The Norham Portfolio A High Yielding UK Retail Portfolio
Norham Portfolio Investment Summary High yielding UK retail portfolio let to notable tenants including Carphone Warehouse, Monsoon, BrightHouse Santander and the Disney Store. Total income of 485,135 with upcoming rent review WAULT of approximately 5 years to expiry Significant asset management opportunities. We are instructed to seek offers in excess of 4,550,000 which reflects an attractive net initial yield of 10.08% assuming purchaser s costs of 5.8% 2-6 Murraygate, Dundee 16 Baxter Gate, Doncaster 1 Market Street, Pontypridd 33 High Street, Ramsgate
Norham Portfolio Portfolio Analysis 1 Market Street, Pontypridd, CF37 2ST 6% Income by Location 16 Baxter Gate, Doncaster, DN1 1JU 22% 2-6 Murraygate, Dundee, DD1 2AZ 64% 33 High Street, Ramsgate, Kent, CT11 9AG 8% Income by lease length 5 10 Years 44% 1-5 Years 50% 15 20 Years 6%
Norham Portfolio Tenancy Schedule Address Tenant Size ITZA Lease Commencement Lease Expiry Rent 16 Baxter Gate, Doncaster, DN1 1JU Alliance and Leicester Plc t/a Santander (Not in occupation) 371.23 (3,996 sq ft) 89.56 sq m (964 sq ft) 23.4.2001 22.4.2021 106,635 Unit A - Carphone Warehouse 51.74 sq m (557 sq ft) 44.22 sq m (476 sq ft) 24.5.2015 23.5.2018 32,500 2-6 Murraygate, Dundee Unit B - Disney Stores Ltd 848.47 sq m (9,133 sq ft) 171.68 sq m (1,848 sq ft) 14.7.1997 13.7.2017 166,000 Unit C - Monsoon Holdings Ltd 240.15 sq m (2,585 sq ft)** 109.34 sq m (1,177 sq ft) 14.10.1997 13.10.2022 110,000 1 Market Street, Pontypridd, CF37 2ST More 4 Your Money Limited 400.85 sq m (4,314 sq ft) 224.8 sq m (2,420 sq ft) 3.10.2014 2.10.2035 30,000* 33 High Street, Ramsgate, Kent, CT11 9AG Caversham Trading t/a Brighthouse 429 sq m (4,627 sq ft) 192.6 sq m (2,420 sq ft) 2.09.2010 1.09.2020 40,000 Total 485,135 * Includes vendor top up on stepped rent ** 2 nd Floor inaccessible and therefore does not form part of the measurements.
Carphone Warehouse, Disney Stores & Monsoon 2 6 Murraygate, Dundee DD1 2AZ Location Dundee is located approximately 60 miles north of Edinburgh and has a population of 150,000 people. The city is located on the east coast of Scotland enabling good access to the M90 linking Dundee to the wider region. Dundee is easily accessed by rail including the InterCity service to the south and regular trains from Dundee link the town to Edinburgh and the east coast mainline. Description The property comprises a three storey building of traditional sandstone construction surmounted by a pitched and slated roof. The property provides three modern retail units with ancillary and storage accommodation behind the period façade. Internally, the property has been fitted to each of the tenant s specification and generally comprise timber and vinyl floors, plastered and painted walls, plastered and painted ceiling with fluorescent lights and spotlights. The retail units have the further benefit of a rear service access which is common to all three tenants and is accessed directly off Commercial Street. Situation The subject property is situated in a prominent corner position on the northern side of the Murraygate at its intersection with Commercial Street. Murraygate is the prime retailing street in Dundee nearby occupiers include Zara, J D Sports, Dorothy Perkins and H&M. Accommodation Unit A Description Sq M Sq Ft Ground Floor 51.74 557 ITZA 44.22 476 Unit B Description Sq M Sq Ft Ground Floor 182.08 1,960 First Floor 219.71 2,365 Second Floor Store 233.27 2,511 Third Floor 213.39 2,297 Total 848.47 9,133 ITZA 171.68 1,848 Unit C Description Sq M Sq Ft Ground Floor Sales 128.94 1,388 First Floor Stores 111.20 1,197 Total * 240.15 2,585 ITZA 109.34 1,177 * 2 nd floor inaccessible and not measured.
