THE SATURN PORTFOLIO - Wilkinson Williams
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CHRISTCHURCH Retail Park, Christchurch // B&Q Warehouse, St Margaret’s Way, Leicester // Dunstable Road Retail Park, Luton //
Cairngorm Retail Park, Winterhill, Milton Keynes // Mountbatten Retail Park, Southampton // B&Q/Halfords, Tonbridge
THE SATURN PORTFOLIO
A portfolio of institutional retail warehousing
located in the southern half of the UK
PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 2
CHRISTCHURCH LEICESTER LUTON
M90
MILTON KEYNES SOUTHAMPTON TONBRIDGE
M8 EDINBURGH
GLASGOW
M77
M74
NEWCASTLE UPON TYNE
CARLISLE SOUTH SHEILDS
M6 A1 (M)
HARTLEPOOL
DURHAM
A66 (M)
MIDDLESBROUGH
A1 (M)
YORK
M6
BRADFORD LEEDS HULL
BLACKPOOL
M65
M62
M62
GRIMSBY
LIVERPOOL MANCHESTER
M56
SHEFFIELD
M1
STOKE-ON-TRENT
NOTTINGHAM
M6 DERBY
LEICESTER
CHRISTCHURCH RETAIL PARK, BARRACK ROAD, CHRISTCHURCH BH23 2BN
BIRMINGHAM
M6
COVENTRY
B&Q WAREHOUSE, ST MARGARET’S WAY, LEICESTER LE4 0BG
MILTON
KEYNES
M1
DUNSTABLE ROAD RETAIL PARK, LUTON LU4 8EZ
M50 M11
LUTON
CAIRNGORM RETAIL PARK, WINTERHILL, MILTON KEYNES MK6 1AZ
A1 (M)
M5
M40
M4
CARDIFF BRISTOL
M4 SWINDON
LONDON MOUNTBATTEN RETAIL PARK, WESTERN ESPLANADE, SOUTHAMPTON SO15 1BA
M2
B&Q/HALFORDS, CANNON LANE, TONBRIDGE, KENT TN9 1BQ
M25
M3
GUILDFORD M20
TONBRIDGE M23
SOUTHAMPTON
M5 CHRISTCHURCH BRIGHTON
EXETER BOURNEMOUTH
CHRISTCHURCH LEICESTER LUTON MILTON KEYNES SOUTHAMPTON TONBRIDGE
INVESTMENT HIGHLIGHTS THE SATURN portfolio PAGE 4
INVESTMENT HIGHLIGHTS
THE SATURN PORTFOLIO PROVIDES A UNIQUE OPPORTUNITY TO ACQUIRE
A SIZEABLE PORTFOLIO OF INSTITUTIONAL QUALITY RETAIL WAREHOUSING
LOCATED IN THE SOUTHERN HALF OF THE UK. THE MAJORITY OF
THE SCHEMES COMPRISE MODERN PURPOSE BUILT RETAIL PARK
ACCOMMODATION PROVIDING A SUCCESSFUL TRADING ENVIRONMENT.
PRIME LOCATIONS WIDE RETAILER BASE STRONG CASHFLOW POTENTIAL FOR
CAPITAL AND RENTAL
GROWTH
All the subject properties are The portfolio is let to a The portfolio is well let with a 48% of the current total income
situated within approximately diversified blend of national out current occupancy rate of 98% provides for fixed or RPI related
100 miles of Central London, of town retailers with only one and an average unexpired term income within the next 5 years,
with the majority being in void across the portfolio. 68% of of 9.4 years, assuming break while other asset management
the South of England. All the portfolio income is made up clauses and 10.5 years ignoring opportunities exist across the
the schemes are situated in from the following tenants: break clauses. 87% of the leases portfolio to increase capital and
substantial and/or wealthy B&Q 25% have over 8 years to run. grow rents.
conurbations benefiting DSG Retail 15%
from significant catchment Assuming the sole vacant unit
Carpetright 8% Income by Covenant Strength Unexpired Term (years)
populations. is let, and with the benefit of the
Homebase 8%
fixed and RPI linked (assuming
DFS 6% 15
income will rise from £7,532,182
3a1 to £8,291,946 by the end of 2017.
The remaining 32% of the 4a1
11–15
portfolio income is made up of
14 tenants with no one tenant 5a1
8–11
generating more than 5% of the
total income.
PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 5
PORTFOLIO
OVERVIEW
GIA Unexpired term* Current rent Current rent % of total
Comments
(Sq ft) (Years) (per annum) (per sq ft) portfolio income
Christchurch 101,107 8.5 £1,943,377 £19.22 26% Wickes fixed uplift in March 2014 and Carpetright fixed uplift in September 2016.
CHRISTCHURCH Retail Park
Leicester 77,300 15.0 £1,325,490 £17.15 18%
5 yearly compounded rent review linked to RPI capped and collared at 0% and
B&Q Warehouse 3% per annum respectively.
Luton 46,850 9.8 £1,015,000 £21.66 13% DSG fixed uplift in September 2017. Vacant unit to let.
Dunstable Road Retail Park
Milton Keynes 57,432 10.0 £1,407,213 £24.50 19%
Carpetright fixed uplift in December 2014 and DFS fixed uplifts in June 2016
Cairngorm Retail Park & 2021.
Southampton 52,159 9.4 £987,102 £18.92 13% Wren fixed uplift in April 2013 and DSG fixed uplift in October 2016.
Mountbatten Retail Park
Tonbridge 57,397 10.7 £854,000 £14.88 11% –
B&Q / Halfords
392,245 sq ft 10.5 years £7,532,182 £19.20 100% Institutional quality portfolio of retail warehousing in Southern England
*Excluding break options
TOTAL NUMBER OF ASSETS TOTAL CURRENT INCOME TOTAL GIA AVERAGE UNEXPIRED LEASE TERM
6 £7,532,182 392,245 10.5 years
per annum sq ft (ignoring break options)
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 6 CHRISTCHURCH RETAIL PARK BARRACK ROAD CHRISTCHURCH BH23 2BN
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 7
INVESTMENT SUMMARY
Situated in the affluent south coast town of Christchurch, benefiting from a
catchment population of over 300,000 people within a 20 minute drive time.
Located in a highly prominent and accessible position just west of Christchurch
railway station, Christchurch Retail Park fronts Barrack Road (A35), the main
road linking Christchurch to Southampton and Bournemouth.
Purpose built modern retail warehouse park extending to approximately
101,107 sq ft (9,393 sq m).
Restricted A1 (non-food) planning consent.
Freehold.
The property is let to Homebase, Pets at Home, Comet, Harveys, Carpetright,
Halfords, Maplin Electronics, Wickes Kitchens & Bathrooms and Pizza Hut.
Average weighted unexpired term of 8.5 years.
