Prime Open A1 Retail Warehouse. B&Q, Marlborough Retail Park Highfield Road, Craigavon, BT64 1AG

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1 Prime Open A1 Retail Warehouse B&Q, Marlborough Retail Park Highfield Road, Craigavon, BT64 1AG

2 Investment Summary Open Class A1 Retail Warehouse forming part of Craigavon Town Centre. The property occupies a prominent location in Central Craigavon adjacent to Tesco Extra and Rushmere Shopping Centre & Retail Park. A purpose built retail warehouse unit with a gross internal area of 86,620 sq.ft. Freehold. Open Class A1 retail planning permission. The Property is let to B&Q Plc on a 25 year full repairing and insuring lease from the 2nd November The lease incorporates 5 yearly open market upwards only rent reviews. The next rent review is due on 2nd November Current rent passing is 1,000,000 per annum. The lease stipulates the property is to be reviewed to an 80,000 sq ft unit and on this basis the rent equates to per sq ft. Our client is seeking offers in excess of 11,450,000 (Eleven Million, Four Hundred and Fifty Thousand Pounds) reflecting an attractive net initial yield of 8.25% excluding VAT and assuming full purchasers costs at 5.80%.

3 Newcastle Middelsbrough York Hull Derry Belfast Leeds Lisburn Craigavon Newry Bolton Liverpool Manchester Nottingham Dublin Birmingham Cambridge Luton London Oxford Reading Permit ID: Crown Copyright 2013 The subject property is located in Craigavon, County Armagh and lies in between the towns of Portadown and Lurgan. Craigavon is located approximately 28 miles (45 km) South-West of Belfast and 23 miles (37 km) North of Newry. Craigavon enjoys excellent transport infrastructure and is well connected to the rest of Ireland and to mainland UK. Craigavon has good road networks being positioned within close proximity to the M1 motorway which links Belfast, approximately 30 minutes drive time to the North and Dublin via the A1 is approximately 1 hour 30 minutes drive time to the South. In addition the direct Belfast to Dublin train service stops in Portadown some 3.5 miles (5 km) to the South-West of the town. George Best Belfast City Airport is located approximately 30 miles (48 km) to the North-East with Belfast International Airport some 28 miles (45 km) to the North. Craigavon Borough has the third largest population in Northern Ireland and performs a strong sub-regional role offering a wide range of services and facilities, including an acute hospital. The Borough has a catchment population of 180,000, second only to Belfast and has the highest birth rate in the country of 2.3%, Craigavon s population of 93,023 is forecast to continue to grow to 100,000 by 2015 and to 112,000 by Additionally there is a population of 805,390 within a 45 minute drive time. (Source: NISRA 2011) Craigavon is ranked 20th in CACI s ranking of over 400 Irish Retail Footprint Centres and 7th in Northern Ireland Retail Footprint ranking. Furthermore the surrounding retail area has the greatest retail footprint attractiveness score outside of the shopping centres in Belfast.

4 Description LAKEVIEW ROAD CURRYS PETS AT HOME HARRY CORRY ARGOS NEXT MENARYS SAINSBURYS DUNNES STORES HOME BARGAINS TK MAXX MARKET LANE DEBENHAMS MANDEVILLE ROAD B&Q E ROAD Purpose built retail unit, constructed in This largely single storey building comprises a steel portal frame supporting a series of low pitched roofs finished with composite plastisol coated profiled steel sheeting. The external walls of the front elevation are finished with alternate courses of clay facing brick and fair face concrete blocks augmented in various locations with polyester coated aluminium curtain walling complete with sealed double glazed units. The other elevations have alternate bands of facing brick and fair faced Tenancy and Accommodation block work at low level with composite plastisol coated profiled steel cladding at high level. Internally the building is largely open plan with minimal fixtures and fittings however it does accommodate two blocks which provide office and staff welfare accommodation split over two floors. The main retail area is heated with oil fired warm heaters and the office accommodation has DX air conditioning units. Illumination is largely by T5 fluorescent lighting with daylight dimming. The store extends to 86,620 sq ft which includes first floor ancillary office space of 2,524 sq ft. The property occupies a site of approximately 8.94 acres and includes approximately 500 car parking spaces equating to a ratio of 1:173 sq ft. A building survey and condition report has been undertaken by the Watts Group Plc which is assignable to the purchaser and is available in the secure document library. BALTEAGH ROAD HOMEBASE POUND STRETCHER B&M BARGAINS MATALAN TESCO PFS HALFORDS HIGHFIELD ROAD HIGHFIELD ROAD TESCO The property is fully let to B&Q Plc for a period of 25 years from the lease commencement date, 2nd November 2001 with a lease expiry on 1st November The property benefits from 5 yearly upwards only rent reviews with the next review due on 2nd November The current rent passing is 1,000,000 per annum and the lease stipulates the property is to be reviewed to an 80,000 sq ft unit. On this basis the rent equates to per sq ft. A measured areas survey has been undertaken by Plowman Craven Ltd which is assignable to the purchaser and is available in the secure document library. Unit Tenant Use Area (sq ft) Area (sq m) Rent ( ) Lease Start Lease Expiry Rent Review Unit 1 B&Q pic Ground Floor - 84,096 7, ,000,000 02/11/ /11/ /11/2016 Marlborough Warehouse Retail Park First Floor - 2, Office Overall Total 86,620 8,047.3 Situation B&Q Craigavon sits adjacent to a 7,791 sq ft Halfords which together form Marlborough Retail Park. The subject property is situated adjacent to a Tesco Extra which along with the 490,000 sq ft Rushmere Shopping Centre & Retail Park form Craigavon Town Centre as set out in the Boundaries and Retail Designations Plan Rushmere Shopping Centre & Retail Park is home to circa 70 retailers and is anchored by Sainsbury s, Debenhams, Homebase and TK Maxx. Recently planning approval has been granted for an Omniplex Cinema in close proximity to Marlborough Retail Park which will add a late night leisure element to the retail offer.

