B&M AND SCS MARINERS WAY, PRESTON PR2 2YN WELL SECURED RETAIL PARK INVESTMENT OPPORTUNITY - STAUNTON WHITEMAN
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
B&M and Sc S MARINERS WAY, PRESTON PR2 2YN W E L L S E C U R E D R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T Y
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
INVESTMENT SUMMARY
The property is situated 1 mile west of Preston city centre and forms a part of the main retail warehouse pitch on the western side of the city.
The property occupies a prominent site of 3.05 acres immediately adjacent to a Morrisons foodstore and a McDonald’s drive-thru.
The B&M and ScS units are modern purpose-built retail warehouses comprising a total of 43,472 sq ft.
Both units incorporate mezzanine floors which are used for retailing.
There is parking for 205 cars showing an excellent ratio of 1:212 sq ft.
The property is held freehold.
The leases have a combined WAULT of 8 years without break.
The property produces a rent of £541,130 per annum, which reflects a very modest £12.45 psf overall.
100% of the income is secured against tenants with 5A2 D&B ratings.
Our client is seeking offers in excess of £6,140,000 (SIX MILLION ONE HUNDRED AND FORTY THOUSAND POUNDS), subject to contract and exclusive
of the VAT, for their freehold interest in the property. A purchase at this price would show a yield of 8.25%, net of purchaser’s costs of 6.8%, and a very
modest £141 psf capital value.
2
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
The B&M and ScS units are modern purpose-built retail warehouses comprising a total of 43,472 sq ft
3
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
LOCATION
Blackpool
The city of Preston is located on the northern bank of the River Ribble in PRESTON
Lancashire, approximately 27 miles north west of Manchester and 27 miles
north east of Liverpool. Preston is the administrative centre of Lancashire and
was, in January 2021, named by PWC as the best city in which to live and work
in the north west of England, ahead of both Manchester and Liverpool. Key
indicators include job prospects, health, transport, income and housing.
Preston has excellent road connections. The M6 motorway is just 3½ miles
east of the city centre, connecting with the M61 motorway 5 miles south of
Preston, providing direct access to Manchester city centre. The M55 is 4 miles
North of Preston which runs directly to the seaside resort of Blackpool.
By rail Preston is on the West Coast Main line and has a fastest journey time
of 2 hours 16 minutes to London Euston. There are also direct services to
Manchester (36 minutes) and Liverpool (44 minutes). MANCHESTER
Manchester Airport is 40 miles south west and Liverpool John Lennon airport LIVERPOOL
is 46 miles south of Preston so international air connections are also good.
Historically the city’s economy was dominated by the textile industry and it was
a large port. Major employers now include BAE systems, Baxi, the Carphone
Warehouse and Lancashire County Council. The English Football League is
also based in Preston. In addition, the University of Central Lancashire has
its main campus in Preston which has a student population of approximately
23,000.
For indicative purposes only. Not to scale.
Significant new housing development is currently occurring around the
northern edge of the city. Over 1,000 new homes are being built on a series of
sites by Story Homes, Redrow, Charles Church and Barratt Homes.
.
The property is situated 1 mile west
of Preston city centre and forms a part
of the main retail warehouse pitch on the
western side of the city.
4
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
SITUATION
Bray S
A583
Egerton Road A5072 Tulketh Road
treet
The B&M and ScS units are situated on a prominent site on the northern side
Swa
Dou
of Mariners Way, which fronts Preston Marina basin. It is approximately 1 Halfords Morrisons
ns e
ne
glas
Auto Centre
mile west of Preston city centre. The A583 is immediately to the north of the
a St
P edders La
S
McDonald’s Carpetright
tree
Powis Road
ree
property which connects Preston to Lytham St Annes to the west.
t
t
A5
A583 Wate
ry Lane Halfords Pets at Home
072
Adjacent to the east of the property is a Morrisons foodstore and petrol filling
Po r t Wa y
We
station and a Halfords Autocentre and to the west is a McDonald’s drive- Preston City Centre v
st
Stra
thru unit. Further to the east along Mariners Way is another cluster of retail Mariners Way
nd
warehousing where DFS, Halfords, Pets at Home, Bensons for Beds and
Carpetright occupy units. Together this development forms the main out of DFS Bensons for Beds Ch
an
ne
town retail location on the western side of Preston. Marina lW
B&M and Sc S ay
Access to the B&M and ScS units is from both directions of Mariners Way.
Na
vi g
a t ion Way
rt
Po
Wa
y
DEMOGRAPHICS River Ribble
According to PROMIS the total population within Preston’s primary catchment Port
r Way
area is 508,000 people with an estimated shopping population of 295,000 people.
The B&M and ScS stores themselves have a population of 207,924 within a 15
PENWORTHAM GOLF CLUB
minute drive-time. This population is relatively young and is particularly high in
A59
the 16-24 year age range by comparison to the UK average.
For indicative purposes only. Not to scale.
Levels of home and car ownership are also above the UK average. The social
grade of this population is broadly in line with UK averages, although the C1
social grade is above the UK average.
The 15 minute drive-time catchment has an annual total spend of £556 million on
comparison goods (Store Point Geo).
The property occupies a prominent site
A5
9
A59
of 3.05 acres immediately adjacent to a
Morrisons foodstore and a McDonald’s
drive-thru.
5
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
DESCRIPTION
The property is a modern purpose-built retail warehouse development comprising
two in-line units which are let to B&M and ScS.
The B&M unit is 35,753 sq ft GIA at ground floor and has a mezzanine floor of
13,965 sq ft GIA. The majority of the mezzanine floorspace is used for retailing. It
has a glazed entrance lobby and a glazed awning running along the front of the
unit. Internally the B&M unit has an amenity block and there is a garden centre
to the rear.
