Prime Freehold Convenience Retail Investment
INVESTMENT CONSIDERATIONS Harrogate is an attractive Victorian spa town and one of the most affluent catchments in the UK Prominent multi-let convenience retail investment Strategic location on pedestrianised Oxford Street and Cambridge Road Attractive income profile to 5A1 covenants including; McDonald s, Tesco, Superdrug and Greene King Plc Current passing rent of 473,403 per annum WAULT of 5.84 years (to expiry) Freehold PROPOSAL Convenience retail located in the wealthy spa town of Harrogate Offers sought in excess of 7,720,000 reflecting a net initial yield of 5.75%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.66%. 02
8 1 17 10 M66 2 3 5 6 9 14 13 12 Burnley 19 20 M60 Colne Rochdale 21 MANCHESTER Wilmslow 1 M60 Cheadle 22 Oldham 3 Skipton A59 Keighley M62 Ilkley 23 Glossop Bingley Shipley BRADFORD Halifax MANCHESTER HARROGATE Brighouse 24 25 26 Huddersfield A59 LEEDS BRADFORD AIRPORT 27 Batley Stocksbridge Ripon A660 1 A61 Knaresborough A61 Wetherby 47 43 40 38 41 39 M1 A61 LEEDS 37 SHEFFIELD 36 30 35 47 45 A1M 43 31 32 Wakefield Garforth Hemsworth Barnsley A59 Castleford 34 1 34 33 32 31 33 Rotherham M1 A1 38 37 M18 36 YORK 34 M62 A1M 34 Worksop Selby 4 Doncaster M18 5 6 1 36 37 Thorne DONCASTER SHEFFIELD AIRPORT Gainsborough Retford Goole 2 Pocklington M62 3 38 Scunthorpe LOCATION The property is located in the picturesque Victorian spa town of Harrogate, North Yorkshire. Harrogate is located 16 miles (26 km) north of Leeds, 21 miles (34 km) west of York and 210 miles (338 km) North of London. The town benefits from good communications links: ROAD RAIL HARROGATE Harrogate enjoys excellent road communications with A61 providing direct links to Leeds, A59 to York and the A1 (M) just 8 miles (13 km) away, providing direct links to London with an approximate drive time of 4 hours and 20 minutes. Regular rail services offer direct connections to Leeds and York with a travel time of 30 minutes and a travel time of 2 hours and 50 minutes to London King s Cross Station. Macclesfield 30 A1 AIR Harrogate is located 10 miles (16 km) from Leeds Bradford International Airport, with regular bus services providing direct transportation. 29 Harrogate Happiest place to live in Britain (2013, 2014 & 2015) 03
Oxford Street Harrogate Bus Station Cambridge Street Victoria Shopping Centre Harrogate Train Station James Street Montpellier Hill SUBJECT PROPERTY 04
BUS STATION SITUATION The property is located at the heart of Harrogate town centre, forming part of the pedestrianised retail precinct. HARROGATE Prominently positioned at the interchange of pedestrianised Oxford Street and Cambridge Road, the subject property adjoins the Church of St Peter, one of the oldest buildings in Harrogate and representing the original town epicentre. multiple retailers, including; M&S, Debenhams, Primark, Boots and River Island in addition to being just 300 metres from Harrogate Train Station, Victoria Shopping Centre and Harrogate s main bus interchange. The location is subject to high levels of pedestrian footfall, benefiting from close proximity to national HARROGATE RAILWAY STATION 04
RETAIL PROVISION & DEMOGRAPHICS Harrogate is an established retail destination and one of the most affluent towns in the United Kingdom, ranking 25 out of PROMIS Centres. (Source: PMA Affluence Indicator) Harrogate has a total population of 149,000 (2017) and a shopping population of 76,868, with approximately 30% of the 15-minute drive time population ranked in the highest AB demographic group (source: Experian). The positive retail environment in Harrogate is forecast to improve, with retail spend over the period 2017-2022 forecast to see significantly above average growth (source: PROMIS Centres), while Harrogate Tourism has outlined plans to increase visitors to the district by one million by 2020 (source: Visit Harrogate). Harrogate s retail and local economy is supported by a flourishing tourism and commercial industry, with the twice yearly Harrogate Flower Show attracting more than 100,000 visitors annually and Harrogate Conference Centre, the third largest centre in the UK and one of the largest in Europe, attracting an estimated 350,000 delegates per annum and injecting an estimated 150 million per annum into the local economy. The catchment population within a 15-minute drive time is extensive with 44,285 households: Drive Time Population Number of Households 5 minutes 35,486 16,375 10 minutes 79,316 34,651 15 minutes 102,175 44,285 06
DESCRIPTION The subject property comprises a significant retail and leisure block prominently located at the interchange of the pedestrianised Oxford Street and Cambridge Road. The property was constructed in the mid-1980s and comprises an attractive three storey steel framed building with brick elevations and a pitch tiled roof. The accommodation has more recently been divided into six retail and leisure tenancies at ground floor with ancillary / storage accommodation on the upper levels, with a A3 unit trading across the basement of the building. TENURE Freehold (title NYK169420). HARROGATE 07