5 Tenure Tenant Covenant Freehold B&Q is the largest home improvement and garden centre retailer in the UK and Europe and the third largest in the world. B&Q s owner, Kingfisher recently announced its financial results for the year to January 31st Although there was a drop in sales figures, total revenue still stood at 10.6bn. Pre-tax profits for this year equated to 715m. YE 28/01/2012 YE 29/02/2011 YE 30/02/2010 B&Q Plc GBP(000 s) GBP(000 s) GBP(000 s) Sales Turnover 3,710,400 3,711,700 3,792,400 Profit / (Loss) Before Taxes 203, , ,400 Tangible Net Worth 4,368,500 3,656,700 34,764,700 Net Current Assets (Liabilities) 3,585,900 2,895,900 2,926,200 Planning The property benefits from planning permission for all Class 1 retail uses. The original planning consent granted by the Department of Environment for bulky goods retail warehouse units including builder s supplies and garden centre (Application No. Investment Comparables N/2001/0375/RM, 11th July 2001) has since been superseded by Application No: N/2001/0376/F. The subject site and adjoining lands were designated Town Centre as part of the Craigavon Town Centre, Boundaries and Retail Designations Plan The surrounding lands are proposed for additional Open A1 retail and leisure users. Any retail development in the Craigavon Area will be focused within the new town centre development limit. For indicative purposes only Property Price Yield Date Lease Start Lease Expiry Rent Review Comments B&Q, Buncrana Road, % Q /06/ /06/ /06/2015 Size - 102,400 sq.ft. Londonderry million Rent - 132,400 Rent review - Upwards only, 5 yearly reviews to OMV B&Q, Greenland Road, % Aug /10/ /10/ /10/2014 Size - 108,737 sq.ft. Sheffield million Rent - 1,437,289 Rent review - Upwards only, 5 yearly reviews to OMV B&Q, Springlane, 7.75 Size-25,533 sq.ft. Malvern Wells million 6.22% Dec 2011 Aug 2026 Rent- 510,660 Rent Review - Unknown

6 Retail Warehousing in Craigavon EPC Marlborough Retail Park and Rushmere Retail Park form Craigavon Town Centre and is the dominant retail warehouse provision for the surrounding catchment. Marlborough Retail Park Class 1 Retail Permission The subject property is currently located within Marlborough Retail Park which also includes a 86,620 sq ft B&Q and a 113,738 sq ft Tesco Extra with an associated 8 pump filling station. The Retail Park benefits from open class retailing consent and rents range from 12 per sq ft to per sq ft. Rushmere Retail Park Class 1 Retail Permission Rushmere Retail Park sits opposite the subject property and provides over 130,000 sq ft of open class 1 retail accommodation. The Tenant line-up includes Matalan, B&M Bargains, Poundstretcher, Homebase, Currys, Harry Corry, Pets at Home, Argos, Next and Menary s. The headline rents are currently in the region of 17 per sq ft. Given the rental tone in the adjacent Rushmere Retail Park, we believe this investment offers good scope for rental growth. VAT The property has been elected for VAT purposes and therefore it is expected that the investment sale will be considered as a Transfer of a Going Concern (TOGC). Proposal We have been instructed to seek offers in excess of 11,450,000 (Eleven Million, Four Hundred and Fifty Thousand Pounds) reflecting an attractive net initial yield of 8.25% excluding VAT and assuming full purchasers costs at 5.80%.

7 Further Information Secure Document Library If you require access to the secure document library online or for further information please contact; Ben Turtle Director 1st Floor, Lesley Studios May Street, Belfast BT1 4NZ Tel: James Gulliford Director 33 Margaret Street London W1G 0JD Tel: Dervla Daly Surveyor 1st Floor, Lesley Studios May Street, Belfast BT1 4NZ Tel: Savills (NI) Limited for themselves and for the Vendors or Lessors of the property whose agents they are give notice that; i) these particulars are given without responsibility of Savills (NI) Limited or the Vendors or Lessors as a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Savills (NI) Limited cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective 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 accuracy of each of them; iii) no employee of Savills (NI) Limited has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; iv) VAT may be payable on the purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; v) Savills (NI) Limited will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. June 2013.