DARLINGTON NORTH RETAIL PARK - A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT IN EXCESS OF 11 YEARS ...
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DARLINGTON NORTH RETAIL PARK A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT IN EXCESS OF 11 YEARS
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
INVESTMENT SUMMARY
» Darlington is a major conurbation in County Durham. » Significant WAULT of 11.7 years (10.1 years » We are instructed to seek offers in excess of
» Over 180,000 people live within the 20 minute drive including breaks). £9,830,000 (Nine Million, Eight Hundred and Thirty
time catchment area of the town. Thousand Pounds), subject to contract and exclusive
» Current rent of £655,527 per annum, averaging of VAT. This reflects a net initial yield of 6.25%,
» Recently constructed, successful ‘convenience’ retail £15.61 per sq ft. assuming purchaser’s costs of 6.69%.
scheme totalling 41,993 sq ft. » 86% of the existing rental income is secured against » An acquisition at the quoting price would see the yield
» Fully let to Aldi, Iceland, Poundland, Jollyes, Card Factory, ‘A’ rated covenants. increase to 6.59% in May 2021 following Aldi’s RPI
Barnardos, Greggs, Subway and KFC. » Unrestricted A1 planning consent. linked rent review, based on forecasts from the Office
» The Aldi lease benefits from 5 yearly RPI linked rent for Budget Responsibility.
» Freehold.
reviews with a collar and cap of 1.0% and 3.0% per
annum compounded.
AR
KS
W H E S S OE
TR
EET
DARLINGTON NORTH RETAIL PARK
ROA
ad
HAUGHTON
D
Ro
HE
NR
YS DARLINGTON LE SKERNE
h
T
ort
DL1 2EE
A167 N
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
ST
ND
WHESS
O E ROAD
MU
ST
OT
ED
BRINKBUR CE
LE
N ROAD
N
Y TE
IA
ANN BO
ALL
S TE NO Newcastle
RRA A19
MI
RRACE
CE W A68 A696 Tynemouth
AY
NEWCASTLE South
STREET
TREET
A69 Shields
ALBERT RO
AD
A69
UPON TYNE Jarrow
NORTH ROAD
WILSON S
FAIRFIELD
A184 A19
Gateshead
ST
ATION ROAD
HO CL
REET PE A1
SURTEES ST TO
E VE
LA
A1231
W ND
S TR
A694
A692 SUNDERLAND AD
Washington ON RO
N
EE T
HT
NO
RT
MCNAY STR
LA
H COTE EET A693 A1018 UG
TERRACE
DARLINGTON NORTH HA
NE
RETAIL PARK A167 A690
A691
WIDDOWFIELD ST A68
Durham
A19
A179
Hartlepool
A1(M)
GREENBANK ROAD
A167 A689
EM
OU A689 A177
NT B6279
RO B6279
VALLEY STREET NORTH
A
CORPORATION ROAD
Billingham Redcar
D
A6072
A688 A68
MIDDLESBROUGH A1053 Brotton
EASON ROAD
A1150 A66 A174
A67 DARLINGTON A171
MCM
A66 A66 Durham
A66 Tees Valley A172
ULLE
International Airport
CHESNUT ST
A19
ROAN
9
27
B6
D
A1
A1 6 7
GLADSTONE STREET
LOCATION & CATCHMENT
Darlington is a large town with a significant conurbation in The retail spending levels are above average for towns of a similar
8
A6 County Durham, located approximately 16 miles west of size in the UK. The level of car ownership in Darlington is around
G GS
T E
RUSSELL S
C
R RI
M&S A1
Middlesbrough and 37 miles south of Newcastle-upon-Tyne. the UK average with 74% of households owning at least one car.
LA
67
SP
FOU
AN
STANHO PE ROAD NORTH
A6 Halfords
EM
8
Queen The town benefits from good road communications, being The information detailed in the table below shows a high
FRE
Street situated 3 miles east of the A1(M), connecting the town to York proportion of people in the ‘Affluent Achievers’, ‘Comfortable
Shopping E AST S T
Centre Sportsdirect and Leeds to the south and Sunderland and Newcastle to the Communities’ and Financially Stretched’ acorn group categories.
ST
WICK north. The town is served by 3 junctions on the A1(M), providing The retailers at Darlington North Retail Park provide
HUN
BRUNS
Cornhill
DEN
Shopping access to the town centre via the A66(M) at Junction 57, the this demographic population with a relevant, suitable and
UGH RD
GATE
TK Maxx
S LAN
Centre
DUKE ST
A68(M) at Junction 58 and A167 at Junction 59. complementary retail offer.
