SUBSTANTIAL, WELL SECURED SOUTH WEST RETAIL INVESTMENT OPPORTUNITY THE LOCK CANAL WALK, SWINDON

Transcription

1 SUBSTANTIAL, WELL SECURED SOUTH WEST RETAIL INVESTMENT OPPORTUNITY THE LOCK CANAL WALK, SWINDON

2 INVESTMENT SUMMARY Swindon is a popular commuter town in South West England located 81 miles (130km) west of London The town has a large catchment population and benefits from a strong economy Located on an intersection of The Parade / Canal Walk and Regent Street, Swindon s prime retail thoroughfare The property comprises a substantial town centre holding in prime pitch, 100% fully let to 7 national multiple tenants HSBC, JD Sports, Burton / Dorothy Perkins, Card Factory, Coffee #1, Vodafone and Evapo WAULT of 4.7 years to expiry and 4.6 years to tenant break Total net current income of 854,273 pax PROPOSAL We are seeking offers in excess of 9,420,000 (Nine Million Four Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT for the freehold interest reflecting a net initial yield of 8.50% allowing for the usual graduated purchaser s costs.

3 PAGE 3 THE LOCK CANAL WALK, SWINDON, SN1 1LD LOCATION Swindon is the principal commercial and administrative centre of Wiltshire, situated immediately to the north of the M4 motorway between Reading and Bristol. The town is located approximately 81 miles (130km) west of London and 40 miles (64km) to the east of Bristol. Swindon benefits from excellent communication links to the national road network with the town centre being accessed directly via Junctions 15 and 16 of the M4 motorway. The A417/A419 connects Swindon to the M5, Cheltenham and Gloucester. Swindon is located on the Great Western Railway line with fast and frequent services from London Paddington. The average journey is 1 hour 5 minutes with a fastest journey time of 51 minutes. On an average weekday, there are 82 trains to London per day. There are also frequent trains to major centres, including Birmingham, Bristol, Cardiff and Reading. Newport M4 Cardiff Taunton Westonsuper-Mare M5 Hereford Mommouth Bristol Glastonbury Yeovil M50 Worcester Gloucester Bath M5 Cotswolds CHELTENHAM Cirencester Chippenham Stratford -upon-avon SWINDON Salisbury M4 Winchester Southampton M40 Oxford M27 Basingstoke M3 NORTHAMPTON M1 Milton Keynes Reading Portsmouth Chiltern Hills Bedford M25 Guildford Luton Worthing A1(M) LONDON Croydon M23 Brighton Ca

4 CATCHMENT & DEMOGRAPHICS Evening Star Lane Station Rd Alfred St Manchester Rd Gladstone St Graham St Rosebery St PAGE 4 THE LOCK CANAL WALK, SWINDON, SN1 1LD A4289 Swindon s primary catchment population is 516,000 people, ranking the town 36th out of the top 200 PMA centres. The primary catchment area for Swindon extends to Marlborough to the south, Chippenham to the west and Oxford to the north east. Swindon is estimated to benefit from above average population growth of 0.9% per annum in the period The population is relatively young with age brackets between 0-17 years and being above the national average. Swindon ranks 26th in terms of the volume of retail spend available in the catchment area and is forecast to see above average growth in the available pool of comparison spending over the period of Grosveror Rd The Park William St Hillside Ave Bristol St Albion St Faringdon Road Radnor St Exeter St A4289 Milton Rd Tennyson St Curtis St Shelley St Okus Rd Villett St Dryden St SWINDON Exmouth St Bowood Rd Clifton St Holbrook Way THE LOCK Dixon St Stafford St Hythe Rd Maidstone Rd Kent Rd Commercial Rd Crombey St Globe St Kimmerfields Development Fleming Way Regent St Eastcott Hill North St South St Union St Beckhampton St Hunt St Victoria Rd Euclid St Albert St Bathurst Rd York Rd Wood St Plymouth St Groundwell Rd Queen s Park High St Southampton 36TH RANKING TOWN OUT OF THE TOP 200 PMA 26TH RETAIL SPEND RANK IN TERMS OF VOLUME SPEND SITUATION The subject property is prominently situated at the junction of Canal Walk, Regent Street, The Parade and Bridge Street. The crossroads is a busy hub at the western end of Regent Street and in very close proximity to the main entrances of the Brunel Shopping Centre. The property is within a few minutes walking distance from Swindon Railway Station and the town bus station. Nearby occupiers include Topshop / Topman, Metro Bank, River Island, Lush, Primark, Schuh, Footasylum, Miss Selfridge and Wilko.

