WICKES & STAPLES, BANBURY - SOUTHAM ROAD, OXFORDSHIRE, OX16 2RR OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY - Wilkinson Williams
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OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE, OX16 2RR
CLICK TO ENTERWICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
INVESTMENT CONSIDERATIONS l Banbury will become a key regional retail destination with l Planning consent is considered to be ‘wide bulky goods’.
the development of Banbury Gateway Shopping Park.
l Asset management opportunities available to add value.
l Banbury is situated in a strategic location within
l The subject property is situated within the main out of
Oxfordshire, in close proximity to Junction 11 of the M40, l We are instructed to seek offers of £7,100,000 (Seven
town retail pitch for Banbury, on the A361 Southam Road.
linking with London to the south and Birmingham to the Million, One Hundred Thousand Pounds), subject to
north. l The scheme comprises two units of 25,054 sq ft and 10,414 contract and exclusive of VAT. This reflects an attractive
sq ft, let to Wickes and Staples at rents reflecting £14.49 net initial yield of 7.0% (assuming purchaser’s costs
l The town has a very affluent catchment population,
per sq ft and £15.74 per sq ft respectively. The total rent is of 5.80%).
ranked 18 out of the top 200 PMA Retail Centres.
£525,430 per annum.WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
Lichfield
M54 Tamworth LEICESTER
A1
13
LOCATION
A6003
Brownhills 9
Aldridge
A4
M42 Wigston A47
Peterborough
7
M69
A43
M6(T)
Banbury is an affluent market town in Oxfordshire benefiting from excellent transport connections to the WOLVERHAMPTON Hinckley
A6
West Bromwich M6 Nuneaton
Midlands and the South. The town is located approximately 80 miles north west of London, 50 miles south Dudley M1
Market 05
A427 Corby A6
1
east of Birmingham and 22 miles north of Oxford.
A14
BIRMINGHAM Harborough
Halesowen
A61
Birmingham
M6
16
M42
A1
The town benefits from excellent road communications. Junction 11 of the M40 is easily accessible via the Solihull COVENTRY Kettering
3
A14
A50
Rugby
A4
A422 and provides direct access to London to the south and Birmingham to the north.
8
5 Huntingdon
A4
Bromsgrove
A4
48
A449
Redditch Wellingborough Rushden
The town has a direct train link to London Marylebone with a journey time of 54 minutes. Birmingham Leamington Spa
Warwick M1 A45
Droitwich Daventry
International Airport is situated approximately 38 miles north west of the town.
A6
A435
A44
Northampton
1
St Neots
A422
M40
A42
A442 A46 Stratford 8
Worcester
A43
28
upon Avon
A4
Bedford
A509
M5 M1
6
A5
A5
A4
Biggleswade
08
A44 Evesham Newport Pagnell
A6
A429
11
DEMOGRAPHICS Milton Keynes
21
A43
A4
A42
A1
A44 2 05
6 A5
M50 A4
Banbury has a primary catchment population of 206,000 people and an estimated shopping population Tewkesbury
Letchworth
BANBURY
3
A4
Hitchin
of 142,000 people. This is projected to increase by 0.9% per annum between 2014 and 2019, above the UK A5
Leighton Buzzard
average. Experian calculate there is a total population of 60,518 people living within a 10 minute drive time Cheltenham A4
4
M40
Bicester Dunstable
Luton
A60
2
of the subject property, increasing to 124,369 people within a 20 minute drive time. This is predicted to A41
A1(M)
A10
Luton
4
A436
A3
increase by 4.45% by 2017. Kidlington Aylesbury
Witney Tring
92
A41
A4
A40
7
A4
Banbury has a very affluent catchment population, ranked 18 out of the top 200 PMA Retail Centres on the
1
Oxford
PMA Affluence Indicator. The relative affluence of the town is demonstrated below: A419
Affluence Indicator Banbury PMA Sub PMA Top 200
Regional Centre Centre Average
Average
Social structure - AB (most affluent)% of adult 28% 22% 22%
population
DE (least affluent)% of adult population 20% 26% 26%
Car ownership - 2 + cars % of households 47% 34% 42%
Average house prices Q3 2014 £298,700 £240,600 £228,900
Total average earnings (gross weekly wages 2013) £425 £415 £419
Per capita in-store comparison expenditure 2014 £2,444 £2,387 £2,366
Per capita retail warehouse expenditure 2014 £491 £473 £469
Forecast growth in comparison retail expenditure 5.5% 2.5% 2.5%
2014-2019 (% per annum real)WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
RETAILING IN BANBURY
The retail warehouse supply in Banbury currently stands at 471,000 sq ft, with an overall provision per
household of retail warehouse floor space being below average.
