THE SATURN PORTFOLIO - Wilkinson Williams
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CHRISTCHURCH Retail Park, Christchurch // B&Q Warehouse, St Margaret’s Way, Leicester // Dunstable Road Retail Park, Luton // Cairngorm Retail Park, Winterhill, Milton Keynes // Mountbatten Retail Park, Southampton // B&Q/Halfords, Tonbridge THE SATURN PORTFOLIO A portfolio of institutional retail warehousing located in the southern half of the UK
PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 2 CHRISTCHURCH LEICESTER LUTON M90 MILTON KEYNES SOUTHAMPTON TONBRIDGE M8 EDINBURGH GLASGOW M77 M74 NEWCASTLE UPON TYNE CARLISLE SOUTH SHEILDS M6 A1 (M) HARTLEPOOL DURHAM A66 (M) MIDDLESBROUGH A1 (M) YORK M6 BRADFORD LEEDS HULL BLACKPOOL M65 M62 M62 GRIMSBY LIVERPOOL MANCHESTER M56 SHEFFIELD M1 STOKE-ON-TRENT NOTTINGHAM M6 DERBY LEICESTER CHRISTCHURCH RETAIL PARK, BARRACK ROAD, CHRISTCHURCH BH23 2BN BIRMINGHAM M6 COVENTRY B&Q WAREHOUSE, ST MARGARET’S WAY, LEICESTER LE4 0BG MILTON KEYNES M1 DUNSTABLE ROAD RETAIL PARK, LUTON LU4 8EZ M50 M11 LUTON CAIRNGORM RETAIL PARK, WINTERHILL, MILTON KEYNES MK6 1AZ A1 (M) M5 M40 M4 CARDIFF BRISTOL M4 SWINDON LONDON MOUNTBATTEN RETAIL PARK, WESTERN ESPLANADE, SOUTHAMPTON SO15 1BA M2 B&Q/HALFORDS, CANNON LANE, TONBRIDGE, KENT TN9 1BQ M25 M3 GUILDFORD M20 TONBRIDGE M23 SOUTHAMPTON M5 CHRISTCHURCH BRIGHTON EXETER BOURNEMOUTH
INVESTMENT HIGHLIGHTS THE SATURN portfolio PAGE 4 INVESTMENT HIGHLIGHTS THE SATURN PORTFOLIO PROVIDES A UNIQUE OPPORTUNITY TO ACQUIRE A SIZEABLE PORTFOLIO OF INSTITUTIONAL QUALITY RETAIL WAREHOUSING LOCATED IN THE SOUTHERN HALF OF THE UK. THE MAJORITY OF THE SCHEMES COMPRISE MODERN PURPOSE BUILT RETAIL PARK ACCOMMODATION PROVIDING A SUCCESSFUL TRADING ENVIRONMENT. PRIME LOCATIONS WIDE RETAILER BASE STRONG CASHFLOW POTENTIAL FOR CAPITAL AND RENTAL GROWTH All the subject properties are The portfolio is let to a The portfolio is well let with a 48% of the current total income situated within approximately diversified blend of national out current occupancy rate of 98% provides for fixed or RPI related 100 miles of Central London, of town retailers with only one and an average unexpired term income within the next 5 years, with the majority being in void across the portfolio. 68% of of 9.4 years, assuming break while other asset management the South of England. All the portfolio income is made up clauses and 10.5 years ignoring opportunities exist across the the schemes are situated in from the following tenants: break clauses. 87% of the leases portfolio to increase capital and substantial and/or wealthy B&Q 25% have over 8 years to run. grow rents. conurbations benefiting DSG Retail 15% from significant catchment Assuming the sole vacant unit Carpetright 8% Income by Covenant Strength Unexpired Term (years) populations. is let, and with the benefit of the Homebase 8% fixed and RPI linked (assuming DFS 6% 15 income will rise from £7,532,182 3a1 to £8,291,946 by the end of 2017. The remaining 32% of the 4a1 11–15 portfolio income is made up of 14 tenants with no one tenant 5a1 8–11 generating more than 5% of the total income.
PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 5 PORTFOLIO OVERVIEW GIA Unexpired term* Current rent Current rent % of total Comments (Sq ft) (Years) (per annum) (per sq ft) portfolio income Christchurch 101,107 8.5 £1,943,377 £19.22 26% Wickes fixed uplift in March 2014 and Carpetright fixed uplift in September 2016. CHRISTCHURCH Retail Park Leicester 77,300 15.0 £1,325,490 £17.15 18% 5 yearly compounded rent review linked to RPI capped and collared at 0% and B&Q Warehouse 3% per annum respectively. Luton 46,850 9.8 £1,015,000 £21.66 13% DSG fixed uplift in September 2017. Vacant unit to let. Dunstable Road Retail Park Milton Keynes 57,432 10.0 £1,407,213 £24.50 19% Carpetright fixed uplift in December 2014 and DFS fixed uplifts in June 2016 Cairngorm Retail Park & 2021. Southampton 52,159 9.4 £987,102 £18.92 13% Wren fixed uplift in April 2013 and DSG fixed uplift in October 2016. Mountbatten Retail Park Tonbridge 57,397 10.7 £854,000 £14.88 11% – B&Q / Halfords 392,245 sq ft 10.5 years £7,532,182 £19.20 100% Institutional quality portfolio of retail warehousing in Southern England *Excluding break options TOTAL NUMBER OF ASSETS TOTAL CURRENT INCOME TOTAL GIA AVERAGE UNEXPIRED LEASE TERM 6 £7,532,182 392,245 10.5 years per annum sq ft (ignoring break options)
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 6 CHRISTCHURCH RETAIL PARK BARRACK ROAD CHRISTCHURCH BH23 2BN
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 7 INVESTMENT SUMMARY Situated in the affluent south coast town of Christchurch, benefiting from a catchment population of over 300,000 people within a 20 minute drive time. Located in a highly prominent and accessible position just west of Christchurch railway station, Christchurch Retail Park fronts Barrack Road (A35), the main road linking Christchurch to Southampton and Bournemouth. Purpose built modern retail warehouse park extending to approximately 101,107 sq ft (9,393 sq m). Restricted A1 (non-food) planning consent. Freehold. The property is let to Homebase, Pets at Home, Comet, Harveys, Carpetright, Halfords, Maplin Electronics, Wickes Kitchens & Bathrooms and Pizza Hut. Average weighted unexpired term of 8.5 years. The current rent is £1,943,377 per annum (overall rent of £19.22 per sq ft) with fixed uplifts in 2014 and 2016.
