Wellingborough Retail Park - Newly Completed Prime Retail & Leisure Freehold Investment Opportunity - Property Pilot
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L D
O
30 YEARS: A GENERATION OF REGENERATION
S
Wellingborough Retail Park
London Road, Wellingborough, NN8 2DP
Newly Completed Prime Retail & Leisure
Freehold Investment Opportunity
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Investment Summary
ellingborough is an expanding market town in Northamptonshire, 9 miles north
• W
east of Northampton, 8 miles south of Kettering and 18 miles north of Milton Keynes.
ellingborough is projected to expand by 30% over the next 10-15 years with
• W
major residential developments set to deliver 6,200 homes and 7,500 jobs.
ellingborough Retail Park comprises part of an established ‘gateway’ edge of
• W
town retail development located on the A5193 London Road, the principal arterial
road into the town centre from the national road network.
he scheme effectively forms the last phase of an already successful retail
• T
development, immediately opposite Castlefields Retail Park with surrounding
occupiers including M&S Foodhall, B&Q, Dunelm Mill, Dreams, Tapi, Pets At
Home, Pizza Hut, Tesco Extra Superstore, Halfords, KFC, AMF Bowling and
Premier Inn.
he newly developed scheme comprises a 22,484 sq ft foodstore, a 4,036 sq ft
• T
drive-thru restaurant and a terrace of 4 retail units totalling 8,638 sq ft.
• Open A1 / A2 / A3 / A4 and A5 planning permission.
• Freehold.
he property produces a total income of £258,500 per annum and benefits from
• T
a weighted average unexpired term of 17.82 years to expiry and 15.76 years to
breaks.
e are instructed to seek offers in excess of £4,040,000 (Four Million and Forty
• W
Thousand Pounds) for this freehold interest, subject to contract. A purchase at
this level would reflect a net initial yield of 6.00%, assuming purchaser’s costs of
6.54%.
2
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Location
“The urban extension at Stanton Cross will increase
the size of the town by 30%”
Wellingborough is situated in the heart of the Midlands within Borough Council of Wellingborough
the ‘Golden Triangle’. The town is located approximately 9 miles
north east of Northampton, 8 miles south of Kettering and 18
miles north of Milton Keynes.
LEICESTER A47 A6003
Connections J21
A
Wellingborough benefits from excellent road A6 A43
communications to the main regional/national road network, M69
J17
being situated just off the A45 dual carriageway which M1
MARKET CORBY
A427
skirts the town to the south. The A45 provides an east-west A5128 HARBOROUGH A605 A1(M)
route leading directly to the M1 motorway (Junction 15), J20
A6003
approximately 12 miles to the south west, and joins with the M6
J1 J19
A14 10 miles to the north east. A414
RUGBY
J18 J14
Wellingborough’s railway station is on the East Midlands A509
A45 A14
M45 A508
Mainline linking it to London, Nottingham, Leicester, Derby, J17 A43
WELLINGBOROUGH
Sheffield, Leeds and Manchester. The fastest journey time
A1
to London St. Pancras International Station is 45 minutes
DAVENTRY A45
with trains every 30 minutes. J16 NORTHAMPTON
A6 A428
A509
J15a A428
J15
A423
A43
BEDFORD
A508
M1
M40
J11
A421
A422
J14
MILTON J13 J10
M40
KEYNES
A43
A1(M)
3
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Situation
Wellingborough Retail Park sits prominently on the east side of the A5193 London Road,
the principal thoroughfare into the town centre from the south. London Road intersects
with the A45 dual carriageway less than 600 metres to the south of the retail park. FINEDON
The scheme is situated in an extremely well established out of town retail and leisure
location, immediately opposite Castlefields Retail Park and adjacent to a Premier Inn
GREAT
hotel. Neighbouring occupiers include B&Q, M&S Foodhall, Tesco, B&M, Halfords, Pets at
HARROWDEN
Home, Carpetright, Pizza Hut, Dreams, Dunelm Mill, KFC and Hollywood Bowl.
Demographics A510
CACI estimate that the population within a 10 minute drive time of the property is 85,943
and this figure increases to 293,488 within a 20 minute drive time. WELLINGBOROUGH
A5128
Wellingborough is forecast to see significantly above average population growth over the
next 5 - 10 years. TOWN
CENTRE
A509
Drivetime from Wellingborough Retail Park, Wellingborough
15 minutes 20 minutes 30 minutes GB Average
A5128
5 year Population Growth
2.7% 3.5% 3.9% 2.7% A5193
2015–2020
10 year Population Growth A45
5.0% 6.3% 7.2% 5.0%
2015–2025
Wellingborough has an affluent catchment with 51% of households within a 20 minute
drive time of the scheme falling within the two highest social grade categories, AB (Higher
IRCHESTER
and Intermediate Managerial/Admin/Professional) and C1 (Supervisory, Clerical, Junior
Managerial/Admin/Professional), which is in line with the national average of 52%. A45
Furthermore, within a 20 minute drivetime 66% of the population have a household A509
income over £30,000. This compares to a national average of 61%. Car ownership
figures within the same drive time show that an average of 80% of households own at
least one car, compared to the national average of 74%.