SKINNER
E
B ORO
Darlington is an important railway interchange on the East Coast
LARCHFIELD ST
STANHOPE
TU BWELL ROW
DARLINGTON Main Line. There are regular services to London King’s Cross
Acorn Group Acorn Sub Group % Versus CACI
Base (GB)
E ROW
River Skerne
House B 62
(2hrs 21 mins), Manchester (1 hr 49 mins), Leeds (53 mins), Average
ROAD SOUT
80
A167
of Fraser
Dolphin Edinburgh Waverley (1 hr 55 mins), Newcastle (28 mins) and
HOUND
GATE Centre Affluent Achievers Mature Money +40
FEELHAMS
Borough
Middlesbrough (27 mins).
H
Council B6280
Comfortable Comfortable Seniors +27
RD
RD
E
Darlington benefits from a large catchment population with CACI
AC E
YAR
PLAC
IFFE NR
NG E
CL OAD
NS
Communities
ERR
CO
Steady Neighbourhoods +20
G RA
PARK
estimating that 180,259 people live within a 20 minute drive time DARLINGTON
ET
AV
EASTBOURNE
of Darlington North Retail Park. This extends to 586,400 people
RE
Financially Striving Families RETAIL +18
PARK
RG
NEA
HA
A167
within a 30 minute drive time.
S
H AM
Stretched Poorer Pensioners +32
ROA
D
VICTOR
I A ROA
67
D
NEASHAM ROAD
A1
Sainsbury’s ROAD
Superstore EASTBOURNE
RETAIL CENTRE
DARLINGTON
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
SITUATION
The property is situated 1 mile north of
Darlington town centre and is prominently
positioned at the junction of Albert Road and the
A167 (North Road) which links the town centre
with the A1(M) to the north and the A66 to the
south. The scheme is also within 100 metres of
North Road railway station.
The site is accessed via a ‘T’ junction on Albert
Road which can be accessed from both eastwards
and westwards carriageways. There is a further
pedestrian entrance to the park via steps to the
SS
CRO
WILLIAM
north west corner of the site.
RD
E LL
DE
NM
WHESS O E RO
YN
AR
KS
ME
TR
EET
RETAIL WAREHOUSING HAUGHTON
d
AD
HE
Roa
NR
YS
LE SKERNE
T
IN DARLINGTON
A167 North
ST
8
A6
ND
WHES
PROMIS state that retail warehouse provision SO E ROAD
MU
OT
ED
BRINKBUR
LE
N ROAD
BO
Y TE
ANN
in Darlington stands at approximately 537,000 S TE
RRA
N OM
RRACE
C E IW
AY
STREET
TREET
sq ft, which is significantly below the average of
COCKERTON
ALBERT RO
AD
WILSON S
NORTH ROAD
FAIRFIELD
876,000 sq ft for towns of a similar size in the UK.
HO
CL
ES STREET EV
SURTE
P
EL
ET
AN
D
OW
ON ROAD
B6279 MCNAY STR
S TR
E ET HT
UG
N
E ET
HA
• DARLINGTON RETAIL PARK
LA
OWDEN
NE
DARLINGTON NORTH
This 154,056 sq ft scheme, owned by LaSalle RETAIL PARK
IM, is located approximately 2 miles to the east
of the town centre on Yarm Road. Occupiers
GREENBANK ROAD
EM
OU
NT
include DFS, Currys PC World, TK Maxx, The
VALLEY STREET NORTH
RO B6279 B6279
CORPORATION ROAD A
D
DARLINGTON
Range, Wren, Harveys, Pets at Home, Furniture MEMORIAL
EASON ROAD
HOSPITAL
Village, ScS, Carpetright, Home Bargains, Costa
MCM
A 68
and KFC. The park has open A1 (non-food)
U
LLEN
CHESNUT ST
79
ROA
2
consent and also benefits from being within B6
A1 6 7
D
close proximity to an 85,000 sq ft Morrisons GLADSTONE STREET
foodstore and an 80,000 sq ft B&Q, both at 8
A6
GGS
T CE
RUSSELL S
Morton Park. Rents on the retail units range A1
R RI
A
M&S 67
PL
STANHO PE ROAD NORTH
FOU
S
A6
AN
Halfords
between £11.25 per sq ft and £18.70 per sq ft. 8
EEM
Queen
FR
Street
Shopping EAST ST
Centre
• NEASHAM ROAD RETAIL CENTRE Sportsdirect
ICK ST
HUN
BRUNSW
Cornhill
G H RD
DENS
GATE
Shopping
This retail scheme is situated half a mile east of
TK Maxx
B 6 2 80
DUKE ST Centre
SKINNER
L
U
ANE
BO RO
Darlington town centre adjacent to Darlington
LARCHFIELD ST
TUB WEL L ROW
STANHOPE
DARLINGTON
W
railway station. It has a predominantly Open
E RO
River Skerne
House B62
A 16 7
80
ROAD SOUT
of Fraser
Dolphin
A1 (including Food) planning consent and is HOUND G
ATE Centre
Borough
B6280
E R R A CE
Council
RD
ACE
let to Matalan, Poundworld, Farmfoods, and
H
RD
I FFE YAR
SCL DARLINGTON
NG E
N
PL
N ROA
CO D
PARK
VE T
GR A
Ladbrokes with the 10,000 sq ft Asda having EASTBOURNE RETAIL PARK
REA
RG
NEA
HA
A167
been sold off long leasehold. Rents range SHA
MR
between £10.00 per sq ft and £13.00 per sq ft
OAD
VICTOR
IA ROA
67
D
NEASHAM ROAD
A1
Sainsbury’s ROAD YARN
EASTBOURNE RO
on the retail units. Superstore
DARLINGTON RETAIL CENTRE
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
DESCRIPTION
The property comprises a recently developed retail The majority of units are of steel portal frame Internally, all the units are fitted out to the individual located to the front of the units. Approximately
warehouse park extending to 41,993 sq ft GIA, construction with a mixture of brick and profile steel tenants’ specification. 157 parking spaces are provided, giving a good parking
arranged across 9 units. The scheme was completed sheeting elevations. Two of the units have full brick The park is accessed via a ‘T’ junction off Albert Road, ratio of 1: 267 sq ft GIA.
