SPORTS DIRECT & DREAMS 383 389 BATH ROAD, SLOUGH SL1 5QA PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY WITH A WAULT OF 9.6 YEARS TERMS CERTAIN
INVESTMENT CONSIDERATIONS n Slough is a south east commercial hub in the Thames Valley providing excellent communications and direct access to London Paddington by train in 14 minutes. n Crossrail s arrival in 2019 will provide a direct service to Bond Street in 32 minutes n Junction 5 of the motorway is located approximately 2.5 miles to the east of the property n The town benefits from a catchment of approximately 160,000 people within a 10 minute drive time and approximately 536,000 within a 20 minute drive time n Two prominent retail warehouse units let to the 5A1 covenant of Sportsdirect.com Retail Ltd and Dreams Limited totalling approximately 37,007 sq ft (3,438.1 sq m) n Open A1 planning consent n WAULT of 9.6 years to break and 12.46 years to expiry n Passing rent of 465,920 pa reflecting a low average rent of 22.31 psf n Sports Direct income benefits from RPI linked rent reviews collared and capped at 1% & 3% n Dreams 2015 rent review outstanding n Freehold n Offers sought in excess of 7,000,000 (Seven Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.25% assuming purchaser s costs of 6.65%.
Slough Retail Park Westgate Retail Park Bath Road Shopping Park A4 A4 Burham Rail Station For identification purposes only.
LOCATION Slough is a major commercial centre situated in the Thames Valley approximately 2.5 miles north of Windsor, 5.5 miles east of Maidenhead and 20 miles west of London. The town has excellent communication links being situated on the A4 which provides access to Maidenhead approximately 5.5 miles to the west, the (Junction 5) approximately 2.5 miles to the east and onto the /M25 interchange a further 2 miles to the east. Slough train station provides direct access to London Paddington with a fastest journey time of 14 minutes. There are also regular direct trains to Birmingham New Street and Bristol Temple Meads with fastest journey times of 1 hour 25 minutes and 1 hour 38 minutes respectively. London Heathrow Airport is situated approximately 5.5 miles to the east and is the busiest airport in the UK and the sixth busiest in the world by total passenger traffic. In 2015 the airport handled a record 75 million passengers. Numbers are likely to significantly increase after the recent announcement that Heathrow is the governments preferred destination for a new runway. SITUATION The property is situated on Bath Road immediately to the west of its junction with Stowe Road. Burnham railway station is situated approximately 0.5 miles to the North West. The area is made up of a mix of commercial and residential uses clustered around the busy A4 arterial road. Nearby occupiers include Esso, Volvo, Halfords, Land Rover and HSS Hire Shop. A414 M11 A41 Hemel Harlow Hempstead St Albans Hatfield Thame M10 A414 Chelmsford J21 A414 A4010 A404 Chesham J20 Epping Chipping J23 Ongar J19 J25 M25 J27 M25 Watford A1 Enfield High M1 M11 Wycombe A355 A413 Billericay J28 0 Harefield A10 A127 Ruislip A12 J29 A404 J16 Romford Basil Hampstead Wembley A40 Henley-on-Thames Uxbridge Maidenhead SLOUGH A4 LONDON A13 A404(M) Southall M25 London J15 City Windsor Hounslow A2 Heathrow A316 Clapham Dartford A329(M) Ashford Gravesend Bracknall Kingston J2 A20 Ascot Upon Thames J12 A309 A3 A23 Bromley A322 M3 J3 Roche Walton-on-Thames Croydon A232 A21 M25 M25 M20 Sandhurst Epsom Sutton Snodla J10 Woking A217 Biggin Hill A22 J9 J5 M26 M2 M3 Fleet A331 A3 M25 Maid J8 J7 J6 Oxted Aldershot GUILDFORD Reigate A26 Dorking Redhill Famham A21 A24 M23 Tonbridge Godalming Horley Paddock Royal Wood Gatwick Tunbridge READING TOKE Stratford Forest Gate Ilford Goodmayes Romford Harold Wood Shenfield Taplow Slough Iver Hayes & Harlington Hanwell Ealing Broadway Bond Street Farringdon Whitechapel Maryland Manor Park Seven Kings Chadwell Heath Gidea Park Brentwood Maidenhead Burnham Langley West Drayton Heathrow Airport Southall West Ealing Acton Paddington Tottenham Main Line Court Road Liverpool Street Canary Wharf Custom House Woolwich Abbey Wood Surface line Tunnel Portal (tunnel entrance and exit) 32 minutes London Paddington 14 mins Birmingham New Street 1 hr 25 mins Bristol Temple Meads 1 hr 38 mins (J5) 2.5 miles Central London 20 miles London Heathrow 5.5 miles
