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Burrfields Retail ParkBURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
RETAIL PARK INVESTMENT OPPORTUNITY
ENTER
Investment Considerations
• Portsmouth is a major commercial port and city in Hampshire, 20 miles east of Southampton.
• The city benefits from a large catchment and shopping population, significantly above the PMA retail average.
• The subject property is located in a prominent position opposite Ocean Retail Park; the dominant retail park in Portsmouth.
• The park is well let with a weighted average unexpired lease term of 6 years to the D&B ‘A’ rated covenants of Pets at Home and Staples.
• The rent totals £505,357 per annum, equating to £20.15 per sq ft overall, giving potential for future rental growth.
• Asset management angles including a potential pod unit development on the scheme.
• We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser’s costs at 5.80%), giving a purchase price of £7,961,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT.
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
BURRFIELDS RETAIL PARK
OCEAN RETAIL PARK
Location
Portsmouth is located in Hampshire on the south coast, 20 miles to the east of Southampton. The M275 connects the city to the M27 and the A27, which in turn form the main coastal route between Southampton to the west and Eastbourne to the east, and provide access to the national motorway network via the M3 and A3 (M), linking to London, 75 miles north.
The majority of the Portsmouth District is located on Portsea Island, which is separated from the mainland by a narrow strip of water. The city has been home to the Royal Navy for over 500 years and is a major commercial port.
Portsmouth train station provides regular services to several mainline destinations, including Southampton (45 minutes), London Waterloo (1 hour 30 minutes) and Birmingham (3 hours 20 minutes). The city is also the second busiest passenger and freight ferry port in the UK, with P&O, Commodore and Brittany offering regular ferry services to mainland Europe. Southampton Airport is located 16 miles west of the city.
Catchment Population
Portsmouth has a primary catchment population estimated by PROMIS of 503,000 people and a shopping population of 245,000 people, ranking it 40 and 45 respectively out of the top 200 PROMIS retail centres.
Experian calculate there is a total population of 232,914 people within a 10 minute drive time of the subject property, increasing to 521,493 people within a 20 minute drive time.
Portsmouth currently ranks 42 out of the top 200 PROMIS retail centres in terms of the volume of comparison retail spend available in the catchment area, and its dominance as a retail destination is demonstrated below:
Spending Potential Portsmouth PMA Sub Regional Centre Average
PMA Retail Average
Total in-store comparison retail expenditure 2014 (£m)
£1,174 £855 £837
Per capita retail warehouse expenditure 2014
£476 £473 £469
In addition, consumer spend within Portsmouth is significantly boosted by tourism. In 2013, the local authority estimated that approximately 9.25 million day trips were made to the city. Tourism was expected to generate around £444 million for the city in 2013; an increase of over 6% from 2012. Of this, over £150 million was spent within the retail sector, accounting for 37% of the total spend.
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
SOUTH DOWNSNATIONAL PARK
CHANNELTUNNEL
TERMINAL
LUTON
STANSTED
HEATHROW
GATWICK
SOUTHAMPTON Lydd/Ashford
CITY
LYNEHAM
8
7
11 12
9
10
13
6
12
43 5
763 54
7
6
3130
4
5
2
8
9
10
11
2 134
14
13
4
3
1
11
10
99
14 1312
67
10
65
7
12
1110
9
8
7
8
5
1314
44
12
1
2 3
91110
12
17
1615
18
9
10
11
7
11
78
9
10
2019
1
32
4
56
1718
5
4
2
1
2524
22
8
7 1
4
5
29
28
8
72
3
6
5
4
8
7
9
10
9
10
11
14
13
12
11
10
9
11
2
26
5
3
1
M23
M1
M2
M27
M26
M25
M20
A3(M)
M40
M4
M3
A329(M)
M25
M25
M25
M25
M20
M1
M10
A1(M)
M11
M4
M40
M3
M1 M11
M20
M5
M11
A36
A350
A36
A338
A346
A303
A354
A338
A350
A338
A419
A31
A31
A436
A417
A44
A40
A429
A40
A44
A44
A46
A46
A348 A3
38
A303
A31
A26
A23
A232
A4
A40
A406
A41
A406
A10
A12
A13
A2A20
A205
A3
A24
A34
A27
A3
A34
A5 A10
A505
A508
A421
A13
A127A127
A40A418
A41
A4010
A413
A41
A43
A5
A509
A6
A1
A602
A10
A414
A12
A120
A130 A131
A131
A134
A12
A130
A120
A133
A120
A14A12
A420
A34
A43
A422
A419
A505
A256
A299
A28
A28
A2
A2
A2
A28
A20
A207
0
A259
A259
A21
A229A249
A21
A228
A21
A26
A22
A22
A22
A259
A26
A27
A23
A264
A283
A24
A272
A24
A264
A22
A22
A2
A31
A33
A339
A34
A253
A27
A429
Stow-on- the-Wold
Hertford
WelwynGarden
City Ware
HatfieldHoddesdon
Royston
Biggleswade
Felixstowe
SudburySaffronWalden
Haverhill
Harwich
NewportPagnell
Sheerness
Canvey Island
Whitstable
HerneBay
Canterbury
Rayleigh
Chelmsford Maldon
Witham
Braintree
Bishop's Stortford
FavershamSittingbourne Ramsgate
Deal
Hythe
Ashford
Tonbridge
Uckfield
Crowborough
Bexhill-on-Sea
Newhaven
EastGrinstead
HaywardsHeath
LewesHailsham
Sevenoaks
OxtedRedhillReigate
Dorking
Horsham
Godalming
Chichester
Haslemere
Littlehampton
Petersfield
Sandown
Shanklin
RydeNewport
FawleyHythe
Lymington
New Milton Cowes
Alton
Winchester
Romsey
Farnham
Aldershot
Leatherhead
Bracknell
Windsor
Croydon
Swanley
Andover
Ringwood
Salisbury
Christchurch
Chippenham
Newbury
Devizes
Cirencester
Didcot
Dartford
Stroud
Witney Kidlington
Tilbury
Chigwell
Epsom
Sutton
Kingston upon Thames
Richmond
Woolwich
Barnet Enfield
Maidenhead
Beaconsfield
HarrowUxbridgeHenley-
on-Thames
Letchworth
St Albans
Hitchin
Dunstable
Berkhamsted
Tring
Marlow
HemelHempstead
LeightonBuzzard
Thame
Abingdon
Bicester
Aylesbury
BanburyEvesham
Stratfordupon Avon
Stevenage
Ipswich
Southend-on-Sea
Margate
Brentwood
Colchester
Clacton-on-Sea
Basildon
Gravesend
Dover
Folkestone
Tunbridge Wells
Maidstone
Hastings
Eastbourne
RochesterGillingham
Chatham
Crawley
BrightonHove
WorthingBognorRegis
Havant
Eastleigh
Basingstoke
Guildford
WokingCamberley
Staines
Reading
PooleBournemouth
Swindon
Cheltenham
Harlow
Slough
Watford
Luton
Bedford
Amersham
HighWycombe
Oxford
Milton Keynes
Fareham
Gosport
Portsmouth
SOUTHAMPTON
LONDON
Retail Warehousing in Portsmouth
Retail warehouse supply in Portsmouth totals 993,000 sq ft which includes the area of Havant. Overall provision per household of retail warehousing is below average. We believe that the limited retail warehousing competition in the city results in the majority of retailers generally trading well. The main retail warehouse provision is shown on the map opposite.
Situation
The subject property is located to the north east of Portsea Island, 0.5 miles west of the A2030; the main north-south route serving that side of the island, and 2 miles south of the A27. The scheme is easily accessible and highly visible from the road and benefits from the critical mass that Ocean Retail Park, located opposite, provides.
Ocean Retail Park, owned by The Crown Estate, totals 175,000 sq ft and is anchored by Currys PC World, Homebase and Toys R Us. The scheme attracts over 2.4 million visitors each year and is considered to be the dominant retail warehouse destination in Portsmouth.
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
A2030 EASTERN RD
EASTERN RD
EAST
ERN
RD
BURRFIELDS RD
STUBBINGTON AVE
FRAT
TON
RD
KING
ST
ON
RDLAKE RD
A3 N
ORTHERN
PAR
ADE
A2047
LO
ND
ON
RD
CO
PN
OR RD
COP
NO
R RD
ST. MARYS RD
MILTO
N R
D
NEW RD
NORWAY RD
EAST
ERN
RDN
OR
THER
N R
D
WESTERN RD
A288 EASTERN P ARADE
FAWCETT RD
KINGS RD
A3 SOUTHAMPTON RD
QUEEN ST
HAVANT RD
HAVANT RD
A3 LONDON RDPORTSDOWN HILL RD
PORTSDOWN HILL RD
PARK RD
NPA
RK
RD S
HAV
AN
T RD
LONGSTON
E BRIDGE
SEA FRONT
WES
T LA
NE
WES
T LA
NE
PORTSEAISLAND
HAVANT
Description
The property is an attractive, modern scheme totalling 25,083 sq ft arranged as a single terrace of 2 units of 15,079 sq ft, and 10,004 sq ft, let to Staples and Pets at Home respectively.
The scheme is well presented with a combination of brickwork and glazed elevations displaying the tenants’ signage.
Internally, the units are fitted out to the individual tenant’s specifications with the Pets at Home unit incorporating a veterinary surgery in part of their unit. The Staples’ unit benefits from having a storage mezzanine and there is sufficient eaves height to create a mezzanine within the Pets at Home unit, subject to planning.
Car parking is located to the front of the units providing 105 spaces, equating to an attractive car parking ratio of 1 : 239 sq ft. There is also additional staff parking in the service yard.
Servicing is located to the rear of the property with service vehicles accessing the property in the same way as customers, via Burrfields Road which leads to Ocean Retail Park.
The total site area is 1.983 acres providing a low site cover of 29%.
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
Tenure and Tenancy
The site, delineated below, is held freehold. The property benefits from an average income weighted unexpired lease term of 5.2 years and is let in accordance with the tenancy schedule below:
Unit Tenant Total Area (sq ft)
Lease Start Lease Term (years)
Lease Expiry Next Rent Review
Current Rent (per annum)
Current Rent (per sq ft)
1 Staples 15,079 07/11/2003 15 06/11/2018 £290,271 £19.25
2 Pets at Home 10,004 24/11/1997 25 23/11/2022 24/11/2017 £215,086 £21.50
Total 25,083 £505,357 £20.15
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
Planning
Planning was originally granted in April 1997 for the development of 2 units for the retail sale of goods, excluding where the primary use involves the sale of ‘food, not including animal feed; alcoholic drink; tobacco; stationery; books, newspapers and magazines; clothing and footwear; sports and leisure equipment; chemist goods and jewellery; and pre-recorded audio and visual software’.
The permission restricts the subdivision of the units to less than 8,000 sq ft without consent.
In July 1997 the consent was altered to allow part of the ground floor to be used as a veterinary surgery within the Pets at Home unit.
Following recent case law, given the particular working of the consent, it is considered there is an argument that the user restrictions within the consent may be invalid. However this is unclear and would need to be investigated in more detail. Further information can be provided on request.
Planning consent was granted in May 2008 to install a mezzanine of 3,315 sq ft within the Pets at Home unit. This was not implemented and has subsequently expired.
BURRFIELDS ROAD
BURRFIELDS ROAD
DU
ND
AS
LAN
E658 PARKING SPACES
TO LETUnder Negotiation
Q2 2015
Burfields Retail Park
A2030 EASTERN ROAD
A288 COPNOR ROAD
BURRFIELD RETAIL PARK
Asset Management Opportunities
We believe there is an opportunity to create a standalone pod unit or A3 drive thru unit in the car park, subject to planning. Coffee operators should be interested, in particular, given the high level of traffic passing the scheme. Subway and Carphone Warehouse have recently taken pod units on Ocean Retail Park demonstrating the demand for the location. We believe a pod operator could pay in the region of £32.50 per sq ft for a unit here.
Plans showing how this could be accommodated are available on request.
Staples have a lease expiry in 2018. It would be possible to subdivide their unit at lease expiry into 2 units of circa 7,500 sq ft, and potentially let these at rents ahead of the current passing rent. Given this is the main retail warehouse pitch in Portsmouth and there is a lack of available smaller units on Ocean Retail Park, we believe there would be strong demand from retailers for representation here.
The strength of the location is demonstrated by the fact there is strong occupier demand for Ocean Retail Park, when Paul Simon went into administration, Oak Furnitureland took an assignment of their lease, for a premium. In addition, negotiations are ongoing with a number of attractive retailers for a downsize of the Toys ‘R’ Us unit.
Tenants’ Covenants
Pets at Home is the UK’s largest pet supplies retailer, with more than 370 stores and 6,000 employees. The company sells products including food, toys, bedding, medication and accessories. The company recently floated on the FTSE 250 stock market.
Staples is the leading stationery supplier in the UK and US with over 2,200 stores globally. The company was started in 1992 and now employs over 2,200 staff.
Unit Tenant Year Ending Sales Turnover (000s)
Pre-Tax Profit/Loss (000s)
Net Worth (000s)
D&B Rating
Unit 1 Staples UK Ltd 01/02/2014 - - £1,260 1A2
02/02/2013 - -£22,629 £1,260
Unit 2 Pets at Home Ltd 27/03/2014 £633,429 £83,858 £462,455 5A1
28/03/2013 £586,350 £77,707 £382,537
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
Environmental
Delta Simmons have undertaken a Phase 1 Environmental Survey which is assignable to the purchaser. This gives the site a low to moderate environmental risk rating. A copy of the report is available on request.
EPC’s
Unit 1 has an EPC rating of B49 and Unit 2 has an EPC rating of C54.
VAT
The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction to be treated as a ‘TOGC’.
Proposal
We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser’s costs at 5.80%), giving a purchase price of £7,961,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT.
Contact Details
Paul WilkinsonT: 020 7317 3799M: 07770 585313E: p.wilkinson@wilkinsonwilliams.co.uk
Ellie KirkbyT: 020 7317 3790M: 07764 241898E: e.kirkby@wilkinsonwilliams.co.uk
Wilkinson WilliamsHeathcoat House20 Savile RowLondon W1S 3PR
www.wilkinsonwilliams.co.uk
BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH
Home Investment Considerations
Location & Catchment Population
Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy
& PlanningAsset Management Opportunities
& Tenants’ CovenantsEPC’s, VAT, Proposal
& Contact Details
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. May 2015. Designed and produced by Creativeworld Tel: 01282 858200
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