LONDON ROAD RETAIL PARK - NEWBURY | RG14 2BP - PRIME SOUTH EAST RETAIL WAREHOUSE INVESTMENT OPPORTUNITY - Wilkinson Williams
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LONDON ROAD RETAIL PARK NEWBU RY | R G1 4 2 B P PRIME SOUTH EAST RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
Newbury is an affluent town situated in the county of West Let to B&Q plc, Dunelm (Soft Furnishings) Ltd and The subject property is held within a Jersey registered
Berkshire in the South East of England, 60 miles west of Carpetright plc with an attractive WAULT of 5.7 years. Special Purpose Vehicle (SPV) company structure.
Central London.
Asset management opportunity to re-gear the B&Q lease. We are instructed to seek offers in excess of £20,875,000
Affluent population with 36.7% of the 20 minute drive time (Twenty Million, Eight Hundred and Seventy Five
catchment within the top Acorn Group ‘Affluent Achievers’. Current income of £1,168,859 annum, averaging £16.16 per Thousand Pounds) for the Jersey SPV holding the freehold
sq ft. interest in London Road, Newbury, subject to contract.
Newbury has a substantial pipeline of residential
development sites with circa 5,000 new homes to be built The property benefits from an open A1 (non-food) planning A purchase at this level reflects a net initial yield of
in the area by 2026. consent. 5.50%, assuming purchaser’s costs of 1.80%.
A modern retail warehouse development extending to Proposed retail scheme on the adjacent site which is Under
71,571 sq ft GIA. Offer on a pre-let basis.
Situated on the London Road (A4), an established and Freehold.
prominent retail warehouse location and adjacent to a
Tesco foodstore.
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
8
7
1
22
2
Cirencester 20
Abingdon 19 5
24 M25 25 26
6 18 Enfield 5
5
17 4 M1 Chigwell TURNP
M40 E IKE RO
AD
4 AV
Didcot 3 2 4 WESTERN A339
GAY
2
1
WO
9
1
00
Swindon Maidenhead Uxbridge B4 D
O
16 Slough DR
15
7
LONDON IV E
O
6
4 2 1
XF
3 ALDI
O
Reading OAD
ON R
RD
M4 14 HEATHROW LOND
RD
14 13 13
OLDKingston London Road
12 10 upon
BAT Thames
H RO Retail Park
11 Bracknell Staines 1 AD Lidl A4
NEWBURY M3 11 Sutton Croydon LO
ND
ON
PARK WAY
3
Devizes Camberley Epsom RO
AD
A339 4 Woking M25
10 9 A4
9
7 A4
Farnborough Victoria LONDO
N RD
5
A34 Basingstoke
8 6
Park
6 Aldershot
WEST ST
Redhill
Farnham Guildford NReigate
Andover
7
RT
HC
O
M23 A339
8 Godalming Rive
REET
RO r Ke
Northcroft FT LANE nne
Park GATWICK 9 t
M3 10
Crawley NE
West E LA Rive
Berkshire BON r Ke
nne
t
H
Haslemere Museum
B ON
11
9
421
EL
Salisbury Winchester Horsham Corn
LANE
AN
MILL
B3
10 Exchange E B
B3421
11
ON
Petersfield
E LANE
Wickes
13
12 Haywards
14 Eastleigh Heath B34 B3421
4 KI N G S R
OAD 21 DG E ROAD
3 4 5 OAD HAMBRI
CRAVEN R
2
1 Southampton 1
8
Sainsbury’s
M27
9 3 NEWBURY RACECOURSE
10 Chichester
B A RT H O LO ME W S
BOUNDARY
11
Ringwood 5
Hove
12 12
Littlehampton Brighton NEWBURY
Gosport Portsmouth Worthing A339 Newbury Racecourse
LANE
Bognor Regis STREET
Cowes POUND QUEEN’S ROAD
T
LOCATION
Newbury is an affluent market and commuter town in the county The town has two railway stations, Newbury which operates Newbury is a town synonymous with horse racing, with Newbury
of West Berkshire in the South East of England. The town lies services to London Paddington with the quickest journey time of Racecourse having first opened in 1904, hosting races all year
approximately 16 miles north west of Basingstoke, 18 miles south approximately 40 minutes and Newbury Racecourse which runs round and is benefiting from major financial investment through
west of Reading, 26 miles south east of Swindon and 60 miles local services between Newbury and Reading. redevelopment works.
west of Central London.
