BEACH BOULEVARD RETAIL PARK ABERDEEN AB24 5EF - Offers over £48,160,000. Net Initial Yield 8% - Sheridan ...
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FOR SALE PRIME RETAIL PARK INVESTMENT
BEACH BOULEVARD RETAIL PARK ABERDEEN AB24 5EF
AVAILABLE
Offers over £48,160,000. Net Initial Yield 8%
BEACH BOULEVARD RETAIL PARK
SUMMARY
• Prime Open Class 1 Consent Retail Warehouse Park in Aberdeen • Sits adjacent to Queens Links Leisure Park creating a critical mass of
416,206 sq ft of retail and leisure space
• Total rent roll is £4,114,174 per annum (includes a rent, rates and
service charge guarantee over Unit 8) • Strong tenant line up with larger unit retail rents pegged at sensible
levels between £16.50 and £22.40 per sq ft Opportunity to acquire The retail park benefits WAULT to expiry
• Dominant Park extending to approximately 224,277 sq ft
prime retail park investment from Class 1 Retail consent 10.23 years
• Potential to add value by undertaking various asset management
• Currently 95.5% let by floor area in Aberdeen
initiatives including upsizing tenants, developing pods/drive-thru’s
• Anchored by an 85,178 sq ft Asda Supermarket on the main car park and new lettings
Supermarket income is 40% of total rent, with 14 years unexpired
91%
•
We are instructed to seek offers in excess of £48,160,000 exclusive
• Strong tenant line up including Asda, Aldi, Iceland, Home Bargains,
of VAT, for our client’s heritable interest subject to and with the
Pets at Home and Dunelm amongst others
benefit of the existing leases. A purchase at this level would reflect Future asset management Strong tenant line-up at 91% of tenants hold
• WAULT of 10.23 years to expiry and 10.15 years to break an attractive Net Initial Yield of 8% after full purchaser’s costs. opportunities affordable rental levels 5A1 or 5A2 D&B rating
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
Inverness Peterhead LOCATION
A952
A95
Aberdeen is Scotland’s third largest City and the administrative centre
A82
A96
A90
for north east Scotland.
The City is considered the oil capital of Europe,
ABERDEEN
There are two universities in Aberdeen, these are
A9 being the major centre for North Sea Oil related the University of Aberdeen and Robert Gordon
A93 activities. The population of Aberdeen City is in the University with these two institutions being the two
order of 223,000 with the regional population of largest employers outside of the oil industry.
A86
circa 446,660.
Fort
A93 Located some 125 miles north of Edinburgh, 145
A90
William Aberdeen is one of the most prosperous cities in miles north east of Glasgow and 100 miles to the
A9 Montrose the UK and is consistently rated highly for its east of Inverness, Aberdeen benefits from excellent
quality of life, given its status as a global centre of communication links. By road, the A90 links
A82 A92 excellence in both the oil and renewable industry Aberdeen to the national motorway network,
Forfar
sectors. Aberdeen has 4% of Scotland’s total providing access to Glasgow and Edinburgh, whilst
Arbroath
A9 Dundee population and this is projected to increase to in the A96 provides access to Inverness and the north
excess of 271,000 people by 2035, an increase of west of Scotland. The Aberdeen Western Peripheral
Perth A90 20%. It is also home to 28 of Scotland’s top 100 Route, which provides a new city by-pass, was fully
A85
St Andrews companies and has average earnings that are 21% opened in February 2019.
A82 A84 A9
above the Scottish national average.