The current rent is £1,943,377 per annum (overall rent of £19.22 per sq ft)
with fixed uplifts in 2014 and 2016.
BRISTOL CHIPPENHAM A346 READING
M4
CLEVEDON
CHRISTCHURCH Retail A4
Park Christchurch THE SATURN PORTFOLIO PAGE 8
NEWBURY
BATH
M5 A38
WESTON-SUPER-MARE A339
A33
A338
BASINGSTOKE
A37
ANDOVER
A361
A338
A303 A31
A36
M3
E
A39
OV
BRIDGEWATER
FA
GR
A3060
IR
SALISBURY
R IV E R WAY
E
M
TH
WINCHESTER
IL
A303
RO
E
TAUNTON
SHAFTTESBURY A36
EASTLEIGH
AD
A350 A3
A358
A354 A338 CA
YEOVIL ST
M27 LE
THE G
A303 LA
SOUTHAMPTON NE
ROVE
A31
WATERLOOVILLE E AS CHRISTCHURCH RETAIL PARK
A338 A27 T
A3060 A35
PORTSMOUTH BA B3073
HURST AVENUE
A37
RR
A348 CHRISTCHURCH AC
A35 K
A35
RO
LYME REGIS BOURNEMOUTH AD
DORCHESTER
NEWPORT SS
A35 CHRISTCHURCH PA
AD
BY
H
RO
A354 RC
HOLDEN
HU
N
AD
C
ST
GA
RI
CH
RO
WEYMOUTH
CLIN
BA
RR A
C K ROA D A35
H
R C B3059
ILF
HU
O
HI
TC
RD
GH
T
S TR E E
AD
RI
LA
NE
S
Location Situation Retail Warehouse
CH CR
RO
AN
AD
POKESDOWN L
UR
EI
RO
GH
SOUT
STO
RO
RT
AD
FO
HB O U
AU
Provision in
BE
RN
Christchurch lies on the south coast Christchurch Retail Park is situated onA35
the RO TUCK TON ROA D
E
UE
AD
ERY AVEN
of England in the county of Dorset, convergence of Barrack Road (A35) and the CARB
approximately 5 miles east of Bournemouth, B3073, to the west of Christchurch Railway Pa
r k w o od r
o
Christchurch
25 miles south west of Southampton Station. The A35 is the main road linking a B3059 BR
d OA
DW
B3059
and 105 miles south west of London. Christchurch to Southampton to the east AY
AD
Christchurch has excellent road and Bournemouth to the west. The B3073
RO
BELLE
N
V UE R O A
W
D
SOUTHBOURNE OVER C HU
communications linking directly to the connects the town north to Bournemouth
O
CLIFF DRIVE RCH
D
ROAD
IL
There is a limited amount of competing
W
Bournemouth/Poole conurbations via the Airport and to the A338, which travels north DA
LM
EN accommodation in the town, which extends
A35, which also connects north east to to Salisbury. Y
O AD to the following:
R
Southampton and the M3 via the M27.
The property is located in a mixed use
Meteor Retail Park
Christchurch is served by a mainline railway area with light industrial, small retail units
70,658 sq ft (6,564 sq m)
station with rail services between London and residential dwellings all located within
Tenants include PC World and Bathstore
Waterloo, Southampton and Bournemouth the vicinity of the retail park. The scheme
with top rents at £14.50 per sq ft. The park
stopping at Christchurch, with the fastest adjoins a Landrover car dealership.
has a bulky goods consent.
journey time to London (Waterloo) of
approximately 1 hour 50 minutes. Stony Lane Retail Park
c.55,000 sq ft (5,110 sq m)
Bournemouth International Airport is
Tenants include Magnet, Tiles R Us and
located only 5 miles to the north of
B&Q. Rents range from £7.00 per sq ft to
Christchurch providing air travel to and from
£10.00 per sq ft. The park has a bulky goods
the UK and major European cities.
consent with certain exceptions.
The town lies at the confluence of the Rivers
Currys/Carpetright
Stour and Avon, creating a natural harbour
25,052 sq ft (2,327 sq m)
and providing the town a thriving focal point
Located east of the town centre on Stony
for local business that attracts thousands of
Lane. Top rents here are £16.50 per sq ft.
tourists every year.
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 9
Catchment & Demographics Description
Christchurch has a 10 minute drive time Key demographics indicators for Christchurch include: The subject property provides a purpose built “L” shaped terrace
catchment population of 84,917 people and of 8 units, let to Homebase, Pets at Home, Comet, Harveys, Maplin
a 20 minute drivetime of 307,678 people Christchurch UK Average Electronics, Carpetright, Halfords and Wickes Kitchens & Bathrooms.
and is an affluent town highlighted by the % Catchment in AB Social Group 32% 26% Homebase, Comet, Halfords and Harveys benefit from substantial
high proportion of the catchment with mezzanine floors used for retail sales. There is also a standalone
an AB social grouping, 32%, and the low % Catchment in D or E Social Group 17% 25% A3 unit, which is occupied by Pizza Hut.
representation of those classed as D or E
The units are of steel portal frame construction with brick elevations,
social grade, 17%. % Catchment Owner Occupy 76% 70%
glazed frontages and a pitched roof. Access and egress to the park
Christchurch benefits from its own harbour, is via Bailey Drive, which itself is accessed off Barrack Road to the
and its economy has, therefore, historically north. There is separate servicing to the rear of the terraces, which is
been associated with harbour and maritime accessed off the southern end of Bailey Drive.
based trade. In the modern era, the harbour
WIMBOURNE ST. GILES The property provides approximately 520 dedicated car parking
has helped the town diversify its economy A338
spaces, reflecting an attractive car parking ratio of 1 : 194 sq ft
to become a thriving tourist destination. A31
VERWOOD LINWOOD LYNDHURST (1 : 18.02 sq m).
Within the wider vicinity, Bournemouth
WITCHAMPTON A35
The total site area extends to approximately 7.98 acres
Airport, and its associated businesses,
RINGWOOD (3.23 hectares).
provides significant employment in and
WEST MOORS A31 BURLEY
around the Bournemouth area, specifically
A338 BROCKENHURST
Christchurch. This sector is earmarked to
WIMBORNE
expand over the next few years. MINSTER A348
A31 FERNDOWN
CORFE A341 NEW MILTON
MULLEN A35
A3060
UPTON CHRISTCHURCH A337
BOURNEMOUTH MILFORD ON SEA
A35
POOLE
20 MINUTE DRIVETIME CATCHMENT
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 10
Tenancy Schedule
Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments
(sq ft) (years) Date term review rent rent
(years) (Per Annum) (sq ft)
1 Homebase Ltd 34,840 29/09/1996 25 28/09/2021 8.95 29/09/2016 £590,000 £16.93
Pets City Ltd
2 10,098 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,960 £20.00 Being assigned to Pets at Home Ltd.
t/a Pets at Home
3 Comet Group Ltd 10,095 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,900 £20.00
4 Harveys Furnishing Ltd 10,000 29/09/1996 25 28/09/2021 8.95 29/09/2016 £200,000 £20.00
5 Maplin Electronics Ltd 5,070 18/09/2007 15 17/09/2022 9.92 18/09/2012 £126,750 £25.00 Outstanding rent review.
6 Carpetright plc 10,102 29/09/1996 25 28/09/2021 8.95 29/09/2016 £242,897 £24.04 Fixed uplift on 20/09/2016 to £268,178 per annum.
