98 CLAPHAM ROAD BEDFORD MK41 7PJ NEW ALDI SUPERMARKET WITH 21 YEAR LEASE & RPI LINKED REVIEWS - Colliers Retail Capital Markets
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98 CLAPHAM ROAD
BEDFORD M K 4 1 7 PJ
NEW ALDI SUPERMARKET WITH 21 YEAR LEASE & RPI-LINKED REVIEWS
>
CGI: For illustrative purposes only
INVESTMENT CONSIDERATIONS PROPOSAL
New supermarket with practical
completion due April 2018
Strategically located with highly
prominent frontage to busy
OFFERS SOUGHT IN EXCESS OF £7,355,000
arterial roads reflecting a Net Initial Yield of 4.75% and an equivalent yield of 6.82% subject
Let to Aldi Stores Limited on a
21-year FRI lease commencing GIA of 20,927 sq ft (1,944 sq m) to contract and exclusive of VAT.
31 March 2017 (20 years with the benefit of 113 demised The SPV holding company is available by negotiation.
unexpired) car parking spaces (1:185 sq ft
ratio) Date Rent pa @ 2.70% RPI Running Yield
Rent is subject to 5-yearly
upward only RPI rent reviews, Current contracted rent March 2022 £426,079 5.43%
compounded annually and of £372,939.83 per annum, March 2027 £486,791 6.20%
collared and capped at 1%-3% reflecting £17.82 psf
March 2032 £556,153 7.09%
March 2037 £635,400 8.10%
Yields are net of purchaser’s costs of 6.66%.
KING’S FIELD
500 UNIT RESIDENTIAL
DEVELOPMENT
FU
TUR
E T H O R O U G H FA
98 CLAPHAM ROAD
RE
BEDFORD MK41 7PJ
O u t l i n e I n d i c a t i v e O n l y.
A 508
A1
NORTHAMPTON
CAMBRIDGE
LOCATION &
COMMUNICATIONS BEDFORD
Bedford is the principal commercial and retail centre of Bedfordshire
and represents the administrative centre. MILTON KEYNES
Located approximately 18 miles (29 km) north east of Milton Keynes, A 10
M1 M11
31 miles (50 km) east of Cambridge, 21 miles (34 km) south east
of Northampton and 60 miles (100 km) north of London, the town LUTON
benefits from excellent communications.
AYLESBURY A1(M)
BEDFORD PARK
M25
AD
RO
M1
N
LTO
BO
M40
KI M
CL
AP
AM
H
RO
LONDON
AD
60
B6 M4
A5141
TA M3
V IS
TO
T
C KS
UNION S
TR
EET GOLDINGTON ROAD
A42 80
ST
P E T ER’S
M20
CAR
ST
M&S
DEBENHAMS
M1 - 10 miles (16 km)
HARPUR A3 - 9 miles (14 km)
BEDFORD SHOPPING CENTRE
RAIL
A6
RIVER GREAT OUSE RUSSELL PARK
London St Pancras – 40 minutes
A5
14
1
CARDIN
GTO
ST JO
NR
AIRPORT
OA
D
HN’S
KI
NG
SW LON GHOLME WAY
ST
AY
CA
Luton – 35 minutes’ drive
RD
IN
BEDFORD ST JOHNS GT
ON
RO
ADSITUATION
The subject property occupies an extremely prominent position on
SHARNBROOK
the south side of the recently upgraded roundabout intersection
of Clapham Road / Paula Radcliffe Way (A6). The intersection
provides direct passage to Bedford town centre 1.2 miles (2km) to
the south, in addition to convenient access to Kettering to the north BLETSOE
FELMERSHAM
via the A6, and Northampton to the east via the A4280.
Adjoining the property is a Sainsbury’s supermarket with a GIA of HARROLD
79,624 sq. ft. with 450 car spaces.
DEMOGRAPHICS
CARLTON MILTON ERNEST
PAVENHAM
Bedford has a primary catchment population of 322,000, with an
estimated shopping population of 159,000, ranking the town 94 of
the PROMIS centres. The town is projected to see significantly above OAKLEY
average growth in population over the period 2016-21.
CLAPHAM
The catchment population is categorised as ‘moderately affluent’
(source: PMA Affluence Indicator), with a significantly above MANTON
average proportion of adults of working age categorised within the INDUSTRIAL
ESTATE
most affluent AB social group.
BEDFORD
COMPETING STORES
WILLINGTON
The map denotes the competing foodstores (5,000+ sq ft) in the 6,617 SQ FT*
Bedford area. Notably, the closest competing discount foodstores
within a 5-minute drive-time are predominantly located south of the 7,339 SQ FT* CARDINGTON
Bedford town centre.
