5 Rise Shopping Centre BINGLEY BD16 1AW

Transcription

1 5 Rise Shopping Centre BINGLEY BD16 1AW PRIME FOOD ANCHORED RETAIL INVESTMENT FOR SALE 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 1

2 INVESTMENT SUMMARY Bingley is an affluent and attractive West Yorkshire market town, with a resident population of approximately 20, Rise is a refurbished, modern, open shopping centre, comprising approximately 59,500 sq ft and providing the only pedestrianised retail within the town. 5 Rise benefits from a convenience-led offer with main tenants including Co-Op, Home Bargains, Poundland and Greggs. Low rental tone of Zone A. Strong WAULT of 8.62 years to expiry (7.96 to break). 87.6% of the current income is secured against national multiple covenants. Strong occupational feedback received from key occupiers. Average weekly footfall of circa 34,600. Freehold. We are instructed to seek offers in excess of 8.42m (Eight Million, Four Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.5%, an equivalent yield of 8.1% and a reversionary yield of 8.2%. 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 2

3 LOCATION Bingley is an attractive market town in West Yorkshire, located approximately 16.8 miles west of Leeds, 4.2 miles east of Keighley and 3.2 miles west of Shipley. The town is served principally by the A650 and A657 providing the route west to Leeds and access to the M62, M1 and A1M motorways. A56 Colne A6068 A629 Eastburn A629 Keighley A65 Otley 5 Rise Shopping Centre A658 Bingley A650 Shipley A6120 A658 A660 Headingley A61 A58 A58 A64 Bingley Railway Station provides half hourly services from Bingley to both Leeds and Bradford, Forster Square. Additionally there are 4 trains an hour towards Skipton. The trains to Leeds have a journey time of approximately 20 minutes. A629 Bradford A650 A6036 A6110 M621 Leeds M621 M1 Bingley is located 10 miles drive from Leeds Bradford Airport and 54 miles drive from Manchester airport. A646 Hebden Bridge A646 Halifax A58 M62 Morley M62 M1 SITUATION 5 Rise is centrally situated within Bingley fronting the Main Street with rear access from Chapel Lane and Midland Hill providing direct access to Bingley Railway Station (approximately 5 minutes walking distance). In addition to the bus stops located immediately to the front of the shopping centre, 5 Rise offers shoppers excellent access to public transport links. 5 Rise provides the dominant retail offer in the town, with other notable occupiers in close proximity including JD Wetherspoon and Sainsbury s Local. The former Bradford & Bingley HQ opposite the Centre has now been demolished. A new Aldi store will shortly open to the rear of the Centre at the top of Midland Hill. 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 3

4 DEMOGRAPHICS Bingley offers a resident population of just under 20,000 and a population within 6.2 miles of the subject property of 406,750. Bingley has a similar market size and consumer profile of other affluent Yorkshire towns including Selby, Guisborough and Ripon. Bingley s ACORN profile is dominated by secure families (18.8%) and blue collar roots (13.7%). The town has more wealthy executives and flourishing families than the Yorkshire and Humber average. 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 4

5 DESCRIPTION 5 Rise is arranged as an open-plan shopping centre, originally constructed in 1970 and comprehensively refurbished and officially re-opened in December 2009, offering 59,500 square feet of single level retail accommodation arranged across 18 individual shop units. The centre is anchored by a Coop food store, with other notable tenants including Home Bargains, Poundland, Card Factory, Greggs, Santander and Boots. The Bingley Library is located upon Chapel Lane directly underneath Home Bargains, and offers approximately 6,000 square feet community facility which is let on a 125 year lease at a peppercorn to Bradford Metropolitan District Council. 5 Rise is adjacent to the rail station, several bus stops, as well as the main town car parks. The retail units including the food store are arranged along two terraces with a central open mall. Servicing is accessed via Burrage Street and Ferncliffe Road. The retail units are all arranged with ground floor sales and approximately 50% of the units have additional first floor ancillary accommodation. The retail units are of two-storey, part concrete frame and part steel frame construction. The elevations are a mix of rendered blockwork and glazing with powder-coated aluminium frames. The roofs are a mix of bitumen and felted flat roofs together with steeled decking. All units provide good quality, modern, unrestricted retail space. 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 5