BRISTOL CHIPPENHAM A346 READING M4 CLEVEDON CHRISTCHURCH Retail A4 Park Christchurch THE SATURN PORTFOLIO PAGE 8 NEWBURY BATH M5 A38 WESTON-SUPER-MARE A339 A33 A338 BASINGSTOKE A37 ANDOVER A361 A338 A303 A31 A36 M3 E A39 OV BRIDGEWATER FA GR A3060 IR SALISBURY R IV E R WAY E M TH WINCHESTER IL A303 RO E TAUNTON SHAFTTESBURY A36 EASTLEIGH AD A350 A3 A358 A354 A338 CA YEOVIL ST M27 LE THE G A303 LA SOUTHAMPTON NE ROVE A31 WATERLOOVILLE E AS CHRISTCHURCH RETAIL PARK A338 A27 T A3060 A35 PORTSMOUTH BA B3073 HURST AVENUE A37 RR A348 CHRISTCHURCH AC A35 K A35 RO LYME REGIS BOURNEMOUTH AD DORCHESTER NEWPORT SS A35 CHRISTCHURCH PA AD BY H RO A354 RC HOLDEN HU N AD C ST GA RI CH RO WEYMOUTH CLIN BA RR A C K ROA D A35 H R C B3059 ILF HU O HI TC RD GH T S TR E E AD RI LA NE S Location Situation Retail Warehouse CH CR RO AN AD POKESDOWN L UR EI RO GH SOUT STO RO RT AD FO HB O U AU Provision in BE RN Christchurch lies on the south coast Christchurch Retail Park is situated onA35 the RO TUCK TON ROA D E UE AD ERY AVEN of England in the county of Dorset, convergence of Barrack Road (A35) and the CARB approximately 5 miles east of Bournemouth, B3073, to the west of Christchurch Railway Pa r k w o od r o Christchurch 25 miles south west of Southampton Station. The A35 is the main road linking a B3059 BR d OA DW B3059 and 105 miles south west of London. Christchurch to Southampton to the east AY AD Christchurch has excellent road and Bournemouth to the west. The B3073 RO BELLE N V UE R O A W D SOUTHBOURNE OVER C HU communications linking directly to the connects the town north to Bournemouth O CLIFF DRIVE RCH D ROAD IL There is a limited amount of competing W Bournemouth/Poole conurbations via the Airport and to the A338, which travels north DA LM EN accommodation in the town, which extends A35, which also connects north east to to Salisbury. Y O AD to the following: R Southampton and the M3 via the M27. The property is located in a mixed use Meteor Retail Park Christchurch is served by a mainline railway area with light industrial, small retail units 70,658 sq ft (6,564 sq m) station with rail services between London and residential dwellings all located within Tenants include PC World and Bathstore Waterloo, Southampton and Bournemouth the vicinity of the retail park. The scheme with top rents at £14.50 per sq ft. The park stopping at Christchurch, with the fastest adjoins a Landrover car dealership. has a bulky goods consent. journey time to London (Waterloo) of approximately 1 hour 50 minutes. Stony Lane Retail Park c.55,000 sq ft (5,110 sq m) Bournemouth International Airport is Tenants include Magnet, Tiles R Us and located only 5 miles to the north of B&Q. Rents range from £7.00 per sq ft to Christchurch providing air travel to and from £10.00 per sq ft. The park has a bulky goods the UK and major European cities. consent with certain exceptions. The town lies at the confluence of the Rivers Currys/Carpetright Stour and Avon, creating a natural harbour 25,052 sq ft (2,327 sq m) and providing the town a thriving focal point Located east of the town centre on Stony for local business that attracts thousands of Lane. Top rents here are £16.50 per sq ft. tourists every year.
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 9 Catchment & Demographics Description Christchurch has a 10 minute drive time Key demographics indicators for Christchurch include: The subject property provides a purpose built “L” shaped terrace catchment population of 84,917 people and of 8 units, let to Homebase, Pets at Home, Comet, Harveys, Maplin a 20 minute drivetime of 307,678 people Christchurch UK Average Electronics, Carpetright, Halfords and Wickes Kitchens & Bathrooms. and is an affluent town highlighted by the % Catchment in AB Social Group 32% 26% Homebase, Comet, Halfords and Harveys benefit from substantial high proportion of the catchment with mezzanine floors used for retail sales. There is also a standalone an AB social grouping, 32%, and the low % Catchment in D or E Social Group 17% 25% A3 unit, which is occupied by Pizza Hut. representation of those classed as D or E The units are of steel portal frame construction with brick elevations, social grade, 17%. % Catchment Owner Occupy 76% 70% glazed frontages and a pitched roof. Access and egress to the park Christchurch benefits from its own harbour, is via Bailey Drive, which itself is accessed off Barrack Road to the and its economy has, therefore, historically north. There is separate servicing to the rear of the terraces, which is been associated with harbour and maritime accessed off the southern end of Bailey Drive. based trade. In the modern era, the harbour WIMBOURNE ST. GILES The property provides approximately 520 dedicated car parking has helped the town diversify its economy A338 spaces, reflecting an attractive car parking ratio of 1 : 194 sq ft to become a thriving tourist destination. A31 VERWOOD LINWOOD LYNDHURST (1 : 18.02 sq m). Within the wider vicinity, Bournemouth WITCHAMPTON A35 The total site area extends to approximately 7.98 acres Airport, and its associated businesses, RINGWOOD (3.23 hectares). provides significant employment in and WEST MOORS A31 BURLEY around the Bournemouth area, specifically A338 BROCKENHURST Christchurch. This sector is earmarked to WIMBORNE expand over the next few years. MINSTER A348 A31 FERNDOWN CORFE A341 NEW MILTON MULLEN A35 A3060 UPTON CHRISTCHURCH A337 BOURNEMOUTH MILFORD ON SEA A35 POOLE 20 MINUTE DRIVETIME CATCHMENT
