PATRIOT DRIVE, MILTON KEYNES, MK13 8PU - Prime Retail Warehouse Investment Opportunity
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CWD719 WW B&Q 9pg ibro 21/2/12 10:22 Page 1
PATRIOT DRIVE, MILTON KEYNES, MK13 8PU
Prime Retail Warehouse Investment Opportunity
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CWD719 WW B&Q 9pg ibro 21/2/12 10:22 Page 2
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Investment Considerations
• Milton Keynes benefits from an extensive catchment
and shopping population, extending as far as Kettering,
Luton, Bedford and Daventry.
• Milton Keynes is designated as one of the largest
growth towns in the UK and is anticipated to become
the 16th largest city in the country by 2031.
• The subject property is situated in one of the prime
retail warehouse locations in Central Milton Keynes
with nearby retailers including Hobbycraft, Halfords,
Next Home and Pets at Home.
• The property is highly accessible, situated close to an
arterial route roundabout junction, connecting the A5
with the A509.
• The unit totals 119,067 sq ft together with an external
garden centre and builders yard and car parking for
577 vehicles.
• The property benefits from a long unexpired lease
term of over 18.5 years and is let to the secure 5A1
D&B rated covenant of B&Q plc at a rent equating to
£18.50 per sq ft.
• There is asset management potential, downsizing B&Q
and potentially letting to a foodstore operator, subject
to planning or subdividing the unit to create several
further units.
• We are instructed to seek offers for the freehold
interest in the property of £32,031,000 (Thirty Two
Million and Thirty One Thousand Pounds) subject to
contract and exclusive of VAT. This reflects an
attractive net initial yield of 6.50%, based on
purchaser’s costs of 5.80%.
Flint Port Chesterfield Lincoln
Chester
Sutton in Mansfield
Matlock Ashfield
Crewe
Newark-
on-Trent
Wrexham STOKE-ON-TRENT
Newcastle- Ashbourne
under-Lyme Ilkeston Boston
NOTTINGHAM
CWD719 WW B&Q 9pg ibro 21/2/12 10:22 Page 3
Uttoxeter DERBY Grantham
Oswestry Burton upon EAST
Trent MIDLANDS
Stafford Loughborough Spalding
Melton
Newport Mowbray
PATRIOT DRIVE,
Cannock
MILTON KEYNESCoalville Prime Retail Warehouse Investment Opportunity
Shrewsbury Stamford
Telford Lichfield
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & DemographicsTamworth LEICESTER
Retail Warehousing Tenancies Asset Management VAT, Proposal,
Walsall in Milton Keynes Peterborough Potential Further Information
WOLVERHAMPTON March
West Bromwich Nuneaton
Dudley BIRMINGHAM Corby
3 04
A61
A43427)
Location 20
SA
16
A45
2 (A
M6
22 LINFORD
A1
XO
Kidderminster Solihull 1 Kettering A4
COVENTRY
COVENT
COVENTR
RY 19
WOOD
N
3
A14
A50
A4
ST
Lodlow Y
WA
A14
Milton Keynes is located in Buckinghamshire and has
8
RR
A45 18
GR
6
5
KS
A4
2 A4
St Ives
ET
AF
developed into a successful commercial and retailing 17
O N
M
TO
Wellingborough
Wellingborough
N ST
Leamington
A4
centre. The town is strategically situated just 2 miles Y
5
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A5
Northampto
No
Northampton
rthampton
n ED
REET
Droitwich
west of Junction 14 of the M1, 54 miles north west of
15 14
TE
Daventry 09
MA
13 A45
St Neots S
AN A5
16
RL
Leominster
London and 72 miles south east of Birmingham. 15a
A428 D
BOR
15
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A43
A5
12
28
EA PATRIOT
A4
Bedford
OU
TM DRIVE
Milton Keynes enjoys excellent road communications; M1 Newport
Newport ON AY
GH
W
SA
RT
K
A5
Pagnell
A5
XO
the M1 links to both the M6 and M40 motorways and
Great O
08
S
Banbury P
N
Evesham
ST
MILTON CENTRAL
A6
GA
Malvern
the A5 also provides access to London and to the 11
14
Hereford
TE
A43
A42
KEYNES MILTON
A1
outskirts of Birmingham. 30% of the country’s Royston
B&Q
2 13
GR
10
Letchworth
Letchwo
Letchwort
rth
h KEYNES
AF
population are within a 90 minute drive of Milton
T
AY
ON
3
Keynes. Tewkesbury W