The subject property is situated within the main out of town retail pitch for Banbury, which is centred
around the A423 Southam Road and the A222. Banbury Cross Retail Park is currently the dominant retail
warehouse scheme in the town, anchored by a 111,000 sq ft Tesco Extra foodstore. However, to the east
of the town centre, currently under construction, is Banbury Gateway Shopping Park, which will comprise
285,000 sq ft of open A1 consented space, anchored by Marks & Spencer, Next and Primark, with further
retailers including River Island, Fat Face and Outfit. This scheme will further enhance the critical mass of
the town and attract shoppers from a wider catchment area, establishing Banbury as a key regional retail
warehouse destination.
Banbury Cross Retail Park Banbury Gateway Shopping Park
WAY
S O U TH A M R D
(168,868 sq ft) (285,000 sq ft)
ACORN
DSG, DFS, Next, Boots, Marks & Spencer, Next, Outfit WILDM
ERE RD
Argos, Home Bargains, River Island, Fat Face, Primark
Pets at Home, Maplin
T RD
MON
BEAU
Tesco (110,000 sq ft)
RE RD
WILDME
11
VE
EA A422
OT HE
SC NN F W AY
RU EF W A4 2 2 HENNE
Wickes and AY
Staples RD
MAN O R
PI
ER
E
MO
LN
P
NT
B&Q (34,800 sq ft)
W
ST
AY
MA LER
R LE Halfords (13,229 sq ft) W M40
RD
FO
Y
SITUATION
CONCORD AVE
W
HAM
AY
DAVENTRY
A361 SOUT
Homebase (35,000 sq ft)
N UR
RD
Dunelm (15,000 sq ft) ON The subject property is situated on the A361 Southam Road,
SER
ET
RD
DL
Y
Topps Tiles (5,000 sq ft) ID
in a prominent accessible location, linked via the A422,
DR
M
ERMON
which in turn connects to the M40. The A361 leads to the
WEST ST
SPICEBALL
T WAY
PARK
town centre, a short distance to the south.
FOUN
RD
N
TO
DRY
COPE RD
LE
DD
HO
ST
MI
Also situated on Southam Road, in close proximity to
WA
CON
SCH
RD
CORD AVE
O
RD
OL
the subject property are several retailers including B&Q,
VIE
CASTLE ST
W
CAU
SEW
AY
Halfords, Homebase, Dunelm and Topps Tiles. In addition,
A361
there are several car dealerships in the vicinity.
THORPE W
CHALKE
ST
GE S
T RTON
ME
Calthorpe Centre B R ID
ST
(49,000 sq ft)
AY
R WAY
CHERWELL
TK Maxx,Farmfoods
GEORGE
Poundstretcher ST
H ST TH
HIG OR
MA
P EW
T
RL
A RD
AD S
AY
B
OR
RD
SOUTH BAR ST
BRO
N NI
OU
PE
H
G
RD
ITA
OR
BR
TH
GAT
AL
C TER
IDG
E STWICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
DESCRIPTION
The subject property comprises two adjoining retail warehouse To the rear of the Wickes unit is an external builders’ yard. Adjacent to
units let to Wickes and Staples, totalling 25,054 sq ft and 10,414 sq ft this is the service yard shared between the two tenants, accessed to
respectively. the side of the Staples unit.
Internally, the units are fitted to the individual tenant’s specification. Car parking is located to the front of the units and to the side of the
The Wickes unit benefits from having a mezzanine floor, used for Wickes unit providing 172 spaces, equating to a ratio of 1:206 sq ft.
sales, and staff accommodation and facilities. There is no mezzanine
floor within the Staples unit, however, there is sufficient eaves height The total site area is 3.18 acres, giving a low site cover of 26%.
to install a mezzanine, subject to planning.WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
TENURE TENANCY
The site delineated in red below is held freehold. The property is let on full repairing and insuring leases as follows:
Unit Tenant GIA Lease Unexpired Lease Next Rent Current Rent Rent Comments
Name (sq ft) Start Term Expiry Review (per annum) (per sq ft)
Unit 1 Wickes 25,054 25/03/1996 6 years 24/03/2021 25/03/2011 £363,094 £14.49 2011 rent review
Building outstanding. Lease inside
Supplies the Act.
