OLD TIFFIELD ROAD NN12 6PF FREEHOLD RETAIL WAREHOUSE INVESTMENT
2 INVESTMENT SUMMARY Towcester is an affluent market town in Northamptonshire Highly accessible location at the intersection of the & A43 providing convenient access to the M1 motorway located 7 miles (11.5 km) to the north east Prominent site situated within the only out-of-town retail cluster in the vicinity, with Tesco, Aldi and Countrywide all trading in close proximity Modern solus retail warehouse unit comprising 20,959 sq ft (1,947 sq m) with 93 car parking spaces, equating to a ratio of 1:225 per sq ft Let to the strong covenant of B&M Retail Limited (5A1 with Net Worth in excess of 281m) via an assignment from Homebase until 28 September 2028 (an unexpired term in excess of 13.3 years) Passing rent of 272,000 per annum, equating to 12.98 per sq ft Wide bulky goods planning consent Freehold We are instructed to seek offers in excess of 3,800,000 (Three Million, Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level will reflect a Net Initial Yield of 6.75% after allowing for normal purchaser s costs of 5.80%.
3 LOCATION Towcester is an affluent market town in Northamptonshire located approximately 10 miles (16 km) south west of Northampton, 16 miles (25.75 km) south east of Daventry and 15 miles (24 km) north of Milton Keynes. The town benefits from good transport links being situated at the intersection of the and A43 in close proximity to Junction 15A of the M1 motorway which lies 7 miles (11.5 km) to the north east. The A43 dual carriageway provides a direct link to the M1 and Northampton to the north east, and Banbury and the M40 motorway to the west, via the A422. The further provides convenient links to Daventry & Rugby via the A45 to the north and Milton Keynes to the south. Rail services are available from Northampton and Milton Keynes overground stations offering frequent services into Central London with a fastest journey time of approximately 56 minutes and 34 minutes respectively. M1 CORBY BIRMINGHAM M6 SOLIHULL M42 COVENTRY A14 M42 A46 A45 RUGBY REDDITCH ROYAL LEAMINGTON SPA A435 A45 NORTHAMPTON A46 A423 M40 TOWCESTER A43 A422 MILTON A44 KEYNES A429 CHELTENHAM A44 A41 A40 A417 OXFORD A40 A419 MAPS FOR APPROVAL A34 A6116 A1(M) A141 A45 A14 A1 A14 A6 A421 A10 A1 BEDFORD A6 A10 A1(M) M1 STEVENAGE LUTON A41 A10 M25 M25 A1 M40 HIGH WATFORD WYCOMBE M11 M1 SWINDON M25 WEMBLEY LONDON READING M4 SITUATION The property is situated in a highly prominent position on Old Tiffield Road in close proximity to the busy roundabout junction of the and A43, the main arterial road between the M1 and M40 motorways. TOWCESTER RD A43 NORTHAMPTON RD The site lies within the only out-of-town retail cluster in Towcester, with the critical mass of the area significantly enhanced by the presence of the adjacent Tesco foodstore comprising approximately 24,420 sq ft (2,269 sq m). Aldi and Countrywide both trade from a modern two unit scheme situated on Greens Road on the opposite side of the. In addition there is a Porsche dealership located on Old Tiffield Road close to the subject property. A43 TOWCESTER
4 DEMOGRAPHICS Towcester benefits from a particularly affluent district population with an estimated 418,888 people living within 12.4 miles (20 km), and 17.89% of the urban population representing Symbols of Success within the Mosaic Consumer Classifications compared with the GB average of 9.70% (Focus). The area is characterised by an over-representation of working adults categorised in the highest AB class groupings (29.6% of the district population), comprising those employed within higher and intermediate managerial, administrative and professional roles. Further demographic and economic indicators which demonstrate the strength of the catchment population include levels of car ownership and dwelling owner occupation significantly above the national average. There are major development plans for Towcester which will significantly increase the local population over the next few years. Having recently secured outline planning permission, the proposed Towcester Southern Extension will comprise 2,750 new homes, together with new schools, hotel and