MATALAN & SPORTS DIRECT - WELL SECURED RETAIL WAREHOUSE INVESTMENT HEATHCOTE ROAD, LONGTON, STOKE-ON-TRENT, ST3 2NU - Cushman & Wakefield
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
MATALAN & SPORTS DIRECT HEATHCOTE ROAD, LONGTON, STOKE-ON-TRENT, ST3 2NU WELL SECURED RETAIL WAREHOUSE INVESTMENT
2 Matalan & Sports Direct Matalan & Sports Direct 3
INVESTMENT HIGHLIGHTS
Well let modern retail warehouse
• Longton is a large district forming part of the City of Stoke- • he scheme is let to leading retailers which are relevant
T
on-Trent with the centre situated 2.6 miles north-west. and rightsized for the catchment with the surrounding scheme to 5A1 covenants which
• It has excellent road and rail communications with the
retail provision having a limited fashion offer.
are rightsized and relevant for the
A50 dual carriageway south of the town linking it to
surrounding major City’s as well as Junction 15 of the M6.
• ustomer car parking is situated to the front and side
C
of the units with a total of 168 spaces giving a ratio of
retailing catchment
1:258 space per sq ft.
• 143,127 people live within a 10 minute drive time increasing
to over 234,000 people within 15 minutes. • otal scheme income of £563,000 per annum is secured
T
on 5A1 covenants with a WAULT of 11 years from purchase.
• Highly accessible location adjacent to the A50 dual Sports Direct’s rent benefits from an RPI linked rent review
carriageway and opposite the catchment’s largest foodstore C&C of 1-3% at the end of Year 5.
provision, a 108,000 sq ft Tesco Extra.
•
The units benefit from Open A1 non-food planning consent.
• The property comprises a modern purpose built scheme
totalling 43,378 sq ft GIA across two units which are • F
reehold site extending to 2.93 acres.
occupied by Matalan and Sports Direct, both of which
benefit from mezzanine accommodation.
We are instructed to seek offers in excess of
£8,440,000
(Eight Million, Four Hundred and Forty Four Thousand Pounds)
subject to contract and exclusive of VAT. An acquisition at this level
reflects an Net Initial Yield of 6.25% off the Day 1 income rising
to an estimated 6.45% in September 2023 assuming 2.5% pa RPI
indexation on Sports Direct. Purchaser’s costs of 6.68% assumed.
4 Matalan & Sports Direct Matalan & Sports Direct 5
SHEFFIELD
Winkhill
A34 Red Street
A6
A560 Balterley Heath Milton
Runcorn M56
M53 A523 Smallthome
A49 Burslem
M56 A6 Sney Green
STRATEGIC CATCHMENT &
A537 A623 Wetley Rocks
A537 Chesterfield Lincoln HALMER END Porthill
Abbey Hulton
A556 A34 A6 A619 Betley
A520
A54 A49
M6 A536 Lymedale Business Park STOKE- A5009
LOCATION DEMOGRAPHIC
Chester A54 A54 ON-TRENT Wernington
Fraghall
A51 A527 Bucknall
A52 Mansfield Cross Heath
Hanley Ash Bank Whiston
Wrinehill Etruria Kingsley
A53 A6
PROFILE
A530 A515 A61
A51 A534
A34
Crewe NEWCASTLE- Kingsley Moor
Kingsley Holt
A534 M1 Madeley Heath A525 UNDER-LYME
A500 STOKE-ON-TRENT
• Longton is a thriving district forming part of the larger A49
A50 A523 Madeley
Keele
A38 A5007 Weston Cayney
Newcastle-
City of Stoke-on-Trent catchment which comprises under-Lyme
