THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD - PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY - Nightingale ...
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THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
TOWN CENTRE BUS STATION ALDI
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
Weighted average unexpired lease term in excess of 10.4 years to break
THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY INVESTMENT SUMMARY • Macclesfield is ranked within the top 30 in the country by PMA in terms of affluence. • Freehold. • Prime town centre leisure & retail warehouse scheme comprising three units totalling 60,597 sq ft • Let to Dave Whelan Sports, Sports Direct, Bar Fever & Cheshire East Council. • Site area 1.65 acres (0.65 hectares) providing a low site coverage of 41%. • Rental income of £602,461 per annum, reflects a low rent passing of £9.94 per sq ft overall. • WAULT of 11 years to expiry and 10.4 years to break. • The property benefits from a mixed Open A1, A3 and D2 planning consent. 91.7% of the income is secured against covenants rated as • ‘minimum’ risk of business failure. • Offers are sought in excess of £8,000,000 (Eight Million Pounds), subject to contract and exclusive of VAT. Assuming purchaser’s costs of 6.64% with a net income of £602,461 per annum, a purchase at this level reflects an attractive net yield of 7.06%. Extremely low capital value of £132 per sq ft. • INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
Horwich BOLTON 2
20
6 A58 3 19
5 M61 LOCATION
4
17
19 OLDHAM
3 20
16 Macclesfield is an affluent and prosperous market town located in the north-east of
Walkden 21
22 Cheshire and situated at the edge of the Peak District.
14 Wardley
A627
A580 SALFORD Macclesfield is approximately 20 miles to the south of Manchester, 22 miles north of
A6010 A628 Stoke on Trent, and 38 miles to the east of Chester.
12
2 23
1
3
Eccles
11
10 M67 The town is in a highly accessible location benefiting from excellent road communications
M62 MANCHESTER 24 3 3 with Junction 19 of the M6 motorway being approximately 12 miles west and only 11
miles to Manchester’s orbital motorway, the M60.
22 11 A6
10 6 A34 25
Macclesfield Railway Station is 150 metres from the subject property, on the Stafford to
9
21A
A56 5 27 26
Manchester section of the West Coast Main Line and has frequent services to Manchester
21 3 2 4 3 2 Piccadilly (25 minutes), Stoke on Trent (16 minutes) and London Euston
1
(1 hour 47 minutes).
4
M60
M56 5 Manchester Airport (the UK’s 3rd busiest airport) lies 12 miles north of the town. A £1
20 8 6 A6 billion investment programme led by Manchester Airports Group over the next 10 years is
9 set to transform Manchester Airport and allowing it to double the number of passengers
Manchester
Airport
A34
10 it handles each year to more than 45 million.
WILMSLOW A523
The population of Macclesfield at the 2011 census was 52,044 added to which
M6 19 Macclesfield has an affluent primary catchment population in excess of 128,000 people.
A537
ALDERLEY EDGE
A556
A537
MACCLESFIELD MACCLESFIELD RAILWAY STATION IS 150
9 A537 METRES FROM THE SUBJECT PROPERTY
A34
A533
18 A54
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
Macclesfield
THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
SITUATION
The property occupies a highly prominent and accessible location within Macclesfield town
centre, immediately adjacent to the Macclesfield Bus and Coach Station and 150 metres from
the National Rail mainline train station with regular direct services to London Euston.
The property is bordered by Pickford Street to the south, Charlotte Street to the east and Lower
Exchange Street to the north.
Occupiers within 100m include Aldi, M&S, WH Smiths, B&M Bargains and Waterstones which all
fall within the principal town centre retailing area.
The Borough of Macclesfield, which includes Wilmslow, Alderley Edge and Knutsford, is one of
the most prosperous parts of the UK, with low unemployment, a thriving economy and a
well-educated work force.
Macclesfield is one of the most affluent of the PMA catchments, ranking in the top 30 of the
top 200 PMA Retail towns.