6 TENANCY SCHEDULE 5 Rise is multi-let in accordance with the tenancy schedule and produces a current gross rental receipt of 680,500 pa. The current net rental after shortfalls on vacancy is 668,132 pa. Unit Address Tenant Ground Flr (Sq ft) ITZA 1st Flr/ Basement (Sq ft) Term Lease Start Date Lease Expiry Date Break Rent Review Zone A Passing Rent ERV (ZA/sq ft) 1 A&B Main Street Santander 2,360 1, /02/14 04-Nov Nov-19 05/11/ , ,390 17,906 4, No return frontage. 5% ITZA adjustment. Break 05/11/2019 1C 157 Main Street Yorkshire Building Society 1, /04/12 21-Apr-22 22/04/ , ,080 10,040 2, Less 5% no anc. 2 to 4 Poundland Ltd T/A Poundland 5 Sportswift Ltd T/A Card Factory 6 T J Morris Ltd T/A Home Bargains 3,935 2,087 1, /09/15 13-Sep Sep , ,045 tbc 11,123 1, Less 15% Break end of the 3rd year subject to 6 months notice. 5% ITZA adjustment ERV pa Rates Payable Annual S/C Annual Insurance (April) 1,550 1, /07/15 19-Jul , ,925 11,902 4, , /10/09 28-Oct-24 31/10/ , ,500 30,843 13,394 2,174 0 Overall rate.rent to 75,000 if alcohol sold 7 YMCA 1, , /09/15 13-Sep-20 26, ,925 5,189 1,352 0 Under offer to YMCA. 26k pa by way of new lease full details tbc. To be assesed for RV 7A Vacant 1, , ,925 4, ,485 To be assesed for RV 8A Greggs PLC T/A Greggs /10/09 08-Oct-19 09/10/ , ,340 5,796 1, Less 5% no anc. 8B Vacant ,500 6, , Main Street Adele Hepworth T/A Myrtle Perks 9A Timpson Ltd T/A Timpsons 10 Co-operative Group Ltd T/A Co-op 11A 10 Chapel Lane Proctor Night Clubs Ltd T/A Bijou 11B 12 Chapel Lane Done Brothers (Cash Betting) Ltd T/A Bet Fred 12 1 Burrage Street Andrew Boggett T/A Off the Tap 14 Chapel Lane Harvester(Bingley)Ltd T/A Harvester 18 Chapel Lane Bradford MDC T/A Bingley Library 143 Main Street National Westminster Bank PLC T/A Nat West 145 Main Street Photographic Retail (2008) Ltd T/A Max Spielman 147/9 Main Street Boots(UK) Ltd T/A Boots /01/15 18-Oct , ,840 7,245 1, /01/08 15-Jan-23 16/02/ , ,700 2, Landlord Shortfall pa Comments 11,915 5, /09/09 22-Sep-29 23/09/ , ,780 72,450 31,211 5,121 0 Overall rate. 1, /06/15 16-Jun Jun , ,550 5,692 2, Less 5% no anc. 6 months rent free. Tenants break end of 3rd year 1, /10/09 08-Oct-19 09/10/ , ,350 4,554 2, Less 5% no anc /03/15 06-Mar , ,004 4,968 1, Less 5% no anc. Expired 08/03/15 assumed holding over 2,625 3, /12/14 22-Dec-24 23/12/19 25,000 25,000 6,624 6,706 1,089 0 Overall rate. 6, /12/09 02-Dec ,493 12,210 1,801 0 Sold off. 1, /09/14 23-Sep Sep , ,730 10,764 3, Break end of 3rd year subject to 6 months notice /08/12 19-Aug , ,450 3,271 1, Less 5% no anc. 1,514 1,009 1, /09/15 31-Aug , ,000 13,041 2, New lease agreed 5 yrs from 1st Sep ,000pax Total Annual Rent 680, , , ,664 19,159 12,368 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 6

