STAINBECK LANE Chapel Allerton, Leeds LS7 3PJ - PRIME LONG LET SUPERMARKET INVESTMENT WITH UNCAPPED RPI LINKED RENT REVIEWS
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1 STAINBECK LANE
Chapel Allerton, Leeds LS7 3PJ
PRIME LONG LET SUPERMARKET INVESTMENT WITH UNCAPPED RPI LINKED RENT REVIEWS
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
INVESTMENT
CONSIDERATION
zz Leeds, the commercial heart of West Yorkshire is a thriving retail city with a
catchment population of approximately 3 million people.
zz Dominant supermarket occupying a large prominent site in an affluent suburb
of Leeds often referred to as the ‘Notting Hill Gate of the North’ and voted one
of the best places to live in Northern England (Sunday Times 2018).
zz Let to Co-operative Group Food Limited, guaranteed by Co-operative Group
Limited on a full repairing and insuring lease for a term to expire 10th
December 2031 (c. 12.5 years unexpired).
zz Rent is subject to 5 yearly upward only reviews to the higher of the passing
rent, open market or uncapped RPI. Next rent review is in December 2021.
zz Proposals to refit in Q4 2019/Q1 2020
zz Strategically located with highly prominent frontage to Stainbeck Lane, close
to its junction with Harrogate Road which forms the centre of Chapel Allerton.
zz Well configured store with a GIA of 16,703 sq ft, with the benefit of 70 car
parking spaces, giving a parking ratio of 1:239 sq ft.
zz The site extends to approximately 1.3 acres (0.52 hectares) with a site
coverage of 30% offering the potential for alternative uses, subject to planning.
zz Current contracted rent of £323,458 pa which reflects an overall rate of
£18.44 per sq ft allowing 5% for the fully fitted assumption.
zz Our client is seeking offers in excess of £5,250,000 (Five Million Two Hundred
and Fifty Thousand Pounds) subject to contract and exclusive of VAT which
reflects a net initial yield of 5.77% increasing to 6.75%* in December 2021, net
of normal purchaser’s costs.
* Assuming RPI assumptions to that date.
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
TE ROAD
HARROGA
E
CK LAN
STAINBE
SCHOOL LANE
For identification purposes only
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
LOCATION & COMMUNICATIONS
Leeds is situated at the heart of the Northern Powerhouse, approximately 40 miles east of Manchester and 190 miles
North of London. The city lies 7 miles north of the intersection of the M1(J42) and M62 (J29), with direct access to the
motorway network from the City Centre via the M621. The Leeds City Region is the largest economy outside of London
and one of the most diverse. The city region has a total workforce of almost 1.37m and a £64.6 million economy
(Leeds.gov.uk). Over the next ten years the economy is forecast to grow by 21% with financial and business services set
to generate over half of GVA growth over that period. Leeds has a historic strength in financial and professional services
but also has concentrations of employment in advanced manufacturing, digital industries and education.
Leeds City Railway Station is the UK’s second busiest rail CHAPEL ALLERTON
station outside of Central London with over 900 trains
A1(M) Chapel Allerton is often referred to as the “Notting Hill Gate of
and 50,000 passengers per day. Services to London Kings
the North” and is an inner suburb of North East Leeds, West
Cross are every 30 minutes with a fastest journey time of 2
Yorkshire. It is located approximately 2.5 miles from the City
hours. Leeds is also the regional transport hub for Yorkshire,
Centre, just over 7 miles South West of Leeds Bradford Airport,
providing local services and regular trains to Manchester,
2 miles East of Headingley and 1.5 miles West of Roundhay.
York, Sheffield and Newcastle. Work has started on the
£161m redevelopment of Leeds Station which is part of a The suburb benefits from good transport links, being in close
M62
M62 proposed £500m masterplan. Leeds Bradford International proximity to the A61, A58 and A6120 which in turn offers
Airport is 8 miles to the north west of the City Centre access to the A1, M1 and M62.
and presently caters for 3m passengers a year. This is
forecasted to nearly triple by 2030, with £28m currently The nearest railway station is located in Headingley which
being invested in improving the airport’s infrastructure. offers services to Leeds, Burley, Knaresborough and York.
The airport serves 70 destinations including 4 daily British There are also regular bus services to Leeds City Centre which
Airways flights to London Heathrow. Leeds is planning to take approximately 13 minutes, and its surrounding suburbs.
submit a bid to be European capital of culture in 2023.
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
SITUATION
HAR
The subject property occupies an extremely prominent position with
ROGATE
a substantial frontage to Stainbeck Lane, with vehicular access from
Soldiers’s
School Lane and further one way access via Ingle Row off Harrogate MEANWOOD
ROAD
Fields
Road to the East, which leads directly to Leeds City Centre. Harrogate
7
15
B6
D
Road has an eclectic mix of local and national retailers. GLEDHOW
A
RO
CK
BE
CHAPEL
IN
STA
ALLERTON OAKWOOD
DEMOGRAPHICS
HEADINGLEY
SC
Leeds has a primary catchment population of 1.5 million which ranks it 4th
OT
Potternewton
POTTERNEWTON
TH
Park
out of all the major centres. 642,000 people consider Leeds to be their main
AL
LR
shopping destination, showing the dominance of the centre. The population
OA
D
is boosted by the 50,700 full-time higher education students in the city. HEA
DIN
GLE
Y LAN
Of these, 7,245 are post graduates and 43,455 are undergraduates. E CHAPELTOWN
Chapel Allerton sits within the Chapel Allerton ward of Leeds City Council
8
A5
and had a population of 23,536 at the 2011 census. The majority of the HYDE PARK
HAREHILLS
A6
WOODHOUSE
1
population are aged between 18-64 making up 66.2% of its total whilst
22.6% are aged 0-17 and 11.1% at 65+ (UK Office of National Statistics).
A6
60
Chapel Allerton has an overall average house price of £236,555 which is
T
more expensive than nearby Meanwood (£222,674) and Leeds (£196,821).
T
EE
REGENT STREE
TR
TS
Overall, sale prices in Chapel Allerton over the last year were up 23% on
ET
CK
the previous year and 9% up on the 2016 level of £216,272 (Right Move
BE
A6
5
2019). Chapel Allerton was also listed on the 2018 Sunday Times report
on best places to live in Northern England. LEEDS
A64(
M)
As a result, the area is becoming very popular with young professionals YORK RO
AD
8
A5
and families due to the strengths of the area and the period housing stock. For identification purposes only
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
RETAILING IN
CHAPEL ALLERTON
The area is an established centre built around the junction of
Stainbeck Lane and Harrogate Road, which acts as a main
thoroughfare through Chapel Allerton. The centre contains
a variety of local retailers including an art gallery, high end
cake shop, boutique fashion, kids shops and delis in addition
to a selection of national retailers, including Café Nero,
Starbucks and HSBC. The area is also well known for its
vibrant food scene, pubs and bars.
The Moor Allerton District Centre is located 1.5 miles to the
North of Chapel Allerton and includes retailers such as Argos,
Homebase and Sainsbury’s.
CHAPEL ALLERTON IS
OFTEN REFERRED TO AS
THE “NOTTING HILL GATE
OF THE NORTH”
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
DESCRIPTION STAINBEC K L ANE
HAR
SCHOOL LANE
The property comprises a purpose built food store
constructed in the late 1980’s offering a well
ROG
configured and efficient layout (90% at ground floor
ATE
and 10% first floor), served by a car park to the rear
and a separate loading yard.
ROA
D
The property has approximately 70 car parking
spaces, giving a parking ratio to 1:239 sq ft.
The site extends to 1.3 acres (0.52 hectares) with
a site coverage of 30%.
The store is open 7 days a week and opens
6am on weekdays closing at 11pm Monday
to Saturday and opening 10am closing 4pm
on Sundays.
The property is situated within a conservation area.
For identification purposes only
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
ACCOMMODATION
The property benefits from the following approximate gross internal floor areas: -
Ground Floor Sales 10,984 sq ft (1,020 sq m)
Ground Floor Store 4,026 sq ft (374 sq m)
First Floor Office/Ancillary 1,693 sq ft (157 sq m)
Total Area 16,703 sq ft (1,551 sq m)
LEASE
The property is let to the Co-operative Group Food Limited (with Co-operative
Group Limited as guarantor) on a full repairing and insuring lease from 11th
December 2006 to expire 10th December 2031, with just over 12.5 years unexpired.
The current rent passing is £323,458 pa and is subject to 5 yearly upwards
only rent reviews to the higher of the passing rent, open market rental value or
uncapped RPI. The rent passing devalues to an overall rate of £18.44 per sq ft,
applying 5% to the fully fitted assumption.
The property is next subject to a rent review on the 11th December 2021.
It is our opinion that the passing rent at that date will increase to a level in the
region of £378,000 pa, which is based on the UK Retail Price Index published
rates for 2017/2018 and applying assumed rates for the remaining 3 years based
on research provided by the vendor and Oxford Economics.
We understand that the tenant trades well from the store and have proposals to
refit in Q4 2019 / Q1 2020.
TENURE
Freehold under title number WYK331253.
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
COVENANT STATUS CO-OP FOOD HAD AN EXCELLENT
YEAR WITH THE BEST GROWTH
CO-OP GROUP IS THE UK’S LARGEST
CONSUMER COOPERATIVE WITH
4.6M ACTIVE MEMBERS AND A
IN 7 YEARS. UNDERLYING PROFIT
Co-operative Food Group Limited (Company No. IP26715R) is a wholly PRESENCE IN EVERY POSTAL
WAS UP 12% TO £204 MILLION.
DISTRICT IN THE COUNTRY.
owned subsidiary of the Co-operative Group Limited which was
established in 1844 and now operates 4,500 outlets with almost 90,000
employees and has an annual turnover of £10.5 billion.
2019 MARKS THE 175 ANNIVERSARY
OPENED 417 NEW STORES
Co-operative Food Group is the UK’s 5th largest food retailer with OF THE CONSUMER CO-OPERATIVE
IN THE LAST 4 YEARS.
MOVEMENT IN THE UK.
almost 2,582 Co-Op Group food stores employing over 69,000 people.
A summary of Co-operative Food Group Limited and the guarantor Co-
operative Group Limited (Company No. IP00525R) are set out below: -
Co-operative Group Limited
06/01/2018 31/12/2016
Turnover £9,470,000,000 £9,472,000,000
Pre-tax Profit £72,000,000 -£132,000,000*
Net Worth £2,191,000,000 £2,006,000,000
*The Co-operative Group wrote down their investment in the
Co-operative bank to £nil which led to a £185m exceptional cost in the
financial year. The underlying profit before tax was £59m.
Co-operative Food Group Limited
02/01/2016 03/01/2015
Turnover £6,475,500,000 £6,327,800,000
Pre-tax Profit -£429,600,000 £199,100,000 RESPONSIBLE RETAILER WHO STRENGTHEN DURING 2018 THE CO-OP
COMMUNITIES THROUGH THEIR LOCAL INVESTED £75M IN OPENING
Net Worth £1,385,500,000 £1,805,400,000 COMMUNITY FUND, WHICH IN 2018 102 NEW FOOD STORES AND
RETURNED MORE THAN £19M TO 4,087 CARRIED OUT 138 REFITS OF
LOCAL CAUSES ACROSS THE COUNTRY. EXISTING STORES.
The Experian, Delphi rating is 100 out of 100 reflecting very low risk.
1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS
VAT
The property has been elected for VAT purposes and the sale is
intended to be treated as a Transfer Of A Going Concern (TOGC).
EPC
The property has an EPC rating of C64. A copy of the certificate
is available on request.
PROPOSAL
We have been instructed to seek offers in excess of £5,250,000
(Five Million Two Hundred and Fifty Thousand Pounds) subject to
contract and exclusive of VAT for the benefit of our client’s freehold
interest in the subject property. A purchase at this level reflects the For further information or to arrange an inspection please do not hesitate to contact:
following yield profile after deduction of purchaser’s costs at 6.60%.
PHILIP HAY MIKE JAMESON
Net Initial Yield 5.77% BSC (HONS) MRICS BSC MRICS
Reversionary Yield (12/2021) 6.75% 020 7637 7100 020 7637 7100
phay@jacksoncriss.co.uk
Reversionary Yield (12/2026) 7.92% mikej@jacksoncriss.co.uk
Equivalent Yield 6.35%
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice
We have adopted assumed RPI rates based on research provided by that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not
constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary
the vendor and Oxford Economics which averages out at 3.17% pa, permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending
purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or
as an estimate of future rental growth and yield performance from otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority
to make or give any representation or warranty whatever in relation to this property. 101627. Designed by TCC 06/19.
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