aldi, tarvin road
TRANSCRIPT
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Executive Summary Opportunity to purchase a supermarket
investment within the affluent and historic cathedral City of Chester
Limited supply for additional retail schemes within the city
Let to ALDI (5A1) for 20 years from 2 September 2013 at a current rent of £548,729 pa
Current rent equates to only £14.37 /sq ft
Fixed five yearly rent reviews based upon 2.5% pa uplifts with the next uplift September 2023
Aldi are currently refurbishing their Supermarket
Our clients are seeking offers in excess of
£12,100,000 (twelve million, one hundred thousand pounds) which reflects a net initial yield of 4.25%, rising to 4.81% in September 2023 and 5.44% by September 2028, net of costs at 6.71%
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
Location
Chester is an attractive and affluent historical cathedral city, an important tourist destination and the administrative centre for the county of Cheshire. Chester is located approximately 45 miles (72km) south west of Manchester and 13 miles (21 km) south of Liverpool.
It is one of the major retailing centres in the North West ranked 27th in the UK having an estimated catchment of 326,000 which increases with the influx of tourists which are estimated at over 8 million each year.
The city’s major attractions include shopping, Chester Cathedral, Roman archaeology, Chester Zoo (currently having a £300m extension), the racecourse, the castle and the historic Rows and Amphitheatre.
The District of Chester has a very affluent population, well above the national average in terms of wealth. Over 80% of the City’s working population are involved in the service sector with major employers being Lloyds Bank, HSBC, Marks and Spencers and MBNA Europe Bank.
Chester benefits from excellent road communication links, with the M53 Motorway accessed via junction 12, situated approximately 3 miles (5 km) to the east. In turn the M53 provides direct access to the Wirral to the north west, to the
M56 Motorway and the national Motorway network via the M6. In addition, the A55 (coast road) provides access to North Wales.
Manchester nternational Airport is situated approximately 30 miles (48 km) to the east and Liverpool’s John Lennon Airport situated 24 miles (39 km) to the north, both service the City. Rail access is via Crewe to London Euston (2 hours 20 minutes), Liverpool Lime Street (45 minutes) and Manchester Oxford Road (1 hour 10 minutes).
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M60
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ECCLES
WALKDEN
ST HELENS
WIGAN
HORWICH
CHORLEY
DARWEN
BURNLEY
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LEYLAND
TARLETON
BLACKBURN
WHALEY
CLITHEROE
LYTHAM ST ANNES
BLACKPOOL
GARSTANG
LONGRIDGE
CHIPPING
DUNSOP BRIDGE
BARNOLDSWICK
GISBURN
LONG PRESTON
MALHAM
FLEETWOODPILLING
SOUTHPORT
FORMBY
BOOTLE
WALLASEY
BIRKENHEAD
HESWALL
NESTON
DEESIDE
WREXHAM
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RUTHIN
WHITCHURCH
DENBIGH
PRESTATYN
BODELWYDDANELLESMERE PORT
MACCLESFIELD
WILMSLOW
STOCKPORT
KNUTSFORD
WARRINGTON ALTRINCHAM
CONGLETON
NANTWICH
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NORTHWICH
WIDNES
RUNCORN
ORMSKIRK
SKELMERSDALE
BOLTON
BURY
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RAWTENSTALL
HEBDEN BRIDGE
HAWORTH
SKIPTON
SALFORD
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MANCHESTER
CHESTER
LIVERPOOL
STOKE-ON-TRENT
LANCASTER
PRESTON
ST ASAPH
RIVER MERSEY
RIVER DEE
RIVER RIBBLE
MANCHESTERAIRPORT
LIVERPOOL JOHN LENNON
AIRPORT
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
To Ellesmere PortTo Manchester
To North Wales
A56 HOOLE
WAY
N WALES EXPRESSWAY A55 N WALES EXPRESSWAY A55
N W
ALES
EXP
RESSW
AY
A55
A48
4
A550
A548 SEALAND ROAD
A548 SEA LAND ROAD
A5104 CHESTER ROAD
WRE
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M R
OAD
A
483
A55
0
A540 PARKGATE RO
AD
A5116
A548
B5129
MAN
OR
LN
B5125
B5 125
CHESTER ROAD B5129
Chester
Bache
Hawarden
Buckley
Shotton
QueensferryConnah’sQuay
Hawarden
Broughton
M56
M53
11
12
15
A5 1 TARVIN ROADA5115 WHITCHURCH ROAD
A41 RING
ROAD
A4
1
RING ROA
D
CHESTER
Situation
The property is situated in the densely populated residential suburb of Boughton, approximately 1.5 miles east of the City centre. The property is accessed directly off the A51 which is the main arterial route out of the city connecting to the A41 and A55. In turn the A55 then connects with the M53 and M56 motorways.
