105-121 Kirkgate, Wakefield, WF1 1JG - Well let retail investment Majority let to Wilko Retail Ltd with over 17 years unexpired
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105 -121 Kirkgate, Wakefield, WF1 1JG Well let retail investment Majority let to Wilko Retail Ltd with over 17 years unexpired
Investment Summary
65% of the income secured against the strong covenant of Wilko Retail Ltd to July 2033 Well let to six tenants producing £239,600 per annum and one vacant unit
without break providing 17.3 years unexpired
Attractive WAULT of 13.2 years to expiries and 12.1 years to soonest breaks
Low passing rent of £4.64 psf on the Wilko store providing excellent potential for
Asset management opportunities including letting of the vacant unit; implementing
reversion at review
rent reviews; and exploring long term redevelopment angles to higher value uses such
Freehold as a food store
Prominent site in Wakefield city centre fronting a busy roundabout at the junction We are seeking offers in excess of £2,950,000 (Two Million Nine Hundred and
of Kirkgate (A61) and Doncaster Road (A636) Fifty Pounds) for our client’s freehold interest. A purchase at this level reflects a
net initial yield of 7.63% after the deduction of standard purchaser’s costs of 6.44%
47,466 sq ft of retail and ancillary accommodation comprised within seven units
and a low capital price of £62 psf
over ground and first floors
105 -121 Kirkgate, Wakefield, WF1 1JG
Location A59 Harrogate A59 A166
Skipton York
The City of Wakefield is a major commercial centre in West Yorkshire, located some A65 A1079
A629 Wetherby
15 miles south of Leeds and 27 miles north of Sheffield. The city’s retail offer includes two A59 A64
in-town shopping centres; The Ridings anchored by Marks & Spencers, Primark and BHS, A6068 Keighley
A1(M)
A19
and Trinity Walk home to Debenhams, Topshop and Sainsbury’s. The total population within Nelson
M65 A614
the Wakefield primary retail catchment area is 314,000 based on current PROMIS data. Bradford LEEDS M1
Selby
M621
Other key landmarks include the award winning Hepworth Wakefield art gallery, adjacent A646
A63
M62
A646 Halifax
to the Wakefield Waterfront scheme, and Wakefield Cathedral situated on Kirkgate. M62
Pontefract Goole
The Property M62
Wakefield
M62
Huddersfield M1
A1
M66
A628
Communications A629 M18
M180
Barnsley
M60
Road Doncaster
A628
MANCHESTER A159
Wakefield lies 2.5 miles east of the M1 motorway and is accessed from Junctions 39-41. M1
M18 A1(M)
M60
The M1 links directly with Leeds and the A1(M) to the north and Sheffield, Nottingham and Rotherham
Stockport A631
London to the south. The intersection with the M62 Trans-Pennine motorway is four miles SHEFFIELD
M56
to the north of the city providing access to Manchester in the west and Hull in the east. A6
A1 A156
Wilmslow M1
Rail
A642
The City of Wakefield is serviced by two railway stations; Wakefield Westgate and A 61
Wakefield Kirkgate. Fastest journey times to London Kings Cross from Westgate are just
under 2 hours. Wakefield Kirkgate provides regular direct services to Leeds, Sheffield,
NOR
THG
GRE
Bradford, Huddersfield, Doncaster and Nottingham. EARL ST ENW
OO
ATE
D RD
TRINITY WALK
Air SHOPPING STANLE
Y ST
CENTRE
W
O
Leeds Bradford International Airport is located 24 miles north west of the city and offers
O
D
A 61
KI
ST
NG
Wakefield PARK
scheduled flights to seven destinations throughout the UK and to all of the major European Wakefield C
ST
Cathedral LO
DG
AR E LN
destinations. Westgate TE
R
ST
RIDINGS The Property
SHOPPING
RD
N CENTRE
MAR
KL
ON
BAC
ATE
RS
KET S
ST
STG
WE
TE
Situation
K
SMYTH ST
IC
PE
T
W
ET
TRE
NS
2 RGE S BR
U
GEO
A64
THOR
The Property is situated within Wakefield city centre fronting a busy roundabout at the
NHILL STREET
junction of Kirkgate (A61) and Doncaster Road (A636). The property is located within RD
WILD’S YA
approximately 200 metres of the Ridings Shopping Centre and 500 metres from Trinity Walk WESTGATE
RETAIL &
Shopping Centre. Kirkgate train station is some 500m to the south and Westgate Retail and LEISURE PARK ING
S ROA
D A Wakefield
Leisure Park is less than 0.6 miles to the west. 638 Kirkgate
RD
eck
Ings B
DALE
DENBY
The Hepworth
Wakefield
Photograph taken outside of operation hours at tenant’s request Description The property provides a large format purpose built retail store, occupied and trading as ‘Wilko’, together with a parade of six small format retail units with accommodation arranged over ground and first floor levels. Buildings are of steel frame construction with brick elevations. The property also includes a designated car park for approximately 80 vehicles. A covered walkway provides a pedestrian link between Kirkgate and the car park. The Wilko’s unit provides a large open sales area to the ground floor which is subject to the tenant’s usual fit-out having been recently refurbished and rebranded under the ‘Wilko’ format. The store provides a floor to ceiling height of 3.5 metres and benefits from two entrances; one from Kirkgate high street and one from the designated car park to the rear. There is dock level loading to the side and 2 x 2,000 kg goods lifts. The first floor provides storage and ancillary accommodation. The smaller units are of regular layout, each with glazed frontages at ground level and a stair case providing access to first floor. Units are subject to various tenant fit-out. Site area is approximately 1.52 acres.