4
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Wellingborough Expansion
Wellingborough benefits from a strategic location in North Northamptonshire and has
been identified as the principal town and focus of housing development for the region.
The town saw a 14.4% increase in house prices in 2015, the second highest increase FINEDON
outside of London and the south east (Source: Halifax, 2015).
There are a number of developments and initiatives planned for Wellingborough including:
GREAT
Stanton Cross HARROWDEN
Situated immediately to the east of Wellingborough’s railway station is Stanton Cross, WELLINGBOROUGH
a £500m major residential led development set to deliver 3,750 homes, 7,500 jobs, NORTH
A510
commercial space and community facilities. In October 2015 detailed plans for the first
phase of houses received approval, with the first of the major highways infrastructure
works now underway. WELLINGBOROUGH
A5128
Borough Council of Wellingborough: “The urban extension at Stanton Cross will increase WELLINGBOROUGH
the size of the town by 30%.” TOWN EAST
CENTRE STANTON CROSS
Station Island A509
Station Island is an area around the railway station and forms part of the wider Stanton
A5128
Cross development. The Station Island Development Area will provide an enlarged and
A5193
upgraded public transport interchange, with an expanded railway station, new bus routes
A45
and a range of other transport facilities. In addition the southern end of Station Island
will provide a mixed use development of high quality business space and residential
accommodation.
Wellingborough North IRCHESTER
A major new development of over 3,000 homes for the northern edge of Wellingborough A45
has commenced. Construction of the first phase starting in 2016 includes 800 new
homes, a new primary school, community centre and local retail centre. A509
5
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Out of Town Retail & Leisure in Wellingborough
The major out of town retail
provision in Wellingborough is
clustered on the north side of
the A45 at Junction 14, where
Wellingborough Retail Park is
located.
Castlefields Retail Park
To Town Centre
Castlefields Retail Park is the
dominant retail park in the town
Castlefields
and is located opposite the Retail Park
scheme. The park extends to
113,000 sq ft and has wide bulky
goods planning permission. 05
Tenants include B&Q, Dreams,
Pets at Home, M&S Foodhall, A5193
Dunelm, Tapi and Pizza Hut.
Top rents are at £19.40 per sq ft.
Victoria Retail Park
Located to the south of the To A45
scheme, Victoria Retail Park
provides a cluster of retail and
leisure properties including a
Tesco superstore, a Hollywood
Bowl, a KFC drive thru restaurant
and retail warehouse units
occupied by Halfords, B&M and
Carpetright.
6
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Property
Description
Wellingborough Retail Park has been
completed by St Modwen and comprises a
new ‘gateway’ development on the principal
cctv
cctv
arterial road into Wellingborough.
The development provides a 22,484 sq ft
164 Car-Parking
foodstore, a 4,036 sq ft drive-thru restaurant
Spaces
cctv
and a terrace of 4 retail units totalling 8,638 sq
cycles
ft of accommodation.
out
The property benefits from its own car parking
DRIVE
THRU
in
Trollies
provision of 159 spaces, a ratio of 1:221 sq ft.
Tenure
Freehold.
Planning
1
The scheme benefits from a retail and leisure YG
planning permission providing for a foodstore 2
with open A1 retail use; a drive-through
restaurant with A3 and A5 use; and a retailing
electric
duct
unit of up to 8,800 sq ft with permission for use
classes A1, A2, A3, A4 and/or A5.
cctv
Copies of the planning permission documents
are available upon request.
STOP
BUS
STOP
BUS
For indicative purposes only
7
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Tenancies
The leases at the property provide a weighted average unexpired term of 17.82 years to expiry and 15.76 years to breaks and are let on effective full repairing and insuring terms
with five yearly rent reviews (with the exception of Lidl) as follows:
Unit Tenant Area (Sq ft) Lease Start Rent Review Break Option Lease Expiry Rent (pa) Rent (psf) EPC 1 Comment 2
47 Lidl 22,484 27/11/2014 26/11/2139 £1 £7.50 A (22) Contribute towards the estate service charge
McDonald’s Index linked service charge cap of £1,717 pa
45 4,036 24/02/2016 24/02/2021 23/02/2041 £107,000 £26.51 B (40)
Restaurants Limited with 6 months rent free
49 Subway Realty Limited 2,148 27/11/2014 27/11/2020 28/11/2025 26/11/2030 £37,500 £17.46 A(22) 12 months rent free
Under offer to In solicitor’s hands, new 20 year lease with
49a DP Realty Limited 2,171 £38,000 £17.50 A(22) tenant break option in year 11, subject to 9
(t/a Domino’s) months rent free. RR to OMV, capped at 4% pac.
