Walworth Business Park Andover Hampshire - LONG DATED FOODSTORE ANCHORED FORWARD COMMITMENT INVESTMENT OPPORTUNITY - Cushman ...
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COLUMBUS
QUARTER Walworth Business Park
Andover Hampshire
LONG DATED FOODSTORE ANCHORED FORWARD
COMMITMENT INVESTMENT OPPORTUNITY
Columbus Quarter, Andover / 2
INVESTMENT
SUMMARY
• Prominent and highly accessible location adjacent to ANDOVER
the A3093, which provides direct access into Andover SAT NAV: SP10 5NT
town centre 3.5km (2.2 miles) to the south west.
• The purpose built scheme will provide 2,484 sq m
(26,733 sq ft) of retail accommodation including a STRUCTURE
2,084 sq m (22,433 sq ft) Lidl which will represent the AND PROPOSAL
dominant food offer on the eastern side of Andover.
Offers are invited on a Forward Commitment basis at a price
• Held on a new 150 year long geared leasehold interest, in excess of:
£8,400,000
the scheme will be let to three tenants; Lidl, Starbucks
and Greggs.
• The contracted income will provide an attractive weighted (Eight Million Four Hundred Thousand Pounds) reflecting
average unexpired term in excess of 23.4 years to expiry a net initial yield of 5.25%, assuming purchaser’s costs of
and 15.9 years to break. 6.68% and a net rent of £470,844 pa.
• 87% of the income benefits from 5 yearly 2% per annum Date Net Annual Rent Yield
compounded rent reviews. June 2019 £470,844 5.25% IY
June 2024 £516,636 5.73% RY
• Total annual rent of £495,625, equating to an average
June 2029 £567,194 6.25% RY
rent psf of £18.54.
June 2034 £623,015 6.83% RY
• Construction has started on site and practical completion
* Rent pa assumes 2% fixed increases on Starbucks and Lidl.
is anticipated for June 2019.
Columbus Quarter, Andover / 3 FOODSTORE ANCHOR: 25 YEAR LEASE TO LIDL INCORPORATING 5 YEARLY 2% PA COMPOUND FIXED INCREASES
Columbus Quarter, Andover / 4
LOCATION M50
M5 A1(M)
The town of Andover is situated in the county of M1
Hampshire occupying a strategic location in central M40
southern England. It is located on the A303 Trunk
Road which links to the M3 and serves as one of the
main routes from the Capital to the West Country.
A48 A413
The A34, 11.3km (7 miles) to the east of Andover, M10
connects the South Coast ports with the Midlands via M5 A4010 M25
A420
the M40 to the north. A419
M40
A433 A429
A34
A403
Andover is very well connected A419
A404
Maidenhead
M4 LONDON
A350
M32 Windsor
By Road A4 A46 Chippenham M4 READING M4
A3
BRISTOL A346
A303: 0.8km (0.5 miles) A4
A4 Newbury Bracknell A24
A34: 11.3km (7 miles) A38 A350
Melksham
A36 Tadley A3
Devizes
M3 Junction 8: 20.9km (13 miles) A338
A33
M3 M25 A24
Trowbridge A339
M4 Junction 13: 33.7km (21 miles) A37 A361 A34
A331 A3 M
A350
M25: 78.8km (49 miles) Frome ANDOVER Aldershot
A31
M3 Farnham
A361
A36 Warminster A303 Godalming M23
A303
A36 Alton
A361 A24
A34
By Rail A37 A303 A31
A3 Haslemere
London Waterloo: 70 mins Salisbury Winchester
A24
Woking: 40 mins A303
A36 Petersfield
Basingstoke: 20 mins A37 Romsey
A350 A338 A3
Yeovil
Salisbury: 25 mins M3
Bristol: 105 mins A354
SOUTHAMPTON A3(M)
A24
A37 M27
A31 Hythe Chichester
Ringwood Fawley
Littlehampton
By Air New
Milton
Heathrow: 93.3km (58 miles) A35 Dorchester Christchurch
Gatwick: 128.7km (80 miles)
Southampton: 45km (28 miles) A354
Weymouth
A354
Columbus Quarter, Andover / 5
A338
A339 CATCHMENT &
A343
A340
DEMOGRAPHICS
Lower Chute
Hurstbourne Tarrant
Basingstoke
Andover’s primary catchment population extends to
A34 approximately 51,403 people within a 10 minute drive
Tidworth A342 A30 time, rising to 68,533 within a 15 minute drive time (CACI).