47,591 SQ FT*
SHORTSTOWN
‘Aldi overtook Co-Op to become Britain’s ELSTOW
7,339 SQ FT*
fifth biggest supermarket by market share.’ WOOTTON
COTTON END
(December 2017 - The Guardian) 9,255 SQ FT*
5 MINUTES 10 MINUTES 15 MINUTES
WIXAMS
* denotes approximate Net Sales AreaDESCRIPTION ACCOMMODATION
The subject property is presently under construction with Practical Completion anticipated The property benefits from the following proposed
for early April 2018. Upon completion, the store will consist of a ground level purpose-built floor areas:
Aldi foodstore, with 113 demised surface car parking spaces.
The foodstore provides convenient access via the roundabout intersection of Clapham
Road and Paula Radcliffe Way (A6).
Description Area (sq ft) Area (sq m)
Ground Floor Sales 13,500 1,254
‘Aldi last week posted a 15% rise in UK sales for Office Area 1,582 147
December, taking total annual sales across the UK and Storage Area 5,845 543
Ireland above the £10bn mark for the first time ever.’ Total 20,927 1,944
(January 2018 - Kantar Worldpanel)
Site Plan
N
20,927
SQ FT
Cl
ap
ha
Park
m
Car
Ro
113
ad
PARKING
SPACES
790
2260
1000
850
1000
r y's
sbu
300
n
2201
Sain l Statio
o
Petr
Title Plan - for indicative purposes onlyTENANCY
The property is currently let to Aldi Stores Limited on a 21 year term from 31 March
2017 (20 years unexpired) with 5-yearly upward only RPI-linked rent reviews
ALDI STORES LIMITED (#02321869)
compounded annually, collared and capped at 1%-3%.
The current contracted rent is £372,939.83 per annum, reflecting £17.82 psf.
At the expiry of the lease, the tenant has an option to renew for an additional
term of 20 years at the higher of passing rent or OMV.
TENURE COVENANT INFORMATION
Founded in 1962, Aldi is a leading global discount supermarket chain founded
Freehold under title number BD309081. in Germany. The retailer operates over 10,000 stores across 18 countries, with an
estimated global turnover of £43.6bn. Aldi first opened in the UK in 1990 and now
has approximately 726 stores.
More recently, Aldi has undertaken a significant and rapid expansion programme
£10 billion
TOTAL ANNUAL SALES
5th
LARGEST SUPERMARKET
which has seen its market share grow by a considerable 80% since Summer 2013,
with an intended 1,000 stores to be operating throughout the UK by 2022.
Aldi is now the 5th largest supermarket operator in the UK by market share (6.9%),
IN 2017 OPERATOR IN THE UK with total annual sales across the UK and Ireland recently exceeding £10bn.
Y/E 31/12/2016 Y/E 31/12/2015 Y/E 31/12/2014
80% 1,000
Y/E
£’000 £’000 £’000
INCREASED MARKET STORES IN THE UK Sales Turnover 8,744,345 7,705,140 6,893,257
SHARE SINCE BY 2022 Pre-Tax Profit 214,795 212,621 248,673
SUMMER 2013
Net Worth 2,321,983 2,076,738 1,952,601
6.9% MARKET SHARE
‘Aldi continues its rapid expansion and intends to have
1,000 stores in the UK by 2022.’
(September 2017 - BBC News)VAT
The property has been elected for VAT purposes and it is expected that the investment sale will be
treated as a Transfer of Going Concern (TOGC).
EPC
An EPC for the property will be available upon practical completion of the building works.
PROPOSAL
OFFERS SOUGHT IN EXCESS OF
£7,355,000
reflecting a Net Initial Yield of 4.75% and an equivalent yield of 6.82% subject to contract
and exclusive of VAT.
The SPV holding company is available by negotiation.
Date Rent pa @ 2.70% RPI Running Yield
March 2022 £426,079 5.43%
March 2027 £486,791 6.20%
March 2032 £556,153 7.09%
March 2037 £635,400 8.10%
Yields are net of purchaser’s costs of 6.66%.
FURTHER INFORMATION
Andrew Marshall Tim McIntosh Tom Edson
020 7344 6854 020 7487 1852 020 7344 6554
Andrew.Marshall@colliers.com Tim.McIntosh@colliers.com Tom.Edson@colliers.com
Colliers International
50 George Street
London
W1U 7GA
MISREPRESENTATION ACT DISCLAIMER
Colliers International give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given
without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the
correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. Colliers International is the licensed
trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561. Registered office: 50 George Street, London W1U 7GA.
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