10-12 MARKET WAY COVENTRY, CV1 1DL - HIGH YIELDING RETAIL INVESTMENT LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT - LoopNet
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10-12 MARKET WAY COVENTRY, CV1 1DL HIGH YIELDING RETAIL INVESTMENT LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
10-12 MARKET WAY
COVENTRY, CV1 1DL
HIGH YIELDING RETAIL INVESTMENT
LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
INVESTMENT CONSIDERATIONS PROPOSAL
■ Let to the attractive national covenants of ■ Prominent corner trading location on Market Way, ■ Offers are sought in excess of £4,100,000 (Four
Poundland (5A1) and Sports Direct (5A2) Coventry’s prime high street retailing destination Million One Hundred Thousand Pounds) subject
■ Passing rent of £509,931 per annum, reflecting £13.97 psf ■ Short term asset management/ value add potential to contract and exclusive of VAT. A purchase at this
■ 57% of the income is subject to a fixed uplift in 2023 ■ Coventry is the current City of Culture and joint level would reflect an attractive Net Initial Yield
(2.5% per annum) host of the 2022 Commonwealth Games of 11.67% and a Reversionary Yield of 12.55%
■ WAULT of 3.5 years to expiry ■ Coventry City Council is a key stake holder in the city after the fixed rental uplift in 2023, after allowing
■ LLH interest at a peppercorn rent centre and are continuing to invest in its regeneration purchasers cost of 6.54%.
10-12 MARKET WAY
COVENTRY, CV1 1DL
HIGH YIELDING RETAIL INVESTMENT
LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
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LOCATION DEMOGRAPHICS
Coventry is a major commercial centre and the 11th largest city
in England with a population of 391,000 and over 6 million 391,000 2021
people living within 1 hour’s drive time. The City is located Population City of Culture
19 miles south east of Birmingham, 24 miles south-west of
Leicester, 11 miles north of Warwick, and 94 miles north-west
of London. 462,000 £30m Investment
Coventry benefits from excellent transport links being located Retailing Catchment into regeneration
centrally within the UK and befitting from a comprehensive
highways and public transport network. The City is served
by the M1, M6 and M40 providing drive times of 30 mins to
Birmingham and 1 hour 30 mins to London. Coventry train
21.5%
of employment within retail & leisure
station provides direct trains to a number of major cities
including; London Euston (59 minutes), Birmingham New
Street (20 minutes) and Oxford (47 minutes).
In 2021, Coventry was awarded the prestigious City of Culture
Award. Furthermore, it will play a pivotal role in the 2022 RAIL CAR
Commonwealth Games with many events due to be held in the
LONDON EUSTON 59 mins CENTRAL LONDON 1h 50 mins
newly constructed Coventry Building Society Arena.
BIRMINGHAM NEW STREET 20 mins BIRMINGHAM 28 mins
OXFORD 47 mins OXFORD 60 mins
SHEFFIELD 1h 40mins
10-12 MARKET WAY
Coventry
COVENTRY, CV1 1DL
HIGH YIELDING RETAIL INVESTMENT
LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
SITUATION
The property occupies a prominent corner position
on the pedestrianised Market Way, Coventry’s prime
high street retailing destination. The property is located
close to the main entrance of The Precinct Shopping
Centre which forms the prime retailing destination
in the City. Nearby occupiers include; Tesco, Boots,
Superdrug, Waterstones, Costa and M&S.
The property is located to the south of Market Place
providing convenient access to Coventry City Centre
Car Park and Coventry Railway Station (10 min walk).
P
For identification purposes only.
10-12 MARKET WAY
COVENTRY, CV1 1DL
HIGH YIELDING RETAIL INVESTMENT
LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
TENURE
The property is held on a long leasehold interest
from 21st December 1993 for a term of 150 years
at a peppercorn rent.
Title number: WM586020.
DESCRIPTION
The property comprises two retail units arranged
over ground and basement levels totalling 36,490 sq ft.
Poundland occupy a prominent, double fronted unit
arranged over ground & mezzanine level totalling
22,099 sq ft. The unit benefits from open plan
accommodation with an expansive frontage onto
Market Way.
