MATALAN 70 CARRON ROAD FALKIRK FK2 7RR - Retail Warehouse Investment Opportunity Secured to 5A1 Covenant - Cushman & Wakefield
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MATALAN 70 CARRON ROAD FALKIRK FK2 7RR Retail Warehouse Investment Opportunity Secured to 5A1 Covenant
EXECUTIVE SUMMARY • Well presented standalone retail warehouse extending to 45,542 sq ft • Prominent location close to Falkirk town centre with excellent accessibility via road and public transport • Fully let to 5A1 covenant Matalan Retail Ltd providing over 6 years secure income until 13 October 2024 • Total passing rent of £422,000 per annum reflecting a low rental rate of £12.03 per sq ft • Heritable interest, Scottish equivalent of English freehold • We are instructed to seek offers in excess of £4,420,000 reflecting a Net Initial Yield of 9.00% assuming purchaser’s costs based on LBTT. RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |2
CARRON
MEDICAL CENTRE
B9
02
Indicative site plan only
RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |3
LOCATION
Falkirk is located in the central belt of Scotland,
M9
26 miles north-west of Edinburgh and 25 M876
A9
miles north-east of Glasgow. The town is Torwood J7
A88
J8
well positioned benefitting from excellent M80
A905
transport links to Edinburgh, Glasgow and the M876
B9
rest of Scotland. The town has a population M9
02
A88
of approximately 35,398 people with a wider J2 Stenhousemuir
Larbert
Falkirk Council population of 155,990. A8
83
Glensburgh J6 Grangemouth
Falkirk’s location within Scotland’s Central Denny J1
B9
A9
02
Falkirk
A9
Belt results in the town benefitting from A883 Bainsford
M80 04
A9
an extensive catchment area. The town is M876
A803
well served by the motorway network, with Camelon A803 J5
A9
immediate access to several junctions of the J5
Laurieston
M9 and M876 motorways leading to Stirling, J4
Bonnybridge
A803 M9
Callendar Park
Edinburgh, Glasgow and surrounding towns.
Polmont
Redding
Falkirk benefits from two railway stations, Glen Village
Falkirk Grahamston and Falkirk High. The two
stations provide links to the local area as well
as Edinburgh, Glasgow and Stirling. Falkirk
Grahamston station is located one mile
south of the property. The property is also
accessible by bus with the number 6 and 7
First Bus services running along Carron Road,
with bus stops approximately 50 metres from
the property.
There are two major international airports
within an hour of Falkirk. Edinburgh Airport,
located around 20 miles to the east and
providing flights to over 150 destinations, while
Glasgow Airport is 33 miles to the west.
RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |4
SITUATION
The property is located on the west side of the B902 Carron Road, around
1 mile to the north of Falkirk town centre. Access is gained directly from
Carron Road and is shared with the adjacent unit J&W Carpets, which is
positioned to the immediate west of the property. The surrounding area is
a mix of residential and retailing. To the north of the property is the Carron
Centre, including a Co-op Food supermarket, Well Pharmacy, Lidl, Greggs
and Carron Medical Centre.
The Co-op own their site and have secured planning permission to build a
single storey retail building of two units on part of the car park. The larger of
these at 4,000 sq ft is to be a new Co-op store, with the other at 1,500 sq ft
to be occupied by Well Pharmacy. It is expected that once this is completed
the existing Co-op store building will be demolished and the site will be
marketed with potential for a mixed use development that could include
retail, leisure, hotel or residential.
SITE PLAN
He
alt
h
Ce
nt
re
13.7m
83
to
77
32
Pol Sta to
36
11
to
1
13 to
19
68
66
to
60
58
to
54
52a
21 to
45
19
ACE
T ERR
IOT Posts
ELL
36
2
4 to
0m 10m 20m 30m
34
10
12
to
32
18
16.5m
9
30
Indicative site plan only
Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |5
DESCRIPTION The property comprises a steel frame retail warehouse store of brick and blockwork cladding with profile metal sheeting above. The building has been extended during Matalan’s occupation. The property provides primarily retailing space at ground floor with separate entrance and exit points both on the south elevation leading directly to the car park. Two mezzanine levels are positioned at either end of the building provide storage and office accommodation. There is a single goods lift linking the main mezzanine store area to the ground floor retailing with a capacity of 800 kg, and deliveries are made to the rear of the unit. RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |6
ACCOMMODATION
The building has been measured on a net internal area basis in accordance with
the RICS Code of Measuring Practice (6th Edition).
Floor Area NIA sq m Area NIA sq ft
Ground 3,257.85 35,067
West mezzanine 175.61 1,890
East mezzanine 797.54 8,585
Total 4,231.00 45,542
TENANCY
The property is let on full repairing and insuring terms to Matalan Retail Ltd
on a 25 year lease until 13 October 2024. The passing rent is £422,000 per
annum reflecting a rental rate of £12.03 per sq ft on the ground floor area.
There is an open market upward only rent review on 14 October 2019. For the
purposes of the rent review the mezzanine areas are to be disregarded as a
tenant’s improvement.
COVENANT
Matalan is a British based fashion and homeware retailer established in 1985.
The brand has a focus on providing quality but good value products, and there
are now 227 stores across the UK.
Matalan Retail Ltd has a Dun & Bradstreet rating of 5A1 reflecting a minimum
risk of business failure.
For the financial year to 24 February 2018 the company had a tangible net
worth of £252,600,000.
Year End Turnover Profit (Loss) Tangible Net Worth
(000s) Before Taxes (000s)
(000s)
24 Feb 2018 1,062,500 29,800 252,600
25 Feb 2017 1,036,100 10,300 317,900
27 Feb 2016 1,060,500 (20,300) 317,800
RETAIL WAREHOUSE INVESTMENT OPPORTUNITY |7
TENURE
Heritable interest (Scottish equivalent of English freehold).
EPC
A copy of the EPC is available upon request.
VAT
The property has been elected for VAT purposes and it is anticipated that the investment will be treated as TOGC.
PROPOSAL
We are instructed to seek offers in excess of £4,420,000 reflecting a Net Initial Yield of 9.00% assuming purchaser’s costs based on LBTT.
CONTACT
Stuart Spalding Carolyn McEwan
stuart.spalding@cushwake.com carolyn.mcewan@cushwake.com
0141 304 3243 0141 304 3258
07717 178 284 07712 390 872
MISREPRESENTATION ACT
Cushman & Wakefield Debenham Tie Leung Limited (“C&W”) gives 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 C&W 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 C&W
regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. 8. Copyright and confidentiality Experian, 2015. © Crown copyright and Experian Copyright. All rights
reserved. Licence Number PU 100017316. Publication Date: September 2018 2You can also read