Appleshaw
Whitchurch
The catchment is affluent and mobile in comparison to the
A303
ANDOVER rest of the UK, offering levels of Convenience Expenditure
Longparish above the national average.
Upper Clafford A339
A303
Levels of unemployment are significantly below the UK average
M3 (PROMIS); with 63% of the catchment in full or part time
A343
employment compared to the UK average of 53% (CACI).
A3057 A30 A34
We have highlighted some key elements of the 10 Minute
A33
Catchment Analysis below:
5 minutes Kings Worthy
10 minutes ACORN Group/ Description 10 minutes UK Base
A3057 A31
15 minutes Financially comfortable families 10.1% 2.2%
A272
Comfortable Communities 50.5% 26.6%
Home Ownership 63.5% 62.9%
Car Ownership 86.1% 74.1%
Population No. of households
5
minutes 18,247 7,757
10
minutes 51,403 21,258
15
minutes 68,533 28,382
Columbus Quarter, Andover / 6
SITUATION
Colombus Quarter lies 3.1km (2 miles) to the
east of Andover town centre, adjacent to the
A3093 which connects directly to the A303
dual carriageway 1.6km (1 mile) to the south.
Andover main line railway station lies 3.1km
(2 miles) west of Columbus Quarter.
AD
RO
Columbus Quarter is situated adjacent RTH
A343 L WO
WA
to Walworth Business Park which totals
approximately 80.9 hectares (200 acres),
providing a combination of industrial/ A343 A3093 COLUMBUS
distribution, retail and office facilities. A3057 QUARTER
The wider surroundings are predominantly
residential with a number of significant
A3400
developments underway which will further TOWN
grow the catchment to the east of the town. ANDOVER A3057
CENTRE
ANDOVER
STATION
• East
Anton – 2,500 dwellings planned,
c.1600 completed
A303 to date
• Mixed
Taylor Wimpey development of A3057 A3093
A3402
residential, retail and community services
including a new secondary school
•W hole development expected to
complete by 2027
• Picket
Twenty – 1,200 dwellings
• Constructed by Persimmon Homes
• Expected completion by mid 2023AN
DO
VE A303
RB
YP S
• Picket
Piece – 900 dwellings AS
S BYP
AS
VER
A343 Wilson Homes
• Constructed by David AN
DO
• Expected completion by spring 2020
A303
• Harewood
Farm – 242 dwellings
• Applied for planning permission
in December 2017
Columbus Quarter, Andover / 7
Key
Harewood Farm
Picket Twenty
Picket Piece
Andover East Anton
Town Centre
A343
A3057
Booker
A3093
Orvis
Columbus Quarter
Walworth Business Park
Andover | SP10 5NT
Twinings
Pretty Wood Ocado
Abel & Cole SSI Schaefer
M3
< J8
Stannah Le Creuset
B3400
Ba
sin
gs
For indicative purposes only
to
ke
>
Columbus Quarter, Andover / 8
FOODSTORE
PROVISION
The map adjacent identifies the existing foodstore provision above
10,000 sq ft within Andover. It is important to note that there is no food
offer within a 5 minute drivetime of Colombus Quarter and as such Lidl,
AD
the subject property’s anchor, will enjoy an entirely dominant trading A343 OR
TH
RO
LW
WA
position as ‘the foodstore’ serving the eastern catchment of the town
2
and its significantly expanding catchment population. A343 A3093 COLUMBUS