7 Halfords Ltd 7,579 29/09/1996 25 28/09/2021 8.95 29/09/2016 £155,370 £20.50
8 Pizza Hut (UK) Ltd 3,194 23/05/1998 23 28/09/2021 8.95 23/05/2013 £72,000 £22.54
9 Wickes Building Supplies Ltd 10,129 01/03/2010 5 28/02/2015 2.37 01/03/2014 £145,000 £14.32 Fixed uplift on 01/03/2014 to £180,000 per annum.
Sub station SSE Services plc 0 09/01/1998 60 08/01/2058 45.23 – £0 –
Southern Electric Power
Wayleave 0 24/12/2001 999 01/01/3001 988.19 – £0 – There is no term on the Wayleave. It is terminable on 6 months’ notice by either party.
Distribution Ltd
ATM Bank Machine Ltd 0 13/04/2007 6 12/04/2013 0.49 – £7,500 –
Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – Initial 5 year term. Agreement rolls over thereafter. Rent payable to equal 20% of advertising revenue.
TOTALS 101,107 8.5 £1,943,377 £19.22
Planning Tenancies
The property benefits from a restricted A1 (non-food) planning The property is let in its entirety in
consent, with specific restrictions. These restrictions include the accordance with the above tenancy
sale of food for human consumption (except confectionery), schedule and produces a current rental
alcohol, tobacco, clothing, footwear and sports goods, chemist income of £1,943,377 per annum, equating
goods, jewellery, books and newspapers and magazines (except to an overall rent of £19.22 per sq ft.
where ancillary to the types of goods sold from that unit), toys,
The property benefits from an average
crockery and glassware (except where this is ancillary to the types
unexpired lease term of 8.5 years.
of goods sold).
The leases to Wickes and Carpetright
A planning summary can be provided upon request.
benefit from fixed rental uplifts in 2014 and
2016 respectively.
Ground
Conditions
An updated Environmental Report is available upon request.CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 11
Tenants’ Covenants
The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below:
UNIT Tenant Year Sales Turnover Profit/Loss Pre Net Worth D&B
Ending (000s) Taxes (000s) (000s) Rating
26/02/2011 £1,457,093 £62,094 £396,948
1 Homebase Ltd 5A1
27/02/2010 £1,477,990 £41,322 £364,856
31/03/2011 £511,576 £75,174 £229,976
2 Pets at Home Ltd 5A1
25/03/2010 £462,646 £65,853 £162,401
30/04/2011 £1,478,201 -£39,555 £43,384
3 Comet Group Ltd 5A1
30/04/2010 £1,586,368 -£2,951 £58,837
4 Harveys Furnishing Ltd 5A2
31/12/2011 £205,025 £24,784 £143,711
5 Maplin Electronics Ltd 5A1
01/01/2011 £213,123 £35,709 £126,437
30/04/2011 £486,800 £6,600 £1,200
6 Carpetright plc 1A2
01/05/2010 £516,600 £22,300 £4,000
01/04/2011 £771,400 £122,000 £350,900
7 Halfords Ltd 5A1
02/04/2010 £817,600 £109,200 £261,500
28/11/2010 £346,174 -£22,185 £11,642
8 Pizza Hut (UK) Ltd 3A1
29/11/2009 £362,549 -£12,122 £31,470
31/12/2011 £981,450 £40,375 £230,250
9 Wickes Building Supplies Ltd 5A1
01/01/2011 £969,052 £48,573 £208,590
Tenants’ Profile Trading Profile /
The scheme is fully let to substantial retailers with
significant exposure to the UK out of town market.
A brief summary of these is set out below:
Harveys
Harveys is one of the largest furniture specialists in
the UK with over 150 stores and are wholly owned
Maplin Electronics
Maplin is one of the leading retailers of electronic
goods in the UK with nearly 200 stores across
Asset Management
by Steinhoff International, who are now one of the the country and over 2,000 employees. In 2004 This is the prime retail park in Christchurch
Homebase
top 5 furniture groups in Europe and Australasia, Montagu Private Equity purchased 67% of the and we understand that the tenants
Homebase is owned by the Home Retail Group
and the largest in Africa providing the backing and company from Graphite Capital. trade well.
and is one of the 3 largest DIY retailers in the UK
infrastructure of a huge global furniture leader.
with more than 300 stores. Homebase serves over Wickes The scheme is well configured and provides
65 million customers per year through its stores and Carpetright Wickes is one of the UK’s leading DIY, home a variety of unit sizes across the park.
online services. Carpetright is the UK’s leading retailer of floor improvements and building supplies retailers,
The scheme benefits from a generous car
coverings currently trading from approximately trading from around 200 stores nationwide.
Pets at Home parking ratio and subject to the appropriate
703 stores. The company has a London Stock Wickes Building Supplies Ltd is a wholly owned
Pets at Home was acquired by private equity house, planning consents, could accommodate a
Exchange listing with a current market capitalisation subsidiary of Travis Perkins plc, a significant
KKR in 2010 in a deal worth £955 million and has further pod unit, which would bring further
of approximately £460 million. FTSE 250 company.
more than 300 pet stores across the UK. footfall to the scheme.
Comet Halfords Pizza Hut The former QinetiQ site to the rear of
Halfords Ltd are the UK’s leading retailer of
Comet is one of the UK’s leading electrical goods Pizza Hut is one of the largest restaurant chains in Christchurch Retail Park is currently being
automotive, bicycles and associated products and
retailers with 240 stores throughout the UK and the UK and is an international franchise that offers considered for a mixed use development,
currently trade from in excess of 467 stores in the
has benefitted from the recent demise of Best different styles of pizza and side dishes. Pizza Hut is which has recently received foodstore
UK and Ireland.
Buys UK operations. As of February 2012, Comet a subsidiary of Yum! Brands Inc, the world’s biggest consent, subject to a section 106. Such a
is now owned by private investment partnership restaurant company. scheme would benefit the subject property
OpCapita LLP. significantly, making the area a destination
location extending beyond the current
catchment. More information regarding this
proposed scheme is available upon request.Barrack Retail Park Christchurch THE SATURN PORTFOLIO PAGE 12
EPCs
Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate
Non-Domestic Building Non-Domestic Building Non-Domestic Building Non-Domestic Building
338 338 338 338
This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.