Limited
Unit 2 Staples 10,414 25/03/1996 6 years 24/03/2021 25/03/2016 £162,336 £15.74 The rent equates to £15.75
UK Retail per sq ft with half rate on
Limited the lobby of 196 sq ft. Lease
inside the Act
TOTAL 35,468 £525,430 £14.85
PLANNING
Planning was granted in December 1995 for the construction of two retail warehouses with an access road, servicing and car parking. The
retail use permitted was for building materials, DIY home and garden improvements products, hardware, self-assembly and pre-assembled
furniture, household furnishings, floor coverings, motor accessories, electrical goods, office supplies and pet supplies. The ancillary sale of
sweets and chocolates, or food for consumption on the premises, providing the floor area for the sale of such items does not exceed 10% of
the floor area of the particular unit, is also permitted. Therefore we consider the scheme to have a ‘wide bulky goods’ consent.
The planning consent stipulates a minimum gross unit size of 5,000 sq ft.
Indicative plan only.WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
ASSET MANAGEMENT OPPORTUNITIES TENANTS’ COVENANTS
The property provides the opportunity for an incoming investor Wickes was established in 1972 and has grown into one of the UK’s leading DIY retailers. The company was purchased by Travis Perkins plc
to create value as follows: in February 2005 and now has a portfolio of over 200 stores across the UK, selling a wide selection of home improvement products.
• The leases have 6 years unexpired, giving the opportunity Staples is the world’s largest office products retailer with 2013/2014 sales of $23.1 billion from 2,200 stores across 12 countries. In the
to agree lease re-gears with the respective tenants. UK, there are 1,500 employees across 112 stores with a total estimated sales area of 1,935 million sq ft. Staples recently announced the
acquisition of its rival Office Depot for $6.3 billion. This will consolidate its position as the leading retailer of office supplies and allow the
• An alternative occupier could be found for the units if re-gears business to become more competitive on a global basis. The deal is yet to be approved by the US Federal Trade Commission.
were not pursued. There are currently several acquisitive
retailers without representation in the town including B&M, Below are the most recent company accounts for the tenant covenants:
Wren Living, Sofaworks, HomeSense, Sports Direct and
Smyths Toys. Unit Tenant Year Ending Sales Turnover Pre-Tax Profit/Loss Net Worth D&B Rating
(000’s) (000’s) (000’s)
• There is sufficient space to develop a further unit of
5,000 - 10,000 sq ft on part of the car park, adjacent to 1 Wickes Building Supplies Ltd 28/12/2013 £972,038 £49,441 £298,859 5A1
the Wickes unit. 29/12/2012 £976,136 £55,550 £273,471
2 Staples UK Retail Ltd 01/02/2014 £227,367 -£7,061 -£57,765 N2
02/02/2013 £267,794 -£59,725 -£51,009WICKES & STAPLES, BANBURY
SOUTHAM ROAD, OXFORDSHIRE OX16 2RR HOME INVESTMENT LOCATION & RETAILING IN BANBURY DESCRIPTION TENURE, TENANCY ASSET MANAGEMENT & ADDITIONAL
CONSIDERATIONS DEMOGRAPHICS & SITUATION & PLANNING TENANTS’ COVENANTS INFORMATION
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
EPC PROPOSAL FURTHER INFORMATION
The Wickes unit has an EPC rating of C (53). We are instructed to seek offers of £7,100,000 Ellie Kirkby
The Staples unit has an EPC rating of E (120). (Seven Million, One Hundred Thousand Pounds), T: 020 7317 3790
subject to contract and exclusive of VAT. This reflects M: 07764 241898
an attractive net initial yield of 7.0% (assuming E: e.kirkby@wilkinsonwilliams.co.uk
VAT purchaser’s costs of 5.80%).
Wilkinson Williams
The property has been opted to Tax however it is Heathcoat House
envisaged the transaction will be structured as a 20 Savile Row
TOGC. London
W1S 3PR www.wilkinsonwilliams.co.uk
MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but
should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain
parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property
which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement
that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of
fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. April 2015. Designed and produced by Creativeworld Tel: 01282 858200.You can also read