51 High Seat Limited 2,171 09/12/2016 09/12/2020 08/12/2025 £37,500 £17.26 A(22) 9 months rent free
Fixed annual uplifts for the first five years. Year 1:
Slurps Coffee Co Ltd £32,250; Year 2: £36,500; Year 3: £38,500; Year 4:
51a 2,148 04/01/2016 24/02/2021 28/11/2025 03/01/2036 £38,500 £17.92 A(22)
(t/a Starbucks) £41,000; Year 5: £43,000 Vendor to top up Year 1
and Year 2 rent
Total 35,158 £258,500
Under Offer
1 EPCs available upon request 2 Vendor will top up any outstanding rent free
8
Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Tenants’ Covenants
A summary of the occupiers’ most recent accounts is
Tenant Accounts Year Ending Turnover Pre-Tax Profit Net Worth Credit safe rating
detailed below.
McDonalds
31/12/2014 £1,432,592,000 £225,428,000 £931,302,000 92A
85% of the contracted income is from companies that are Restaurants Limted
considered ‘Very Low Risk’ or ‘Low Risk’ by the Credit Safe
Subway Realty
International Score. Limited
31/12/2014 £28,613,501 £1,946,179 £655,859 66B
Slurps Coffee Co Limited (t/a Starbucks) is a newly incorporated
company and has not published its first financial accounts. The High Seat Limited 31/12/2014 £35,933,403 £995,847 £2,084,474 71A
company is owned and run by Nadim Choudary, the selected
Starbucks Coffee franchisee for Northamptonshire, Bedfordshire, DP Realty Ltd 28/12/2014 £18,140,534 £528,628 £449,547 67B
Cambridgeshire and Leicestershire trade zones. The owner
was formerly the largest Pizza Hut franchisee in the UK. Further
• Stable well capitalised lending market compounded by low interest rates - cheapest debt financing
information is available upon request.
environment of all time
Cash on Cash Returns
• Based on the day one NOI and the attractive unexpired lease terms, this property could comfortably
All in LTV support 60% LTV. Amortisation may be expected depending on loan structure
Interest Costs
(assuming margin over
5 Year Swap Rate) 55% 1
60%2 60%1 • Even at the conservative debt terms highlighted in the table, this property can provide gross cash-on-cash
2.75% 9.47% 8.04% 10.19% returns to an investor in excess of 9% p.a.
3.00% 9.20% 7.72% 9.87% • Margin pricing and LTV assumptions may vary depending on the sponsor, their track record and debt
3.25% 8.93% 7.40% 9.54% aspirations, all of which could potentially drive even higher cash-on-cash returns
1 - Interest only 2 - 1% amortised pa
VAT
The property has been elected for VAT and it is anticipated the
Proposal
sale will be treated as a transfer of a going concern. We are instructed to seek offers in excess of £4,040,000 (Four Million and Forty Thousand
Pounds) for this freehold interest, subject to contract. A purchase at this level would reflect a
net initial yield of 6.00%, assuming purchaser’s costs of 6.54%.
9Wellingborough
Retail Park
Northamptonshire 30 YEARS: A GENERATION OF REGENERATION
Debt Advisory Tim Wilmer
Director-Debt Advisory
JLL Debt Advisory provides market leading debt solutions for real estate investors. In the current liquid and competitive UK debt market this property will attract T: +44 (0)207 087 5392
considerable interest when marketed correctly to potential lenders. Our unrivalled knowledge of over 190 active senior, mezzanine and Islamic lenders ensures we can M: +44 (0)7817 103806
achieve the best debt terms. JLL Debt Advisory would be delighted to discuss funding options with potential purchasers. Tim.Wilmer@eu.jll.com
For further information or to arrange an inspection, please contact the following
Guy Harris Will Andrews Archie Stead Simon Toseland
T: 020 7399 5371 T: 020 7087 5388 T: 020 3147 1344 T: 01933 223300
M: 07826 947227 M: 07970 467505 M: 07525 824606 M: 07500 886177
guy.harris@eu.jll.com will.andrews@eu.jll.com archie.stead@eu.jll.com st@prop-search.com
MISREPRESENTATION CLAUSE Crown Copyright 2016. All rights reserved.
MISREPRESENTATION ACT 1967 | DISCLAIMER. COPYRIGHT © JONES LANG LASALLE IP, INC. 2016.
All rights reserved. Jones Lang LaSalle Limited and Prop-Search.com Ltd for themselves and for the vendor of this property whose agents they are given notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor
constitute part of, an offer or contract. b) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements
or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. c) No person in the employment of Jones Lang LaSalle Limited nor Prop-Search.com Ltd has any authority to make or give any representation or warranty whatever in
relation to these properties. Subject to Contract – Exclusive of VAT – September 2016.
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