LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% PA FIXED UPLIFTS

Transcription

1 LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% PA FIXED UPLIFTS 1

2 RAVENSIDE SPIRES MARKHAM ALMA LEISURE PARK Site boundary for illustrative purposes only. 2

3 INVESTMENT SUMMARY Chesterfield is the largest commercial centre in Derbyshire located 12 miles south of Sheffield with a primary catchment population of 266,000. Excellent location positioned on the 7 in an established, busy trading location for retail warehouse occupiers. Purpose built retail warehouse unit comprising 34,963 sq ft with 111 car spaces. Open non-food (excluding clothing, footwear and fashion). The income is secured to the 5 covenant of CDS (Superstores International) Limited. Unexpired lease term of 14.6 years expiring May yearly 2.5% per annum compound fixed uplifts. Freehold. Total passing rent of 288,322 pa, reflecting a very low 8.25 per sq ft relative to an estimated rental value of 9.50 per sq ft. Our client is seeking offers in excess of 4,329,000 (Four Million, Three Hundred and Twenty Nine Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects the following attractive yield profile, assuming 6.56% purchase costs. Net Initial Yield 6.25% Running Yield % Running Yield % Equivalent Yield 7.04% 3

4 Soresby Street THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS 65 A56 HALIFAX M62 LEEDS M62 Wakefield M62 M62 A63 64 HULL A63 Tennyson Ave Marsden Street B6543 B6057 B6543 B6543 Cowley Cl Brewery St Durrant Road Crow Lane CHESTERFIELD ewe Rochdale Bury M66 Oldham M62 M60 M6 MANCHESTER M56 M67 M60 Stockport A523 Macclesfield A523 A6 A53 Newcastle-under-Lyme M6 Stoke-on Trent A628 A6 Buxton A54 A53 Peak District National park Huddersfield A523 A52 6 A623 Barnsley Sheffield City Airport A57 SHEFFIELD 02 A57 ROTHERHAM 9 CHESTERFIELD A A A57 DONCASTER 8 (M) Mansfield A638 (M) 4 4 A631 SCUNTHORPE Gainsborough 56 5 A57 LINCOLN A46 A46 5 A631 A A46 Rose Hill West Boythorpe Avenue Rose Hill QUEENS PARK Park Road Rose Hill East Market Place Park Road New Street Elton Street Baden Powell Road Saltergate Glumangate Knifesmithgate High Street Low Pavement Vicar Lane New Beetwell Street 9 Markham Road Elder Way Holme Brook South Place Broad Pavement Burlington Street Cavendish Street Beetwell Street Stephenson Place Hipper Street Old Ship Ln RAVENSIDE MARKHAM B6543 Spa Lane Hollis Lane 7 Station Road Lordsmill Street Rother Way Mill Street Rother Way A632 Hady Hill Clayton Street A520 A38 DERBY A52 NOTTINGHAM A52 A52 A453 A606 Grantham THE SPIRES 7 LOCATION Chesterfield is an attractive historic market town in Derbyshire, situated on the, 12 miles south of Sheffield and 24 miles north of Derby. The town benefits from excellent communication links. The Range is positioned on the 7, close to its junction with the, providing easy access to an excellent road network including the, located 5 miles east of the property. The provides direct links to Sheffield (25 minutes), Nottingham (37 minutes), Leeds (55 minutes), Coventry (1h 10 minutes) and London (2 hours). Immediately west of the property is the 9 linking the town to Manchester (1h 28 minutes). Chesterfield benefits from an excellent rail network with frequent trains direct to London St Pancras in a fastest journey time of 1h 52 minutes and to Sheffield in 15 minutes. Chesterfield is served by 2 major airports. The closest being East Midlands Airport, which is the 11th busiest airport in the UK with approximately 4.5 million passengers per annum situated 35 miles (37 minutes) south of the town and Robin Hood Airport in Doncaster with approximately 1.25 million passengers per annum, positioned 35 miles (39 minutes) north east of Chesterfield. Both provide international and domestic flights. REGENERATION Chesterfield is benefiting from significant investment within a number of major schemes. CHESTERFIELD WATERSIDE A 320m scheme, 1 mile north of the property comprising, 1,500 new homes, 27,000 sq ft of Grade A office accommodation, leisure and hotel accommodation, and a network of open spaces. Construction to commence in The scheme is being developed by a joint venture between Chesterfield Borough Council and other developers. ELDER WAY A new leisure scheme within the town centre, to complete December The scheme comprises 6 new ground floor restaurant units, Premier Inn, Health and Fitness gym with refurbished public realm. The scheme is being developed by Jomast Developments. MARKHAM VALE A 70 acre industrial and logistics site 4 miles east of the property with outline planning consent for 750,000 sq ft of warehouse / industrial use. This scheme is being developed by a Joint Venture between Henry Boot Developments and Derbyshire Borough Council. SPIRE WALK Positioned immediately south of Spires Retail Park, a new Ford car dealership facility has planning consent on this gateway site to be developed by Perry s Motor Group. 4

5 7 Proposed Ford Car Dealership SITUATION The property is prominently located off the 7, close to the roundabout junction with the. The immediate location is a well-established out of town retail pitch and the subject property sits directly adjacent to TK Maxx and Home Bargains forming a very busy retail destination. To the north west is Ravenside Retail Park, Chesterfield s largest out of town retail offering comprising 130,000 sq ft with key tenants driving footfall to the area including Asda Living, B&M, Curry s / PC World, Debenhams and Next. To the south is Spires Retail Park, comprising a 55,000 sq ft B&Q plus Toys R Us, Xercise4less and a new unit being created for Go Outdoors. Further south is Alma Leisure Park, where occupiers include Cineworld, Nuffield Health, Nandos, Chiquito, Frankie & Benny s and McDonald s. There has been a substantial amount of new residential development in the immediate vicinity and a large cleared site sits adjacent to Spire Retail Park, which has consent for a new Ford car dealership. CATCHMENT AND DEMOGRAPHICS The total population within the Chesterfield primary catchment area is 266,000, significantly above average for towns of this size. The estimated shopping population for Chesterfield at 174,000 is also above average for towns of this size. In addition, Chesterfield is an important destination for tourists. The Peak District, one of the most popular national parks in the UK is situated immediately west of Chesterfield and attracts in the region of 10 million visitors per year (PeakDistrict. gov.uk). 5

