COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT
KEY INVESTMENT CRITERIA n Plymouth ranks 1st in the UK PMA competition index and has the highest spend retention of any retail centre in the UK. WAULT of 9.6 years to expiry, no breaks. n n Prominently situated at the Junction of the A38 and Plymouth road, the principal route into the city centre. n Retail warehouse units let to ScS & Oak Furniture Land on new leases. n Drive Thru unit let to McDonald’s on a reversionary lease until 2031. Freehold. n McDonald’s Drive Thru reflects a low n passing rent of £28.23 psf. We are seeking offers in excess of £6,720,000, subject to contract and exclusive of VAT. A purchase at this level will reflect the following attractive yield profile: Net Initial Yield 7.47% Equivalent Yield 7.69% Reversionary Yield 7.73% (after allowing for purchaser’s costs of 6.53%).
M5 A38
CARDIFF BATH A350
BRISTOL
WESTON-SUPER-MARE A36
BRISTOL CHANNEL A37
A39 A361
MINEHEAD M5 A36
GLASTONBURY
EXMOOR
BRIDGE WATER A361
LOCATION
NATIONAL PARK
A37
BARNSTAPLE A303
TAUNTON A350
A361
Plymouth is located on the south coast of A39 WELLINGTON YEOVIL
Devon, approximately 220 miles (382 km) A303
A377
south west of London, 121 miles (194 km) A386 A37
A30
south of Bristol, 45 miles (72 km) south west A39
M5
A354
of Exeter and 55 miles (88 km) east of Truro. A35
A30
EXETER EXETER
DORCHESTER
Plymouth is located on the A38 dual LAUNCESTON WEYMOUTH
A395 A386 EXMOUTH
carriageway, which connects with the M5 at DARTMOOR
NATIONAL PARK
A380
Exeter and is the main thoroughfare to the A39
A30
A388
south west. A38
TORQUAY
A386 A385
NEWQUAY A30 A38
The city has a mainline railway station with A391
PLYMOUTH
PLYMOUTH DARTMOUTH
a journey time to Bristol (Temple Meads)
A39
of 2 hours and to London Paddington of TRURO
PLYMOUTH
3 hours.
A39
ENGLISH CHANNEL
FALMOUTH
PENZANCE
Exeter International is the nearest major
airport approximately 48 miles (77 km) away.
Plymouth is home to the largest operational CATCHMENT
naval base in Western Europe as well as
being an important commercial shipping Plymouth has a primary catchment population of 471,000 people. PROMIS estimate
port. It is the largest conurbation on the the shopping population of Plymouth to be 359,000 people, 21st of all 200 PROMIS
south coast and is the principal commercial centres in this respect.
and administrative centre for Cornwall and
South Devon. There is a strong service-based Plymouth is dominant within its catchment and is classified as a Regional Centre.
economy with major employers including It is ranked 1st in the UK PMA competition Index and has the least competition of
Royal Mail, Land Registry, BBC and the any retail centre in the UK. This is further evidenced by the closest competing retail
University of Plymouth. centres being Paignton (29 miles), Torquay (30 miles) and Exeter (45 miles). As a
result, spend retention is one of the highest in the UK at circa 93%.
Consumer spending in Plymouth is boosted by tourism and the student population,
“Plymouth ranks with an estimated 11.8 million domestic and foreign visitors to the city annually,
contributing approximately £360 million to the city’s economy. In addition,
1st in the UK PMA Plymouth has a student population of approximately 60,000 which is the fifth
largest in the country and is estimated to contribute £100m to the city’s retail
Competition Index” economy annually.
SITUATION
The subject property forms part of Coypool
Retail Park which is made up of three separate
retail warehouse clusters, located approximately
3 miles north east of the City Centre.
Coypool Road is close to the junction of the
A38 (also known as the Devon Expressway) and
Plymouth Road, the two principal roads into the
City Centre from the East.
Coypool Retail Park is one of Plymouth’s
principal retail warehouse destinations with
no current voids. Other occupiers at Coypool
Road include Harvey’s, Bensons for Beds, Jollyes
TRIUM
WOOD
and B&M. The former B&Q store is currently
being redeveloped for occupation by Furniture
COYP
FORD C
PH
A
World, Dreams and HBH Woolacott (Electrical
CO
LC
OOL
RES
YPO
Superstore).
. L
O
RD.
L RD
The subject property is located on the entrance
.
into Coypool Retail Park and benefits from
maximum prominence to Plymouth Road. COYPOOL
RETAIL PARK
COYPOOL R
COYPOOL RD. W
OO
DF
OR
D. D
CR
.
RD
ES
“Coypool Retail
.
E
DG
RI
To be
B
Park is one of
NG
E
.
LO
AV
ND
Plymouth’s principal PLYMOUTH
RD.
WO
OD
LA
retail warehouse PLYMOUTH RD
.
