NEWPORT WEST RETAIL PARK

Transcription

1 NEWPORT WEST RETAIL PARK DOCKS WAY, NEWPORT NP20 2NZ PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

2 NEWPORT WEST RETAIL PARK Investment Considerations Attractive open A1 (part restricted) retail warehouse investment Located in the Cathedral City of Newport, with a substantial shopping catchment of approximately 310,000 people Situated on Docks Way, opposite Mendalgief Retail Park creating a critical mass of retail warehousing Development has started on the former Whiteheads Steelworks site to the north east of Docks way to provide 498 new homes in immediate proximity Extremely popular discount scheme Very affordable rents with a total current income of 471,125 pa reflecting a low average rent of psf 80% of the income secured to either Dun and Bradstreet 5A1 rated covenants or LIDL Tenants include LIDL, B&M and Home Bargains Attractive AWULT of approximately 6.3 years Comprises a total of approximately 37,826 sq ft Low site density 26% on a site of approximately 3.9 acres 203 car parking spaces providing an excellent ratio of 1:186 Outline planning for an A3 use pod of 2,012 sq ft We are instructed to seek offers in excess of 6,100,000 (Six Million, One Hundred Thousand Pounds) reflecting a net initial yield of 7.25% assuming the usual purchasers costs of 6.56%.

3 RETAIL WAREHOUSE INVESTMENT Fields Park Road Oakfield Road B4591 NEWPORT Queensway City Centre Commercial Street Clarence Plac 42 Usk Way Rodney Parade B4237 Chepstow Road Corporate Road George Street Victoria Av Bassaleg Road B4240 Risca Road Belle Vue Park B4237 George Street Lower Dock Street 42 Lysaghts Park wansea 3 M4 SWANSEA Neath A465 Port Talbot Brecon A438 A470 Merthyr Tydfil A465 Cardiff Barry A479 Brecon Beacons National Park Pontypridd A470 Caerphilly M4 A470 CARDIFF A4232 Penarth (M) 42 A465 Abergavenny Pontypool Cwmbrân NEWPORT A449 Weston-super-Mare M48 A449 M50 Ross-on-Wye A4137 Forest of Dean Chepstow M5 A41 GLOU M4 A433 3 Chipping M49 Sodbury Avonmouth M4 Pontshead M32 A4 A46 BRISTOL A420 M5 BristolA38 A4 A37 BATH A38 Gaer Park Parade Shakespeare Crescent Tredegar Park Gaer Park Hill Duffryn Drive Recreation Ground B4239 Recreation Ground Masefield Vale B4239 Lighthouse Road Gaer Road Cae Bry n ton Road B4237 Cardiff Road Bideford Road Maesglas Avenue Maesglas Road Southern Distributor Road Maesglas Crescent Recreation Ground NEWPORT WEST RETAIL PARK Monmouth CastleDrive Greenwich Road Port Road Docks Way Recreation Ground Mendalgief Road West Way Road Capel Crescent Potter Terrace Marion Street Alice Street Southern Distributor Road Alexandra Road Commercial Road Courtybella Terrace East Way Road River Usk Usk Way Southern Distributor Road Coronation Park LOCATION Newport is a Cathedral and University City in the county of Gwent, in south east Wales. The City is located 22.5 km (14 miles) north east of Cardiff 50 km (31 miles) north west of Bristol and 9.6 km (6 miles) south of Cwmbran. The City has a population of approximately 139,000 with a shopping catchment of approximately 310,000 people. Newport benefits from good road communications with access to junctions 26, 27 and 28 of the M4 connecting to Cardiff to the west and Bristol to the east. Newport Railway Station provides regular services to Cardiff Central, Bristol and London Paddington with a fastest journey time of 15 minutes, 20 minutes and 113 minutes respectively. Cardiff airport is located 40 km (25 miles) south west of Newport and is accessible via the M4. Cardiff airport has one terminal which sees over 1.9 million passengers per year travel to over 60 regular destinations. SITUATION Newport West Retail Park is situated on Docks Way, approximately 3.2 km (2 miles) east of J28 of the M4 and 1.6 km (1 mile) south of the town centre. Newport Railway Station is located approximately 3.2 km (2 miles) north of the retail park. The area is made up of mostly retail and residential uses including Mendalgief Retail Park (opposite) which is home to tenants including Next, Smyths Toys, and TKMaxx. NEARBY DEVELOPMENT The immediate area is an established retail residential location. Nearby developments will boost the local population and further improve the demographic. 1 Development has started at the former Whiteheads steelworks on a site comprising 39 acres just to the north east of Newport West Retail Park. The 75 million Tirion Homes development will deliver 498 homes, a primary school and a 50 bed residential care home. The first homes are projected to be available in Summer The homes will comprises a mix of 1,2,3 and 4 beds with a mix of rental and open market sale properties. The Whiteheads site is a brownfield area that was the former site of a steelworks in Newport. It is projected that the project will generate a total of up to 1,500 jobs and inject around 140 million into the local economy. 2 Monmouthshire Bank Sidings is an ongoing development adjacent to the Whiteheads Steelworks site. The development is being phased with planning consent for the development of 575 homes; up to now over 200 have been built.

