www.logisticsnorth.com
Transforming Regenerating Revitalising
14 years unexpired to a 5A1 covenant with guaranteed rental uplifts
M61/J4 BOLTON BL5 1BU COSTA COFFEE
INVESTMENT SUMMARY
. Excellent opportunity to acquire a newly developed, purpose built Costa drive thru unit located at the North West’s premier logistics park, Logistics North.
. Let for an unexpired term certain of approximately 14 years to the undoubted covenant of Costa Limited (Dun & Bradstreet 5A1) at a passing rent of £60,000 per annum.
. 5 yearly rent reviews to open market rent, subject to cap and collar of 3% and 1% per annum compounded, providing guaranteed rental uplifts.
. Prominent situation at the entrance of Logistics North, adjacent to a brand new Aldi Foodstore and Greene King pub, providing immediate access to Junction 4 of the M61.
. We are instructed to seek offers in excess of £987,000 (Nine Hundred and Eighty Seven Thousand Pounds) subject to contract and exclusive of VAT.
. A purchase at this level reflects a Net Initial Yield of 5.75% assuming purchaser’s costs of 5.74%.
. Minimum Reversionary Yield of 6.04% in 2022 and 6.35% in 2027.
www.logisticsnorth.com
Transforming Regenerating Revitalising
COSTA COFFEE
LOCATIONBolton is a major regional centre in the North West of England situated within Greater Manchester and just 10 miles north west of Manchester City Centre. The town of Bolton has a population of approximately 139,000, whilst the Metropolitan Borough, for which Bolton is the administrative centre, has a population of circa 262,000.
The Town benefits from excellent road communications, positioned between the M61 and M66 motorways both connecting directly to the M60 Manchester Orbital approximately 3 miles to the south.
The Town is highly accessible by rail with direct trains to Central Manchester in a journey time of under 20 minutes. Furthermore, Manchester Airport is located only 20 miles to the south east.
Bolton has the second highest employment base in Greater Manchester with 1 million people living within 45 minutes of Logistics North and circa 443,000 within a 5 mile radius. Total Weekly Consumer Spending was approximately £81 million within a 5 mile radius in 2016, with circa £6.5 million spent on Restaurants & Hotels.
M1
M69M6
M6 Toll
M1
M11
M25
A1(M)
A1(M)
A1(M)
M25M23
M2M26M3
M27
M4M4
M20
M40
M40
M42
M5
M50
M5
M6
M6
M6
A74(M)
M74
M56
M62M62
M180M18
M56M57
M54
M8
M61
HolyheadManchester
Leicester
BirminghamCoventry
Derby Nottingham
Sheffield
Stoke-on-Trent
Liverpool
Southampton
Poole
Bristol
Gloucester
Cardiff
Swansea
Plymouth
Exeter
Cambridge
Norwich
MiltonKeynes
Folkestone
Dover
London
Middlesbrough
Scarborough
Whitehaven
Dumfries
Carlisle
LeedsImmingham
Grimsby
York
NewcastleUpon Tyne
Edinburgh
Perth
Glasgow
A58
A56
A56
A50A57
A56A6
A6
A6
A664
A635
A5103
A579
A565
A565
A666
A6033A666
A580
A5080
A577A59
A59
A5209
A56
A34
A57
A49
M56
M60M62
M62
M58
M6
M6
M6
M60
A627(M)
M602
M61
M65
M60
M67
M66M62
Manchester
Bolton
Wigan
Warrington
Rochdale
Oldham
Liverpool
St. Helens
Southport
Preston Blackburn
J15J1
J4
LiverpoolJohn Lennon
Airport
ManchesterAirport
www.logisticsnorth.com
Transforming Regenerating Revitalising
LOGISTICS NORTHLogistics North is a 250 acre prime logistics park providing 4 million sq ft of masterplan employment space, with over 2.5 million sq ft completed or under construction.
The park benefits from unrivalled connectivity to junction 4 of the M61 motorway, resulting in access to 21 million consumers within a two hour drive time.
Costa Coffee is situated in an extremely prominent position at the entrance to Logistics North immediately adjacent to a brand new standalone Aldi Food Store and Greene King Pub.
Other blue chip occupiers on the estate include Amazon, Lidl, Joy Global, Aldi, MBDA and Whistl.
The property is ideally situated, not only to benefit from the footfall generated form the adjacent amenities, but also to serve the large labour pool within the wider estate. It also serves as a valuable service stop for commuters on the M61 motorway.
