Western Way Retail Park Bury St Edmunds IP33 3SP LONG DATED INCOME RETAIL PARK INVESTMENT OPPORTUNITY
2 Western Way Retail Park Bury St Edmunds Investment Highlights Bury St Edmunds is an attractive and growing market town in West Suffolk, established as a dynamic retailing centre, with a current resident population of approximately 41,113 people. (Census 2011) The surrounding population is both affluent and mobile. CACI Ltd report a 15 minute catchment population of 57,352 people which increases to 92,525 people within 20 minutes. Western Way Retail Park comprises a newly redeveloped retail warehouse scheme configured in 2 units, providing approximately 5,501 sq m (59,220 sq ft) of attractive, well specified, flexible retail floorspace and parking for 200 vehicles. Fully let on FRI terms to 2 occupational tenants, the park produces a current annual rent of 612,375, reflecting low rents of 8.65 and 12.72 psf respectively. The income provides an increasingly rare long weighted average unexpired term in excess of 17 years. Secured to the excellent covenants of CDS (Superstores International) Ltd and B&M Retail Ltd - 49% of the income is subject to 5 yearly 2% pa compounded fixed increases. The property is held Freehold and benefits from a wide bulky goods planning consent. Offers are sought in the region of 11,480,000 (Eleven Million Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser s costs of 6.71% this would reflect the following yield profile: Initial Yield 5.00% Guaranteed Uplift November 2022 5.25% Guaranteed Uplift November 2027 5.54% Guaranteed Uplift November 2032 5.85%
Western Way Retail Park Bury St Edmunds THE SCHEME OFFERS A WEIGHTED TERM CERTAIN IN EXCESS OF 17 YEARS 49% OF THE INCOME IS SUBJECT TO 5 YEARLY 2% FIXED INCREASES 3
4 Western Way Retail Park Bury St Edmunds M6 A423 M69 M40 M1 Coventry Rugby Oxford M45 M4 M40 A6 A43 A41 Basingstoke Leicester Reading Northampton A33 A418 M1 A43 Milton Keynes Corby Camberley A5 A606 High Wycombe A331 A43 M3 A6 M1 A605 Bedford Amersham Slough Guildford Watford Staines M25 Luton A1(M) A1 Peterborough A1(M) M25 A47 1 Stevenage A10 London M11 M11 A10 Cambridge A11 M11 Harlow Brentwood M25 M20 M26 Kings Lynn Newmarket A127 Basildon A2 Maidstone Rochester A1065 A131 Braintree Chelmsford A12 A134 M2 A11 Thetford Bury St Edmunds Colchester Southend-on-Sea 0 Ipswich Norwich Clacton-on-Sea North Margate A12 Location A12 Great Yarmouth Bury St Edmunds is an attractive and affluent market Lowestoft town which serves as both the retail and cultural centre for West Suffolk. Strategically situated located 47.6 km (29.6 miles) east of Cambridge and 70.2 km (43.6 miles) south west of Norwich, the town boasts excellent transport communications serving the surrounding population. The links to Cambridge and the M11 motorway to the west and Ipswich to the east. Additionally, the A134 provides access to Norwich in the north east via Thetford the A11. A regular train service runs between Bury St Edmunds and both London Liverpool Street and London Kings Cross, with a travel time of just under 2 hours. Distances to Towns Cambridge Colchester Ipswich Norwich 47.6 kilometres 51 kilometres 44.7 kilometres 29.6 miles 31.9 miles 27.8 miles 70.2 kilometres 43.6 miles
Western Way Retail Park Bury St Edmunds 5 Socio Economic Profile March A10 A11 Drive Time Key 20 Minutes 15 Minutes 0 10 Minutes We have identified CACI Ltd drivetime catchment population figures for the property below: Ely Thetford A1066 10 min Drive Time 15 min Drive Time 20 min Drive Time 41,137 people 57,352 people 92,525 people A10 Mildenhall A11 Bury St Edmunds A134 Westhorpe The catchment boasts an affluent and mobile demographic as demonstrated by the CACI Ltd numbers below, from the 20 minute drivetime catchment: ACORN Type Description Group Bury St Edmunds UK Cambridge Newmarket A134 Stowmarket Affluent Achievers 24.1% 21.5% Asset Rich Families 4.2% 2.5% M11 Sudbury Ipswich Career Climbers 7.7% 6.1% Wealthy countryside commuters 3.2% 2.3% Saffron Walden Successful Suburbs 7.3% 5.9% Car Ownership, two cars or more (%) Household Ownership (%) UK Average 32.5% 63% 10 min Drive Time 32% 64.1% 15 min Drive Time 38.3% 66.1% 20 min Drive Time 41% 64.7%
6 Western Way Retail Park Bury St Edmunds Situation Western Way Retail Park A1101 A134 3 Western Way Retail Park is situated approximately 2.25 km (1.4 miles) west of the town centre, to the south of the Dual Carriageway and adjacent to a 6,967 sq m (75,000 sq ft) Asda superstore and petrol filling station. The surrounding area predominantly comprises retail, trade counter, light industrial and residential uses. West Suffolk College (the University of Suffolk) is found a short distance to the east, towards the town centre, and boasts a student population of over 10,000. A1302 3 A1302 Bury St Edmunds Access to Bury St Edmunds town centre is provided by both the A1302 to the south and the to the north. 3 A134 North THE COMBINATION OF THE SUBJECT PROPERTY AND THE ADJACENT ASDA REPRESENT THE DOMINANT RETAIL OFFER TO THE WEST OF THE TOWN CENTRE
