The Norham Portfolio A High Yielding UK Retail Portfolio - Cushman & Wakefield
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The Norham Portfolio
A High Yielding UK Retail Portfolio
INVESTMENT
Norham Portfolio
Investment Summary
• High yielding UK retail portfolio let to notable tenants including Carphone Warehouse,
Monsoon, BrightHouse Santander and the Disney Store.
• Total income of £485,135 with upcoming rent review
• WAULT of approximately 5 years to expiry
• Significant asset management opportunities.
• We are instructed to seek offers in excess of £4,550,000 which reflects an attractive net initial
yield of 10.08% assuming purchaser’s costs of 5.8%
2-6 Murraygate, Dundee
16 Baxter Gate, Doncaster
1 Market Street, Pontypridd
33 High Street, Ramsgate
INVESTMENT
Norham Portfolio
Portfolio Analysis
Income by Location
16 Baxter Gate,
1 Market Street, Doncaster, DN1 1JU
Pontypridd, CF37 2ST 22%
6%
33 High Street,
Ramsgate, Kent, CT11
2 - 6 Murraygate,
9AG
Dundee, DD1 2AZ
8%
64%
Income by lease length
5 – 10 Years
44%
1 - 5 Years
50%
15 – 20 Years
6%
INVESTMENT
Norham Portfolio
Tenancy Schedule
Lease Lease
Address Tenant Size ITZA Rent
Commencement Expiry
Alliance and Leicester Plc t/a
16 Baxter Gate, 371.23 (3,996 89.56 sq m
Santander 23.4.2001 22.4.2021 £106,635
Doncaster, DN1 1JU sq ft) (964 sq ft)
(Not in occupation)
Unit A - Carphone 51.74 sq m 44.22 sq m
24.5.2015 23.5.2018 £32,500
Warehouse (557 sq ft) (476 sq ft)
2 - 6 Murraygate, 848.47 sq m 171.68 sq m
Unit B - Disney Stores Ltd 14.7.1997 13.7.2017 £166,000
Dundee (9,133 sq ft) (1,848 sq ft)
Unit C - Monsoon Holdings 240.15 sq m 109.34 sq m
14.10.1997 13.10.2022 £110,000
Ltd (2,585 sq ft)** (1,177 sq ft)
1 Market Street, 400.85 sq m 224.8 sq m
More 4 Your Money Limited 3.10.2014 2.10.2035 £30,000*
Pontypridd, CF37 2ST (4,314 sq ft) (2,420 sq ft)
33 High Street,
Caversham Trading t/a 429 sq m 192.6 sq m
Ramsgate, Kent, 2.09.2010 1.09.2020 £40,000
Brighthouse (4,627 sq ft) (2,420 sq ft)
CT11 9AG
Total £485,135
• * Includes vendor top up on stepped rent
• ** 2nd Floor inaccessible and therefore does not form part of the measurements.
INVESTMENT
Carphone Warehouse, Disney Stores &
Monsoon
2 – 6 Murraygate, Dundee DD1 2AZ
Location Accommodation
Dundee is located approximately 60 miles north of Unit A
Edinburgh and has a population of 150,000 people.
The city is located on the east coast of Scotland Description Sq M Sq Ft
enabling good access to the M90 linking Dundee to the Ground Floor 51.74 557
wider region. Dundee is easily accessed by rail
including the InterCity service to the south and regular ITZA 44.22 476
trains from Dundee link the town to Edinburgh and the
east coast mainline. Unit B
Description Description Sq M Sq Ft
The property comprises a three storey building of Ground Floor 182.08 1,960
traditional sandstone construction surmounted by a
pitched and slated roof. The property provides three First Floor 219.71 2,365
modern retail units with ancillary and storage
accommodation behind the period façade. Second Floor Store 233.27 2,511
Internally, the property has been fitted to each of the Third Floor 213.39 2,297
tenant’s specification and generally comprise timber
and vinyl floors, plastered and painted walls, plastered Total 848.47 9,133
and painted ceiling with fluorescent lights and
spotlights. ITZA 171.68 1,848
The retail units have the further benefit of a rear Unit C
service access which is common to all three tenants
and is accessed directly off Commercial Street. Description Sq M Sq Ft
Situation Ground Floor Sales 128.94 1,388
The subject property is situated in a prominent corner First Floor Stores 111.20 1,197
position on the northern side of the Murraygate at its
intersection with Commercial Street. Murraygate is the Total * 240.15 2,585
prime retailing street in Dundee nearby occupiers
include Zara, J D Sports, Dorothy Perkins and H&M. ITZA 109.34 1,177
* 2nd floor inaccessible and not measured.
INVESTMENT
Carphone Warehouse, Disney Stores &
Monsoon
2 – 6 Murraygate, Dundee DD1 2AZ
Tenancy Information The Disney Store Ltd – 02523767
The property is let on three tenancies with a total income The Disney Store opened its first store in 1987 and forms
of £308,500 pa as follows: part of the Walt Disney Company specialising in the
retailing of Disney merchandise.
