Prime Retail Warehouse Investment - Net Initial Yield 12% - Savills
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CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN
Prime Retail Warehouse Investment
Net Initial
Yield 12%
www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 03
Investment Summary
• Located at Sprucefield Regional Centre, 2.5 miles South of
Lisburn City Centre which is one of the constituent cities that
make up the Dublin-Belfast corridor region with a population
of just under 3 million.
• Prime single let retail warehouse investment situated in
Sprucefield which is regarded as one of Northern Ireland’s
leading out-of-town retail destinations.
• Let to DSG Retail Limited t/a Currys/PC World on a full
repairing and insuring lease from 11th November 2010
at a rent of £1,149,500 pa until 10th November 2025.
We are instructed to seek offers in excess of
• Unexpired lease term of 5.19 years. £8,980,000 (Eight Million, Nine Hundred and Eighty
Thousand Pounds Sterling) for our client’s virtual
• DSG Retail Limited has a Dun & Bradstreet credit rating
of 5A1 representing an excellent covenant with secure
freehold interest excluding VAT. A purchase at this
financial strength and low overall business risk. level would reflect a net initial yield of 12.00%
assuming purchasers’ costs of 6.68%.
• The unit extends to 52,591 sq ft (4,885.85 sq m) GIA
with 154 car parking spaces and was comprehensively
refurbished in 2010.
• Site area of 3.21 acres (1.30 hectares).
• Held virtual freehold.
www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 03 Location and Communications www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 04
Location and Communications
LOCATION COMMUNICATIONS
Lisburn is Northern Ireland’s third
largest city with a population of ROAD
71,465 people (2011 Census) and Coleraine
Road Communication links to the property are excellent. The property
is located 0.3 miles (0.48 km) east of the M1/A1 motorway junction
the seventh largest on the Island A37
which is the main road linking Belfast (15 minute drive time) to Dublin
(1 hour 30 minutes’ drive time) and the West of Northern Ireland.
of Ireland. Lisburn is one of the Londonderry A26
constituent cities that make up A6
Ballymena
the Dublin-Belfast corridor region Larne
which has a population of just RAIL
Northern M22 M2
The property is 2.6 miles (4.2 km) south of Lisburn Railway Station
under 3 million Ireland
M3
Bangor
providing direct links to Dublin city Centre (journey time of 1 hour
Belfast
Omagh
A5 45 minutes), Belfast city Centre (journey time of 20 minutes) and the
The city also forms part of the Belfast M1 Lisburn
Northern Ireland Railway Network
Metropolitan Area with a total of 672,522
Enniskillen
people accounting for 37% of Northern Armagh
A1
A4
Ireland’s population and is the main
employment centre within the Province AIRPORT
(2011 cenus). Monaghan
Newry The property is within close proximity to numerous airports providing
regular direct flights to the United Kingdom, Europe, and international
Lisburn has excellent communication destinations. Belfast City Airport is located 14 miles (22.5 km) to the
northeast, Belfast International Airport 16 miles (25.7 km) to the
links being located on the main motorway N2 Dundalk
northwest and Dublin Airport 88 miles (141.6 km) to the South.
network. The M1 is the main arterial route
between Belfast and the central and western Southern
Ireland N1
areas of Northern Ireland while the A1
provides motorway access to Dublin.
N4 Drogheda
BUS
The property and immediate area are well serviced by several bus
routes. In addition, there is a Park and Ride located at Sprucefield Park.
N6
Dublin
www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 05
Situation & Demographics
SITUATION DEMOGRAPHICS
The property forms part of Sprucefield Regional Centre which Lisburn attracts consumers from an extensive catchment that
is situated 2.5 miles (4.0 km) south of Lisburn city centre with a includes much of County Down as well as large parts of County
5 minute drive time and 10 miles (16.0 km) due south of Belfast Armagh, County Tyrone and County Antrim.
city centre with a 15 minute drive time at the junction of the M1
and A1 motorways. The wider Secondary and Tertiary catchments mark the full extent of Lisburn’s
reach consisting of 248,000 and 798,000 people respectively. Meanwhile, the primary
catchment describes the supply of consumers immediately surrounding Lisburn and
The Sprucefield Regional Centre includes Sprucefield Park which is located to the
consists of 71,465 people. This considerable consumer base results in a considerable
north and Sprucefield Centre which is located to the south. The Currys site adjoins the
pool of retail expenditure of more than £1.47bn, £4.66bn and £336m within these
Sprucefield Centre with a gateway connecting the two parks internally. A brand new
three catchments.
Costa Coffee unit will be located adjacent to the Currys unit which shares an access road.
By 2023 the catchment population is estimated to increase by 2.5%
(15 minute drive-time) with an increase of 4.8% estimated by 2028 (CACI Limited).
The immediate catchment boasts an affluent profile, with those categorised
in the top Acorn Group ‘Affluent Achievers’ 14% above the UK average
(within a 10 minute drive-time).
The catchment has an above average proportion of employees (55.4%) in either
full-time or part-time employment compared to the national average (53.8%).
Sprucefield provides over half
There is an above average representation of the population within the
a million sq ft of prime food
top two Social Grade categories (AB & C1), accounting for 53.5%.
and core shopping provision
www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 06
Site Plan
Lisburn (2.6 Miles)
Belfast (10 Miles)
M1
Sprucefield
Park & Ride
West of N.Ireland
Sprucefield Park
Sprucefield Centre
North
Dublin (88 Miles)
www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 07
Retailing at Sprucefield
The Sprucefield Regional Centre is regarded as one of the
strongest out of town retail locations in Northern Ireland.