M61
J4
LOGISTICS 175FUTURE PHASE
PHASE 1
PHASE 2
Manchester 12 miles
COSTA COFFEE
www.logisticsnorth.com
Transforming Regenerating Revitalising
COSTA COFFEE
DESCRIPTIONThe property comprises a newly constructed, purpose built Costa Coffee ‘drive-thru’ unit, benefitting from 31 dedicated parking spaces.
The unit has been constructed to a typical Costa specification for their drive-thru format and comprises attractive part-rendered, part glazed elevations beneath a mono-pitched roof. Internally, Costa have fitted the unit out in accordance with their corporate branding, providing a well laid out sales counter and seating area with additional ancillary accommodation along with staff and customer toilet facilities.
The unit is situated in a low density, well laid out environment, providing an additional outdoor seating area with 360-degree circulation facilitating Costa’s ‘drive-thru’ offering.
USEThe lease permits use within Classes A1, A3, and A5.
www.logisticsnorth.com
Transforming Regenerating Revitalising
UNIT C
3
ACCOMMODATIONThe property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and benefits from the following areas: -
GIA (sq ft) GIA (sq m)
Ground floor 1,787 166.02
The property sits on a site of 0.51 acres (0.2 ha), providing a site cover of 8%.
TENANCYThe property is let entirely to Costa Limited on a new lease for a term of 15 years from 10 July 2017, providing an unexpired term certain of approximately 14 years.
The passing rent is £60,000 per annum which reflects £33.58 per sq ft. The lease is subject to 5 yearly rent reviews to open market rent, subject to collar and cap of 1% - 3% per annum compounded.
The lease therefore provides for guaranteed minimum rental uplifts:
. 10 July 2022 £63,060 pa
. 10 July 2027 £66,277 pa
The lease has been drafted on FRI terms.
COSTA COFFEE
Stock internal photo of a typical Costa Unit
M61/J4
Site entrance
www.logisticsnorth.com
Transforming Regenerating Revitalising
COVENANTS INFORMATIONCosta Limited (company no: 01270695) is a British multi-national coffee company, founded in 1971 and has grown to 3,401 stores across 31 countries. It is now the second largest coffee chain in the world and the largest in the UK.
The company has been Graded 5A1 by Dun & Bradstreet and is a wholly owned subsidiary of Whitbread, a FTSE 100 company listed on the London Stock Exchange.
02/03/2017(000’s)
03/03/2016(000’s)
26/02/2015 (000’s)
Turnover £866,366 £835,037 £735,974
Pre-tax profit £103,387 £117,498 £127,221
Tangible Net Worth
£616,894 £542,180 £444,814
Net current assets
£4,944,570 £2,194,127 £1,279,893
COSTA COFFEE
Stock internal photo of a typical Costa Unit
www.logisticsnorth.com
Transforming Regenerating Revitalising
Misrepresentation Act: B8RE and JLL for themselves and for the vendors or lessors of this property, whose agents they are give notice that: a) all particulars are set out as general outline only for the guidance of intending purchasers or lessees, and do not comprise part of an offer or contract: b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants 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, c) no person in the employment of B8RE and JLL has any authority to make any representation or warranty whatsoever in relation to this property. Images are indicative only. May 2018.
FURTHER INFORMATIONFor further information and to arrange a viewing, please contact one of the joint selling agents on the numbers below.
Simon Wood 01925 320 520 [email protected]
John Burrows 01925 320 520 [email protected]
Edward Blood 0161 238 6212 [email protected]
Andrew Whitehead 0161 238 6242 [email protected]
TENUREThe property is held freehold.
VATThe property has been elected for VAT and it is the intention to treat the transaction as a Transfer of a Going Concern (TOGC).
ESTATE CHARGEA service charge is administered throughout Logistics North.
For the year ending 31 Dec 2018, the amount apportioned to this property is £248.92 (£0.14 psf).
Further information can be provided upon request.
EPCAn Energy Performance Certificate is available upon request.
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PROPOSALWe are instructed to seek offers in excess of £987,000 (Nine Hundred and Eighty-Seven Thousand Pounds) subject to contact and exclusive of VAT.
A purchase at this level reflects the following yield profile, assuming purchaser’s costs of 5.74%
. Net Initial Yield: 5.75%
. Minimum reversionary yield at July 2022: 6.04%
. Minimum reversionary yield at July 2027: 6.35%
0161 828 6440jll.co.uk/property