TOWN CENTRE RETAIL WAREHOUSE SCHEME LET TO STRONG COVENANTS - VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM, DH8 5JU
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TOWN CENTRE RETAIL WAREHOUSE SCHEME LET TO STRONG COVENANTS VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM, DH8 5JU
INVESTMENT SUMMARY
• Town centre multi-let retail warehouse scheme • Generous car parking provides 95 spaces • Total rental income of £267,080 per annum
let to strong covenants (1:375 sq ft) (£7.50 psf)
• Consett is a busy town on the edge of the • Modern, well-constructed buildings with low • AWULT of 6.85 years to expiry and
Pennines with a population of 37,000 people future capital expenditure requirements 2.25 years to first determination
• Ever popular markets on Middle Street on • Fully let with 95% of rental income secured • Estimated rental value of £268,987
Thursdays, Fridays and Saturdays assist town against the strong covenants of Argos per annum (£7.55 psf)
centre trade Limited (D&B 5A1), Iceland Foods • Freehold
• Prominent location with direct pedestrian Limited (D&B 5A1), BetFred (D&B 5A1)
• Offers in excess of £2,790,000
connection to high street (50 metres) and Poundstretcher Limited (D&B 4A1)
(Subject to Contract)
adjacent to the town’s bus interchange • Occupiers in the convenience and value
sectors tend to experience lower online • 9.00% Net Initial Yield and a 9.06%
• Modern retail parade extending to 35,614 Reversionary Yield
sq ft within 5 units on a large site of 2 acres penetration, lower exposure to CVA
activity and more often than not • Low capital value of just £78 psf
a sustainable source of footfall
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 2
LOCATION A1
A189
WARK CRAMLINGTON
HALLINGTON
A696
A19
Consett is a market town situated 13 miles STAMFORDHAM
WIDEOPEN
A19 WHITLEY BAY
north-west of Durham and 14 miles south- CHOLLERFORD A68 NEWCASTLE A1
A1058
west of Newcastle upon Tyne, at the junction AIRPORT
A1058
A69 SOUTH SHIELDS
of the A691/A692, both of which provide NEWCASTLE
A167
the link to the national motorway network
A19 A1300
HEXHAM A1
A194
at the A1(M). RIDING MILL A184
A184 A19
A694 A1018
A692
A194(M)
Consett is home to over 37,000 people, growing A68
LINTZFORD
A1
SUNDERLAND
A1231
to 68,000 people within a 30-minute drivetime. A694
WASHINGTON
A692 64
A693
A19 A1018
A690
The C2C national cycle route also runs through A691
STANLEY 63
CONSETT
the town with between 12,000 and 15,000 cyclists VICTORIA CENTRE
A1(M)
HOUGHTON
LE SPRING SEAHAM
a year contributing to the local economy. CASTLESIDE PROJECT GENESIS
A167
A68
A690
LANCHESTER
A691
Following the closure of the Steel Works the town has 62 A19
benefitted greatly from Project Genesis, a large-scale DURHAM
development project to improve the local area. £200m
has been spent to date on developing redundant land ST JOHN’S A167
with 1,750 new houses and significant commercial CHAPEL
FROSTERLEY 61
CROOK
development projects. A68
A179
SPENNYMOOR
A1(M) HARTLEPOOL
A688
A19
BISHOP
AUCKLAND SEATON CAREW
A689 60
A689
“PROJECT GENESIS HAS
A689
SHILDON
MIDDLETON-IN-TEESDALE A167
SEEN OVER £200M
STILLINGTON
A688
A19
A68
59
MIDDLESBROUGH
SPENT ON IMPROVING BARNARD CASTLE
GAINFORD
58
A167
A66
THE LOCAL AREA”
A68 A174
A67
DARLINGTON COULBY
A66 A66 NEWHAM
BOWES 57
A66(M) A19
A66
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 3
MEDOMSLEY RD TRADITIONAL HERMISTON PROJECT
HIGH STREET RETAIL PARK GENESIS
TESCO EXTRA
VICTORIA CENTRE
BUS INTERCHANGE
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 4
SITUATION
B6308
BLACKHILL Medomsley Road
The Victoria Centre is an easily A691
accessible town centre shopping retail B6308
warehouse scheme, which together B6322 A691
VILLA REAL
with the more traditional high street
(50 metres to the east) is the primary Belle Vue Park
retail provision for Consett. CONSETT
Consett Park
Playing Fields
The centre is accessed by car directly off the main
thoroughfare through town (Medomsley Road) and allows B6322
for a seamless pedestrian connection with the high street. A692 A
The towns bus interchange lies to the northern boundary, B6308
providing a direct link to the public transport network.