PLY
destinations with no MO
UT
H RD
.
current voids.”
MARSH MILLS
PHASE 1
MARSH MILLS
PHASE 2
PLYMOUTH
DEVON EXPRESSWAY GATEWAY
COYPOOL
RETAIL PARK
To be
DESCRIPTION “ScS and Oak Furniture Land
The subject property consists of two units constructed let on new leases, McDonald’s
in 1992 with a steel portal frame with brick elevations
steel cladding. Both Units A & B benefit from an internal rent is reversionary.”
mezzanine built in 2004. A purpose built Drive Thru unit
was built two years later and has since been extended due
to the tenant over-trading from this location.
Units A & B benefit from a service yard to the rear with
dedicated access off Coypool Road.
There are approximately 138 car parking spaces in total,
a ratio of 1:241.
The total site area is 1.146 Ha / 2.832 acres.
PLANNING
Original planning consent was granted November 1992 for
the erection of “two non-food retail units with associated
parking, servicing arrangements and sewage treatment
plant”. Units A & B benefit from a wide bulky goods
planning consent which include the sale of DIY goods,
garden items, furniture, carpets and electrical items.
In April 1994 consent was granted for the erection of
a fast food restaurant and take away.
Further planning information available on request.
SERVICE
YARD
Plan for indicative purposes only.
TENANCIES & ACCOMMODATION
Passing Passing
Address Tenenat Trading Fascia Lease Start Lease Expiry Next Review GIA (sq ft) Rent (pa) Rent (psf) ERV (pa) ERV (psf) Comments
Internal mezzanine extending 11,968 sq ft
Unit A A Share & Sons Ltd ScS 14/10/2016 13/10/2026 14/10/2021 15,067 £229,329.50 £15.22 £229,329.50 £15.22
(not rentalised)*
Internal mezzanine extending 12,327 sq ft
Unit B JB Global Ltd Oak furnitureland 20/09/2016 03/06/2025 04/03/2020 15,626 £234,825 £15.03 £234,825 £15.03 (not rentalised). Rent at review to be capped at 2.5%
per annum compounded.*
Restaurant McDonald’s 12 year reversionary lease from 29/09/2019.
McDonald’s 29/09/2019 28/09/2031 29/09/2019 2,577 £72,750 £28.23 £90,000 £35.00
Premises Restaurants Ltd Day 1 upward only rent review and 5 yearly thereafter.
Total 33,270 £536,904.50
*Rent free to be topped up by the vendor.
“WAULT of 9.6 years”
RENTAL COMMENTARY
The supply of retail warehouse accommodation DRIVE THRU UNIT
in Plymouth is limited for a city of its catchment The most recent open market rental evidence in the
and consequently there have been few vacancies. town are the pre-lettings on Plymouth Gateway to
Rents on Coypool Road have historically been at Costa on 1,800 sq ft at £50 psf and to KFC on 4,083
a discount to both Marsh Mills and Friary Retail sq ft at £35 psf. Costa also occupy 1,775 sq ft on
Park, offering affordable options to bulky goods Phase 1 at Marsh Mills at a rent reflecting £40.85
retailers. The two retail warehouse units within psf from November 2014.
the subject demise were both let within the last
6 months and are in our opinion rack rented, but We are of the opinion that the McDonald’s unit has
offer excellent future rental growth prospects as an estimated rental value of £90,000 per annum
demonstrated by the recent letting to Dreams. based on £35 psf.
The Dreams unit will extend to 5,000 sq ft, and
is being carved out of the former B&Q store, of
which the freehold has been acquired by a JV
between HBH Woolacott (Electrical Superstore)
and Furniture World for owner occupation.
Dreams have agreed a new 10 year lease at a rent
reflecting £18 psf net of 2 years at half rent.
CROWNHILL RETAIL PARK WOOLWELL
TAMERTON
Ownership: FOLIOT
Royal London Asset
Management. A386
Tenants Include: B&Q, M&S Simply Food,
Pizza Hut and KFC.
RETAIL WAREHOUSE PROVISION
Coypool Retail Park is an established retail warehouse location,
close to Marsh Mills and the newly consented Plymouth
Gateway. The principal schemes in Plymouth are identified on
WHITLEIGH DERRIFORD the map and outlined below:
MARSH MILLS RETAIL PARK
Ownership: (Phases I&II) – Universities
Superannuation Scheme. MARSH MILLS RETAIL PARK
A386
Tenants Include: Homebase, Wickes,
PC World, Catpetright, DFS, Furniture
This two-phase scheme has a restricted bulky goods planning
Village, Halfords, Next Home, consent and is regarded as Plymouth’s principal bulky offering.
CROWNHILL Bathstore.com, Carphone Warehouse Phase I & II extends to 157,339 sq ft. Rents range from £20-28
and Costa. psf (depending on size of unit) although due to no vacancies,
LEIGHAM
there have been no recent open market lettings.
