GREAT HOMER STREET. Liverpool, L5 5BT NEW PROMINENT RETAIL DISTRICT CENTRE INVESTMENT

Transcription

1 GREAT HOMER STREET Liverpool, L5 5BT NEW PROMINENT RETAIL DISTRICT CENTRE INVESTMENT

2 INVESTMENT SUMMARY The property comprises a brand new purpose built retail development due to PC in September Positioned 1.5 miles north of Liverpool city centre within the 150million regeneration area of Great Homer Street. The property totals 83,046 sq ft and is arranged as three distinct elements with demised surface car parking opposite a newly developed Sainsbury s supermarket. Pre-let to a range of national retailers including B&M, Home Bargains, Gym Group, Greggs, Subway, Card Factory and Domino s. WAULT of years to lease expiry. Total passing rent of 1,081,854 per annum, 90% of which will be secured against national retailers. Offers sought in excess of 15,580,000 26,600 vehicles pass the scheme each day, equating to approximately 9.7 million annually. Long Leasehold (c.250 year long lease interest at a peppercorn). reflecting a net initial yield of 6.50%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.73%.

3 3 LOCATION & COMMUNICATIONS Liverpool is a major city in north west England with a population of 480,000. The city and its surrounding areas form the fifth largest metropolitan area in the UK, with an estimated population of over 2.24 million. The city is located 35 miles (56 km) west of Manchester, 55 miles (88 km) south of Blackpool and 98 miles (157km) north west of Birmingham. The Mersey Estuary separates Liverpool from the Wirral Peninsula. COMMUNICATIONS Liverpool benefits from excellent transport infrastructure, primarily centred on the city s highly developed road and rail networks, both of which are extensive and provide links across the UK. A55 A494 A583 A565 A59 A565 A5209 A561 A562 A41 A550 A494 A55 A483 A585 LIVERPOOL M53 M55 M58 A570 A580 CHESTER A534 A41 M6 A58 A51 A49 BLACKBURN M61 WIGAN A56 M56 A49 A54 A556 M65 A58 A666 M62 A580 A57 A530 A560 CREWE A58 A534 A56 A537 M6 M66 M60 A54 A34 A34 A34 A646 M60 A6 A52 A6066 A627 MANCHESTER A6 A537 M62 STOKE -ON-TRENT A53 BRADFORD A6 Huddersfield M606 LEEDS M1 M621 M1 SHEFFIELD M1 M62 M18 A1(M) NOTTINGHAM ROAD Liverpool is served by the M62, M58 and M57 motorways which connect the city to Manchester, Leeds, Bradford and Hull. The M6, approximately 12 miles to the east, and M1 are also both easily accessible. RAIL The city s primary mainline station is Lime Street station, which provides a regular service to London Euston (2 hours 5 minutes), Manchester (32 minutes), Birmingham, Newcastle-upon-Tyne, Leeds and Nottingham. The Merseyrail Loop system connects Liverpool to the Merseyside suburbs, the Wirral and Chester. BUS The two principal bus terminals are; Queen Square bus station, providing routes north and east of the city, and Liverpool One bus station, providing services to the south and east. AIR Liverpool John Lennon Airport is approximately 6 miles (9.6 km) to the south of the city centre and is one of the UK s fastest growing regional airports with 5.3 million passengers annually. Manchester Airport is also 35 miles (55 km) to the east of the city. FERRY The Port of Liverpool acts as the Global Logistics Hub for Northern UK & Ireland and is the largest west coast container port, offering air freight opportunities through Liverpool John Lennon Airport.

