Burrfields Retail Park BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH

Transcription

1 Burrfields Retail Park BURRFIELDS ROAD, PORTSMOUTH, PO 5HH ENTER RETAIL PARK INVESTMENT OPPORTUNITY

2 BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH Portsmouth is a major commercial port and city in Hampshire, 20 miles east of Southampton. The city benefits from a large catchment and shopping population, significantly above the PMA retail average. The subject property is located in a prominent position opposite Ocean Retail Park; the dominant retail park in Portsmouth. The park is well let with a weighted average unexpired lease term of 6 years to the D&B A rated covenants of Pets at and Staples. The rent totals 505,5 per annum, equating to 20.5 per sq ft overall, giving potential for future rental growth. Asset management angles including a potential pod unit development on the scheme. We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser s costs at 5.0%), giving a purchase price of,6,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT. OCEAN RETAIL PARK BURRFIELDS RETAIL PARK

3 A BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH M5 Stroud A50 A50 Location Portsmouth is located in Hampshire on the south coast, 20 miles Newport to the east of Southampton. Biggleswade Evesham Banbury Pagnell The M25 connects the city to the M2 and the, which Milton in turn form the main coastal route Royston Keynes between Southampton to the west and Eastbourne to the east, and provide access to the national Letchworth motorway network via the M and A (M), linking to London, 5 miles north. Cheltenham The majority of the Portsmouth District is Bicester Dunstable located on Portsea Island, which is separated from Bishop's the LUTON Welwyn Stortford mainland by a narrow strip of water. The city has been home to the Royal Navy for 6over Garden 500 years Aylesbury City Kidlington Ware 5 and is a major commercial Witney port. Tring Hemel Hertford A Bexhillon-Sea Thame 2 Portsmouth Cirencester train station provides regular services to several mainline destinations, 22 including Amersham 20 2 M Southampton (5 minutes), London Abingdon Waterloo ( hour 0 minutes) High and Watford Birmingham ( hours 6 Barnet Enfield 5 5 Wycombe 20 minutes). The city is also the second busiest passenger and freight Didcot M0 ferry port in the UK, with M Beaconsfield M 2 P&O, Commodore and Brittany offering regular ferry services Marlow to 2 mainland Europe. Southampton Harrow Airport is located Swindon 6 miles west of the city. CITY 6 Henleyon-Thames Slough Maidenhead Uxbridge M 5 LONDON LYNEHAM Chippenham A6 A A A6 A6 Poole A0 A A6 A5 A Stow-on- the-wold Devizes Stratford upon Avon A A A A0 A A Ringwood A6 Salisbury A A6 A A0 0 A Andover Romsey 2 New Milton Christchurch Bournemouth Winchester Hythe Fawley Lymington Newbury SOUTHAMPTON A A A0 M0 A M A Oxford A A0 Basingstoke M Reading A Camberley Petersfield Eastleigh SOUTHAMPTON 5 A(M) M2 Havant 5 Chichester Fareham Gosport Cowes Ryde Newport 6 A A Sandown Shanklin M A A Alton A5 5 A50 M 6 Windsor A2(M) Bracknell A SOUTH DOWNS NATIONAL PARK A0 Aldershot Farnham A A A50 Leighton Buzzard Portsmouth St Hempstead M Albans Berkhamsted A5 A Woking Haslemere Bedford M 2 Richmond HEATHROW Kingston Staines upon Thames A A6 A0 A M25 Leatherhead Dorking Guildford Godalming Littlehampton Bognor Regis A06 A Reigate A GATWICK Crawley 6 A602 A06 M25 6 Redhill Oxted A505 Hitchin Luton A(M) Stevenage Hatfield A M M Harlow Hoddesdon A Croydon A A505 East Grinstead M2 Horsham Haywards Heath Uckfield Worthing Sutton Epsom Hove Lewes Brighton Newhaven 0 6 A Chigwell A Woolwich Catchment Haverhill Portsmouth has a primary catchment Ipswich population estimated by PROMIS of 50,000 people and Sudbury a shopping population of 25,000 people, ranking it 0 and 5 respectively out of the top 200 PROMIS retail centres. Experian Braintree calculate there is a total population of 22, people within a minute drive time of Colchester the subject property, increasing to 52, people within a 20 minute drive time. STANSTED 0 Portsmouth currently ranks 2 out of the top 200 PROMIS retail centres in terms of the volume Chelmsford Maldon of comparison retail spend available in the catchment area, and its dominance as a retail destination is demonstrated below: Rayleigh Spending Potential Portsmouth PMA Sub Regional Basildon Southend-on-Sea Centre Average 2 Brentwood 2 M25 Dartford 2 Swanley A0 M20 M25 M26 5 Sevenoaks Saffron Walden 6 Canvey Island Total in-store comparison Tilbury retail expenditure 20 Sheerness Gravesend ( m) 2 Per capita Chatham 5 retail 2 warehouse 5 6 expenditure 20 6 A A0 A A A Tonbridge A A0 A A A A Sittingbourne Whitstable Faversham M2 6 Canterbury M20 A A0 A0 PMA Retail Average, In addition, consumer spend within CHANNEL Portsmouth is significantly boosted by tourism. In 20, TUNNEL Ashford TERMINAL Dover the Tunbridge local Wells authority estimated that approximately.25 million day trips were made to the city. M20 Tourism was expected to generate around Folkestone million for the city in 20; an increase of over Hythe 6% from 20. Of this, over 50 million was spent within the retail sector, accounting for % of the total spend. Crowborough Hailsham 5 Eastbourne Witham Rochester Gillingham Maidstone 5 Hastings 00 5 Lydd/Ashford A Herne Bay A Felixstowe Harwich Clacton-on-Sea Margate Ramsgate Deal