A3057 1 QUARTER
TOWN
7 CENTRE
ANDOVER
ANDOVER A3057
1 Sainsbury’s 5 Waitrose
STATION
4
Shepherds Spring Lane, SP10 1DL Chantry Way, SP10 1LY A303 5
A3057
(1.4 miles, 6 minute drive time) (2.3 miles, 8 minute drive time) A3402 A3093
34,100 sq ft GIA 33,000 sq ft GIA 3
6
2 Tesco Extra 6 Asda
River Way, SP10 1UZ Anton Mill Road, SP10 2RW
(1.5 miles, 6 minute drive time) (2.1 miles, 8 minute drive time)
AN
DO
55,000 sq ft GIA 70,000 sq ft GIA VE
RB
YP
AS ASS
S BYP
VER
A343 AN
DO
3 Sainsbury’s 7 Aldi
A303
Bridge Street, SP10 1BG Weyhill Road, SP10 3LS
(2.1 miles, 7 minute drive time) (3.6 miles, 9 minute drive time)
28,900 sq ft GIA 17,800 sq ft GIA
4 Lidl
Western Avenue, SP10 1BS
(2.1 miles, 8 minute drive time)
18,000 sq ft GIA
Lidl will enjoy a dominant trading position as
‘the foodstore’ serving the rapidly growing
eastern catchment of Andover
Columbus Quarter, Andover / 9
DESCRIPTION
The development is being undertaken by Kier and will A secondary access will also serve the site to the north-
comprise a purpose built stand-alone foodstore of west, from Magellan Close. Forecourt parking around
approximately 2,084 sq m (22,432 sq ft), a two unit A3 the units will provide 176 spaces (1:153 sq ft). The site
terrace of around 232 sq m (2,500 sq ft) and a drive thru itself extends to approximately 3.5 acres (1.4 hectares).
unit extending to approximately 167 sq m (1,800 sq ft).
Construction has started on site (1st October 2018) and
Primary customer access will be located on Colombus practical completion is due in June 2019.
Way, along the south-eastern boundary of the site.
MAGELLAN CLOSE
A3 OCCUPIER
093
DOUGHTY WAY
AY / A3
HILL W
CHURC
UNDARY
127 No. LIDL PARKING SPACES
48 No. PARKING SPACES
ING BO
Y
UNDAR
PLANN
SITE BO
COLUMBUS WAY
For indicative purposes only
Columbus Quarter, Andover / 10
TENURE
A new 150 year leasehold interest will be granted by Test Valley Borough Council on practical completion
of the development.
The lease will be subject to an initial annual pay away to the council of £24,781, thereafter reviewed 10 yearly to
the higher of the current passing rent or 5% of the market rent.
TENANCIES
Upon completion, the development will be let on FRI terms providing an average weighted unexpired lease term
of 23.4 years to expiry (14.9 years to break). We have detailed the tenancies below:
Trading Target GIA Lease Length Rent Review Break Gross Rent Gross Rent Percentage of Rent Review
Tenant
Fascia (sq ft) (Years) Pattern Option £ p. a. £ psf Income Provision/Comments
Lidl UK GMBH Lidl 22,433 25 5 yearly 15 & 20 £345,000 £15.38 69.6% 2% per annum compounded.
Fixed increases.
23.5 Degrees Starbucks 1,800 20 5 yearly - £85,625 £47.57 17.2% 2% per annum compounded.
Limited Fixed increases.
Greggs PLC Greggs 1,250 15 5 yearly 10 £32,500 £26.00 6.6% Upward only to OMV.
Rental Rental 1,250 1 – – £32,500 £26.00 6.6% 1 year rent, rates and service charge
Guarantee Guarantee guarantee.
In advanced discussions with an A3
operator.
