FOR SALE - Open A1 Food Retail Warehouse Investment - Significant Asset Management Potential
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INVESTMENT OPPORTUNITY Wickes FOR SALE Benton Park Road, South Gosforth, Newcastle upon Tyne, NE7 7LX Open A1 Food Retail Warehouse Investment - Significant Asset Management Potential
INVESTMENT SUMMARY
• South Gosforth is a popular and affluent suburb • The property occupies a circa 2.1 acre site with
of Newcastle upon Tyne. extensive frontage onto Benton Park Road (A191).
• Modern, purpose built retail warehouse totalling • Planning permission in place for open A1 food retail,
31,434 sq ft with dedicated loading and storage yards following 2014 widening of planning consent.
and 126 space surface car park.
• Significant asset management potential.
• Single let to Wickes Building Supplies Limited on a
• Offers in excess of £4,144,000 which reflects an
new 3 year lease from 20th January 2016 (c. 2.5 years
attractive Net Initial Yield of 8.70% after standard
unexpired) at a passing rent of £384,000 per annum
purchaser’s costs at 6.55%.
(£12.22 psf).
BLYTH
Drive Time
Mor
LOCATION
pet
A192
h
5 Minute 10 Minute 15 Minute NE7 7LX
A7068
Manor Walks
Shopping & Leisure
CRAMLINGTON
A1172
Seaton Sluice
A189
A1
Hospital
O
tte A1
90 5 Minute
rb
Situation
A1
ur
n 10 Minute
92
Ponteland
A1
A6
Newcastle
9
9
96 Whitley Bay
A18
ABERDEEN
International Airport
The15property
Minute
Scotland
A1056
A1
91
is situated 2.5 miles north east of
Killingworth
NE7
Newcastle7LX city centre on Benton Park Road (A191)
A1
in South Gosforth, which is one of the city’s most
GLASGOW
1
9
19
EDINBURGH
Tynemouth
A18
A
Kingston
A1 Silverlink
Park Retail GOSFORTH
M6
CARLISLE A69 A10
58 popular and affluent suburbs. Benton Park Road
NEWCASTLE South
A66
A19 Hexham A69
Gosforth
A105
8
North Shields is in close proximity to the popular residential
A1(M)
LEEDS
YORK
Wallsend
South Shields
suburbs of Gosforth and High Heaton and is a
TYNE TUNNEL
MANCHESTER
LIVERPOOL
M1
M1
SHEFFIELD NEWCASTLE A19
3
18
main arterial route between Newcastle city centre
A10
M6 M1
A1(M)
Central Station Jarrow
and the commuter district of Longbenton.
4
BIRMINGHAM
England A18
RIVER
Wales
M40
M1
A1(M)
M11
TYNE The surrounding area is primarily residential in
GATESHEAD
nature with Promis identifying Gosforth as a
Metrocentre
BRISTOL M4 LONDON A184
4
4
69
18
A
pocket of affluence on Newcastle’s northern fringe.
A
A19
)
Nearby occupiers include Majestic Wine and
(M
A1
94
2
69 Sainsbury’s Local.
A1
A
t
et
ns
Co A1231 South Gosforth and Longbenton Metro stations
Location Washington SUNDERLAND are both within 10 minutes walking distance
A1(M)
Teesside
Durham
providing rail links to Newcastle city centre and
90
& South
A6
Newcastle upon Tyne is lies on the north bank of the and 30 minutes
& South
between Newcastle Central Station
the rest of the North East.