CONSETT
BUS STATION
Directly adjacent to the scheme is the Derwent Centre B6322
which has a frontage onto the traditional high street.
Boyes
Surrounding occupiers include Home Bargains, VICTORIA CENTRE
Derwent Centre
Peacocks, Boyes, Superdrug and Clinton Cards. Clinton Cards
A692
Superdrug
Home
Bargains
CONSETT Peacocks
CROOK HALL
A692
Delves Ln
A692
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 5
Consett
N
PARKING
95 SPACES
T
CAN
VA
50 metres
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 6
DESCRIPTION Constructed in 1995, the Victoria Centre comprises five open plan, self-contained modern retail warehouse units totalling 35,614 sq ft (3,309 sqm). Each unit benefits from roller shutter loading doors to the rear, a staff room, managers office, and staff WC’s. The site has a large loading yard to the rear of the warehouses, allowing for HGV deliveries to service each self-contained element of the property. There are approximately 95 car parking spaces to the front of the warehouses offering a generous car parking ratio of 1:375 sq ft. There are strong links to public transport with the town’s bus interchange located just along the northern boundary. The property has a site area of approximately 2.00 acres (0.808 hectares) which provides a very low site cover of approximately 39%. VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 7
TOTAL RENTAL
INCOME OF
£267,080
PER ANNUM
(£7.50 PSF)
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 8
TENANCY, ACCOMMODATION, EPC TENURE
The property is multi-let in accordance with the tenancy Freehold (Title Number: DU221479).
schedule and has been measured in accordance with the
RICS Code of Measuring Practice 6th Edition, and provides
the following Gross Internal Areas:
RENT
LEASE LEASE RENT RENT ERV ERV
UNIT TENANT EPC AREA TERM BREAK (PER COMMENTS
START EXPIRY REVIEW (PSF) (PER ANNUM) (PSF)
ANNUM)
Done Brothers
Unit A D - 97 2,699 sq ft 07/12/2007 15 06/12/2022 - - £45,000 £16.67 £35,087 £13.00 No further reviews.
(Cash Betting) Ltd
Landlord will provide
Unit 2A VACANT D - 97 1,181 sq ft - - - - - £13,580 £11.50 £13,582 £11.50 a 12 month rent, rates
and s/c guarantee.
GF: 4,287 sq ft
FF: 7,248 sq ft GF: £7.25 GF: £8.50 Rent review to open
Unit B Argos Ltd - 08/11/2016 10 07/11/2026 08/11/2021 08/11/2021 £57,500 £67,244
Total: FF: £3.65 FF: £4.25 market rental value.
11,535 sq ft
Rent review to open
Unit C Iceland Foods Ltd C - 70 6,244 sq ft 16/01/1995 30 15/01/2025 16/01/2020 - £51,000 £8.17 £53,074 £8.50
market rental value.
The tenant is in half rent
period, with the landlord
to top this income up to
Unit D Poundstretcher Ltd C-67 13,955 sq ft 11/03/2019 10 10/03/2029 11/06/2021 11/03/2024 £100,000 £7.17 £100,000 £7.17 headline rent of £100,000.
There is a 9 month break
penalty if break exercised.
OMRV review.
Total /
35,614 sq ft - - - - - £267,080 £7.50 £268,987 £7.55
Average
AWULT to Break: 2.25
AWULT to Expiry: 6.85
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 9
COVENANT STATUS A total of 95% of the total income is derived from the national operators
Argos Limited, Iceland Foods Limited, Betfred and Poundstretcher Limited.
A summary of their business operations and latest accounts is provided below.