Western Way Retail Park Bury St Edmunds 7 Town Centre Arc Shopping Centre rth No West Suffolk College West Suffolk Council HQ A1302 W es te rn W ay This aerial is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. Skatepark
8 Western Way Retail Park Bury St Edmunds Out of Town Retail Provision Bury St Edmunds boasts a well-balanced out of town retail provision, as demonstrated by the development of the subject property and levels of competition from occupiers for the space available. The existing provision has enjoyed established and profitable levels of trading for the retailers which explains the low levels of vacancy. We have identified the main components of the out of town provision on the map below: 1 Robert Boby Way Retail Park (Robert Boby Way, Bury St Edmunds, IP33 3DH) Positioned just to the west of the town centre, the park extends to around 2824.3 sq m (30,400 sq ft) in 3 units with tenants including Halfords and TK Maxx along with one vacant unit. Current passing rents are in the order of 11.00 psf. 2 St Edmundsbury Retail Park Phase I (Easlea Road, Bury St Edmunds, IP32 7BT) To the south east of the town centre, St Edmundsbury Retail Park extends to around 9,253 sq m (99,600 sq ft). Having opened in 1990, today tenants include Dunelm, Pets at Home and Homebase. It is notable that this Homebase store is not on the identified closure list recently released. 3 St Edmundsbury Retail Park Phase II (Easlea Road, Bury St Edmunds, IP32 7BT) Adjacent to Phase 2, St Edmundsbury Retail Park Phase II is extends to 2,224.8 sq m (23,948 sq ft) with tenants including Currys/ PC World and Home Bargains. Opened in 1994, the scheme benefits from a Bulky Goods planning consent. A1101 4 Asda Superstore Western Way, IP33 3SP 25,534 sq ft 5 Tesco Superstore St Saviours Interchange, IP32 7JS 32,475 sq ft 6 Sainsbury s Superstore Bedingfield Way, IP32 7EJ 82,798 sq ft Western Way Retail Park 8 4 A1302 9 1 3 A134 A1101 5 11 Bury St Edmunds 3 6 2 3 7 7 Matalan Easlea Rd, IP32 7BY 31,000 sq ft 10 DFS Easlea Rd, IP32 7BY 20,000 sq ft 8 Aldi Dettingen Way, IP33 3TU 16,500 sq ft 11 Waitrose Robert Boby Way, IP33 3DH 21,104 sq ft 9 B&Q 43-48 Risbygate Street, IP33 3AA 39,905 sq ft A1302 10 3 A134 North
Western Way Retail Park Bury St Edmunds Description The subject property provides approximately 5,501 sq m (59,220 sq ft) of purpose built retail warehouse ground floor accommodation. The west facing terrace comprises 2 units, together with outdoor garden centre, with parking for 200 vehicles (including staff spaces). Internally the units have been fitted out by each of the tenants to their own individual corporate specification. 6m (19.7 ft) eaves heights allow the installation of mezzanines in both units currently only The Range have first floor retail space however, which includes a café facility. Customer access is via a roundabout junction on Western Way, whilst segregated rear servicing is available to both units from Olding Road. Staff parking spaces are included within the service yard. en tre Cen Old in gr oa d d Gar PFS No rth W es te rn W ay This plan and aerial is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. h rt o N 9
10 Western Way Retail Park Bury St Edmunds Tenancies The scheme is let in its entirety on Fully Repairing and Insuring terms to two occupational tenants producing a total annual income of 612,375 pa, as detailed in accordance with the schedule below: Unit Tenant Trading Fascia GIA (sq ft) MEZZ (sq ft) Term (Yrs) Lease Start Lease Expiry Next RR Date Passing Rent ( pa) Passing Rent ( psf) Comments 1 CDS (Superstores International) Ltd The Range 34,660 19,375 20 27/11/2017 26/11/2037 27/11/2022 300,000 8.66 5 yearly reviews - reflecting fixed increases to 2% pa compound 2 B&M Retail Ltd B&M 24,560-15 05/03/2018 04/03/2033 05/03/2023 312,375 12.72 5 yrly upward only OMV reviews. Subject to a cap at each review of 112% of previous passing rent 59,220 19,375 612,375 Environmental Considerations Western Way Retail Park Income Split Tenure As part of the development full remediation of the site was undertaken and signed off by the planning authority. All reports are available upon request. 51% 49% B&M The Range The property is held Freehold.