5 PAGE 5 THE LOCK CANAL WALK, SWINDON, SN1 1LD SWINDON ECONOMY 110,000 GVA CONTRIBUTION PER WORKER 1 BILLION CONTRIBUTING TO THE ECONOMY Swindon continues to have one of the best-performing economies in the country, according to the latest Centre for Cities Outlook report. Swindon is ranked 7th in the UK when it comes to the rate of productivity per worker up three places from a year ago. In addition, the town s work force is highly skilled. The town is 4th in the UK for lowest percentage of residents with no formal qualifications. The town is a major distribution hub for employers such as WH Smith and DHL. Honda, Nationwide Building Society and Zurich Financial Services also provide an abundance of jobs in the town, and the council s 750m regeneration programme is focused on attracting new businesses, via the construction of new office premises as well as homes and improved leisure facilities. Other companies located in Swindon include BMW / Mini, the electronics company Intel, energy companies Npower and RWME Generation UK Plc, the fuel card and fleet management company Arval, pharmaceutical companies such as Canada s Patheon and the United States-based Catalent Pharma Solutions and French medical supplies manufacturer Vygon (UK) Ltd and the head office for the National Trust and the UK Space Agency. SWINDON REGENERATION Forward Swindon, a limited company owned by Swindon Borough Council, is responsible for devising a masterplan for the regeneration of the town in order to improve infrastructure, business offer and public realm. The 350m regeneration plan currently underway in the town at Kimmerfields (formerly known as Union Square), is within close proximity to the subject 5 TH LARGEST GROWTH IN THE FINANCIAL SERVICES NATIONALLY 14 TH HIGHEST AVERAGE WAGES 3 RD HIGHEST GROWTH IN HOUSING STOCK property. This is a mixed use, office led scheme, incorporating circa 650,000 sq ft of offices, 450 residential units, a new bus station, as well as a hotel and ancillary facilities. The first phase has been completed by Muse Developments, providing an assisted living residential building, 850 space multi-storey car park and 4 storey NHS health centre. 3 RD HIGHEST EMPLOYMENT RATE 4 TH HIGHEST SHARE OF GRADUATES IN HIGH SKILLED OCCUPATIONS

6 DESCRIPTION PAGE 6 THE LOCK CANAL WALK, SWINDON, SN1 1LD The property comprises a modern, unbroken parade of seven retail units constructed in The units provide well-configured, open plan retail floor space with servicing via a yard to the rear with dock level loading bays. The service yard area is within the freehold title but has been adopted by the local authority and is predominantly maintained at public expense. Most of the retailers lease the ground and first floor space. However there is vacant first floor space above Unit 6. The second floor is accessed via a fire escape ladder and therefore currently not demised. There are no business rates associated with this space or the first floor vacant space above HSBC. RETAILING IN SWINDON Town centre retail floorspace in Swindon is estimated at 1.10 million sq ft. The prime pitch extends along The Parade and Canal Walk, where the subject property is located. Occupiers here include Topshop / Topman, NatWest, Metro Bank, River Island, H&M, Superdrug, Foot Asylum, Vodafone, Costa, Card Factory, Schuh and Deichmann. Regent Street is a busy thoroughfare linking Swindon s retail core to Regent Circus, a leisure scheme redeveloped in On its southern side Regent Street forms part of The Brunel Shopping Centre, Swindon s principal shopping centre. It is split into two covered precincts Brunel Plaza and Brunel Arcade, which are linked at first floor level. Anchor tenants include Sainsbury s, Boots and Argos and other occupiers include McDonalds, Pandora, Lush, Paperchase, Waterstones, Costa, EE, Greggs, Warehouse and H. Samuel to name a few.