Sprucefield comprises two elements; to the south of the
Sprucefield roundabout is the Sprucefield Centre, which is
owner occupied by Marks & Spencer and was opened in 1989.
The Marks & Spencer store was extensively renovated and
extended in 2007 to provide a major Marks & Spencer food
and clothing store with a further furniture store and restaurant.
Adjacent to the Marks & Spencer is a retail parade occupied by Boots, Next
and Pets at Home. In addition, located within the car park area is a stand-alone
McDonald’s drive-through restaurant. The centre provides 1,500 free car
parking spaces.
To the north of the Sprucefield roundabout is Sprucefield Park comprising
230,000 sq ft of retail warehousing accommodation which was opened in 2003.
This is occupied by a major B&Q store, with units also let to B&M, Argos, Next
Home, and a major Sainsbury’s food store.
The Sprucefield Regional Centre as a whole therefore has a particularly strong
comparison goods offer, as well as some key fashion retailers, a strong home
improvement retail offer along with grocery and complimentary food and drink
leisure service outlets.
Sprucefield is considered Northern Irelands
premier retail warehouse destination.
www.savills.ieCURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 08
Property Description
The property was originally constructed in 1994 as two purpose built ACCOMMODATION
retail warehouse units. However, the building was comprehensively The property has been measured in accordance with the RICS Code of Measuring
refurbished in 2010 and merged into one single unit, following the Practice (6th Edition) and provides the following Gross Internal Area:
merger of the two former tenants Currys and PC World. The property
SITE AREA
measures 52,591 sq ft (4,885.85 sq m) with 154 car parking spaces
provided to the front and side of the unit. Use Sq Ft Sq M
The property is of steel frame construction with a concrete floor and half brick/half-clad Retail Warehouse 52,591 4,885.85
external walls with double height double glazing to the front entrance. All the retail
accommodation is provided at ground level and internally the accommodation has Car Parking 154 Spaces
been fitted out to incorporate Currys/PC World’s shop fitting and branding.
The site extends to 3.21
The vehicular access to the property is from Hillsborough Road leading from the acres (1.30 hectares). The
Sprucefield Centre roundabout and this is a shared access with the Costa Coffee unit. site is generally square in
There is also an access from the subject property’s car park direct to the Sprucefield shape and flat in topography.
Centre via an informal agreement.
PLANNING
The unit was developed under planning consent S/1993/0666 granted on
the 18th October 1993 and was refurbished in 2010 under planning reference
S/2010/0133/F granted on the 19th April 2010. Planning currently permits
the retail sale and ancillary storage of the following types of goods:
a. DIY materials, products and equipment;
b. Garden materials, plant and equipment;
c. Furniture and soft furnishings, carpets and floor
coverings and electrical goods;
d. Such other items as may be determined in writing by the
Department as generally falling within the category of “bulky goods”.
www.savills.ieCURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 09 Tenant Details The property is let in its entirety to DSG Retail Limited under the below lease terms: Tenant Start Date Review Date Expiry Date Rent (pa) DSG Retail Limited 11/11/2010 11/11/2020 10/11/2025 £1,149,500 COVENANT STRENGTH Dixons Carphone is one of the largest consumer electronics retailers in Europe employing over 42,000 people in 9 countries. In the UK and Ireland, the company operates 8 brands including Currys PC World, Carphone Warehouse, Knowhow, Geek Squad and Dixons Travel. DSG Retail Limited has a Dun & Bradstreet rating of ‘5A1’ representing an excellent covenant with secure financial strength and low overall business risk. Their accounts can be summarised as follows: DSG Retail Limited YE 27/04/2019 YE 28/04/2018 YE 29/04/2017 Sales/Turnover £4,387,100,000 £4,344,000,000 £4,345,700,000 Gross Profit / (Loss) £311,000,000 £345,400,000 £408,100,000 Profit / (Loss) before Taxes £105,900,000 £142,900,000 £247,600,000 Net Profit / (Loss) £99,700,000 £132,400,000 £198,600,000 www.savills.ie
CURRYS/PC WORLD | 153 HILLSBOROUGH ROAD, SPRUCEFIELD, LISBURN, BT27 5UN 10
We are instructed to seek offers in excess of £8,980,000 (Eight Million, Nine Hundred and Eighty
Thousand Pounds Sterling) for our client’s virtual freehold interest excluding VAT. A purchase at
this level would reflect a net initial yield of 12.00% assuming purchasers’ costs of 6.68%.
TENURE DATA SITE
The property is held by way of a long leasehold of 10,000 years from 9th July 1993 at A secure website with additional supporting information is available in addition to the
a ground rent of 5p per annum. The property benefits from a right of way connecting brochure and access will be granted via a request through the vendors agents.
the site to the Sprucefield centre roundabout.
VAT
EPC The property has been elected for VAT. It is envisaged the
The building has been rated (B47) under EPC regulations. transaction will be treated as a TOGC
More Energy Efficient
Net zero CO2 emissions
A 0-25
B 26-50 47 This is how energy efficient
the building is.
C 51-75
D 76-100
E 101-125
F 126-150
G Over 150
Less Energy Efficient
CONTACT
Ben Turtle Megan Houston
Landline: +44 (0)28 9026 8006 Landline: +44 (0)28 9026 7826
Mobile: +44 (0)78 9984 6717 Mobile: +44 (0)75 8309 7723
Email: ben.turtle@savills.ie Email: megan.houston@savills.ie
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