A92
M90
Stirling M9 Dunfermline Kircaldy
*SOURCE — Aberdeen City Council / ONS — Annual Survey of Hours and Earnings
Greenock Falkirk
GLASGOW
Dunoon
M9
EDINBURGH
M8 Livingston 58.3%
Paisley Motherwell Berwick-
M77 M74 East
A7 upon-Tweed
Aberdeen average earnings 250,000 people within 58.3% of total 446,660 people within
Kilbride
21% above Scottish average* 20 minute drive time* households are ABC1* wider Aberdeen catchment*
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
Milden
B997
Cothal B999
A90
Potterton
RAL ROUTE
PERIPHE
TERN A90
N WES
DEE
ER
AB
Blackdog
B999
B997 A92
A90 Mundurno MURCAR
LINKS
GOLF CLUB
ABERDEEN
AIRPORT
Cloverhill
A96 EXISTING ABERDEEN
EXHIBITION &
A947 Bridge CONFERENCE CENTRE
of Don
A92 ROYAL
B997
R O U TE
NEW ABERDEEN ABERDEEN
EXHIBITION & Persley GOLF CLUB
CONFERENCE CENTRE
A956
RA L
A96
PHE
Bucksburn
E RI
Old Aberdeen
NP
SITUATION
ER
ST
UNIVERSITY
WE
OF ABERDEEN
EN
Beach Boulevard Retail Park benefits from being strategically located
DE
ER
AB
Kingswells A96 A956 BEACH BOULEVARD in the city centre.
RETAIL PARK
A90
A944 It is situated to the east of the city centre, close to Within the Aberdeen City area, 6,242 new homes
A944 B983 the waterfront and at the junction of Beach are proposed over the next 5 years. As part of this
A944
B9119
A92
ABERDEEN Boulevard and Links Road. It sits opposite the
popular Queens Links Beach Boulevard Leisure
expansion, Stewart Milne homes have secured
planning consent for the development of
B9119
Centre and the surrounding area is a mix of approximately 350 new homes on the site of the
commercial and residential property. former Aberdeen Football Club stadium site at
Pittodrie, to the north of Boulevard Retail Park.
A956
Bridge
A93 of Dee
Cults
A92
Bieldside Strategically located within Surrounding mix of commercial 6,242 new residential units projected
Banchory
Aberdeen City Centre and residential property for Aberdeen City area in next 5 years*
*SOURCE — Aberdeen City Council – Housing Land Audit 2019
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
DESCRIPTION
224,277 sq ft Class 1 Retail planning consent Boulevard Retail Park is the largest retail park by floor space in Aberdeen, extending to 224,277 sq ft.
The Park benefits from Class 1 consent across all units, dedicated servicing and 961 car parking spaces, providing a generous ratio of 4.27 spaces per 1,000 sq ft.
The main terrace is of portal steel frame construction and is sub-divided into seven units. There are two other terraces situated perpendicular to the main terrace.
The terrace to the north is sub-divided into four units that include a foodstore. The terrace to the south is sub-divided into two units.
961 car parking spaces Dedicated service yards
AVAIL
LE AB
AVAILABLE
STORAGE
BEACH BOULEVARD
COTTON STREET
961 car pa
rking spac
es
LINKS RO
AD
O
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
ABERDEEN - RETAIL WAREHOUSE PROVISION
ABERDEEN Bridge of Don
In addition to Beach Boulevard Retail Park, Aberdeen has the following retail warehouse schemes, whose AIRPORT
Retail Park 2
locations are shown on the plan opposite:
B997 A90
1. Berryden Retail Park / Centrepoint Retail Park
Although under separate ownership, these two parks lie immediately adjacent to each other and are A947
effectively linked. Berryden comprises approximately 74,293 sq ft of accommodation let to Next, Argos,
A92
Mothercare and Currys. Top rents stand at approximately £23.50 per sq ft.
A96 Bridge
Centrepoint, which extends to approximately 95,500 sq ft is anchored by a Sainsbury’s foodstore and also of Don
has units let to Mecca Bingo, Poundland, Harry Corry, Furniture Mountain and Matalan. The headline rent A956
stands at approximately £17.75 per sq ft.
2. Bridge of Don Retail Park A96
Bridge of Don comprises approximately 81,921 sq ft of retail warehousing accommodation, anchored by
Kittybrewster
a 40,000 sq ft B&Q. Additional tenants include Pets at Home, Marks & Spencer plc, Carpetright, Home A92 3 Retail Park
Bargains and Costa. Headline rents are approximately £18.50 per sq ft.
Berryden Retail Park / A956
Centrepoint Retail Park 1 A96 BEACH BOULEVARD
3. Kittybrewster Retail Park RETAIL PARK
Kittybrewster extends to approximately 154,078 sq ft of retail warehouse accommodation across A944
13 units. Occupiers within the park are Carpetright, Halfords, Oak Furnitureland, Tapi, SCS, A944
TK Maxx, B&M, Harveys, Sports Direct, DFS, Pure Gym and McDonald’s. Headline rents on the park are
approximately £29.95 per sq ft.
