SOUTHEND LONDON ROAD RETAIL PARK SS1 1PA - PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY - Wilkinson Williams
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SOUTHEND
LONDON ROAD RETAIL PARK SS1 1PA
PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
ENTER 
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
INVESTMENT CONSIDERATIONS
n Southend-on-Sea lies 45 miles east of Central London with a fastest journey n The subject property totals 74,954 sq ft with 222 car parking spaces and is
time by rail of 50 minutes. arranged as a standalone unit let to Homebase with a garden centre, and a
separate terrace occupied by Currys PC World and Pets at Home.
n The town is relatively affluent, as demonstrated by the mean income of the
20 minute catchment, being 4.6% above the UK average. n The property is fully let on 3 FRI leases to 3 strong covenants and currently
produces a total rent of £1,177,322 per annum, at rents ranging between
n London Road Retail Park is located in a prominent position on the A13 London £15.37 – £19.00 per sq ft.
Road close to the town centre, Southend Victoria and Central Railway Stations
and directly opposite a Sainsbury’s foodstore. There is a limited amount of n We are instructed to seek offers in the order of £15,728,500 (Fifteen Million,
retail warehousing in the town and general area, with a number of outstanding Seven Hundred and Twenty Eight Thousand, Five Hundred Pounds) for the
requirements. freehold interest, subject to contract. A purchase at this level would reflect a
net initial yield of 7.00%, assuming purchaser’s costs at 6.73%.
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
Stevenage Braintree
7 STANSTED Colchester
SOUTHEND
8
Welwyn Bishop's
LUTON Garden Stortford BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA 6 City Hertford
Ware M11 Witham
5
4 Harlow
Hatfield Chelmsford Maldon
M10 3 Hoddesdon
LOCATION
7
1 2
22
5
24 M25 25 26
Southend-on-Sea is in Essex, approximately 45 miles east of Central Enfield 5
Brentwood SOUTHEND-ON-SEA
London, 20 miles south east of Chelmsford and 15 miles east of Basildon, 4 M1 Chigwell
28 Rayleigh
within the ‘Thames Gateway’. 2 4
1
29
Basildon
The town benefits from excellent transport communications. The A127
and the A13 provide direct links to the M25 motorway and Thurrock to
the west and Chelmsford via the A130 to the north west. LONDON 30
Canvey Island
2 1 Woolwich
Southend-on-Sea is also easily accessible via train. There are 2 stations
31 Tilbury
in the town, which provide services to London Fenchurch Street and Dartford Gravesend Sheerness
Kingston 2
London Liverpool Street, with the fastest journey time at just 50 minutes. upon Thames Rochester
Swanley 1
Whitstable
London Southend Airport is located 2 miles north of the town centre. 2 Gillingham
Croydon Chatham
A new terminal was built in 2012 and the airport now provides flights Sutton 4
M20 Sittingbourne
4
to over 20 destinations in Europe and the UK. Passenger numbers are 3 5
Faversham
Epsom M25
GRAINGER RD
expected to grow towards 2 million per year by 2020. 2
3 4 M2 6 7
9 M26 5 6
SHORT ST
5 7
9
7
8
M25
6 Sevenoaks Maidstone
BA
8
Oxted
XT
Redhill ALBANY AVE
ER
M20
SITUATION
BO
Reigate
AV
Tonbridge
ST
VIC
SALISBURY
E
ON
M23
T RD
MILTON ST
LONDON ROAD
TO
AV
NORTH RD
CLIFF AVE
9
LE T C
OSBORNE RD
RETAIL PARK
E
R IA
RAL RD
AVE
9 10
H AM
AV
E
London Road Retail Park is located in a
BA L M O
WINDSOR RD
prominent position on the A13 (London
A1
27
Road) junction with Queensway, directly SOUTHEND
VICTORIA
opposite a Sainsbury’s foodstore. The QUEENSWA
Y
BRIGHTEN
property is within close proximity of the QUEENSWA
A1 Y
town centre. 3
LO
ND
CHICHESTE
RD
BU ON
RD
RD
ET RO LONDON R
H
TA AD D
RT
VE
NO
R RD
ST
J OH
N’S
PRIN
ELME
RD
NAPIE
ASHB
GORD
E
CE
AC
PARK
TERR
R AV
PARK
S ST
URNH
R AV
ST
ON R
PARK RD
HE
E
LE
ST
N RD
N’S NS RD
QUEE
E
R
D
AVENUE RD
AM
D
O
MILT
RD
RD
EGATE
ON PL WHIT
PA
INVESTMENT RETAIL WAREHOUSING AVENU E TERRA CE TENANCY & ERV, ASSET MANAGEMENT,
GORD PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
R
CONSIDERATIONS CA& DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
K
RE SOUTHEND
C
NE S
WD CENTRAL
ON
RD
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
SOUTHEND VICTORIA
A13 LONDON ROAD
DEMOGRAPHICS
According to ACORN, the population within a 20 minute drive time of the In the CACI expenditure report for the area notable categories where the
property is 263,228, also encompassing the adjoining centres of Rayleigh, expenditure is above average are ‘house repair, maintenance & decoration’ at
Rochford and Great Wakering. 106% of the index, ‘furniture, furnishings & floorcoverings’ at 106%, ‘household
textiles’ at 110% and ‘tools & equipment for the house & garden’ at 125%. Items
Car ownership is higher than average within a 20 minute drive time, with 76.4 % such as clothing, footwear and personal goods (watches, jewellery, etc) i.e.