River Tyne and is the regional capital of the North East and London King’s Cross.
of England. The city itself has a resident population of
In addition to the over ground rail connections,
280,200 which when combined with Gateshead, North
Newcastle is the only city in England, (outside of Airport Bank F oot Fawdon Regent Centre Longbenton Benton
Northumberland
Park
West
Monkseaton
Tyneside, South Tyneside and Sunderland forms the Callerton Kingston Wansbeck South Gosforth
Four Lane Ends Palmersville Shiremoor Monkseaton
London) to benefit from an underground rail network. Parkway Park Road Whitley Bay
Ilford Road
Tyne and Wear conurbation with a population of some West Jesmond Cullercoats
The Tyne & Wear Metro is run by Nexus and totals
Jesmond
Haymarket Chillingham Meadow
1.1 million (2011 Census).
Tynemouth
Newcastle City Centre
Monument Road Wallsend Howdon Well
St James
60 stations linked into the National Rail network via Central Station
Manors Byker Walkergate Hadrian Road Percy Main
River Tyne
North Shields
Gateshead Felling Pelaw Jarrow Simonside Chichester
Newcastle is located 270 miles north of London, 103 Central Station and connecting the wider conurbation Gateshead
Stadium
Heworth
Hebburn Bede
Brockley Whins
Tyne Dock South
Shields
miles north of Leeds and 120 miles south of Edinburgh, including Sunderland to the South East, Newcastle Fellgate East Boldon Seaburn
Stadium
of Light
and benefits from excellent road communications. The Airport to the North West and all major suburbs.
St Peter’s
River Wear
Sunderland City Centre
Sunderland
A1 (M) and A19 provide rapid access to both the north
Pallion University
Newcastle International Airport is located 6 miles
South Hylton Millfield Park Lane
Main Bus Interchange
and south, and the A69 links Newcastle with Cumbria Rail Interchange
north-west of the city centre and services 4.6 million Ferry (only A+B+C tick ets valid)
and the M6 to the west. Airport
passengers annually as well as flying to 80 destinations Park and Ride
The city has excellent transport links with the East directly including London, New York, Paris, Rome,
Coast mainline providing a journey time of 2 hours Berlin and Dubai.
CATCHMENT – SOUTH GOSFORTH
Very Low
Weekly Spend per A1056
Household on Comparison Goods
Low
B1505 Medium
North Gosforth
Killingworth High
Stephenson Industrial Est Very high
East Brunton Palmersville Catchment - South Gosforth
Forest Hall
B1318 A189 Wickes
A191
Grange Park Longbenton
South
Gosforth
High Heaton
A188
A1058
West Jesmond
Heaton
A391
Spital Tongues Jesmond
Population Weekly Food Spend
43,815 £2,319,058
within a 5 minute drive time. spend within a 5 minute drive time.
196,360 £10,074,908
within a 10 minute drive time. spend within a 10 minute drive time.
Weekly Retail Spend
£2,667,341
spend within a 5 minute drive time.
£11,018,379
spend within a 10 minute drive time.
DESCRIPTION
The property comprises a modern purpose built retail
warehouse with dedicated loading yard, storage
yard and 126 space surface carpark. The unit was
constructed in 1989 and occupies a circa 2.1 acre
(0.84 ha) site with extensive frontage to the A191
Benton Park Road.
The title includes an unused and overgrown section
of land to the west. This portion of the site has
been subject to an approach by the Local Council
who would like to acquire part of it with a view to
widening Killingworth Road.
Indicative title boundary
ACCOMMODATION
Ground Floor First Floor
Retail Warehouse ancillary Total
2,782.74 sq m 137.56 sq m 2,920.3 sq m
29,953 sq ft 1,481 sq ft 31,434 sq ft
Parking provision:
Standard Disabled
spaces spaces
123 3
OPEN A1 FOOD RETAIL PLANNING CONSENT
TENANCY
Let to Wickes Building Supplies Limited on a 3 year FRI lease Wickes has a
from 20 January 2016 and thereby providing an unexpired
term of 2.5 years at £384,000 per annum (£12.22psf). The lease
D&B rating of 5A1
is excluded from the “Security of Tenure” provisions of the representing a
Landlord and Tenant Act 1954.