Unit A
27.09.2014 28.09.13 29.09.12
Carphone Warehouse have recently renewed their lease
for a further 3 years at an annual rent of £32,500 expiring Turnover £128,126,000 £122,848,000 £123,637,000
on 23 May 2018. Pre-tax Profit £6,930,000 £311,000 £370,000
Unit B
Shareholders £14,437,000 £9,924,000 £9,655,000
The unit is let on a 20 year lease to Disney Stores from 14 Funds
July 1997 expiring on 13 July 2017 at an annual rent of
£166,000.
Monsoon Holdings Limited – 01200163
Unit C
Monsoon is a fashion retailer founded in 1973 and now
Unit C is let to Monsoon Holdings Ltd for 25 years from 14 trades over 1,000 stores along with sister brand
October 1997 expiring on 13 October 2022 at an annual Accessorize.
rent of £110,000.
30.08.2014 31.08.13 25.08.12
Covenant
Turnover - - -
The Carphone Warehouse - 02142673
Pre-tax Profit £20,825,369 £7,194.815 £5,809,648
Carphone Warehouse is a British mobile phone retailer,
with over 2,400 stores across Europe. Carphone Shareholders £30,237,871 £30,412,503 £30,481,136
Warehouse is a subsidiary of Dixons Carphone following Funds
the merger of Dixons Retail and Carphone Warehouse in
2014. Tenure
29.03.14 30.03.13 31.03.12
Freehold
Turnover £1,783,569,000 £1,671,731,000 £1,513,072,000
EPC
Pre-tax Profit £90,986,000 £98,895,000 -£108,239,000
EPC’s are available on request.
Shareholders £964,141,000 £874,654,000 £850,041,000
Funds
INVESTMENT
Santander
16 Baxter Gate, Doncaster DN1 1JU
Location Situation
Doncaster is one of the principal market towns in Baxter Gate is a primary pedestrianised retail pitch in
South Yorkshire located approximately 20 miles north Doncaster benefitting from high levels of footfall. The
east of Sheffield and 28 miles south east of Leeds. unit is situated advantageously between House of
The town lies immediately to the north of the Fraser and Primark. Other surrounding occupiers
intersection of the A1(M) and M18 motorways, include Greggs, Marks and Spencer and Boots. The
providing excellent access to the motorway network. indoor and outdoor markets are located a short
The town is served by Doncaster railway station distance to the east and the Frenchgate Shopping
providing regular direct services to Leeds, York, Hull Centre to the west.
and London with an approximate journey time to
London Kings Cross of 1 hour 40 minutes. Accommodation
Description Description Sq M Sq Ft
The property comprises a corner terraced, three Ground Floor 126.53 1,362
storey building of brick and block cavity wall
construction. The unit benefits from dual frontages First Floor 124.43 1,339
onto St Geroge Gate and Baxter Gate and is fitted
with suspended ceilings, recessed spot lights, air Second Floor 120.27 1,295
conditioning and cashier desks. The first floor is fitted
out as cellular meeting rooms whilst the second floor Total 371.23 3,996
is used as ancillary storage and staff area including
Ground Floor ITZA 89.56 964
WC’s and kitchenette.
INVESTMENT
Santander
16 Baxter Gate, Doncaster DN1 1JU
Tenancy Information Covenant
The property is let to Alliance and Leicester Plc (now part Alliance & Leicester was taken over by and subsequently
of Santander UK Plc) for a term of 20 years expiring 22 merged into Santander UK Plc in 2008. Santander UK Plc
April 2021. The lease is drafted on Full Repairing and has a D&B rating of A1, a summary of recent financial
Insuring terms with 5 yearly upward only rent reviews to performance is set out below:
Market Rent. The passing rent is £106,635 per annum
exclusive of VAT. The tenant is no longer occupying the Santander UK Plc - 02294747
property and has expressed interest in paying to
surrender the lease. 31.12.14 31.12.13 31.12.12
EPC Turnover - - -
The property has an Energy Performance Certificate Pre-tax Profit £1,399,000,000 £1,139,000,000 £1,231,000,000
rating of D (99). Further information is available upon
request.
Shareholders £14,537,000,000 £12,250,000,000 £12,949,000,000
Funds
INVESTMENT
More 4 Your Money
1 Market Street, Pontypridd CF37 2ST
Location Accommodation
Pontypridd is situated within the administrative county Description Sq M Sq Ft
of Rhondda Cynon Taff and has a population of
approximately 30,000 people. The town is located Ground Floor Sales 224.8 2,420
approximately 12 miles north of Cardiff and is Mezzanine 14.6 157.15
connected to the wider road network via the A470
trunk road which links North and South Wales to the First Floor Storage 142.4 1,533
M4 motorway.