The ScS unit is 7,719 sq ft GIA at ground floor and has a mezzanine floor of 7,608 sq
ft GIA, which is used for retail sales. The unit has a double height glazed frontage.
Both units are of an attractive design being brick-built to a level and composite
cladding above. They are of a steel portal frame construction under pitched roofs.
Customer car parking is regularly laid out to the front of both units. In total there
is parking for 205 cars, including 8 disabled spaces, showing an excellent ratio of
1:212 sq ft.
Both units are serviced from a secure yard located to the rear of the ScS unit,
which is accessed separately to the customer car park.
SITE
For indicative purposes only. Not to scale.
The property occupies a regular rectangular site of approximately 3.05 acres
(1.232 hectares).
TENURE
Freehold.
There is parking for 205 cars showing an
excellent ratio of 1:212 sq ft.
6
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
7
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
PLANNING
Outline planning for the redevelopment of the Preston Dock Estate was originally granted on
30th November 1982 (App No 006/82/0640) to include a mix of uses including residential, retail,
general industry, recreation, offices and structural landscaping. In 1989 consent was granted
for the development of what is now the B&M unit (App No 06/89/0170). This consent is for Open
A1 (non-food) use although 5% of the gross unit floorspace can be used for ancillary restaurant
food sales.
In 2004 consent was granted for the construction of the ScS unit (App No 06/2004/0077)
which can be used for the sale of non-food, bulky durable goods and specifically furniture,
floorcoverings, household textiles (not clothing) and bulky electrical goods. There is a specific
restriction against the subdivision of the ScS unit.
8
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
TENANCIES
The property is well let to two sound covenants in B&M and ScS. B&M have just taken their unit, The property currently produces an income of £541,130 per annum reflecting £12.45 psf overall on
which was formerly let to Homebase, on a new 10 year lease without break. The previous occupier the ground floor areas. The property has a WAULT of 8 years overall.
expressed interest to remain in the unit and there was other tenant interest, however, B&M were
selected due to the strength of their covenant. The schedule below sets out the tenancy details;
TENANT AREA (SQ FT) MEZZ AREA (SQ FT) ANNUAL RENT (PA) RENT (PSF) LEASE FROM TERM EXPIRY DATE BREAK COMMENT
B&M have 24 months at half rent
B&M 35,753 13,965 £357,530 £10.00 27/01/2021 10 Yrs 26/01/2031 -
which will be topped-up by the vendor.
ScS 7,719 7,608 £183,600 £23.79 29/09/2005 20 Yrs 28/09/2025 -
TOTAL 43,472 21,573 £541,130 £12.45
9
B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
INCOME SECURITY
Both units are let to national multiple retailers and the income is very well secured.
B&M has a portfolio of 656 stores throughout the UK and employs approximately 30,000 staff. In 2020 B&M’s
parent company, B&M European Value Retail, entered the FTSE 100.
ScS has a portfolio of 101 stores across the UK and employs over 1,500 people. Shares in ScS Group Plc, the
parent company of A. Share and Sons Limited, are traded on the London Stock Exchange. Despite the COVID-19
pandemic, ScS have just released very positive interim results for the 6 months to 23 January 2021. Gross sales
increased by 13.9%, revenue increased by 14.4% and gross profit increased by 16.8% against the same pre
COVID-19 period to January 2020.
The schedule below sets out the most recent financial information on the tenants.
D&B PRE TAX PROFIT
TENANT YEAR ENDING TURNOVER NET WORTH
RATING (LOSS)
28/03/2020 £3.15 bn £262 m £806 m
B&M Retail
5A2 30/03/2019 £2.80 bn £273 m £754 m
Limited
31/03/2018 £2.63 bn £236 m £600 m
25/07/2020 £255 m (£2.33 m) £36.7 m
A. Share & Sons
5A2 27/07/2019 £317 m £14.96 m £49.2 m
Limited
28/07/2018 £337 m £13.99 m £43.9 m
100% of the income is secured against tenants with 5A2
D&B ratings.
10B&M and Sc S , MARINERS WAY, PRESTON PR2 2YN
VAT
The property has been elected for VAT purposes. It is expected that
the sale will be treated as a Transfer of a Going Concern (TOGC).
EPC
Copies of the Energy Performance Certificates (EPC’s) are available
upon request.
PURCHASE PRICE
Our client is seeking offers in excess of £6,140,000 (SIX
MILLION ONE HUNDRED AND FORTY THOUSAND POUNDS),
subject to contract an exclusive of the VAT, for their freehold
interest in the property.
A purchase at this price would show a yield of 8.25%, net of
purchaser’s costs of 6.8%, and a very modest £141 psf capital
value.
11FURTHER INFORMATION
Should you require any further information on the property or wish to arrange an inspection, please do not hesitate to contact:
Hamish Whiteman Nick Staunton
hamish@stauntonwhiteman.co.uk nick@stauntonwhiteman.co.uk
07867 501430 07961 300257
Staunton Whiteman LLP
9-10 Savile Row
London W1S 3PF
020 7287 2228
MISREPRESENTATION ACT 1967 AND DECLARATION
Messrs Staunton Whiteman LLP, for themselves and for the vendors of this property whose agents they are, give notice that:
i) the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract:
ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or
representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them:
iii) no person in the employment of Staunton Whiteman LLP has any authority to make or give any representation or warranty in relation to this property.
iv) In order to comply with anti-money laundering regulations, Staunton Whiteman LLP will require the identification of, and certain information upon, the successful bidder. In submitting an offer, bidders agree to provide such information when Heads of Terms
have been agreed.You can also read