Homebase Ltd Certificate Reference Number: Pets at Home Certificate Reference Number: Comet Plc Certificate Reference Number: Rosebys Certificate Reference Number:
1 Bailey Drive 0050-5064-0361-9660-0050 2 Bailey Drive 0050-4041-0341-6340-5090 3 Bailey Drive 0050-3045-0301-4640-2024 4 Bailey Drive 0361-3075-0717-0200-6901
CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH
BH23 2BN BH23 2BN BH23 2BN BH23 2BN
This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of
the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is
compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings
and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this
information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd.
Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating
0 2
312 7 2
312 7 1
312 7 2
312
1 6 6 6
0
8
6
8
0
6
3
6
0
5
4
5
SK-250421-359663 SK-632010-698643 SK-006232-667620 SK-200111-659210
More energy efficient More energy efficient More energy efficient More energy efficient
A+ A+ A+ A+
364 364 364 364
1 1 1 1
Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions
A 0-25 A 0-25 A 0-25 A 0-25
6 0 - 0 0 5 0 - 5 0 6 4 - 0 3 6 1 - 9 6 6 0 - 0 0 5 0 - S K 2 5 0 4 2 1 3 5 9 6 6 3 - D C L G x E P C g e n 2 0 0 8 7 1 - 0 0 5 0 - 4 0 4 1 - 0 3 4 1 - 6 3 4 0 - 5 0 9 0 - S K 6 3 2 0 1 0 6 9 8 6 4 3 - D C L G x E P C g e n 2 0 0 8 7 9 - 0 0 5 0 - 3 0 4 5 - 0 3 0 1 - 4 6 4 0 - 2 0 2 4 - S K 0 0 6 2 3 2 6 6 7 6 2 0 - D C L G x E P C g e n 2 0 0 8 6 9 - 0 3 6 1 - 3 0 7 5 - 0 7 1 7 - 0 2 0 0 - 6 9 0 1 - S K 2 0 0 1 1 1 6 5 9 2 1 0 - D C L G x E P C g e n 2 0 0 8
26
B 26-50 26
B 26-50 26
B 26-50 26
B 26-50
C 51-75 60 This is how energy efficient
the building is. C 51-75 71 This is how energy efficient
the building is. C 51-75 C 51-75 69 This is how energy efficient
the building is.
D 76-100 D 76-100 D 76-100 79 D 76-100
286 286 286 286
This is how energy efficient
the building is.
52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125
F 126-150 F 126-150 F 126-150 F 126-150
78
G Over 150 78
G Over 150 78
G Over 150 78
G Over 150
Less energy efficient Less energy efficient Less energy efficient Less energy efficient
Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks
260 260 260 260
104 104 104 104
Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Grid Supplied Electricity Buildings similar to this one Main heating fuel: Grid Supplied Electricity Buildings similar to this one
could have ratings as follows: could have ratings as follows: could have ratings as follows: could have ratings as follows:
130 130 130 130
Building environment: Heating and Natural Ventilation Building environment: Heating and Natural Ventilation Building environment: Air Conditioning Building environment: Air Conditioning
44 37 60 58
156
Total useful floor area (m2 ):
156
Total useful floor area (m2 ):
156
Total useful floor area (m2 ):
156
4558 If newly built 1015 If newly built 907 If newly built Total useful floor area (m2 ): 1112 If newly built
Building complexity Building complexity Building complexity Building complexity
(NOS level): 3 64 If typical of the
existing stock
(NOS level): 3 50 If typical of the
existing stock
(NOS level): 3 100 If typical of the
existing stock
(NOS level): 3 92 If typical of the
existing stock
182 208 234 182 208 234 182 208 234 182 208 234
Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate
Non-Domestic Building Non-Domestic Building Non-Domestic Building Non-Domestic Building
338 338 338 338
This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.
Carpetright Plc Certificate Reference Number: Halfords Ltd Certificate Reference Number: Pizza Hut (UK) Ltd Certificate Reference Number: Unit 5 Certificate Reference Number:
6 Bailey Drive 0050-5051-0371-1600-9034 7 Bailey Drive 0966-3065-0911-0700-6205 26 Bailey Drive 0050-5084-0381-2630-6050 Bailey Drive 0050-9065-0331-8670-5050
CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH
BH23 2BN BH23 2BN BH23 2BN BH23 2BN
This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of
the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is
compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings
and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this
information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd.
Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating
0 7
312 0 2
312 7 4
312 0 2
312
2 1 3 1
2
0
6
0
1
0
5
0
5
0
4
0
SK-211462-348143 SK-663652-320343 SK-161002-149343 SK-234401-358300
More energy efficient More energy efficient More energy efficient More energy efficient
A+ A+ A+ A+
364 364 364 364
1 1 1 1
Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions
A 0-25 A 0-25 A 0-25 A 0-25
6 7 - 0 0 5 0 - 5 0 5 1 - 0 3 7 1 - 1 6 0 0 - 9 0 3 4 - S K 2 1 1 4 6 2 3 4 8 1 4 3 - D C L G x E P C g e n 2 0 0 8 6 9 - 0 9 6 6 - 3 0 6 5 - 0 9 1 1 - 0 7 0 0 - 6 2 0 5 - S K 6 6 3 6 5 2 3 2 0 3 4 3 - D C L G x E P C g e n 2 0 0 8 1 5 0 - 0 0 5 0 - 5 0 8 4 - 0 3 8 1 - 2 6 3 0 - 6 0 5 0 - S K 1 6 1 0 0 2 1 4 9 3 4 3 - D C L G x E P C g e n 2 0 0 6 0 - 0 0 5 0 - 9 0 6 5 - 0 3 3 1 - 8 6 7 0 - 5 0 5 0 - S K 2 3 4 4 0 1 3 5 8 3 0 0 - D C L G x E P C g e n 2 0 0 8
26
B 26-50 26
B 26-50 26
B 26-50 26
B 26-50
C 51-75 67 This is how energy efficient
the building is. C 51-75 69 This is how energy efficient
the building is. C 51-75 C 51-75 60 This is how energy efficient
the building is.
D 76-100 D 76-100 D 76-100 D 76-100
286 286 286 286
E 101-125 E 101-125 E 101-125 E 101-125
150
52 52 52 52
F 126-150 F 126-150 F 126-150 This is how energy efficient
the building is. F 126-150
78
G Over 150 78
G Over 150 78
G Over 150 78
G Over 150
Less energy efficient Less energy efficient Less energy efficient Less energy efficient
Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks
260 260 260 260
104 104 104 104
Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one
could have ratings as follows: could have ratings as follows: could have ratings as follows: could have ratings as follows:
130 130 130 130
Building environment: Heating and Natural Ventilation Building environment: Heating and Natural Ventilation Building environment: Air Conditioning Building environment: Heating and Natural Ventilation
37 35 55 30
156
Total useful floor area (m2 ):
156
Total useful floor area (m2 ):
156
Total useful floor area (m2 ):
156
951 If newly built 812 If newly built 457 If newly built Total useful floor area (m2 ): 518 If newly built
Building complexity Building complexity Building complexity Building complexity
(NOS level): 3 50 If typical of the
existing stock
(NOS level): 3 53 If typical of the
existing stock
(NOS level): 4 104 If typical of the
existing stock
(NOS level): 3 43 If typical of the
existing stock
182 208 234 182 208 234 182 208 234 182 208 234CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 13
EPCs
Energy Performance Certificate
Non-Domestic Building
338
This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.
