LORDSMILL STREET, CHESTERFIELD S41 7RS - SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% PA FIXED UPLIFTS - Fastly
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LORDSMILL STREET, CHESTERFIELD S41 7RS
SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% PA FIXED UPLIFTS
1
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
RAVENSIDE
RETAIL PARK
SPIRES RETAIL PARK
MARKHAM
RETAIL PARK
ALMA LEISURE PARK
Site boundary for illustrative purposes only.
2
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
INVESTMENT SUMMARY
Chesterfield is the largest commercial centre in The income is secured to the 5A1 covenant of CDS Our client is seeking offers in excess of £4,329,000
Derbyshire located 12 miles south of Sheffield with (Superstores International) Limited. (Four Million, Three Hundred and Twenty
a primary catchment population of 266,000. Nine Thousand Pounds), subject to contract and
Unexpired lease term of 14.6 years expiring
exclusive of VAT.
Excellent location positioned on the A617 in an May 2032.
established, busy trading location for retail A purchase at this level reflects the following attractive
5 yearly 2.5% per annum compound fixed yield profile, assuming 6.56% purchase costs.
warehouse occupiers.
uplifts.
Purpose built retail warehouse unit comprising Net Initial Yield 6.25%
Freehold.
34,963 sq ft with 111 car spaces. Running Yield 2022 7.07%
Total passing rent of £288,322 pa, reflecting a very Running Yield 2027 8.00%
Open A1 non-food (excluding clothing, footwear
low £8.25 per sq ft relative to an estimated rental Equivalent Yield 7.04%
and fashion).
value of £9.50 per sq ft.
3
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
LEEDS M1
e
n Av
Bre Lane
57
HULL wery
Cr
ow
B60
M65 A164 St
Street
nyso
A63 3
54
HALIFAX B6
M62 A63
CHESTERFIELD
Ten
A56
Marsden
M62 Du
B65
Cl
43
rra
A6
M62
y
nt
B65
wle
43
Ro
Wakefield
1
ad
Co
M62
Ro
th
Salterg
Huddersfield ate
er
Wa
West
A666
Rochdale A1 A15
Soresby Street
East
y
Glumangate
Bury SCUNTHORPE A180
Rose Hill
Elder Way
ent
reet
Rose Hill
Pavem
h St
M66 M1
ce
M181
Pla
d is
Barnsley A159 GRIMSBY
on
Oldham M180
Broad
Caven
Rose Hi
ns
M61 ll
he
mithgate
M62 Knifes
ep
M60 DONCASTER
St
M18
d
A1(M)
Roa
MANCHESTER A616
A159
tion
A628 Burlington Street
treet
Sta
et
A638 Market Place High S
Stre
M67
M62 A61
ROTHERHAM A159
Mill
B6543
M1 A15 A46
ional park
M60
Low Pave
A1(M) A614 Gainsborough ment Spa
Lan
Stockport Sheffield City M18 A631 e
Airport A631
Vicar Lane
M56 A57
A15
Old Ship Ln
A156
M56 SHEFFIELD
A6 A6102 A57 A57 A1 New B
e
A523 eetwell Hollis L
h Plac
ane
Park Ro a d
Street
M6 Beetwell Street
Sout
A46 2 Hady Hill
A63
t Nat
A6
Hipper Street
A158
Macclesfield Buxton A623 A61
A619
A57 A6 1 9 M
arkham
A61 Rother W
A54 Roa
A619 d
tric
LINCOLN
CHESTERFIELD RAVENSIDE MARKHAM
A523 A53 A617 RETAIL PARK RETAIL PARK
eet
D is
Clayton Str
M6 A1
QUEENS
ay
M1
Mansfield
ak
A614 PARK Holme Brook
Lo
A46 Ne
rds
A61 wS
Pe
tre
mil
Crewe et
l St
A38
et
ree
Stre
A617
t
Elton
A15 Boythorpe Avenue
A46
A53 A610
A38 M1
Park
Newcastle-under-Lyme A523
Road
A610
M6 Stoke-on Trent A52
Bad
A1
A520 NOTTINGHAM
en P
A52
M1
THE SPIRES
owe
RETAIL PARK
DERBY A52 A6
ll Roa
17
A52
Grantham
d
A61
A606
A38
A453
A34
ALMA
M6 LEISURE PARK
A46
LOCATION REGENERATION
Chesterfield is an attractive historic market town in Derbyshire, Chesterfield is benefiting from significant investment within a number of major schemes.
