B & M HOME STORE & GARDEN CENTRE

Transcription

1 CHEADLE HEATH, SK3 0RJ Prime Retail Warehouse Investment Opportunity ENTER

2 CHEADLE HEATH, SK3 0RJ Stockport is one of the main centres within the Greater Manchester conurbation and contains many of the most desirable residential suburbs, including Cheadle, where the subject property is situated. There is virtually no available retail warehouse accommodation within the area, with various requirements. The property lies within a densely populated area and is anchored by a large, modern and successful Morrisons store, sharing the same car park. The property is held virtual freehold, on a 997 year unexpired leasehold interest, at a rent of 10 per annum. The unit is a modern purpose built retail warehouse of 31,803 sq ft plus garden centre which is divisible and capable of extension. There is a no build area over the shared car park encompassing 154 car parking spaces giving a ratio of 1:206 sq. ft. Let to the excellent covenant of B&M Retail Ltd on a new lease commencing September 2014 for a term of 10 years, subject to upward only review in September The passing rent is 422,000 per annum equating to per sq ft, which is considered to reflect the current rental value. Offers are sought at a price in the order of 6,089,000 (Six Million and Eighty-Nine Thousand Pounds) subject to contract and exclusive of VAT for the benefit of this long leasehold interest. This reflects an attractive net initial yield of 6.50%, assuming purchaser s costs at 6.63%.

3 B & M STORE & GARDEN CENTRE CHEADLE HEATH, SK3 0RJ Subject Property Stockport benefits from excellent road communications, being located only a short distance to the south of Junction 1-3 of the M60 Motorway, which forms the southern part of the motorway ring road around Manchester, and thereby providing access to the north-west and the wider motorway network. Junction 1 of the M60, a short distance to the east, intercepts the A6 which runs directly into Manchester city centre and south-east to Derby and the Midlands. To the west the M56 links with the M60 at Junction 4 and gives access to Manchester Airport, Warrington, Chester and North Wales beyond. Stockport Railway Station is situated 1.5 miles to the east and is on the Manchester Piccadilly to London (Euston) Line. Trains serve Manchester, Liverpool, Preston, Blackpool and Wigan to the north-west, Sheffield and Northwich to the east and London to the south. Trains to London (Euston) take approximately one hour 50 minutes. MANCHESTER MA M ANC NCHE CH HES HEST HE STER STER STE ST ER ST S T STRETFORD Subject Property DENTON MANCHESTER BIRMINGHAM BREDBURY B6167 DIDSBURY SALE M60 A34 B5167 B5168 LEEDS LIVERPOOL NEWCASTLE UPON TYNE HALE M56 M60 CHEADLE A6 LONDON BRISTOL ALTRINCHAM B5094 A555 Satellite Navigation Latitude Longitude MINUTE DRIVE TIME CONTOUR 10 MINUTE DRIVE TIME CONTOUR VAT, EPC &

4 CHEADLE HEATH, SK3 0RJ SITUATION The subject property is well located on the southern side of the A560 Stockport Road which acts as the main thoroughfare running west to east in Stockport, to the south of the M60 Motorway. The immediate surroundings are predominantly residential with some industrial and office users south along and off Bird Hall Road and further retail to the west along Stockport Road. The overall site, also encompassing the Morrisons, is bordered by a railway line to the east, the B5465 Edgeley Road to the south and the A50 Stockport Road to the north. Immediately adjacent to the west is a retail unit occupied by Go Outdoors. This retail development sits on a corner site on the south side of the A560 Stockport Road, to the east of its junction with the B5465. On the eastern element of the site is a south facing, purpose built Morrisons foodstore, together with petrol filling station. To the west is the subject property. Both units share surface level parking for around 708 vehicles. The store benefits from a large catchment population, with CACI figures showing approximately 42,064 people living within a 5 minute drive-time of the property, increasing to 108,156 in the 10 minute profile. Key indicators from the 10 minutes profile show an affluent catchment, with the representation of the top Acorn Group (Wealthy Achievers) 20% higher than the UK average, and with over half the population (54%) classed within the top three Acorn Groups (Wealthy Achievers, Urban Prosperity and Comfortably Off). ACORN GROUP AREA % UK AVERAGE INDEX 1. Wealthy Achievers 25.6% 21.3% Comfortably Off 21.7% 20.5% Moderate Means 16.8% 18.0% 93 Source: CACI Index calculated as: (Area%/UK Average) x 100

5 CHEADLE HEATH, SK3 0RJ The principal retail park in the town is the Peel Centre comprising some 251,000 sq ft adjoining the town centre. Rents here are around per sq ft for 10,000 sq ft units with occupiers including Boots, Argos, New Look, Next, DFS and Currys/PC World. The subject property lies some 2 miles south west of the town centre in the densely populated and attractive residential suburb of Cheadle Heath. Within this area there is limited competing retail warehousing apart from a unit occupied by Go Outdoors of 28,833 sq ft fronting Stockport Road. This is on a long lease to the retailer who we understand is paying around per sq ft. We consider the subject property to be better situated with an adjoining and integrated foodstore anchor. M60 DIDSBURY ROAD A5145 ROAD A560 EDGELEY ROAD B5465 M60 BRINKSWAY MERCIAN WAY WELLINGTON ROAD A6 A5145 TRAVIS BROW WOOD STREET LANCASHIRE HILL A560 WELLINGTON ROAD A6 M60 A626 ST MARY S WAY Stockport Retail Park Subject Property