A52
A6 M6 Parklands Fenton
of five other districts being Burslem, Fenton, Hanley, A525
LONGTON A52
A6514 • ccording to CACI Limited an estimated
A Trent Vale
NOTTINGHAM
LONGTON
A51 A515 Clayton Cheadle
Tunstall and Newcastle-under-Lyme. A34
A50
143,127 people live within a 10 minute Onneley
A521
A5
A53 A520 DERBY A52
A52
drive-time increasing to over 234,000
A41
• Traditionally known as the ‘Potteries’, the urban area A50 A453 M6 Hanford Dresden
people within a 15 minute drive-time of A5182 Juction 15 A5035 Meir Forsbrook
has a total population of over 372,000 people. A34
A511
A50
Acton Hanchurch Lightwood
A49
Stafford M1 the subject property. Trentham
Hem Heath
Burton upon Trent
• Longton is located 2.6 miles and 5.4 miles south-east A442 A51
A515
Weymouth Meir Heath
M6 Baldwins Gate
of Stoke-on-Trent and Newcastle respectively and A53 A518
• n increase of 1.6% is estimated by 2022
A Drayton in the Moors
A444 Hill Choriton A34
33 miles north-west of Derby. A518 A34 A51 A511
for the 15 minute drive-time catchment Sidway Rough Close A50
A38 A42 A51
Shrewsbury A5
A41
Cannock and 3.2% by 2027. Stableford
Beech Tittensor
Tean
A5 A50
Telford A449 Tamworth Checkley
M54 M6 TOLL
M42 LEICESTER Fole
A5
Less than 5 miles to Junction 15 A444 Sandyford
Walsall
Sutton M6
WOLVERHAMPTON Coldfield Outton Heath
of the M6 making Longton W Bromwich
M6
Nuneaton
Hinckley
A5
M69 M1 Swynnerton
Meaford
OUTTON
easily accessible to the national
Cotes Heath
A444
Corby
BIRMINGHAM
motorway network M6
Stone
M42
Kidderminster Solihull COVENTRY 10 MINUTE
Rugby
A34
A5 DRIVE-TIME
ROAD
Longton has excellent road communications
RAIL
Longton Railway Station provides an hourly
BUS
The Longton Interchange bus station situated
143,127
people
with the A50 dual carriageway south of the service to Stoke-on-Trent with a journey time in the heart of the town centre adjacent to
town leading east to Derby, Nottingham and of 6 minutes. Stoke-on-Trent has onward Tesco Extra provides a regular bus services
Uttoxter; and west towards Stoke-on-Trent, connections to Birmingham New Street and linking Longton to the rest of Stoke-on-Trent.
15 MINUTE
Newcastle-under-Lyme and the A500 which London Euston with 3 trains per hour with the DRIVE-TIME
links into Junction 15 of the M6. fastest journey times of 46 minutes and
1 hour and 24 minutes respectively. 234,058
people
An
Po ch
Rd
or
M
rtl Pl
ar
ch
an Rd
lb
Matalan & Sports Direct 7
ar
KI d nd
or
Rd
M
NG tla
ou
Ru
gh
ST
U
Rd
pp
er
l
Gr
Cr
Sidings P
os
aft
s
St
St
on
A5007
d
oo
Rd
W
Phoe
nix W
ay Ba
DESCRIPTION
ths
A50 Rd
Longton Rail Station St
ine
rol
Ca
Rd
An Pa
ch
or
ley Rd Inte or rk
Fo H
ch
Te
rr a all
St
The property is a modern purpose built two unit retail
An
rc
ce
hange
t
warehouse scheme totaling 43,378 sq ft GIA which
dS
oo
Astro Gro
ve Ba was constructed in 2004.
ew
thu Go
rst
i dg
dd
St ard
It comprises of steel portal frame construction with brick,
Br
St
Rd
RETAILING panel elevations and partially glazed frontages. Both
er
nt
e
units have external canopies overhanging the glazed
rp
Ca
LONGTON
PROVISION
St
et entrance points.