6 RETAIL WAREHOUSE PROVISION CHESTERFIELD TK MAXX AND HOME BARGAINS Combined 40,768 sq ft Rent Range: psf RAVENSIDE 130,000 sq ft Rent Range: psf Tenant Profile: ASDA Living / Debenhams / Currys PC World / Next / B&M / Pets at Home / Maplin / Hobbycraft. 9 VICAR LANE SHOPPING CENTRE MARKHAM 20,000 sq ft Rent Range: psf Tenant Profile: ScS / Bensons / Jysk. THE SPIRES 123,000 sq ft Rent Range: psf Tenant Profile: B&Q / Toys R Us / Xercise4Less / Go Outdoors. WHEATBRIDGE QUEENS PARK 9 RAVENSIDE MARKHAM 7 A632 ALMA LEISURE PARK 75,614 sq ft Rent Range: 8.20 (Cineworld) psf (McDonalds) Tenant Profile: Cineworld / Nuffield Health / Nandos / McDonalds / Chiquito / Frankie & Benny s / Harvester. WHEATBRIDGE 53,450 sq ft Rent Range: psf Tenant Profile: Carpetright / Wickes / Dunelm Mill. THE SPIRES ALMA LEISURE PARK 7 MATALAN Unit Rent: 28,635 sq ft psf 6

7 14.6 YEARS UNEXPIRED WITH 5 YEARLY 2.5% PA FIXED UPLIFTS DESCRIPTION The property comprises a purpose-built retail warehouse totalling 34,963 sq ft, comprising 33,927 sq ft of ground floor accommodation and 1,036 sq ft at 1st floor. The building is of steel portal frame construction with elevations of brick work and profile cladding. Shared servicing is located to the southern edge of the property and accessed via a secure storage yard with a roller shutter door. The property benefits from 111 dedicated parking spaces, providing a car parking ratio of 1:306 sq ft based on the ground floor area. The total site area extends to approximately 2.01 acres (0.81 ha). TENURE Freehold TENANCY The property is let to CDS (Superstores International) Limited for a term of 20 years from 4th May 2012, expiring 3rd May 2032, providing 14.6 years unexpired. The current passing rent is 288,322 per annum, which equates to a very low 8.25 per sq ft. The rent is subject to 5 yearly 2.5% pa compound fixed uplifts. The property therefore produces the following guaranteed rental income: Rent Review Date Total Rent (Guaranteed) Rent ( per sq ft) 04/05/ , /05/ , /05/ , The lease repairing obligations are subject to a schedule of condition, which is available upon request. 7

8 TENANT COVENANT Founded in 1989, by Chris Dawson, The Range is one of the fastest growing retailers in the UK with over 140 stores nationwide. The Range continues to expand and remains an active retailer seeking to open 15 further stores in To date in 2017, The Range have acquired stores in Ipswich, Derry, Cannock and have submitted plans to develop a new headquarters in Plymouth with an adjoining superstore. In March 2017 the business commenced construction of a new 1.2 million sq ft distribution centre in Avonmouth. The most recent company accounts for CDS (Superstores International) Limited are set out below: 31 January January January 2014 Turnover 674,203, ,064, ,282,000 Pre Tax Profit 57,032,000 57,299,000 45,238,000 Net Worth 190,245, ,972, ,113,000 The company has a Dun & Bradstreet (D&B) Rating of 5, representing a minimum risk of business failure. RENTAL VALUE In our opinion, the current rent passing of 288,322 pa, reflecting 8.25 per sq ft, is reversionary with an estimated rental value in the region of 332,150 pa, reflecting 9.50 per sq ft. TK Maxx acquired one of the adjacent units comprising 25,767 sq ft in November 2012 at a rent of 9.38 per sq ft. Home Bargains acquired the adjacent unit comprising 13,377 sq ft for per sq ft in More recently, Matalan, extending to 28,365 sq ft and located in an inferior pitch 1 mile west of the property, re-geared in 2014 with a 15 year reversionary lease at a rent of per sq ft with a 12 month capital contribution providing a net effect rent of 9.43 per sq ft. Most recently, Go Outdoors have taken a 26,107 sq ft unit on Spires Retail Park at a headline rent of 9.38 per sq ft. PLANNING The planning consent is Open non-food (exlcuding the sale of clothing, footwear and fashion goods). Further details are available upon request. 8

9 VAT THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS The property is not elected for VAT. EPC The EPC rating is C-66. PROPOSAL Our client is seeking offers in excess of 4,329,000 (Four Million Three Hundred and Twenty Nine Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would provide the following yield profile based on purchaser s costs of 6.56% Net Initial Yield 6.25% Running Yield % Running Yield % Equivalent Yield 7.04% FURTHER INFORMATION Nick Richardson T M E Nick.Richardson@montagu-evans.co.uk Mark Girling T M E Mark.Girling@montagu-evans.co.uk Will Collins T M E Will.Collins@montagu-evans.co.uk Misrepresentation Act 1967 Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that: (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract. (ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever 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) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. September Design: Command D