Prime Town Centre Retail Investment - Unit 11-15, Portland Walk
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Unit 11-15, Portland Walk Prime Town Centre Retail Investment
Investment Summary
• Barrow-in-Furness is the second largest urban centre in Cumbria
• Prime trading position within Portland Walk
• Multi let to three national retailers; Debenhams, The Body Shop
and WH Smith as well as one vacant unit
• Modern well configured retail units
• WAULT of approximately 4.2 years
• Opportunity to re-gear the leases and improve the yield profile
upon letting the vacant unit
• Opportunity to increase the car park rent from a peppercorn rent
to Market Rent, upon expiry of the current lease
• Freehold
Proposal
Net Income: £618,350 per annum
Offers in the region of: £4,640,000 (subject to contract)
Net Initial Yield: 12.50%
Barrow-in-Furness – Unit 11-15, Portland Walk 2
Location
Barrow-in-Furness is an industrial town and seaport situated at the western tip of
Dumfries
the Furness peninsular. It is the most important commercial centre servicing Newc
the west
astle
Demographic Profile
upon Tyne
of Cumbria and is located 48 miles (77 kilometres) west of Lancaster, 69 miles (111
The total population within the Barrow-in-Furness primary catchment
kilometres) north west of Preston and 87 miles (140 kilometres) south west of Carlisle.
area is 106,000 with an estimated shopping population of 74,000
Carlisle Sunderland
(Source: PROMIS). The town has a large blue collar work force with
Access to the town is provided by the A590, providing a direct link to Junction
major employers including the BAE Systems shipyard, Kimberly-Clark
36 of the M6 Motorway 31 miles (50 kilometres) to the east. The A595 links to
and the GlaxoSmithKline nuclear plant. The BAE Systems shipyard is
Whitehaven and Workington 39 miles (63 kilometres) and 46 miles (74 kilometres) Hartlepool
the largest shipyard in the UK and is undergoing a major expansion
to the north respectively. Mainline Rail Services are provided via Preston.
Stockton-on-Tees associated with the Successor-class submarine programme. Barrow is
Middlesbr ough
Darlington a hub for energy generation and handling; offshore wind farms close
The Furness area is the home of world class manufacturing companies and service
by form one of the highest concentrations of turbines in the world.
businesses, which include BAE Systems and the new £350m GlaxoSmithKline
biopharmaceutical manufacturing plant, which is due to be completed in 2018.
Kendal
Lake District
National Park
Scarborough
Yorkshire Dales
Barrow-in-Furness National Park A1 (M)
Lancaster Harrogate
Forest of
Bowland
M6
Leeds
Bradford
Blackpool
Preston Burnley
M62
M61 M62
Huddersfield
M6 Barnsley Doncaster
Grimsby
Manchester M1
Liverpool
M62
Peak District
Sheffield
M56
Chester
M6 Skegnes s
Barrow-in-Furness – Unit 11-15, Portland Walk 3
Nottingham
Grantham
Retailing in Barrow-in-Furness
Barrow-in-Furness is a seaside retailing destination which benefits from a loyal catchment
due to lack of nearby competition.The town centre provides approximately 0.90 million sq
ft of retail floor space (Source: PROMIS) with the prime retail core focused within Portland
Walk and along Dalton Road. Retailers represented within this area include Marks and
Spencer, Boots, WH Smith (the subject property), Debenhams (the subject property), New
Look, River Island, Topshop, Goldsmiths, JD Sports, Argos and Waterstones.
Let to the strong national covenants of
Debenhams, The Body Shop and WH Smith
Situation
The property occupies a prime trading position within Portland Walk.This scheme was opened
in 1996 and provides approximately 200,000 sq ft of modern retail accommodation along
an uncovered shopping mall. It is anchored by Debenhams (part of the subject property)
and includes representation from Waterstones, River Island and Topshop.
Description
The subject property comprises a department store, together with 3 retail units. The
buildings all provide retail sales accommodation with both Debenhams and WH Smith
also trading from the first floors.
Servicing is via an integrated rear service yard accessed off Forshaw Street. The malls and
service areas are adopted highways, as such there is no service charge for these elements.
In addition, the property benefits from a roof car park, on the second floor above unit 11,
with space for 106 cars.
Barrow-in-Furness – Unit 11-15, Portland Walk 4
Opportunity to re-gear
the leases and improve the
yield profile upon letting
the vacant unit
Accommodation
We have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition) and provide the following floor areas:
Unit Tenant Ground Floor Ground Floor ITZA First Floor NIA First Floor NIA Second Floor Second Floor Total NIA Total NIA
NIA (sq ft) NIA (sq m) (sq ft) (sq ft) (sq m) NIA (sq ft) NIA (sq m) (sq ft) (sq m)
11* Debenhams 29,601 (GIA) 2,750 (GIA) - 37,954 (GIA) 3,526 (GIA) 1,133 (GIA) 105 (GIA) 68,688 (GIA) 6,381 (GIA)
12 The Body Shop 1,472 137 655 - - - - 1,506 137
13 Vacant 1,337 124 617 - - - - 1,337 124
14/15* WH Smith 5,274 490 2,559 3,735 347 - - 9,009 837
*We have relied upon the agreed areas from the recent Arbitration Awards for these two units.
Barrow-in-Furness – Unit 11-15, Portland Walk 5
Tenancy Tenure
The property is let in accordance with the following tenancy schedule:
The property is held freehold.
Lease Next Current Rent Rent Landlord
Unit Tenant Expiry Review Rent PA ITZA PSF Shortfalls Comments
11 Debenhams 24/12/2021 01/02/2017 £445,355 - £6.52 FRI lease, UORR WAULT of
12 The Body Shop 18/12/2021 19/12/2011 £50,000 £76.30 - FRI lease, UORR approximately
13 Vacant - - - - - £17,005
14/15 WH Smith 18/12/2016 19/12/2011 £140,000 £49.98 - FRI lease, UORR
4.2 years
Tenant has a right to renew upon expiry
Car Barrow-in-Furness
18/12/2021 - Peppercorn - - to a Market Rent, in accordance with
Park Council
the Landlord and Tenant Act 1954.
Total £635,355 £17,005
After deducting landlords shortfalls, the property has a net income of £618,350 per annum.
Barrow-in-Furness – Unit 11-15, Portland Walk 6
Covenant Information
Debenhams Retail Plc (Company No 00083395) is a leading
international, multichannel retailer with a department store format
and a brand that is one of the most dominant in the UK. The company was founded in the
18th century and now trades from over 240 stores across 27 countries. Headquartered in
Camden, London, Debenhams is listed on the London Stock Exchange and is a constituent
of the FTSE 250 Index.
The company reported the following financial performance:
29/08/2015 30/08/2014 31/08/2013
Turnover £2,099,300,000 £2,085,900,000 £2,075,600,000
Pre Tax Profit £140,200,000 £165,000,000 £228,100,000
Net Worth £922,800,000 £1,015,900,000 £895,800,000
Debenhams Retail Plc has a Creditsafe score of 52 out of 100 showing ‘low risk potential’ of
business failure.
WH Smith Plc (Company No 00471941) is one of the most recognisable The Body Shop International Plc (Company No 01284170) is a British
retailers and has been a household name in the UK since 1792. The cosmetic and skincare company owned by L’Oreal. The company was founded
company operates from over 550 stores on the high street and 490 stores in key transport in 1976 and now trades from 273 of stores throughout the UK. The company
hubs and hospitals across the UK. WH Smith also operates stores in Australia, South East Asia, also has a range of 1,200 products which it sells in over 2,500 franchised stores
India and the Middle East. across 61 countries.
The company reported the following financial performance: The company reported the following financial performance:
31/08/2015 31/08/2014 01/09/2013 31/12/2015 02/01/2015 28/12/2013
Turnover £1,178,000,000 £1,161,000,000 £1,186,0200,000 Turnover £404,100,000 £428,100,000 £435,700,000
Pre Tax Profit £121,000,000 £1112,000,000 £103,000,000 Pre Tax Profit £44,900,000 £39,300,000 £57,000,000
Net Worth £88,000,000 £45,000,000 £47,000,000 Net Worth £321,300,000 £296,700,000 £281,300,000
WH Smith Plc has a Creditsafe score of 83 out of 100 showing ‘very low risk potential’ of The Body Shop International Plc has a Creditsafe score of 96 out of 100 showing ‘low risk
business failure. potential’ of business failure.
Barrow-in-Furness – Unit 11-15, Portland Walk 7
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Barrow-in-Furness – Unit 11-15, Portland Walk 8
Proposal
We are instructed to seek offers for our client’s freehold interest
in the region of £4,640,000 (Four Million, Six Hundred and Forty
Thousand Pounds), subject to contract and exclusive of VAT. A
purchase at this level would reflect a Net Initial Yield of 12.50%,
after allowing for purchasers costs of 6.57%.
Asset Management Opportunities Further Information
• Opportunity to re-gear the leases with Debenhams and WH Smith, as well as immediately For further information or to arrange an inspection of the property, please contact:
improving the yield profile by letting the vacant unit.
• Opportunity to increase car park rent from a peppercorn rent to Market Rent, upon expiry of
Jonathan Heptonstall Frankie Maddox
the current lease in circa 5 years.
020 7318 7843 020 7399 5744
jonathan.heptonstall@eu.jll.com frankie.maddox@eu.jll.com
EPC VAT
Michael Hopkins
An EPC for the property can be The property has been elected for VAT purposes. It is 028 9050 0100
provided upon request. anticipated that the investment sale will be treated as a mph@mckibbin.co.uk
Transfer of a Going Concern (TOGC).
Misrepresentation Act
JLL, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether
they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct as at the date of the particulars (or the date of
Barrow-in-Furness – Unit 11-15, Portland Walk
the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by JLL, the vendor(s) of the property or any of their respective subsidiaries, 9
affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has authority to make or give
any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle. Designed by Graphic Outlines Ltd. 2016
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