Eastgate Street
Watergate Street
N
orthga
te Street
Princess Street
Trinity Street
Hunter Street
King Street
City W
alls Ro
ad
Garden Lane
Canal Street George Stre et
Raym
ond Street
Bouverie Street
Garden Lane
Cheyney Road
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tadi
um W
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Saint Anne Str
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Station Road
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Bridg
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Low
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hsam
Street
Abbey Stre
et
Castle
Drive
The Groves
Grosvenor Park Road
B5130 Sand
y Lane
B5130
Lightfeet Street
Lightfeet Street
Westm
inster Road
Hoole Lane
Hool
e La
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Black Friars
W
hite Friars
Commonhall StWea
ver Street
Castle Street
Ship
gate Street
Duke
Stree
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A483
G
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A5268 Pepper Street
A5268
A5628 Sa
int Ma
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A548
A548
A5116 Live
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ad
A5268 Saint Oswalds Way
A46
Hool
e W
ay
A5268
A5268 A51 Boughton A51 Tarvin Road
A5115
A540
A51 Tarvin Road
A5115 Christleton Road
ChesterRacecourse
GrosvenorPark
Earl’s EyeMeadows
HooleParkChester Rail
Station
SAT NAV:CH3 5ND
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
Accommodation
The property extends to approximately 38,178 sq ft (3,547 sq m).
Out of this total area approximately 8,081 sq ft is sublet to Baycrown Ltd, trading as The Carpet Factory and 12,000 to TJ Morris trading as Home Bargains.
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
DESCRIPTION
The property comprises a detached retail warehouse unit constructed in the mid 1990’s on an island site of 3.6 acres (1.46 hectares).
The property which completely refurbished in 2013 and creates effectively three units, the supermarket occupied by ALDI and 2 other retail warehouse units occupied by Home Bargains and the Carpet Factory.
The property is of a steel portal frame construction under a pitched roof with external part brick and part metal clad elevations.
The unit benefits from approximately 196 car spaces providing an excellent ratio 1:195 sq ft.
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
PLANNING
Planning consent was granted on 5th July 2013. The permission grants an open A1 discount retail food store use on the area to be occupied by Aldi with a maximum 15% of net sales floorspace for comparison goods. The area occupied by Home Bargains has the benefit of non food class A1 use with a maximum 30% of floor area for convenience goods and 25% for food and drink products. The area occupied by The Carpet Factory has a restriction to electrical goods, home furnishings and motor accessories.
TENURE
Freehold.
TENANCY
The property has been let on an overriding lease to Aldi Stores Limited for a term of 20 years on FRI term from 2 September 2013 subject to five-yearly, upwards-only rent reviews based upon 2.5% per annum compounded.
The current rent passing is £548,729 per annum equating to a low base of £14.37 per sq ft.
The fixed rental uplifts are as follows:
Date Rent Rent Per Sq Ft
Current £548,729 £14.37
Sept 2023 £620,832 £16.26
Sept 2028 £702,409 £18.40
T J Morris Limited trading as Home Bargains have sublet approximately 12,000 sq ft of the total floor space from Aldi Stores Limited on a 20 year sublease at an initial rent of £156,000 pa. Rent reviews are five yearly to 2% pa compound.