of households owning at least one car, compared to a national average of 73.9% goods not generally sold from retail parks, are all below average. The affluence of
(CACI). By far the dominant social group using the ACORN classifications within Southend is further emphasised by gross family income data. The mean income
this catchment is ‘comfortable communities’ standing at 38.5% (101,300), as of the 20 minute drive time area is £38,139; 4.6% above the UK average. By 2025,
compared to the national average of 26.7%, and we would expect this sector to the catchment population is forecast to increase by 2.5% to 277,212 (ACORN).
be prime users of retail warehousing.
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
RETAIL
WAREHOUSING
IN SOUTHEND
S OUTHEND RD
Airport Retail Park
(92,081 sq ft)
SOUTHEND AIRPORT Open A1 non food
Tenants include: Argos, B&M,
SH O P L A N
Sports Direct, Home Bargains,
Carpetright, Dreams,
Pets at Home
RD
D
D
DR
FOR
ROCH
A1 1 59
Fossetts Park
(134,410 sq ft)
Bulky goods consent
A127
Tenants include: B&Q,
RD
Maplin, Majestic Wine
SUTTON
N
CK L
CARLTO
N AVE
A1159
YTHI
HOBLE
A 1159
DESCRIPTION
PRITTLEW
E L L C H A SE
FAIRFAX DR PRITTLEWELL
Greyhound Retail Park
(110,000 sq ft)
VIC
B10
Open A1 non food
The subject property totals 74,954 sq ft and is arranged as a standalone unit let to
15
TO
LONDON ROAD5 Tenants include: Matalan, Homebase with a garden centre and parking at the front, and a separate terrace
01
RIA
RETAILB PARK Mecca Bingo, Poundstretcher, occupied by Currys PC World and Pets at Home. This terrace was constructed as a
1
Farmfoods
LO
AV
ND second phase to the original unit occupied by Homebase, and also has car parking at the
E
ON SOUTHEND
front.
RD VICTORIA
A1 3 Servicing is accessed via a separate road to the rear of the Homebase unit and leads to
LIFS
WESTCLIFF-ON-SEA SOUTHEND
the rear of the other terrace.
TAN W
A1160
CENTRAL
SOUTHEND
AY
EAST
WESTE The scheme benefits from 222 car parking spaces, which equates to a car parking ratio
RN ES WOODGRA
NGE DR
P L ANA
DE of 1 : 337 sq ft.
MARINE PARADE
EA The total site area is 5.25 acres, providing a low site cover of 31%.
ST
ER N
E SPLANADE
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
6
TENURE
The site, delineated in red opposite, is held freehold.
PLANNING
El
Sub Sta
1 to 78
Sta
El Sub
The property benefits from an open A1 non food planning
St Helen's RC
consent. Further details are available on request. 33.5m
Primary School
85
El
Sub Sta
ark
etail P
nR oad R
Londo
Car Park
33.2m
Ho use
Nazareth
D
OA
87
BRIGHT
Car Park El Sub Sta
EN ROAD
TCB
0m 25m 50m 75m
ROAD
LONDON
33.5m
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1434
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
TENANCY
The property is let on full insuring and repairing leases:
Area Lease Lease Next Rent Lease Term Break Passing Rent Rent
Unit Tenant Comments
(sq ft) Start Expiry Review (years) Option (per annum) (per sq ft)
Lease states the floor area at review as
1 Homebase Ltd 47,212 24-Dec-2002 23-Dec-2022 24-Dec-2017 20 £670,000 £14.19
42,852 sq ft.
2 DSG Retail Ltd 21,150 29-Sep-2000 28-Sep-2020 29-Sep-2015 20 £401,850 £19.00
Side letter allowing tenant to pay rent
3 Pets at Home Ltd 6,592 21-Feb-2011 20-Feb-2025 21-Feb-2016 15 20-Feb-2021 £105,472 £16.00 monthly. Reviews to lower of OMV or 2.5%
per annum compounded.
Landlord responsible for external repair,
The Eastern although potentially recoverable via service
Substation 02-Apr-1979 01-Apr-2078 99 £0
Electricity Board charge. Terminable on 6 months notice if
landlord wants to redevelop.
Total 74,954 £1,177,322 £15.71
There is an annual car parking receipt from Parking Eye for car parking charges, totalling approximately £50,000. Under the existing agreement, approximately 10% of this
income is returned to the landlord and then put towards the service charge. The overall service charge budget is currently around £65,000, therefore reducing to around
£60,000 with this receipt.
COVENANT INFORMATION
The property is fully secured against 5A1 D&B covenants. We have summarised the most recent tenant accounts below:
Sales Turnover Profit / Loss Net Worth
Unit Tenant Year Ending D&B Rating
(000’s) Pre Taxes (000’s) (000’s)
27-02-2016 £1,360,112 £32,824 £8,263
1 Homebase Ltd 3A2
28-02-2015 £1,408,807 £7,551 £379,666
02-05-2015 £4,314,000 £116,800 £395,900
2 DSG Retail Ltd 5A1
30-04-2014 £4,078,300 £94,100 £377,500
26-03-2015 £689,697 £79,920 £517,138
3 Pets at Home Ltd 5A1
27-03-2014 £633,429 £83,858 £462,445
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATION
SOUTHEND BACK | NEXT
LONDON ROAD RETAIL PARK SS1 1PA
ESTIMATED ASSET MANAGEMENT
RENTAL VALUE Following on from settling the rent review
on the Pets at Home unit, we believe there
is, in time, good potential to extend the
With all the covenants strong, it would
therefore seem unlikely that there will
be any accommodation here that would
We consider that there are prospects for achieving a rental Currys PC World lease. The retailer trades require re-letting, but we are aware
uplift on the outstanding Pets at Home rent review. At Fossetts well from this location and the unit is of of the following outstanding retailer
Park, Eastern Avenue, adjacent to a Waitrose and B&Q the right size. Currently, Currys PC World’s requirements:-
Warehouse, the former Comet unit has now been let to Wren general policy is not to agree lease
Living. The unit extends to 15,000 sq ft and we understand the extensions unless connected to a required Dunlem 20,000 sq ft
landlord has agreed a rent based on £20.00 per sq ft. downsize when there is less than one TK Maxx 10,000 sq ft
or two years to expiry but we are quite Smyths Toys 15,000 sq ft
Adjoining Fossetts Park on a site comprising part of Southend confident that they will wish to extend 30,000 sq ft
United’s training ground, there is a proposal for some 192,000 their lease here. Go Outdoors
(could go to 50,000 sq ft)
sq ft of retail warehousing and a 12 screen cinema, linked to a
new football ground development for the local team. However, Wickes 20-25,000 sq ft
Following Bunnings’ takeover of
whilst we believe there would be strong occupier interest, 10,000 sq ft
Homebase, the DIY retailer is keener Iceland
particularly from traditional high street retailers requiring (would need food consent)
on larger units such as this, and we
an open consent, we understand the proposals are currently Aldi 15/20,0000 sq ft
understand this unit has always traded
on hold. well for Homebase and was never a unit Homesense 10,000 sq ft
they were seeking to dispose of. We Poundland 5/7,500 sq ft
On the Airport Retail Park, which comprises some 92,000 would imagine, in the short term, that Halfords 7,500 sq ft
sq ft in 10 units, Argos (9,832 sq ft) agreed an increase from they will convert to the Bunnings format
£20.00 to £21.50 per sq ft effective from 24 June 2014. More and look to refit, which should provide an We consider that these outstanding
recently, however, we understand a retailer has bid a rent in opportunity for the landlord to agree a requirements does demonstrate there is
excess of £30.00 per sq ft for a 7,000 sq ft unit here, but the lease extension. a demand / supply imbalance in the town
landlord cannot currently secure vacant possession. In the light and therefore good prospects for rental
of this offer, we understand the landlord is proceeding with a growth.
rent review on the SportsDirect.com unit that is currently let
off £22.48 per sq ft for 10,000 sq ft and this is now subject to
Arbitration proceedings.
Therefore, in our opinion, it is clear there is strong demand for
quality retail warehouse accommodation in Southend and there
are good prospects for an uplift at the outstanding rent review.
EPC VAT
EPC’s are available on request. The property has been elected for
VAT, however, it is anticipated that the
transaction will be treated as a Transfer
of a Going Concern (TOGC).
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATIONSOUTHEND BACK
LONDON ROAD RETAIL PARK SS1 1PA
PROPOSAL CONTACTS
We are instructed to seek offers in the order of £15,728,500 Paul Wilkinson Ellie Kirkby
(Fifteen Million, Seven Hundred and Twenty Eight T: 020 7317 3799 T: 020 7317 3790
Thousand, Five Hundred Pounds), subject M: 07770 585313 M: 07764 241898
to contract and exclusive of VAT. E: p.wilkinson@wilkinsonwilliams.co.uk E: e.kirkby@wilkinsonwilliams.co.uk
This reflects an attractive net initial yield of 7.00% Wilkinson Williams
(assuming purchaser’s costs at 6.73%). 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. January 2017. Designed and produced by Creativeworld Tel: 01282 858200.
INVESTMENT RETAIL WAREHOUSING TENANCY & ERV, ASSET MANAGEMENT, PROPOSAL &
HOME LOCATION & SITUATION DEMOGRAPHICS TENURE & PLANNING
CONSIDERATIONS & DESCRIPTION COVENANT INFORMATION EPC & VAT FURTHER INFORMATIONYou can also read