and opened in July 2016 and is fully let to Aldi, Iceland, elevations. All units benefit from substantial glazing at which runs along the northern boundary of the site. The site area for the property is approximately
Poundland, Jollyes, Card Factory, Barnardo’s and A3 the store entrances and all benefit from predominant There is also a separate pedestrian access via steps 1.40 hectares (3.45 acres), giving a low site cover
operators Greggs, Subway and KFC. The units at the and highly visible retailer signage. at the north west corner of the site. The car park is of 28%.
property range between 1,011 sq ft and 16,718 sq ft. tarmacadam surfaced with all of the parking being
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
TENURE PLANNING
The site delineated in red above is held freehold. Please note The retail units benefit from an unrestricted A1 planning consent
that this red line is provided for indicative purposes only. and the drive-thru restaurant has A3/A5 planning consent.
Further information can be provided upon request.
ENVIRONMENTAL REPORTS
EPC’S
All environmental reports produced prior to the property’s
construction will be fully assignable to the purchaser. EPCs are available upon request.
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
TENANCY SCHEDULE
The property benefits from a very attractive WAULT of 11.7 years to lease expiries (10.1 years including tenant break options).
UNIT TENANT GIA LEASE LEASE TENANT NEXT RENT RENT RENT COMMENTS
(SQ FT) START EXPIRY BREAK REVIEW (PA) (PSF)
1 Subway Realty Ltd 1,011 28/06/2016 27/06/2031 28/06/2021 28/06/2021 £20,000 £19.78 Further break option in 2026. £20,000 penalty if the tenant
breaks in 2021.
2 Greggs plc 1,394 28/06/2016 27/06/2026 28/06/2021 28/06/2021 £28,000 £20.09 £14,000 plus VAT break penalty.
3 Leonard F Jollye (Brookmans 5,005 12/08/2016 11/08/2026 - 12/08/2021 £75,000 £14.99
Park) Ltd (t/a Jollyes)
4 Poundland Ltd 5,801 01/08/2016 31/07/2026 - 01/08/2021 £92,480 £15.94
5A Barnardo’s 1,306 14/07/2016 13/07/2026 - 14/07/2021 £23,220 £17.78
5B Sportswift Ltd 1,225 21/06/2016 20/06/2026 21/06/2021 21/06/2021 £21,600 £17.63 Service charge capped at £2,600, indexed by RPI.
(t/a Card Factory)
6 Iceland Foods Ltd 6,910 22/06/2016 21/06/2031 - 22/06/2021 £103,605 £14.99
7 Aldi Stores Ltd 16,718 23/05/2016 22/05/2031 - 23/05/2021 £229,693 £13.74 Rent review - 5 yearly to RPI (1.0% and 3.0% collar and cap)
compounded annually.
8 Fieldrose Ltd (t/a KFC) 2,623 21/06/2016 20/06/2036 21/06/2026 21/06/2021 £61,929 £23.61
Total 41,993 £655,527
RPI INDEXATION
The Aldi lease benefits from five yearly upwards only rent reviews, linked to RPI, with collars
and caps of 1.0% and 3.0% per annum compounded.
We set out below RPI information based on actual and forecasted RPI figures:
YEAR RPI FIGURE ALDI CAP RENT
Q2 2017 3.6% 3.0% £236,584
Q2 2018 3.8%* 3.0% £243,681
Q2 2019 3.0%* 3.0% £250,991
*Forecast by the Office for Budget Responsibility.
Q2 2020 2.9%* 3.0% £258,270
Based on the above, the Aldi rent will increase to
Q2 2021 2.9%* 3.0% £265,760
£265,760 per annum at the May 2021 rent review.