Photo credit: U+I CGI images REGENERATION AND INVESTMENT IN SLOUGH Slough has benefited greatly in recent years with a 1 billion regeneration to improve the town centre including a new commercial district with an expansive retail and leisure space. The outlook is positive with the arrival of Crossrail in 2019, the potential (WRAtH) Western Rail Access to Heathrow, Pinewood Studios expansion, and the proposed third runway at Heathrow Airport. Crossrail will not only help improve Slough s connectivity to Central London with four trains every hour from December 2019, but it has created thousands of jobs and the town has also experienced, between May 2010 and 2016, the biggest effect on house prices of Crossrail stations outside of greater London with an average house price increase in Slough of 60%. The potential WRAtH will create up to 6,000 new jobs in the town and over 800 million of UK and regional economic benefit. The new line would dramatically cut the travel time between Slough and Heathrow from 41 minutes down to just 6 Minutes and it is also estimated that it will cut the number of car journeys taken by close to one million. Pinewood Studios is set to undergo an expansion with a planned 200m being spent over a 15 year period with the creation of 100,000 sq ft of new facilities and the creation of 3,100 net additional jobs. The proposed third runway at Heathrow Airport will see significant investment and will create an estimated 2,700 jobs. Work will begin on the 17.6bn project in 2021 and should be open by 2025. The Department for Transport estimates that the benefits of this to the wider economy could be as much as 61bn and could create as many as 71,000 additional local jobs over the next 14 years. The Heart of Slough is a regeneration project which will transform a key site adjacent to Slough railway and bus station. The project will focus on the creation of a commercial area covering an area of circa 3 hectares. The development will help create 4,800 permanent jobs and nearly 500 temporary jobs. The project is due to be complete around 2021.
HUNTERCOMBE LANE NORTH A355 STOMP RO AD BUCKINGHAM AVENUE FAIRLIE ROAD TAPLOW A4 Bath Road 4 LENT RISE ROAD L A K E END ROAD A4 Bath Road B3026 (Slip Road) A4 Bath Road BURNHAM ELMSHOTT LANE STATION RD 3 CLIPPENHAM LANE BUCKINGHAM AVENUE A4 2 Bath Road LEIGH ROAD EDINBURGH AVENUE 1 CLIPPENHAM LANE RETAIL WAREHOUSING IN SLOUGH The majority of the retail warehouse provision is situated out of town with total out of town retail warehouse provision estimated at approximately 645,000 sq ft. There are two principle retail parks, Slough Retail Park, which recently transacted for 53m which reflected a NIY of 6.25%, and Bath Road Shopping Park which recently transacted for approximately 94m which reflected a NIY of 5.54%. The main out of town retail warehousing supply is clustered along the A4 Bath Road and is situated at the following schemes: 1 SLOUGH RETAIL PARK The park comprises approximately 150,000 sq ft with occupiers including DFS, The Range, Carpetright and Harvey s with rents ranging between 20-30 psf. The park is situated approximately 1 mile to the east of the subject property. 2 WESTGATE RETAIL PARK The park comprises approximately 57,500 sq ft with occupiers including Curry s, PC World and Brantano with rents in the region of 30 psf. The park is situated approximately 500m to the east of the subject property. 3 BATH ROAD SHOPPING PARK The park comprises approximately 195,000 sq ft with occupiers including Argos, B&Q, Boots, New Look, and Next with rents achieving in the region of 30 psf. The park is situated approximately 200m to the east of the subject property. 4 TAPLOW SHOPPING PARK The park comprises approximately 45,000 sq ft with occupiers including Homeserve, Mountain Warehouse, TK Maxx and Nike with rents in the region of 30 psf. The park is situated approximately 2 miles to the west of the subject property.
