OPEN CONSENTED PARK NEWQUAY ROAD PARK TRURO ENTER >
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD Truro, the dominant commercial administrative centre for Cornwall, is situated in a highly accessible position on the A390, 28 miles east of Penzance and 56 miles west of Plymouth. The city has a very limited supply of retail warehousing, with Newquay Road Retail Park being the only scheme situated on the eastern side of the city. The property is located in an accessible and improving retail location with a new Waitrose development planned opposite. The park totals 49,296 sq ft, arranged in 4 units let to Dunelm, Harveys, Dreams and Hobbycraft. The scheme benefits from a wide planning consent allowing the sale of all comparison goods. The scheme is let off at relatively low rents of between 12.50 and 16.00 per sq ft. There is asset management and rental growth potential with the possibility of further improving the tenant line up in the future. Our clients are seeking a price in excess of 10,210,000 (Ten Million, Two Hundred and Ten Thousand Pounds) which will provide a purchaser with an attractive net initial yield of 6.50%, assuming purchaser s costs of 5.80%.
83 OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD A39 Great Torrington A361 Wellington 27 26 A358 3 Ilminster 88 Yeovil St Just Sennen St Ives Penzance Hayle A394 Newquay Camborne 75 Redruth Helston A39 Padstow A392 78 St Mawes Falmouth Tintagel Bodmin A390 A391 St Austell TRURO A39 A38 Fowey Launceston Looe A387 A388 A388 A390 Liskeard Saltash Torpoint Okehampton A386 Tavistock Buckfastleigh PLYMOUTH Plympton A379 Ashburton A381 A382 A385 A38 Totnes A379 Kingsbridge Salcombe Crediton EXETER A380 31 29 30 Dartmouth M5 A376 52 Seaton Sidmouth Exmouth Dawlish Teignmouth Newton Abbot Torquay Paignton Brixham Axminster Lyme Regis A35 Bridport LOCATION Lizard & DEMOGRAPHICS The cathedral city of Truro is the administrative and commercial centre for Cornwall. The city is situated 285 miles south west of London, 28 miles east of Penzance, 11 miles north of Falmouth and 14 miles west of St Austell. Truro benefits from good road communications, being located 6 miles south of the, and adjacent to the A390, which provides the major carriageway through the south of Cornwall. Both the A390 and also provide direct access to Exeter and Junction 31 of the M5 motorway, situated approximately 87 miles to the east. Truro is served by a direct train service from London Paddington, with a journey time of approximately 4 hours 20 minutes. Newquay Airport is located 17.5 miles to the north providing flights to several UK and European destinations. PMA estimate that Truro s primary catchment area population is 416,000 people, ranking it 57 out of the 200 top PMA centres in the UK. Truro also has an estimated shopping population of 218,000 people, ranking it 53. There are 131,646 people living within a 20 minute drive time of the subject property, which CACI estimate will increase by 4.64% by 2017. Given the lack of retail offer and competition from the surrounding towns, Truro provides the predominant retail offer in south west Cornwall and as such draws upon a wide catchment area, including the nearby towns of St Austell, Camborne and Falmouth. Retail expenditure in Truro is significantly above average, demonstrating the relative affluence of the area: Truro Retail PMA Average Top 200 Centres Total in-store comparison retail expenditure 2012 ( m) 945 795 Per capita retail warehouse expenditure 2012 478 471 Per capita in-store comparison expenditure 2012 2,270 2,287 Forecast growth in comparison retail expenditure 2012 2017 (per annum % real) 1.6% 1.4%