4 LIVERPOOL Liverpool is the 6th largest city in the UK and the country s largest economic region outside of London and the South East. 4 Historically, Liverpool s economy focused around the port, which was at one point the largest international port in the world. The port is currently undergoing one of the most ambitious regeneration projects in the UK and remains a focus of, and significant driver behind, the city s economy. The long term vision for Liverpool Waters is to transform the northern docks, regenerating 60 hectares of historic dockland to create a worldclass, high quality, mixed-use waterfront quarter. Liverpool2, another ongoing development at the Port of Liverpool, has seen 400 million invested into the creation of a deep-water container, that once complete will act as one of Europe s most advanced container terminals. Liverpool and the surrounding region is the number one recipient of foreign investment in the UK after London and the South East. Liverpool is set to benefit from some of the UK s largest development and infrastructure projects. Over the next decade Liverpool is set to benefit from some of the UK s largest development and infrastructure projects including Pall Mall (a 90m Gateway Project); New Royal Liverpool University Hospital; Alder Hey Children s Hospital and Liverpool University s Bio Innovation Campus. The city is the third largest wealth management centre in the UK and home to a number of major financial institutions, public bodies and manufacturing and service sector employers, such as; HM Revenue & Customs, the UK Border Agency, Barclaycard, Sony, Deutsche Bank, Jaguar Land Rover, Unilever and Ford. Additionally, Liverpool is a former European Capital of Culture (2008) and benefits from a substantial tourism, sporting and cultural economy. The city s principal attractions include Liverpool and Everton football clubs; the Grade II Listed Albert Dock; the Three Graces (UNESCO World Heritage Site); Echo Arena; Royal Liverpool Philharmonic; The Grand National; Tate Liverpool; and the largest Anglican Cathedral in the world; all contributing to an estimated 3.8bn to the economy each year. The city is also home to four universities; The University of Liverpool, Liverpool John Moore s University, Liverpool Hope University and Sir Paul McCartney s Liverpool Institute of Performing Arts; producing around 18,000 graduates each year and an annual student population of approximately 50,000.

5 CATCHMENT & SOCIO-ECONOMIC ANALYSIS A565 WATERLOO FORD LITHERLAND A5036 A59 M57 KNOWSLEY INDUSTRIAL PARK 5 Liverpool is the principal retail centre in Merseyside and the second largest city in the north west of England. Liverpool s primary catchment area comprises 1,117,000 people, with an estimated shopping population of 704,000, ranking it 4th of the UK PROMIS Centres (June 2017). The city has the 8th largest annual retail spend in the UK, with a significant amount generated through tourism. In 2014, Liverpool was the 6th most visited city in the UK for international visitors and 5th in England for domestic visitors. Liverpool s tourism industry now supports over 49,000 jobs, giving an overall tourism value of 4.1bn to the local economy (STREAM 2015). Retail spend in the city is complimented by a large student population across Liverpool s four universities. As such, the cities age profile reflects a high proportion of young adults aged MORETON M53 UPTON A554 WALLASEY A5139 A552 A554 ORRELL PARK A580 A565 A5058 MILLERS BRIDGE INDUSTRIAL ESTATE KIRKDALE CLUBMOOR A5089 ANFIELD EVERTON A565 A5053 FAIRFIELD KENSINGTON SEFTON PARK A5058 A5047 A580 CROXTETH KNOWSLEY CHILDWALL M57 STOCKBRIDGE VILLAGE BROADGREEN BOWRING PARK M62 Liverpool and the surrounding region is the number one recipient of foreign direct investment in the UK, outside of London and the South East, contributing to an economic renaissance over the past 15 years which has returned the city to prosperity and provided a strong base for future growth. PRENTON OTTERSPOOL A561 Drive Time (mins) Population 23, , ,366 No. of Households 10,468 73, ,336 LIVERPOOL S VISITOR ECONOMY SUPPORTS OVER 49,000 JOBS & GENERATES IN EXCESS OF 3.8BN (STREAM 2014)

6 6 GREAT HOMER STREET The Great Homer Street development, known as Project Jennifer, is located 1.5 miles north of Liverpool city centre, between Great Homer Street and Scotland Road (A59) a major route into the city centre with an estimated 26,600 vehicles passing daily. The 150 million regeneration of Great Homer Street spans 45 acres and will create a new hub of activity in North Liverpool acting as a catalyst for wider redevelopment. The new 65,000 sq ft Sainsbury s foodstore, situated within the subject site (but not forming part of the demise), has now completed and opened in June The Great Homer Street Development includes: A new 65,000 sq ft Sainsbury s supermarket and petrol station (situated directly opposite) A new 83,000 sq ft District Centre (the subject property) A total of 900 customer car parking spaces A new home for Great Homer Street s famous Greatie Market which opened in September 2013 Improvements to local roads including a new link road Jennifer Avenue and junction between Great Homer Street and Scotland Road New homes Marwood Tower has been refurbished and completed in September 2016 Improvements to the public realm Health facilities Improved pedestrian walkway from the district centre to Everton Park 9.7 million vehicles pass the site each year.