PENNYCROSS
HARTLEY A38
EGGBUCKLAND COYPOOL PLYMOUTH GATEWAY
RETAIL PARK
Restricted bulky goods consent for 55,000 sq ft. We understand
rents range from £22-25 psf on the larger units and £35-£50 psf
PEVERALL
A386 on the food outlets. The scheme is due to open in Spring 2018.
CRABTREE PLYMPTON
CENTRAL
PARK
FRIARY RETAIL PARK
SALTRAM
Located adjacent to the City Centre, this is an Open A1 non-
HOUSE food park extending to circa 80,000 sq ft built in 1990 and
subsequently redeveloped in part in 2013 and 2015. Rents on
PLYMOUTH
the park range from £16-27.50 psf dependant on the size of
the units.
A374 SALTRAM
HOUSE
STONEHOUSE CATTLEDOWN CROWN HILL RETAIL PARK
BILLACOMBE
A bulky good’s scheme located further north of Plymouth City
PLYMOUTH GATEWAY Centre which extends to 134,238 sq ft.
FRIARY RETAIL PARK LAIRA BRIDGE RETAIL PARK
Ownership: Plymouth City Council RETAIL PARK Ownership: Ediston Real Estate
(acquired from AXA in November Ownership: Columbia
(secured planning consent in August
2016 for £23.4 million / 6.7%). MOUNT BATTEN Threadneedle Investments.
2016).
ELBURTON
LAIRA BRIDGE RETAIL PARK
Tenants Include: Dunelm, Pets at Tenants Include: PLYMSTOCK The scheme has Open A1 planning consent and extends
Tenants Include: Pre-lets agreed with
Home, Poundland, Poundstretcher, Carpetright/Go-Outdoors.
Mothercare, Wren Kitchens, Tapi to 58,844 sq ft.
Smyths Toys, Hobbycraft and Costa.
Carpets, Sofology, KFC and Costa.
COVENANT
JB GLOBAL LTD (05573571) A SHARE & SONS LTD (00323778) MCDONALD’S RESTAURANTS LTD (01002769)
Oak Furniture Land was founded in 2004 with an online SCS was established in 1894 as a family owned furniture McDonalds is the world’s largest chain of quick service
platform and now trades from 75 stores throughout the store and has grown to 100 stores throughout the UK, with restaurants, serving tens of millions of customers daily
UK. There are a further 25 stores planned for the next 2 36 concessions in the House of Fraser department store. worldwide. There are over 1,200 stores in the UK alone with
years. Furthermore, there is planned expansion into the US In January 2015, ScS Group Plc joined the London Stock plans for a further 30 new stores per year, with the primary
this year moving from their current online platform to both Exchange. The company released their half year results vehicle for expansion being Drive Thru restaurants.
‘bricks and clicks’. in January this year, with gross sales up 14.1% from the
previous year.
30/09/2015 20/09/2014 30/09/2013 30/07/2016 25/07/2015 26/07/2014 31/12/2015 31/12/2014 31/12/2013
(£000's) (£000's) (£000's) (£000's) (£000's) (£000's) (£000's) (£000's) (£000's)
Turnover 239,269 191,516 145,543 Turnover 317,305 276,734 258,206 Turnover 89,566 87,383 87,333
Pre-tax Profit 6,506 11,032 7,095 Pre-tax Profit 11,736 4,488 5,000 Pre-tax Profit 304,122 48,958 37,871
Tangible Net Worth 8,750 14,250 11,869 Tangible Net Worth 36,426 33,312 25,089 Tangible Net Worth 109,269 302,087 253,129
D&B Rating 3A 2 D&B Rating 5A 2 D&B Rating 5A 1
TENURE EPC
The property is owned freehold. A full copy of EPC’s are available upon request. A purchase at this level will reflect the
following attractive yield profile:
VAT PROPOSAL Net Initial Yield 7.47%
It is understood the property is elected for Equivalent Yield 7.69%
We are seeking offers in excess of £6,720,000,
VAT and will be treated as a Transfer of a subject to contract and exclusive of VAT. Reversionary Yield 7.73%
Going Concern.
(after allowing for purchaser’s costs of 6.53%).
FURTHER INFORMATION
For further information please contact:
7-10 Chandos Street
Fiona Nichols Oli Horton Alex Matthews London W1G 9DQ
T: 020 7647 4809 T: 020 7647 4806 T: 020 7647 4827 T: 020 7408 0030
M: 07817 676 763 M: 07788 695 859 M: 07776 209 571 F: 020 7495 4248
fiona.nichols@gcw.co.uk oliver.horton@gcw.co.uk alex.matthews@gcw.co.uk www.gcw.co.uk
Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars
by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC376010. Registered office: 30 City Road, London EC1Y 2AB. GCW: April 2017.© Produced by Barbican Studio T: 020 7634 9573You can also read