A further part of the property (approximately 8,081 sq ft) has been sub let to Baycrown Ltd, trading as The Carpet Factory on FRI terms for 15 years from 25 March 2010 at £72,000 pa subject to five yearly rent reviews.
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
Covenant Information
Aldi is a leading global discount supermarket chain established in Germany in 1913 with over 9000 stores in 18 countries with an estimated combined turnover in excess of €50 billion. Further information on the company can be found at www.aldi.com.
Aldi is now the fifth largest supermarket in the UK having doubled its market share to 7.5% since 2010 (Kantar). With a current portfolio of 700 stores within the UK, Aldi is looking to expand to over 1,000 stores by 2022. Globally, Aldi currently has 10,000 stores worldwide across 18 countries within Europe and the United States.
Aldi Stores Limited has a Dun & Bradstreet rating of 5A1, representing a minimum risk of business failure. Their most recent accounts are shown in the table below.
Years End 31 Dec 2016 31 Dec 2015 31 Dec 2014
Sales Turnover £8,744,385,000 £7,705,140,000 £6,893,256,000
Profit Before Tax £214,795,000 £212,621,000 £250,584,000
Tangible Net Worth £2,321,983,000 £2,073,988,000 £1,948,445,000
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
Rental Commentary
We understand the store has a strong trading profile and we consider there would be significant competition for this site if it was available to let, with upside over the passing rental level of £14.37 per sq ft.
In terms of rental value, we would highlight the following comparable evidence:
Property Transaction Date GIA (sq ft) Rent (psf)
Aldi, Old Trafford Manchester Letting 2017 19,890 £19.00
Aldi, Newton Le Willows Manchester Letting 2017 18,557 £15.25
Aldi, Ormskirk Letting 2017 17,000 £15.00
Aldi Coventry Letting 2016 20,128 £17.75
Aldi, Sale Manchester Letting 2014 19,132 £18.00
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Prime Food StoreInvestment Opportunity
Investment Market
Property Date Initial Yield /NIY Lease Term (Break) Rent Review Comments
Lidl, Acton U/o Quoting 4.25% 25 (20) 5 yearly RPI (1-2.5%) Under offer ahead of quoting terms
Aldi, Romford Oct 2018 Sub 3.5% 24.5 5 yearly RPI Understood other interest at similar levels
Aldi, Sale Aug 2018 4.5% 15.5 5 yearly (2.5% fixed) Upper floors sold off for residential flats
Aldi, Hasting Aug 2018 4.2% 20 5 yearly RPI (1-2.5%) Forward commitment
Aldi, Leigh May 2018 4.2% 13.5 5 yearly RPI (1-2.5%) Purchased with adjoining B+M split analysis
Aldi, Bedford (Clapham Road) May 2018 4% 20 5 yearly RPI (1-3%) -
Aldi, Royston Apr 2018 4.25% 15 5 year RPI (1-3%) Forward funding. Purchased with M&S split analysis
Aldi, Hull Feb 2018 4.22% 20 5 yearly RPI (1-3%) Forward commitment
Aldi, Bedford (Ampthill) May 2017 4.3% 20 5 year RPI (1-3%)
ALDI Tarvin RoadBoughton, Chester, CH3 5ND
Further Information
Should you wish to inspect the property or require additional information, please contact:
Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. October 2018. RB&Co 0161 833 0555. www.richardbarber.co.uk
David Winterbottom0161 956 410307836 225 [email protected]
gva.co.uk/146620161 834 7187
EPC
The property has an EPC rating of B.A full copy can be downloaded at gva.co.uk/14662
VAT
We are advised that the property is elected for VAT purposes and therefore the sale of the property will attract VAT. It is anticipated that the sale will be treated as a transfer of a going concern.
Adam Wildig0161 956 402907739 325 [email protected]
Matt Jones0161 956 410507904 629 [email protected]
Our clients are seeking offers in excess of
£12,100,000 (twelve million, one hundred thousand pounds) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level would show the following yield profile:
Proposal
Initial 4.25%
Sept 2023 4.81%
Sept 2028 5.44%
Net of costs at 6.71%.