ABERDEEN 5
4. Garthdee Retail Park
A92 Union Square
Garthdee comprises approximately 35,000 sq ft of retail warehouse accommodation let to Boots and
Currys, however there is also a 100,000 sq ft B&Q that lies adjacent to the site in addition to large format A93 B9077
Asda and Sainsbury’s foodstores. Headline rents at Garthdee stand at approximately £30 per sq ft.
Bridge
5. Union Square of Dee
Garthdee
A956
To the rear of Hammerson’s Union Square Shopping Centre development in the city centre, there are a Retail Park 4
number of larger retail warehouse style units fronting the car park. These are let to predominantly fashion
tenants, including Next, Outfit, M&S, Superdry and JD Sports. Headline rents stand at approximately
B9077
£35 per sq ft. However, it should be noted that there are currently proposals to further extend the A92
shopping centre which would result in a loss of some, if not all, of the current retail warehouse units.
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
TENANCIES
UNIT TENANT FASCIA SIZE (SQ FT) LEASE START NEXT REVIEW LEASE END BREAKS PASSING RENT RENTAL RATE COMMENTS
1 Asda Stores Limited Asda 85,178 26/05/2003 28/05/2018 25/05/2033 - £1,626,900 £19.10 1
1A Costa Limited Costa 2,220 25/03/2019 25/03/2024 24/03/2034 24/03/2029 £65,000 £29.28 2
1B Pets at Home Limited Pets at Home 7,524 08/03/2004 08/03/2019 07/03/2024 - £138,750 £18.44 3
1C Under Offer Card Factory 1,500 - - - - £45,000 £30.00 4
1D To Let - Storage Vacant 1,528 - - - - £0 £0.00
2 Dave Whelan Sports Limited DW Sports 22,543 09/03/2004 09/03/2024 27/02/2029 - £521,376 £23.13 5
3 Iceland Foods Limited Iceland 9,992 09/07/2012 09/07/2022 08/07/2027 - £174,860 £17.50 6
4 Wren Kitchens Limited Wren Kitchens 10,095 19/10/2010 - 18/10/2020 - £174,598 £17.30
5 TJ Morris Limited Home Bargains 10,000 25/10/2010 25/10/2020 24/10/2025 - £165,512 £16.55 7
6&7 Smyths Toys UK Limited Smyths Toys 20,108 02/06/2014 02/06/2019 02/06/2029 *02/06/2025 £311,674 £15.50 8
8 To Let N/A 8,446 - - - - £140,000 £16.58 9
9 & 10 Aldi Stores Limited Aldi 14,989 09/08/2007 09/08/2022 09/08/2037 - £247,319 £16.50 10
11 Pagazzi Lighting Limited Pagazzi 10,034 23/09/2003 23/09/2023 22/09/2028 - £171,205 £17.06 11
12 & 13 Dunelm (Soft Furnishings) Limited Dunelm 20,120 02/07/2007 02/07/2022 01/07/2027 - £331,980 £16.50 12
224,277 £4,114,174
1. Review in negotiations. OMV review basis. Upward Only 6. Reviewed to OMV. Upwards Only. 9. Rent, rates & service charge guarantee x 3 years. 12. Reviewed to lower of OMV or rent multiplied by 1.1314. Upwards Only. Tenant
2. Reviewed to lower of OMV or 3% pa compounded. Upwards Only. 7. Reviewed to lower of OMV or 2% pa compounded. Upwards Only. Personal 10. Reviewed to RPI (1%-2.5% c&c). Lease regear in legals on stated terms. Term to has an option to extend the lease for a further period of 10 years from
3. Reviewed to OMV and Upwards Only. Notice served. concession granted to TJ Morris Limited not to let any unit to a company trading be extended by 10 years. Tenant has an option to extend the lease for a further 02/07/2027 on giving 6 months notice.