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 10 Tenancy Schedule Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) Date term review rent rent (years) (Per Annum) (sq ft) 1 Homebase Ltd 34,840 29/09/1996 25 28/09/2021 8.95 29/09/2016 £590,000 £16.93 Pets City Ltd 2 10,098 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,960 £20.00 Being assigned to Pets at Home Ltd. t/a Pets at Home 3 Comet Group Ltd 10,095 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,900 £20.00 4 Harveys Furnishing Ltd 10,000 29/09/1996 25 28/09/2021 8.95 29/09/2016 £200,000 £20.00 5 Maplin Electronics Ltd 5,070 18/09/2007 15 17/09/2022 9.92 18/09/2012 £126,750 £25.00 Outstanding rent review. 6 Carpetright plc 10,102 29/09/1996 25 28/09/2021 8.95 29/09/2016 £242,897 £24.04 Fixed uplift on 20/09/2016 to £268,178 per annum. 7 Halfords Ltd 7,579 29/09/1996 25 28/09/2021 8.95 29/09/2016 £155,370 £20.50 8 Pizza Hut (UK) Ltd 3,194 23/05/1998 23 28/09/2021 8.95 23/05/2013 £72,000 £22.54 9 Wickes Building Supplies Ltd 10,129 01/03/2010 5 28/02/2015 2.37 01/03/2014 £145,000 £14.32 Fixed uplift on 01/03/2014 to £180,000 per annum. Sub station SSE Services plc 0 09/01/1998 60 08/01/2058 45.23 – £0 – Southern Electric Power Wayleave 0 24/12/2001 999 01/01/3001 988.19 – £0 – There is no term on the Wayleave. It is terminable on 6 months’ notice by either party. Distribution Ltd ATM Bank Machine Ltd 0 13/04/2007 6 12/04/2013 0.49 – £7,500 – Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – Initial 5 year term. Agreement rolls over thereafter. Rent payable to equal 20% of advertising revenue. TOTALS 101,107 8.5 £1,943,377 £19.22 Planning Tenancies The property benefits from a restricted A1 (non-food) planning The property is let in its entirety in consent, with specific restrictions. These restrictions include the accordance with the above tenancy sale of food for human consumption (except confectionery), schedule and produces a current rental alcohol, tobacco, clothing, footwear and sports goods, chemist income of £1,943,377 per annum, equating goods, jewellery, books and newspapers and magazines (except to an overall rent of £19.22 per sq ft. where ancillary to the types of goods sold from that unit), toys, The property benefits from an average crockery and glassware (except where this is ancillary to the types unexpired lease term of 8.5 years. of goods sold). The leases to Wickes and Carpetright A planning summary can be provided upon request. benefit from fixed rental uplifts in 2014 and 2016 respectively. Ground Conditions An updated Environmental Report is available upon request.
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 11 Tenants’ Covenants The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below: UNIT Tenant Year Sales Turnover Profit/Loss Pre Net Worth D&B Ending (000s) Taxes (000s) (000s) Rating 26/02/2011 £1,457,093 £62,094 £396,948 1 Homebase Ltd 5A1 27/02/2010 £1,477,990 £41,322 £364,856 31/03/2011 £511,576 £75,174 £229,976 2 Pets at Home Ltd 5A1 25/03/2010 £462,646 £65,853 £162,401 30/04/2011 £1,478,201 -£39,555 £43,384 3 Comet Group Ltd 5A1 30/04/2010 £1,586,368 -£2,951 £58,837 4 Harveys Furnishing Ltd 5A2 31/12/2011 £205,025 £24,784 £143,711 5 Maplin Electronics Ltd 5A1 01/01/2011 £213,123 £35,709 £126,437 30/04/2011 £486,800 £6,600 £1,200 6 Carpetright plc 1A2 01/05/2010 £516,600 £22,300 £4,000 01/04/2011 £771,400 £122,000 £350,900 7 Halfords Ltd 5A1 02/04/2010 £817,600 £109,200 £261,500 28/11/2010 £346,174 -£22,185 £11,642 8 Pizza Hut (UK) Ltd 3A1 29/11/2009 £362,549 -£12,122 £31,470 31/12/2011 £981,450 £40,375 £230,250 9 Wickes Building Supplies Ltd 5A1 01/01/2011 £969,052 £48,573 £208,590 Tenants’ Profile Trading Profile / The scheme is fully let to substantial retailers with significant exposure to the UK out of town market. A brief summary of these is set out below: Harveys Harveys is one of the largest furniture specialists in the UK with over 150 stores and are wholly owned Maplin Electronics Maplin is one of the leading retailers of electronic goods in the UK with nearly 200 stores across Asset Management by Steinhoff International, who are now one of the the country and over 2,000 employees. In 2004 This is the prime retail park in Christchurch Homebase top 5 furniture groups in Europe and Australasia, Montagu Private Equity purchased 67% of the and we understand that the tenants Homebase is owned by the Home Retail Group and the largest in Africa providing the backing and company from Graphite Capital. trade well. and is one of the 3 largest DIY retailers in the UK infrastructure of a huge global furniture leader. with more than 300 stores. Homebase serves over Wickes The scheme is well configured and provides 65 million customers per year through its stores and Carpetright Wickes is one of the UK’s leading DIY, home a variety of unit sizes across the park. online services. Carpetright is the UK’s leading retailer of floor improvements and building supplies retailers, The scheme benefits from a generous car coverings currently trading from approximately trading from around 200 stores nationwide. Pets at Home parking ratio and subject to the appropriate 703 stores. The company has a London Stock Wickes Building Supplies Ltd is a wholly owned Pets at Home was acquired by private equity house, planning consents, could accommodate a Exchange listing with a current market capitalisation subsidiary of Travis Perkins plc, a significant KKR in 2010 in a deal worth £955 million and has further pod unit, which would bring further of approximately £460 million. FTSE 250 company. more than 300 pet stores across the UK. footfall to the scheme. Comet Halfords Pizza Hut The former QinetiQ site to the rear of Halfords Ltd are the UK’s leading retailer of Comet is one of the UK’s leading electrical goods Pizza Hut is one of the largest restaurant chains in Christchurch Retail Park is currently being automotive, bicycles and associated products and retailers with 240 stores throughout the UK and the UK and is an international franchise that offers considered for a mixed use development, currently trade from in excess of 467 stores in the has benefitted from the recent demise of Best different styles of pizza and side dishes. Pizza Hut is which has recently received foodstore UK and Ireland. Buys UK operations. As of February 2012, Comet a subsidiary of Yum! Brands Inc, the world’s biggest consent, subject to a section 106. Such a is now owned by private investment partnership restaurant company. scheme would benefit the subject property OpCapita LLP. significantly, making the area a destination location extending beyond the current catchment. More information regarding this proposed scheme is available upon request.