Accommodation
105 -121 Kirkgate, Wakefield, WF1 1JG
The property provides 47,466 sq ft of retail and ancillary accommodation over ground and
first floors, a summary of the areas is set out below:
Address Floor Sq m Sq ft
105 Kirkgate GF 101.00 1,087
1F 190.89 2,055
Sub-total 291.89 3,142
107/109 Kirkgate GF 213.95 2,303
1F 208.65 2,246
Sub-total 422.60 4,549
111 Kirkgate GF 89.10 959
1F 47.63 513
Sub-total 136.73 1,472
113/115 Kirkgate GF 143.15 1,541
1F 91.03 980
Sub-total 234.18 2,521
117 Kirkgate GF 71.63 771
1F 42.84 461
Sub-total 114.47 1,232
119 Kirkgate GF 71.25 767
1F 41.49 447
Sub-total 112.74 1,214
121 Kirkgate GF 2,070.98 22,292
1F 1,026.01 11,044
Sub-total 3,096.99 33,336
TOTAL 4,409.60 47,466
Tenure
The property is held freehold under title number WYK74097 and as delineated in red on the
plan opposite.
For illustrative purposes only.
Tenancy
The property is well let to five tenants with one unit under offer (at time of writing) and one vacant unit. The landlord is to provide a rent guarantee on the vacant unit and so the property
provides a total income of £239,600 per annum which equates to a low £5.00 psf across the total floor area. The property provides an attractive WAULT of 13.2 years to expiries and
12.1 years to soonest breaks. The lease terms are summarised within the tenancy schedule below:
Address Sq ft Tenant Rent £ pa £ psf Lease start Next Rent Lease Expiry Comments
Review (break date)
105 Kirkgate 3,142 Mr O.H.M. Amin £16,000 £14.72 30 June 2011 30 June 2017 29 June 2021
Lease subject to schedule of
05 August 2021 condition. Break is personal to
107/109 Kirkgate 4,549 Bhallatex Ltd £18,000 £3.96 06 August 2015 -
(06 August 2018) Bhallatex and is subject to a
break premium of £2,000.
Interest from Bhallatex to
111 Kirkgate 1,472 Vacant / Rent £10,000 £6.79 - - expand into the vacant unit.
Guarantee Vendor to provide 12 month
rent guarantee.
Passing rent £14,000 pa subject
23 July 2028 to annual increases as follows:
113/115 Kirkgate 2,521 Mr W. Chen £17,000 £6.74 24 July 2013 24 July 2018 (23 July 2018 Year 4: £16,000 pa
& 23 July 2023) Year 5: £17,000 pa.
Vendor to top up.
Terms agreed for new 6 year
lease, break option 3rd year,
Under offer to 6 years
117 Kirkgate 1,232 £10,000 £8.12 tbc - stepped rent; year 1 - £7,000
Jan Semko (3 years) pa, year 2 - £8,000 pa, year 3 -
£10,000 pa, 6 months rent free.
Vendor to top up.
119 Kirkgate 1,214 Robert Kilner £14,000 £11.53 16 August 2012 - 15 August 2017
Original lease to Tesco Stores Ltd
and assigned in 1992.
121 Kirkgate 33,336 Wilko Retail Ltd £154,600 £4.64 20 July 1970 20 July 2012 20 July 2033 14 yearly rent reviews to open
+ car park (outstanding) market rent. Car park sublet to
Wakefield City Council.
47,446 £239,600
Photograph taken outside of operation hours at tenant’s request
105 -121 Kirkgate, Wakefield, WF1 1JG
Covenant
65% of the income secured against the strong covenant of Wilko Retail Ltd which
provide a Dun & Bradstreet rating of 5A1, a summary of their recent financial
performance is set out below:
31 Jan 15 01 Feb 14 02 Feb 13
(£000’s) (£000’s) (£000’s)
Turnover 1,444,563 1,462,843 1,529,668
Pre-tax profit 5,496 27,612 27,512
Net Worth 160,898 248,295 230,431
The remaining units are let to a number of local covenants. Further information is
available upon request.
Service Charge
The service charge budget for the property for the year ending 31 August 2016 is
£2,135, equating to circa £0.04 per sq ft.
Further information is available upon request.
105 -121 Kirkgate, Wakefield, WF1 1JG
Asset Management EPC Further Information
Let the vacant unit to improve income and Units have been assessed individually and provide ratings
extend WAULT ranging from C to G.
Richard Brooke
Implement the 2012 review in the lease to Wilko Retail Further information is available on request.
richard.brooke@cushwake.com
Ltd. The passing rent of £4.64 psf is exceptionally low,
the rent review assumes an unexpired term equal to 0113 233 8879
the residue of the term meaning prospects for an VAT
uplift improve as the lease term diminishes The property is not elected for VAT.
Implement lease events on the smaller units Greg Davison
following the recent letting of no.117 at £8.12 psf Proposal greg.davison@cushwake.com
Explore long term redevelopment of the site. The We are seeking offers in excess of £2,950,000 (Two 0113 233 8836
site benefits from being proximate to city centre Million Nine Hundred and Fifty Thousand Pounds)
amenities and infrastructure, and offers prominent for our client’s freehold interest. A purchase at this level
road side frontage with private car parking which reflects a net initial yield of 7.63% after the deduction of
would appear to lend itself to a number of alternative standard purchaser’s costs of 6.44% and a low capital price
uses including food store of £62 psf.
Important Notice: Cushman & Wakefield gives notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs)
is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs
appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs.
Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been
carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property
are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. Designed and produced by www.thedesignexchange.co.uk Tel: 01943 604500. April 2016
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