THE BOROUGH OF MACCLESFIELD
INCLUDES WILMSLOW, ALDERLEY EDGE
AND KNUTSFORD
Experian Goad Plan Created: 05/05/2017
Created By: Nightingale Partners
50 metres
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
Copyright and confidentiality Experian, 2017. © Crown copyright and For more information on our products and service
database rights 2017. OS 100019885 www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 601
THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY DESCRIPTION The detached two storey leisure & retail warehouse property comprises three units totalling 60,597 sq ft. The property was constructed in 2002 with brickwork elevations, part rendered block work walls, aluminium windows and stone cladding. The roof is of plastisol coated profile metal cladding construction and the entrance areas feature lightweight canopies and louvres. The lower level features two separate units leased to Sports Direct and DW Sports Fitness. The upper level is split into two units the majority of which is the DW Sports retail unit which benefits from access to the town centre, bus station and the adjacent Aldi store or via an escalator to the car park. The lower levels are accessed from the car park and a combined access with the gym unit. The two DW floors are linked via an escalator and lift. Loading to the premises is directly from the car park with a designated loading bay or at the rear from Pickford Street. Car parking is provided for 108 cars to the front of the unit. INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
ACCOMMODATION SITE
The property has been measured on a Gross Internal Area basis in accordance with the RICS Code of The property occupies a site area of approximately 1.65 acres (0.67 hectares),
Measuring Practice (6th Edition) and comprises the following: providing a low coverage for a town centre site of 41%.
Unit Tenant Sq Ft Sq M
TENURE
1 – Upper Floor Dave Whelan Sports Limited 20,600 1,913.80 Freehold.
1 – Lower Floor Dave Whelan Sports Limited 22,921 2,129.43
2 Sports Direct.com Limited 8,102 752.70
3 Bar Fever (Macclesfield) Limited 8,974 833.71
Total 60,597 5,629.64
PLANNING
The site benefits from a mixed Open A1, A3 and D2 planning consent which is not subject to any
restrictions in terms of permitted development rights.
It is also within the defined town centre of Macclesfield where such retail and leisure uses are
considered to be fully in accordance with national and local planning policy.
We understand there are no restrictions with respect to sub-division or mezzanine floors.
The property offers longer term redevelopment opportunities; this is supported by its inclusion
as a potential retail or mixed use development opportunity as part of the call for sites for the
emerging Cheshire East Local Plan Site Allocations and Development Policies Document (Statutory
Development Plan) that is intended to be adopted in 2018 and guide development up to 2030.
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
TENANCY - WAULT OF 11 YEARS TO EXPIRY AND 10.4 YEARS TO BREAK
Lease Lease Rent (Per Rent Next Rent Break
Demise Tenant Term Basis Of Rent Review Comments
Start Date Expiry Annum) (Per Sq Ft) Review Option
Unit 1 - Dave Whelan 25 2018 - Open Market • The 2023 rent review is fixed at the 2018
25.03.2003 24.03.2028 £214,241 £10.40 25.03.2018 -
Upper Floor Sports Limited Years 2023 - Fixed Uplift settled rent + 2.5% p.a. compounded.
Unit 1 - Dave Whelan 25 2018 - Open Market • The 2023 rent review is fixed at the 2018
25.03.2003 24.03.2028 £238,318 £10.40 25.03.2018 -
Lower Floor Sports Limited Years 2023 - Fixed Uplift settled rent + 2.5% p.a. compounded.
• 3 months’ rent free if 2022 break not operated.
Sports Direct.com 10
Unit 2 01.02.2017 31.01.2027 £70,000 £8.64 01.02.2022 Upwards Only 01.02.2022 • Rent received monthly by way of revocable
Retail Limited Years
side letter.
• Directors personal guarantee up to £25,000.
• Current rent of £25,000 p.a. increases to
Bar Fever
15 £50,000 p.a. from 02.11.2017 (vendor will top up)
Unit 3 (Macclesfield) 02.11.2015 01.11.2030 £50,000 £5.57 02.11.2020 Upwards Only -
Years • Additional turnover rent is also payable should
Limited
turnover exceed £910,000 p.a.
