated there in 2006). Full copies of the relevant planning consents are available on request though we have summarised the main conditions below: Units 1A-1E: Non food wide bulky goods planning consent allowing sale of DIY/hardware, furniture, furnishings, carpets, floor coverings, household textiles, motor vehicles and/ or cycle goods, electrical goods including computers. Minimum unit size of 510 sq m (5,489 sq ft). Total Gross Mezz. floor area of 2,575 sq m (27,717 sq ft), of which 1,599 sq m (17,211 sq ft) can be used for retail and 975 sq m (10,494 sq ft) for storage. The Argos unit can be used as a Catalogue Showroom, no larger than 1,858 sq m (19,999 sq ft) of non bulky electrical items from the unit occupied by Maplin. The consent also allows 511 sq m (5,500 sq ft) of floor space for sales of non bulky electrical items from the unit occupied by Maplin. Unit 2: Non food retail warehouse with the following further exclusions: alcoholic drinks, tobacco, books, magazines, newspapers, clothing & footwear, chemists goods, We have set out below some recent account information together with Dun & Bradstreet ratings for the primary tenants: Tenant date for Sales tangible Total d&b % of current accounts turnover net worth current assets rating income Next Group Plc 26/01/ ,600, ,400,000 1,812,600,000 5A2 8.1% 27/01/ ,900, ,200,000 1,553,200,000 28/06/ ,800, ,800,000 1,336,900,000 Argos Ltd 01/03/2008 4,099,777,000 1,381,659,000 1,698,625,000 5A1 8.8% 03/03/2007 3,726,054, ,435,000 1,673,478,000 31/03/2006 3,654,835, ,168,000 1,568,936,000 Allied Carpets Properties Ltd 29/12/ ,114,000 23,089,000 16,343,000 4A3 7.0% 30/12/ ,015,000 20,746,000 13,443,000 31/12/ ,119,000 18,581,000 11,104,000 Paul Simon (London) Ltd 31/05/ ,062,883 6,264,941 5,109,842 2A2 5.2% 31/05/ ,607,714 5,889,795 5,602,990 31/05/ ,047,043 5,242,768 4,502,213 Maplin Electronics Ltd 29/12/ ,778,000 52,275,000 78,312,000 5A1 4.7% 30/12/ ,466,000 36,855,000 53,477,000 31/12/ ,285,000 22,320,000 35,094,000 Wickes Building Supplies Ltd 29/12/ ,171, ,457, ,264,000 5A1 48.5% 30/12/ ,466,000 82,822, ,539,000 31/12/ ,414,000 24,131, ,949,000 Childrens World Ltd 29/03/ ,700 63,700 5A3 17.7% 31/03/ ,700 63,700 01/04/ ,700 63,700 NB: the % of current income figures are based on a total income figure of 3,184,501 pa so do not include advertising or burger van income. Tenant date for Revenue Total net D d&b % of current accounts assets rating income Mothercare plc 29/03/ ,800, ,000,000 5A1 N/A (Global Parent Company) 31/03/ ,500, ,000,000 jewellery, watches, clocks, toys or sports goods, stationary, leather goods and general fancy goods. Minimum unit size of 1,400 sq m (15,068 sq ft). Unit 3: Non food retail warehouse with the following further exclusions: alcoholic drinks, tobacco, books, magazines, newspapers, clothing & footwear, chemists goods, jewellery, watches, clocks, toys or sports goods, stationary, leather goods and general fancy goods. Further allowance for Childrens World (Mothercare) to sell books, maternity wear, children s clothes, shoes, baby goods, toys, educational crafts and party equipment. 13 Edmonton Ravenside Retail Park

14 Asset Management Opportunities Outstanding Rent Review All the leases/agreements for Lease in place offer minimum unexpired terms in excess of 15 years, with the exception of the Mothercare which is due to expire in June The rent review from 2008 remains outstanding and given the performance of the store and its positioning within their portfolio there is little doubt that Mothercare will seek to retain representation here beyond the approaching lease expiry. Initial discussions have taken place in regard to regearing the existing lease together with the possibility of a downsize of the unit to create separate accommodation in the order of 5,000 10,000 sq ft for use by another retailer. Indeed there is a historic consent allowing sub-division which has now expired. It is anticipated that given the age of the unit and trading levels to date, Mothercare will look to refurbish their store both internally and externally in the next few years and this will certainly be the case should a downsize take place in some form or other. The Childrens World rent review is outstanding from June The current passing rent of 565,000 pa equates to psf and a settlement in the order of 647,300 pa ( psf) is anticipated. Following this we consider the property to be rack-rented as set out in the Tenancy Schedule on page 13. This would equate to a Net Total Annual Income from the park of circa 3,289,376. Environmental Considerations Waterman undertook a Phase 1 Property Due Diligence Assessment of the Ravenside Retail Park in April 2009 and confirmed that the site is considered to represent a low to medium risk with respect to contaminative liabilities or costs. Furthermore the site currently used for commercial purposes, a less sensitive end-use, and is predominantly covered in hard standing, limiting the risk for site users to come into contact with any contamination. Consequently the site is considered suitable for current use. The Environmental Health Officer (EHO) for Enfield Council has confirmed that the site is not recorded as potentially contaminated land and is consequently not registered as such. A full copy of this report is available on request.

15 Proposal Offers are sought in the region of 35,700,000, subject to contract and exclusive of VAT, for the Freehold interest in this property. Based on an annual income of 3,303,126, assuming settlement of the outstanding Mothercare review and the vendor topping up the Maplin Electronics income to the level of the fixed uplift in 2011, this will show the following yield profile: Initial Yield 8.75% Reversionary Yield Feb 2012 (Wickes guaranteed uplift) 9.40% Reversionary Yield Mar 2012 (Argos guaranteed uplift) 9.45% 15 Edmonton Ravenside Retail Park

16 Contacts For further information please contact: Patrick Knapman T: F: E: Justin Houlihan T: F: E: Misrepresentation Act 1967 and Property Misdescriptions Act Cushman & Wakefield LLP for themselves and for vendors or lessors of this property whose agents they are, give notice that : 1 the particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. 2 no person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. 3 this property is offered subject to contract and, Floor areas, measurements or distances given are approximate and unless otherwise stated, all rents are quoted exclusive of VAT. 4 nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. 5 unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Edmonton Ravenside Retail Park May 09 Ref: