8pp Wigan_Chapel Lane_final_

Wigan - Chapel Lane - Freehold Retail Warehouse Investment - 1

Freehold Retail Warehouse Investment – WN1 1DUOpen A1 Planning Permission

MFI, Chapel Lane (A49), Wigan

2 - Freehold Retail Warehouse Investment - Chapel Lane - Wigan

Current passing rent of £343,873 per annum ■

equating to £11.48 per sq ft.

Asset management opportunities. ■

Offers are sought in the region of ■

£4,485,000 (four million four hundred and eighty five thousand pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 7.25%, assuming purchaser’s cost calculated at 5.7625%.

Investment SummaryWigan is located between the M6 and M61 ■

motorways approximately 19 miles north west of Manchester and 22 miles north east of Liverpool. The resident population is approximately 90,000.

The property is situated fronting Chapel Lane ■

immediately to the south of the town centre.

Purpose built retail warehouse extending to ■

approximately 29,953 sq ft (2,782.70 sq m).

Freehold. ■

Unrestricted A1 retail planning permission ■

including food.

MFI Properties Limited occupy the property on ■

a lease expiring on 28 September 2017. The next rent review is effective on 4 July 2011.

Investment Summary



LocationWigan is located approximately 19 miles northwest of Manchester, 22 miles northeast of Liverpool and 15 miles south of Preston. The town has good communications being located between the M6 and M61 motorways. Junctions 25 and 26 of the M6 are approximately 3 miles to the west and Junctions 5 and 6 of the M61 are approximately 6 miles to the east. The main line railway station provides regular services to Manchester and Liverpool and there is a direct service to London Euston with a fastest journey time of 2 hours 40 minutes.

SituationThe subject property is situated fronting Chapel Lane (A49) on the southern edge of Wigan town centre and close to the junction with Darlington Street (A577). Wigan station and the main shopping areas of Wallgate , Market Place and the recently completed Grand Arcade Shopping Centre are less than 5 minutes walk. Grand Arcade totals in excess of 425,000 sq ft and is anchored by a Debenhams department store of approximately 105,000 sq ft. Other occupiers include Marks & Spencer, Next, River Island, Monsoon, The Body Shop, Jane Norman, Boots and Costa Coffee.

Road improvements have recently been completed to Chapel Lane which has been renamed the Westwood Park Link Road. There is a proposal to extend the link directly into the Wigan Gateway (route A5225) which would bring a new access to the town centre directly from junction 26 of the M6.

MFI, Chapel LaneMFI, Chapel Lane Freehold Retail Warehouse Investment – WN1 1DU

Wigan

DemographicsWigan has an urban area population of approximately 166,840 and a district population of 301,415 (2001 Census). The demographic profile of the District indicates a relatively affluent population that compares favourably with national averages as follows:-

Demographic District GB

Home Ownership 72.2% 68.3%

Own 2 or more cars 23.3% 23.1%

Happy Families 16.48% 11.46%

Blue Collar Enterprise 14.43% 11.56%


12

3

6

5

4

7

Subject Property

1 The Range

2 Bathstore.com and Floors To Go

3 Staples

4 Robin Retail Park

5 Walmart & B&Q

6 Saddle Retail Park

7 ScS

8 Marus Bridge Retail Park

RIV

ER W

AY

CHAP

EL L

ANE

A49

QUEEN STREETCAROLINE STREET

ROONEY

STREET HARRO

GATE

STREET

DARLINGTON STREET A577

LIBRARY STREET

MILLG

ATE

KIN

G STREET WEST

KING STREET

STATIO

N R

OAD

PRINCESS STREET

Offices

TH

Liby

ScholesBridge

MusCarParkStation

Station

HPO

PWCourt

Memi

GasHolders

POOffices

Court

PolSta

Offices

DepotLock

Grand Arcade

Shopping CentreUnder

Construction

Grand Arcade

Shopping CentreUnder

Construction

DescriptionThe property comprises a single storey retail warehouse unit of steel portal frame construction with brickwork externally to a height of approximately 8 ft (2.44m) with profiled metal cladding above. Customer and service vehicle access is directly from Chapel Lane with customer car parking spread mainly to the north side of the unit.

Wigan’s Out of Town RetailThe main scheme in Wigan is Robin Retail Park located approximately 1 mile west of the town centre off Robin Park Road next to the JJB Stadium, home of Wigan FC. Occupiers on this park include Boots, Matalan, Comet, Next, Argos Extra, Carpetright, Allied Carpets, JJB Sports, First Choice and Wickes. The rental tone for units of circa 10,000 sq ft is £23.50 per sq ft.

There is a Walmart food store and B&Q Warehouse located off Wallgate close to Robin Retail Park. Saddle Retail Park is located opposite Walmart and comprises units let to the likes of Halfords, Currys and McDonalds. ScS trade from a 7,500 sq ft unit, opposite Walmart, paying a rent of £22 per sq ft, whilst Staples are in a standalone unit fronting Wallgate.

The Range occupy the former Focus unit on Chapel Lane just to the south of the subject property. Directly opposite The Range, on the other side of Chapel Lane and fronting Caroline Street, Lombard Properties have recently completed a 15,000 sq ft retail warehouse development. Units of 4,000 sq ft and 3,000 sq ft have been let to Bathstore.com and Floors 2 Go at rents of £14.25 per sq ft and £16.00 per sq ft respectively. Marus Bridge Retail Park is located two miles to the south of Wigan on Warrington Road. The park is anchored by J Sainsbury with other tenants Homebase, Au Naturale and McDonalds.

Purpose built retail warehouse extending to approximately 29,953 sq ft (2,782.70 sq m)

8


AccommodationThe property provides accommodation on ground floor with a gross internal floor area of approximately 29,953 sq ft (2,783 sq m).

Car ParkingThere are approximately 109 customer car parking spaces providing a ratio of one space per 275 sq ft GIA (1:25.52 sq m).

SiteThe site area is approximately 1.93 acres providing a low site coverage of 34%.

MFI, Chapel LaneMFI, Chapel Lane Freehold Retail Warehouse Investment – WN1 1DU

PlanningPlanning permission was originally granted on 1 March 1982 with subsequent permissions being obtained in 1983 and 1985.

A further planning permission was granted on 24 January 2006 to extend the retail warehouse together with alterations to external elevations and existing parking. There are no conditions on use within this permission.

We are advised therefore that the property benefits from an unrestricted A1 planning permission.

Furthermore, Wigan Council have verbally confirmed that the property lies within the designated town centre boundary although interested parties should make their own enquiries.

Copies of the various planning permissions can be provided on request.

TenureThe site is held freehold and is outlined in red on the plan for identification purposes only.

TenancyMFI Properties Limited occupy the property on a lease expiring on 28 September 2017. The next rent review is effective on 4 July 2011. The current passing rent is £343,873 per annum equating to £11.48 per sq ft.

KING STREET

RAILWAY LINERAILWAY LINEA49 C

HAPEL LA

NE

RO

DN

EY S

TREE

T


Current passing rent of £343,873 per annum equating to £11.48 per sq ft

Tenant CovenantIn November 2006 MFI Group sold MFI Properties Ltd to MEP Mayflower, a company owned by Merchant Equity Partners.

MFI Properties Ltd (Reg. No. 1410500) currently have a Dun & Bradstreet rating of 5A4. A summary of their last two sets of published accounts is as follows:-

Year End Net Sales Pre-tax Profits Net Worth

24-12-2005 £9,217,000 £19,544,000 £117,255,000

25-12-2004 £10,439,000 £4,933,000 £173,166,000

EnvironmentalCapita Symonds Structures carried out an environmental review of the property in 2005. The report concluded that the property in its current use does not represent a significant environmental risk. The report is fully assignable and copies are available upon request.

VATThe vendor has advised that the property is elected for VAT purposes and therefore VAT will be payable on the purchase price.

ProposalOur client is seeking offers in the region of £4,485,000 (four million four hundred and eighty five thousand) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level would show an attractive net initial yield of 7.25% assuming purchaser’s costs of acquisition at 5.7625%.

Asset ManagementPlanning permission has been granted for an extensive refurbishment of the property to provide three retail warehouse units designed to a modern institutional specification. This would include the removal of the external cladding and a partial redesign of the steel portal frame to extend its width and reduce the depth.

Brick/blockwork elevations would be provided externally to a height of approximately 10 ft (3.05 m) with composite sheeting above to full height.

A possible proposed layout plan and indicative new entrance canopies are shown and the refurbished accommodation could be as on the plan below. Alternatively the 15,000 sq ft unit could be to the rear of the site with the two smaller units to the front.

A49 C

HAPEL LA

NE

RO

DN

EY S

TREE

T

KING STREET

RAILWAY LINERAILWAY LINE

15,000 sq ft7,500 sq ft6,000 sq ft

Indicative Entrance Canopies

GIFAUnit Sq Ft Sq M

1 15,000 1.393.55

2 7,500 696.77

3 6,000 557.42

Total 28,500 2,647.74


Further Information

Tim Bevan-Thomas

[email protected]: 020 7758 9881

Misrepresentation Act: CWM & Partners LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that:1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract;2. All descriptions, dimensions, reference to condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them;3. No person in the employment of CWM & Partners LLP has any authority to make or give any representations or warranty in relation to these properties.

Mark Powell

[email protected]: 020 7758 9883

CWM London

16 Old Bond StreetLondonW1S 4PS

Telephone: 020 7493 5655Facsimile: 020 7493 5665

MFI, Chapel Lane l Wigan l Feb 2008 l 104716.002

Documents

8pp Wigan_Chapel Lane_final_