(10% of turnover above this figure).
• Landlord is entitled to 50% of net receipts from
Cheshire East
car park income (annually in arrears).
Council
25 • Responsibility for the management
Car Park (formerly 01.05.2003 30.04.2028 £29,902 - - - -
Years and revenue collection of car park lies with
Macclesfield
the tenant.
Borough Council)
• 5 year average landlord receipts: £29,902 p.a.
Total - - - - £602,461 £9.94 - -
* All tenancies are within the provisions of the 1954 Act
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS PICKFORD STREET, MACCLESFIELD, SK11 6JD PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATION
THE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
COVENANT - 91.7% OF THE INCOME IS SECURED AGAINST COVENANTS RATED AS ‘MINIMUM’ RISK OF BUSINESS FAILURE
Dave Whelan Sports Limited - Company Number 06846128, was founded in 2009 when Bar Fever (Macclesfield) Limited – Company Number 079792688, trading as Fever &
Dave Whelan bought 52 Fitness Clubs and attached retail stores from JJB. Since this acquisition, Boutique is part of the Bar Fever group which operates 23 venues across the UK with a turnover
the group has expanded to over 70 fitness clubs, most of which have a retail store attached, of c. £12m, a group profit of £355,253 and employs 444 staff.
along with further standalone retail stores and employs approximately 2,600 people.
The two directors (and sole shareholders) of Bar Fever Group, Nigel Blair and Mark Shorting both
We have summarised below, the last three years’ accounts for Dave Whelan Sports Limited: committed personal guarantees for the lease with the liability capped at £25,000 each for which
they will be jointly and severally liable.
27/03/2016 29/03/2015 30/03/2014
Turnover £159,585,620 £154,383,491 £150,399,784
Pre-Tax Profit £3,565,691 £8,243,567 £4,062,583
Shareholder funds £61,336,926 £73,439,339 £66,618,640
Dun & Bradstreet Rating: 5A1
Sports Direct Retail Limited – Company Number 03406347, is today the UK’s largest
sporting goods retailer and operates a diversified portfolio of sports, fitness, fashion and lifestyle
fascias and brands. They operate approximately 700 stores across the UK and continental Europe.
We have summarised below, the last three years’ accounts for Sports Direct.com Retail Limited:
24/04/2016 26/04/2015 27/04/2014
Turnover (000’s) £1,864,930 £2,074,126 £2,063,255
Pre-Tax Profit (000’s) £202,660 £262,929 £302,501
Total Net Worth (000’s) £665,649 £872,400 £1,201,706
Dun & Bradstreet Rating: 5A1
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATIONTHE SILKWORKS
PICKFORD STREET, MACCLESFIELD, SK11 6JD
PRIME FREEHOLD TOWN CENTRE LEISURE & RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
EPC
PROPOSAL
The property has been assessed as follows:
Offers are sought in excess of £8,000,000 (Eight Million Pounds), subject to contract and
Unit 1 (Upper Floor) C68 exclusive of VAT. Assuming purchaser’s costs of 6.64% with a net income of £602,461 per
Unit 1 (Lower Floor) C67 annum, a purchase at this level reflects an attractive net yield of 7.06% and equating to a
Unit 2 B44 low capital value of £132 per sq ft.
Unit 3 E112
VAT FURTHER INFORMATION
The property is elected for VAT. It is anticipated the sale will be treated as a transfer of a Should you wish to consider the property further or to arrange an inspection, please
going concern. contact:-
James Turner MRICS Rupert Mitchell MRICS
020 7399 0640 020 7399 0640
07867 356 888 07778 125 066
jt@nightingalepartners.com rm@nightingalepartners.com
Nightingale Partners,
38 Berkeley Square,
London,
W1J 5AE
+44 (0) 20 7399 0640
www.nightingalepartners.com
The Agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only
for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to
condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely
on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the
employment of the Agents has any authority to make or give any representations or warranty whatever in relation to this property. May 2017.
INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENANCY COVENANT FURTHER INFORMATIONYou can also read