Western Way Retail Park Bury St Edmunds 11 Planning Full planning consent was granted by St Edmundsbury Council on the 13 December 2016. EPCs Energy Performance Certificates have been produced for the units. The ratings are identified below: The consent provides for wide bulky goods sales with further specific relaxations and we have identified these in more details below: Unit 1 The Range Shall only be used for the sale of: Carpets and floor coverings, household goods and furnishings, furniture and electrical goods and for the sale of DIY maintenance and improvement products for the home, garden and car; camping and bulky leisure goods; and for a maximum of 30% of the floorspace (including the external sales area) for the sale of, hobbies and craft supplies, office supplies, pet food and pet products, Christmas trees and decorations, fireworks and rockets; and ancillary product ranges to all the goods listed above and for use as a café and for no other purpose within Class A1. Unit 1 Rating A (22) Unit 2 A (25) Unit 2 B&M Shall be used for Class A1 purposes only subject to the following conditions/restrictions: No part of the floorspace can be used for the sale of fashion clothing, footwear, watches and jewellery. No more than 1,130 sqm (12,163 sq ft) of the net sales area shall be used for the sale of convenience goods. No more than 300 sqm (3,229 sq ft) of the net sales area shall be used for the sale of health and beauty products, pharmaceutical and personal products No more than 200 sqm (2,153 sq ft) of the net sales area shall be used for the sale of non-fashion clothing and non-fashion footwear (including sportswear, nightwear, underwear, workman/diy clothing). Copies of this document are available on request. THE FRI INCOME PROFILE DELIVERS A WEIGHTED UNEXPIRED TERM IN EXCESS OF 17 YEARS
12 Western Way Retail Park Bury St Edmunds Covenant Information B&M Retail Limited Company No: 01357507 B&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below: Year to Date Turnover Pre-Tax Profit Tangible Net Worth D&B Rating Mar-18 2,629,145,000 236,006,000 600,542,000 B&M HAS DELIVERED ANOTHER SET OF STRONG RESULTS BY DOING WHAT WE DO BEST, WHICH IS PROVIDING GREAT VALUE WEEK-IN, WEEK-OUT ON THE THINGS CUSTOMERS BUY REGULARLY FOR THEIR HOMES AND FAMILIES. NONE OF OUR SUCCESS COULD HAVE BEEN ACHIEVED WITHOUT THE HARD WORK AND DEDICATION OF THE THOUSANDS OF B&M COLLEAGUES ACROSS THE GROUP AND ON BEHALF OF THE BOARD I WOULD LIKE TO THANK THEM FOR ALL THEIR EFFORTS. Mar-17 2,252,265,000 198,006,000 498,412,000 Mar-16 1,902,557,000 168,121,000 440,372,000 In February 2015, parent company B&M European Value Retail S.A entered the FSTE 250 for the first time, after a 12% share sell off. Parent Company: B&M European Value Retail S.A 5 A1 THE B&M MODEL IS HIGHLY RELEVANT FOR THE CURRENT DIFFICULT ECONOMIC ENVIRONMENT, WITH ITS STRONG POSITION IN THE VALUE AND CONVENIENCE AREAS OF RETAILING WHERE PHYSICAL STORES ARE WIN-NING. THE BUSINESS IS WELL PLACED FOR CONTINUED PROFITABLE, LONG-TERM GROWTH. IN A RETAIL SECTOR BESET BY STRUCTURAL CHALLENGES B&M S UNIQUE, DISRUPTIVE MODEL STANDS OUT AS A SUCCESS STORY. SIMON ARORA, CHIEF EXECUTIVE MAY 2018 In preliminary results announced in March 2018 B&M European Value Retail S.A stated that sales were up 22.4% to 2,976.3m (2017: 2,430.7m) Group profit before tax increased by 25.4% to 229.3 million during the same period. UK B&M store fascia Adjusted EBITDA growth of 17.2% to 261.7m (2017: 223.2m), with a 29bps increase in margin to 10.2% of revenue. UK B&M store fascia Like-for-Like revenue growth of 4.7% for the year. Group Adjusted Profit Before Tax increased by 16.5% to 221.5m (2017: 190.2m), diluted earnings per share 18.6p (2017: 14.3p). 47 new B&M UK stores opened in the period and at least a further 45 new stores are planned for this financial year as we benefit from the availability of attractive new store opportunities.