7 SCHEDULE OF TENANCIES & ACCOMMODATION PAGE 7 THE LOCK CANAL WALK, SWINDON, SN1 1LD Unit Tenants Areas Description sq ft sq m Lease Start Date Lease Expiry Date Option To Break Next RR Current Rent Service Charge YE 31/12/2019 Comments Unit 1A Unit 1B/1C Unit 1D Unit 2 Unit 3 Unit 4/5 Unit 6 Coffee #1 Limited Vodafone Limited Evapo Limited Sportswift Limited t/a Card Factory Burtons / Dorothy Perkins Properties Ltd JD Sports Fashion Plc HSBC Bank Plc Net Sales 1, Ground ITZA 717 N/A First Sales First Ancillary TOTAL 2, Net Sales 1, Ground ITZA 1,370 N/A First Ancillary 1, TOTAL 3, Net Sales Ground ITZA 457 N/A First Ancillary 1, TOTAL 1, Net Sales 2, Ground ITZA 1,087 N/A First Ancillary 2, TOTAL 5, Net Sales 2, Ground ITZA 1,078 N/A First Ancillary 2, TOTAL 5, Net Sales 5, Ground ITZA 2,254 N/A First Ancillary 5, TOTAL 11,268 1,046.9 Net Sales 3, Ground ITZA 1,333 N/A TOTAL 3, /12/ /12/ /12/ /12/ ,000 7,762 09/01/ /01/ /01/ ,000 9,872 15/02/ /02/ /02/ ,000 5,729 27/02/ /02/ ,000 10,076 24/06/ /06/ ,000 10,573 15/10/ /10/ /10/ ,000 21,223 Break date at the sixth, eleventh and sixteenth anniversary of the lease. Break date on the first and third anniversary of the lease subject to three months prior written notice. Break option has been removed in exchange for six months rent free which is to be topped up by the vendor. Lease guaranteed by Redcastle Limited (annual sales of 90.1m). 01/07/ /01/ /01/ ,000 6,161 Reversionary lease in place from 01/07/2019. Unit 6 First Floor FF Void 3, Second Floor SF Void (accessed) 10, SF Void (off plan) 2, ,782 4,532.1 Gross Current Income Landlord Shortfalls Net Current Income 855,000 71, ,273 Landlord shortfall of 727 comprising of service charge ( 249) and insurance ( )

8 PAGE 8 THE LOCK CANAL WALK, SWINDON, SN1 1LD LEASE EXPIRY PROFILE 20% 0-1 Year 1-5 Years - 220, Years - 465, Years - 170,000 54% By Income 26% COVENANT STRENGTH The Lock Tenants Company No Year Ending DnB Rating Turnover Profit / Loss Tangible Net Worth Coffee # /09/2017 2A 1 27,164,756 1,555,510 6,012, /03/2017 5A 1 5,843,900, ,500,000 3,128,100, /01/2017 5A 1 379,540,000 81,718,000 62,010, /08/2017 N2 18,196, , , /02/2018 5A 1 3,161,400, ,500, ,400, /12/2017 5A 1 19,760,000,000 2,370,000,000 37,526,000,000 TENURE Freehold. WAULT Weighted Average Unexpired Lease Term of 4.7 years to expiry and 4.6 years to tenant break. GROSS INCOME 855,000 pax. NET INCOME 854,273 pax. Evapo /09/2017 C ,390

9 LANDLORD SHORTFALLS There is a 727 pax landlord shortfall representing the service charge and insurance for the vacant first floor space located above Unit 6 (HSBC). SERVICE CHARGE The service charge for the subject property is operated by JLL under a single schedule with the tenants having apportioned percentage contributions based on gross lettable floor area occupied. The service charge period will run for the 2019 calendar year from 01/01/2019 until 31/12/2019 with a current budget of 71,645 (exclusive of VAT) which devalues to approximately 1.47 per sq ft. EPC Energy Performance Certificates (EPC s) are available on request. VAT The property has been elected for VAT and any disposal will be by way of a Transfer of a Going Concern (TOGC). PAGE 9 THE LOCK CANAL WALK, SWINDON, SN1 1LD

10 FURTHER INFORMATION For further information, please contact: DAVID FREEMAN T: E: PATRICK OVER T: E: ED SMITH T: E: SIMONA MALINOVA T: E: PROPOSAL We are seeking offers in excess of 9,420,000 (Nine Million Four Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT for the freehold interest reflecting a net initial yield of 8.50% allowing for the usual graduated purchaser s costs. MISREPRESENTATION: Green & Partners LLP, these particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office / November 2018 Designed and produced by THE GROUP