M F I Furniture Centre Ltd Certificate Reference Number:
5 Bailey Drive 0670-0031-0740-0204-0006
CHRISTCHURCH
BH23 2BN
This certificate shows the energy rating of this building. It indicates the energy efficiency of
the building fabric and the heating, ventilation, cooling and lighting systems. The rating is
compared to two benchmarks for this type of building: one appropriate for new buildings
and one appropriate for existing buildings. There is more advice on how to interpret this
information on the Government’s website www.communities.gov.uk/epbd.
Energy Performance Asset Rating 7 1
312
6
6
3
4
SK-311332-699420
More energy efficient
A+
364
1
Net zero CO2 emissions
A 0-25
1 1 6 - 0 6 7 0 - 0 0 3 1 - 0 7 4 0 - 0 2 0 4 - 0 0 0 6 - S K 3 1 1 3 3 2 6 9 9 4 2 0 - D C L G x E P C g e n 2 0 0
26
B 26-50
C 51-75
D 76-100
286
52 E 101-125 116 This is how energy efficient
the building is.
F 126-150
78
G Over 150
Less energy efficient
Technical information Benchmarks
260
104
Main heating fuel: Natural Gas Buildings similar to this one
could have ratings as follows:
130
Building environment: Air Conditioning
57
156
Total useful floor area (m2 ): 975 If newly built
Building complexity
(NOS level): 3 90 If typical of the
existing stock
182 208 234B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 14 B&Q WAREHOUSE ST MARGARET’S WAY LEICESTER LE4 0BG
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 15
INVESTMENT SUMMARY
Situated in the major commercial centre of Leicester, benefiting from a
catchment population of 580,298 within a 20 minute drive time.
Located in a highly prominent and accessible position approximately
one mile to the north of Leicester city centre, fronting the A6
dual carriageway.
Purpose built modern retail warehouse extending to approximately
77,300 sq ft (7,181 sq m) with associated garden centre.
Restricted planning consent.
Freehold.
The property is let to B&Q plc on a lease expiring in October 2027, with
a tenant’s rolling break option from October 2022.
The current rent is £1,325,490 per annum (£17.15 per sq ft), with the
lease providing for 5 yearly rent reviews in line with the increase in RPI,
subject to a ‘cap’ and ‘collar’ of 3% and 0% per annum respectively.B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 16
Retail Warehouse
Provision in Central
Leicester
The subject property provides the dominant Other than Abbey Road Retail Park
DIY store serving central Leicester. The mentioned below the nearest retail
nearest competing stores are occupied by warehousing is St Georges Retail Park
Wickes (circa 25,000 sq ft) on St George’s (135,000 sq ft) situated 1 mile to the south
Retail Park situated approximately 1 mile to of the subject property. This has an open
A563south, whilst Homebase occupy a store
the non-food consent with occupiers including
RE
A563 DH
ILL WAY AY of circa 35,000 sq ft 1 mile south of the city Wickes, Currys/PC World and Toys ‘R’ Us.
A156
A563 DW
AY RM EA
WA57 WATE centre on Welford Road. Planning consent has been obtained for a
CHESTERFIELD
E LD LINCOLN
EF
M1 CR Tesco of approximately 70,000 sq ft on part
Location
CONGLETON B&Q also have a small store extending to
E
M6 MANSFIELD
of the site occupied by Wickes and
IV
A46
DR
NE
CREWE A6 A617
32,500 sq ft at Wigston on the southern
X
PC World.
LA
IFA
A60 A17
A515 STR
side of the conurbation.
HAL
ASB
EY
WREXHAM
BE
OU
ASHBOURNE RG
AU
D
ABB
STOKE-ON-TRENT R IV E M
The city of Leicester is the second largest
WHITCHURCH
A1121
O
N
T
The other major provision of retail
NOTTINGHAM A1 A15 LE
YS Directly to the south of the subject property
A515 L AN warehousing comprises approximately
Y
DERBY
conurbation in the East Midlands and the E
WA
GRANTHAM
A41 UTTOXETER DONNINGTON
is the Abbey Road Retail Park (32,700 sq ft)
H
A6
RI T
A50 A46
320,000 sq ft of accommodation is at
NF
major commercial centre for Leicestershire. A518
which is occupied by The Range,
GL E
HEACHA
VE
A49 M D RI
Leicester is situated approximately 100 miles
STAFFORD BURTON UPON TRENT Fosse Park and Fosse Park South adjacent
NEWPORT LOUGHBOROUGH Carpetright and Halfords.
A607
A5 M6 TOLL
A563 A6 KING’S LYNN to Junction 21 of the M1 to the south west.
E
(160 km) north of London, 40 miles (64 km) M1
RIV
A41 A460
SHREWSBURY
E
There are no competing DIY stores in
RD
A5 CANNOCK
AN
north east of Birmingham and 30 miles
PARKE
M42
L
M54
TAMWORTH
this location.
