Prime Retail Warehouse & Trade Counter Investment Hambridge Road, Newbury RG14 5EA

Transcription

1 Prime Retail Warehouse & Trade Counter Investment Hambridge Road, Newbury RG14 5EA

2 investment summary Newly constructed, retail warehouse and trade counter development. Unit 1: Wickes Building Supplies Ltd FRI lease for 20 years from 25th May 2018 (T.O.B. Year 10) Unit 2: JP McDougall & Co (t/a DULUX Decorator Centre) - FRI lease for 10 years from 9th May 2018 (T.O.B Year 5) Unit 3: Benchmarx (Travis Perkins plc subsidiary) FRI lease for 10 years from 25th May Prime trading location and offering Wickes latest trading format. Total GIA of 37,869 sq ft (3,518 sq m). Low aggregate commencing rent of 329,500 pa Equates to psf for Wickes and 7.61 psf for the Trade Counter accommodation (on rentalised areas). WAULT of 17.7 years (9.32 years after T.O.B. s). 5 yearly upward only rent reviews to Market Rent (Wickes increase capped at 3% pa). Offers in excess of 5,620,000, exclusive of VAT. Net Initial Yield of 5.50 %, assuming 6.61% Purchaser s Costs.

3 Screw Fix Travis Perkins / City Plumbing Tesco Poundstretcher RACECOURSE Newbury racecourse Carpetright Dunhelm Tool Station Plumb Centre THE PADDOCKS IND. ESTATE B&Q CEF Brewers TRADE PARK Halfords Jewson

4 SWINDON A336 J15 A346 A4 M4 A303 ANDOVER OXFORD J13 A339 A34 BASINGSTOKE J9 M3 J8 READING J12 A4 J11 Location The historic market town Newbury is a popular and affluent commuter centre, located in the valley of the River Kennet, 20 miles (32 km) west of Reading and 26 miles (42 km) south of Oxford. The town has excellent road connections with immediate access to both the M4 and A34. These provide direct links to key urban centres including Reading and London to the east or Bristol, Swindon and Cardiff to the west, via the M4. Oxford, Winchester and Southampton can be reached via the north/south A34. The district has good rail links, with London less than an hour by train and further connections, via Reading, to all mainline routes throughout the country. The area also has good links to international transport hubs: Heathrow and Southampton airport are 40 miles away, as are the ferry terminals in Southampton and Portsmouth. J6 A33 A31 A3 HIGH WYCOMBE M40 J10 M3 A322 J3 M4 A272 J16 M25 J12 A3 J15 GUILDFORD J10 M1 J21 M25 WATFORD BONE ROAD RIVER LAMBOURN LONDON ROAD KINGFISHER COURT HAMBRIDGE ROAD CANAL VIEW ROAD A4 RIVER KENNETT HAMBRIDGE LANE Situation The property is situated on a prominent corner site at the junction of Canal View Road and Hambridge Road (B3421), being a busy east-west link between Newbury and Thatcham. Anchored by M&S and John Lewis at Home, the 475,000 sq ft Parkway Shopping Centre in Newbury Town Centre is approximately 1 mile to the west. Newbury Racecourse is a quarter of a mile to the south. The immediate area is dominated by a mixture of trade and bulky-goods retail with Jewsons occupying the adjoining site. Nearby occupiers on the London Retail Park (where rents range from 15psf psf) include B&Q, Halfords, Dunelm and a neighbouring Tesco. Tenants at the Newbury Trade Park on Hambridge Rd include ToolStation, Plumb Centre and CEF, where lettings achieved 12 psf. Business users such as Stryker and Vodafone occupy neighbouring properties. The Newbury Retail Park caters for mainly Open A1 retail and is 2 miles to the south, on the outskirts of town. Occupiers include, TK Maxx, Boots, Currys, PC World, Sports Direct, M&S Simply Food, Homebase and Argos. Rents on the park range from 16psf to 30+psf. HAMBRIDGE ROAD FIR TREE LN LONDON ROAD LOWER ROAD Catchment and Demographics Newbury has an estimated resident population of 40,000; a District population of over 156,000 people living within West Berkshire and a 20 minute drivetime catchment population of 96,000. The town serves the convenience and most of the comparison shopping needs of its resident and substantial rural hinterland population. This produces an estimated annual retail expenditure capacity of 492 million (source: Savills Research). PROMIS ranks its catchment population 7th in the PMA Affluence Indicator (source: PMA). The largest employer within the District is Vodafone (4,000+ employees), with other key employers including medical technology company, Stryker Corporation, US firm National Instruments and IT companies such as Micro Focus. The town benefits from an all year round tourist industry helped by Newbury Racecourse, which hosts the famous Hennessy Gold Cup.

5 Description Accommodation The property comprises a recently developed terrace The specification includes the following: of a retail warehouse and two trade counter units Unit 1 - Wickes Sq M GIA Sq ft GIA Steel portal frame 6.7m to underside of haunch. with shared car parking for approximately 61 vehicles. Ground Floor Sales 1, ,083 To the rear of the Wickes unit is an external Outdoor Insulated profiled steel cladding to external First Floor Ancillary ,324 Project Centre and dedicated service yard, both elevations and roofs. Entrance Lobby secured by 4m high, gated fencing. This is accessed via The roof incorporates 15% roof lights. an extensive concrete and gated service yard, shared Trading Mezzanine* ,657 Internal block-work to 2.66m. Full height with the remaining two units. Fit-out works have block-work or jumbo-stud partition walls. TOTAL 2, ,510 commenced on Unit 2 and the store will soon open for trade. 30 kn/m 2 floor loading to concrete floor slab. Unit 2 Dulux D.C. Sq M GIA Sq ft GIA First floor staff accommodation within Unit 1, Ground Floor ,019 including a canteen, administrative offices and W.C s. Unit 3 - Benchmarx Sq M GIA Sq ft GIA Steel framed and plywood decked mezzanine storage level to Unit 3. Ground Floor ,027 Electrically operated roller shutter; sliding and Storage Mezzanine* ,313 security shutter doors to service bays and TOTAL ,340 entrance lobbies. Occupier led fit-outs, including trading Total site area is approximately 2.18 acres (0.88 h.a.) with site coverage of 32%. mezzanine bathroom and kitchen showroom area NB *The trading and storage mezzanines within Wickes and to Unit 1 and showroom fit outs to Units 2&3. Benchmarx respectively are to be regarded as Tenant s Fit-out Works and will be disregarded at rent review or lease renewal. Post Dulux fit-out CGI

