SUPERMARKET ST ELLI CENTRE - LLANELLI SA15 1BX MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY - Jackson Criss
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SUPERMARKET
ST ELLI CENTRE
LLANELLI SA15 1BX
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
INVESTMENT
CONSIDERATIONS
zz Llanelli is located on the south coast of West Wales in the
county of Carmarthenshire, 12 miles west of Swansea.
zz Llanelli is at the heart of a large catchment area and the
St Elli Centre has an excellent footfall with approximately
7.0 million visitors per annum (135,000 thousand visitors
per week).
zz Llanelli town centre and the surrounding area has
undergone significant transformation in the last 6 years
with an estimated £60 million being committed to improve
the town centre streetscape and various other cultural and
regeneration projects.
zz The Asda supermarket is the dominant town centre food
store. It extends to approximately 70,000 sq ft and is the
principal anchor of St Elli Centre which was built in 1997
and is the major retail destination within the town centre
and surrounding area. The supermarket includes a demised
450-space surface car park, immediately adjacent to the
main entrance.
zz The interest to be sold is a 999 year long leasehold interest
at a peppercorn.
zz The property is let in its entirety to Asda Stores Limited
by way 3 occupational leases, all expiring between May
and November 2032, subject to 5 yearly open market
rent reviews. The aggregate current passing rental
is £1,322,735 pa, reflecting a rate of £18 psf overall,
excluding the petrol filling station.
zz Unexpired lease term of approximately 14 years.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
The investment offers the following characteristics:
zz A modern high quality building benefiting from
a substantial surface car park.
zz A long unexpired lease term of approximately
14 years.
zz Let to the excellent covenant Asda Stores
Limited with sales of £22 billion and pre-tax
profits of £380 million.
zz Excellent prospects for securing attractive
debt finance given the lease length and
covenant strength.
zz Strong trading store with recent addition of
new petrol filling station
LLANELLI
LOCATION
Llanelli is the largest town in the country of Llanelli is linked to the M4 motorway (Junction 48)
Carmarthenshire, West Wales and situated within connecting the town to Cardiff, approximately 55 miles
the Millennium Coastal Park sitting on the Loughor to the east. The M4 motorway provides fast connection
Estuary on the south coast of Wales. The town is to the rest of the UK. Swansea, 12 miles to the south
sandwiched between the extremely popular tourist east of Llanelli can be accessed on the A484 and
destinations of the Gower peninsular (10 miles to the Carmarthen on the A48 via the A476.
south) and the Brecon Beacons National Park (20
miles north). The town is located approximately 12 The town’s bus station, neighbouring the subject
miles west of Swansea, 20 miles east of Carmarthen property provides regular local services to the wider
and 200 miles west of London. Carmarthenshire towns and villages including Swansea,
Carmarthen, Pembrey, Burry Port and Kidwell, as well as
National Express services further afield including Cardiff,
Bristol and London.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
SITUATION
The subject foodstore is situated
in the centre of the town, with
access onto the pedestrianised
Stepney Street via Stepney
Precinct. The property and
adjoining centre are bounded
by Upper Robinson Street to the
south which provides the main
vehicular access into the Centre
and connects with the A404.
Llanelli railway station is located
south of the town centre.
Bus Station
Asda PFS
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
CATCHMENT
The catchment of Llanelli contains a population of approximately
610,000. From this catchment, Llanelli attracts a regular comparison
goods shopping population of 54,273. The extent of Llanelli’s significant
catchment area can be seen on the map below.
Trade Contribution
Core: 70% contribution
Secondary: 70 -100% contribution
The catchment population has the potential to spend approximately
£1.8 billion per annum on comparison goods, the current spend is in the
region of £154 million, demonstrating an opportunity to attract more
spend into the town. The core area provides 70% of the total of the
shopping population of Llanelli, with the remaining 30% derived from
the blue area.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
The area around Llanelli and East Carmarthenshire is home to a number of
manufacturing companies including Tata Steel at Trostre and Dyfed Steels,
many of which service the automotive and engineering industries based in
South Wales and the West Midlands. As an incubator for business in the
automotive, motor sport and aerospace sectors, the Technium Performance
Engineering Centre was developed at Llanelli Gate.
Local Government has been successful in attracting additional investment and
tourism to Llanelli and the surrounding areas over the past decade and have
completed successful developments including:
zz The Millennium Coastal Park
zz Machynys Peninsular Golf Course (part of Llanelli Millennium Coastal Park)
zz Out of town retail parks at Trostre and Pemberton
zz The 2008 rugby stadium Parc y Scarlets, home to Llanelli Scarlets, one of
the most famous rugby union clubs in the world.
zz The only new national racecourse in the UK in 80 years, the £25 million
Ffos Las, near Trimsaran
zz A further 200 million investment (subject to planning) will be made in the
Delta Lake - Llanelli Wellness and Life Science Village which will include
a Life Style Institute and Laboratory, state of the art sports and leisure
centre, Health and Well-being centre, Wellness Hotel and Assisted Living
Village. This project is being pioneered by the Council in partnership
Abertawe and Swansea Universities and is predicated to create up to
2,000 high quality jobs and boost economy by £467 million over 15 years.
zz The local development policy for Carmarthenshire has identified a
requirement for approximately 15,000 dwellings included a proposed
homes number of 10,799 between April 2017 and April 2021.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
FOODSTORE
PROVISION
76
The subject property is the dominant
A4
foodstore within Llanelli town centre.
Within a 5 minute Drive time the
84
A4
competing foodstore provision is
8
13
as follows:- CA
A4
P EL
IS AF
84
A
RO
4 84
4
A AD
z Tesco Extra – Parc Trostre Retail Park
z Morrisons – Pemberton Retail Park
ST ELLI CENTRE
z Aldi – Swanfield Pace
A
48
4
A 41 3 8
The nearest Sainsbury’s is located in
Swansea, 12.5 miles away (approximately
LLANELLI
B 43
a 35 minute drive). A 48
4
04
4
30
B4
PARC TROSTRE
RETAIL PARK
B43
04
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
ST ELLI CENTRE
The St Elli Centre is the dominant shopping
provision within Llanelli and is the only indoor
centre west of Swansea. Other national
retailers present in the town include Wilkinson,
Poundland, Peacocks and Argos.
The total Centre extends to approximately 160,000
sq ft (including the foodstore) and is anchored by
the 72,460 sq ft subject property with a further
24 retail units situated within the covered mall
under a distinctive glass roof creating a light and
airy shopping environment for customers.
Benefiting from a footfall of 7 million per annum
the Centre links directly with the popular and busy
Council operated indoor market and two further
pedestrianised entrances onto Stepney Street and
the town’s bus station, located adjacent.
In total the Centre benefits from 980 car parking
spaces, of which 530 spaces are contained
within a multi-storey car park above the adjoining
indoor market.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
THE SUBJECT
PROPERTY
The Asda foodstore is a purpose-built
supermarket extending to 72,460 sq
ft. The foodstore fronts the demised
450-space surface car park which is
accessed directly off Upper Robinson
Street.
The surface car park which is demised
to Asda operated on the basis of 2 hours
free parking, refundable on customers
spending over £5 in the foodstore.
Servicing for the foodstore is via
Murray Street into a demised covered
loading bay.STEAMIN MUGS
TENURE
ROMAN ORIGINALS
YOURS CLOTHING
NORTH
CARD CENTRE
BURGER KING
VODAFONE
VACANT
Long leashold (999 at
LABE
MISS
CANDLE
YANKEE
peppercorn) - as higlighted
URBAN
BAGZ LTD
VACANT
VAPING
within the green line on the
adjacent plan.
Petrol
Station
For Identification purposes onlyMAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX TENANCY The property is leased to Asda Stores Limited by way 3 occupational leases outlined below: UNIT 21: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a passing rental of £29,450 per annum. Reviewed 5 yearly to OMV. UNIT 22: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a current passing rental of £28,285 per annum. Reviewed 5 yearly to OMV. SUPERSTORE AND PETROL FILLING STATION: Let by way of a 35 year FRI lease with effect from 27th May 1997 expiring 26th May 2032 at a passing rental of £1,265,000 per annum. Reviewed 5 yearly to OMV. There are therefore approximately 14 years unexpired. The aggregate current passing rental is £1,322,735 per annum, reflecting a rate of approximately £18 per sq ft, excluding the petrol filling station, and based upon a total floor area of 72,460 sq ft.
MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
TENANT COVENANT
Asda Stores Limited (Company Number 464777) is one of the big four
supermarkets in the UK and has a market share in the order of 16%.
The company has approximately 630 stores as at December 2016
and employs circa 180,000 people.
Asda’s ultimate parent company is Walmart Stores Inc, which according
to Forbes Global 500 List, is the world’s largest company by revenue.
Asda Stores Limited
Year Ending Year Ending Year Ending
31/12/2015 31/12/2016 31/12/2017
000’s 000’s 000’s
Turnover £22,066,000 £21,408,500 £21,951,800
Pre-Tax Profit £633,300 £477,200 £379,000
Total Net Worth £5,332,000 £5,196,700 £5,007,300
D&B Rating 5A1 based upon a tangible net worth of £5.007 billion and
a minimum risk of business failure.MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY
ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX
EPC
Available on request.
VAT
The subject property has been elected for the
purposes of VAT and it is anticipated that the sale
will be treated as a Transfer of Going Concern.
PROPOSAL
My clients are seeking offers for their freehold
interest in excess of £20,450,000 (TWENTY
MILLION, FOUR HUNDRED AND FIFTY
THOUSAND POUNDS), subject to contract and
exclusive of VAT, reflecting an attractive net initial
yield of 6%, after allowing for standard purchaser’s
costs of 7.8%.
For further information, please contact:
JONATHAN MILBURN
020 7637 7100
jonm@jacksoncriss.co.uk
Jackson Criss, West End House, 11 Hills Place, London W1F 7SE
Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice 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 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 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. 100796. Designed by TCC 06/18.You can also read