Argos Limited Iceland Foods Limited Poundstretcher Limited Done Brothers (Cash Betting) Limited
(Company Number: 01081551), trading (Company Number: 01107406) is a British (Company Number: 00553014) are a (Company Number: 1277703) is the
as Argos, is a British catalogue retailer supermarket chain headquartered in Wales, leading chain of discount stores in the UK. trading company for the national bookmaker
operating in the United Kingdom and Ireland, with emphasis on the sale of frozen foods, Founded in 1981, the brand has since BetFred. BetFred are the fourth largest
and a subsidiary of Sainsbury's. including prepared meals and vegetables. grown to include over 400 locations and bookmakers in the UK with 1,650 licensed
They also sell non-frozen grocery items suchemploys more than 6,000 people nationwide. betting offices and operations both online,
The company trades both through physical as produce, meat, dairy, and dry goods. The stores are a one stop shop for food, on the high street and at race courses.
shops and online, with over 845 retail shops, household goods and general convenience
29 million yearly shop customers, and nearly The company has an approximate 2.2% share items, stocking over 5,000 separate Done Brothers (Cash Betting) Limited have
a billion online visitors per annum, making of the UK food market with over £4.1bn in products at competitive prices. a Dun and Bradstreet rating of 5A1 and
it one of the largest high street retailers in turnover driven through its 800+ stores in a summary of their latest financial results
the United Kingdom. It has also franchised the UK, and employs over 23,000 people. Poundstretcher have a Dun & Bradstreet is provided below:
overseas to countries such as China. rating of 4A1 and a summary of their latest
Iceland have a Dun & Bradstreet rating of financial results is provided below:
Argos have a Dun & Bradstreet rating of 5A1 and a summary of their latest financial
5A1 and a summary of their latest company results is provided below:
accounts is provided below:
Argos 10th March 11th March 27th February Iceland 30th March 24th March 25th March Poundstretcher 31st March 31st March 31st March Done Brothers 24th 24th 24th
Limited 2018 2017 2016 Foods 2018 2017 2016 Limited 2018 2017 2016 (Cash Betting) September September September
Limited Limited 2017 2016 2015
Turnover £4,162,557,000 £4,285,775,000 £3,995,930,000 Turnover £2,972,900,000 £2,770,500,000 £2,658,332,000 Turnover £387,442,689 £397,380,415 £429,538,926 Turnover £377,599,000 £320,065,000 £287,887,000
Pre-tax Pre-tax
(£145,305,000) (£25,664,000) (£178,360,000) £55,500,000 £74,300,000 £111,100,000 Pre-tax Profits £2,423,134 £2,730,262 £2,405,347 Pre-tax Profits £18,403,000 £29,293,000 £7,364,000
Profits Profits
Shareholder Shareholder Shareholder
£571,055,000 £736,415,000 £938,357,000 £795,000,000 £805,000,000 £753,128,000 Shareholder Funds £22,334,679 £19,911,546 £17,836,284 £29,016,000 £35,293,000 £132,586,000
Funds Funds Funds
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 10VAT DATAROOM
VAT will be payable on the purchase price. It is anticipated that the sale Dataroom access is available on request. The following are surveys
will be dealt with as a transfer of a going concern. and reports available:
CAPITAL ALLOWANCES • Title Plan
The Vendor will retain any unclaimed Capital Allowances. • Title Register
• Leases
ANTI-MONEY LAUNDERING REGULATIONS • EPCs
In accordance with Anti-Money Laundering Regulations, two forms of • Measured Survey
identification and confirmation of the source of funding will be required • Service Charge Accounts/Budget
from the successful purchaser.
VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 11PROPOSAL FURTHER INFORMATION
For further information or to arrange an inspection, please contact:
WE ARE SEEKING OFFERS Daniel Campbell
Tel: 07741 593 968
IN EXCESS OF £2,790,000 Email: dc@christopherdee.co.uk
FOR OUR CLIENT’S FREEHOLD Mark Powell
Tel: 07825 077 724
INTEREST SUBJECT TO CONTRACT Email: mp@christopherdee.co.uk
AND EXCLUSIVE OF VAT.
A purchase at this level reflects the following
yield profile after deducting purchase costs (6.28%):
Christopher Dee
40 Peter Street
Manchester M2 5GP
9.00%
NET INITIAL YIELD
9.06%
REVERSIONARY YIELD
MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other
details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them
£78 psf as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee nor any of its employees or
representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the
property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment
LOW CAPITAL VALUE or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is
capable or fulfilling its intended function. Prospective tenants / purchasers should satisfy themselves as to the fitness of such equipment
for their requirements. September 2019.You can also read
