12pp 104973 purley way 12

Purley WayRetail Park

Purley WayRetail Park

Purley WayPrime Open Non Food Consent Retail Warehouse Investment

230/250 Purley WayCroydon CR0 4XG

104973 Purley Way 12pp 07.indd 1 22/4/08 12:04:18

investment summary

Purley Way Retail Park

Situated in the centre of one of the UK’s

premier retail warehouse locations on

Purley Way in Croydon, which serves a

wide and wealthy catchment.

Situated opposite a J Sainsbury’s

superstore with in excess of one million

sq ft of out of town retail accommodation

in the vicinity. The property comprises

a purpose built retail park extending to

approximately 42,164 sq ft occupied by

Harveys, Carpetright, Allied Carpets and

Bensons Beds.

The property benefi ts from an open A1

non food planning consent, with the

only restriction being against the sale of

DIY goods.

The property is let on full repairing and

insuring leases expiring in 2021/22 at

passing rents between £33.00 and

£35.00 per sq ft.

Potential opportunity to merge the estate

with the adjoining holding and develop a

new unit of up to 16,000 sq ft.

We are instructed to seek offers in

excess of £22.64 million, subject to

contract and exclusive of VAT, which

would provide a purchaser with a

net initial yield of 6.00%, assuming

purchasers costs of 5.7625%.

Purley Way

Purley Way Situated in the centre of one of the UK’s

Purley WaySituated in the centre of one of the UK’s

Purley WayPurley Way


Plough Lane

Stafford

Road

Beddington Lane

Croydon

Mitcham

Wallington

Beddington

Thornton Heath

Waddon

SouthNorwood

WoodsideSelhurst

BroadGreen

Che

rry

Orc

hard

Road

Duppas Hill Road

Purley W

ay

St James Road

London Road

Croydon Road

Roman W

ay Old Tow

n

Mitcham Road

A237A235

A23

A232

A236

A222

A212

Croydon is a major commercial and retail centre situated approximately 13 miles (21 kilometres) south of Central London, with an estimated resident population of approximately 350,000. As well as being an established major offi ce location it also benefi ts from strong “in town retail” offer centred around the Whitgift Centre.

To the west of Croydon lies the A23 (Purley Way), which forms the major arterial road leading from Junctions 7/8 of the M25 into south and Central London. This carriageway also provides direct access to Brighton and the South Coast.

It is estimated that approximately 157,000 people live within 10 minutes drive time of the subject property, this fi gure increases to approximately 400,000 within a 15 minute drive time contour.As may be expected, the catchment population appears relatively wealthy with 22.1% being classifi ed as educated urbanities, as opposed to a national average of 6.8%.

1.0 location1.0 location

Beckenham

Croydon

Wallington

Mitcham

A232

A23

A236

A235

A222

A214

A2022


Purley Way Retail ParkCROYDON

VALLEY RETAIL PARK


Plough Lane

Stafford

Road

Beddington Lane

Croydon

Mitcham

Wallington

Beddington

Thornton Heath

Waddon

SouthNorwood

WoodsideSelhurst

BroadGreen

Che

rry

Orc

hard

Road

Duppas Hill Road

Purley W

ay

St James Road

London Road

Croydon Road

Roman W

ay Old Tow

n

Mitcham Road

A237A235

A23

A232

A236

A222

A212

The subject property is situated in a highly prominent position at the junction of Purley Way and Commerce Way, at the centre of one of the strongest out of town retail destinations in the country.

Directly opposite the subject property is a very successful J Sainsbury’s foodstore extending to approximately 69,000 sq ft, which provides an excellent anchor to the immediate location. In close proximity to the Sainsbury’s is the Purley Way Centre, which is occupied by TK Maxx, Land of Leather and Argos, whilst to the north of the foodstore is a development occupied by Mothercare World and Carphone Warehouse.

To the north of the subject property is a unit occupied by Comet, which is owned by The Prudential, together with a number of small industrial units. This scheme benefi ts from planning consent to construct up to 16,000 sq ft of retail accommodation adjacent to the subject property.

To the south of the Purley Way Retail Park are fl agship stores occupied by PC World, Toys “R” Us and Currys, whilst to thesouth of this is the former Uno unit which has been acquired by Castlemore Securities for a retail warehouse development.

Approximately ¼ mile to the north of the subject property is an IKEA together with a B&Q Warehouse and the Valley Retail Park, which extends to approximately 130,000 sq ft with occupiers including DFS, Marks & Spencer, Outfi t, Next and Sports World.

Undoubtedly, Purley Way provides a strong out of town retail destination where it is generally known that the majority of retailers trade extremely well. We estimate there is in excess of one million sq ft of retail accommodation situated in close proximity to the subject property.

2.0 situation

Purley Way provides a strong out of town retail destination where it is generally known that the majority of retailers trade extremely well.

Beckenham

Croydon

Wallington

Mitcham

A232

A23

A236

A235

A222

A214

A2022


Purley Way Retail ParkCROYDON


The subject property comprises a purpose built retail warehouse park extending to 42,164 sq ft (3,917 sq m), currently divided into 4 units of between 7,498 sq ft and 14,446 sq ft.

The development is of steel portal frame construction under a steel clad pitched roof. Elevations are clad with profi le steel sheeting with each unit benefi ting from a semi circular entrance feature.

Customer access to the site from Purley Way is via an “all ways” traffi c light controlled junction onto Commerce Way leading to a tarmacadam surfaced customer car park providing approximately 104 spaces to the front and side of the units. There is a dedicated service road leading from Commerce Way to a concrete surfaced service yard from where there is access to the rear of each of the units.

There is an extensive trading mezzanine within Unit 4 occupied by Bensons Beds. We would highlight the developments attractive range of unit sizes and the potential to subdivide Unit 4 to provide two smaller units.

The property provides the following approximate gross internal fl oor areas:

The development benefi ts from approximately 104 customer car parking spaces, equating to a ratio of one per 405 sq ft (37.67 sq m).

Furn

iture

land

Alli

ed Car

petr

ight

Har

veys

Unit Tenant GIA sq ft GIA sq m

1 Bensons Beds 14,446 1,342

2 Allied Carpets 10,128 941

3 Carpetright 10,092 938

4 Harveys 7,498 697

Total 42,164 3,918

The property benefi ts from an open A1 non food planning consent, with the only restriction being against the sale of DIY goods.

1.0 location3.0 description 4.0 accommodation



The property benefi ts from a planning consent which allows the sale of non food goods, save for DIY products.There are no specifi c restriction against the installation of mezzanine fl oors or in respect of further subdivision.

The site as outlined in orange is held freehold.

6.0 tenure

Furn

iture

land

Alli

ed Car

petr

ight

Har

veys

Com

merce W

ay

5.0 planning

Purley Way



Unit Tenant Area Rent Rent ERV ERV Lease Lease Next

sq ft pa psf pa psf start expiry rent review

1 Homestyle Group Properties plc 14,446 £476,700 £33.00 £476,700 £33.00 24/06/06 23/06/21 24/06/11

2 Allied Carpets Properties plc 10,128 £349,416 £34.50 £349,416 £34.50 10/04/07 09/04/22 10/04/12

3 Carpetright plc 10,092 £348,174 £34.50 £348,174 £34.50 22/12/06 21/12/21 22/12/11

4 Homestyle Group Properties plc 7,498 £262,430 £35.00 £262,430 £35.00 24/06/06 23/06/21 24/06/11

Total 42,164 £1,436,720

The property is let on essentially full repairing and insuring leases in accordance with the following:

7.0 schedule of tenancies



Tenant Date Turnover Pre Tax Profi t Net Worth D&B Rating

(£’000s) (Loss) (£’000s) (£’000s)

Homestyle Group Properties plc 01/02/06 112,148 (1,693) 10,868 3A3

01/05/05 - (2,908) 12,561

Carpetright plc 28/01/07 475,900 67,000 29,100 4A1

29/04/07 451,400 64,200 21,700

Allied Carpets Properties Ltd 30/12/06 53,015 3,167 20,746 4A2

31/12/05 51,119 (14,628) 18,581

We summarise the most recent accounts in respect of each of the occupying tenants.

8.0 tenants’ covenant



The tone of the rents on the subject property were set by way of a number of regearings and lettings agreed between 2006 and 2007. The most recent was the letting of Unit 4 of 14,446 sq ft to Bensons Beds at a rent of £33.00 per sq ft. This tone of rent is supported by historical evidence in the location. Most specifi cally the letting in May in 2004 on the TK Maxx (32,400 sq ft) at the Purley Way Centre, which was agreed at £32.00 per sq ft.

The more historic rent review on the Mothercare World unit, extending to approximately 30,000 sq ft from May 2004 at an effective rate of £30.00 per sq ft also supports the rents on the subject property, as does the settlement on the adjacent Comet unit of 23,230 sq ft, which was agreed at a similar fi gure from March 2004.

We understand Mothercare World are in the process of considering downsizing their unit. It is rumoured that there is tenant demand at a rent in excess of £35.00 per sq ft. We do not consider this location to be as good as the subject premises and therefore this should demonstrate immediate reversion.

Castlemore Securities recently purchased the former Uno store to the south of the subject property. It is understood they are proposing a new retail warehouse development and we anticipate they will achieve lettings, which will demonstrate a reversion from the passing rents on the subject property.

The owners of the adjacent holding, which includes the Comet store, have planning consent for additional retail accommodation of up to approximately 16,000 sq ft. This could be developed in conjunction with the subject property to provide direct customer access between the two parks, which may provide a further stimulus for rental growth. There was previous interest in this accommodation from SCS.

Other than the intrinsic strength of the location as a retail destination, we believe there are a number of specifi c considerations which should lead to rental growth in the future.

9.0 rental value/asset management



Our clients are seeking offers in excess of £22.64 million subject to contract and exclusive of VAT, which would refl ect a net initial yield to the purchaser of 6.00%, assuming purchase costs of 5.7625%.

10.0 proposal



wwww.wilkinsonwilliams.co.uk

Purley Way Retail Park | Croydon | April 08 | Ref: 104973

Wilkinson WilliamsMellier House26a Albemarle StreetLondon, W1S 4HY

020 7495 4321

Miles Marten020 7317 [email protected]

MISREPRESENTATION NOTICEWilkinson 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 verifi ed 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.

8. Plans are published for convenience of identifi cation only and although believed to be correct, their accuracy is no guaranteed and they do not form part of any contract.

9.0 rental value / asset management1.0 locationfor more information please contact


12pp 104973 purley way 12

Documents

purley way purley way

a23 purley way

purley way retail park

retail centre

uks purley waysituated

town retail accommodation

property benefi ts

whitgift centre