4 PAR K SEA FRONT BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH Portsmouth HAVANT Retail warehouse supply in Portsmouth totals,000 sq ft which includes the area of Havant. Overall provision per household of retail warehousing is below average. We believe that the limited retail warehousing competition in the city results in the majority of retailers generally trading well. The main retail warehouse provision is shown on the map opposite. WESTERN RD A SOUTHAMPTON RD NORTHERN RD PORTSDOWN HILL RD A LONDON RD HAVANT RD EASTERN RD PORTSDOWN HILL RD HAVANT RD PARK RD N RD S Situation LONGSTONE BRIDGE The subject property is located to the north east of Portsea Island, 0.5 miles west of the 00; the main north-south route serving that side of the island, and 2 miles south of the. The scheme is easily accessible and highly visible from the road and benefits from the critical mass that Ocean Retail Park, located opposite, provides. A N O RTHERN PARADE 0 LOND ON RD COPN OR RD NORWAY RD EASTERN RD EASTERN RD HAVANT RD Ocean Retail Park, owned by The Crown Estate, totals 5,000 sq ft and is anchored by Currys PC World, base and Toys R Us. The scheme attracts over 2. million visitors each year and is considered to be the dominant retail warehouse destination in Portsmouth. KIN G S T O N RD LAKE RD FRATTON RD STUBBINGTON AVE NEW RD ST. MARYS RD COPNO R RD BURRFIELDS RD 00 EASTERN RD WEST LANE QUEEN ST MILTON RD WEST LANE KINGS RD FAWCETT RD PORTSEA ISLAND EASTERN P ARADE

5 BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH The property is an attractive, modern scheme totalling 25,0 sq ft arranged as a single terrace of 2 units of 5,0 sq ft, and,00 sq ft, let to Staples and Pets at respectively. The scheme is well presented with a combination of brickwork and glazed elevations displaying the tenants signage. Internally, the units are fitted out to the individual tenant s specifications with the Pets at unit incorporating a veterinary surgery in part of their unit. The Staples unit benefits from having a storage mezzanine and there is sufficient eaves height to create a mezzanine within the Pets at unit, subject to planning. Car parking is located to the front of the units providing 5 spaces, equating to an attractive car parking ratio of : 2 sq ft. There is also additional staff parking in the service yard. Servicing is located to the rear of the property with service vehicles accessing the property in the same way as customers, via Burrfields Road which leads to Ocean Retail Park. The total site area is. acres providing a low site cover of 2%.

