WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020 - 129 STOKE ROAD, GOSPORT HAMPSHIRE, PO12 1SD - Lewis Ellis
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WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020 129 STOKE ROAD, GOSPORT HAMPSHIRE, PO12 1SD
INVESTMENT CONSIDERATIONS
Gosport is an established Hampshire town Large retail unit of 23,975 sq ft with Let to the 5A1 covenant of Waitrose Limited We are instructed to seek offers in excess of
located on the south coast with a population of approximately 80 car parking spaces. with 8.7 years unexpired. £3,300,000 (Three Million and Three Hundred
approximately 82,000 people. Thousand Pounds), subject to contract and
Waitrose have been in continuous occupation Low passing rent of £220,000 per annum exclusive of VAT.
Prominently located on the edge of Gosport for over 43 years. A reversionary lease (£9.18 psf).
town centre serving the affluent Alverstoke was signed by Waitrose starting last year A purchase at this level reflects a net initial
suburb and wider area. demonstrating commitment to the unit. Significant fixed increase to £250,000 per yield of 6.25%, with a reversion to 7.11% in
annum (£10.43 psf) in July 2020. This is still 2020 assuming purchasers costs of 6.48%.
Freehold. considered low for a supermarket rent.
WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD
Petersfield
M3 A32
LOCATION
A3057
Eastleigh A3
M27 B3354 Droxford
Gosport is an established Hampshire town located on the south coast approximately 3 miles (4.8 km) SOUTHAMPTON South Downs
AIRPORT
National Park
south west of Portsmouth, 6 miles (9.7 km) south east of Fareham and 15 miles (24.1 km) south east of
M27
M271
Southampton. B2150
Cadnam A32
The town is located on a peninsula with the Solent to the west and Portsmouth harbour to the east. A336
Hedge End A334
SOUTHAMPTON
Portsmouth is linked via a pedestrian ferry that runs throughout the day with a journey time of four A3(M)
Wickham
minutes. A35
Waterlooville
The A32 (Fareham Road) is the principal arterial route to Gosport providing good access to the M27 at
Hythe M27
junctions 10 and 11, which links to the M3 at Southampton and the A3 (M) at Havant. A326
A27
Rail services to London Waterloo are via Portsmouth with a fastest journey time of 1 hour 40 minutes. Fareham
Titchfield Havant A27
Portchester
Portsmouth town centre and train station are easily accessed via the harbour ferry. Cosham
A337
Southampton International airport is located 20 miles (32.2 km) to the north west. A32
M275
Chichester
The
Blackfield Sol
ent PORTSMOUTH Harbour AONB
Lee-on-the-Solent
SITUATION North Solent Hayling Island
National
Nature Reserve GOSPORT Alverstoke
The property is prominently situated approximately 0.5 miles to the west of Gosport town centre
providing excellent access for shoppers travelling from the wider area including the affluent suburb of ent
Sol
The Cowes
Alverstoke.
The building is located between Stoke Road and South Street with good frontage onto both. It is also
within walking distance from the town centre and the high street retail offer as well as other out-of-town
retail units including those occupied by Argos, Halfords, Asda, Morrison’s and Iceland. ISLE OF WIGHT
The next nearest Waitrose unit by road is located 9.8 miles (15 km) north west in Locks Heath to the National Museum
Royal Clarence Marina
south east of Southampton. A3
2
of the Royal Navy
ST
FORTON ROAD QUEEN
AD
A32
H RO
Gosport
D
M U MBY ROA Marina Portsmouth
WHITWORT
B2
-Gosport
SPRING GARDEN LANE
15
Ferry Terminal
4
ANN’S HILL ROAD
A32
GUN WHARF
Town Centre
SUBJECT PROPERTY HIGH
STREET
QUAYS
ROAD
OAD
KE R SOUTH ROAD RD
DON
STO
Gosport
GUNWHARF
Gosport War Ferry Terminal
GOR
3
B333
Memorial
Hospital Portsmouth
IOW Car
333 Ferry Terminal
B 33 BURY ROAD B3
33
ROAD
SOUTH
BR
Haslar
THE AVENUE
GE
O
Lake
AD
RID
ALVERSTOKE
ST
RB
Haslar
RE
SLA
Marina
ET
HA
D
R OA
PARK ROAD
EY The Royal Navy
Submarine Museum
ES
GL
AN
Gosport
Park
AD
RO
R Royal Haslar
S LA
HA Luxury Waterfront
Residential Village
WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020
CATCHMENT & DEMOGRAPHICS Gosport has a catchment of 360,000 within a 10km radius and a town population of approximately 82,000. The demographic profile of the Gosport area is typically an older, affluent and skilled worker in employment (or now retired). The CACI Lifestyle groups percentage of skilled workers for the area is 36.7% as opposed to the average for Great Britain of 12.8%. This affluent population is highlighted further by 66% of the population owning their homes outright or owning with a mortgage compared to the Great Britain average of 63.5%. Unemployment within Gosport is only 1.1% of the economically active population in comparison to the Great Britain average of 4.9%. Furthermore, 72% of the local population are aged 35 or over. DESCRIPTION The property comprises a large retail unit, which has been occupied continuously by Waitrose for over 43 years since its original construction. The unit totals 23,975 sq ft over ground and first floors and is of concrete frame construction. The store has two main access points, to the front and rear, and is fitted out internally to the modern