B&Q, Marlborough Retail Park - Highfield Road, Craigavon, BT64 1AG - Prime Open A1 Retail Warehouse
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Prime Open A1 Retail Warehouse B&Q, Marlborough Retail Park Highfield Road, Craigavon, BT64 1AG
Investment Summary
Open Class A1 Retail Warehouse forming
part of Craigavon Town Centre.
• The property occupies a prominent location in • The Property is let to B&Q Plc on a 25 year full lease stipulates the property is to be reviewed to an
Central Craigavon adjacent to Tesco Extra and repairing and insuring lease from the 2nd November 80,000 sq ft unit and on this basis the rent equates
Rushmere Shopping Centre & Retail Park. 2001. to £12.50 per sq ft.
• A purpose built retail warehouse unit with a gross • The lease incorporates 5 yearly open market • Our client is seeking offers in excess of
internal area of 86,620 sq.ft. upwards only rent reviews. The next rent review is £11,450,000 (Eleven Million, Four Hundred
due on 2nd November 2016. and Fifty Thousand Pounds) reflecting an
• Freehold.
attractive net initial yield of 8.25% excluding VAT
• Current rent passing is £1,000,000 per annum. The
• Open Class A1 retail planning permission. and assuming full purchasers costs at 5.80%.
Newcastle
Middelsbrough
York Hull
Derry Leeds
Belfast
Lisburn
Craigavon Bolton
Manchester
Newry
Liverpool
Nottingham
Cambridge
Dublin Birmingham
Luton
London
Oxford
Reading
The subject property is located in Craigavon, County In addition the direct Belfast to Dublin train service The Borough has a catchment population of 180,000,
Armagh and lies in between the towns of Portadown stops in Portadown some 3.5 miles (5 km) to the second only to Belfast and has the highest birth rate
and Lurgan. Craigavon is located approximately 28 South-West of the town. George Best Belfast City in the country of 2.3%, Craigavon’s population of
miles (45 km) South-West of Belfast and 23 miles (37 Airport is located approximately 30 miles (48 km) to 93,023 is forecast to continue to grow to 100,000 by
km) North of Newry. the North-East with Belfast International Airport some 2015 and to 112,000 by 2023. Additionally there is a
28 miles (45 km) to the North. population of 805,390 within a 45 minute drive time.
Craigavon enjoys excellent transport infrastructure (Source: NISRA 2011)
and is well connected to the rest of Ireland and to Craigavon Borough has the third largest population in
mainland UK. Craigavon has good road networks Northern Ireland and performs a strong sub-regional Craigavon is ranked 20th in CACI’s ranking of over
being positioned within close proximity to the M1 role offering a wide range of services and facilities, 400 Irish Retail Footprint Centres and 7th in Northern
motorway which links Belfast, approximately 30 including an acute hospital. Ireland Retail Footprint ranking. Furthermore the
minutes drive time to the North and Dublin via the A1 surrounding retail area has the greatest retail
Permit ID:130039 © Crown Copyright 2013 is approximately 1 hour 30 minutes drive time to the footprint attractiveness score outside of the
South. shopping centres in Belfast.
Description
Purpose built retail unit, constructed in 2001. This block work at low level with composite plastisol The store extends to 86,620 sq ft which includes
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largely single storey building comprises a steel portal coated profiled steel cladding at high level. Internally first floor ancillary office space of 2,524 sq ft. The
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frame supporting a series of low pitched roofs finished the building is largely open plan with minimal fixtures property occupies a site of approximately 8.94 acres
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with composite plastisol coated profiled steel sheeting. and fittings however it does accommodate two blocks and includes approximately 500 car parking spaces
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The external walls of the front elevation are finished which provide office and staff welfare accommodation equating to a ratio of 1:173 sq ft.
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with alternate courses of clay facing brick and fair face split over two floors. The main retail area is heated with
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concrete blocks augmented in various locations with oil fired warm heaters and the office accommodation A building survey and condition report has been
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polyester coated aluminium curtain walling complete has DX air conditioning units. Illumination is largely by undertaken by the Watts Group Plc which is
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with sealed double glazed units. The other elevations T5 fluorescent lighting with daylight dimming. assignable to the purchaser and is available in the
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have alternate bands of facing brick and fair faced secure document library.
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AT Tenancy and Accommodation
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The property is fully let to B&Q Plc for a period of The property benefits from 5 yearly upwards only rent A measured areas survey has been undertaken by
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25 years from the lease commencement date, 2nd reviews with the next review due on 2nd November Plowman Craven Ltd which is assignable to the
November 2001 with a lease expiry on 1st November 2016. The current rent passing is £1,000,000 per purchaser and is available in the secure document
TESCO 2026. annum and the lease stipulates the property is to be library.