Newbury is the major commercial and retail centre of West
The town has good transport links with the A4, A339 and the Berkshire and is home to the UK headquarters of Vodafone and SITUATION
A343 passing through the town, providing direct access to the FTSE 100 listed, technology giant Micro Focus International.
neighbouring towns including Reading and Basingstoke. The M4 The town’s proximity to the M4 motorway also makes it a key The subject property is situated within close proximity to the
motorway is located 4 miles to the north and the M3 motorway, location for industrial, logistical and research businesses. town centre in a prominent and highly visible position fronting
12 miles to the south east. London Road (A4).
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
STRONG DEMOGRAPHICS Household Income Profile
PROMIS states that the Newbury Primary Retail Market Area is one of the most affluent in the UK
being ranked 7th amongst all the PROMIS centres.
£40k to £60k pa £60k to £80k pa £80k to £100k pa £100k+ pa
22% above average 52% above average 80% above average 104% above average
The Newbury Primary Retail Market Area, comprising circa 116,000 people and its wider catchment,
Catchment = 22.1% Catchment = 13.2% Catchment = 7.9% Catchment = 9.4%
is forecast to see significant above average population growth linked to a simultaneous growth in Average = 18.1% Average = 8.7% Average = 4.4% Average = 4.6%
retail spending over the next few years.
CACI provide that within the subject property’s 20 minute drive time catchment, 63.5% of
households are categorised within the highest Acorn Category Groups (ABC1), significantly above
the CACI base average of 53.2%.
Weekly Catchment Expenditure versus CACI average
Catchment
Social Grade of Catchment
Household
(white goods) +10% £2.14
£1.94
CACI Average
Tools for
house
& garden
+18% £1.30
£1.10
Description Comparison to Base (GB)
House repair,
Average maintenance
& decoration
+48% £0.32
£0.47
AB Higher and intermediate managerial / +50%
professional Household
(glassware,
tableware etc.)
+21% £1.30
£1.10
C1 Supervisory / professional -3%
C2 Skilled manual workers -5%
Household
textiles +10% £2.16
£1.97
Furniture,
DE Semi-skilled / unskilled workers / unemployed -35% furnishings & +12% £6.35
floor coverings £5.66
Other important demographic statistics for the Newbury catchment include:
· ‘Affluent Achievers’ comprise 36.7% of the catchment, as compared to the 21.8% UK average.
· ‘Rising Prosperity’ make up 16.4% of the catchment, as compared to the 9.9% UK average.
· T
he average annual household income is £49,752, 32.8% above the UK average.
· H
ome ownership is 7% above the UK average.
· T
he average house price is 41.3% above the UK average.
· C
ar ownership 32% above the UK average.
· T
he level of unemployment for people aged between 16 and 74 stands at 1.5%, significantly
less than the CACI base average of 2.0%.
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 BWPESTERN AVENUE A339
TURNP
IKE RO
AD
09
40
B
GA
O
Y WO
XF
O D D RIV
E
O
ROAD
RD
ON
RETAIL WAREHOUSE PROVISION
E
LOND London Road AN
RD
OL
DB OXFORD ST
ATH Retail Park
L
R OA D A4
E
FIR TRE
LO
ND
ON
PARK WAY
RO
AD
LONDON R
OAD Newbury has a relatively limited supply of retail warehouse accommodation, which is summarised
A4
A4 A4
below:
WEST S
E ROAD
NO
RT
HC
A339
Adjoining Site
Rive
TREET
R OF r Ke
T LAN nne
H A M B RI D G
E t
BON
E LANE Rive
r Ke
nne
Adjacent to the subject property is a 34,300 sq ft Tesco foodstore let on a lease with in excess
of 15 years remaining and a 6,000 sq ft retail warehouse unit let to Poundstretcher. There are
t
421
LA N E
MILL
BO
redevelopment proposals to replace the existing vacant public house, with a 12,000 sq ft A1 unit
B3
N E LANE
B3421
R LANE
BEA
– which we understand is Under Offer (details upon request).
ROA D
B34 B3421 HAMBRIDGE
KIN G S R O 21 GE ROAD
OAD STRE E AD HAMBRID
CRAVEN R
T
M A R KE T
London Road Cluster
NEWBURY RACECOURSE
Half a mile west of the subject property, along London Road, is a cluster of retail warehouse units
B A RTH OLO MEW
BOUNDARY
NEWBURY
A339 let to Aldi, Pets at Home, Topps Tiles, Bathstore, Dreams and Majestic Wine. This cluster also
STREET
includes a Greggs and a number of car showrooms.
LANE
POUND QUEEN’S ROAD
ST
Wickes, Hambridge Road
A343
There is a standalone Wickes store located to the south of the River Kennet, on Hambridge Road.
GR
EN
The unit comprises circa 30,000 sq ft and is owned by Travis Perkins.
