WITHYBUSH RETAIL PARK - HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
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WITHYBUSH RETAIL PARK
HAVERFORDWEST, SA61 2PY
A DOMINANT RETAIL DESTINATION
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
INVESTMENT SUMMARY
• Withybush Retail Park provides a successful and important retail
destination serving a wide and extensive catchment.
• The scheme provides the main retail destination for over
100,000 customers within the 30 minute drive time catchment.
• Haverfordwest and the surrounding area benefits from
an attractive demographic profile, with a relatively strong economy,
based around energy, tourism and administration.
• The regional importance of the property is highlighted by the
quality tenant line up, which comprises M&S, Debenhams, Next,
Boots, TK Maxx, Laura Ashley, Sports Direct and Oak Furnitureland.
• The scheme is ‘right sized’ providing 94,325 sq ft of accommodation
divided into eight units ranging between 5,737 sq ft and
27,919 sq ft, with extensive mezzanines.
• The property is let to a range of secure national retailers, with
an attractive WAULT of 10.5 years (7.8 years including breaks).
• Current rent of £1,881,425 per annum, giving a sustainable
average rent of £19.95 per sq ft.
• The scheme is anchored by a full range M&S store on a lease
expiring in 2035, with the benefit of 5 yearly fixed rental increases
of 2.50% per annum compounded, with the first due in 2020.
PROPOSAL
Offers are sought for the freehold interest in excess of
£25,875,000 (Twenty Five Million, Eight Hundred and
Seventy Five Thousand Pounds), reflecting an attractive net
initial yield of 6.75%, and assuming purchaser’s costs of 7.72%.
RUNNING YIELD
The yield rises further upon the M&S fixed rental uplifts:
June 2020 = 7.01%
June 2025 = 7.30%
June 2030 = 7.64%
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
“The principal shopping destination for over 117,000 people”
G
A438 Ma
Cardigan
A4103
A
LOCATION & DEMOGRAPHICS A487
A483
A470 Hereford
A4172
Pembrokeshire
Haverfordwest is the principal commercial and retail centre for the Coast A438
A49
National Park
substantial catchment of South West Wales and the Pembroke Peninsula. A40 Brecon A479 M50
30 MINS 60 MINS 90 MINS A40 A465 Ross-on-Wye
St Davids
Haverfordwest is the attractive market county town of Pembrokeshire,
al Park
Llanbody A4137
A40
which also acts as the county’s administrative centre, being situated Camathen Brecon Beacons Nation G
HAVERFORDWEST A40 A40 A40
57 miles west of Swansea and 97 miles west of Cardiff. A483 Abergavenny
Forest of Dean
A48
A477 A465
Ferryside A470
The town is located in the centre of the Pembroke Peninsula and at the Merthyr
Milford Haven Tydfil
M
junctions of the A40, A476 and A487, providing accessibility to the A48
M4 A465 A449
Llanelli
surrounding region. The A40 connects Haverfordwest with Carmarthen, Pembroke Tenby Neath
Dock Gorseinon
Chepstow
31 miles to the east, and Fishguard, 15 miles to the north; the A476 SWANSEA
Llangenneth M48
connects Haverfordwest with Milford Haven 8 miles to the south, with The Mumbles
Port Talbot
Pontypridd
A470 Caerphilly
the A487 providing access to St David’s and Cardigan to the north. A403 Chipping
M49 Sodbury
A48
“Haverfordwest provides the principal retail destination, with a M4 A48(M) Avonmouth
CARDIFF Pontshead
A4
M39
catchment population estimated to be in the region of 117,000” A4232
A420
A46
Penarth M5 BRISTOL
(Pembrokeshire Council 2011) Cardiff
Barry Bristol
A38 A4
A37 BAT
Weston-super-Mare
Due to the distance to any competing centres and We highlight below the high number of people Within Haverfordwest, major employers include
the quality of the retail provision, Haverfordwest within the catchment population in key CACI Pembrokeshire County Council, whose head
has become the dominant centre for an extensive classifications: office is situated in the town, and the Withybush
catchment population, including the following General Hospital.
Acorn Group Acorn Sub % Versus CACI Base
towns: Categories (GB) Average Elsewhere within the catchment, Milford Haven is
Town Distance (miles) Population Affluent Achievers Mature Money +24% the third largest port in the UK and is developing
Comfortable Countryside a cluster of energy related businesses alongside
Milford Haven 14 13,900 +496%
Communities Communities the port, providing a key economic driver for
Fishguard 15 5,000
Financially Modest Means +119% Pembrokeshire and attracting significant inward
Pembroke Dock 18 9,250 Stretched Poorer Pensioners +31% investment.
Cardigan 25 4,200
Tenby 29 4,700 The statistics also show a reasonably affluent car
borne catchment population. “The Pembrokeshire coast and
The town therefore provides the principal retail countryside is a major tourist
Category 30 Minute % Versus CACI Base
destination for an extensive catchment population Catchment (GB) Average destination, attracting in excess
within an estimated 30 minute drive time, which has of 4 million visitors per annum.”
Car Ownership 81.3% +14%
a population in excess of 100,000 people. (Pembrokeshire Council 2011)
Home Owner Occupation 67.7% +6%
Long Term
1.5% -10%
Unemployed
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY
UAR D R D
SPRINGFIELD RETAIL PARK
AD
RO
RETAILING IN HAVERFORDWEST WITHYBUSH
N
FISHG
IGA
RETAIL
Withybush Retail Park forms the principal retail destination for Haverfordwest and its extensive PARK
CROWNHIL L ROAD
RD
CA
catchment. The scheme is situated in a highly accessible position on the edge of the town centre,
directly fronting Fishguard Road, close to its junction with the A40.
A4 0
OAD
The A40 is the principal carriageway leading into the town from the north and east, which forms
R
A40
RD
the ring road, making the location accessible to the wider catchment.
UA
BRIDGE MEADOW RETAIL PARK
HG
Other out of town retail provision in the town includes: RY
S PA R WA
F IS
MA
TH O Y
D OAD
• SPRINGFIELD RETAIL PARK (M&G) • BRIDGE MEADOW RETAIL PARK (L&G) OA NA R BE RTH R
SR
CA
RT
PL
ROT
LET
This scheme extends to 100,000 sq ft, This scheme is situated 0.5 miles to the IAN
BR
TR
RO A D
PER
M
HAVERFORDWEST
D
has a bulky goods planning consent south of the subject property and comprises CITY
CA
CE
TOWN CENTRE PLA NE OAD
and is occupied by Homebase, Wickes, a Morrisons foodstore and units occupied RIA W
RO TON R
TO AD AMS
C RE
F R EE
C
Topps Tiles, Carpetright, Pets at Home by Halfords and Poundstretcher.
VI
MAN
and Currys PC World.
SW
AY
Haverfordwest has an attractive town centre along the banks of the River Cleddau, however, retail
AVE
provision is limited to local occupiers and a number of smaller stores occupied by national retailers. O ND
HAMM
UZ
MA
WES
NS
A407 6
TO
TER
N
R
N
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION DESCRIPTION Withybush Retail Park provides a high quality modern shopping The scheme is built of traditional steel portal frame construction, with At the front of the scheme is a petrol filling station, which is held under destination with an attractive range of occupiers. front elevations including attractive signage features and extensive glazing separate ownership. The property was originally developed in the late 1980s and was subject for the majority of occupiers. Extensive mezzanines are also provided The scheme therefore provides a very attractive retail destination, it is not to an extensive refurbishment programme in 2009/10 to provide a high in a number of the units. excessively large and the retailers are generally in ‘right sized’ units suiting quality regional shopping destination extending to 94,539 sq ft GIA. A tarmacadam surfaced car park is situated at the front of the scheme their current occupational requirements. The main terrace is occupied by a full range M&S store, Debenhams, and provides approximately 341 spaces, which equates to an overall The scheme occupies a site which extends to approximately 3.0 hectares Next, Boots, TK Maxx, Laura Ashley and Oak Furnitureland. There is ratio of 1 : 277 sq ft. At the rear of the main terrace is an extensive (7.4 acres). also a standalone unit occupied by Sports Direct. service yard with additional staff car parking for approximately 50 cars.