Total 381.7 4,108
Regular rail services via the Valley Lines rail network
link Pontypridd to Cardiff and to the wider rail network. Ground Floor ITZA 85.4 919
Situation
Tenancy Information
The subject property is located on the west side of
Market Street forming part of the retail core of The property is let to More For Your Money Limited on a
Pontypridd Town Centre. The unit fronts the 21 year lease commencing on the 3 October 2014. The
pedestrianised pitch of Market Street with notable rent payable is £15,000 per annum for the first, second
surrounding occupiers including Superdrug, New and third years of the term, rising to £30,000 per annum
thereafter until the first rent review on 3 October 2019.
Look, Costa and Boots.
the rent is to be topped up to the latter figure by the
Description vendor.
The subject property comprises a two storey unit of
brick construction under a pitched slate roof. The The tenant has the option to terminate the lease on the
property is currently fitted out as a retail unit and the tenth and fifteenth anniversary of the rent
first floor level is used as storage. The ground floor commencement date subject to no less than six months
includes a mezzanine level comprising office and notice.
kitchen facilities.
To the rear of the property there is a shared service
yard used for bin storage and car parking.
INVESTMENT
More 4 Your Money
1 Market Street, Pontypridd CF37 2ST
Tenure
Freehold.
Covenant
More 4 Your Money - 08399167
More 4 Your Money was registered on 12 February
2013 and is a locally based value retailer.
28.02.14
Turnover -
Pre-tax Profit -
Shareholders Funds £16,481
EPC
The property has an EPC Rating of E (101). Further
information is available upon request.INVESTMENT
BrightHouse
33 High Street, Ramsgate, Kent
Location
Ramsgate is a port town located on the eastern coast Accommodation
Description Sq M Sq Ft
of Kent, approximately 80 miles east of London and
17 miles north east of Canterbury. The town has an Ground Floor Sales 192.6 2,073
urban population of approximately 40,000 people with
a further 127,000 in the local district. Ground Floor Ancillary 10.68 115
Ramsgate benefits from excellent transport links with First Floor 210.16 2,264
the A253 and A229 trunk roads linking the town
directly to the M2 motorway and M25 to the west. Second Floor 50.10 539
Situation Total 463.55 4,991
The unit is located on the pedestrianised High Street Ground ITZA 87.66 944
which forms part of the prime retailing core of
Ramsgate.
Tenancy Information
Notable occupiers in the immediate area include WH
Smith, Boots and Specsavers. The unit is let to Caversham Trading t/a Brighthouse
on a 10 year lease from 2 September 2010 to 1
Description September 2020 at an annual rent of £40,000, subject
to a cap of £48,000.
The property is a mid terrace building arranged over
ground, first and second floors. The unit benefits from A tenants option to break has recently been removed
an extensive glazed high street frontage. highlighting BrightHouse’s commitment to the unit.
Internally the unit is fitted out to the tenants own
specification with sales accommodation on the ground
and first floors whilst the second floor is used for
storage.
Externally to the rear of the property there is a
concrete surface yard providing loading and parking
facilities.INVESTMENT
BrightHouse
33 High Street, Ramsgate, Kent
Covenant Strength
Caversham Trading Limited - 05396147
Caversham Trading is owned by private equity firm
Vision Capital and trades as Brighthouse, one of the
UK’s leading rent-to-own retail chain providing home
electronics, domestic appliances and household
furniture to over 270,000 people.
31.03.14 31.03.13 31.03.12
Turnover £70,032,000 £75,961,000 £186,838,000
Pre-tax Profit £7,131,000 £8,235,000 £3,625,000
Shareholders £68,075,000 £58,815,000 £50,469,000
Funds
EPC
The property has an Energy Performance Certificate
of G (248).
Further information is available upon request.INVESTMENT
Norham Portfolio
Asset Management
The portfolio provides many asset management opportunities including ;
• Negotiate a surrender of the current lease (with premium) on the Baxter Gate property and secure a new
letting capitalising on the unit’s strong trading position.
• Re-gear the lease to the Disney Store improving the value and WAULT on the Murray Gate property.
• Sell out smaller units in Kent and Pontypridd which are likely to be of significant appeal to private
investors and well suited to auction sale.
Proposal
We are instructed to seek offers in excess of £4,550,000 which reflects an attractive net initial yield of
10.08% assuming purchaser’s costs at 5.8%.
Our clients may also consider individual offers for the individual assets.
VAT & TOGC
All properties are elected for VAT and it is proposed that the sale be treated as a transfer of a going concern
(TOGC).INVESTMENT
Norham Portfolio
Contact
For further information please
contact
Richard Turner
+44 (0)191 223 5720
richard.turner@cushwake.com
Peter Atkinson
+44 (0)191 223 5715
peter.atkinson@cushwake.com
Katy Paxton
+44 (0)191 223 5752
katy.paxton@cushwake.com
Stephen Bibby
+44 (0)131 222 4523
stephen.bibby@cushwake.com
Sarah Stewart
+44 (0)131 222 4524
Sarah.stewart@cushwake.com
Cushman & wakefield copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to
errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as
to the condition of the property (or properties) in question.You can also read