Waitrose format. Internally the store benefits from 5 main checkouts as well as 4 basket checkouts. The store also has deli and meat counters, a cash machine and full Waitrose services including a click & collect counter. Loading is to the rear of the store where a main goods lift to the first floor is located. There are also two additional staff lifts to each side of the unit. The first floor comprises storage space with a large chilled area and separate freezer area, staff canteen and managers offices. The unit benefits from approximately 80 car parking spaces providing a good ratio of 1:299 sq ft. The property occupies a 0.88 acre (0.357 hectare) site with a low site cover of 36%. ACCOMMODATION The property has been measured on a Gross Internal Area basis (GIA) in accordance with the RICS Code of Measuring Practice (6th Edition). Description Area (sq m) Area (sq ft) Ground Floor Retail 1,125.11 12,111 First Floor Ancillary 1,102.16 11,864 Total 2,227.27 23,975 WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD
Fort Monckton Gosport & Stokes Bay
Golf Club Institute of
Naval Medicine
CLAYHALL RD
Royal Haslar
Luxury Waterfront
Residential Village
Gosport Park
ALVERSTOKE
HASLAR ROAD
Haslar Marina
BURY ROAD
SOUTH STREET
SUBJECT PROPERTY
STOKE ROAD
Town Centre
HIGH STREET
TENURE TENANCY
Freehold. The property is let on full repairing and insuring terms to Waitrose Limited by There is a fixed uplift on 17th July 2020 to £250,000 per annum (£10.43 psf).
way of a reversionary lease to the original lease for a term of 10 years from 17th
July 2015 to 16th July 2025 (total of 8.7 years unexpired). The passing rent is The original lease to Waitrose dates back to 1973 and they have been in
£220,000 per annum (£9.18 psf). continuous occupation for over 43 years.
WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020
COVENANT
Waitrose is a chain of British supermarkets, which forms the food retail division of Britain’s largest
employee-owned retailer, the John Lewis Partnership. Waitrose has circa 365 branches across the
United Kingdom and a 5.3% share of the market, making it the sixth-largest grocery retailer in the UK.
Waitrose Limited has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business
failure and their last 3 years trading figures are:
30 Jan 2016 31 Jan 2015 25 Jan 2014
(000’s) (000’s) (000’s)
Sales Turnover £5,966,600 £6,016,700 £5,640,900
Profit Before Tax £66,600 £80,600 £109,100
Tangible Net Worth £930,300 £853,700 £796,600
EPC
The property has an EPC rating of 82 (band D). A copy of the EPC is available in the data room.
WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD
LETTING MARKET VAT
The passing rent of £9.18 per sq ft is considered low for a supermarket, and remains so even with the fixed increase in The property is elected for VAT and it is proposed that the sale will be treated
2020 to £10.43 per sq ft. Other examples include: as a Transfer of a Going Concern (TOGC).
Address Area (sq ft) Rent (£ psf) Comments
DATA ROOM
Co-Op, Southampton 13,034 £22.24 Rent review in September 2016. There is a data room for the property with key tenancy information, title
Tesco, Gosport 36,522 £20.00 Open market letting in May 2013. documents and EPC certificates. Access can be provided on request.
Waitrose, Waterlooville 42,000 £16.07 Rent set prior to 2016 rent review.
2016 rent review at arbitration.
Waitrose, Dorchester 15,187 £17.69
Passing rent stated.
INVESTMENT MARKET
Supermarket investments continue to be well sought after in the current market as they provide a defensive income
stream. Comparable recent transactions are as follows:
Unexpired Area Net Initial
Property Date Price Comments
Term (years) (sq ft) Yield
Waitrose (85%)/Co-op On
12 50,875 £5.18m 6.00% Fixed increases.
(15%), Brackley Market
M&S Foodhall, Chepstow Oct 16 9 20,454 £4.40m 6.09% Part sublet. OMV reviews.
Fixed 2.5% compounded
Waitrose, Wellington Sep 16 12.5 22,799 £7.89m 4.91% uplift in 2019. OMV reviews
thereafter.
Forward funding. 5 yearly
Waitrose, Bromsgrove Jul 16 15 9,000 £3.60m 5.15% CPI linked reviews with 1-3%
collar and cap.
Co-Op Supermarket,
Feb 16 9.3 14,739 £3.78m 6.25% OMV review in 2019.
Malmesbury
WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020
PROPOSAL FURTHER INFORMATION
We are instructed to seek offers in excess of £3,300,000 (Three Million and Should you require further information or wish to view the property please contact either:
Three Hundred Thousand Pounds), subject to contract and exclusive of VAT.
Matthew Brown James Elkington
A purchase at this level reflects a net initial yield of 6.25%, with a reversion Tel: 020 7493 3330 Tel: 020 7493 3330
to 7.11% in 2020, assuming purchasers cots of 6.48%. Mob: 07836 724 420 Mob: 07810 722 459
Email: mbrown@lewisellis.co.uk Email: jelkington@lewisellis.co.uk
WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD
Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract;
(2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or
representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property.
Designed and Produced by Creativeworld. Tel: 01282 858200. November 2016.
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