G
r
to
re
Po Rd
EXCHANGE n Cl
go
w
r
Gr
n
y
y
ffi
er rt L Unit 1 is let to Matalan totaling 34,975 sq ft and Unit 2 to
le
St
n
i
G s po
MATALAN &
Fo
St
M
ro n
Tra
AR
ve Sports Direct totaling 8,403 sq ft. Internally both units
SPORTS DIRECT
KE
are fitted out to each retailer’s standard specification and
TS
The subject property occupies a highly accessible
T
Hu
location with the A50 dual carriageway adjacent Rd
benefit from mezzanine accommodation. The Sports Direct
rs
te
tS
and slip roads less than a minutes drive to both the A50 co mezzanine is used for both trading and ancillary purposes.
t
ath
St
He
Grosvenor
north and south. Heathcote Rd m On site customer car parking is situated to the front and
S
t
ith
dS
Gol yL
dS side of the units with a total of 168 spaces providing
oo
It forms part of Longton’s principal retailing area to the t n
ew
south of the town centre, rear of Longton Exchange a ratio of 1:258 space per sq ft. The car park is subject to
idg
Br
Heathc
Cres
shopping centre. ote Rd Pay & Display operated and operated by Smart Parking.
A5007
se
C
Adjacent lies a 108,000 sq ft Tesco Extra with Petrol or Servicing of the property is via a separate side road to
Red Hou
on UT
at TO
Filling Station the largest foodstore provision within the io
n XE the west of site.
Av TE
e
t
catchment along with a 10,678 sq ft Next, 9,640 sq ft R
eS
RD
Gr
erc
s
TENURE
Argos and 3,190 sq ft Pizza Hut restaurant. CTo re the rearee
mm
e nd
ous oc
of the property lies a 10,000 sq ft Farmfoods
H and k
Co
d St
19,900 sq ft Lidl.
R e
A5007
Rd
’s
ry
oWithinless than half a mile to the north-west of the Freehold site extending to approximately 2.93 acres
g
re
(1.19 hectares).
TH
scheme lies Phoenix Retail Park comprising of five
G
St
ES
retail warehouse units totaling 54,100 sq ft along with RA
T
ND
St
PLANNING
a 3,550 sq ft McDonald’s drive-thru and Marston’s pub.
t h
pe
Tenants on the park include TK Maxx, Currys/PC World,
or
Be
M
S
t
d
Smyths Toys and Pets at Home. rR St A50 nn
er
io
ow
d n
o
St
ns
or
G
Willo No
Ede
shf
Other national retailers within the immediate vicinity w Ro
w
rm
a co
The property benefits from an Open A1 (non-food)
Ay
t Rd
include; Home Bargains, Wilko and B&M. planning consent.
For indicative purposes only
8 Matalan & Sports Direct Matalan & Sports Direct 9
TENANCIES
The property is let to Matalan and Sports Direct in accordance with the
following tenancy schedule, producing a total income of £563,000 pa.
GIA Mez. Term Next Rent Passing Rent Rent
Unit Tenant (sq ft) (sq ft) Lease Start (years) Lease Expiry Review (£ pa) (£ psf)
1 Matalan Retail 34,975 4,559 13/12/2004 25.0 12/12/2029 13/12/2019 £424,350 £12.13
Limited
2 Sportsdirect.com 8,403 6,317 From Completion 10.0 2028 2023 £138,650 £16.50
Retail Limited
43,378 £563,000
From completion of the sale Unit 2 is to be let to Sportsdirect.com Retail
Limited on a 10 year term at an initial rent passing of £138,650 per annum
(£16.50 per sq ft) subject to a rent review at the end of Year 5 to the
A50 DUAL CARRIAGEW PHOENIX RETAIL PARK
higher of Open Market Value or RPI compounded subject to C&C of 1-3%. AY
Assuming a minimum of 2.5% pa RPI indexation the rent per annum will
reach £156,870 (£18.67 psf) at the 2023 review.
Based on the above, the property has a weighted average unexpired lease
term of 11 years.
The property comprises a
LONGTON EXCHANGE
modern purpose built scheme LONGTON TRAIN STATION
totalling 43,378 sq ft GIA across
two units which are occupied
by Matalan and Sports Direct
10 Matalan & Sports Direct Matalan & Sports Direct 11
COVENANT SUMMARY SURVEYS PROPOSAL
A Phase 1 Environmental report has been
carried out by RPS dated September 2018. We are instructed to seek offers in excess of
A copy is available on request.