4 28 East Retail Park International Timber Monmouthshire Bank Sidings Alexandra Docks 8 A4 DO CKS WA Y NEWPORT WEST RETAIL PARK Mendalgief Retail Park Whitehead Steelworks Site MEN DA L For identification purposes only. G IEF R OA D

5 RETAIL WAREHOUSE INVESTMENT RETAIL WAREHOUSING IN NEWPORT Newport West Retail Park Mendalgief Retail Park Newport Retail Park 28 East Retail Park Harlech Retail Park The prime discount out of town retail offer within Newport being situated opposite Mendalgief Retail Park gives the area critical mass. The park benefits from excellent car parking with a ratio of 1:186. Mendalgief Retail Park is located adjacent to the subject property. The park is currently fully let and comprises six retail Open A1 non-food units totalling approximately 86,000 sq ft. Occupiers include Next Clearance, TKMaxx, Pets at Home, Argos and Smyths Toys. Newport Retail Park lies 3 miles to the south east of the town centre on the other side of the River Usk. Newport Retail Park contains a substantially different retail offering with occupiers including Tesco, M&S, Boots, Asda Living, H&M, Next and Nandos. Rents on the park are currently between psf. 28 East Retail Park is located less than 5 minutes drive from Newport West Retail Park on Docks Way with occupiers including Staples, The Range, FW Home Stores, and KFC. 28 East is compromised due to its restricted bulky use and to it being located away from the critical mass of Newport West and Mendalgief retail parks. There are currently 4 vacant units on the park. Harlech Retail Park is located on Cardiff Road with occupiers including Tesco Extra, Homebase, Hobby Craft, Poundworld, Currys and McDonalds. The retail park is fully let with part open A1, part restricted use class. Rents on the park currently between psf.

6 RETAIL WAREHOUSE INVESTMENT DESCRIPTION Newport West Retail Park comprises a purpose built Lidl foodstore and a terrace of three purpose built retail warehouse units of brick construction with metal cladding beneath a pitched roof providing a total of approximately 37,826 sq ft of ground floor accommodation. The properties have a large sales area with ancillary/storage accommodation. To the rear of the units is the service yard, which is accessed via Docks Way. Substantial customer parking is in front of the units is accessed directly off Docks Way. There are 203 car parking spaces which provide an attractive ratio of 1:186 sq ft. Units 2 and 3 have licences in place for the addition of mezzanine floors. There is planning permission in place for a A3 pod development of 2,012 sq ft. (Further information available upon request). SITE AREA Approximately ha (3.389 acres), which provides a low site cover of approximately 26%. TENURE Freehold.

7 NEWPORT WEST RETAIL PARK PLANNING In January 1996 planning permission was granted for a retail development. Unit 1 benefits from open A1 consent, units 2,3 and 4 are restricted to non food retailing only. In March 2007 planning permission was granted for Unit 4 to permit ancillary non-perishable food retailing provided that they are ancillary to the primary use and shall not exceed 30% of the gross floor area of Unit 4. In June 2013 planning permission was granted for an A3 Use Class Unit of 2,012 sq ft and associated alterations to existing car park. The development must begin no later than 5 years from 20 June TENANCY Unit Tenant Area sq m Area sq ft Lease start Lease expiry Rent Review Rent pa (psf) 1 LIDL UK GMBH (t/a Lidl) ,336 19/04/ /04/ /04/ Tile & Bath Co (UK) Ltd ,390 25/03/ /03/ /03/ B&M Retail Ltd ,071 25/03/ /03/ /03/ T J Morris Ltd (t/a Home Bargains) ,029 26/06/ /06/ /06/ ,250 ( 12.50) 91,875 ( 12.43) 130,000 ( 12.91) 120,000 ( 11.97) Total 3, , ,125

8 RETAIL WAREHOUSE INVESTMENT COVENANT LIDL UK GMBH (Company No FC017929) B&M RETAIL LIMITED (Company No ) (Dun & Bradstreet rating: 5A1) TILE & BATH CO (UK) LTD (Company No ) (Dun & Bradstreet rating: 2A1) T.J. MORRIS LIMITED (Company No ) (Dun & Bradstreet rating: 5A1) The first Lidl stores were opened in Germany in 1973 and can now be found in nearly every country in Europe. Lidl established itself in the UK in 1994 and now operates from over 600 stores. B&M was established in 1978 and now operates from over 450 high street and out of town stores across the UK as well as under the JA Woll brand in Germany. Tile & Bath Co showrooms are a Welsh family owned business with over 50 years experience operating from 10 branches throughout South Wales. T.J. Morris Ltd was established over 30 years ago and now operates from over 370 stores throughout the UK. Lidl has a 4.4% market share of the UK Grocery Market (source Kantar World Panel). Lidl issued 48 planning applications for new supermarkets in Q and saw sales rise by 14.4% in Feb Feb Mar Mar Mar Mar Mar Mar June June June 2015 Turnover 30,722,000 34,162,000 Turnover 1,509,132 1,526,181 1,902,557 Turnover Turnover 1,058,398 1,277,323 1,472,432 Pre Tax Profit 1,488,000 1,668,000 Pre Tax Profit 123, , ,121 Pre Tax Profit Pre Tax Profit 110, , ,121 Total Net Worth 6,580,000 7,625,000 Total Net Worth 281, , ,372 Total Net Worth 538, , ,347 Total Net Worth 348, , ,987

9 EPC Available upon request VAT The property is elected for VAT. However, it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC) DATAROOM For access to the dataroom, please register at PROPOSAL We are instructed to seek offers in excess of 6,100,000 (Six Million, One Hundred Thousand Pounds) reflecting a net initial yield of 7.25% assuming the usual purchasers costs of 6.56%. FOR FURTHER INFORMATION OR TO MAKE ARRANGEMENTS FOR VIEWING PLEASE CONTACT: Andy Pointon andy.pointon@allsop.co.uk Lottie Hayward lottie.hayward@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD