TAUNTON - BINDON ROAD - Secured to Matalan Retail Limited with 10.4 years unexpired Open A1 Planning Use - Truffull
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RETAIL WAREHOUSE INVESTMENT TAUNTON – BINDON ROAD Secured to Matalan Retail Limited with 10.4 years unexpired Open A1 Planning Use Sat Nav Ref: TA2 6AA
INVESTMENT SUMMARY
• Taunton is the County Town of Somerset which benefits from an affluent catchment and very little competition
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• The property is fully let on a FRI lease to Matalan Retail Limited until September 2029 – providing an unexpired
lease term of 10.4 years
• Matalan Retail Limited boast a D&B rating of 5A1 (minimum risk of business failure)
• The passing rent reflects a very low rental base of £8.17 psf
• The property comprises a 1.52 acre site reflecting a low 25% site coverage
• Rare Open A1 Planning use
• Various asset management opportunities
• Low capital value of £118 psf
• Freehold
Fawcett Mead
TAUNTON – BINDON ROAD
Total current income: £175,185 per annum
Price: £2,530,000
Net Initial Yield: 6.50%
Bristol
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Taunton
Fawcett Mead
TAUNTON – BINDON ROAD
LOCATION
Taunton is the County town of Somerset and is located 49 miles
south west of Bristol, 36 miles north east of Exeter and 158 miles
west of London.
Taunton town centre is located four miles west of Junction 25
of the M5 motorway.
In addition, the town has a mainline railway station, with a
journey time to London of approximately 1 hour 39 minutes.
Taunton has a population of 110,000 persons (2011 Census) and a
primary retail catchment of 338,000 persons, which ranks the town
72nd in the UK on this measure (Source: PROMIS).
Taunton benefits from below average competition from competing
retail centres and ranks 26 out of the 200 PROMIS centres on the
PMA Competition Indicator. The closest significant competition stems
from Exeter and Bristol, which are 36 and 49 miles away respectively.
A325
9 Heron Gate
Retail & Leisure
Park
4
A35 St Johns
8
d Retail Park
dR
oo
sw
ior
Pr
Taunton Deane
Retail Park
A3087
A358
A3038 Taunton
Retail Park
Fawcett Mead
TAUNTON – BINDON ROAD
Priory Fields
d R
Retail Park
Silk Mills
A38 M5
RETAIL WAREHOUSING - TAUNTON Taunton Retail Park is owned by BP Pension Fund and is a traditional retail and leisure
park comprising 7 units of 86,000 sq ft in total. The scheme is located approximately 3.1
miles to the east of the subject property, and hosts several national occupiers, including
Retail warehouse supply in Taunton is estimated at 497,000 sq ft,
Currys/PC World, Oak Furniture Land, The Range, Costa Coffee and Pizza Hut.
ranking the town below the PROMIS average. The majority of the
out of town retail provision in Taunton is situated between the town
Further to these key schemes, there is also Deane Retail Park and St Johns Retail Park.
centre and Junction 25 of the M5 Motorway. This includes the two
Deane Retail Park is owned by Columbia Threadneedle and key tenants include Halfords
largest schemes, Priory Fields Retail Park and Taunton Retail Park.
and Bensons for Beds. St Johns Retail Park hosts DFS and Go Outdoors.
Priory Fields Retail Park is owned by Orchard Street Investment
Other than the above, there are a number of key solus non-food operators in Taunton, and
Management and is a traditional park comprising 8 units of 136,000
these predominantly offer DIY and furniture goods. The subject property is one of few
sq ft in total. This modern scheme is located approximately 1.6
retail warehouses that allows for Open A1 planning consent in Taunton, with the others
miles to the east of the subject property, and hosts several national
restricted to the sale of Bulky Goods.
occupiers, including Wickes, Carpetright and Dunelm.
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Fawcett Mead
TAUNTON – BINDON ROAD
SITUATION DESCRIPTION
The subject property is situated on Bindon Road approximately The subject property was constructed in the 1990’s and comprises of a
1.2 miles north west of the town centre, near the junction of the single storey steel portal frame, with concrete floor slab and brickwork
A358 and the A3027 which form the main arterial route into the elevations.
town centre.
The property benefits from 143 surface level car parking spaces, offering
The property is situated between Chaplin’s Home Store and Cook an attractive ratio of 1:150.
Way trade counter which hosts a number of established auto
service occupiers. The site area totals 1.52 acres (0.62 hectares), reflecting a low site
coverage of 25%.
In addition, Taunton Independent School and Nuffield Health
Taunton Hospital are in close proximity. Eaves height of 15.4 ft (4.7 m).
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Fawcett Mead
TAUNTON – BINDON ROAD
ACCOMMODATION TENANCY
The property comprises the following approximate gross internal floor areas: The property is let on a Full Repairing and Insuring Lease to
Matalan Retail Limited for a term of 15 years from 4 September
Total 21,439 sq ft 1,992 sq m 2014, expiring on 3 September 2029 (10.4 years unexpired).
The rent is subject to five yearly, upward only open market rent
TENURE reviews in 2019 and 2024.
The total current income is £175,185 per annum.
Freehold
The site totals 1.52 acres, comprising 143 car parking spaces (1:150 ratio).
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Fawcett Mead
TAUNTON – BINDON ROAD
COVENANT INFORMATION
Established in 1985, today Matalan is one of the UK’s leading value retailers.
£1.06 billion £29.8 million
The company trades from 230 UK stores and serves 12 million UK shoppers each year. (up 2.5% Y-o-Y) (up 189.3% Y-o-Y)
turnover Pre Tax Profit
Matalan Retail Limited display a D&B rating of 5A1 which indicates a “minimum risk” of
business failure. The last two annual accounts are summarised below:
Y-o-Y 24/02/2018 25/02/2017
Turnover 2.5% £1,062,500,000 £1,036,100,000
12 million 230 stores
Pre Tax Profit 189.3% £29,800,000 £10,300,000 shoppers each year in the UK
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Rare Open A1 Planning use, various
asset management opportunities
INVESTMENT COMPARABLES
Fawcett Mead
TAUNTON – BINDON ROAD
Set out below are a number of comparable investment evidence from the South West region:
DATE TOWN ADDRESS TENANT PRICE YIELD UNEXPIRED TERM
Sep 2018 Yeovil Lysander Road B&M Homestores £4,715,000 6.22% 11 years
Apr 2018 Swindon Ashworth Road Wren Kitchens £5,500,000 6.13% 7 years
Mar 2018 Bodmin Dunmere Home Bargains £2,600,000 5.94% 12 years
ASSET MANAGEMENT OPPORTUNITIES
• Realise a rental uplift at the upcoming rent review in September 2019. The unit is let off a very low rental For indicative purposes only.
base of £8.17 psf. We are aware of recent comparable rental evidence in the region of £10.00 - £13.00 psf.
Further information available upon request.
EPC
• Consider developing A3/A1 pods on the car par (STPP).
The property has an EPC rating of B (50).
PLANNING
VAT
Open A1 (including food) Planning Use.
The property is elected for VAT. It is anticipated
The subject property is one of few retail warehouses that allows for open A1 planning consent in Taunton, with that the sale will be treated as a Transfer Of a
others restricted to the sale of Bulky Goods. Going Concern (TOGC).9
Fawcett Mead
TAUNTON – BINDON ROAD
PROPOSAL
We are instructed to seek offers in excess of
£2,530,000 (Two Million Five Hundred and
FURTHER INFORMATION
Thirty Thousand Pounds), Subject to Contract
and exclusive of VAT. Allowing for purchasers
Joe Baio Richard Bashford
costs of 6.39%, a purchase at this level would
joe@fawcettmead.co.uk richard@fawcettmead.co.uk
reflect a Net Initial Yield of 6.50%. 020 7182 7489 020 7182 7497
07515 889 649 07774 619 204
Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. SUBJECT TO CONTRACT | Designed by Graphic Outlines Ltd 2019You can also read