More information is available upon
request.
TOTAL 26,733 £495,625* 100%
NET RENT (allowing for 5% payable under Headlease) £470,844
Income Profile
87% of the income (Lidl & Starbucks) benefits from 5 yearly 2% per annum compounded rent reviews.Columbus Quarter, Andover / 11 PLANNING (ref 17/02995/FULLN) Planning consent was granted on 5 July 2018 for the erection of a food store (use class A1), drive through café (use class A3) and two additional units shops/food and drink/hot food and takeaway (use classes A1/A3/A5) with associated access, parking and landscaping. Copies of this document are available on request. ENVIRONMENTAL A Phase I & II Geo-Environmental survey was undertaken by Delta Simons in January 2017 and is available upon request.
Columbus Quarter, Andover / 12
COVENANT
INFORMATION
Lidl UK GMBH
Year to Date Turnover(£) Pre- Tax Profit (£) Tangible Net Worth (£) Experian Rating
Feb-17 41,526,000,000 1,709,000,000 9,943,000,000 69.6% of the income is
secured to Lidl UK GMBH
Feb-16 38,277,000,000 2,086,000,000 8,929,000,000 100
Feb-15 34,162,000,000 1,668,000,000 7,625,000,000
• Founded in 1973, Lidl has risen to become one of
Greggs PLC the largest discount supermarkets in Europe.
Year to Date Turnover(£) Pre- Tax Profit (£) Tangible Net Worth (£) Experian Rating
• L idl is the seventh largest chain of supermarket in
Dec-17 960,005,000 71,945,000 284,626,000 the UK with a share of the UK supermarket sector
Dec-16 894,195,000 75,142,000 250,406,000 100 of 5.5% (as at 12/08/2018).
Jan-16 835,749,000 73,028,000 256,026,000
• O
f the discount supermarkets, Lidl has performed
well, recording a 9.7% rise in like-for-like sales over
the 12 weeks ending 15th July 2018.
23.5 Degrees Limited
Year to Date Turnover(£) Pre- Tax Profit (£) Tangible Net Worth (£) Experian Rating • O
n 15th February 2018, Lidl opened its 700th
UK store – with its UK portfolio now standing at
Aug-17 20,418,206 -863,805 -3974,534
710 stores.
Aug-16 16,320,671 -1,137,298 -3414,263 20
Aug-15 4,685,328 -852,969 -21,475 • In 2017-18, parent company Schwarz Gruppe
generated global retail sales of €96.9 billion –
making it the fourth largest retailer in the world
by revenue (Deloitte).
Further financial information for these tenants is
available on request.STRUCTURE
AND PROPOSAL
Offers are invited on a forward commitment basis at a VAT
price in excess of The property has been elected for VAT purposes and it is anticipated
£8,400,000
that the investment sale will be treated as a TOGC.
FURTHER INFORMATION
For further information please contact:
(Eight Million Four Hundred Thousand Pounds) reflecting
a net initial yield of 5.25%, assuming purchaser’s costs of
Tamsin Layton
6.68% and a net rent of £470,844 pa.
T: 020 7152 5158
M: 07903 054 706
Date Net Annual Rent Yield
Tamsin.Layton@cushwake.com
43/45 Portman Square
June 2019 £470,844 5.25% IY
London W1A 3BG
June 2024 £516,636 5.73% RY www.cushmanwakefield.com Justin Houlihan
June 2029 £567,194 6.25% RY T: 020 7152 5670
M: 07855 792 294
June 2034 £623,015 6.83% RY
Justin.Houlian@cushwake.com
*R
ent pa assumes 2% fixed increases on Starbucks and Lidl.
Disclaimer
Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they are, give notice that:
(1) The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract. (2) No person in the employment of the agents has any authority to make or give any representation or warranty
whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing within this information should be deemed to be a statement that the property is in good
condition or that any services or facilities are in working order. September 2018
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