A4
9
Leighton
12 Hitchin S
ILD
GA
10 A5
A4
Y
CH
A5
8
TE
WA
4
M40 Buzzarrd
Buzza
Buzzard
Luton
RT
Cheltenham
Milton Keynes also benefits from good rail links with the Bicester 11 7
PO
9
A 41 Bishop's
main railway station providing regular services to 10
Stortford
4
LUTON
A3
Abergavenny AY
Gloucester Aylesbury 9 6
W
a large number of destinations including London
SA
ON
St 5
Harlow W
FR
WAY
(36 minutes), Birmingham (55 minutes), Manchester A40
Oxford
Oxfo
Oxforrd Albans 3
4
AT
AF
A4
8
L
(1 hour 38 minutes) and Edinburgh (4Stroud
CH
IN
1
AY
hours 40 minutes). A4
Hoddesdon
A413
IL D S
0 Thame 7 2 G
W
1
Cirencester 8
ST
RT
7 22
A4010
CH
PO
20
GR
A420 Abingdon High 19 5
AF
Cwmbran 6
Wycombe
Wycombe 18
TO
Chepstow 5
17 4
FU
N
LM
ST
4 2 ER
3
2 ST
Newport 1
A40 1
06
Swindon Henley- CITY
on-Thames Slough LONDON
Woolwich
CARDIFF LYNEHAM
Reading Windsor
Chippenham Richmond
HEATHROW
BRISTOL Bracknell Kingston
Barry Newbury upon Thames
Weston- Bath Sutton Croydon
super-Mare BRISTOL Camberley Epsom
Trowbridge
Basingstoke
Burnham-on-Sea Redhill
Oxted
Frome Warminster Andover Farnham
Alton GATWICK East
Crawley Grinstead
Bridgwater
Salisbury Haslemere
Winchester Horsham
Taunton Haywards
Romsey Heath
Eastleigh Petersfield
Yeovil
CWD719 WW B&Q 9pg ibro 21/2/12 10:22 Page 4
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Catchment & Demographics
M1
Milton Keynes was designated a New Town in 1967 and is one of the fastest growing towns in the UK. A43
A6
The town has a primary catchment population of 709,000 people (PMA). CACI predict there are 201,000 and 310,663 OLNEY A428
people living within a 10 and 20 minute drive time of the subject property respectively. TOWCESTER
A509
Milton Keynes has been identified by the Government as one of the 3 potential growth centres in the south east (the A508
others being Ashford and the Thames Gateway). The population is anticipated to double in size by 2026 and by 2031
Milton Keynes is estimated to be the 16th largest city in the country. A5 NEWPORT
PAGNELL
PMA estimate that the shopping population totals 465,000 people, ranking the town 11 out of the top 200 PMA centres.
Due to its location and lack of proximity to towns with a comparable and competitive retail offer, it is considered Milton A413 A422
Keynes benefits from a captive catchment which extends far beyond the defined primary catchment area, extending as far A500 M1
as Kettering to the north, Luton and Aylesbury to the south, Bedford and Sandy to the east and Daventry to the west. MILTON
B&Q KEYNES A507
Milton Keynes also benefits from an affluent catchment population as demonstrated below:
BUCKINGHAM
Affluence Indicators Milton PMA Regional PMA Retail Top 200 A421
Keynes Centre Average Centre Average
AB (most affluent) Social Structure 2001 % adult population 31 28 25 A4146 A5
Car ownership of 2+ cars % of households 41 33 30
Owner occupiers % of households 75 72 70
Total in-store comparison retail expenditure 2011 (£m) £1,807 £1,632 £821 10 minute drive time
LEIGHTON M1
Per capita in-store comparison expenditure £2011 £2,548 £2,472 £2,392
20 minute drive time
A413 BUZZARD
Per capita retail warehouse expenditure £2011 £523 £494 £476 A4146
Milton Keynes has attracted a significant amount of investment and employment to the area. Several national and
global firms are located in the city; both Volkswagen and Mercedes-Benz have their UK HQs here, Santander is one of the
largest employers in Milton Keynes and Network Rail is relocating its work force here in July, to establish a “national hub”
accommodating over 3,000 staff in new offices close to Milton Keynes station. Other employers in the area of note include
The Open University, The Foreign & Commonwealth Office and Unisys.
Amazon.co.uk, Coca Cola Enterprises, NYK Logistics and DHL Exel also all have large distribution centres on the outskirts of
Milton Keynes, close to both Junctions 13 and 14 of the M1.