leisure facilities, employment uses and a new bypass to the south of the town. The Section 106 agreement was signed in March of this year and, if the detailed plans are approved, work is envisaged to begin at the end of 2015. ACCOMMODATION The property provides a gross internal area (GIA) of approximately 20,959 sq ft (1,947 sq m). OLD TIFFIELD ROAD DESCRIPTION The property comprises a modern purpose built solus retail warehouse of steel portal frame construction with block / brickwork and metal profile clad elevations, below a pitched roof incorporating translucent panels. The property is rectangular in shape and provides ground floor sales area, ancillary storage and customer WC s, with office accommodation, kitchen and staff facilities located at first floor level. Internally, the store is fitted out to B&M s corporate specification. Externally there is a garden centre situated to the left of the unit comprising approximately 6,852 sq ft (637 sq m) together with 93 surface car parking spaces situated to the front of the property, equating to an attractive ratio of 1:225 per sq ft. Customer access and egress to the site is via Old Tiffield Road. Servicing is to the rear of the subject property and separately accessed from Old Tiffield Road. The total site area is approximately 1.97 acres (0.8 ha) with a low site coverage of approximately 24%. TENURE Freehold. TENANCY The property is let in its entirety via an assignment from Homebase Limited to B&M Retail Ltd (company number 1357507) on a lease expiring on 28 September 2028. The current passing rent is 272,000 per annum, equating to 12.98 per sq ft. The lease is drawn on Full Repairing and Insuring terms and is subject to five yearly upward only rent reviews to Open Market Value, with the next review due in September 2018.
5 COVENANT B&M was originally founded in 1978 and has become one of the UK s fastest growing discount retailers, opening its 300th store in 2012, specialising in the sale of discount goods including homeware, clothing, food, toiletries, pet products. The company was acquired in 2004 by Simon and Bobby Arora with Clayton, Dubilier and Rice, a US Private equity firm, acquiring a significant stake in the business in 2013. B&M listed on the London stock exchange in 2014, in part, to support its on- going growth plans both in the UK and Europe. The listing followed B&M s acquisition of a majority stake in German discount retailers JA Woll. B&M Retail Limited (company number 1357507) has a current Dun & Bradstreet rating of 5A1, reflecting a minimum risk of business failure. The most recent financial results for B&M are summarised below: March 2014 (000 s) December 2012 (000 s) December 2011 (000 s) Sales Turnover 1,509,132 935,229 712,572 Pre-Tax Profit / (Loss) 123,398 88,323 51,702 Tangible Net Worth 281,228 171,867 105,539 PLANNING Planning permission for the original development was granted in December 2002 (reference S/2002/1069/P) for the construction of a nonfood retail unit and garden centre together with vehicle access, service yard, parking and associated landscaping. The property benefits from a wide bulky goods consent. A copy of the planning consent is available upon request. VAT VAT will be payable on the sale, however, we anticipate that the sale will be treated as a Transfer of a Going Concern (TOGC). EPC The Energy Performance Certificate rating for the unit is B46. A copy of the EPC is available upon request.
6 PROPOSAL We are instructed to seek offers in excess of 3,800,000 (Three Million, Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level will reflect a Net Initial Yield of 6.75% after allowing for normal purchaser s costs of 5.80%. CONTACTS For further information or to arrange an inspection please contact: RICK MCINTOSH-WHYTE 020 7255 8064 rdmw@rapleys.co.uk MARTIN CAREY 020 7255 8085 mic@rapleys.co.uk REBECCA JAMES 020 7255 8040 rcj@rapleys.co.uk Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey - Crown Copyright 2001. Licence No. 100017302 and Crown Copyright, All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. June 2015 Designed and produced by THE GROUP www.completelygroup.com JUNE 2015 13392.001