DEMOGRAPHICS n The catchment within a 10 minute drive time of the property totals approximately 160,000 n The catchment within a 20 minute drive time of the property totals approximately 536,000 n Slough is projected to see significantly above average growth in population over the period 2016-2021 n In 2011 the Slough area contained a significantly above average proportion of adults of working age categorised within the most affluent AB social group n Growth in total employment to 2017 is forecast to be significantly above the national average SLOUGH DRIVE TIMES: 10 minutes 20 minutes High M1 Wycombe A355 A413 Harefield 0 A404 Marlow Ruislip J16 Bisham Stoke Poges Hurley Farnham Royal Uxbridge A40 Maidenhead SLOUGH Iver Heath A404(M) Southall Woodlands Park Eton J15 Paley Street Windsor Hounslow READING Heathrow Old Windsor A316 A329(M) Binfield Woodside Egham Ashford Bracknall Virginia Water Ascot J12 A309 A322 M3 Walton-on-Thames Wembley LON Kingston Upon Thames A3 Hamps C A2
6 4 1 5 26.2m DESCRIPTION 412 408 410 406 PO 398 The property comprises two adjoining retail warehouse units arranged over ground and mezzanine levels. The Sports Direct store is arranged as retailing and storage over both ground and mezzanine floors with a stairwell and lift providing access between the floors. Shelter BATH ROAD LB Ward Bdy CR 27.1m The Dreams unit is arranged as retailing on ground and first floors with storage located on first floor with a stairwell and lift providing access between the floors. There are approximately 102 car parking spaces shared between the units. 401 SITE AREA The property occupies a site area of 1.51 acres (0.61 ha) with a low site coverage of approximately 30.6%. 399a 383 to 389 375 399 TENURE Freehold 1 19 to 24 PLANNING The scheme benefits from open A1 planning use AVON CLOSE Cippenham Baptist Church 3 Youth Club 44 46 32 34 12 14 to 18 El Sub Sta JUPITE 1 Crown Copyright, ES 100004106. For identification purposes only.
TENANCY SCHEDULE Tenant Floor Area sq ft Area sq m Rent pa Rent psf Lease Start Lease Expiry Next Review Comments Sportsdirect.com Retail Limited GF 9,210 855.7 Mezzanine 9,131 848.3 Total 18,341 1,704.0 260,000 22.62 From completion of the sale 15 years with a tenant only break option in year 10 5th year Rent review is RPI compounded 5 yearly with a collar and cap of 1-3%. Rent psf assumes 25% allowance for mezzanine. Dreams Plc GF 9,360 869.6 Mezzanine 9,306 864.5 Total 18,666 1,734.1 205,920 22.00 22/11/2005 21/11/2025 22/11/2015 (outstanding) Mezzanine excluded for rent review purposes. Total 37,007 3,438.1 465,920 COVENANT INFORMATION SPORTSDIRECT.COM RETAIL LIMITED Dun & Bradstreet Rating: 5A1 (Minimum risk) Sports Direct International plc is today the UK s largest sporting goods retailer, and operates a diversified portfolio of sports, fitness, fashion and lifestyle facias and brands They operate approximately 700 stores across the UK and continental Europe. The company has published the following headline accounts for the past 3 years: 27/04/2014 26/04/2015 24/04/2016 Turnover (000 s) 1,864,930 2,074,126 2,063,255 Pre-Tax Profit (000 s) 202,660 262,929 302,501 Total Net Worth (000 s) 665,649 872,400 1,201,706 DREAMS LIMITED Dun & Bradstreet Rating: N1 (Lower than average risk) Dreams is one of Britain s leading bed specialists with approximately 170 stores based around the UK. The 2016 Sunday Times Top Track 250 ranked Dreams 95th making the first time the bed specialist has entered the league. The company has recently made significant investments into its purpose built 130,000 sq ft bed factory in Oldbury, West Midlands. The factory makes over 10,000 beds a week, which are distributed all over the country. The company has published the following headline accounts for the past 3 years: 24/12/2013 24/12/2014 31/12/2015 Turnover 151,260,000 193,575,000 225,865,000 Pre-Tax Profit ( 9,509,000) 378,000 13,493,000 Total Net Worth ( 29,382,000) ( 28,741,000) ( 16,225,000)
VAT EPC S The property is elected for VAT and therefore it is anticipated that the sale will be treated as a TOGC. EPC s available on request. PROPOSAL Offers sought in excess of 7,000,000 (Seven Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.25% assuming purchaser s costs of 6.65%. For further information or to make arrangements for viewing please contact: Andy Pointon 020 7543 6720 Richard Lea 020 7543 6832 Lottie Hayward 020 7543 6750 andy.pointon@allsop.co.uk richard.lea@allsop.co.uk lottie.hayward@allsop.co.uk www.allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: Command D www.commandhq.co.uk 11.16