4. In legals with completion imminent as a “B&M” store. period of 10 years from 09/08/2037 on giving 6 months notice.
5. Fixed rental uplift to £589,885 pa at next review. Stated GIA of 22,500 sq ft in lease. 8. Reviewed to lower of OMV or 2.5% pa compounded. 11. Reviewed to OMV. Upwards Only.
Upwards Only. *In negotiations to extract the break.
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
INCOME ANALYSIS % OF INCOME BY TENANT CURRENT INCOME
UNEXPIRED TERM PROFILE
Dunelm
WAULT to expiry 10.23 years 8.07%
WAULT to break 10.15 years Pagazzi
4.16%
0-5 years
Total annual rental income Aldi 8%
of £4,114,174. 6.01% Asda
39.54%
Unit 8 Guarantee
3.40%
10+ years
Smyths Toys
47.7%
7.58% 5-10 years
44.3%
Home Bargains
4.02%
Wren Kitchens
4.24% Costa
Iceland 1.58%
4.25% Pets at Home
DW Sports Card Factory 3.37%
12.67% 1.09%
COVENANT INFORMATION
UNIT TENANT D&B RATING YEAR END SALES TURNOVER (000s) PRE-TAX PROFITS (000s) NET WORTH (000s)
1 Asda Stores 5A1 31/12/2018 £22,842,000 £484,800 £5,471,500
1A Costa Limited 5A1 01/03/2018 £951,684 £105,215 £521,738
1B Pets at Home Limited 5A1 29/03/2018 £804,848 £53,922 £690,294
1C Sportswift Limited (under offer) 4A1 31/01/2019 £417,167 £66,206 £24,056
2 Dave Whelan Sports Limited 5A2 31/03/2018 £222,961 -£8,925 £42,100
3 Iceland Foods plc 5A2 29/03/2019 £3,022,800 £31,200 £792,900
4 The West Retail Group Limited 5A2 31/12/2018 £701,148 £38,340 £72,385
5 TJ Morris Limited 5A1 30/06/2018 £2,143,267 £202,700 £911,755
6&7 Smyths Toys UK Limited 5A1 30/12/2018 £581,570 £14,532 £43,499
9 & 10 Aldi Stores Limited 5A1 31/12/2018 £11,334,428 £182,151 £2,665,996
11 Pagazzi Lighting Limited**** A2 31/03/2018 - - £620
12 & 13 Dunelm (Soft Furnishings) Limited 5A1 30/06/2018 £1,050,100 £91,500 £121,100
**** NO TURNOVER OR PROFIT FIGURES SUBMITTED IN THE 2018 ACCOUNTS
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
TENURE
The property is held on a heritable title (Scottish equivalent of English freehold).
PLANNING
Beach Boulevard Retail Park benefits from unrestricted Class 1 retail consent
across the entire park. Further information can be provided on request.
EPC’s
Copies of all EPC’s are available on request.
LEGAL COSTS
Each party will be responsible for their own legal costs incurred in connection
with the transaction.
VAT
Our clients have elected to waive exemption for VAT and accordingly VAT will be
payable on the purchase price, although we anticipate the sale will be dealt with
by way of a Transfer of a Going Concern (TOGC).
PROPOSAL
We are instructed to seek offers in excess of £48,160,000 (FORTY EIGHT
MILLION ONE HUNDRED AND SIXTY THOUSAND POUNDS STERLING),
exclusive of VAT for the heritable interest subject to and with the benefit of the
existing leases.
A purchase at this level would reflect an attractive Net Initial Yield of 8% after
allowing for full purchasers costs.
BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT
BEACH BOULEVARD RETAIL PARK ABERDEEN AB24 5EF
FURTHER INFORMATION
Please contact the joint selling agents.
Alasdair Coates sheridanproperty.co.uk Stewart Sheridan
t: 07887 781298 t: 07740 940898
e: alasdair@coatesandco.net e: stewart@sheridanproperty.co.uk
Mark Dawson Cathal Keane
t: 07826 916559 t: 07808 627224
e: mark@coatesandco.net e: cathal@sheridanproperty.co.uk
Sheridan Property Consultants/Coates & Co for themselves and for the vendors or lessors of this property whose agents they are given notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract;
(ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and any intending 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 correctness of each
of them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants/Coates & Co has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate. October 2019. Alamo Design 01924 471114.You can also read