Carphone Warehouse, Disney Stores & Monsoon 2 6 Murraygate, Dundee DD1 2AZ Tenancy Information The property is let on three tenancies with a total income of 308,500 pa as follows: Unit A Carphone Warehouse have recently renewed their lease for a further 3 years at an annual rent of 32,500 expiring on 23 May 2018. Unit B The unit is let on a 20 year lease to Disney Stores from 14 July 1997 expiring on 13 July 2017 at an annual rent of 166,000. Unit C Unit C is let to Monsoon Holdings Ltd for 25 years from 14 October 1997 expiring on 13 October 2022 at an annual rent of 110,000. Covenant The Carphone Warehouse - 02142673 Carphone Warehouse is a British mobile phone retailer, with over 2,400 stores across Europe. Carphone Warehouse is a subsidiary of Dixons Carphone following the merger of Dixons Retail and Carphone Warehouse in 2014. 29.03.14 30.03.13 31.03.12 Turnover 1,783,569,000 1,671,731,000 1,513,072,000 Pre-tax Profit 90,986,000 98,895,000-108,239,000 Shareholders Funds 964,141,000 874,654,000 850,041,000 The Disney Store Ltd 02523767 The Disney Store opened its first store in 1987 and forms part of the Walt Disney Company specialising in the retailing of Disney merchandise. Monsoon Holdings Limited 01200163 Monsoon is a fashion retailer founded in 1973 and now trades over 1,000 stores along with sister brand Accessorize. Tenure Freehold EPC EPC s are available on request. 27.09.2014 28.09.13 29.09.12 Turnover 128,126,000 122,848,000 123,637,000 Pre-tax Profit 6,930,000 311,000 370,000 Shareholders Funds 14,437,000 9,924,000 9,655,000 30.08.2014 31.08.13 25.08.12 Turnover - - - Pre-tax Profit 20,825,369 7,194.815 5,809,648 Shareholders Funds 30,237,871 30,412,503 30,481,136
Santander 16 Baxter Gate, Doncaster DN1 1JU Location Doncaster is one of the principal market towns in South Yorkshire located approximately 20 miles north east of Sheffield and 28 miles south east of Leeds. The town lies immediately to the north of the intersection of the A1(M) and M18 motorways, providing excellent access to the motorway network. The town is served by Doncaster railway station providing regular direct services to Leeds, York, Hull and London with an approximate journey time to London Kings Cross of 1 hour 40 minutes. Description The property comprises a corner terraced, three storey building of brick and block cavity wall construction. The unit benefits from dual frontages onto St Geroge Gate and Baxter Gate and is fitted with suspended ceilings, recessed spot lights, air conditioning and cashier desks. The first floor is fitted out as cellular meeting rooms whilst the second floor is used as ancillary storage and staff area including WC s and kitchenette. Situation Baxter Gate is a primary pedestrianised retail pitch in Doncaster benefitting from high levels of footfall. The unit is situated advantageously between House of Fraser and Primark. Other surrounding occupiers include Greggs, Marks and Spencer and Boots. The indoor and outdoor markets are located a short distance to the east and the Frenchgate Shopping Centre to the west. Accommodation Description Sq M Sq Ft Ground Floor 126.53 1,362 First Floor 124.43 1,339 Second Floor 120.27 1,295 Total 371.23 3,996 Ground Floor ITZA 89.56 964
Santander 16 Baxter Gate, Doncaster DN1 1JU Tenancy Information The property is let to Alliance and Leicester Plc (now part of Santander UK Plc) for a term of 20 years expiring 22 April 2021. The lease is drafted on Full Repairing and Insuring terms with 5 yearly upward only rent reviews to Market Rent. The passing rent is 106,635 per annum exclusive of VAT. The tenant is no longer occupying the property and has expressed interest in paying to surrender the lease. EPC The property has an Energy Performance Certificate rating of D (99). Further information is available upon request. Covenant Alliance & Leicester was taken over by and subsequently merged into Santander UK Plc in 2008. Santander UK Plc has a D&B rating of A1, a summary of recent financial performance is set out below: Santander UK Plc - 02294747 31.12.14 31.12.13 31.12.12 Turnover - - - Pre-tax Profit 1,399,000,000 1,139,000,000 1,231,000,000 Shareholders Funds 14,537,000,000 12,250,000,000 12,949,000,000
More 4 Your Money 1 Market Street, Pontypridd CF37 2ST Location Pontypridd is situated within the administrative county of Rhondda Cynon Taff and has a population of approximately 30,000 people. The town is located approximately 12 miles north of Cardiff and is connected to the wider road network via the A470 trunk road which links North and South Wales to the M4 motorway. Regular rail services via the Valley Lines rail network link Pontypridd to Cardiff and to the wider rail network. Situation The subject property is located on the west side of Market Street forming part of the retail core of Pontypridd Town Centre. The unit fronts the pedestrianised pitch of Market Street with notable surrounding occupiers including Superdrug, New Look, Costa and Boots. Description The subject property comprises a two storey unit of brick construction under a pitched slate roof. The property is currently fitted out as a retail unit and the first floor level is used as storage. The ground floor includes a mezzanine level comprising office and kitchen facilities. To the rear of the property there is a shared service yard used for bin storage and car parking. Accommodation Description Sq M Sq Ft Ground Floor Sales 224.8 2,420 Mezzanine 14.6 157.15 First Floor Storage 142.4 1,533 Total 381.7 4,108 Ground Floor ITZA 85.4 919 Tenancy Information The property is let to More For Your Money Limited on a 21 year lease commencing on the 3 October 2014. The rent payable is 15,000 per annum for the first, second and third years of the term, rising to 30,000 per annum thereafter until the first rent review on 3 October 2019. the rent is to be topped up to the latter figure by the vendor. The tenant has the option to terminate the lease on the tenth and fifteenth anniversary of the rent commencement date subject to no less than six months notice.
More 4 Your Money 1 Market Street, Pontypridd CF37 2ST Tenure Freehold. Covenant More 4 Your Money - 08399167 More 4 Your Money was registered on 12 February 2013 and is a locally based value retailer. 28.02.14 Turnover - Pre-tax Profit - Shareholders Funds 16,481 EPC The property has an EPC Rating of E (101). Further information is available upon request.
BrightHouse 33 High Street, Ramsgate, Kent Location Ramsgate is a port town located on the eastern coast of Kent, approximately 80 miles east of London and 17 miles north east of Canterbury. The town has an urban population of approximately 40,000 people with a further 127,000 in the local district. Ramsgate benefits from excellent transport links with the A253 and A229 trunk roads linking the town directly to the M2 motorway and M25 to the west. Situation The unit is located on the pedestrianised High Street which forms part of the prime retailing core of Ramsgate. Notable occupiers in the immediate area include WH Smith, Boots and Specsavers. Description The property is a mid terrace building arranged over ground, first and second floors. The unit benefits from an extensive glazed high street frontage. Internally the unit is fitted out to the tenants own specification with sales accommodation on the ground and first floors whilst the second floor is used for storage. Externally to the rear of the property there is a concrete surface yard providing loading and parking facilities. Accommodation Description Sq M Sq Ft Ground Floor Sales 192.6 2,073 Ground Floor Ancillary 10.68 115 First Floor 210.16 2,264 Second Floor 50.10 539 Total 463.55 4,991 Ground ITZA 87.66 944 Tenancy Information The unit is let to Caversham Trading t/a Brighthouse on a 10 year lease from 2 September 2010 to 1 September 2020 at an annual rent of 40,000, subject to a cap of 48,000. A tenants option to break has recently been removed highlighting BrightHouse s commitment to the unit.
BrightHouse 33 High Street, Ramsgate, Kent Covenant Strength Caversham Trading Limited - 05396147 Caversham Trading is owned by private equity firm Vision Capital and trades as Brighthouse, one of the UK s leading rent-to-own retail chain providing home electronics, domestic appliances and household furniture to over 270,000 people. 31.03.14 31.03.13 31.03.12 Turnover 70,032,000 75,961,000 186,838,000 Pre-tax Profit 7,131,000 8,235,000 3,625,000 Shareholders Funds 68,075,000 58,815,000 50,469,000 EPC The property has an Energy Performance Certificate of G (248). Further information is available upon request.
Norham Portfolio Asset Management The portfolio provides many asset management opportunities including ; Negotiate a surrender of the current lease (with premium) on the Baxter Gate property and secure a new letting capitalising on the unit s strong trading position. Re-gear the lease to the Disney Store improving the value and WAULT on the Murray Gate property. Sell out smaller units in Kent and Pontypridd which are likely to be of significant appeal to private investors and well suited to auction sale. Proposal We are instructed to seek offers in excess of 4,550,000 which reflects an attractive net initial yield of 10.08% assuming purchaser s costs at 5.8%. Our clients may also consider individual offers for the individual assets. VAT & TOGC All properties are elected for VAT and it is proposed that the sale be treated as a transfer of a going concern (TOGC).
Norham Portfolio Contact For further information please contact Richard Turner +44 (0)191 223 5720 richard.turner@cushwake.com Peter Atkinson +44 (0)191 223 5715 peter.atkinson@cushwake.com Katy Paxton +44 (0)191 223 5752 katy.paxton@cushwake.com Stephen Bibby +44 (0)131 222 4523 stephen.bibby@cushwake.com Sarah Stewart +44 (0)131 222 4524 Sarah.stewart@cushwake.com Cushman & wakefield copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.