Embed Size (px)
Citation preview
Friary Retail Park, Exeter Street, Plymouth
Open A1 (Non-Food) Retail Warehouse Park
Freehold - For Sale
Friary Retail Park, Exeter Street, Plymouth
n Freehold Retail Warehouse Investment.
n Prime accessible edge of town
location.
n Open A1 (non-food) retail planning
consent on 77,657 sq. ft of
accommodation with 352 car parking
spaces (1:220 sq. ft).
n Excellent tenant line up of Wickes
Building Supplies Ltd, Dunelm (Soft
Furnishings) Ltd and Pets at Home Ltd.
n Current total income of £1,153,890
per annum exclusive, reflecting low
average base rent of £14.85 per sq. ft.
n Asset management and redevelopment
potential, giving opportunity to
enhance income profile.
n Offers invited at in the region of
£13,625,000 to reflect a net initial
yield of 8% assuming purchaser’s costs
at 5.725%.
INVESTMENT SUMMARY
Drake Circus Shopping Centre
Friary Retail Park, Exeter Street, Plymouth
DEMOGRAPHICSIn terms of expenditure, Plymouth ranks only second to Bristol and above Exeter, Bath
and Cheltenham in the southwest region (source – Experian 2007). In May 2008, the
unemployment rate stood at 2.1% compared with the GB average of 2.2%.
Levels of car ownership within the urban area and wider district area, are above the
national average, with 48.4% of households within the urban area having one car,
compared to the GB average of 43.8% (2001 census). The table below illustrates the
weekly vehicle movements to Friary Retail Park during January 2009 and compares this to
the same peiod for 2008.
The City’s local economy, traditionally focused on the naval dockyard at Devonport, has
experienced a renaissance in recent years. Today, the service sector accounts for around
80% of jobs, broadly in line with the top 100 PROMIS centres. The city has attracted
major employers such as Orange, KPMG, British Telecom, Natwest, the Child Support
Agency, BCC and The Land Registry.
LOCATIONPlymouth is the major commercial centre for Devon and Cornwall, situated alongside the
A38, approximately 44 miles to the west of Exeter. The A38 links to the M5 motorway, 40
miles to the east. The city benefits from a direct train link to London (Paddington) with a
fastest journey time of approximately 3 hours 45 minutes.
Plymouth has a resident population of approximately 244,000 people and an estimated
shopping population of 337,000 persons, ranking the city 22nd of the 100 PROMIS centres.
This illustrates that Plymouth is dominant within its catchment area.
A30
A30
A30
A38 A38
A30
A30
A35
M4
M5
M5
M5
A386
A379
PLYMOUTH
St AustellDartmouth
ExmouthNewton Abbot
Bude
Barnstaple
Exeter
Tiverton
Bridgwater
Taunton
Dorchester
Yeovil
BristolCardiff
Weston-Super-Mare
Weymouth
Minehead
Bridgend
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
12,476 11,856
4,746
12/01/2009 5/01/2009 14/01/2008
Weekly NationalChange
Weekly Friary Retail ParkChange
Yearly Friary Retail ParkChange
-2.2%
5.2%
162.9%
Weekly vehicle movements at the Friary Retail Park
Friary Retail Park, Exeter Street, Plymouth
SITUATIONThe park is located approximately half a mile to the east of Plymouth City centre on
the north side of the A374 (Exeter Street) and approximately 2 miles south west of the
main intersection of the A374 and the A38 at Marsh Mills. The park occupies a highly
prominent site and is on a slightly elevated position on Exeter Street giving excellent
visibility to the units.
DESCRIPTIONThe scheme was originally constructed in 1990 and comprised two separate units.
In 2008 Unit A was subdivided to create two smaller units, which were let in accordance
with the tenancy schedule to Dunelm and Pets at Home. Unit B is let to Wickes. The
scheme now provides a total gross internal area of approximately 77,657 sq. ft and to the
front and west of the units is a customer car park with 352 spaces equating to an overall
ratio of 1 per 220 sq. ft. The Dunelm unit benefits from a trading mezzanine, incorporating
a cafeteria area, of approximately 16,500 sq. ft. The Wickes unit benefits from a garden
centre of approximately 10,000 sq. ft.
There is a concrete surfaced service yard to the rear of the Wickes and Dunelm units,
accessed from a dedicated service road. The Pets unit has an “open walkway” service
corridor to the rear of Dunelm.
TENUREThe site is shown edged red on the scheme layout plan and is held freehold.
Friary Park
Friary Park
Surgery
Beaumont Road
Sub Station
CorporationYard
Exeter Street103107111
105108113
115118123
117121125
127131135
129133137 138143148
141145149
St Jude’s Road
Totmill Road
VIADUCT
Friary Gate
B3250
B3214
A379
A379
A386
A3064
A374
A374
A374
A374
A38
A38
A38
A38
A38
A386
A386
B3432
B3413
B3413B3733
B3396
A3064
A3064
B3413
B3240
A374
A374
PLYMOUTHCITY CENTRE
FRIARYRETAIL PARK
T H E P A R K W AY TH E P A R K W A Y
TA
VIS
TOCK R
O
AD
EX ETER R O A D
EMBA
NKM
ENT
ROAD
BI LLACOMBE R OA D
UN IO N STREET
ALMA RO
A
D
O
UTLAN
D ROAD
W OLSELEY ROAD
T H E P AR K WAY
Friary Retail Park, Exeter Street, Plymouth
PLANNINGThe property benefits from an open A1 (non-food) retail consent, secured on appeal in
September 1987. Detailed consent was granted for the erection of two non-food retail
warehouses and garden centre, with associated car parking and service areas, in July 1989.
Permission was given in February 2008 to external alterations to the ex-Courts unit (Block
A) including formation of new recessed entrances, additional fenestration, upgrading of
eaves fascias and a provision of additional parking bays for disabled persons.
A Certificate of Proposed Lawful Use for the sale of pet food was granted on 15th July 2008.
Copies of relevant documents may be provided on request.
TENANCIES AND ACCOMMODATIONThe property provides the following approximate gross internal areas and is let in
accordance with the tenancy schedule set out below.
Unit Tenant Floor Area (sq ft) Lease Start Term Expiry Date Next Rent Review Rent (pa) Rent (psf)
A1 Dunelm (Soft Furnishings) Ltd 29,317 13.10.2008 15 13.10.2023 25.12.2013*1 £435,000*2 £15.00*3
A2 Pets at Home Ltd 11,602 20.10.2008 15 24.12.2023 25.12.2013 £232,040*4 £20.00
B Wickes Building Supplies Ltd 36,738 29.9.1990 25 28.9.2015 29.9.2010 £486,850 £13.25
Totals 77,657 £1,153,890 £14.89 average
Notes *1 Dunelm RR to lower of OMV or 2.5% pa compound. *2 Rent becomes payable with effect from 13.7.2009 *3 Dunelm rental £15psf based on floor area capped at 29,000 sq ft in lease. *4 Rental becomes payable with effect from 6.11.2009
The vendors will pay rental difference between completion and end of rent-free periods by way of a deduction from completion statement.
SERVICE CHARGEThe tenants are responsible for their due proportion of the service charge. A copy of the
current years s/c accounts can be provided on request and the total property budget for year
ending 31.3.2009 is approximately £42,500. Pets have a s/c cap in their lease so that the
service charge will not exceed a fair proportion of £47,000 in year 1 and £51,000 in year 2.
Friary Retail Park, Exeter Street, Plymouth
TENANT COVENANTSThe most recent tenant’s accounts are summarised below:
Tenant Date
Turnover
(£000’s)
Pre-Tax Profit
(£000’s)
Net Worth
(£000’s)
D&B
Rating
Wickes Building Supplies Ltd
29.12.0730.12.06
929,171847,466
59,50340,163
119,457 82,822 5A1
Dunelm (Soft Furnishings) Ltd
30.06.0701.07.06
354,721315,187
39,75239,946
21,68414,023 4A2
Pets at Home Ltd 29.03.0730.03.06
303,152272,233
38,94832,169
11,950 7,400 3A2
RETAIL WAREHOUSING IN PLYMOUTHThere is a total, out of town, retail warehouse stock in the region of 1,090,000 sq. ft in
Plymouth, of which only 22% has the benefit of open retail consent, with 52% being
bulky/restricted use and 26% in leisure use.
Apart from Friary Retail Park, the only other open A1 retail park is Erril Retail Park (64,600
sq. ft) to the east of the City near Plympton. This is a secondary scheme comprising an
Allied Carpets, Focus and Homemaker, with current passing rents at £12 per sq. ft and
leases expiring in 2009.
The main bulky goods offer of approximately 155,000 sq. ft is situated at Marsh Mills,
where phases 1 and 2 comprise of a Homebase, DFS, Furniture Village, Halfords, PC World,
Land of Leather, Carphone Warehouse and Wickes. Rents here are set in the range of £20
- £27.50 per sq. ft, depending on size.
On Plymouth Road, east of Marsh Mills, Coypool Retail Park, phases 1 and 2, provide
further secondary bulky space let to B&Q, Comet, Currys, Furniture Land, Harveys and The
Computer Shop. Rents range from £12.50 to £16.50 per sq. ft.
B3250
B3214
A379
A379
A386
A3064
A374
A374
A374
A374
A38
A38
A38
A38
A386
A386
B3432
B3413
B3413 B3733
B3396
A3064
A3064
B3413
B3240
A374
A374
PLYMOUTHTOWN CENTRE
FRIARYRETAIL PARK
Errill Retail Park
Coypool Retail Park
Marsh Mills Retail Park
Laira Bridge Retail Park
Toy ‘R’ Us
Homebase
Transit WayRetail Park
Sainsburys
B&Q
Friary Retail Park, Exeter Street, Plymouth
ASSET MANAGEMENTThere is potential to improve the income further by capitalising on the open retail consent
and seeking to downsize the Wickes unit or regear of the existing lease. A surrender of the
Wickes lease could also be considered.
The profile of the park could be further enhanced with a refurbishment of the Wickes
unit along similar lines to the recent works on the Pets/Dunelm stores. A proposal
to reduce the depth of the existing unit and create three new 10,000 sq. ft units
has received a favourable response from the planners. There is potential for further
development in the car park subject to the necessary consents and taking into account
certain “no-build” areas.
ENVIRONMENTALA recent environmental survey of the site has been carried out and a copy is available
on request.
PROPOSALWe are seeking offers in the region of £13,625,000 (Thirteen Million Six Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT.
This reflects an attractive net initial yield of 8% assuming normal purchaser’s costs of 5.725%.
VATThe property has been elected for VAT purposes and VAT will therefore be chargeable on the purchase price.
FURTHER INFORMATIONFor further information please contact:
Colin BootePartner – Investment
Green & Partners LLP4 Gee’s CourtSt Christopher’s PlaceLondon W1U1JD
Tel: 020 7659 4830Fax: 020 7659 4820
Email: [email protected]
James Baillie Peter PainTel: 020 7659 4839 Tel: 020 7659 4831
Email: [email protected] Email: [email protected]
MISREPRESENTATIONThese particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but there accuracy is not guaranteed. The purchaser should satisfy itself as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office.
Adrian Gates Photography & Design 07710 316991