EY
(48 km) south of Nottingham. M6 TOLL
LEICESTER
A47
UPPINGHAM A47 A1 A47
WOLVERHAMPTON
ABB
A5
A458 M6 A6 PETERBOROUGH
M69
The city benefits from very good road NUNEATON
Situation
A605
A49 M1 MARKET CORBY
BIRMINGHAM
communications with the M1 motorway A442
A46
M6 A5 HARBOROUGH
A1 (M)
DROAD
IR
A6
being situated immediately to the west SOLIHULL A50
KB
COVENTRY
D
KIDDERMINSTER KETTERING AB
OA
BE
AC
RUGBY
of the conurbation with direct access Y
ER
M42 A46
ANHUNTINGDON PA
BL
STEY RK The subject property is situated in a highly The immediate vicinity comprises a
AV
REDDITCH
ST MA
ROYAL WELLINGBOROUGH L ANE
via Junctions 21 and 21a. Junction 21 and A45
RO
R
M5 LEAMINGTON SPA M1
A49
AD
LG
21a also provide direct access to the M6 A46 NORTHAMPTON prominent and accessible position at the mixture of commercial and residential
R
BE
A423
CAMBRIDGE
G AR E T ’ S
WORCESTER
and the West Midland’s conurbation. The
STRATFORD UPON AVONM40 A5 A6 junction of St Margaret’s Way (A6) and accommodation. In 2007, Leicester City
A449 A46
A417
TOWCESTER BEDFORD
city benefits from a direct rail serviceGREAT
to MALVERN GRO
BY RD
Blackbird Road (A5237) approximately Council adopted the Abbey Meadows
EVESHAM
HEREFORD
London St Pancras, with a journey time of
BANBURY A43
MILTON KEYNES
A1 A50 M11 WA 1 mile north of Leicester city centre. supplementary planning document, which
A44
A607
RTH
Y
approximately 1 hour and 15 minutes. St Margaret’s Way (A6) forms the principal provides for comprehensive redevelopment
M40 A6
NO
A5 A47
A49 M5 A424
dual carriageway E Rroute leading from the
OAD of the Abbey Meadows area situated on
WO
TON
OAD
A44 STEVENAGE B ER
S
CHELTENHAM UM
city centre Hto the north, which makes the the eastern side of the A6 approximately
OD
M1 A1 (M)
GLOUCESTER TE
ER
A40
GA
G
VEY A594 location highly accessible to a substantial 0.25 miles from the subject property. This
TU
SAN
AT
AYLESBURY
FOSS
AY
DO
A47
E
W
catchment population. The A6 links to is a large scale redevelopment to provide
RR
N
H
OA
UG
the A563 (outer ring road) approximately various commercial uses, including a science
D
A6030
VA
A594 0.75 miles to the north of the subject park, together with substantial residential
St Georges
Retail Park property, then onwards onto the intersection development.
with the A46 to the north, which then
DS ROAD A47
S
TG
HAR E
RIC provides direct access to the M1 motorway.
O
A47 KING
R G ES W
LEICESTER
OX
FO
AY
R D
A5460
ST
REE
T
A594 A6
AD
LO
N
RO
D
ON
RO
GH
AD
OU
ORB&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 17
CASTLE DONINGTON
BURTON WYSALL A46 WALTHAM ON
UPON TRENT THE WOLDS
A607 COLSTERWORTH
M1
A511
MELTON
LOUGHBOROUGH MOWBRAY
COALVILLE
COTTESMORE
A607
MARKFIELD A606
TWYFORD
A46
TAMWORTH TWYCROSS M1
M42
LEICESTER
A47
WIGSTON UPPINGHAM
M69
HINCKLEY A6
FLECKNEY
NUNEATON
M69
M6 M1 CORBY
MARKET
HARBOROUGH A6
20COVENTRY
MINUTE DRIVETIME CATCHMENT
M6
KETTERING
Catchment & Demographics Description
PROMIS estimate that Leicester’s primary Key demographic data is included in the table below: The subject property provides a prominent The main customer access/exit point is
catchment population is approximately purpose built retail warehouse extending to via a traffic light controlled junction on
920,000 people, ranking it the 10th largest Leicester PROMIS approximately 77,300 sq ft (7,181 sq m) GIA. St Margaret’s Way and there is a secondary
Catchment Av/GB Av
out of the PROMIS 200 centres. This is access point, which is shared by service
The property was constructed in 1993
above the regional average and compares Household owner occupiers 2001 74% 70% vehicles off Blackbird Road.
and is of steel portal frame construction
closely with the likes of Edinburgh and
under a pitched roof. Elevations are clad The site extends to a total area of
Bristol. Within a 20 minute drive time of Per capita RW expenditure 2001 £427 £476
with flat cladding above masonry. The unit approximately 7.26 acres (2.94 hectares).
the subject property there is an estimated
Estimated population growth 2011-2016 0.8% 0.6% benefits from a dominant entrance feature,
catchment population of 580,298 people.
(% per annum) with similar high profile extended signage
24% of the catchment population are zones situated on the 2 front corners of the
classified as being within AB social group AB social classification 2001 24% 25% building fronting St Margaret’s Way. On the
(more affluent) as compared to the national western side of the building is an enclosed
average of 25%. Car ownership is close to garden centre, to the rear of which is a
the national average, with 32% owning 2 dedicated service yard.
or more cars, as compared to the national
At the front of the building is a
average of 30%.
tarmacadamed customer car park providing
The catchment population is predicted to approximately 415 spaces, equating to a
benefit from above average population ratio of 1 : 186 sq ft (1 : 17.3 sq m).
growth, estimated to be 0.8%, as compared
to the 200 PROMIS centres of 0.61%.
In 2010 the service sector accounted for 73%
of total employment, with manufacturing
standing at 14%, both being close to the
national average. Major employers in the
town include Santander, Next, Walkers
Snack Food and Babcock.B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 18
Tenancy Schedule
Tenant GIA LEase Term Expiry Unexpired Next rent Current Current Comments
(sq ft) start (years) Date term review rent rent
(years) (Per annum) (per sq ft)
Rent is payable monthly. 5 yearly compounded rent reviews
linked to RPI capped and collared at 0% and 3% p.a.
B&Q Plc 77,300 19/10/2007 20 18/10/2027 15.00 29/09/2017 £1,325,490 £17.16
respectively. Tenant rolling break option from 19/10/2022.
12 month’s notice required. No penalty if exercised.
TOTALS 77,300 £1,325,490 £17.16
Planning Tenure
The property has planning consent for a The site, as approximately outlined in red, is
non-food retail warehouse, garden centre held freehold.
and ancillary parking. There is a restriction
that no part of the building should be
used as a foodstore. The sale of goods is
restricted to building and DIY supplies,
furniture, self-assembly furniture, floor
Tenancy
coverings, fabrics and ancillary items, The property is let to B&Q plc on a lease
electrical appliances, goods and materials expiring on 18 October 2027 with a tenant’s
and fittings, motor vehicles, cycles and spare rolling option to determine from 19 October
parts, garden furniture, tools and equipment, 2022 subject to 12 months notice. The lease
caravans, tents and camping equipment provides 5 yearly upward only rent reviews
and associated items, boats, dinghies and in line with the increase in the Retail Price
associated items. A planning summary can Index, subject to a minimum of 0% per
be provided upon request. annum and a maximum of 3% per annum.
The current rent is £1,325,490 per annum,
which equates to £17.15 per sq ft.
Ground
Conditions
An updated Environmental Report is
available upon request.B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 19
Tenant’s Covenant
We summarise below the most recent accounts for B&Q plc, together with the latest
Dun & Bradstreet rating.
UNIT Tenant Year Sales Profit/Loss Net Worth D&B
Ending Turnover Pre Taxes (000s) Rating
(000s) (000s)
29/01/2011 £3,711,700 £144,700 £3,656,700
1 B&Q plc 5A1
30/01/2010 £3,792,400 £400,400 £3,476,400
D&B rating – 5A1 (minimum risk of business failure).