Matalan was founded in 1985 and is one of the leading
fashion and homeware retailers in the UK. The company
trades from 227 stores throughout the UK.
In July 2018 Matalan released strong results for the weeks
ending May 26, as total revenues grew 5% to £265.9m and
Sports Direct is today the UK’s largest sporting goods
retailer, and operates a diversified portfolio of sports,
fitness, fashion and lifestyle facias and brands.
They operate approximately 700 stores across the UK and
continental Europe. Preliminary results were announced in
EPCs
Unit 1 has an EPC rating of D (77) and Unit 2
of C (56). Copies are available on request.
£8,440,000
(Eight Million, Four Hundred and Forty Four Thousand Pounds)
online sales rose by 39%. EBITDA was up 11% to £24.8m. July 2018 with Group revenue up by 3.5% subject to contract and exclusive of VAT. An acquisition at this level
Matalan Retail Limited (02103564) has a Dun & Bradstreet Sportsdirect.com Retail Limited (03406347) has a Dun &
reflects an Net Initial Yield of 6.25% off the Day 1 income rising
rating of 5A1 with a ‘minimum risk of business failure’.
The table below sets out recent account information:
Bradstreet rating of 5A1 with a ‘minimum risk of business
failure’. The table below sets out recent account information:
VAT to an estimated 6.45% in September 2023 assuming 2.5% pa RPI
indexation on Sports Direct. Purchaser’s costs of 6.68% assumed.
We understand the property has been
Year Turnover Pre Tax Profit Net Worth Year Turnover Pre Tax Profit Net Worth elected for VAT and it is anticipated that the
to Date (000’s) (000’s) (000’s) to Date (000’s) (000’s) (000’s) transaction will be treated as a transfer of a
24/02/2018 £1,062,500 £29,800 £252,600 30/04/2017 £2,220,022 £177,097 £1,273,500 going concern.
25/02/2017 £1,036,100 £10,300 £317,900 24/04/2016 £2,063,255 £302,501 £1,201,706
27/02/2016 £1,060,500 -£20,300 £317,800 26/04/2015 £2,074,126 £262,929 £872,400
DUN & BRADSTREET RATING DUN & BRADSTREET RATING
5A1 WITH A ‘MINIMUM RISK 5A1 WITH A ‘MINIMUM RISK
OF BUSINESS FAILURE’ OF BUSINESS FAILURE’
CONTACTS
For further information please contact:
Cushman & Wakefield Tamsin Layton
43/45 Portman Square
London, W1H 6LY T: 020 7152 5158
M: 07903 054 706
E: tamsin.layton@cushwake.com
Graham Collison
T: 020 7152 5140
M: 07770 921 388
E: graham.collison@cushwake.com
Patrick Knapman
T: 020 7152 5019
M: 07768 825 666
E: patrick.knapman@cushwake.com
Disclaimer
Cushman & Wakefield, as agent for the vendors or lessors of this property, gives notice that: (i) These
particulars are set out as a general outline for guidance only. They do not form any part of an offer or
Acontract and must not be relied upon as statements or representations of fact; (ii) All descriptions,
dimensions, photographs, references to condition and necessary permissions for use and occupation
and other details are given in good faith and are believed to be correct, but intending purchasers or
lessees should not rely on them as statements or representations of fact and must satisfy themselves as
to their correctness; (iii) No person acting on behalf of Cushman & Wakefield has any authority to make
or give any representation or warranty whatsoever in relation to this property. Cushman & Wakefield
accepts no responsibility for any statement made in these particulars; (iv) Any areas, measurements or
distances given are approximate. Unless otherwise stated, all purchase prices, any rents or outgoings
are correct at the date of publication, and unless otherwise stated, are quoted exclusive of VAT; (v)
Images may be computer generated. Photographs show certain parts of this property as they appeared
at the time they were taken; and (vi) Any descriptions given of this property cannot be taken to imply
this property is in good repair, has all necessary consents, is free of contamination, or that the services
and facilities are in working order. Intending purchasers or lessees are advised to carry out their own
investigations. September 2018.
JN 16396.001 / Matalan & Sports Direct
You can also read