Barrack Retail Park Christchurch THE SATURN PORTFOLIO PAGE 12 EPCs Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Non-Domestic Building Non-Domestic Building Non-Domestic Building Non-Domestic Building 338 338 338 338 This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. Homebase Ltd Certificate Reference Number: Pets at Home Certificate Reference Number: Comet Plc Certificate Reference Number: Rosebys Certificate Reference Number: 1 Bailey Drive 0050-5064-0361-9660-0050 2 Bailey Drive 0050-4041-0341-6340-5090 3 Bailey Drive 0050-3045-0301-4640-2024 4 Bailey Drive 0361-3075-0717-0200-6901 CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH BH23 2BN BH23 2BN BH23 2BN BH23 2BN This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating 0 2 312 7 2 312 7 1 312 7 2 312 1 6 6 6 0 8 6 8 0 6 3 6 0 5 4 5 SK-250421-359663 SK-632010-698643 SK-006232-667620 SK-200111-659210 More energy efficient More energy efficient More energy efficient More energy efficient A+ A+ A+ A+ 364 364 364 364 1 1 1 1 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 6 0 - 0 0 5 0 - 5 0 6 4 - 0 3 6 1 - 9 6 6 0 - 0 0 5 0 - S K 2 5 0 4 2 1 3 5 9 6 6 3 - D C L G x E P C g e n 2 0 0 8 7 1 - 0 0 5 0 - 4 0 4 1 - 0 3 4 1 - 6 3 4 0 - 5 0 9 0 - S K 6 3 2 0 1 0 6 9 8 6 4 3 - D C L G x E P C g e n 2 0 0 8 7 9 - 0 0 5 0 - 3 0 4 5 - 0 3 0 1 - 4 6 4 0 - 2 0 2 4 - S K 0 0 6 2 3 2 6 6 7 6 2 0 - D C L G x E P C g e n 2 0 0 8 6 9 - 0 3 6 1 - 3 0 7 5 - 0 7 1 7 - 0 2 0 0 - 6 9 0 1 - S K 2 0 0 1 1 1 6 5 9 2 1 0 - D C L G x E P C g e n 2 0 0 8 26 B 26-50 26 B 26-50 26 B 26-50 26 B 26-50 C 51-75 60 This is how energy efficient the building is. C 51-75 71 This is how energy efficient the building is. C 51-75 C 51-75 69 This is how energy efficient the building is. D 76-100 D 76-100 D 76-100 79 D 76-100 286 286 286 286 This is how energy efficient the building is. 52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125 F 126-150 F 126-150 F 126-150 F 126-150 78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks 260 260 260 260 104 104 104 104 Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Grid Supplied Electricity Buildings similar to this one Main heating fuel: Grid Supplied Electricity Buildings similar to this one could have ratings as follows: could have ratings as follows: could have ratings as follows: could have ratings as follows: 130 130 130 130 Building environment: Heating and Natural Ventilation Building environment: Heating and Natural Ventilation Building environment: Air Conditioning Building environment: Air Conditioning 44 37 60 58 156 Total useful floor area (m2 ): 156 Total useful floor area (m2 ): 156 Total useful floor area (m2 ): 156 4558 If newly built 1015 If newly built 907 If newly built Total useful floor area (m2 ): 1112 If newly built Building complexity Building complexity Building complexity Building complexity (NOS level): 3 64 If typical of the existing stock (NOS level): 3 50 If typical of the existing stock (NOS level): 3 100 If typical of the existing stock (NOS level): 3 92 If typical of the existing stock 182 208 234 182 208 234 182 208 234 182 208 234 Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Non-Domestic Building Non-Domestic Building Non-Domestic Building Non-Domestic Building 338 338 338 338 This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. Carpetright Plc Certificate Reference Number: Halfords Ltd Certificate Reference Number: Pizza Hut (UK) Ltd Certificate Reference Number: Unit 5 Certificate Reference Number: 6 Bailey Drive 0050-5051-0371-1600-9034 7 Bailey Drive 0966-3065-0911-0700-6205 26 Bailey Drive 0050-5084-0381-2630-6050 Bailey Drive 0050-9065-0331-8670-5050 CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH BH23 2BN BH23 2BN BH23 2BN BH23 2BN This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating Energy Performance Asset Rating 0 7 312 0 2 312 7 4 312 0 2 312 2 1 3 1 2 0 6 0 1 0 5 0 5 0 4 0 SK-211462-348143 SK-663652-320343 SK-161002-149343 SK-234401-358300 More energy efficient More energy efficient More energy efficient More energy efficient A+ A+ A+ A+ 364 364 364 364 1 1 1 1 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 6 7 - 0 0 5 0 - 5 0 5 1 - 0 3 7 1 - 1 6 0 0 - 9 0 3 4 - S K 2 1 1 4 6 2 3 4 8 1 4 3 - D C L G x E P C g e n 2 0 0 8 6 9 - 0 9 6 6 - 3 0 6 5 - 0 9 1 1 - 0 7 0 0 - 6 2 0 5 - S K 6 6 3 6 5 2 3 2 0 3 4 3 - D C L G x E P C g e n 2 0 0 8 1 5 0 - 0 0 5 0 - 5 0 8 4 - 0 3 8 1 - 2 6 3 0 - 6 0 5 0 - S K 1 6 1 0 0 2 1 4 9 3 4 3 - D C L G x E P C g e n 2 0 0 6 0 - 0 0 5 0 - 9 0 6 5 - 0 3 3 1 - 8 6 7 0 - 5 0 5 0 - S K 2 3 4 4 0 1 3 5 8 3 0 0 - D C L G x E P C g e n 2 0 0 8 26 B 26-50 26 B 26-50 26 B 26-50 26 B 26-50 C 51-75 67 This is how energy efficient the building is. C 51-75 69 This is how energy efficient the building is. C 51-75 C 51-75 60 This is how energy efficient the building is. D 76-100 D 76-100 D 76-100 D 76-100 286 286 286 286 E 101-125 E 101-125 E 101-125 E 101-125 150 52 52 52 52 F 126-150 F 126-150 F 126-150 This is how energy efficient the building is. F 126-150 78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks Technical information Benchmarks 260 260 260 260 104 104 104 104 Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one Main heating fuel: Natural Gas Buildings similar to this one could have ratings as follows: could have ratings as follows: could have ratings as follows: could have ratings as follows: 130 130 130 130 Building environment: Heating and Natural Ventilation Building environment: Heating and Natural Ventilation Building environment: Air Conditioning Building environment: Heating and Natural Ventilation 37 35 55 30 156 Total useful floor area (m2 ): 156 Total useful floor area (m2 ): 156 Total useful floor area (m2 ): 156 951 If newly built 812 If newly built 457 If newly built Total useful floor area (m2 ): 518 If newly built Building complexity Building complexity Building complexity Building complexity (NOS level): 3 50 If typical of the existing stock (NOS level): 3 53 If typical of the existing stock (NOS level): 4 104 If typical of the existing stock (NOS level): 3 43 If typical of the existing stock 182 208 234 182 208 234 182 208 234 182 208 234
CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 13 EPCs Energy Performance Certificate Non-Domestic Building 338 This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. M F I Furniture Centre Ltd Certificate Reference Number: 5 Bailey Drive 0670-0031-0740-0204-0006 CHRISTCHURCH BH23 2BN This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. Energy Performance Asset Rating 7 1 312 6 6 3 4 SK-311332-699420 More energy efficient A+ 364 1 Net zero CO2 emissions A 0-25 1 1 6 - 0 6 7 0 - 0 0 3 1 - 0 7 4 0 - 0 2 0 4 - 0 0 0 6 - S K 3 1 1 3 3 2 6 9 9 4 2 0 - D C L G x E P C g e n 2 0 0 26 B 26-50 C 51-75 D 76-100 286 52 E 101-125 116 This is how energy efficient the building is. F 126-150 78 G Over 150 Less energy efficient Technical information Benchmarks 260 104 Main heating fuel: Natural Gas Buildings similar to this one could have ratings as follows: 130 Building environment: Air Conditioning 57 156 Total useful floor area (m2 ): 975 If newly built Building complexity (NOS level): 3 90 If typical of the existing stock 182 208 234
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 14 B&Q WAREHOUSE ST MARGARET’S WAY LEICESTER LE4 0BG
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 15 INVESTMENT SUMMARY Situated in the major commercial centre of Leicester, benefiting from a catchment population of 580,298 within a 20 minute drive time. Located in a highly prominent and accessible position approximately one mile to the north of Leicester city centre, fronting the A6 dual carriageway. Purpose built modern retail warehouse extending to approximately 77,300 sq ft (7,181 sq m) with associated garden centre. Restricted planning consent. Freehold. The property is let to B&Q plc on a lease expiring in October 2027, with a tenant’s rolling break option from October 2022. The current rent is £1,325,490 per annum (£17.15 per sq ft), with the lease providing for 5 yearly rent reviews in line with the increase in RPI, subject to a ‘cap’ and ‘collar’ of 3% and 0% per annum respectively.
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 16 Retail Warehouse Provision in Central Leicester The subject property provides the dominant Other than Abbey Road Retail Park DIY store serving central Leicester. The mentioned below the nearest retail nearest competing stores are occupied by warehousing is St Georges Retail Park Wickes (circa 25,000 sq ft) on St George’s (135,000 sq ft) situated 1 mile to the south Retail Park situated approximately 1 mile to of the subject property. This has an open A563south, whilst Homebase occupy a store the non-food consent with occupiers including RE A563 DH ILL WAY AY of circa 35,000 sq ft 1 mile south of the city Wickes, Currys/PC World and Toys ‘R’ Us. A156 A563 DW AY RM EA WA57 WATE centre on Welford Road. Planning consent has been obtained for a CHESTERFIELD E LD LINCOLN EF M1 CR Tesco of approximately 70,000 sq ft on part Location CONGLETON B&Q also have a small store extending to E M6 MANSFIELD of the site occupied by Wickes and IV A46 DR NE CREWE A6 A617 32,500 sq ft at Wigston on the southern X PC World. LA IFA A60 A17 A515 STR side of the conurbation. HAL ASB EY WREXHAM BE OU ASHBOURNE RG AU D ABB STOKE-ON-TRENT R IV E M The city of Leicester is the second largest WHITCHURCH A1121 O N T The other major provision of retail NOTTINGHAM A1 A15 LE YS Directly to the south of the subject property A515 L AN warehousing comprises approximately Y DERBY conurbation in the East Midlands and the E WA GRANTHAM A41 UTTOXETER DONNINGTON is the Abbey Road Retail Park (32,700 sq ft) H A6 RI T A50 A46 320,000 sq ft of accommodation is at NF major commercial centre for Leicestershire. A518 which is occupied by The Range, GL E HEACHA VE A49 M D RI Leicester is situated approximately 100 miles STAFFORD BURTON UPON TRENT Fosse Park and Fosse Park South adjacent NEWPORT LOUGHBOROUGH Carpetright and Halfords. A607 A5 M6 TOLL A563 A6 KING’S LYNN to Junction 21 of the M1 to the south west. E (160 km) north of London, 40 miles (64 km) M1 RIV A41 A460 SHREWSBURY E There are no competing DIY stores in RD A5 CANNOCK AN north east of Birmingham and 30 miles PARKE M42 L M54 TAMWORTH this location. EY (48 km) south of Nottingham. M6 TOLL LEICESTER A47 UPPINGHAM A47 A1 A47 WOLVERHAMPTON ABB A5 A458 M6 A6 PETERBOROUGH M69 The city benefits from very good road NUNEATON Situation A605 A49 M1 MARKET CORBY BIRMINGHAM communications with the M1 motorway A442 A46 M6 A5 HARBOROUGH A1 (M) DROAD IR A6 being situated immediately to the west SOLIHULL A50 KB COVENTRY D KIDDERMINSTER KETTERING AB OA BE AC RUGBY of the conurbation with direct access Y ER M42 A46 ANHUNTINGDON PA BL STEY RK The subject property is situated in a highly The immediate vicinity comprises a AV REDDITCH ST MA ROYAL WELLINGBOROUGH L ANE via Junctions 21 and 21a. Junction 21 and A45 RO R M5 LEAMINGTON SPA M1 A49 AD LG 21a also provide direct access to the M6 A46 NORTHAMPTON prominent and accessible position at the mixture of commercial and residential R BE A423 CAMBRIDGE G AR E T ’ S WORCESTER and the West Midland’s conurbation. The STRATFORD UPON AVONM40 A5 A6 junction of St Margaret’s Way (A6) and accommodation. In 2007, Leicester City A449 A46 A417 TOWCESTER BEDFORD city benefits from a direct rail serviceGREAT to MALVERN GRO BY RD Blackbird Road (A5237) approximately Council adopted the Abbey Meadows