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Colney Fields Shopping ParkBarnet Road, London Colney, Junction 22, M25
Development Funding Opportunity
Colney Fields Shopping Park is located at Junction 22, M25 with excellent communications to the national motorway network.
1,558,123 population within 30 minutes drive.
Investment Summary
Colney Fields Shopping Park is located at Junction 22, M25 with excellent communications to the national motorway network.
The M1 (J6a) is located 6 km (4 miles) to the west, whilst Junction 1 of the A1(M) is located 4.5 km (3 miles) to the east.
Catchment population of over 1.5 million people within a 30 minute drive.
The surrounding population is extremely affluent with 39.6% categorized as AB against a GB average of 21.7%.
Open A1 non food planning permission, with no restriction on mezzanine floors.
Pre-let or under offer to Next, Borders Books, Sports World and Boots.
Long leasehold, 125 years from 4th January 2000 at a £1 per annum.
The development will form part of Colney Fields Shopping Park which, in time will measure at least 28,242 sq m (304,000 sq ft).
The development itself will measure approximately 5,408 sq m (58,212 sq ft) and have 290 (1:18.64 sq m / 1:200 sq ft) dedicated car spaces.
The remainder of the park is occupied by Sainsbury’s Supermarkets Ltd - 12,077 sq m (130,000 sq ft) and
Marks & Spencer Plc- 10,776 sq m (116,000 sq ft).
Pre-lettings have been agreed between £484 per sq m (£45.00 psf) and £568 per sq m (£52.80 psf).
Projected net income: £2,884,050 per annum.
Offers are invited to enter into a Forward Funding to Purchase the long leasehold interest at a price of £54.54 million
subject to contract and exclusive of VAT. After purchaser’s costs of 5.7625%, this reflects a net initial yield of 5.0%,
5.29% reversionary in 2009 and 5.22% equivalent yield.
LocationLondon Colney is situated at J22 of the M25, 4.5 km (3 miles)
south of St. Albans town centre, 33 km (22 miles) north of
Central London.
Watford, Hemel Hempstead, Hatfield, Welwyn Garden City and Radlett
all lie within a 15 km (10 mile) radius.
SituationColney Fields Shopping Park is located off the Bell roundabout (A1081)
at Junction 22 of the M25 to the south of London Colney. Access to
the park is via Barnet Road.
Opposite the development, Sainsbury’s occupy 12,077 sq m (130,000
sq ft) and Marks & Spencer occupy 10,776 sq m
(116,000 sq ft).
Between the development site and the existing stores are located
approximately (an additional) 1,250 car spaces.
Crown Copyright 2004 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only
AB C1
District Population
Home Ownership
Broxbourne
52.1%
87,054
79.8%
Hertsmere
63%
94,450
75.2%
St Albans
70.4%
129,005
77.1%
GB Average
51.1%
-
68.3%
DemographicsColney Fields falls within the administrative borough of St. Albans close to its
eastern boundary with Broxbourne and southern boundary with Hertsmere.
The catchment population (aged 16 and over) within a 10 minute drivetime
is 59,080, within 20 minutes it is 461,869 and within 30 minutes 1,558,123.
Class Groupings 2001Summarised below are salient demographic statistics for the
3 administrative areas taken from Focus.
(Source: Experian)
Not to Scale - For Identification Purposes Only
The DevelopmentThe development, currently under construction, will provide
approximately 5,408 sq m (58,212 sq ft) of open A1 non food retail
accommodation opposite the existing Sainsbury’s and Marks & Spencer
stores.
It is proposed to create 5 units ranging from 465 sq m (5,000 sq ft) to
1,858 sq m (20,000 sq ft) which are capable of subdivision and are
designed to accommodate a full mezzanine level.
The scheme will include 290 car spaces - 1:18.64 sq m (1:200 sq ft).
In addition, rights will be granted for customers to use any of the
remaining 1,250 car spaces although permanent rights will not be
granted. Servicing will be provided via a self contained service yard to
the rear of the units.
SpecificationThe proposed specification will include the following:
Steel portal frame construction, with a clear height to the
underside of the haunch of 7.5m (24.5 ft).
Floor loading 30.0 kN/sq m.
External elevations: combination of blockwork and composite
cladding panels.
Dedicated tenant signage areas to front and rear elevations.
Composite roof panel system.
Entrance feature.
Service yards finished in brushed concrete to take
a 9,000 kg axle load.
Planning PermissionThe site has Full Reserved Matters consent dated 3rd February 2004.
Outline consent was granted in May 1998 for "retail development
including garden centre within class A1, restaurants within class
A3 & hotel within class C1 of the Town and Country Planning
(Use classes) Order 1987 together with car parking, alterations to
existing car park layout, new access arrangements and landscaping".
A copy of the consents are available on request.
There are no restrictions on the installation of mezzanine floors,
however unit sizes are limited to between 450 sq m - 3,300 sq m
(4,843 sq ft - 35,521 sq ft).
TimingConstruction commenced in May 2004 with practical completion
scheduled for October 2004.
EnvironmentalThe site has undergone a full environmental investigation which
concludes:- "Contamination has not been identified on the eastern part of
the site and therefore remediation is not considered necessary in this area".
A copy of the full report is available on request.
The Development Team is as follows:Developer Ramheath Properties Ltd
(A wholly owned subsidiary
of J Sainsbury Plc)
Contractor Bowmer & Kirkland Ltd
Project Manager Cube Management Ltd
Architect CHQ Partnership Ltd
Quantity Surveyor Henry Riley & Sons Ltd
M&E Consultant Longcross Ltd
Structural Engineer Burks & Green & Partners Ltd
Highway Engineer Mayer Brown Ltd
Planning Supervisor PCM Ltd
Landscape Architect Arthur Amos
Planning Consultant Littman Robeson
Environmental Consultant RSA Geotechnics Ltd
Letting Agent Elkington & Partners
Solicitors Lawrence Graham
Unit
1
2
3
4
5
Tenant
Borders UK Ltd
Sports WorldInternational LtdHeld Back
Boots the Chemist
Next Group Plc
TOTAL
Size m sq (Sq ft)929
(10,000)
1,055 (11,356)
511 (5500)1,055
(11,356)1,858
(20,000)
Lease
15yrs
15yrs
-
15yrs
15yrs
Rent £ p.a. £ psf
£500,000 £50
£567,800 £50
£316,250 £57.50
£600,000 £52.83
£900,000 £45
£2,884,050
ERV £ p.a.£ psf
£530,000£53
£601,900£53
£316,250£57.50
£601,900£53
£1,000,000£50.00
£3,050,050
Comment
£100,000 Capital contribution. Rent free 48 weeks from access.Agreement to Lease signed.16 weeks rent free, under offer, solicitors instructed.
3 months rent free, under offer,solicitors instructed.3 months rent free. Agreement to Lease signed.
Site PlanThe development site comprises approximately 1.7 hectares
(4.2 acres). The whole of Colney Fields Shopping Park measures
approximately 11.96 hectares (29.6 acres).
TenureThe property is held on a 125 year lease from 4th January 2000
at one pound per annum (if demanded). The freeholder is
Sainsbury’s Supermarkets Ltd.
Covenant Status of Tenants
Unit
1
2
3
4
5
Tenant
Borders UK Ltd
Sports World
Held back
Boots the Chemist
Next Group Plc
Year ending
25/1/2003
28/4/2002
31/3/2003
1/2/2003
Turnover
£152m
£397m
£4.2bn
£2.2 bn
Pre Tax Profits (loss)
(£1.4m)
£46m
£386m
£301m
Net Worth
(£10.5m)
£81m
£700m
£244m
D & B Rating
N 3
5 A1
5 A1
5 A1
Tenancies & AccommodationTotal and anticipated net income amounts to £2,884,050 pa. All units are, or will be,
let on institutional leases including full repairing and insuring terms, subject to 5
yearly upward only rent reviews with 100% service charge recovery.
