ENTER MATALAN & FARMFOODS SOUTHTOWN ROAD, GREAT YARMOUTH, NR31 0JB. Open A1 Retail Warehouse Investment Opportunity

Transcription

1 ENTER MATALAN & FARMFOODS SOUTHTOWN ROAD, GREAT YARMOUTH, NR31 0JB Open A1 Retail Warehouse Investment Opportunity

2 MATALAN & FARMFOODS SOUTHTOWN ROAD, GREAT YARMOUTH INVESTMENT SUMMARY Great Yarmouth is a popular Norfolk seaside town, 20 miles east of Norwich. Over 5 million people stay overnight in the town each year, with tourism generating over 530 million annually. Great Yarmouth benefits from having a captive catchment population due to its distance from competing retail centres. The subject property is situated in a prominent and accessible location at the junction of Southtown Road and the 43 Bridge Road. The property is let to Matalan for a further 8.75 years at a rent of 389,468 per annum, equating to a low rate of per sq ft. Farmfoods have sub-let circa 10,000 sq ft from Matalan and there is the opportunity to agree a direct lease with them. The property benefits from having a fully open A1 planning consent, including the sale of food. The property occupies a large site of 2.9 acres, giving the potential for further development in the future. We are instructed to seek offers for the property based on an attractive net initial yield of 8.00% (assuming purchaser s costs at 6.57%), giving a purchase price of 4,569,000 (Four Million and Five Hundred and Sixty Nine Thousand Pounds), subject to contract and exclusive of VAT.

3 LOCATION Great Yarmouth is a popular seaside resort on the Norfolk coast situated at the mouth of the River Yare. The town is located approximately 20 miles east of Norwich, 54 miles north of Ipswich and 133 miles north-east of London. The town benefits from good road communications with the linking Great Yarmouth to Lowestoft and Ipswich to the south and the A47 providing access to Norwich to the west. There is a regular rail link to Norwich where services are available to London Liverpool Street, with a journey time to London of approximately 2½ hours. Norwich Airport is located 22 miles to the west of Great Yarmouth via the A47. Stamford Oundle Spalding Boston Peterborough King s Lynn Wisbech Swaffham Downham Market Fakenham Thetford Norwich Diss Cromer GREAT YARMOUTH Beccles Lowestoft MILL ROAD JONES WAYS MARSH ROAD PASTUER ROAD ACLE NEW ROAD GREAT YARMOUTH MATALAN & FARMFOODS STATION ROAD SOUTHTOWN ROAD NORTH QUAY BRIDGE RD NOR T H QUAY GEORGE STREET FULLER HILL HOWARD S TREET SOUTH QUAY KING STREET GREYFRIARS WAY NORTHGATE STREET MARKET PLA CE TOLLHOUSE STREET TEMPLE ROAD KING STREET NELSON RD CENTRAL NELSON ROAD NORTH EUSTON ROAD MIDDLE MARKET RD DENE SIDE REGENT STREET ALBION ROAD TRAFALGAR ROAD SANDOWN ROAD WELLESLEY ROAD LANCASTER ROAD APSLEY ROAD MARINE PARADE NORTH DRIVE Huntingdon Southwold Newmarket Cambridge Bury St Edmunds Stowmarket M Hitchin Luton St Albans Biggleswade Royston Stevenage 7 A1(M) Welwyn 3 Garden 2 22 City 24 M25 25 Bishop's Stortford Harlow M11 8 Saffron Walden STANSTED Chelmsford Braintree Colchester Ipswich

4 CATCHMENT & DEMOGRAPHICS Great Yarmouth has a catchment population of approximately 115,000 people, making it the second largest town in Norfolk, after Norwich. There is a catchment population of 68,022 people living within a 10 minute drive time of the subject property, extending to 115,741 people within a 20 minute drive time. Tourism is an important employment sector, generating around 530 million annually for the local economy from an estimated 5 million overnight visitors and 4 million day visitors. The town benefits from its extensive beachfront known as the Golden Mile and its associated holiday attractions. It is also a tourist base for the nearby Norfolk Broads. Great Yarmouth remains a working port and an important supply base for the North Sea oil and gas exploration industry. It is home to a 400-company-strong marine energy supply chain with almost 50 years of offshore experience as the principal base for Southern North Sea (SNS) gas operations. Many multinational businesses have established operations in Great Yarmouth, including Aker Solutions, AMEC, Petrofac, Halliburton and Schlumberger. More recently, it has developed into a centre for the installation and maintenance of off-shore wind power generation, due to the port s proximity to Scroby Sands Wind Farm. Wind power is a sector where significant future growth is projected and Great Yarmouth is already England s leading location for offshore energy. Great Yarmouth is a popular seaside resort on the Norfolk coast