EVESHAM HEREFORD London St Pancras, with a journey time of BANBURY A43 MILTON KEYNES A1 A50 M11 WA 1 mile north of Leicester city centre. supplementary planning document, which A44 A607 RTH Y approximately 1 hour and 15 minutes. St Margaret’s Way (A6) forms the principal provides for comprehensive redevelopment M40 A6 NO A5 A47 A49 M5 A424 dual carriageway E Rroute leading from the OAD of the Abbey Meadows area situated on WO TON OAD A44 STEVENAGE B ER S CHELTENHAM UM city centre Hto the north, which makes the the eastern side of the A6 approximately OD M1 A1 (M) GLOUCESTER TE ER A40 GA G VEY A594 location highly accessible to a substantial 0.25 miles from the subject property. This TU SAN AT AYLESBURY FOSS AY DO A47 E W catchment population. The A6 links to is a large scale redevelopment to provide RR N H OA UG the A563 (outer ring road) approximately various commercial uses, including a science D A6030 VA A594 0.75 miles to the north of the subject park, together with substantial residential St Georges Retail Park property, then onwards onto the intersection development. with the A46 to the north, which then DS ROAD A47 S TG HAR E RIC provides direct access to the M1 motorway. O A47 KING R G ES W LEICESTER OX FO AY R D A5460 ST REE T A594 A6 AD LO N RO D ON RO GH AD OU OR
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 17 CASTLE DONINGTON BURTON WYSALL A46 WALTHAM ON UPON TRENT THE WOLDS A607 COLSTERWORTH M1 A511 MELTON LOUGHBOROUGH MOWBRAY COALVILLE COTTESMORE A607 MARKFIELD A606 TWYFORD A46 TAMWORTH TWYCROSS M1 M42 LEICESTER A47 WIGSTON UPPINGHAM M69 HINCKLEY A6 FLECKNEY NUNEATON M69 M6 M1 CORBY MARKET HARBOROUGH A6 20COVENTRY MINUTE DRIVETIME CATCHMENT M6 KETTERING Catchment & Demographics Description PROMIS estimate that Leicester’s primary Key demographic data is included in the table below: The subject property provides a prominent The main customer access/exit point is catchment population is approximately purpose built retail warehouse extending to via a traffic light controlled junction on 920,000 people, ranking it the 10th largest Leicester PROMIS approximately 77,300 sq ft (7,181 sq m) GIA. St Margaret’s Way and there is a secondary Catchment Av/GB Av out of the PROMIS 200 centres. This is access point, which is shared by service The property was constructed in 1993 above the regional average and compares Household owner occupiers 2001 74% 70% vehicles off Blackbird Road. and is of steel portal frame construction closely with the likes of Edinburgh and under a pitched roof. Elevations are clad The site extends to a total area of Bristol. Within a 20 minute drive time of Per capita RW expenditure 2001 £427 £476 with flat cladding above masonry. The unit approximately 7.26 acres (2.94 hectares). the subject property there is an estimated Estimated population growth 2011-2016 0.8% 0.6% benefits from a dominant entrance feature, catchment population of 580,298 people. (% per annum) with similar high profile extended signage 24% of the catchment population are zones situated on the 2 front corners of the classified as being within AB social group AB social classification 2001 24% 25% building fronting St Margaret’s Way. On the (more affluent) as compared to the national western side of the building is an enclosed average of 25%. Car ownership is close to garden centre, to the rear of which is a the national average, with 32% owning 2 dedicated service yard. or more cars, as compared to the national At the front of the building is a average of 30%. tarmacadamed customer car park providing The catchment population is predicted to approximately 415 spaces, equating to a benefit from above average population ratio of 1 : 186 sq ft (1 : 17.3 sq m). growth, estimated to be 0.8%, as compared to the 200 PROMIS centres of 0.61%. In 2010 the service sector accounted for 73% of total employment, with manufacturing standing at 14%, both being close to the national average. Major employers in the town include Santander, Next, Walkers Snack Food and Babcock.
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 18 Tenancy Schedule Tenant GIA LEase Term Expiry Unexpired Next rent Current Current Comments (sq ft) start (years) Date term review rent rent (years) (Per annum) (per sq ft) Rent is payable monthly. 5 yearly compounded rent reviews linked to RPI capped and collared at 0% and 3% p.a. B&Q Plc 77,300 19/10/2007 20 18/10/2027 15.00 29/09/2017 £1,325,490 £17.16 respectively. Tenant rolling break option from 19/10/2022. 12 month’s notice required. No penalty if exercised. TOTALS 77,300 £1,325,490 £17.16 Planning Tenure The property has planning consent for a The site, as approximately outlined in red, is non-food retail warehouse, garden centre held freehold. and ancillary parking. There is a restriction that no part of the building should be used as a foodstore. The sale of goods is restricted to building and DIY supplies, furniture, self-assembly furniture, floor Tenancy coverings, fabrics and ancillary items, The property is let to B&Q plc on a lease electrical appliances, goods and materials expiring on 18 October 2027 with a tenant’s and fittings, motor vehicles, cycles and spare rolling option to determine from 19 October parts, garden furniture, tools and equipment, 2022 subject to 12 months notice. The lease caravans, tents and camping equipment provides 5 yearly upward only rent reviews and associated items, boats, dinghies and in line with the increase in the Retail Price associated items. A planning summary can Index, subject to a minimum of 0% per be provided upon request. annum and a maximum of 3% per annum. The current rent is £1,325,490 per annum, which equates to £17.15 per sq ft. Ground Conditions An updated Environmental Report is available upon request.