Growth in employment from 2010 – 2016 is estimated to be 0.3% per annum in Milton Keynes, above the PMA average
of 0.1% per annum. The quality of employers and large number of managerial and routine based office jobs resulted in
total average earnings in Milton Keynes being £437 per week, above the GB average of £400 per week.
CWD719 WW B&Q 9pg ibro 21/2/12 10:22 Page 5
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
A509
B5
26 Situation
The subject property is situated in a highly accessible location in one of the main retail
A422 warehousing pitches within Central Milton Keynes. Access to the property is via Patriot Drive
which leads to Grafton Street, a dual carriageway linking to the A5, close to the roundabout
junction connecting to the A509. The A509, which bounds the property to the south, runs
east/west across the town and joins the A5 and the M1.
A 5 09
Patriot Drive also provides access to Central Retail Park which has recently been refurbished.
Occupiers here include Next Home, Halfords, Dwell, Comet, Hobbycraft and Pets at Home.
A42
2
14
B4
Opposite this is Rooksley Retail Park.
03
4
A509
Central Retail Park & On the opposite side of the A509 to the south, is The Place Retail Park occupied by retailers
A4
22 Rooksley Retail Park M1 including Currys, Brantano, Carphone Warehouse, American Golf and McDonald’s.
A5
A4
13
B4
14
0
03
Milton Keynes Station and Milton Keynes Shopping Centre are also in close proximity, being
6
09
4
A5 Milton Keynes
(T A5 Kingston Centre
) Shopping Centre 0.8 miles south and 1.2 miles east respectively. There is also a substantial amount of housing
A4146
nearby.
The Place
Retail Park A421
CENTRAL
B4034
Homebase MILTON Retail Warehousing in Milton Keynes
KEYNES A4
21
A5
130
The majority of retail warehouse supply in Milton Keynes is located outside the main town
A4 1
Winterhill Retail Park &
A5
B4 centre itself in suburbs including Bletchley and Kingston.
46
1
Cairngorm Retail Park
(T)
A42
03
Stadium Retail Park
4
IKEA, Asda & DW Sports WOBURN Within the town centre there are 2 main retail warehouse locations, of which the subject
A4
Routeco Retail Park SANDS
21
A5(T)
146
property is situated in one, which also contains Central Retail Park, Rooksley Retail Park and
B 40
A4
The Place Retail Park. The other principal pitch is within the Winterhill District, 1.4 miles south
34
Beacon Retail Park
21
east of the subject property, where Winterhill Retail Park, Cairngorm Retail Park and Routeco
A4
Rushmere Retail Park Retail Park are located.
B&Q
34
21 B4
0
A4 Bletchley lies 4.5 miles south east of the subject property. Here there is Beacon Retail Park,
BLETCHLEY
Rushmere Retail Park, an IKEA store, a DW Sports unit, an Asda foodstore and Stadium Retail
Park, which is currently under construction.
In terms of DIY competition in Milton Keynes, there is a 36,500 sq ft Wickes unit on Routeco
Retail Park and a standalone Homebase unit of 81,675 sq ft located nearby. In Bletchley,
opposite Beacon Retail Park there is a standalone 39,400 sq ft unit let to B&Q. The subject
property is considered the dominant DIY unit in the town, by nature of it’s size, location and
the operator.
CWD719 WW B&Q 9pg ibro 21/2/12 10:23 Page 6
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Description
The property was developed in 2005 and provides a
modern purpose built retail warehouse unit, totalling
119,067 sq ft gross internal area. There is also an
external garden centre area of circa 30,000 sq ft and a
builders’ yard of approximately 20,000 sq ft.
The building is of steel frame construction with the
main elevations being clad with attractive masonry
below ‘microrib’ cladding panels.
Internally the building is fitted to the tenant’s
specification with the unit benefiting from both an
external garden centre area and a builders yard. The
main floor is dedicated to retail sales and provides
access to both external compounds. The ground floor
totals 117,000 sq ft and there is also a first floor
amenity area totalling 2,067 sq ft, providing offices
and ancillary accommodation.
The unit is well configured, virtually exactly to B&Q’s
ideal warehouse format. Furthermore the frontage to
depth ratio allows the unit to be easily subdivided.
The scheme is serviced by a demised open
tarmacadam surfaced car park, which provides 577
spaces, giving an ample car parking ratio of 1:206 sq ft.