6 Tenure Freehold Tenancy Unit 1 - Wickes Building Supplies Ltd will take a 20 year FRI lease from 25th May 2018 at an initial rental of 253,000 pa. ( psf on rentalised area) The lease will be in the Vendor s standard format; incorporating a Tenant s Option to Break at Year 10 (on 6 months notice) and five yearly upwards only rent reviews to Market Rent. Increases at each rent review will be capped at the equivalent of 3% pa i.e. a maximum increase of 15.93%. Unit 2 - J.P.McDougall & Co Ltd (t/a Dulux Decorator Centre) have take a 10 year FRI lease from 9th May 2018 at an initial rental of 45,000 pa ( 8.97 psf). The lease is in the Vendor s standard format; incorporates a Tenant s Option to Break (on 6 months notice) and an upwards only rent review to Market Rent at Year 5. Unit 3 - Benchmarx Kitchens & Joinery Ltd will take a 10 year FRI lease from 25th May 2018, at an initial rental of 31,500 pa ( 6.27 psf). The lease will be in the Vendor s standard format and incorporating an upwards only rent review to Market Rent at Year 5. Planning Detailed planning consent (14/00485/COMIND) was granted on 13th June 2014 for 3 units: Unit 1 (Class B8/ A1) including mezzanine and associated Outdoor Project Centre and Secure Compound, Unit 2 (Classes B2, B8 with trade counter and ancillary showroom and sui generis tile merchant) including mezzanine, Unit 3 (Class B8 with trade counter and ancillary showroom) including mezzanine, access and servicing arrangements, car parking, landscaping and associated works. The sale of goods across the three units is restricted to DIY, home improvement and building material / items, including tools and tiles, within class B8. Tenant s Covenant Wickes Building Supplies Ltd (Reg. No: ) is a wholly owned subsidiary of Travis Perkins plc and trades from 244 stores. It is the UK s fastest growing DIY retailer and the market leading online DIY proposition. The new trading format stores continue to drive an uplift in divisional turnover and a 4.7% increase in sales was reported by the Consumer Division of Travis Perkins for Y/e Dec This builds on a 6.4% like-for-like increase to Y/e Dec The company has a 5A1 D&B Rating, representing a minimum risk of business failure and summaries from their accounts for the three previous trading years are: Accounts Turnover Pre-Tax Profit Net Worth 31/12/2016 1,213m 65.4m 316m 26/12/2015 1,104m 60.1m 414m 27/12/2014 1,039m 68.8m 355m J.P. McDougall & Co Ltd t/a Dulux Decorator Centre (Reg No: ) is a wholly owned subsidiary of Akzo Nobel NV (Market Cap bn) and is a key part of its Decorative Paints UK & Ireland unit. The company sells paint products and accessories from 194 retail and trade units throughout the UK and has an N1 D&B rating. Summaries from their accounts for the three previous trading years are: Accounts Turnover Pre-Tax Profit Net Worth* 31/12/ m 5.46m ( 50.72m) 31/12/ m 146,000 ( 34.83m) 31/12/ m 7.09m ( 39.1m) *Includes Pension Liabilities Benchmarx Kitchens & Joinery Ltd (Reg. No: ) is a leading supplier of contract kitchens to the building trade and is a wholly owned subsidiary of Travis Perkins plc within its General Merchanting division. It trades from 183 units, 11 of which were opened in 2017 and with further expansion programmed. The company has a 2A1 D&B Rating and summaries from their accounts for the three previous trading years are: Accounts Turnover Pre-Tax Profit Net Worth 31/12/ m 9.9m 5.89m 31/12/ m 6.91m ( 2.13m) 27/12/ m 2.26m ( 9.31m) Travis Perkins plc is the UK s leading company in the builders merchanting and home improvement markets, with 20 businesses trading from over 2,000 sites. It reported a 3.5% increase in Group turnover for Y/e 31st Dec.2017 to 6.43bn, adjusted EBITA of 380m and total Assets of 5.14bn. NB. Small area of service yard has now been excluded from the holding

7 EPC The units have been rated as follows: Unit 1 A-23 Unit 2 B-28 Unit 3 A-24 Copies of the Energy Performance Certificates are available on request. VAT The property has been elected for VAT and the transaction will be treated as a TOGC. Proposal Seeking offers in excess of 5,620,000 (Five Million, Six Hundred and Twenty Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. This price reflects a Net Initial Yield of 5.50%, assuming standard Purchaser s Costs and SDLT of 6.61%. Contact For access to the dataroom or to arrange an inspection, please contact:- Paul Yeadon cpy@hsmuk.com DDI: Andy Taylor art@hsmuk.com DDI: DISCLAIMER Messrs Hoddell Stotesbury Morgan Ltd for themselves and for the vendors 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 intending purchasers and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchaser should not rely upon them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs Hoddell Stotesbury Morgan Ltd has any authority to make or give any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) Messrs Hoddell Stotesbury Morgan Ltd has not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers must undertake their own enquiries and satisfy themselves in this regard. Date: May 2018.