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 19 Tenant’s Covenant We summarise below the most recent accounts for B&Q plc, together with the latest Dun & Bradstreet rating. UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s) 29/01/2011 £3,711,700 £144,700 £3,656,700 1 B&Q plc 5A1 30/01/2010 £3,792,400 £400,400 £3,476,400 D&B rating – 5A1 (minimum risk of business failure). Trading Profile / Tenant Profile Asset Management B&Q plc is a wholly owned subsidiary of This is the dominant DIY store serving the Kingfisher Group plc and is the UK’s market central Leicester conurbation and due to its leading DIY retailer. In recent years, they have accessible location and limited competition, expanded to international markets and now understand that it trades well. In addition, currently trade in excess of 950 stores in we believe the size of the store, being circa 8 countries throughout Europe and Asia. 70,000 sq ft, is likely to provide a highly efficient trading format for B&Q. However, we believe the property could potentially, subject to obtaining the necessary consents, be subdivided to create a small retail park, with the additional benefit of the potential to develop additional accommodation on the garden centre and ‘pod’ units in the car park, should B&Q wish to relocate. Alternatively, we consider it would make an ideal foodstore site, subject to tenant demand and the necessary planning consents. Due to the nature of the rent review clause and expectation for the increase in the Retail Price Index, this investment provides a secure income stream with the benefit of inflation linked uplifts secured against a successful trading destination.
B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 20 EPC Energy Performance Certificate Non-Domestic Building 338 This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. Commercial Union Life Assurance Ltd Certificate Reference Number: B & Q Plc 0744-3045-0119-0800-9091 St Margarets Way LEICESTER LE4 0BT This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website www.communities.gov.uk/epbd. Energy Performance Asset Rating 7 6 312 1 4 4 6 SK-521520-010243 More energy efficient A+ 364 1 Net zero CO2 emissions A 0-25 4 6 - 0 7 4 4 - 3 0 4 5 - 0 1 1 9 - 0 8 0 0 - 9 0 9 1 - S K 5 2 1 5 2 0 0 1 0 2 4 3 - D C L G x E P C g e n 2 0 0 8 26 B 26-50 46 This is how energy efficient the building is. C 51-75 D 76-100 286 52 E 101-125 F 126-150 78 G Over 150 Less energy efficient Technical information Benchmarks 260 104 Main heating fuel: Natural Gas Buildings similar to this one could have ratings as follows: 130 Building environment: Heating and Natural Ventilation 38 156 Total useful floor area (m2 ): 7302 If newly built Building complexity (NOS level): 4 50 If typical of the existing stock 182 208 234
dunstable road retail park luton THE SATURN PORTFOLIO PAGE 22 DUNSTABLE ROAD RETAIL PARK LUTON LU4 8EZ
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 23 INVESTMENT SUMMARY Situated in the major commercial centre of Luton, benefiting from a catchment population of over 410,000 people within a 20 minute drive time. Located in a highly prominent and accessible position to the north of Luton town centre, fronting Chaul End Lane, less than a mile from Junction 11 of the M1 motorway, being in close proximity to Hatters Way Retail Park and units occupied by PC World and B&Q. Modern retail warehouse parade extending to approximately 46,850 sq ft (4,353 sq m). Part restricted / part open A1, planning consent. Freehold. Asset management opportunities available to let newly refurbished vacant unit. The property is let to DSG Retail Ltd and Next Group plc providing a weighted average unexpired term of just less than 10 years. The current rent is £1,015,000 per annum (overall rent of £25.38 per sq ft) with a fixed uplift on the Currys unit in 2017.
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 24 Letchworth Letchworth A5 M1 A6 Leighton Leighton Buzzard Buzzard A5 D A4146 A505 Stevenage Stevenage ROA Dunstable Luton M1 A5 A505 E NU A1081 Luton Airport IN A1(M) E AV MONTROSE AVENUE H TC M1 I ER N oak M1 LL Welwyn SH A Tring Garden City WA Tring C le ST O RO M11 A414 11 yr A505 F Harlow CK T A1(M) oa Hemel Hemel new bedford road A10 RO Hempstead Hempstead St Albans IN AD d A41 D UN GS VA M1 A414 STA B LE ROAD TO UX Abbots Abbots M25 A1(M) NE ROAD HA A414 Langley Langley LE Cheshunt E LL W AG AN M25 DUNSTABLE ROAD RETAIL PARK AY RAV DU END L NS TA E RO A D Enfield M11 Watford M1 BL Barnett E UL RO M25 CHA D A Brentwood HATTERS WAY RETAIL PARK Beaconsfield M25 A406 A505 A1 M10 HAT AD A10 TER A6 RO Uxbridge SW IN A40 AY CH A13 IT Slough London H M4 Location A505 LUTON AD RO DU EN G RE NS Luton is located 35 miles north of London, Investment within Luton is evident on the M1 Y TA LE AW BL CR 12 miles north of Hemel Hempstead, 13 miles edge of the town at Putteridge Bury where E RO A north of St Albans and 15 miles west of a high-technology office park, Butterfield D t Stevenage. Green, is under construction as well as the uc pa r d former Vauxhall site, which is to be k via The town benefits from good road kim re-developed as a mixed use scheme called p to communications and is strategically located n Napier Park. ro ET ad RE adjacent to Junctions 10 and 11 of the M1 A505 CASTLE ST L motorway and is well served by a number of H IL Y LE primary roads including the A6 trunk road R FA and the A505 dual carriageway, which links the A1 and the A5. airport way Luton benefits from a regular train service with a quickest journey time to London Situation Retail Warehouse Provision in Luton (St Pancras) of approximately 35 minutes. Dunstable Road Retail Park is situated on Luton possesses one of the fastest growing Chaul End Lane close to its junction with airports in the UK in Luton International Dunstable Road, approximately 2.5 miles Airport, which offers flights to European and north west of Luton town centre. Junction 11 The subject property is one of 3 main concentrations of retail worldwide destinations. of the M1 motorway is conveniently located warehousing in Luton. We summarise the remaining 2 below: approximately 1 mile directly to the west A major town centre regeneration of the scheme providing easy access to Gipsy Lane Retail Park programme is currently underway in 161,955 sq ft (15,044 sq m) customers from the M1 corridor. Luton, which will include upgrades to the Located south east of the town centre, tenants include B&Q, Comet, town’s bus and railway stations, as well The subject property is located in a cluster Toys ‘R’ Us, Halfords and Argos. The scheme has an open A1 (non- as improvements to the town’s urban of retail warehousing with PC World situated food), with certain exceptions, planning consent and rents range from environment. to the immediate north of the scheme £16.75 – £30.00 per sq ft. while approximately 500 yards to the south, is Hatters Way Retail Park, which is Hatters Way Retail Park 90,635 sq ft (8,425 sq m) occupied by Dreams, Harveys, Paul Simon, Tenants include DFS, Carpetright, Paul Simon, Harveys and Dreams. Carpetright, DFS and ScS. The park has bulky goods consent and is located immediately south of the subject property. Rents range from £25.00 – £30.00 per sq ft.
