PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY Unit 1 Southampton Road Salisbury SP1 2LE
INVESTMENT SUMMARY n Prominent retail warehouse in main out of town location n Passing rent of 390,575 per annum n Approximately 51/2 years unexpired n Open A1 (non-food) planning consent n 30,770 sq.ft with 135 car parking spaces n Offers in excess of 4,580,000 n Net initial yield of 8.00% (assuming costs of 6.58%) LOCATION Salisbury is the only city in the county of Wiltshire and lies approximately 32 miles south east of Bristol, 24 miles to the north west of Southampton and 90 miles south west of London. The cathedral city benefits from excellent communication links to both the south coast and the north. Southampton and Bournemouth are easily accessible via the A36 and A338 respectively. Travel to the north including Andover and Basingstoke is via the A303 which lies approximately 8 miles to the north of the city. The city benefits from good rail links being situated on the West of England mainline. The line which is operated by First Great Western offers a half hourly service to London Waterloo with a fastest journey time of 1 hour 22 minutes. There are also half hourly services to Bristol, Bath and Southampton and hourly services to Exeter, Cardiff and Portsmouth. Southampton Airport lies approximately 24 miles to the south east offering passenger flights to over 40 destinations. The city s economy benefits from both a wide affluent catchment and numerous tourist attractions resulting in approximately 700,000 tourist visits to the city per year. Of these visits circa 50,000 come from overseas. Popular cultural visitor attractions include the cathedral, theatres, museums and galleries. Salisbury is home to businesses including Friends Provident, Smiths & Williamson, Audatex, Trethowans LLP and approximately 10,000 students at Wiltshire College.
DEMOGRAPHICS Salisbury benefits from a substantial primary catchment population of approximately 250,000 people and is made up of one of the most affluent populations in the UK ranking 23 on the PROMIS PMA Affluence Indicator. The Salisbury area contains a significantly above average proportion of adults of working age categorised within the most affluent AB social group, C2 (skilled employment) and C1 (junior nonmanual employees). In June 2014 the city had a low unemployment claimant count of 1.1% compared to 2.4% nationally. The city s economy is further enhanced by approximately 700,000 tourist visits each year (wiltshire.gov.uk).
SITUATION The property lies in a very prominent position in the heart of Salisbury s out of town retail provision on Southampton Road, approximately ½ mile south east of the city centre. The property lies immediately adjacent to a B&Q retail warehouse and opposite Southampton Road Retail Park and Bourne Retail Park. Occupiers in very close proximity include Homebase, Currys, Argos, Next, PC World, Pets at Home, Lidl, Halfords and Maplin. There is also a Tesco Extra Supermarket on Bourne Way adjacent to Dunelm and Countrywide Country Store. There is an extension being undertaken to Southampton Road Retail Park with the entire scheme pre-let to DFS, Harveys, B&M and Oak Furnitureland.
DESCRIPTION The property comprises a modern standalone retail warehouse of steel portal frame construction with a sales area to the front and store and mezzanine to the rear. Car parking is to the front and side of the unit with loading to the rear of the side elevation. There are 22 car parking spaces to the front of the unit and a further 113 to the side of the property. Loading is provided to the side elevation adjoining the car park. The main customer entrance fronts onto Southampton Road. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and extends to the following areas on a GIA basis: AREA SQM SQFT Ground floor retail warehouse 2,081.51 22,405 Mezzanine 771.28 8,302 (Mezzanine for rent review purposes) (139.35) (1,500) TOTAL 2,852.79 30,707 SITE The site totals approximately 0.93 Ha (2.30 acres). TENURE Freehold. TENANCY The property is let to Matalan Retail Limited for a term of 20 years with effect from 25th March 2002 (approximately 51/2 years unexpired) at a current passing rent of 390,575 per annum exclusive. The next rent review is 25th March 2017.
PLANNING The property has the benefit of an Open A1 non-food planning consent. COVENANT Matalan was founded in 1985 and is one of the leading fashion and homeware retailers in the UK. The company trades from 221 stores throughout the UK. Matalan s stores are mainly based in out of town retail locations and the company continues to grow in the UK along with stores in Germany, Jordan, Saudi Arabia, Quatar and the UAE. Matalan Retail Limited has the strongest Dun & Bradstreet rating of 5A1 and an overall condition of strong (indicating minimal risk of business failure). For the last three financial years Matalan Retail Limited reported the following accounts:- 28/02/2015 01/03/2014 23/02/2013 ( 000s) ( 000s) ( 000s) Turnover 1,094,000 1,122,900 1,125,400 Pre Tax Profit 20,300 11,400 17,600 Shareholders Funds 300,100 234,300 273,400 VAT The property has been elected for VAT and therefore VAT will be payable. It is intended that the property will be sold as a TOGC. EPC The property has an energy performance rating of C 52. A copy of the certificate is available on request. PROPOSAL We are instructed to seek offers in excess of 4,580,000 (Four Million Five Hundred and Eighty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this price would reflect a net initial yield of 8.00% assuming costs of purchase of 6.58%. CONTACTS For further information or if you wish to arrange a viewing, please contact :- ANDREW FRANCK-STEIER 0121 513 0891 andrew.franck-steier@fspproperty.co.uk BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.