CASTLEBAWN RETAIL PARK, NEWTOWNARDS, BT23 8NN.Prime Northern Ireland Retail Park Investment

• Well located Retail Warehouse investment 10 miles east of Belfast.

• Catchment population of 165,000 people within a 15 minute drive time.

• The only purpose built retail warehouse park in Newtownards.

• Open class 1 planning permission.

• Let to Matalan, TJ Morris, Poundworld and Burger King.

• Low rent psf providing excellent future growth prospects.

• 72.90% of current income is secured on tenants with 5A1 Dun & Bradstreet rating.

• WAULT of 4.59 to break and 7.43 to lease expiry.

• Planning permission secured for a new 23,303 sqft retail warehouse between Tesco Extra and Matalan.

• Offers are sought in excess of £8,750,000 for the long leasehold interest reflecting a Net Initial Yield of 8.25%.

• Low capital value psf of £161.75.

HIGHLIGHTS

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Newtownards is located 10 miles east of Belfast, at the head of Strangford Lough, with a resident population of over 30,000 people and a catchment population of approximately 165,000 people within a 15 minute drive time.

Newtownards is a prosperous market town and administrative centre, with major employers represented including Bombardier, Munster Simms, Denroy, Magellan Aerospace, Valpar, Ards & North Down Borough Council and South Eastern Health & Social Care Trust.

LOCATION & CATCHMENTThe area is also home to some of the Province’s most prominent agri-food companies such as Willowbrook Foods, Mash Direct and Pritchitts. In total, 8 of the top 30 manufacturing companies in Northern Ireland are based in the borough.

The retail park is located on the newly constructed A20 distributor road providing easy access to all of the surrounding catchment. Castlebawn is the sole purpose built retail warehouse park in Newtownards.

HOLYWOOD

BANGOR

GROOMSPORT

DONAGHADEE

MILLISLE

CARROWDORE

BALLYHALBERTKIRCUBBIN

PORTAFERRY

PORTAVOGIE

GREYABBEY

BALLYGOWAN

COMBER

NEWTOWNARDSBELFAST

NEWRY

STRABANE

BELFAST

NEWTOWNARDS

ENNISKILLEN

OMAGH

BALLYMENA

COLERAINE

LARNE

LETTERKENNY

LONDONDERRY

5 Minute drive

10 Minute drive

15 Minute drive

Not to scale/ For indicative purposes only

Not to scale/ For indicative purposes only3

BELFAST10 Miles

HOLYWOOD4 Miles

Ards Shopping Centre

CastlebawnRetail Park

BANGOR3 Miles

DESCRIPTIONCastlebawn Retail Park comprises a terrace of 4 retail warehouse units totalling 50,865 sqft, and a drive thru restaurant adjacent to a Tesco Extra of approximately 90,000 sqft (with PFS). The scheme benefits from 972 free car parking spaces.

The units, which were constructed in 2011, are of modern portal frame construction with mixed block and clad walls, concrete floors and metal decked roof cladding. The façade incorporates glazed shopfronts and entrance detailing including tenant signage.

PLANNING CONSENTThe existing scheme benefits from unrestricted A1 retail consent.

Planning consent has recently been granted for a gross 23,303 sqft unit (retail area 19,800 sqft ) between the Tesco Extra and Matalan. This permission is currently on the basis of A1 bulky goods consent.

A full planning summary is included in the Data Room.

C:100M:60Y:0K:0

The Investment is being offered on the basis of a 175 year leasehold interest at a peppercorn rent in respect of the retail warehouse terrace, the consented site between Tesco Extra and Matalan, the servicing area, and the drive thru restaurant.

The purchaser will be granted rights over the car park and all roadways within the development which are being retained along with the Tesco Extra and PFS by Tesco.

TENURE

Not to scale/ For indicative purposes only

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C:100M:60Y:0K:0

UNIT TENANT TRADING FASCIA

UNIT SIZE (GIA SQFT)

LEASE START

LEASE END NEXT REVIEW

BREAK CLAUSE

ANNUAL RENT (£/PA)

ANNUAL RENT (£/PSF)

COMMENTS

Unit 1 Poundworld Retail Limited

Poundworld + 10,223 24/10/11 23/10/21 24/10/16 £158,457 £15.50 Exclusivity for retailing at a price point of £1.00 or less

Unit 2 T J Morris Limited

Home Bargains

10,223 17/10/11 16/10/26 17/10/16 £153,495 £15.01 Rent Review capped at maximum of 2% pa compounded

Service charge capped at £1.00 psf plus annual RPI increase (current cap £11,825pa and no landlord exposure)

Units 3&4 Matalan Retail Limited

Matalan 30,419 19/09/11 18/09/26 19/09/16 19/09/21 £407,310 13.39

Drive Thru Restaurant

Windmill (NI) Limited

Burger King 3,229 28/05/12 27/05/27 28/05/17 27/05/24 £58,000* 15.48 Rent 10% of Turnover subject to a base rent of £50,000pax

Base rent reviewed to 80% of OMV

Current rent £58,000 (based on estimated turnover for year ending 27/05/18)

54,094 sqft £777,262

TENANT COVENANT

TENANCY SCHEDULE

UNIT TENANT TRADING FASCIA

% OF INCOME

YEAR ENDING

TURNOVER (000’S)

PROFIT/LOSS PRE TAX (000’S)

NET WORTH (000’S)

D&B RATING

RISK OF FAILURE

Unit 1 Poundworld Retail Limited

Poundworld + 20.60% 2017 488,846 -15,541 -6,719 N4 High

Unit 2 T J Morris Limited

Home Bargains

19.95% 2017 1,869,198 168,226 747,814 5A1 Minimum

Units 3&4 Matalan Retail Limited

Matalan 52.95% 2017 1,036,100 10,300 346,500 5A1 Minimum

Drive Thru Restaurant

Windmill (NI) Limited

Burger King 6.50% 2017 13,543 127 611 C3 Higher Than Average

Windmill has the largest Burger King franchise in NI with 22 units

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Offers are sought in excess of £8,750,000 (Eight Million, Seven Hundred and Fifty Thousand Pounds) for the long leasehold interest, reflecting a Net Initial Yield of 8.25% based upon the income of £777,262 pax (assuming purchaser’s costs of 7.68%).

Based on the low rents psf and asset management opportunities, this well located investment will provide excellent prospects for future rental and capital growth.

PROPOSAL

The passing rents range from £13.39 to £15.50 psf.

Other open consent retail parks in Northern Ireland reflect the following rents:

RENT PROFILE

RETAIL PARK RENTAL TONE

Boucher Shopping Park, Belfast £32.50 psf

Showgrounds Retail Park, Omagh £23 psf

Lisnagelvin Retail Park, Londonderry £20 psf

Orritor Road Retail Park, Cookstown £15 psf

The market for good quality retail warehouse investments remains strong.

Recent retail warehouse investment sales include:

INVESTMENT MARKET

RETAIL PARK PRICE NIY

Strabane Retail Park (2018) £3.25m 8.00%

Great Northern Retail Park, Omagh (2017) £9.175m 8.10%

Lesley Retail Park, Strabane (2017) £5.0m 8.50%

Damolly Retail Park, Newry (2016) £30.75m 7.40%

Lisnagelvin Retail Park, Londonderry (2015) £16.75m 6.50%

Showgrounds Retail Park, Omagh (2014) £27.0m 7.00%

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CONTACT

Michael PierceM: 077 7622 4114

E: michael.pierce@cushwake-ni.com

Robert ScottM: 078 1574 2152

E: robert.scott@cushwake-ni.com

Cushman & Wakefield5 Oxford Street,

Belfast, BT1 3LA

T: 028 9023 3455

W: www.cushmanwakefield-ni.com

Disclaimer: Cushman & Wakefield / Morgan Williams. June 2018.McCombe Pierce LLP and Morgan Williams for themselves and for the vendors or lessors of this property for whom they act, give notice that: (I) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; McCombe Pierce LLP and Morgan Williams cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; (iii) no employee of McCombe Pierce LLP and Morgan Williams has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents quoted in these particulars may be subject to VAT in addition; (v) McCombe Pierce LLP and Morgan Williams (and its subsidiaries where applicable) will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.

Tom WatsonM: 078 5000 6070

E: tom@morganwilliams.co.uk

Mark MorganM: 078 0264 4068

E: mark@morganwilliams.co.uk

Geoff PhillipsM: 079 3955 9508

E: geoff@morganwilliams.co.uk

Morgan Williams21 Hanover Square,

London, W1S 1JW

T: 020 7493 4455

W: www.morganwilliams.co.uk

Environmental surveys will be available in the Data Room.

SURVEYS

The property is registered for VAT

VAT

Unit 1 B50

Unit 2 C54

Unit 3&4 D82

Drive Thru C72

Full details are available upon request

EPC

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