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reviewed to an 80,000 sq ft unit. On this basis the
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Unit Tenant Use Area (sq ft) Area (sq m) Rent (£) Lease Start Lease Expiry Rent Review
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AY Unit 1 B&Q pic Ground Floor - 84,096 7,812.8 £1,000,000 02/11/2001 01/11/2026 02/11/2016
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Marlborough Warehouse
Retail Park
First Floor - 2,524 234.5
Office
Overall Total 86,620 8,047.3
Situation
B&Q Craigavon sits adjacent to a 7,791 sq ft Halfords Rushmere Shopping Centre & Retail Park is home
which together form Marlborough Retail Park. The to circa 70 retailers and is anchored by Sainsbury’s,
subject property is situated adjacent to a Tesco Debenhams, Homebase and TK Maxx. Recently
Extra which along with the 490,000 sq ft Rushmere planning approval has been granted for an Omniplex
Shopping Centre & Retail Park form Craigavon Cinema in close proximity to Marlborough Retail Park
Town Centre as set out in the Boundaries and Retail which will add a late night leisure element to the retail
Designations Plan 2010. offer.
Tenure Tenant Covenant
Freehold B&Q is the largest home improvement and garden
YE 28/01/2012 YE 29/02/2011 YE 30/02/2010
centre retailer in the UK and Europe and the third
B&Q Plc GBP(000’s) GBP(000’s) GBP(000’s)
largest in the world. B&Q’s owner, Kingfisher recently
announced its financial results for the year to January Sales Turnover 3,710,400 3,711,700 3,792,400
31st 2013. Although there was a drop in sales figures,
total revenue still stood at £10.6bn. Pre-tax profits for Profit / (Loss) Before Taxes 203,300 144,700 400,400
this year equated to £715m.
Tangible Net Worth 4,368,500 3,656,700 34,764,700
Net Current Assets (Liabilities) 3,585,900 2,895,900 2,926,200
Planning
The property benefits from planning permission N/2001/0375/RM, 11th July 2001) has since been Boundaries and Retail Designations Plan 2010’. The
for all Class 1 retail uses. The original planning superseded by Application No: N/2001/0376/F. surrounding lands are proposed for additional Open
consent granted by the Department of Environment A1 retail and leisure users. Any retail development in
for bulky goods retail warehouse units including The subject site and adjoining lands were designated the Craigavon Area will be focused within the new
builder’s supplies and garden centre (Application No. Town Centre as part of the ‘Craigavon Town Centre, town centre development limit.
Investment Comparables
Property Price Yield Date Lease Start Lease Expiry Rent Review Comments
B&Q, Buncrana Road, £17.4 7.4% Q2 2012 20/06/2005 19/06/2030 20/06/2015 Size - 102,400 sq.ft.
Londonderry million Rent - £132,400
Rent review - Upwards
only, 5 yearly reviews to
OMV
B&Q, Greenland Road, £20.5 6.62% Aug 2011 04/10/2004 03/10/2029 04/10/2014 Size - 108,737 sq.ft.
Sheffield million Rent - £1,437,289
Rent review - Upwards
only, 5 yearly reviews to
OMV
For indicative purposes only B&Q, Springlane, £7.75 Size-25,533 sq.ft.
Malvern Wells million 6.22% Dec 2011 Aug 2026 Rent- £510,660
Rent Review - Unknown
Retail Warehousing in Craigavon EPC
Marlborough Retail Park and Rushmere Retail Park
form Craigavon Town Centre and is the dominant retail
warehouse provision for the surrounding catchment.
Marlborough Retail Park – Class 1 Retail Permission
The subject property is currently located within
Marlborough Retail Park which also includes a 86,620
sq ft B&Q and a 113,738 sq ft Tesco Extra with an
associated 8 pump filling station. The Retail Park
benefits from open class retailing consent and rents
range from £12 per sq ft to £12.50 per sq ft.
Rushmere Retail Park – Class 1 Retail Permission
Rushmere Retail Park sits opposite the subject
property and provides over 130,000 sq ft of open
class 1 retail accommodation. The Tenant line-up
includes Matalan, B&M Bargains, Poundstretcher,
Homebase, Currys, Harry Corry, Pets at Home, Argos,
Next and Menary’s. The headline rents are currently in
the region of £17 per sq ft.
Given the rental tone in the adjacent Rushmere Retail
Park, we believe this investment offers good scope for
rental growth.
VAT Proposal
The property has been elected for VAT purposes We have been instructed to seek offers in excess of
and therefore it is expected that the investment sale £11,450,000 (Eleven Million, Four Hundred and
will be considered as a Transfer of a Going Concern Fifty Thousand Pounds) reflecting an attractive net
(TOGC). initial yield of 8.25% excluding VAT and assuming
full purchasers costs at 5.80%.
Further Information Secure Document Library If you require access to the secure document library www.savills.com/bandqcraigavon online or for further information please contact; Ben Turtle James Gulliford Director Director 1st Floor, Lesley Studios 33 Margaret Street 32-36 May Street, Belfast London BT1 4NZ W1G 0JD Tel: 028 9026 8006 Tel: 020 7409 9934 Email: ben.turtle@savills.ie Email: jgulliford@savills.com Dervla Daly Surveyor 1st Floor, Lesley Studios 32-36 May Street, Belfast BT1 4NZ Tel: 028 9026 8009 Email: dervla.daly@savills.ie Savills (NI) Limited for themselves and for the Vendors or Lessors of the property whose agents they are give notice that; i) these particulars are given without responsibility of Savills (NI) Limited or the Vendors or Lessors as a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Savills (NI) Limited cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; iii) no employee of Savills (NI) Limited has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; iv) VAT may be payable on the purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; v) Savills (NI) Limited will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. June 2013.
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