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TENANCY & ACCOMMODATION HARROGATE Unit Tenant Trading Name Start Date Expiry Date Break Date Basement 1 2 & 3 4 5 & 6 7 Osprey Acquisition Company Superdrug Stores Plc Tesco Stores Limited Game Retail Limited McDonald s Restaurants Limited Yorkshire Building Society Rent Review Date Passing Rent ( pa) ZA Breakdown The Den 25-Mar-84 24-Mar-19 36,500 4,551 4,551 ITZA (psf) Area (sq ft) Ground Floor (sq ft) First Floor (sq ft) Second Floor (sq ft) Superdrug 29-Sep-05 28-Sep-20 106,750 83 1,115 4,319 3,112 538 669 Tesco Express 18-Sep-08 17-Sep-23 18-Sep-18 87,803 46 1,693 5,559 3,775 858 926 Game 2-Jul-18 1-Jul-23 1-Jul-21 50,000 56 819 2,213 1,397 327 489 McDonald s 29-Sep-10 28-Sep-30 29-Sep-20 122,350 72 1,461 5,006 2,001 1,784 1,221 Yorkshire Building Society 21-Sep-12 20-Sep-22 70,000 63 977 4,064 2,484 1,020 560 TOTAL 473,403 25,712 09
Weighted Income: 18.5% Tesco 14.8% Yorkshire Building Society 22.5% Superdrug 25.8% McDonald s 7.7% Greene King 10.6% Game Diversified investment to convenience retailers 10
COVENANTS Yorkshire Building Society (Company No. 11108399) is the third largest building society in the United Kingdom, with its headquarters in Bradford, West Yorkshire. The society was originally founded in 1864 and now trades from 240 locations servicing more than 3 million members. Yorkshire Building Society has a D&B rating of O1 and offer a minimum risk of business failure. McDonald s Restaurants Ltd (Company No. 01002769) is the world s largest restaurant chain by revenue and second largest private employer, serving 69 million customers daily across more than 100 countries and 37,000 outlets. McDonald s Restaurants Ltd has a D&B rating of 5A1 and offer a minimum risk of business failure. 31/12/2016 31/12/2015 31/12/2014 Sales Turnover 1,574,237 1,535,510 1,431,889 Pre-Tax Profit 287,479 270,826 216,991 Net Worth 1,044,866 903,374 925,535 Tesco Stores Ltd (Company No. 519500) is wholly owned by Tesco Plc, one of the largest retailers in the world. Established in 1919, Tesco now operate from over 6,902 stores nationwide, employing over 476,000 staff. Tesco is the leading food store operator within the UK, the largest of the Big Four supermarket chains dominating the UK s grocery market. Tesco holds a current market share of 27.7% (at 25/05/2018). Tesco Stores Ltd has a D&B rating of 5A1 and offer a minimum risk of business failure. 25/02/2017 27/02/2016 28/02/2015 Sales Turnover 40,134,000 39,843,000 41,731,000 Pre-Tax Profit 266,000-231,000-3,962,000 Net Worth 749,000 1,077,000-4,835,000 Superdrug Stores plc (Company No. 00807043) is a health and beauty retailer in the United Kingdom, and the second largest in the country with 800 store locations and 14,000 employees. Superdrug Stores plc has a D&B rating of 5A1 and offer a minimum risk of business failure. 31/12/2016 26/12/2015 27/12/2014 Sales Turnover 1,213,600 1,099,223 1,047,696 Pre-Tax Profit 80,385 56,842 35,002 Net Worth 86,291 50,149 134,127 Game Retail Ltd (Company No. 01709784) was founded in 1979 and is a publicly listed company and a member of the FTSE 250. The company has more than 37,000 employees across 1,000 locations across the UK and Ireland. Game Retail Ltd has a D&B rating of 5A 2 and offer a lower than average risk of business failure. 29/07/2017 30/07/2016 25/07/2015 Sales Turnover 493,112 583,337 651,828 Pre-Tax Profit - 7,135 3,921 23,888 Net Worth 68,866 68,310 28,746 Greene King Plc (Company No. 00024511) is the largest pub retailer and brewer in the United Kingdom. Founded in 1799, the company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Greene King Plc has a D&B rating of 5A1 and offer a minimum risk of business failure. 30/04/2017 01/05/2016 03/05/2015 Sales Turnover 2,216,500 2,073,000 1,315,300 Pre-Tax Profit 184,900 189,800 118,200 Net Worth 671,700 577,100 328,000 11
PROPOSAL 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). EPC The Energy Performance Certificates for the property can be obtained upon request. Offers sought in excess of 7,720,000 reflecting a net initial yield of 5.75%. Subject to contract and exclusive of VAT. Yields are net of purchaser s costs of 6.66%. 12
CONTACTS Andrew Marshall T: 020 7344 6854 E: andrew.marshall@colliers.com Tim McIntosh T: 020 7487 1852 E: tim.mcintosh@colliers.com James Watson T: 020 7344 6877 E: james.watson@colliers.com 50 George Street, London, W1U 7GA 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 employed or engaged by Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (May 2018). Colliers International is the licensed trading name of Colliers International Property Advisors UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA. Designed and produced by Creativeworld Tel: 01282 858200 13