Sport Direct occupy a 14,391 sq ft unit arranged over
ground and basement level. The main sale areas is
located at basement which is accessed from the ground
floor entrance via an escalator.
The upper floors have been sold off to ASH8 on a long
leasehold interest expiring in 2143. The accommodation is
currently used for student accommodation.
ACCOMMODATION SCHEDULE
Sports Direct Poundland
Floor Sq ft Sq m Sq ft Sq m
Ground 884 82.1 14,205 1,319.7
Basement 12,556 1,166.5 - -
Mezzanine 951 88.4 7,894 733.4
(Sub) Total 14,391 1,337.0 22,099 2,053.1
Total Area 36,490 3,390
10-12 MARKET WAY
COVENTRY, CV1 1DL
HIGH YIELDING RETAIL INVESTMENT
LET TO NATIONAL COVENANTS POUNDLAND & SPORTS DIRECT
TENANCY SCHEDULE
Tenant Demise Use Area Sq ft Area Sq m Start End Review Passing Rent Rent ( £psf) Comments
Poundland Ltd Ground Floor Retail 22,099 2,053.1 16/11/2009 01/11/2024 - £220,000 £9.96
& Mezzanine
level
Sportsdirect.com Ground Floor Retail 14,391 1,337.0 17/02/2008 01/03/2026 12/1/2023 £289,931 £20.15 RR Dec 2023 (upward only to the higher of OMRV
Retail Ltd & Basement or 2.5% p.a. compounded)
ASH8 Upper First & Student 01/12/2143 peppercorn
Second Floors Accommodation
Total 36,490 3,390.1 £509,931 £13.97
COVENANT INFORMATION
Poundland Limited (Reg. No: 02495645) SPORTSDIRECT.COM RETAIL LIMITED (Reg No: 03406347)
Founded in 1990 Poundland are a dominant British discount retailer specialising in the sale of items Founded in 1982, Sport Direct are now the UK’s leading sports retailer by revenue and operating
at £1. Poundland operates from over 800 stores in the UK with a recent survey (Pragma) stating profit, and also the owner of a significant number of world famous sport, fashion and lifestyle brands.
that over 50% of UK residents have visited a Poundland store. In 2017, Poundland began to roll The company currently operates from c. 420 sports stores in the UK alone, the majority of which
out PEP&CO ‘shop-in-shops’ offering customers a full range of women’s, men’s and kids’ fashion. trade under SPORTSDIRECT.com. The, Premium Lifestyle, division operates c. 130 stores in the UK,
PEP&CO is now available in over 300 stores, bringing new style to Poundland with low pricing on under fascia’s which include; Flannels, Cruise, USC and Van Mildert.
family fashion on local high streets.
Dun and Bradstreet: 5A1 (very low risk of business failure) Dun and Bradstreet: 5A2 (lower than average risk of business failure).
Experian: 100 (Very Low Risk) Experian: 95 (Very Low Risk)
2020 2019 2021 2020
Turnover £1,476,640,000 £1,543,234,000 Turnover £1,897,160,000 £2,160,287,000
Pre Tax Profit -£17,841,000 £18,465,000 Pre Tax Profit £27,846,000 £212,862,000
Net Worth -£14,824,000 £34,442,000 Net Worth £1,330,888,000 £1,496,455,000
EPC
The property has an EPC rating of C(57).
VAT
The property is elected for VAT and it is anticipated that the
transaction will be treated as a transfer of a going concern (TOGC).
ANTI-MONEY-LAUNDERING
A successful bidder will be required to provide information to satisfy
the AML requirements when Heads of Terms are agreed.
DATA ROOM
For access to the Allsop data room please use the following link:
https://datarooms.allsop.co.uk/register/marketwaycoventry
PROPOSAL
Offers are sought in excess of £4,100,000 (Four Million One Hundred Thousand Pounds)
subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive
Net Initial Yield of 11.67% and a Reversionary Yield of 12.55% after the fixed rental uplift
in 2023, after allowing purchasers cost of 6.54%.
For further information or to make arrangements for viewing please contact:
James Salmon Arthur Landman
07720 400306 07741 905764
james.salmon@allsop.co.uk arthur.landman@allsop.co.uk
allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied
on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and
contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of
each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop
is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 02.22
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