Trading Profile /
Tenant Profile Asset Management
B&Q plc is a wholly owned subsidiary of This is the dominant DIY store serving the
Kingfisher Group plc and is the UK’s market central Leicester conurbation and due to its
leading DIY retailer. In recent years, they have accessible location and limited competition,
expanded to international markets and now understand that it trades well. In addition,
currently trade in excess of 950 stores in we believe the size of the store, being circa
8 countries throughout Europe and Asia. 70,000 sq ft, is likely to provide a highly
efficient trading format for B&Q.
However, we believe the property could
potentially, subject to obtaining the
necessary consents, be subdivided to create
a small retail park, with the additional
benefit of the potential to develop additional
accommodation on the garden centre and
‘pod’ units in the car park, should B&Q wish
to relocate. Alternatively, we consider it
would make an ideal foodstore site, subject
to tenant demand and the necessary
planning consents.
Due to the nature of the rent review clause
and expectation for the increase in the
Retail Price Index, this investment provides
a secure income stream with the benefit
of inflation linked uplifts secured against a
successful trading destination.B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 20
EPC
Energy Performance Certificate
Non-Domestic Building
338
This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.
Commercial Union Life Assurance Ltd Certificate Reference Number:
B & Q Plc 0744-3045-0119-0800-9091
St Margarets Way
LEICESTER
LE4 0BT
This certificate shows the energy rating of this building. It indicates the energy efficiency of
the building fabric and the heating, ventilation, cooling and lighting systems. The rating is
compared to two benchmarks for this type of building: one appropriate for new buildings
and one appropriate for existing buildings. There is more advice on how to interpret this
information on the Government's website www.communities.gov.uk/epbd.
Energy Performance Asset Rating 7 6
312
1
4
4
6
SK-521520-010243
More energy efficient
A+
364
1
Net zero CO2 emissions
A 0-25
4 6 - 0 7 4 4 - 3 0 4 5 - 0 1 1 9 - 0 8 0 0 - 9 0 9 1 - S K 5 2 1 5 2 0 0 1 0 2 4 3 - D C L G x E P C g e n 2 0 0 8
26
B 26-50 46 This is how energy efficient
the building is.
C 51-75
D 76-100
286
52 E 101-125
F 126-150
78
G Over 150
Less energy efficient
Technical information Benchmarks
260
104
Main heating fuel: Natural Gas Buildings similar to this one
could have ratings as follows:
130
Building environment: Heating and Natural Ventilation
38
156
Total useful floor area (m2 ): 7302 If newly built
Building complexity
(NOS level): 4 50 If typical of the
existing stock
182 208 234dunstable road retail park luton THE SATURN PORTFOLIO PAGE 22 DUNSTABLE ROAD RETAIL PARK LUTON LU4 8EZ
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 23
INVESTMENT SUMMARY
Situated in the major commercial centre of Luton, benefiting from
a catchment population of over 410,000 people within a 20 minute
drive time.
Located in a highly prominent and accessible position to the north
of Luton town centre, fronting Chaul End Lane, less than a mile from
Junction 11 of the M1 motorway, being in close proximity to Hatters
Way Retail Park and units occupied by PC World and B&Q.
Modern retail warehouse parade extending to approximately
46,850 sq ft (4,353 sq m).
Part restricted / part open A1, planning consent.
Freehold.
Asset management opportunities available to let newly refurbished
vacant unit.
The property is let to DSG Retail Ltd and Next Group plc providing a
weighted average unexpired term of just less than 10 years.
The current rent is £1,015,000 per annum (overall rent of
£25.38 per sq ft) with a fixed uplift on the Currys unit in 2017.Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 24
Letchworth
Letchworth
A5
M1
A6
Leighton
Leighton
Buzzard
Buzzard A5
D
A4146 A505 Stevenage
Stevenage
ROA
Dunstable Luton
M1
A5 A505
E
NU
A1081 Luton Airport
IN
A1(M)
E
AV MONTROSE AVENUE
H
TC
M1 I
ER
N
oak
M1
LL
Welwyn SH
A
Tring Garden City
WA
Tring C
le
ST O
RO
M11
A414
11
yr
A505
F
Harlow
CK
T
A1(M)
oa
Hemel
Hemel
new bedford road
A10
RO
Hempstead
Hempstead St Albans IN AD
d
A41
D UN GS
VA
M1
A414 STA B LE ROAD TO
UX
Abbots
Abbots M25 A1(M)
NE ROAD
HA
A414
Langley
Langley
LE
Cheshunt
E
LL
W
AG
AN
M25
DUNSTABLE ROAD RETAIL PARK AY
RAV
DU
END L
NS
TA
E RO A D
Enfield M11
Watford M1 BL
Barnett E
UL
RO
M25
CHA
D A
Brentwood
HATTERS WAY RETAIL PARK
Beaconsfield
M25
A406 A505
A1
M10
HAT
AD
A10
TER A6
RO
Uxbridge
SW
IN
A40
AY
CH
A13
IT
Slough London
H
M4
Location
A505
LUTON
AD
RO
DU
EN
G RE
NS
Luton is located 35 miles north of London, Investment within Luton is evident on the M1 Y
TA
LE
AW
BL
CR
12 miles north of Hemel Hempstead, 13 miles edge of the town at Putteridge Bury where
E
RO
A
north of St Albans and 15 miles west of a high-technology office park, Butterfield
D
t
Stevenage. Green, is under construction as well as the
uc
pa
r d
former Vauxhall site, which is to be k via
The town benefits from good road kim
re-developed as a mixed use scheme called p to
communications and is strategically located n
Napier Park. ro
ET
ad
RE
adjacent to Junctions 10 and 11 of the M1 A505
CASTLE ST
L
motorway and is well served by a number of H IL
Y
LE
primary roads including the A6 trunk road
R
FA
and the A505 dual carriageway, which links
the A1 and the A5. airport way
Luton benefits from a regular train service
with a quickest journey time to London Situation Retail Warehouse
Provision in Luton
(St Pancras) of approximately 35 minutes.
Dunstable Road Retail Park is situated on
Luton possesses one of the fastest growing Chaul End Lane close to its junction with
airports in the UK in Luton International Dunstable Road, approximately 2.5 miles
Airport, which offers flights to European and north west of Luton town centre. Junction 11 The subject property is one of 3 main concentrations of retail
worldwide destinations. of the M1 motorway is conveniently located warehousing in Luton. We summarise the remaining 2 below:
approximately 1 mile directly to the west
A major town centre regeneration
of the scheme providing easy access to
Gipsy Lane Retail Park
programme is currently underway in 161,955 sq ft (15,044 sq m)
customers from the M1 corridor.