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD NEWQUAY ROAD PARK A39 NEWQUAY R D UNIO N HILL THREEMILESTONE PARK TRELISKE PARK A390 T R E G OLLS ROAD ROYAL CORNWALL HOSPITAL A390 HIGHER BESORE RD A390 TRELISKE A390 HIGHERTOWN THREEMILESTONE HIGHERTOWN A390 GREEN LANE TRURO GARRAS WHARF PARK A39 MORLAIX AVE A39 Despite the size of its retail catchment and retail dominance in south west Cornwall, Truro has a limited supply of retail warehousing, the majority of which is situated on the western side of Truro. The subject property is the only retail warehousing located on the eastern side of the city. TRELISKE PARK (86,000 sq ft) Diageo Pension Fund This scheme is situated approximately 2 miles to the west of Truro city centre and has an open A1 non-food consent. It is occupied by Pets at Home, Argos, Brantano, Homebase, PC World and Carpetright. The highest rent achieved was a letting to Argos at 21.00 per sq ft in July 2006. In close proximity to Treliske Retail Park is a standalone unit of circa 34,000 sq ft occupied by The Range. THREEMILESTONE PARK (112,500 sq ft) Petros Developments Approximately 2.75 miles to the west of Truro city centre is Threemilestone Retail Park, which benefits from an open A1 nonfood consent, with the occupiers being Wickes, Matalan and Home Bargains. In close proximity is a proposed new development, which will comprise a standalone DFS of 16,000 sq ft and an A3 unit occupied by KFC. GARRAS WHARF PARK (34,300 sq ft) Smiths Industries Pension Fund To the south of Truro city centre fronting the A390 situated close to a Tesco foodstore is an older 2 unit scheme where the occupiers are Staples and Currys. The rents on the Currys unit (14,500 sq ft) reflects 18.75 per sq ft, whilst the rent on the Staples unit (19,800 sq ft) equates to 16.66 per sq ft. On the opposite side of the A390 is a standalone Halfords unit (10,051 sq ft), which is owned by a local investor.
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD Newquay Road Retail Park is situated in a highly accessible position at the junction of the A38 Newquay Road and the A390 Tregolls Road, approximately 1 mile east of the city centre. Newquay Road effectively forms the edge of the Truro conurbation with the majority of the surrounding area being occupied by residential accommodation. PROPOSED WAITROSE DEVELOPMENT Directly opposite the subject property is a site where works have commenced for a mixed use development, which will be anchored by a Waitrose foodstore. The development will total 41,538 sq ft of retail floorspace to also include an associated Cornish food market. There will also be a 1,379 space park and ride bus service improving public transport and accessibility to the area and around 100 new residential dwellings. The scheme has planning consent and work has recently started on site with completion due in late 2015. Once developed, together with the subject property, this will form a major retail attraction for east Truro and increase the critical mass of the area. This we believe will help attract new tenants to the subject property and increase the existing tenant s trade. DESCRIPTION The subject property extends to a total of 49,296 sq ft and is anchored by Dunelm. It is arranged as 2 terraces with car parking to the front and side of each. The scheme was redeveloped in 2012 and provides modern attractive retail space, with glazed frontages and brick and metal profile clad elevations. Internally, the units are fitted out to the individual tenant s specification. Units A2, B1 and B2 all benefit from having extensive mezzanine floors, which are partially used for trading. There is an area extending to 4,840 sq ft voided off at the rear of the Harveys unit which is not rentalised. Behind this is a service corridor which is demised to Dunelm for their exclusive use, but not included within the GIA of the unit. Dream s GIA excludes a service corridor, which is within their demise for their exclusive use. The scheme benefits from 204 car parking spaces, equating to a ratio of 1:247 sq ft. Servicing is located to the northern elevation of the Dunelm unit and the side elevation of the Hobbycraft unit. Service and customer access and egress is via Newquay Road.