DARLINGTON NORTH RETAIL PARK
DARLINGTON
DL1 2EE
A RECENTLY DEVELOPED RETAIL SCHEME WITH RPI LINKED RENTAL UPLIFTS AND SIGNIFICANT WAULT
COVENANT STRENGTH
73% of the rental income is secured against ‘Minimum’ risk covenants, as described by Dun and Bradstreet, whilst 35% is subject to rental uplifts in line with RPI.
ALDI STORES LIMITED ICELAND FOODS LIMITED SPORTSWIFT LIMITED (T/A CARD FACTORY)
D&B rating of 5A 1 representing a ‘Minimum’ risk of business failure. D&B rating of 5A 1 representing a ‘Minimum’ risk of business failure. D&B rating of 5A 1 representing a ‘Minimum’ risk of business failure.
31/12/2016 31/12/2015 24/03/2017 25/03/2016 31/01/2017 31/01/2016
Sales Turnover £8,744,385,000 £7,705,140,000 Sales Turnover £2,770,500,000 £2,658,332,000 Sales Turnover £379,540,000 £362,226,000
Pre-Tax Profit £214,795,000 £212,621,000 Pre-Tax Profit £67,300,000 £58,172,000 Pre-Tax Profit £81,718,000 £92,210,000
Tangible Net Worth £2,321,983,000 £2,073,988,000 Tangible Net Worth £784,100,000 £740,354,000 Tangible Net Worth £62,010,000 £80,967,000
LEONARD F JOLLYE (BROOKMANS PARK) LIMITED GREGGS PLC BARNARDO’S
D&B rating of 2A 1 representing a ‘Minimum’ risk of business failure. D&B rating of 5A 1 representing a ‘Minimum’ risk of business failure. D&B rating of 2A 1 representing a ‘Minimum’ risk of business failure.
31/05/2017 31/05/2016 30/12/2017 31/12/2016 31/03/2017 31/03/2016
Sales Turnover £65,354,857 £64,366,440 Sales Turnover £960,005,000 £894,195,000 Sales Turnover £218,348,000 £298,660,000
Pre-Tax Profit £4,548,797 £5,815,022 Pre-Tax Profit £71,945,000 £75,142,000 Pre-Tax Profit £348,000 £4,467,000
Tangible Net Worth £4,396,229 £3,659,866 Tangible Net Worth £289,753,000 £250,406,000 Tangible Net Worth £2,153,000 £14,844,000
SUBWAY REALTY LIMITED FIELDROSE LIMITED (T/A KFC) POUNDLAND LIMITED
D&B rating of 2A 2 representing a ‘Lower than Average’ risk of business failure. D&B rating of 2A 2 representing a ‘Lower than Average’ risk of business failure. D&B rating of O3 representing a ‘Higher than Average’ risk of business failure.
31/12/2016 31/12/2015 30/09/2017 30/09/2016 27/03/2016 29/03/2015
Sales Turnover £33,266,345 £31,962,917 Sales Turnover £58,482,666 £53,731,342 Sales Turnover £1,214,818,000 £1,111,526,000
Pre-Tax Profit £1,385,920 £1,468,208 Pre-Tax Profit -£252,532 £1,333,630 Pre-Tax Profit £34,653,,000 £45,922,,000
Tangible Net Worth £2,933,924 £1,826,816 Tangible Net Worth £5,232,536 £4,707,230 Tangible Net Worth £20,520,000 £93,866,000
DARLINGTON NORTH
RETAIL PARK
SERVICE CHARGE
A low service charge budget of £40,750 (£0.97 per sq ft).There is a service charge cap in the Card Factory
lease but there is no shortfall. The latest service charge accounts are available upon request.
VAT
The property has been elected for VAT, however, it is anticipated that
the transaction will be treated as a “Transfer of a Going Concern”.
PROPOSAL
We are instructed to seek offers in excess of £9,830,000 (Nine Million, Eight Hundred
and Thirty Thousand Pounds) subject to contract and exclusive of VAT.
This reflects a net initial yield of 6.25%, assuming purchaser’s costs of 6.69%.
An acquisition at the quoting price would see the yield increase to 6.59% in May 2021 following
Aldi’s RPI linked rent review, based on the Office for Budget Responsibility’s forecast.
Wilkinson Williams LLP
Heathcoat House, 20 Savile Row, London, W1S 3PR
Miles Marten Jack Lloyd
T: 020 7317 3777 T: 020 7317 3796
M: 07770 748 290 M: 07747 883 231
E: m.marten@wilkinsonwilliams.co.uk E: j.lloyd@wilkinsonwilliams.co.uk
www.wilkinsonwilliams.co.uk
MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information
contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs
appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the
property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning,
building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and
although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. Design: CommandD www.commandHQ.co.uk July 2018.
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