The dedicated service yard is situated to the rear of
the unit and is accessed separately and segregated
from the customer car park.
We calculate the site area extends to approximately
10.99 acres (4.45 hectares), giving a low site cover of
24.86%.
CWD719 WW B&Q 9pg ibro 21/2/12 10:23 Page 7
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Tenure
The property is held freehold and the site area
is delineated right in red.
Tenancies
The property is let to B&Q plc on a full
repairing and insuring 25 year lease from
21 October 2005. The unexpired term is just
over 18.5 years, as at March 2012.
The lease states that at review the property is
assumed to have a ground floor gross internal
area of 117,000 sq ft and a first floor gross
internal area of 2,067 sq ft, providing a total
area of 119,067 sq ft.
The passing rent totals £2,202,739.50 per
annum, reflecting £18.50 per sq ft, with the
next rent review being due on 21 October
2015, with 5 yearly upward only rent reviews
thereafter.
CWD719 WW B&Q 9pg ibro 21/2/12 10:23 Page 8
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Planning
The property was originally granted planning permission
in 2004 for ‘the erection of a non-food retail unit
(Class A1) including garden centre, bulk store, car
parking, landscaping and associated works and
construction of a new vehicular and pedestrian
access to highway’.
There is a Section 106 Agreement, which restricts the
sale of retail goods to certain goods including (but not
limited to) the following, unless prior consent of the
Council is obtained:
• DIY
• Electrical and gas appliances
• Furniture
• Floor coverings
• Soft furnishings
• Car parts / bicycles
• Hobby / craft goods
• Pets and pet products
• Office equipment
• Camping / boating equipment
Therefore, we consider the property to benefit from a
wide bulky goods consent.
The unit can be subdivided into a maximum of 6 units
with a minimum gross internal area of 10,000 sq ft.
Asset Management Potential
We believe B&Q are happy with their store and have no plans to downsize. However, it is considered in the medium term there may be the
opportunity to agree a downsize with B&Q to provide a smaller unit of circa 60,000 sq ft. With the planned expansion and growth of Milton
Keynes, we anticipate there being further demand from retailers wanting to gain representation here. We are also aware of demand in Central
Milton Keynes from several of the major foodstore operators who could potentially take part of this store, subject to planning.
The unit benefits from being well configured and easily subdivisible and the Section 106 Agreement also enables it to be split into 6 units of
10,000 sq ft and over. The garden centre and builders yard present the opportunity to be developed on. There is also ample car parking to
cater for increased footfall here.
CWD719 WW B&Q 9pg ibro 21/2/12 10:23 Page 9
PATRIOT DRIVE, MILTON KEYNES Prime Retail Warehouse Investment Opportunity
Investment Location Catchment Situation Description Tenure Planning Tenants’ Covenants,
Considerations & Demographics Retail Warehousing Tenancies Asset Management VAT, Proposal,
in Milton Keynes Potential Further Information
Tenants’ Covenants Proposal
B&Q is the largest operator in the UK DIY and gardening market, trading from over 320 stores across We are instructed to seek offers for the freehold interest in the above property of £32,031,000
the UK. B&Q are part of the Kingfisher Group, the third largest DIY chain in the world, who have (Thirty Two Million and Thirty One Thousand Pounds) subject to contract and exclusive of VAT.
extensive operations in Europe and the Far East. This reflects an attractive net initial yield of 6.50%, based on purchaser’s costs of 5.80%.
B&Q plc, the main trading company for the fascia, has a current Dun & Bradstreet rating of 5A1.
We summarise below B&Q’s most recent accounts:
Further Information
YEAR ENDING SALES TURNOVER PRE TAX PROFIT NET WORTH D&B RATING
(000s) (000s) (000s)
Paul Wilkinson
29/01/2011 £3,711,700 £144,700 £3,656,700 Tel: 020 7317 3799
Mob: 07770 585 313
30/01/2010 £3,792,400 £400,400 £3,476,400 5A1
Email: p.wilkinson@wilkinsonwilliams.co.uk
31/01/2009 £3,683,300 £113,700 £3,240,400
Ellie Kirkby
Tel: 020 7317 3790
VAT Mob: 07764 241 898
Email: e.kirkby@wilkinsonwilliams.co.uk
The property has been elected for VAT purposes.
Wilkinson Williams,
Heathcoat House, 20 Savile Row, London, W1S 3PR
www.wilkinsonwilliams.co.uk
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.
Designed and Produced by Creativeworld. Tel 01282 858200. February 2012.
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