E
HA
M
RO
NEWT
AD
A3
43
Newbury Retail Park
OWN
Approximately 2 miles south of Newbury town centre lies the 200,000 sq ft Newbury Retail
OAD R
Park. Retailers include Next, Currys PC World, M&S Foodhall, TK Maxx, Boots, New Look, Argos,
Matalan, Sports Direct, Mothercare, Homebase Design Centre, Poundworld, Poundstretcher,
Costa, McDonalds and Pizza Hut. Rents on the retail units range from £16.00 to £30.00 per sq ft
43
G R EE
A3
A339 and the planning is predominantly open A1 (non-food). The scheme is owned by F&C.
NH
AM
RO
AD
NEW
TOW
N RO
NEWBURY RETAIL PARK
AD
GR
EEN
H
AM
RO
ANK ROAD
AD
YS B
E BUR
KS LAN
MON
ON LA N E
GT
HIN BU
PI N C RY
SB
AN
KR
OA
D
Prime South East Retail Warehouse Investment Opportunity
DESCRIPTION EPC’S
The subject property is a modern purpose built retail warehouse The second unit comprises a Dunelm of circa 24,000 sq ft GIA and Unit Rating
scheme comprising a DIY unit and a single terrace formed of two a Carpetright of circa 10,635 sq ft GIA. Within the Dunelm store,
units. The units are of steel frame construction with part brick, the tenant has erected a mezzanine level that covers circa 66% of 1 B 48
part steel profile clad façade and the subdivided units benefit from the internal floor space and includes a “Pausa” coffee shop. In 2011,
substantial glazed frontages. All three units offer prominent and these two units were subject to external refurbishment works which 2A/B C 72
highly visible retailer signage. included installing fully glazed frontages. 2C B 49
B&Q occupy a standalone unit extending to circa 35,095 sq ft GIA at At the front of the stores is a tarmacadam customer car park providing
ground floor level with an additional 1,841 sq ft GIA of first floor office approximately 266 parking spaces. This gives a good parking ratio of
space. There is also an outdoor garden centre. ratio of 1 : 269 sq ft. Servicing is provided to the rear of the units.
The site extends to approximately 6.03 acres (2.44 hectares), giving
a site cover of 27%.
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
Astor House
TENURE
256
The site delineated in red is held Freehold. This is provided for indicative
purposes only.
73.5m
73.4m
El Sub Sta Posts
PLANNING
The
Narrow Boat H
(PH)
The property benefits from an open A1 (non-food) planning consent. A copy
of the planning consent can be provided upon request.
Superstore
REPORTS & SURVEYS
It is anticipated that the specialist environmental and flood risk reports
together with a Plowman Craven measured survey which have been produced
Water
will be fully assignable to the purchaser.
Sluice Tow
ing P
ath
Drain
Sluice
FB
0m 25m 50m 75m
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
TENANCY
The scheme is let to three market leading retailers and benefits from a WAULT of 5.7 years.
Unit Tenant GIA Lease Lease Next Rent Current Rent Current Rent Comments
(sq ft) Start End Review (per annum) (per sq ft)
1 B&Q plc 36,936 11/06/2012 10/06/2022 - £611,736 £16.56 Rent paid monthly, lease states quarterly but
understood to be an informal arrangement.
2A/2B Dunelm (Soft Furnishings) 24,000 10/10/2011 09/10/2026 10/10/2021 £360,000 £15.00 24,000 sq ft stated in the lease. 24,311 sq ft in P&C
Ltd survey. Upwards and Downwards rent review. The
2016 rent review was documented at nil change.
2C Carpetright plc 10,635 30/11/2013 29/11/2023 30/11/2018 £184,623 £17.36 Category A store in recent CVA. Rent paid monthly.
Mobile Food Private Individual 0 14/11/2015 13/11/2020 - £12,500 - Rolling break option, subject to 3 months’ notice.
71,571 £1,168,859
SERVICE CHARGE
There is a service charge cap in the Dunelm lease of £19,200 per annum (£0.80 per sq ft) until 9 October 2016 and then increasing annually in line with RPI.
The property has a low service charge of £0.50 per sq ft, resulting in no shortfall.
The 2018 service charge budget and previous service charge accounts are available upon request.
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
TENANT INFORMATION
B&Q plc
B&Q is the UK’s leading home improvement retailer trading from approximately 300
stores and employing over 27,000 people. Their most recent accounts are as follows:
Year Ending Sales Turnover Pre Tax Profit Net Worth D&B Rating
31/01/2017 £3,582,800,000 £229,100,000 £4,647,200,000
5A 1
31/01/2016 £3,704,000,000 -£68,900,000 £4,493,200,000
Dunelm (Soft Furnishings) Ltd
Dunelm is one of the UK’s leading homewares retailers with over 150 stores and
employing over 6,000 people. Their most recent accounts are as follows:
Year Ending Sales Turnover Pre Tax Profit Net Worth D&B Rating
01/07/2017 £901,100,000 £90,500,000 £46,400,000
5A 1
02/07/2016 £880,900,000 £127,400,000 £32,200,000
Carpetright plc
Carpetright is the leading floor coverings and beds provider in the UK. Their most
recent accounts are as follows:
Year Ending Sales Turnover Pre Tax Profit Net Worth D&B Rating
29/04/2017 £457,600,000 £900,000 £20,700,000
4A 4
30/04/2016 £456,800,000 £12,800,000 £16,900,000
On 12 April 2018, Carpetright announced it was entering into a Company Voluntary Agreement (CVA),
which involved closing 81 ‘unviable’ stores and reducing rents on a further 113 stores. This would leave them
with a portfolio of profitable stores. The CVA has been approved by both its creditors and shareholders
and the company has announced its intention to issue a rights issue of £60 million, to be reinvested into
the business.
This was a category A store, the highest ranking grade. No rent reduction was sought for those designated
as category A’s and the tenancy arrangement is unaffected.
Prime South East Retail Warehouse Investment Opportunity
LONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
RENTAL COMMENTARY
Good quality locations, particularly in the South East of England, have experienced strong levels of
tenant demand in recent years. The lack of available sites and high level of consumer spending in the
more affluent catchments have generally resulted in an increase in rental levels.
As identified, Newbury has a relatively low supply of good quality retail warehouse accommodation
and the town has demonstrated strong sustainable rents in the recent past.
DIY Unit
DIY provision in Newbury is limited to the B&Q on the subject property (36,936 sq ft), a Homebase
unit on Newbury Retail Park (circa 30,000 sq ft) and the standalone Wickes unit (circa 30,000 sq ft)
on Hambridge Road. Given the size of the catchment and ‘right’ size of each unit, we would suggest
the passing rent on the B&Q at £16.56 per sq ft is highly sustainable.
Evidence in the town and elsewhere in the South East includes the following:
Retailer Town Size (sq ft) Rent (per sq ft) Year
Homebase Newbury 30,144 £22.00 2007
Wickes Tunbridge Wells 25,422 £18.19 2018
B&Q Slough 81,637 £21.25 2017
Smaller Units
Again, due to the tight supply of retail warehouse provision and high affluence of the conurbation,
recent evidence in the town suggests that the units occupied by Dunelm and Carpetright are at
least rack rented. It is important to note that the Dunelm upwards and downwards rent review in
October 2016 was documented at nil change from the passing rent of £360,000 per annum, equating
to £15.00 per sq ft.
In 2016 on Newbury Retail Park, Boots took a new unit of 10,000 sq ft at a rent of circa £32.50 per
sq ft, with TK Maxx moving into a unit of 12,000 sq ft at a rent of circa £29.25 per sq ft. We
understand the existing Evans unit, extending to 5,000 sq ft, is currently being split and both units
are under offer at approximately £40.00 per sq ft. We also understand there has been tenant interest
in the Poundstretcher unit on Newbury Retail Park at rents in excess of £30.00 per sq ft.
In addition, there was strong interest from A3/A5 operators for a two unit scheme on the adjacent
site however the owner has decided to construct a single unit of 12,000 sq ft which is Under Offer
on a pre-let basis.
Prime South East Retail Warehouse Investment OpportunityLONDON ROAD RETAIL PARK
N E W B U RY | R G14 2 B P
VAT FURTHER INFORMATION
The property is elected for VAT, however purchase Wilkinson Williams LLP
consideration on the proposed “corporate” Heathcoat House
transaction would not itself be subject to VAT. 20 Savile Row
London W1S 3PR
Miles Marten
SPECIAL PURPOSE VEHICLE Tel: 020 7317 3777
Mobile: 07770 748 290
The transaction will be conducted by a transfer Email: m.marten@wilkinsonwilliams.co.uk
of ownership of the shares of a Jersey registered
Special Purpose Vehicle (SPV). Jack Lloyd
Tel: 020 7317 3796
Mobile: 07747 883 231
PROPOSAL Email: j.lloyd@wilkinsonwilliams.co.uk
www.wilkinsonwilliams.co.uk
We are instructed to seek offers in excess of
£20,875,000 (Twenty Million, Eight Hundred
and Seventy Five Thousand Pounds) for the
Jersey SPV, subject to contract.
A purchase at this level reflects a net initial yield
of 5.50%, assuming purchaser’s costs of 1.80%.
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.
May 2018. Designed and produced by Creativeworld Tel: 01282 858200.You can also read