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
“TK Maxx and Boots have both recently removed break clauses from their leases”
TENANCY SCHEDULE TRADING PROFILE
The scheme is fully let and benefits from a weighted average unexpired lease term of 10.5 years (7.8 years including breaks). Investigations of the occupiers
suggest that the scheme fulfils
UNIT TENANT GIA LEASE LEASE TENANT NEXT RENT RENT RENT COMMENTS its role as a sub-regional retail
(SQ FT) START EXPIRY BREAK REVIEW (PA) (PSF) destination and retailers trade well.
1 Marks & Spencer Plc 27,919 21/06/2010 20/06/2035 20/06/2030 21/06/2020 £551,815 £19.76 Fixed rental uplifts: The success of the scheme is
2020 = £624,328 pa (£22.36 psf)
emphasised by the fact that TK
2025 = £706,370 pa (£25.30 psf)
2030 = £799,192 pa (£28.63 psf) Maxx and Boots recently both
agreed to remove break options
2 Boots UK Ltd 8,464 25/03/2010 24/03/2025 - 25/03/2020 £198,421 £23.44 2020 TBO removed. 6 months rent free.
from their leases. Last year Oak
3 Next Group Plc 9,310 06/05/2008 05/05/2023 - 06/05/2018 £158,049 £16.98 Furnitureland took a lease on Unit 5.
4 Laura Ashley Ltd 5,737 17/07/2007 16/07/2022 - - £109,000 £19.00 2017 rent review – the rent increased from
£95,205 pa (£16.59 psf) based on letting
to Oak Furnitureland.
5 JB Global Ltd 7,564 08/05/2017 07/05/2027 08/05/2019 08/05/2022 £162,626 £21.50 Rent review capped at 2.5% pa compounded.
t/a Oak Furnitureland 19 months rent free post break.
6 TJX UK 9,971 04/08/2014 03/08/2029 04/08/2024 04/08/2024 £223,080 £22.37 2019 TBO removed in return for
t/a TK Maxx 6 months’ rent free. Review capped
at 115% of previous rent.
7 Debenhams Properties Ltd 15,327 25/03/2013 24/03/2028 - 25/03/2018 £345,510 £22.54 Effectively upward only open market,
capped at RPI.
8 Sportsdirect.com Retail Ltd 10,033 29/09/1998 28/09/2023 - 28/09/2013 £132,924 £13.25 Outstanding rent review.
Totals 94,325 £1,881,425 £19.95
The M&S lease is subject to 5 yearly upwards only rent reviews fixed at 2.50% per annum compounded, with the next due in June 2020.
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
“WAULT of 10.5 years (7.8 years to breaks)”
UNIT TENANT % OF NET YEAR ENDING SALES PROFIT / NET WORTH D&B
INCOME TURNOVER LOSS PRE TAXES RATING
1 Marks & Spencer Plc 30% 03/04/2017 £10,622,000,000 £130,600,000 £4,961,200,000 5A1
02/04/2016 £10,555,400,000 £488,500,000 £5,223,800,000
2 Boots UK Ltd 11% 31/08/2017 £6,837,000,000 £498,000,000 £752,000,000 5A1
31/08/2016 £6,876,000,000 £523,000,000 £150,000,000
3 Next Holdings Ltd 8% 28/01/2017 £4,097,300,000 £790,200,000 £467,200,000 5A1
30/01/2016 £4,176,100,000 £836,100,000 £268,100,000
4 Laura Ashley Ltd 5% 30/06/2017 £261,838,000 -£23,471,000 £80,290,000 5A2
30/06/2016 £384,974,000 £25,820,000 £117,935,000
5 JB Global Ltd 9% 30/09/2016 £279,948,413 £15,186,469 £2,382,301 2A2
t/a Oak Furnitureland
30/09/2015 £239,269,190 £6,505,620 £8,749,706
6 TJX UK 12% 28/01/2017 £2,684,000,000 £111,400,000 £640,500,000 5A1
t/a TK Maxx
30/01/2016 £2,434,000,000 £142,300,000 £599,400,000
7 Debenhams 18% 02/09/2017 £147,663,000 -£9,695,000 £47,747,000 5A2
Properties Ltd
03/09/2016 £116,946,000 -£7,020,000 £55,658,000
8 Sportsdirect.com 7% 30/04/2017 £2,220,022,000 £177,097,000 £1,273,500,000 5A1
Retail Ltd
30/04/2016 £2,063,255,000 £302,501,000 £1,201,706,000
RENT PROFILE RENT PROFILE
(LEASE EXPIRY) (INC. BREAK OPTIONS)
0% - 0-4 years 9% - 0-4 years
31%
4-8 years
SECURE INCOME
In addition to the covenant strength, 69% of the rental income is secured
with lease terms in excess of 8 years to expiry. This includes tenants such as 48% 43%
M&S, Debenhams and TK Maxx. 8+ years 4-8 years
69%
The remaining 31% of the income is secured for the ‘medium term’ on leases 8+ years
expiring in between 4 and 8 years.
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
LAU R A A S H L E Y
A4
0
TENURE EPCS SERVICE CHARGE
The property is held freehold. The budgeted service charge for
UNIT RATING UNIT RATING
2017/18 is £1.04 per sq ft.
1 C 58 5 C 70
PLANNING There is a service charge cap in the
2 C 70 6 C 69
Withybush Retail Park benefits from an TK Maxx lease, but there is no shortfall.
3 D 88 7 B 29
open A1 (non-food) planning consent, The latest service charge accounts
4 C 70 8 B 50 are available upon request.
with additional relaxation allowing up to
18,212 sq ft of food retailing.
WITHYBUSH RETAIL PARK, HAVERFORDWEST, SA61 2PY A DOMINANT RETAIL DESTINATION
THE EVOLVING RETAIL ENVIRONMENT
The UK retail landscape is experiencing significant
structural change driven by the rapid evolution of
customer behaviour and occupational requirements.
Whilst many retailers are seeking to rationalise their
physical store portfolio, the most successful occupiers
are looking to meet consumers’ requirements for a
‘joined up’ omni-channel shopping experience and
recognise the importance of a physical store strategy
to provide customer fulfilment.
‘Click and Collect’ sales are forecast to grow ahead of pure online ‘Click and Collect’ is the growth engine of the retail sector and is forecast to declining footfall in high streets and shopping centres, as compared to
channels and are forecast to account for 13.9% of total sales by 2022. double by 2021, providing added convenience and economy to the consumer customers visiting out of town retail destinations.
In addition, a number of ‘pure play’ online retailers have recognised and advantages in terms of distribution and profitability for retailers. Withybush Retail Park provides a unique, convenient shopping
the advantages of physical stores as showrooms and distribution points Out of town retail parks are likely to be the biggest beneficiary of the rise destination experience to the catchment and should continue to prove
and are looking to develop a physical store strategy. in ‘Click and Collect’, due to their efficient layouts, convenient locations a successful destination for retailers developing their ‘omni-channel’
and provision of free car parking. This is borne out by the contrast of the customer experiences.
VAT
The property has been elected for VAT, however, we anticipate the
transaction will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL
Offers are sought for the freehold interest n excess of £25,875,000
(Twenty Five Million, Eight Hundred and Seventy Five Thousand Pounds),
reflecting an attractive net initial yield of 6.75%, and assuming purchaser’s costs of 7.72%.
The yield increases to 7.01% in June 2020, 7.30% in June 2025 and 7.64% in June 2030
following the M&S fixed rental uplifts.
Avison Young UK LLP
Heathcoat House, 20 Savile Row, London, W1S 3PR
Miles Marten Jack Lloyd
T: 020 7317 3777 T: 020 7317 3796
M: 07770 748 290 M: 07747 883 231
E: miles.marten@avisonyoung.com E: jack.lloyd@avisonyoung.com
www.avisonyoung.co.uk
MISREPRESENTATION NOTICE. Avison Young UK 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. Design: CommandD www.commandHQ.co.uk July 2018.You can also read