5 RETAIL WAREHOUSING IN GREAT YARMOUTH Retail warehouse supply in Great Yarmouth is limited totalling just 320,000 sq ft. The lack of retail warehousing means there is good demand for Great Yarmouth with many national retailers not represented here including Dunelm, Poundstretcher and The Range. As the town is located 11 miles north of Lowestoft and 20 miles east of Norwich, the distance between these competing centres result in Great Yarmouth retaining the majority of the available spend within its catchment population. The main retail warehousing in Great Yarmouth includes: Great Yarmouth Shopping Park - This scheme totals 129,166 sq ft with occupiers including Sports Direct, Outfit, M&S Simply Food, Carpetright, TK Maxx, Poundland, Halfords and Next. Rents on the scheme are circa per sq ft for a 6,000 sq ft unit. The park benefits from an open A1 planning consent and is the dominant scheme in the town. This scheme was recently sold for a 6% net initial yield. Pasteur Retail Park - This is a bulky goods consented, 122,000 sq ft scheme anchored by B&Q. Other tenants include Home Bargains, Argos, Pets at Home and Tapi. This park is the only bulky goods scheme in the town. The most recent letting was to Tapi in a 5,000 sq ft unit at 16 per sq ft. There is a standalone B&M Homestore of 35,597 sq ft, a Lidl and a 98,000 sq ft Tesco Extra located in close proximity to the subject property. Staples and Bensons for Beds also have standalone units in Great Yarmouth. TESCO JONES WAYS MILL ROAD BENSON FOR BEDS GREAT YARMOUTH SHOPPING PARK MATALAN & FARMFOODS B&M HOMESTORES PASTUER ROAD ACLE NEW ROAD GREAT YARMOUTH STATION ROAD STAFFORD ROAD LICHFIELD ROAD NORTH QUAY BRIDGE RD LIDL SOUTHTOWN ROAD PASTUER RETAIL PARK NOR T H QUAY GEORGE STREET FULLER HILL HOWARD S TREET KING STREET GREYFRIARS WAY SOUTH QUAY NORTHGATE ST MARKET PLA CE STAPLES SOUTHGATES ROAD TOLLHOUSE STREET TEMPLE ROAD KING STREET DENE SIDE EUSTON ROAD TRAFALGAR ROAD NELSON ROAD NELSON ROAD NORTH MIDDLE MARKET RD REGENT STREET ALBION ROAD SANDOWN ROAD WELLESLEY ROAD LANCASTER ROAD QUEEN S ROAD APSLEY ROAD S BEACH PARADE MARINE PARADE NORTH DRIVE SITUATION The subject property occupies a prominent location fronting the 43 Bridge Road at its junction with Southtown Road, approximately 1 mile to the south west of the town centre. The property is accessed via Southtown Road off Bridge Road which links to the, 0.7 miles south west.

6 DESCRIPTION The subject property comprises a standalone unit let to Matalan, with part sub-let to Farmfoods. The building totals 38,771 sq ft of which 2,062 sq ft is on the first floor and is rentalised. The property has been subdivided into a unit of circa 28,700 sq ft which is occupied by Matalan, and a 10,000 sq ft unit sub-let to Farmfoods. Both units are fitted out to the individual tenants specification, with the Matalan unit benefiting from a mezzanine floor of circa 3,922 sq ft, which is not included within the measured area. There are 171 car parking spaces on site, located at the front of the units, reflecting a ratio of 1 : 227 sq ft. Servicing is located to the eastern elevation of the unit closest to Farmfoods. The property comprises a circa 37,000 sq ft standalone retail warehouse The property occupies a site of approximately 2.86 acres, giving a low site coverage of approximately 30%.

7 PLANNING 4 RIV The property benefits from an attractive planning consent, having a fully open A1 consent to include both non-food and food uses. ce 10 El Sub Sta PH PH 5 1.5m TENURE 8a 8 The property is held freehold, as delineated on the plan opposite. TENANCY The property is let to Matalan Retail Limited for a term of 15 years from 25 December 2010, expiring on 24 December The current passing rent is 389,468 per annum, which equates to per sq ft overall. The lease is subject to 5 yearly rent reviews. The rent review on 25 December 2020 is capped to a maximum of the proceeding rent compounded by 3% per annum increments. PH 14 13a m 12a 12 12b 9 BRIDGE ROAD MLW Approximately 10,000 sq ft has been sub-let to Farmfoods Limited until 23 December 2025 at a rent of 100,000 per annum (outside the Landlord & Tenant Act 1954). There is the opportunity at lease expiry for the landlord to agree a direct lease with Farmfoods or alternatively another occupier for the sub-divided 10,000 sq ft unit. TENANT COVENANT ROAD El Sub Sta Hoppers Waveney Mill Matalan is a British fashion and homeware retailer. The business was founded in 1985, and now has 221 stores throughout the UK. Farmfoods is a privately owned frozen food supermarket chain, founded in Aberdeen in The company has now grown to over 300 stores across Great Britain. 1 Plevna Terrace Shelter Silos 286 Timber Yard The individual tenant accounts are as follows: Tenant Year Ending Sales Turnover (000s) Pre-Tax Profit (000s) Net Worth (000s) D&B Rating SOUTHTOWN ROAD Matalan Retail Ltd Farmfoods 27/02/2016 1,060,500-20, ,800 28/02/2015 1,094,000 20, ,100 02/01/ ,385 20,038 87,191 03/01/ ,765 20,810 80,748 5A1 5A1 Garage 0m 10m 20m 30m Warehouse WB

8 EPC The property has a D (97) EPC rating. A copy of the certificate is available on request. VAT The property is registered for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern. PROPOSAL We are instructed to seek offers for the property based on an attractive net initial yield of 8.00% (assuming purchaser s costs at 6.57%), giving a purchase price of 4,569,000 (Four Million and Five Hundred and Sixty Nine Thousand Pounds), subject to contract and exclusive of VAT. FURTHER INFORMATION Ellie Kirkby Paul Wilkinson T: T: M: M: E: e.kirkby@wilkinsonwilliams.co.uk E: p.wilkinson@wilkinsonwilliams.co.uk Wilkinson WIlliams Heathcoat House 20 Savile Row London W1S 3PR MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. March Designed and produced by Creativeworld Tel: