halfords, marlborough retail park
TRANSCRIPT
Investment Summary
• Thepropertyoccupiesaprominentlocationin CentralCraigavonadjacenttoTescoExtra,B&Q andRushmereShoppingCentre&RetailPark
• Apurposebuiltretailwarehouseunitwithagross internalareaof7,791sqft.
• Freehold.
• OpenClassA1retailplanningpermission.
• ThepropertyislettoHalfordsLimitedona20year fullrepairingleasefrom1stNovember2002(tenant breakclausesatyears11&16).
• Currentrentpassingis£89,784perannum.The leasestipulatesthepropertyistobereviewedtoa 7,482sqftunitandonthisbasistherentequates to£12persqft.
• Opportunitytoregearthelease.
• Wehavebeeninstructedtoseekoffersinexcessof £850,000 (Eight Hundred and Fifty Thousand Pounds)reflectinganattractivenet initial yield of 9.98%withareversionary yield(based on our opinion of ERV) of 10.40%excludingVAT andassumingfullpurchaserscostsat5.80%.
Open Class A1 Retail Warehouse forming part of Craigavon Town Centre.
Derry
Craigavon
Newcastle
Middelsbrough
York
Leeds
Bolton
Liverpool
Dublin
Manchester
Nottingham
BirminghamCambridge
London
Oxford
Reading
Luton
Hull
ThesubjectpropertyislocatedinCraigavon,CountyArmaghandliesinbetweenthetownsofPortadownandLurgan.Craigavonislocatedapproximately28miles(45km)South-WestofBelfastand23miles(37km)NorthofNewry.
CraigavonenjoysexcellenttransportinfrastructureandiswellconnectedtotherestofIrelandandtomainlandUK.CraigavonhasgoodroadnetworksbeingpositionedwithincloseproximitytotheM1motorwaywhichlinksBelfast,approximately30minutesdrivetimetotheNorthandDublinviatheA1isapproximately1hour30minutesdrivetimetotheSouth.
InadditionthedirectBelfasttoDublintrainservicestopsinPortadownsome3.5miles(5km)totheSouth-Westofthetown.GeorgeBestBelfastCityAirportislocatedapproximately30miles(48km)totheNorth-EastwithBelfastInternationalAirportsome28miles(45km)totheNorth.
CraigavonBoroughhasthethirdlargestpopulationinNorthernIrelandandperformsastrongsub-regionalroleofferingawiderangeofservicesandfacilities,includinganacutehospital.
TheBoroughhasacatchmentpopulationof180,000,secondonlytoBelfastandhasthehighestbirthrateinthecountryof2.3%,Craigavon’spopulationof93,023isforecasttocontinuetogrowto100,000by2015andto112,000by2023.Additionallythereisapopulationof805,390withina45minutedrivetime.(Source:NISRA2011)
Craigavonisranked20thinCACI’srankingofover400IrishRetailFootprintCentresand7thinNorthernIrelandRetailFootprintranking.FurthermorethesurroundingretailareahasthegreatestretailfootprintattractivenessscoreoutsideoftheshoppingcentresinBelfast.
Belfast
Lisburn
Newry
Permit ID:130039 © Crown Copyright 2013
Thepropertyisapurposebuiltretailunit,constructedin2002extendingto7,791sqft.Themainretailareaisprimarilysinglestoreyhoweveritaccommodatesaretailareaatmezzaninelevel.Thebuildingcomprisesasteelportalframesupportingalowdualpitchedandhippedrooffinishedwithcompositeplastisolcoatedprofiledsteelsheetinginterspersedwithtranslucentrooflights.
Theexternalwallsarefinishedwithaplinthofclay
facingbrickatlowerlevelandthenalternatecoursesofclayfacingbrickandfairfacedconcreteblocksextendinguptoeaveslevel.Atthefrontofthebuildingaflatroofedatriumenclosedwithpolyestercoatedaluminiumcurtainwallingcompletewithsealeddoubleglazedunitsformsthecustomerentrance.
Internallythemainretailandmezzanineretailareasarelargelyopenplan.Themainretailareaisheatedwithanoilfiredductedwarmairunitwhichalso
incorporatesacoolingcoil.Asecondoilfiredboilerprovidestheheatingsourceforthedomestichotwaterandlowtemperaturehotwatersysteminthebackofhouseaccommodation.Illuminationthroughoutislargelybyfluorescentlighting.
Thepropertyoccupiesasiteofapproximately1.11acresandincludesapproximately48carparkingspacesequatingtoaratioof1:230sqft.
ThepropertyisfullylettoHalfordsLimitedforaperiodof20yearsfromtheleasecommencementdateof2ndNovember2001withaleaseexpiryon1stNovember2021.Thetenanthasoptionstodeterminetheirleaseattheendofthe11thand16thyear.
Thepropertybenefitsfrom5yearlyopenmarketrentreviewswiththenextreviewdueon2ndNovember2016.Thecurrentrentpassingis£89,784perannumandtheleasestipulatesthepropertyistobereviewedtoa7,482sqftunit.Onthisbasistherentequatesto£12persqft.
AmeasuredareassurveyhasbeenundertakenbyPlowmanCravenLtdwhichisassignabletothepurchaserandisavailableinthesecuredocumentlibrary.
YE 30/03/2012 YE 01/04/2011 YE 02/04/2010 Halfords Ltd GBP(000’s) GBP(000’s) GBP(000’s)
SalesTurnover 752,300 771,400 817,600
Profit/(Loss)BeforeTaxes 101,300 122,000 109,200
TangibleNetWorth 425,800 350,900 261,500
NetCurrentAssets(Liabilities) 347,100 270,900 181,600
Description
Unit Tenant Floor Area (sq ft) Area (sq m) Rent (£) Lease Start Lease Expiry Rent Review Tenant Break Option
Unit1 Halfords Ground 7,791 724 Marlborough limited 89,784 02/11/2001 01/11/2021 02/11/2016 02/11/2017RetailPark Mezzanine 3,256 302.5
Tenancy and Accommodation
Tenant Covenant
HalfordsCraigavonsitsadjacenttoan86,620sqftB&QwhichtogetherformMarlboroughRetailPark.ThesubjectpropertyissituatedadjacenttoaTescoExtrawhichalongwiththe490,000sqftRushmereShoppingCentre&RetailParkformCraigavonTownCentreassetoutintheBoundariesandRetailDesignationsPlan2010.
RushmereShoppingCentre&RetailParkishometocirca70retailersandisanchoredbySainsbury’s,Debenhams,HomebaseandTKMaxx.RecentlyplanningapprovalhasbeengrantedforanOmniplexCinemaincloseproximitytoMarlboroughRetailParkwhichwilladdalatenightleisureelementtotheretailoffer.
Situation
CENTRAL W
AY
CENTRA
L WAY
MARKET
LANE
CENTRAL W
AY
HIGHFIELDROAD
CENTRA
L WAY
CENTRAL W
AY
LAKEVIEW
ROAD
BALTEAGH
ROAD
HIGHFIELD ROAD
MANDEVILLEROAD
EROAD
TESCO
B&Q
DEB
ENH
AM
S
TK M
AX
X
SAIN
SBU
RY
S
MEN
AR
YS
NEX
T
AR
GO
S
PETS AT
HO
ME
HA
RR
Y
CO
RR
Y
CU
RR
YS
HOMEBASE
POUND
STRETCHER
B&MBARGAINS
MATALAN
DU
NN
ES
STOR
ES
HO
ME
BA
RG
AIN
S
HALFORDS
TESCOPFS
Tenure
Freehold
Forindicativepurposesonly
Planning
OpenClassA1planningpermission.ThesubjectsiteandadjoininglandsweredesignatedTownCentreaspartofthe‘CraigavonTownCentre,BoundariesandRetailDesignationsPlan2010’.
ThesurroundinglandsareproposedforadditionalOpenA1retailandleisureusers.AnyretaildevelopmentintheCraigavonAreawillbefocusedwithinthenewtowncentredevelopmentlimit.
MarlboroughRetailParkandRushmereRetailParkformCraigavonTownCentreandisthedominantretailwarehouseprovisionforthesurroundingcatchment.
Marlborough Retail Park – Class 1 Retail PermissionThesubjectpropertyiscurrentlylocatedwithinMarlboroughRetailParkwhichalsoincludesa86,620sqftB&Qanda113,738sqftTescoExtrawithanassociated8pumpfillingstation.TheRetailParkbenefitsfromopenclassretailconsentwithrentsrangingfrom£12persqftto£12.50persqft.
Rushmere Retail Park – Class 1 Retail PermissionRushmereRetailParksitsoppositethesubjectpropertyandprovidesover130,000sqftofopenclass1retailaccommodation.TheTenantline-upincludesMatalan,B&MBargains,Poundstretcher,Homebase,Currys,HarryCorry,PetsatHome,Argos,NextandMenary’s.Theheadlinerentsarecurrentlyintheregionof£17persqft.
Estimated Rental Value
Onthebasisoftheabove,webelievetheetimatedrentalvalueofthepropertyisintheregionof£93,500perannum,equatingto£12.50persqft.
ThepropertyhasbeenelectedforVATpurposesandthereforeitisexpectedthattheinvestmentsalewillbeconsideredasaTransferofaGoingConcern(TOGC).
Proposal
Wehavebeeninstructedtoseekoffersinexcessof£850,000 (Eight Hundred and Fifty Thousand Pounds)reflectinganattractivenet initial yield of 9.98% witha reversionary yield (based on our opinion of ERV) of 10.40%excludingVATandassumingfullpurchaserscostsat5.80%.
Retail Warehousing in Craigavon VAT EPC
Further Information Secure Document Library
Ifyourequireaccesstothesecuredocumentlibraryonlineorforfurtherinformationpleasecontact;
Savills(NI)LimitedforthemselvesandfortheVendorsorLessorsofthepropertywhoseagentstheyaregivenoticethat;i)theseparticularsaregivenwithoutresponsibilityofSavills(NI)LimitedortheVendorsorLessorsasageneraloutlineonly,fortheguidanceofprospectivepurchasersortenants,anddonotconstitutethewholeoranypartofanofferorcontract;ii)Savills(NI)Limitedcannotguaranteetheaccuracyofanydescription,dimensions,referencestocondition,necessarypermissionsforuseandoccupationandotherdetailscontainedhereinandanyprospectivepurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutmustsatisfythemselvesbyinspectionorotherwiseastotheaccuracyofeachofthem;iii)noemployeeofSavills(NI)Limitedhasanyauthoritytomakeorgiveanyrepresentationorwarrantyorenterintoanycontractwhatsoeverinrelationtotheproperty;iv)VATmaybepayableonthepurchasepriceand/orrent,allfiguresarequotedexclusiveofVAT,intendingpurchasersorlesseesmustsatisfythemselvesastotheapplicableVATposition,ifnecessarybytakingappropriateprofessionaladvice;v)Savills(NI)Limitedwillnotbeliable,innegligenceorotherwise,foranylossarisingfromtheuseoftheseparticulars.June2013.
www.savills.com/halfordscraigavon
Ben Turtle Director
1stFloor,LesleyStudios32-36MayStreet,BelfastBT14NZ
Tel:02890268006Email:[email protected]
Dervla Daly Surveyor
1stFloor,LesleyStudios32-36MayStreet,BelfastBT14NZ
Tel:02890268009Email:[email protected]
James Gulliford Director
33MargaretStreetLondonW1G0JD
Tel:02074099934Email:[email protected]