situated on the A61, 12 miles south of Sheffield and 24 miles north of
Derby. The town benefits from excellent communication links. CHESTERFIELD WATERSIDE MARKHAM VALE
The Range is positioned on the A617, close to its junction with the A £320m scheme, 1 mile north of the property A 70 acre industrial and logistics site 4 miles east
A61, providing easy access to an excellent road network including comprising, 1,500 new homes, 27,000 sq ft of of the property with outline planning consent for
the M1, located 5 miles east of the property. The M1 provides Grade A office accommodation, leisure and hotel 750,000 sq ft of warehouse / industrial use. This
direct links to Sheffield (25 minutes), Nottingham (37 minutes), accommodation, and a network of open spaces. scheme is being developed by a Joint Venture
Leeds (55 minutes), Coventry (1h 10 minutes) and London (2 Construction to commence in 2017. The scheme between Henry Boot Developments and Derbyshire
hours). Immediately west of the property is the A619 linking the is being developed by a joint venture between Borough Council.
town to Manchester (1h 28 minutes). Chesterfield Borough Council and other developers.
SPIRE WALK
Chesterfield benefits from an excellent rail network with frequent ELDER WAY Positioned immediately south of Spires Retail Park,
trains direct to London St Pancras in a fastest journey time of 1h 52
A new leisure scheme within the town centre, to a new Ford car dealership facility has planning
minutes and to Sheffield in 15 minutes.
complete December 2018. The scheme comprises 6 consent on this gateway site to be developed by
Chesterfield is served by 2 major airports. The closest being East new ground floor restaurant units, Premier Inn, Health Perry’s Motor Group.
Midlands Airport, which is the 11th busiest airport in the UK with and Fitness gym with refurbished public realm. The
approximately 4.5 million passengers per annum situated 35 miles scheme is being developed by Jomast Developments.
(37 minutes) south of the town and Robin Hood Airport in Doncaster
with approximately 1.25 million passengers per annum, positioned
35 miles (39 minutes) north east of Chesterfield. Both provide
international and domestic flights.
4
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
A617
1
Proposed Ford Car Dealership
A6
SITUATION CATCHMENT AND DEMOGRAPHICS
The property is prominently located off the A617, close ft B&Q plus Toys R Us, Xercise4less and a new unit being The total population within the Chesterfield primary
to the roundabout junction with the A61. The immediate created for Go Outdoors. Further south is Alma Leisure catchment area is 266,000, significantly above average
location is a well-established out of town retail pitch and Park, where occupiers include Cineworld, Nuffield Health, for towns of this size. The estimated shopping
the subject property sits directly adjacent to TK Maxx and Nandos, Chiquito, Frankie & Benny’s and McDonald’s. population for Chesterfield at 174,000 is also above
Home Bargains forming a very busy retail destination. There has been a substantial amount of new residential average for towns of this size. In addition, Chesterfield is
To the north west is Ravenside Retail Park, Chesterfield’s development in the immediate vicinity and a large cleared an important destination for tourists. The Peak District,
largest out of town retail offering comprising 130,000 sq ft site sits adjacent to Spire Retail Park, which has consent for one of the most popular national parks in the UK is
with key tenants driving footfall to the area including Asda a new Ford car dealership. situated immediately west of Chesterfield and attracts
Living, B&M, Curry’s / PC World, Debenhams and Next. in the region of 10 million visitors per year (PeakDistrict.
To the south is Spires Retail Park, comprising a 55,000 sq gov.uk).
5
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
RETAIL WAREHOUSE
PROVISION CHESTERFIELD
TK MAXX AND HOME BARGAINS
Combined Size: 40,768 sq ft
Rent Range: £9.38 - £12.00 psf
RAVENSIDE RETAIL PARK
Size: 130,000 sq ft A61
Rent Range: £17.00 - £30.00 psf
Tenant Profile: ASDA Living /
Debenhams / Currys
A619
PC World / Next /
B&M / Pets at Home /
Maplin / Hobbycraft. VICAR LANE
SHOPPING CENTRE
MARKHAM RETAIL PARK
Size: 20,000 sq ft A619
Rent Range: £16.00 - £17.00 psf RAVENSIDE
Tenant Profile: ScS / Bensons / Jysk. RETAIL PARK A632
MARKHAM
WHEATBRIDGE
RETAIL PARK
RETAIL PARK
THE SPIRES RETAIL PARK
Size: 123,000 sq ft
Rent Range: £12.50 - £17.00 psf
Tenant Profile: B&Q / Toys R Us / QUEENS
Xercise4Less PARK
/ Go Outdoors. A617
ALMA LEISURE PARK
Size: 75,614 sq ft
Rent Range: £8.20 (Cineworld)
- £28.00 psf
(McDonalds) THE SPIRES
Tenant Profile: Cineworld / Nuffield RETAIL PARK
Health / Nandos /
McDonalds / Chiquito
/ Frankie & Benny’s / A617
Harvester.
ALMA
LEISURE PARK
WHEATBRIDGE RETAIL PARK
Size: 53,450 sq ft
Rent Range: £11.00 - £13.60 psf
Tenant Profile: Carpetright / Wickes
/ Dunelm Mill.
A61
MATALAN
Unit Size: 28,635 sq ft
Rent: £10.57 psf
6
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
“14.6 YEARS UNEXPIRED WITH 5 YEARLY 2.5% PA FIXED UPLIFTS”
DESCRIPTION TENANCY
The property comprises a purpose-built retail The property benefits from 111 dedicated The property is let to CDS (Superstores The current passing rent is £288,322 per annum,
warehouse totalling 34,963 sq ft, comprising parking spaces, providing a car parking ratio International) Limited for a term of 20 years which equates to a very low £8.25 per sq ft. The
rent is subject to 5 yearly 2.5% pa compound
33,927 sq ft of ground floor accommodation of 1:306 sq ft based on the ground floor area. from 4th May 2012, expiring 3rd May 2032,
fixed uplifts. The property therefore produces the
and 1,036 sq ft at 1st floor. The building is of The total site area extends to approximately providing 14.6 years unexpired.
following guaranteed rental income:
steel portal frame construction with elevations 2.01 acres (0.81 ha).
of brick work and profile cladding. Shared Rent Review Date Total Rent (Guaranteed) Rent (£ per sq ft)
servicing is located to the southern edge of the
property and accessed via a secure storage
TENURE 04/05/2017 £288,322 £8.25
04/05/2022 £326,210 £9.33
yard with a roller shutter door. Freehold
04/05/2027 £369,077 £10.56
The lease repairing obligations are subject to a schedule of condition, which is available upon request.
7
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS SECURE RETAIL WAREHOUSE INVESTMENT WITH 14.6 YEARS UNEXPIRED AND 2.5% FIXED UPLIFTS
TENANT COVENANT
Founded in 1989, by Chris Dawson, The Range is one of the fastest
growing retailers in the UK with over 140 stores nationwide.
The Range continues to expand and remains an active retailer
seeking to open 15 further stores in 2017. To date in 2017, The
Range have acquired stores in Ipswich, Derry, Cannock and have
submitted plans to develop a new headquarters in Plymouth with
an adjoining superstore. In March 2017 the business commenced
construction of a new 1.2 million sq ft distribution centre in
Avonmouth.
The most recent company accounts for CDS (Superstores
International) Limited are set out below:
31 January 25 January 26 January
2016 2015 2014
Turnover £674,203,000 £565,064,000 £470,282,000
Pre Tax Profit £57,032,000 £57,299,000 £45,238,000
Net Worth £190,245,000 £166,972,222 £123,113,000
The company has a Dun & Bradstreet (D&B) Rating of 5A1,
representing a minimum risk of business failure.
RENTAL VALUE
In our opinion, the current rent passing of £288,322 pa, reflecting
£8.25 per sq ft, is reversionary with an estimated rental value
in the region of £332,150 pa, reflecting £9.50 per sq ft. TK Maxx
acquired one of the adjacent units comprising 25,767 sq ft in
November 2012 at a rent of £9.38 per sq ft. Home Bargains
acquired the adjacent unit comprising 13,377 sq ft for £12.00 per
sq ft in 2012. More recently, Matalan, extending to 28,365 sq ft and
located in an inferior pitch 1 mile west of the property, re-geared in
2014 with a 15 year reversionary lease at a rent of £10.57 per sq ft with
a 12 month capital contribution providing a net effect rent of £9.43
per sq ft. Most recently, Go Outdoors have taken a 26,107 sq ft unit
on Spires Retail Park at a headline rent of £9.38 per sq ft.
PLANNING
The planning consent is Open A1 non-food (exlcuding the sale of
clothing, footwear and fashion goods).
Further details are available upon request.
8
THE RANGE, LORDSMILL STREET, CHESTERFIELD S41 7RS
VAT
The property is not elected for VAT.
EPC
The EPC rating is C-66.
PROPOSAL
Our client is seeking offers in excess of £4,329,000
(Four Million Three Hundred and Twenty Nine Thousand
Pounds), subject to contract and exclusive of VAT. FURTHER INFORMATION
A purchase at this level would provide the following Nick Richardson Will Collins
yield profile based on purchaser’s costs of 6.56% T 020 7312 7420 M 07818 012 420 T 020 7312 7405 M 07972 148 262
Net Initial Yield 6.25% E Nick.Richardson@montagu-evans.co.uk E Will.Collins@montagu-evans.co.uk
Running Yield 2022 7.07%
Mark Girling
Running Yield 2027 8.00% T 020 7312 7460 M 07770 851 123
Equivalent Yield 7.04% E Mark.Girling@montagu-evans.co.uk
Misrepresentation Act 1967
Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that: (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.
(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever 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. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted
exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. September 2017. Design: Command D www.commandHQ.co.uk
You can also read