7 SITUATION Regent Rd A5052 A5054 Latimer St GREAT HOMER STREET DEVELOPMENT A59 A5050 EVERTON Hamilton Rd Brighton St Great Homer Street is located 1.5 miles north of Liverpool city centre, between Great Homer Street and Scotland Road (A59) a major route into the city centre. An estimated 26,600 vehicles pass the site each day. Kingsway Tunnel Rd Waterloo St Howard Great Love Ln VAUXHALL Pall Mall A5053 Green St Limekiln Ln Scotland Rd A59 Great Homer St St Anne St Prince Edwin St Brow Everton Shaw St Everton Rd Prescot St Rd Breck Low Hill Queens Rd Princes Princes Parade 7 A554 RIVER MERSEY Queensway Tunnel LIVERPOOL St Strand JAMES STREET STATION LIVERPOOL CENTRAL STATION ROPEWALKS A561 LIVERPOOL LIME STREET STATION A5038 Duke St Brownlow Hill UNIVERSITY OF LIVERPOOL A5039 Grove St

8 Liverpool University Hospital Great Homer Street Notre Dame Catholic College Sainsbury s Store Block Y Liverpool Waterfront Moorfields Station Prince s Dock Liverpool Metropolitan Cathedral Liverpool Lime Street Station Block B Block A James Street Station Marwood Triangle Development

9 St Anthony s Church Scotland Road (A59) THE PROPERTY DESCRIPTION The property, forming part of the Great Homer Street development, comprises new-build, multi-let retail accommodation, due to PC in September Wilcock Close PFS 9 The property is situated adjacent to a new 65,000 sq ft GIA Sainsbury s store arranged over ground floor with demised surface car parking for 650 vehicles. The store opened in June 2017 and will act as a significant draw to the surrounding retail accommodation and wider location. In addition, McDonalds have just opened a new drive-thru adjacent to the site which will be further enhanced when KFC receive planning for their site opposite. BLOCK A Block A comprises two retail warehouse units, totalling 16,126 sq ft, and arranged over ground floor. Unit 1 comprises 10,036 sq ft and has been pre-let to Gym Group, and Unit 2 comprises 6,090 sq ft. BLOCK B Block B comprises standalone retail accommodation split across two retail units. Unit 1 comprises 22,116 sq ft and has been pre-let to Home Bargain. Unit 2 comprises 25,684 sq ft plus garden centre and has been pre-let to B&M Retail. Penrhyn Street Chapel Gardens Great Homer Street Unit 2 Jennifer Way Buckingham Street Part pre-let to tenants including: Rowlands Pharmacy Notre Dame School Blocks A & B combined will have a total of 250 car parking spaces. BLOCK Y Block Y comprises 20,000 sq ft of ground floor terraced retail accommodation. The district centre type accommodation benefits from shared car parking with Sainsbury s (650 spaces). The accommodation is split to provide 12 units ranging from 1,300 sq ft 2,500 sq ft. A number of these units have been pre-let to tenants including Subway, Greggs, Card Factory, Domino s and Rowlands Pharmacy. Construction is currently underway and is due for mid Block A Block B Block Y Everton Leisure Centre

10 MODERN PURPOSE BUILT RETAIL WAREHOUSING & DISTRICT CENTRE ACCOMMODATION Block Y 10 Great Homer Street Block A Block B Sainsbury s Interest (sold off on a 250 year, less 3 days, long lease at a peppercorn). Title plan - for indicative purposes only.

11 TENANCY SCHEDULE The scheme will be let in accordance with the tenancy schedule outlined below. All of the leases are on FRI terms and subject to 5 yearly upwards only rent reviews unless otherwise stated. Unit Company Name Trading As Area (sq ft) Lease Start Lease Term Tenant Break Option Rent (per annum) Rent (psf ) Incentives (months) Comments Block A 1 The Gym Group The Gym 10,036 2 TBC TBC 6, , Store area documented at 10,000 sq ft. Exclusivity period until lease expires. Fixed rental increase at year 5 and 10, at 143,000 pa and 157,300 pa respectively. This represent a 10% fixed increase every 5 years. 73, Rental guarantee of 12 months 11 Block B 1 TJ Morris Limited Home Bargains 22,116 2 B&M Retail Limited B&M 25,684 1 Subway Realty Limited Subway 1,380 2 Done Brothers (Cash Betting) Limited Betfred 1,380 3 DP Realty Limited Domino s 1, Sunseekers Sunbeds Limited Kipros Christos Pittaras and Lorna Marie Pittaras Sunseekers 1,380 The Good Catch 1, Year 10 then annually thereafter 220, , Year 10 28, OMR review at years 5 and 10, subject to cap at 2% per annum compound The unit benefits from a 5,000sf garden centre which is not rentalised 15 Year 10 28, Exclusivity on Block Y for the first 5 years 20 Year 10 28, Year 10 30, , Exclusivity on Block Y for the first 5 years Block Y 6 Sportswift Limited Card Factory 1,380 7 The Extracare Charitable Trust Extra Care 1, Year 10 28, Year 10 28, L Rowland & Company (Retail) Limited Rowlands 1, , Greggs Plc Greggs 1, Barnardo s Barnardo s 2, Under Negotiation TBC 2, Year 10 28, Year 10 41, , Open market review in 5th year Total 12 Under Negotiation TBC 2, , Open market review in 5th year 83,046 1,081,854