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 25 20 MINUTE DRIVETIME CATCHMENT A421 A1 M1 A507 MILTON KEYNES FLITWICK A5 HITCHIN A6 A1(M) LEIGHTON TODDINGTON BUZZARD A505 STEVENAGE A5 LUTON A4146 DUNSTABLE M1 A1(M) HARPENDEN WELWYN TRING GARDEN CITY A41 HEMEL HEMPSTEAD ST. ALBANS M25 POTTERS BAR M1 AMERSHAM M25 M25 ENFIELD HIGH WYCOMBE WATFORD Catchment & Demographics Description Luton has a catchment population of We summarise the key demographic data in the table below: Dunstable Road Retail Park comprises a 323,000 people and a significant 20 minute terrace of 3 modern retail units located drive time catchment of approximately within a large surface car park. 414,339 people. Luton’s population is PROMIS PROMIS Ranking The units are of steel portal frame forecasted to rise at a higher rate than LUTON Average Out of 200. 1 = best construction with brick and profile metal the national average over the period 2011 Average Household Size 2.5 2.3 n/a cladding under a pitched roof. The 2 to 2016. southernmost units have recently been Luton’s catchment, in terms of affluence, Per Capita in store Comparison £2,463 £2,392 70 refurbished, providing attractive full height is broadly similar to that of the national Expenditure 2011 glass frontages. One of these units has average, whilst per capita retail warehouse been let to Next, which benefits from a expenditure for 2011 was significantly higher Per Capita Retail Warehouse £513 £476 38 full mezzanine floor while the second is Expenditure 2011 than the national average and, furthermore, vacant and available to let. Currys occupy the forecast growth of comparison spend the final unit. The scheme extends to Forecast growth in comparison 1.2% 1.0% 73 for 2011 to 2016 is forecast at a higher rate retail expenditure 2011-16 (% Per Annum) a total of approximately 46,850 sq ft than the national average. (4,353 sq m) GIA. Practical Population 0.9 0.7 33 In 2010, the service sector accounted for Growth 2011-2016 The park is accessed off Chaul End Lane 80% of total employment and within this with rear servicing provided to all of sector, financial and business services the units. accounted for 27% of total employment, The property provides approximately 204 both figures slightly above the retail PROMIS dedicated car parking spaces, reflecting an average. The manufacturing sector at Luton attractive car parking ratio of 1 : 231 sq ft accounts for 8% of total employment slightly (1: 21.5 sq m). below the retail PROMIS average. The total site area extends to approximately 3.03 acres (1.23 hectares).
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 26 Tenancy Schedule Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) Date term review rent rent (years) (Per Annum) (sq ft) 1A Next Group plc 13,000 19/03/2012 10 18/03/2022 9.42 19/03/2017 £250,000 £19.23 Rent review is capped at £282,852 per annum. 1B To Let 6,850 – – – – – – – Fixed uplift at 2017 rent review at 3% per annum 2 DSG Retail Ltd 27,000 29/09/2002 20 28/09/2022 9.95 29/09/2017 £765,000 £28.33 compounded. 2017 rent: £887,000 per annum. Initial 5 year term. Agreement rolls over thereafter. Rent Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – payable to equal 20% of advertising revenue. TOTALS 46,850 9.8 £1,015,000 £25.38 Tenancies Planning The property is part let with one vacant The Currys unit benefits from a restricted unit in accordance with the above tenancy A1 (non-food) consent while the Next and schedule and produces a current rental vacant unit benefit from an open A1 (food income of £1,015,000 per annum, equating and non-food) consent. to an overall rent of £25.38 per sq ft. A planning summary can be provided VAU XHA The property benefits from an average upon request. DEA LL LER SHI unexpired lease term (ignoring breaks) of P 9.8 years. Tenure The lease to DSG Retail Ltd includes a fixed rental uplift in 2017. Ground T QF 6,85 LET 0S The site, as outlined in red on the plan, is TO held freehold. Conditions An updated Environmental Report is available upon request.
Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 27 Tenants’ Covenants The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below: UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s) 30/04/2011 £3,858,000 £18,400 £327,600 1 DSG Retail Ltd 5A1 01/05/2010 £4,110,495 -£2,136 £285,700 29/01/2011 £188,400 £590,300 £1,667,000 2 Next Group plc 5A1 30/01/2010 £182,800 £677,000 £1,244,000 Tenants’ Profile Trading Profile / Asset Management The scheme is let to Currys and Next with one have benefited from the recent demise of unit vacant and available to let. Currys and Best Buy’s UK operations, together with a Next are substantial retailers with significant reduction in the number of competing stores exposure to the UK out of town market. A brief operated by Comet. 2 of the units on this scheme have recently PC World site into a food store. The potential summary of these is set out below: been refurbished and reclad, with Unit 1A for Currys and PC World to occupy a single Next now let to Next. There remains a prominent unit may provide the opportunity to regear the Currys Next is one of the best known UK fashion and refurbished unit available to let. The lease on advantageous terms with the tenant. Currys is the UK’s leading retailer of electrical retailers and is listed in the FTSE 100 with a unit benefits from an unrestricted consent goods, being the sister company of PC current market capitalisation of £5.71 billion. and indeed could possibly be extended to World, both of which are subsidiaries of Over recent years, Next have expanded their the rear. Dixons Retail plc which is listed on the Home operation. They currently trade from London Stock Exchange, with a market over 500 stores across the country with With PC World occupying a unit extending capitalisation of approximately £759 million. their last results showing a 3% increase in to approximately 25,000 sq ft (2,323 sq m) Currys and PC World currently trade from turnover to £188.4 million. adjacent to the subject property, we believe over 1,200 stores throughout the UK and Dixons are keen to consolidate both the PC World and Currys fascias into a single store. We understand their preferred option is to retain the store on the subject property, and indeed, there are proposals to redevelop the
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