6 CHEADLE HEATH, SK3 0RJ The subject retail warehouse unit is occupied by B&M, and provides around 30,502 sq ft of ground floor accommodation, with 1,301 sq ft of office/staff space at first floor to give a total GIA of 31,803 sq ft. There is a garden centre facility to the eastern elevation extending to approximately 7,600 sq ft. As with the foodstore unit, forecourt parking is available for around 708 vehicles, and a further walled area for staff car parking is situated to the rear of the foodstore, providing spaces for approximately 46 cars. A segregated rear servicing yard is accessed from Stockport Road. The building itself is of steel portal frame construction with elevations of brickwork and profiled steel cladding, a glazed full height entrance lobby feature and a low gradient pitched roof. Internally the unit has been fitted out to B&M s corporate specification. There is an eaves height of 6.8 m which could readily accommodate further mezzanine accommodation. The total site area extends to 5 hectares (12.4 acres), and the combination of the two retail units and PFS combine to provide around 23% site coverage. Within the no build zone to the front of the subject property are 154 spaces giving a ratio of 1 space per 206 sq ft.

7 CHEADLE HEATH, SK3 0RJ The property is held by way of a 997 year unexpired leasehold interest at per annum, as outlined in red on the attached plan. The area hatched green is a no build zone to protect the parking provision for the subject property and this area provides approximately 154 car parking spaces. The property also has a right of access over the yellow shaded area. Furthermore, as long as Morrisons or one of their group companies remain tenant of the foodstore, the head lessee has the right to use that part of the car park edged in green.

8 CHEADLE HEATH, SK3 0RJ PLANNING The property is subject to a wide bulky goods consent with permission granted in 1996 allowing for use of the unit as a non-food retail warehouse unit but prohibiting the sale of: Clothing and footwear (other than in connection with DIY activity) Fashion accessories including jewellery Cosmetics, toiletries and pharmaceutical products. Any additional floorspace through the insertion of a mezzanine and any subdivision of the unit is prohibited without planning consent. B&M took the unit in 2014 subject to the current planning consent. Our clients hold the benefit of an Environmental Report and the site is considered to present a low to medium risk based on a continuation of the site in its current usage.

9 CHEADLE HEATH, SK3 0RJ TENANCY The entire property is let to B&M Retail Limited on a 10 year lease on full repairing and insuring terms from September 2014 at a rent of 422,200 per annum exclusive, equating to per sq ft. We understand the only incentive on letting was a 9 month rent free period with the unit previously occupied by Homebase. The lease is subject to a review at year 5 to the lower of open market value or RPI capped at 2.5% per annum compounded. The service charge is capped at 0.50 per sq ft ( 16,600 p.a) and is subject to annual RPI increases. If the service charge is more however, Morrisons will fund the difference during the term of the B&M lease. TENANT COVENANT B&M was formed in 1978 and is now one of the leading variety retailers in the UK. B&M now occupies over 450 stores and employs some 20,000 colleagues, listing on the stock market in TENANT YEAR ENDING SALES TURNOVER (000S) PROFIT/PRE TAX (000S) NET WORTH (000s) B&M Retail Ltd 28th March ,526, , ,599 5A1 29th March ,509, , ,228 D&B RATING The adjacent Go Outdoors, which is of 28,833 sq ft, is let off a rent of 9.81 per sq ft. However, this has a much poorer specification and doesn t have the benefit of the integrated Morrisons anchor immediately adjoining. The Toys R Us on The Peel Centre of 44,000 sq ft, is let off per sq ft. On St Marys Way adjoining the town centre there is a 35,000 sq ft solus Dunelm store let at per sq ft. Close to this is the Matalan on Great Portwood Street totalling 45,264 sq ft with a passing rent of per sq ft. To the north of the town is a 111,000 sq ft highly successful B&Q Warehouse where the passing rent is per sq ft. The Homebase at Stockport Road West, Bredbury totals 40,000 sq ft and is let at a rent of 18 per sq ft. We believe that the subject property is currently rack rented as evidenced by the recent letting to B&M subject only to a 9 month rent free period and the comparable evidence above.

10 CHEADLE HEATH, SK3 0RJ EPC The property has an EPC rating of B (43). A copy of the EPC can be provided on request. VAT The property has been elected for VAT, however, it is anticipated that the transaction will be treated as a Transfer of Going Concern (TOGC). We are seeking offers in the order of 6,089,000 (Six Million and Eighty- Nine Thousand Pounds), subject to contract and exclusive of VAT for the benefit of this long leasehold interest. This reflects an attractive net initial yield of 6.50%, assuming purchaser s costs at 6.63%. FURTHER INFORMATION Wilkinson Williams Heathcoat House 20 Savile Row London W1S 3PR Paul Wilkinson Telephone: Mobile: p.wilkinson@wilkinsonwilliams.co.uk Ellie Kirkby Telephone: Mobile: e.kirkby@wilkinsonwilliams.co.uk 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. 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 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. Any areas, measurements or distances referred to herein are approximate only. 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. Wilkinson Williams LLP gives notice that some of the partnership members have a financial interest in the property. April 2016