Terms certain will be for a minimum of 10 years.
It is proposed that the property will be pre-let on five leases as follows:
Retail Warehouse Standard Performance1993 - 2003
Market Standing Investments Annualised over the last:
Total Return (% pa) 1 Yr 3 Yrs 5 Yrs 10 Yrs
Retail Warehouses: All UK 16.4% 13.8% 13.5% 14.6%
Retail Warehouses: South East (excl. London) 17.6% 14.4% 14.4% 14.3%
All Retail 15.5% 11.6% 11.1% 11.4%
All Property 10.9% 9.1% 10.5% 10.6%
Income Return (% pa)
Retail Warehouses: All UK 6.4% 6.5% 6.5% 7.0%
Retail Warehouses: South East (excl. London) 6.6% 6.7% 6.7% 7.1%
All Retail 6.6% 6.5% 6.5% 6.8%
All Property 7.0% 6.9% 7.0% 7.4%
Capital Growth (% pa)
Retail Warehouses: All UK 10.0% 7.3% 7.0% 7.6%
Retail Warehouses: South East (excl. London) 11.0% 7.7% 7.7% 7.2%
All Retail 8.9% 5.1% 4.6% 4.6%
All Property 3.9% 2.2% 3.5% 3.2%
Retail Warehouse PerformanceThe South East Retail Warehouse sector has outperformed the All
UK Retail Warehouse sector and All Property sectors over 1, 3 and
5 years and only marginally failed to outperform the All UK Retail
Warehouse sector over 10 years. (Source: IPD)
(Source: IPD)
Shopping Park RentsListed opposite, on a national and regional level, is a schedule
showing the level of rents achieved on shopping parks.
Of particular note is Brookfield Retail Park in Cheshunt.
Out of Town Retailing Northern Home Counties
Pre-emption rightsSainsbury’s & Marks & Spencer plc have reciprocal pre-emption rights
over Colney Fields Shopping Park. As such this investment must be
offered to Marks & Spencer at full market value, prior to
a binding contract being entered into with the selected party.
To comply with the pre-emption arrangements a period of 2 months
from acceptance of an offer (or if later one month after any arbitrator
has made a determination of the market value) must be allowed for
prior to unconditional Exchange of Contracts. If Marks & Spencer
do not wish to purchase the investment then the pre-emption rights will
cease to have any further effect subject to exchange with the
selected party within 180 days following the expiration of the
relevant time periods mentioned above.
PriceOffers are invited to enter into a Forward Funding to Purchase the long
leasehold interest at a price of £54.54 million, subject to
contract, exclusive of VAT and net of purchaser’s costs at 5.7625%.
This reflects an initial yield of 5.0%, 5.29% reversionary in 2009 and
5.22% equivalent yield, based upon our ERV.
VATThe property will be elected for VAT.
Contact information
Richard Ashworth Arun Sibal James Welch
020 7355 0991 020 7355 0992 020 7355 0993
[email protected] [email protected] [email protected]
Ashworth Sibal Welch
48 Charles Street
London W1J 5EN
T: 020 7355 0990
F: 020 7355 0999 C H A R T E R E D S U R V E Y O R S
Misrepresentation Act 1967Ashworth Sibal Welch (ASW) for themselves and for the vendors of this property whose agents they are give notice that:1. These particulars are a general outline only, for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract;2. ASW cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and therefore
prospective purchasers much not rely on them as statements of fact or representations and must satisfy themselves as to accuracy;3. ASW or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property;4. Rents and prices quoted may be subject to VAT in addition;5. ASW will not be liable in negligence or otherwise for any loss arising from the use of these particulars;6. No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn;7. ASW have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. May 2004
C H A R T E R E D S U R V E Y O R S