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD The property benefits from an average income weighted unexpired lease term of over 10.7 years (including breaks), and is let in accordance with the tenancy schedule below: Unit Tenant GIA (sq ft) Lease Start Date Term (Years) Lease Expiry Date Next Rent Review Current Rent (per annum) Rent (per sq ft) Comments A1 Harveys 10,300 17/10/1997 24.5 26/04/2022 01/05/2017 162,225 15.75 C A2 Dunelm 24,000 31/01/2011 15 30/01/2026 31/01/2016 300,000 12.50 18,000 sq ft mezzanine space. The rent is capped at review at 2% p.a. C compounded over 5 years. There is a service charge cap for the first 5 years of the lease at 12,312.50 B1 Dreams 7,553 20/06/2011 15 19/06/2026 20/06/2016 120,848 16.00 C B2 Hobbycraft 7,443 17/08/2012 15 16/08/2027 17/08/2017 119,040 16.00 The rent reviews at years 5 and 10 will be upward only to open market C value, capped at 3% compounded over 5 years. Tenant break 17/08/2023 TOTAL 49,296 702,161 14.24 EPC Rating TENURE The site, as outlined in red below, is held freehold. SERVICE CORRIDOR NEWQUAY ROAD VOID PLANNING Planning consent was granted in 2009 and 2010 for the refurbishment of the scheme which included unit subdivision works and for the inclusion of mezzanines within Units A2, B1 and B2.The consent allows for the scheme to be used for the sale of comparison goods. The planning permissions are available on request. SERVICE CORRIDOR TREGOLLS ROAD (A390)
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD POTENTIAL Given the size and extent of its catchment, Truro has a very limited supply of retail warehousing, particularly on the eastern side of the city, where Newquay Road Retail Park is the only out of town scheme. The park was fully refurbished in 2012 and pre-let to the existing tenants. However, with the improving occupational market, we believe there is the opportunity to further enhance the tenant line up, particularly with retailers who can be accommodated within the open A1 non-food planning consent. Dreams was sold to Sun Capital Partners in March 2013 in a pre-pack administration. Dreams remained in occupation of 171 stores including their store on the subject property, which we understand trades well. However, there have been approaches from several retailers for the unit and we believe there is the opportunity to re-let this to a softer retailer, subject to agreeing a surrender with Dreams. The void area to the rear of the Harveys unit offers the opportunity to extend the current unit by 4,840 sq ft. This extra space offers the potential to create one large unit extending to circa 15,140 sq ft or to subdivide into 2 units of circa 7,500 sq ft each. We believe the proposals for a mixed use development, anchored by a Waitrose foodstore, on the site directly opposite will also significantly enhance the location s attractiveness as a retail destination and help attract new occupiers to the pitch. In addition, the scheme is let off relatively low rents, providing the potential for good levels of rental growth in the future. TENANTS COVENANTS The scheme is anchored by the 5A1 covenant of Dunelm. The most recent accounts for the individual tenants are as follows: Tenant Year Ending Sales Turnover (000 s) Property Portfolio (No 15) Ltd t/a Harveys Pre-Tax Profit (000 s) Net Worth (000 s) D&B Rating 30/06/2013 n/a n/a - 46,746 N4 25/06/2012 n/a n/a - 46,746 Dunelm (Soft Furnishings) 29/06/2013 677,192 106,426 47,877 5A 1 Ltd 30/06/2012 603,729 96,562 36,421 Hobbycraft Trading Ltd 24/02/2013 119,104 6,346 48,952 5A 1 19/02/2012 106,522 11,519 42,447 Night Realisations plc 24/12/2010 256,131 4,433 26,048 O4 t/a Dreams plc 24/12/2009 243,570 17,900 42,077
OPEN CONSENTED PARK NEWQUAY ROAD PARK, TRURO TR1 1XD VAT The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction will be dealt with as a TOGC. RATIONALE Limited supply of retail warehousing in Truro. Recently refurbished scheme let with an income weighted average unexpired lease term of 10.7 years. Retail location to improve further with the development of a Waitrose foodstore and park and ride scheme opposite. Let at affordable rents with good rental growth prospects. Asset management potential to further enhance the tenant mix and add value. We are instructed to seek offers based on an attractive net initial yield of 6.50% (assuming purchaser s costs at 5.80%). This reflects a purchase price of 10,210,000 (Ten Million, Two Hundred and Ten Thousand Pounds), subject to contract and exclusive of VAT. CONTACT DETAILS Miles Marten Ellie Kirkby Tel: 020 7317 3777 Tel: 020 7317 3790 Mobile: 07770 748 290 Mobile: 07764 241 898 Email: m.marten@wilkinsonwilliams.co.uk Email: e.kirkby@wilkinsonwilliams.co.uk Wilkinson Williams Heathcoat House 20 Savile Row London W1S 3PR www.wilkinsonwilliams.co.uk MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. 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. 2. 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. 3. 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. 4. 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 and 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. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. 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. April 2014. Designed and produced by Creativeworld Tel: 01282 858200