6 BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH Tenure and Tenancy The site, delineated below, is held freehold. The property benefits from an average income weighted unexpired lease term of 5.2 years and is let in accordance with the tenancy schedule below: Unit Tenant Total Area (sq ft) Lease Start Lease Term (years) Lease Expiry Next Rent Review Current Rent (per annum) Current Rent (per sq ft) Staples 5,0 0// //20 20, Pets at,00 2// 25 2//2022 2//20 25, Total 25,0 505, Planning Planning was originally granted in April for the development of 2 units for the retail sale of goods, excluding where the primary use involves the sale of food, not including animal feed; alcoholic drink; tobacco; stationery; books, newspapers and magazines; clothing and footwear; sports and leisure equipment; chemist goods and jewellery; and pre-recorded audio and visual software. The permission restricts the subdivision of the units to less than,000 sq ft without consent. TO LET Under Negotiation Q PARKING SPACES DUNDAS LANE In July the consent was altered to allow part of the ground floor to be used as a veterinary surgery within the Pets at unit. Following recent case law, given the particular working of the consent, it is considered there is an argument that the user restrictions within the consent may be invalid. However this is unclear and would need to be investigated in more detail. Further information can be provided on request. BURRFIELDS ROAD COPNOR ROAD Burfields BURRFIELD Retail Park RETAIL PARK BURRFIELDS ROAD 00 EASTERN ROAD Planning consent was granted in May 200 to install a mezzanine of,5 sq ft within the Pets at unit. This was not implemented and has subsequently expired.

7 BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH We believe there is an opportunity to create a standalone pod unit or A drive thru unit in the car park, subject to planning. Coffee operators should be interested, in particular, given the high level of traffic passing the scheme. Subway and Carphone Warehouse have recently taken pod units on Ocean Retail Park demonstrating the demand for the location. We believe a pod operator could pay in the region of 2.50 per sq ft for a unit here. Plans showing how this could be accommodated are available on request. Staples have a lease expiry in 20. It would be possible to subdivide their unit at lease expiry into 2 units of circa,500 sq ft, and potentially let these at rents ahead of the current passing rent. Given this is the main retail warehouse pitch in Portsmouth and there is a lack of available smaller units on Ocean Retail Park, we believe there would be strong demand from retailers for representation here. The strength of the location is demonstrated by the fact there is strong occupier demand for Ocean Retail Park, when Paul Simon went into administration, Oak Furnitureland took an assignment of their lease, for a premium. In addition, negotiations are ongoing with a number of attractive retailers for a downsize of the Toys R Us unit. Tenants Covenants Pets at is the UK s largest pet supplies retailer, with more than 0 stores and 6,000 employees. The company sells products including food, toys, bedding, medication and accessories. The company recently floated on the FTSE 250 stock market. Staples is the leading stationery supplier in the UK and US with over 2,200 stores globally. The company was started in and now employs over 2,200 staff. Unit Tenant Year Ending Sales Turnover (000s) Pre-Tax Profit/ Loss (000s) Net Worth (000s) D&B Rating Unit Staples UK Ltd 0/02/20 - -,260 02/02/ ,62,260 Unit 2 Pets at Ltd 2/0/20 6,2,5 62,55 5A 2/0/20 56,50,0 2,5

8 BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO 5HH Environmental Delta Simmons have undertaken a Phase Environmental Survey which is assignable to the purchaser. This gives the site a low to moderate environmental risk rating. A copy of the report is available on request. EPC s Unit has an EPC rating of B and Unit 2 has an EPC rating of C5. VAT The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction to be treated as a TOGC. Proposal We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser s costs at 5.0%), giving a purchase price of,6,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT. Contact Details Paul Wilkinson T: 020 M: E: p.wilkinson@wilkinsonwilliams.co.uk Ellie Kirkby T: M: 06 2 E: e.kirkby@wilkinsonwilliams.co.uk Wilkinson Williams Heathcoat House 20 Savile Row London WS PR MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows:. 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.. 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.. 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.. s 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. May 205. Designed and produced by Creativeworld Tel: