Retail Warehouse Investment Opportunity On the instructions of Alistair Wright & Simon Hunt Joint LPA Receivers
Investment Summary Melton Mowbray is a historic and affluent market town in Leicestershire, 22km (14 miles) north-east of the city of Leicester Highly prominent retail warehouse scheme, fronting the busy A607 Norman Way and situated just north of the main pedestrianised trading area at the very heart of Melton Mowbray town centre Three attractive retail units extending to 936.61 sq m (10,082 sq ft) with substantial car parking provision for 29 cars. Freehold The property is fully let to three tenants Pets At Home, Carphone Warehouse and KFC with a weighted average unexpired term of 6.25 years to lease expiries and 5.57 years to break clauses Total current passing rent of 152,248 per annum exclusive of VAT 69% of income secured against Pets At Home for a further 6 years. Asset management opportunities including re-gear potential with the existing occupiers Proposal We are instructed to seek offers in excess of 1,700,000 (One Million Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.47% assuming purchaser costs of 5.80%, and a low capital value per sq ft of 168.61. 02
BELPER A38 A609 M1 26 A1 Location A38 A61 A608 A6096 DERBY A6095 A514 25 NOTTINGHAM A60 A606 GRANTHAM Melton Mowbray is one of the principal towns in Leicestershire, with a population of 27,158 (2011 Census). The town is an important commercial and retailing centre for north-east Leicestershire and benefits from a catchment population of over 50,000 within a 4 mile radius. Melton Mowbray is located 22km (14 miles) northeast of Leicester, 32km (20 miles) south-east of Nottingham and 88km (55 miles) north-east of Birmingham. A514 4 A42 11 A444 A5 24 EAST MIDLANDS AIRPORT A6 A453 A6006 A42 A512 23 A511 M1 A50 A447 M1 A47 21 A6 A46 LEICESTER A6 A47 MELTON MOWBRAY A607 A606 A606 A607 A47 A1 The town is promoted as the UK Rural Capital of Food and is best known for its culinary specialities, being the home of the eponymous pork pie and one of the five homes of Stilton cheese. The town benefits from good road communications being located within 19km (12 miles) of the A1 and 29km (18 miles) from Junction 21a of the M1 Motorway. A number of A-roads including the A606 and A607 dissect the town and provide connection to the A46, Leicester City centre and neighbouring towns. Melton Mowbray is well served by public transport with Melton Railway Station being located on the Birmingham New Street to Stanstead Airport line, providing services to Birmingham New Street (1 Hour 19 minutes), Leicester (15 minutes), Peterborough (41 minutes) and Cambridge (1 hour 33 minutes) every hour whilst direct services to Nottingham operate hourly in less than 20 minutes. London St Pancras can be reached in 1 hour and 30 minutes via Leicester with regular services operating daily. Nottingham East Midlands Airport is located 37km (23 miles) east of the town, whilst Birmingham Airport lies 85km (53 miles) south-east providing flights to over 120 destinations worldwide, including direct flights to China and the west coast of America. Situation is located in the very heart of Melton Mowbray town centre, fronting the A607 Norman Way, the main arterial route through the town and just north of the established pedestrianised shopping centre and adjacent to the towns covered market place. The property is situated on the busy junction of the A607 Norman Way, and Nottingham Street, directly opposite the gateway to the town s main retail pedestrianised High Street. Melton Mowbray Market lies immediately to the north of the property whilst a new Lidl supermarket (currently being developed) also lies adjacent to the property. Both are accessed from. National multiple retailers located along the A607 Norman Way, in close proximity to the property include Premier Inn, Magnet, Halfords, Kwit Fit and Suzuki. Other major retailers within the town centre include Iceland, Argos, Boots and Topshop. East of the property along Norman Way is Norman Way Park. Due for development shortly, the park will provide 4 small retail warehouse units. The development of this park further demonstrates the strength of the Norman Way as a retail destination in Melton Mowbray. 03
Description provides three retail outlets on a single site that extends to 0.20 Hectares (0.51 Acres). The property is of part modern, part period construction with Carphone Warehouse and Pets At Home being modern retail warehouse units whilst KFC occupies a converted period property dating from the Victorian era under a pitched roof. Each unit features a ground floor sales area fronting on to retail shopper car parking. Ancillary storage and office accommodation is also provided at ground floor level in Carphone Warehouse and Pets At Home with storage and office accommodation arranged at first floor level in KFC, accessed via an internal staircase to the rear of the unit. The park benefits from substantial car parking provision with space 29 cars including 1 disabled space. Accommodation The accommodation has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Areas:- KFC Carphone Warehouse Pets At Home Description Sq M Sq Ft Sq M Sq Ft Sq M Sq Ft Ground Floor 117.60 1,266 145.10 1,562 578.03 6,222 First Floor 95.88 1,032 - - - - Total 213.48 2,298 145.10 1,562 578.03 6,222 04
Tenure Freehold Tenancy The property produces a total rental income of 152,248 per annum and is let to three tenants as per the following tenancy schedule. Unit Tenant Lease Start Lease Expiry Break Rent p.a. Rent Per Sq Ft Unit 1 Unit 2 Demipower Limited t/a KFC The Carphone Warehouse Limited 30/10/2007 29/10/2027 30/10/2022 20,000 8.70 11/08/2006 10/08/2016-27,248 17.44 Unit 3 Pets At Home Ltd 07/07/2006 06/07/2021-105,000 16.88 TOTAL 152,248 The property benefits from a weighted average unexpired term of 6.25 years to expiry and 5.57 years to break clauses. 05
Covenant Pets At Home Ltd (Company Number 01822577) Pets At Home are the UK s largest pet supplies retailer, with more than 370 stores and 6,000 employees. The company sells products including food, toys, bedding, medication and accessories as well as small pets. The first store was opened in Chester in 1991 and in 1999 Pets At Home acquired Petsmart UK bringing a chain of 140 stores under Pets At Home branding. The business continues to expand opening 47 new outlets in 2014. Pets At Home Ltd has an ICC Score of 88 out of 100 which represents a Low Risk of business failure. Summarised below are three years of financial accounts. 31 Mar 2014 (000 s) 31 Mar 2013 (000 s) 31 Mar 2012 (000 s) Sales Turnover 633,429 586,350 536,410 Pre Tax Profit (Loss) 83,858 77,707 72,864 Net Worth 462,445 382,537 303,386 Net Current Assets 535,269 438,576 352,449 Demipower Limited (Company Number 02341655) Established in 1989 and based in Ruislip, Demipower Limited are a restaurant and hospitality group that operate fast food based franchises across the UK. The group operate KFC, Subway and Domino s franchises across 31 stores throughout the UK with 5 stores in the Midlands area. Demipower Limited has an ICC Score of 70 out of 100 which represents a Low Risk of business failure. Summarised below are three years of financial accounts. 31 Oct 2013 (000 s) 31 Oct 2012 (000 s) 31 Oct 2011 (000 s) Sale Turnover 28,509 27,796 27,160 Pre Tax Profit(Loss) 142 244 380 Net Worth 567 540 441 Net Current Assets 9,434 9,846 10,851 The Carphone Warehouse Limited (Company Number 02142673) The Carphone Warehouse was established in 1989 and is a UK mobile phone retailer with over 2,400 stores across Europe, trading as Phone House outside of the UK and Ireland. It is a trading entity of Carphone Warehouse PLC that in August 2014 merged with Dixons Retail to form Dixons Carphone PLC and is listed on the FTSE 250 Index. Carphone Warehouse Limited has an ICC Score of 70 out of 100 which represents a Low Risk of business failure. Summarised below are three years of financial accounts. 31 Mar 2014 (000 s) 31 Mar 2013 (000 s) 31 Mar 2012 (000 s) Sales Turnover 1,783,596 1,672,115 1,513,072 Pre Tax Profit (Loss) 90,986 98,895 (108,239) Net Worth 955,777 864,975 781,204 Net Current Assets 972,642 885,470 850,041 06
Viewing And Further Information For further information please contact:- JLL Birmingham 45 Church Street Birmingham B3 2RT Energy Performance Certificate Unit 1 is a listed building and does not require an EPC. Unit 3 has an EPC rating of G (216) Unit 5 has an EPC rating of D (78) VAT The property has been elected for VAT. It is envisaged the sale will be treated as a TOGC (Transfer of Going Concern). Proposal We are instructed to seek offers in excess of 1,700,000 (One Million Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive Net Initial Yield of 8.47% assuming purchaser costs of 5.80%, and a low capital value per sq ft of 168.61. James Hemstock Richard Goodall Ben Kelly T: +44 (0)121 214 9893 T: +44 (0)121 214 9940 T: +44 (0)121 634 6527 E: james.hemstock@eu.jll.com E: richard.goodall@eu.jll.com E: ben.kelly@eu.jll.com Crown Copyright 2015. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. 2015 Jones Lang LaSalle IP, Inc.