Luton, which will include upgrades to the Located south east of the town centre, tenants include B&Q, Comet,
town’s bus and railway stations, as well The subject property is located in a cluster Toys ‘R’ Us, Halfords and Argos. The scheme has an open A1 (non-
as improvements to the town’s urban of retail warehousing with PC World situated food), with certain exceptions, planning consent and rents range from
environment. to the immediate north of the scheme £16.75 – £30.00 per sq ft.
while approximately 500 yards to the
south, is Hatters Way Retail Park, which is
Hatters Way Retail Park
90,635 sq ft (8,425 sq m)
occupied by Dreams, Harveys, Paul Simon,
Tenants include DFS, Carpetright, Paul Simon, Harveys and Dreams.
Carpetright, DFS and ScS.
The park has bulky goods consent and is located immediately south
of the subject property. Rents range from £25.00 – £30.00 per sq ft.Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 25
20 MINUTE DRIVETIME CATCHMENT
A421
A1
M1
A507
MILTON
KEYNES FLITWICK
A5
HITCHIN
A6 A1(M)
LEIGHTON TODDINGTON
BUZZARD A505
STEVENAGE
A5 LUTON
A4146
DUNSTABLE M1
A1(M)
HARPENDEN WELWYN
TRING GARDEN CITY
A41 HEMEL
HEMPSTEAD ST. ALBANS
M25 POTTERS BAR
M1
AMERSHAM M25
M25 ENFIELD
HIGH WYCOMBE WATFORD
Catchment & Demographics Description
Luton has a catchment population of We summarise the key demographic data in the table below: Dunstable Road Retail Park comprises a
323,000 people and a significant 20 minute terrace of 3 modern retail units located
drive time catchment of approximately within a large surface car park.
414,339 people. Luton’s population is PROMIS PROMIS Ranking The units are of steel portal frame
forecasted to rise at a higher rate than LUTON Average Out of 200. 1 = best
construction with brick and profile metal
the national average over the period 2011
Average Household Size 2.5 2.3 n/a cladding under a pitched roof. The 2
to 2016.
southernmost units have recently been
Luton’s catchment, in terms of affluence, Per Capita in store Comparison £2,463 £2,392 70 refurbished, providing attractive full height
is broadly similar to that of the national Expenditure 2011 glass frontages. One of these units has
average, whilst per capita retail warehouse been let to Next, which benefits from a
expenditure for 2011 was significantly higher Per Capita Retail Warehouse £513 £476 38 full mezzanine floor while the second is
Expenditure 2011
than the national average and, furthermore, vacant and available to let. Currys occupy
the forecast growth of comparison spend the final unit. The scheme extends to
Forecast growth in comparison 1.2% 1.0% 73
for 2011 to 2016 is forecast at a higher rate retail expenditure 2011-16 (% Per Annum) a total of approximately 46,850 sq ft
than the national average. (4,353 sq m) GIA.
Practical Population 0.9 0.7 33
In 2010, the service sector accounted for Growth 2011-2016 The park is accessed off Chaul End Lane
80% of total employment and within this with rear servicing provided to all of
sector, financial and business services the units.
accounted for 27% of total employment,
The property provides approximately 204
both figures slightly above the retail PROMIS
dedicated car parking spaces, reflecting an
average. The manufacturing sector at Luton
attractive car parking ratio of 1 : 231 sq ft
accounts for 8% of total employment slightly
(1: 21.5 sq m).
below the retail PROMIS average.
The total site area extends to approximately
3.03 acres (1.23 hectares).Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 26
Tenancy Schedule
Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments
(sq ft) (years) Date term review rent rent
(years) (Per Annum) (sq ft)
1A Next Group plc 13,000 19/03/2012 10 18/03/2022 9.42 19/03/2017 £250,000 £19.23 Rent review is capped at £282,852 per annum.
1B To Let 6,850 – – – – – – –
Fixed uplift at 2017 rent review at 3% per annum
2 DSG Retail Ltd 27,000 29/09/2002 20 28/09/2022 9.95 29/09/2017 £765,000 £28.33
compounded. 2017 rent: £887,000 per annum.
Initial 5 year term. Agreement rolls over thereafter. Rent
Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 –
payable to equal 20% of advertising revenue.
TOTALS 46,850 9.8 £1,015,000 £25.38
Tenancies Planning
The property is part let with one vacant The Currys unit benefits from a restricted
unit in accordance with the above tenancy A1 (non-food) consent while the Next and
schedule and produces a current rental vacant unit benefit from an open A1 (food
income of £1,015,000 per annum, equating and non-food) consent.
to an overall rent of £25.38 per sq ft.
A planning summary can be provided VAU
XHA
The property benefits from an average upon request. DEA LL
LER
SHI
unexpired lease term (ignoring breaks) of P
9.8 years.
Tenure
The lease to DSG Retail Ltd includes a fixed
rental uplift in 2017.
Ground
T
QF
6,85 LET
0S
The site, as outlined in red on the plan, is
TO
held freehold.
Conditions
An updated Environmental Report is
available upon request.Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 27
Tenants’ Covenants
The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below:
UNIT Tenant Year Sales Profit/Loss Net Worth D&B
Ending Turnover Pre Taxes (000s) Rating
(000s) (000s)
30/04/2011 £3,858,000 £18,400 £327,600
1 DSG Retail Ltd 5A1
01/05/2010 £4,110,495 -£2,136 £285,700
29/01/2011 £188,400 £590,300 £1,667,000
2 Next Group plc 5A1
30/01/2010 £182,800 £677,000 £1,244,000
Tenants’ Profile Trading Profile /
Asset Management
The scheme is let to Currys and Next with one have benefited from the recent demise of
unit vacant and available to let. Currys and Best Buy’s UK operations, together with a
Next are substantial retailers with significant reduction in the number of competing stores
exposure to the UK out of town market. A brief operated by Comet. 2 of the units on this scheme have recently PC World site into a food store. The potential
summary of these is set out below: been refurbished and reclad, with Unit 1A for Currys and PC World to occupy a single
Next
now let to Next. There remains a prominent unit may provide the opportunity to regear the
Currys Next is one of the best known UK fashion
and refurbished unit available to let. The lease on advantageous terms with the tenant.
Currys is the UK’s leading retailer of electrical retailers and is listed in the FTSE 100 with a
unit benefits from an unrestricted consent
goods, being the sister company of PC current market capitalisation of £5.71 billion.
and indeed could possibly be extended to
World, both of which are subsidiaries of Over recent years, Next have expanded their
the rear.
Dixons Retail plc which is listed on the Home operation. They currently trade from
London Stock Exchange, with a market over 500 stores across the country with With PC World occupying a unit extending
capitalisation of approximately £759 million. their last results showing a 3% increase in to approximately 25,000 sq ft (2,323 sq m)
Currys and PC World currently trade from turnover to £188.4 million. adjacent to the subject property, we believe
over 1,200 stores throughout the UK and Dixons are keen to consolidate both the
PC World and Currys fascias into a single store.
We understand their preferred option is to
retain the store on the subject property, and
indeed, there are proposals to redevelop theYou can also read