minimal risk
of failure
Covenant Summary
Wickes Building Supplies Ltd – Company Number (01840419)
Turnover Pre Tax Profit Shareholder’s Funds
Year
(£’000) (£’000) (£’000)
27.12.2014 £1,039,986 £68,731 £364,680
28.12.2013 £972,038 £49,441 £309,079
29.12.2012 £976,136 £55,770 £269,214
Wickes opened its first store in Manchester in 1972 and now is
one of the UK’s leading DIY home improvements and building
supplies retailers with a portfolio of circa 230 stores. The
business was acquired by Travis Perkins plc and is now one of
20 brands within the Travis Perkins Group. Wickes has a D&B
rating of 5A1 representing a minimal risk of failure.
Planning
The property benefits from Open A1 Food Retail consent.
Planning consent was granted under application reference
DET/01/1042/89 which was recently varied by application
reference 1989/1042/04/RVC.
Tenure
Freehold
We set out below recent transactional evidence nationwide
Lease Expiry
Address Tenant Date Size Price Yield Rent Rent psf
(WAULT)
Dec 2020
Cardiff Wickes 2016 25,000 sq ft £3,000,000 7.00% £225,000 £9.00
(c. 4.5 years)
May 2036
Grimsby Wickes 2016 21,500 sq ft £4,000,000 6.68% £284,875 £13.25
(c. 20 years)
Apr 2033
Chatham Wickes 2016 26,357 sq ft £6,900,000 5.60% £415,000 £15.74
(c. 17.3 years)
March 2029
Bracknell Wickes 2016 40,205 sq ft £14,940,000 5.73% £904,545 £22.49
(c. 13 years)
March 2021
Stirling Wickes 2015 28,446 sq ft £4,830,000 7.93% £406,125 £14.28
(c. 6 years)
B&M/ £8.01 / 2021 / 2039
Darlington 2015 29,073 sq ft £4,000,000 6.77% £286,641
McDonalds £21.02 (c. 12.4 years)
Sept 2020
Bridgend Wickes 2014 24,600 sq ft £4,100,000 7.50% £326,550 £12.50
(c. 6 years)
Dec 2020
Sealford Homebase 2014 26,430 sq ft £3,425,000 7.59% £275,000 £10.40
(c. 6.84 years)
Nov 2016
Bristol Wickes 2014 24,107 sq ft £7,220,000 7.20% £554,000 £22.98
(c. 2.7 years)
June 2024
Stockton Magnet 2014 27,117 sq ft £1,480,000 7.67% £120,000 £5.68
(c. 10 years)
INVESTMENT EVIDENCE
DEDICATED LOADING AND STORAGE YARDS
PROPOSAL
We are instructed to seek offers
in excess of £4,144,000 which
reflects an attractive Net Initial
Yield of 8.70% after standard
purchaser’s costs at 6.55%.
VAT EPC
The property is elected for VAT. The property has the following EPC rating: B(43)
Further Information available upon request.OUR TEAM Peter Atkinson Richard Turner Gagan Jagpal Maxwell Wilson Associate Director Senior Director Graduate Surveyor Associate Director Tel: 0191 223 5715 Tel: 0191 223 5720 Tel: 0191 223 5709 Tel: 020 7152 5745 Email: peter.atkinson@cushwake.com Email: richard.turner@cushwake.com Email: gagan.jagpal@cushwake.com Email: maxwell.wilson@cushwake.com DTZ Debenham Tie Leung Limited (the “Agents”) 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 only and do not constitute any part of an offer or contract. (2) Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. (3) The photographs appearing in these particulars show only certain parts and aspects 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. Any areas, measurements or distances referred to herein are approximate only. (4) Where there is reference in these 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 any intending purchaser. (5) No person in the employment of the Agents has any authority to make or give any representation or warranty whatsoever in relation to this property. (6) This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. (7) Unless otherwise stated, no investigations have been made by or on behalf of the Agents regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. July 2016
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