7 For illustration purposes only. opening October TIMPSON N 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 7

8 ERV We consider the rental tone for the property to be in the order Zone A, producing a total ERV of 728,034 per annum, and providing an excellent platform for medium-term rental growth. INCOME ANALYSIS Approximately 87.6% of the current rental income is secured against national multiple retailers. Net income profile to lease expiry Net Income by covenant 21% 32% 0-5 years 5-10 years 10+ years 87% 13% National Local 47% COVENANTS Tenant Company No. Year Turnover Net Profits Net Worth United Co-operatives Retail Ltd 525R ,433,000, ,000,000 - TJ Morris Ltd (Home Bargains) ,277,324, ,760, ,875,000 Santander UK plc n/a 1,399,000,000 12,006,000,000 Sportswift Ltd (Card Factory) ,676,000 62,320,000 58,862,000 Poundland Ltd ,803,000 41,017,000 96,235,000 Done Brothers (Cash Betting) Ltd (Bet Fred) ,111,000 13,967, ,429,000 National Westminster Bank plc (NatWest) n/a 2,643,000,000 16,009,000,000 Boots (UK) Ltd ,340,000, ,000, ,000,000 Greggs plc ,691,000 49,743, ,982,000 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 8

9 TENURE Freehold. ASSET MANAGEMENT Utilise the original planning permission granted when the shopping centre was refurbished and extended to convert existing office accommodation above Santander, totalling approximately 7,500 square feet into residential apartments. Re-let remaining two vacant retail units completing the letting programme and improving the income return. Consider the possibility of extending the unit located at 151 Main Street, and currently let on flexible terms, in order to secure a major branded coffee operator. MANAGEMENT SERVICE CHARGE The operating costs of the shopping centre are covered by a comprehensive service charge. The service charge year is from 1 October to 30 September. Last years service charge total was 94, pa and the budget for this year is 99, pa. Based upon the current budget, service charge payable by the tenants amounts to 1.85 per sq ft. There are no shortfalls as a result of service charge caps. 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 9

10 PLANNING Planning consent for the development was granted by the City of Bradford Metropolitan District Council in July 2008, under application number 07/08080/FUL for the following:- Alterations and extensions to the existing shopping centre in two phases to provide refurbished and extended shopping facilities, a relocated library and conversion of the existing offices to 10 x 1 bedroom residential apartments in Phase 1, and upper storey extensions to provide residential accommodation comprising an additional 62 x 1 bed and 14 x 2 bed apartments in Phase 2. WARRANTIES Full collateral warranties are in place for 12 years from October 2009 from the Architect, Structural Engineer, Services Engineer and Contractor. EPC EPC certificates for all units are available on request. VAT The property is elected for VAT and it is proposed that the sale be structured as a TOGC. PROPOSAL Offers are sought in excess of 8.42m (Eight Million, Four Hundred and Twenty Thousand Pounds) for our client s freehold interest, subject to contract and exclusive of VAT. An acquisition at this level would reflect the following yield profile, assuming purchaser s costs of 5.8%:- Net Initial Yield 7.5% Net Equivalent Yield 8.1% Net Reversionary Yield 8.2% 5 RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 10

11 FURTHER INFORMATION For further information please contact:- Jonathan Milburn / Adam Robinson Jackson Criss jonm@jacksoncriss.co.uk / adamr@jacksoncriss.co.uk Paul Lancaster 4 Urban Consulting Ltd paul.lancaster@4urban.co.uk DESIGNED BY TCC Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0075. September RISE SHOPPING CENTRE, BINGLEY BD16 1AW PRIME RETAIL INVESTMENT FOR SALE 11