Western Way Retail Park Bury St Edmunds 13 CDS (Superstores International) Limited Company No: 02699203 CDS (Superstores International) Ltd trading as The Range is now the fastest growing retailer in the UK. With over 140 stores nationwide, they stock more than 65,000 products across 16 different departments, from Homewares and Furniture to DIY and Art Supplies. In August 2018, The Range announced an agreement with Iceland to allow the sale of Iceland s food products in its stores- creating a one stop shop for customers. A summary of the latest accounts are shown below: Year to Date Turnover Pre-Tax Profit Tangible Net Worth Jan-17 761,287,000 67,543,000 144,727,000 Jan-16 674,203,000 57,032,000 190,245,000 Jan-15 565,064,000 57,299,000 166,972,000 D&B Rating 5A1 GROSS PROFIT INCREASED BY 10 PERCENT AS A RESULT OF THE INCREASE IN TURNOVER, ACHIEVED BY INCREASING THE TURNOVER IN EXISTING STORES AND INCREASING THE NUMBER OF TRADING STORES BUT MAINTAINING THE LEVEL OF FIXED COSTS. THE GROUP IS OPTIMISTIC ABOUT THE FUTURE GIVEN THE CONTINUED GROWTH AND ASSOCIATED ECONOMIES AS WELL AS THE STRENGTH OF THE CONCEPT. The most recent accounts submitted reveal that turnover in the 12 months to 29th January 2017 increased 13% to 761.3m from 674.m in 2015/16. Pre-tax profit increased 18% from 57m the previous year to 67.5m last year. During the trading period, the retailer opened 16 new stores, including a store in Limerick, Ireland in August 2016. A STATEMENT FROM THE DIRECTORS JANUARY 2017 PRE-TAX PROFIT INCREASED 18% IN THE FINANCIAL YEAR TO 29 JANUARY 2017
14 Western Way Retail Park Bury St Edmunds A RARE OPPORTUNITY TO ACQUIRE A NEWLY DEVELOPED RETAIL PARK DELIVERING DEFENSIVE LONG DATED INCOME FROM MARKET LEADING TENANTS WITH THE BENEFIT OF FIXED INCREASES
Western Way Retail Park Bury St Edmunds 15 VAT The property has been elected for VAT and it is anticipated that the transaction will be treated as the Transfer of a Going Concern. Proposal Offers are sought in the region of 11,480,000 (Eleven Million Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser s costs of 6.71% this would reflect the following yield profile: Initial Yield 5.00% Guaranteed Uplift November 2022 5.25% Guaranteed Uplift November 2027 5.54% Guaranteed Uplift November 2032 5.85%
Contacts For further information please contact: Justin Houlihan T: 020 7152 5670 M: 07855 792 294 E: justin.houlihan@cushwake.com Tamsin Layton T: 020 7152 5158 M: 07903 054 706 E: tamsin.layton@cushwake.com Disclaimer Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they are, give notice that: (1) The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract. (2) No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing within this information should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (September 2018) JN 16372.001 / Bury St Edmunds Retail Park