12 INCOME PROFILE COVENANT ASSESSMENT 12 Once fully let the property will provide an estimated total passing rent of 1,081,854 per annum which reflects an average rent of psf. The scheme benefits from a WAULT of years to lease expiry and years to tenant break % of the income is secured to national tenants. 6.15% 3.08% 90.77% The top 3 tenants by income have been analysed as below. B&M RETAIL LIMITED B&M Retail Limited (company number ) was formed in 1978 and is now one of the leading variety retailers in the UK. The company sells a wide range of goods including homewares, children s toys, food, drink, toiletries and pet products. In March 2016 the business opened its 500th store and employs a total of 22,500 staff across the UK. The company successfully listed on the London Stock Exchange in 2014 which helped to fund its continued expansion. B&M Retail Limited has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure. The most recent company accounts are set out below: Y/E Y/E 26/03/2016, 000 Y/E 28/03/2015, 000 Y/E 29/03/2014, 000 Sales Turnover 1,902,557 1,526,181 1,509,132 Pre-Tax Profit 168, , ,063 Net Worth 440, , ,228 HOME BARGAINS Home Bargains is a chain of discount stores founded in 1976 in Liverpool. It is the trading name of TJ Morris Ltd and stocks up to 4,000 product lines and employs over 17,000 people. In 2013 the company estimated that they served over 3 million customers and published a record breaking turnover of 1 billion which was subsequently increased by 50% just 3 years later in B&M Retail Limited has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure. The most recent company accounts are set out below: Y/E Y/E 30/06/2016, 000 Y/E 30/06/2016, 000 Y/E 30/06/2016, 000 Sales Turnover 1,602,864,617 1,472,432,312 1,277,323,810 Pre-Tax Profit 136,993, ,121, ,759,662 Net Worth 614,799, ,987, ,875,295 TENURE National Regional Local The property is held by way of Long Leasehold interest for a term of 250 years, less a day, from the Liverpool City Council (at a peppercorn). THE GYM GROUP The Gym Group was founded in 2007 with the vision to provide high quality, affordable gym facilities. At the start of 2016 the company had amassed 448,000 members, spread across 89 locations. The company opened 15 new gyms in 2016, with 17 having been exchanged for The most recent company accounts are set out below: Y/E Y/E 31/12/2016, 000 Y/E 31/12/2014, 000 Y/E 31/12/2013, 000 Sales Turnover 73,539 45,480 20,479 Pre-Tax Profit 6,940 (9,442) (4,868) Net Worth 65,573 (19,285) (57,858)

13 PLANNING The site benefits from planning consent (reference number 08F/0398) for the creation of a new district centre, including superstore, petrol filling station, non-food retail units, shops and leisure use. Further details are available upon request. 13 Block Y (planning application number 17F/1181) benefits from approved planning for a variety of uses within Classes A1, A2, A3, A4 and A5, with permission to use Unit 2 as a betting office and Unit 4 as a tanning salon. Block A Unit 2 (planning application reference 17F/1166) benefits from planning consent for use as a gym (use class D2). ENVIRONMENTAL INFORMATION A land quality statement has been prepared by Atkins and is available upon request. EPC The Energy Performance Certificates for the property can be obtained upon request. VAT This property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC).

14 Offers sought in excess of 15,580,000 reflecting a net initial yield of 6.50%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.73%. TOM EDSON tom.edson@colliers.com Colliers International 50 George Street London W1U 7GA GEORGIE GRIFFITHS georgie.griffiths@colliers.com GREG STYLES greg.styles@colliers.com Disclaimer: Colliers 2017 Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (September 2017) Colliers International is the licensed trading name of Colliers International Retail UK LLP which is a limited liability partnership registered in England and Wales with registered number OC Our registered office is at 50 George Street, London W1U 7GA. September 2017 Ref: