riverside retail park - completely...

WELL SECURED oPEn A1 RETAiL PARK inVESTMEnT oPPoRTUniTY

RiversideRetail ParkWarrington

05 ExEcutivE Summary

06 LOcatiON

06 SOciO-EcONOmic PrOFiLE

08 rEtaiL WarEHOuSE PrOviSiON

10 SituatiON

11 DEScriPtiON

12 tENaNciES

12 tENurE

12 SErvicE cHarGE

13 PLaNNiNG

13

14

cOvENaNt iNFOrmatiON

aSSEt maNaGEmENt OPPOrtuNitiES

15 PrOPOSaL

CONTENTS

rivErSiDE rEtaiL ParK WHARF STREET WARRingTon WA1 2gZ

n Warrington is located in the north west of the uK,

strategically positioned between manchester and

Liverpool in the county of cheshire and at the

heart of the surrounding motorway network. the

town’s resident population stands in the order

of 198,900 people and the 15 minute drivetime

catchment is approximately 248,000 people (caci

Ltd).

n riverside retail Park is situated only a short

distance to the south east of Warrington

town centre, on the banks of the river mersey

and adjacent to the mersey road roundabout

junction.

n the park extends to around 14,703 sq m

(158,259 sq ft), comprising 12 units configured

in an L-shaped terrace around forecourt

parking for approximately 625 cars, together

with two stand alone restaurant pods.

n currently fully let to 14 occupational tenants

the scheme boasts a strong retail mix

including Homebase, Sportsdirect.com,

Discount uK, Pets at Home, Laura ashley,

Home Bargains, Next, Pizza Hut and mcDonalds.

n the current annual income stands at £2,601,421

reflecting non food rents of between £13.00 -

£22.65 psf, whilst the average weighted unexpired

term is around 9.7 years.

n 76.4% of the income is secured against companies

boasting a Delphi rating defined as ‘low risk’

whilst 69.8% is rated ‘very low risk’.

n the park benefits from an Open a1 non food

planning consent, though food sales over c. 1,728

sq m (18,600 sq ft) of floorspace are expressly

permitted, in isolation to the a3 planning consents

for the two restaurant pods.

Offers are sought in the region of £35,000,000 subject to contract and exclusive of VAT, for the Freehold interest in this property. A purchase at this level would reflect an initial yield of 7.03%, based on purchasers costs of 5.80%.

additionally should an uplift be agreed on the outstanding

Homebase review from September 2011 a further top-up

payment from the Purchaser is expected by the vendor.

Postcode: WA1 2gZ Grid Reference: SJ 61153 87881

EXECUTIVE SUMMARY

rivErSiDE rEtaiL ParK WARRingTon

05

Warrington

Knutsford

Widnes

Wilmslow

Lymm

Runcorn

Ellesmere Port

Saint Helens Newton le Willows

Norton

Burtonwood

Ashton in Makerfield

Haydock

Prescot

Tylldesley

Rainhill

Abram

Elton

Risley

Knowsley

Northwich

Warrington

Knutsford

Widnes

Newton le Willows

Norton

Burtonwood

Ashton in Makerfield

Haydock

Prescot

Tylldesley

Rainhill

Abram

Elton

Risley

Knowsley

Northwich

Wilmslow

Lymm

Runcorn

Ellesmere Port

Saint Helens

M6

M62M62

M57

M56

M56

M56

M62

M6

M6

10 minute drivetime

15 minute drivetime

30 minute drivetime

LOCATION

rivErSiDE rEtaiL ParK

SOCIO-ECONOMIC PROFILE

Warrington boasts a resident borough population of around 198,900 people.

Drivetime catchment fi gures provided by caci Ltd

shows populations of 135,882 people, 247,980 people

and 559,358 people within 10, 15 and 20 minute

contours respectively.

Warrington is situated in the county of Cheshire, approximately 31.5 km (19.6 miles) south west of Manchester, 21.7 km (13.5 miles) south of Wigan, 30.1 km (18.7 miles) east of Liverpool and 311 km (193 miles) north west of London.

Standing on the banks of the river mersey, the

town prospered during the industrial revolution

and indeed doubled in size following its designation

as a ‘New town’ in 1968. Warrington boasts strong

communication links as a result of its positioning at

the heart of the north wests’ motorway network. the

m62, Junction 9, is around 4 km (2.5 miles) to the north

via the a49 Winwick road, providing direct links to

Liverpool in the west and manchester to the north east.

the m6, via the a574 or a57, provides a key arterial

north south route just to the east, linking with Wigan,

Preston and the North and Newcastle under Lyme,

Stoke on trent and the South. Finally the m56, around

7.4 km (4.6 miles) to the south via either the a56 or

a49, offers a link to Ellesmere Port and the m53 to the

south west.

Warrington Bank Quay train Station offers links to

Liverpool, manchester and Preston amongst others and

provides a fastest direct service to London Euston of

around 1 hour 50 minutes.

06

MANCHESTER

WARRINGTON

LIVERPOOL

ST HELENS

WIGAN

NORTHWICH

CHESTER

STOCKPORT

MACCLESFIELD

WIDNES

BURY

LEIGH

WILMSLOW

OLDHAM

ROCHDALE

BOLTON

KNUTSFORD

ORMSKIRK

SKELMERSDALE

RUNCORN

BIRKENHEAD

M61

M61 M60

M62

M60

M60

M60

M56

M56

M56

M56

M56

M53

M53

M53

M6

M6

M6

M6

M6

M62

M62

M57

M58

M58

M62

M60

M61

M6

M66

A579 A580

A577A58

A49

A49

A57

A57

A49

A49

A49

A56

A50A56

A58

A57A57

A557A533

A533

A533

A533

A556

A556

A556

A49

A49 A54

A54A54

A41

A41

A41

A570

A570

A580

A580

A537

A565

A565

07

A57

M6

M6

M6

M6

M6

M62

M62

M62

M62

M62

M56

M56

M6

23

21A

21

20

9

10

10

9

A57

A5061

A50

A50

A49

A49

WarringtonWarrington

RETAIL WAREHOUSE PROVISION


Warrington’s retail warehouse provision (non food) extends to around 111,482 sq m (1.2m sq ft) comprising 3 main retail parks (including the subject property), the cockhedge Shopping Park which offers both in and out of town centre characteristics and a number of solus units including the iKEa and m&S ‘superstores’ at Gemini.

We have provided information on these elements below and

on the adjacent map and aerial photograph.

01 Gemini retail Park – Europa Boulevard, Wa5 7ty

Situated approximately 5 km (3.1 miles) to the north west

of the town centre, this location has established itself as the

premier out of town offer in Warrington. currently anchored

by a c. 13,935 sq m (200,000 sq ft) iKEa Superstore and

11,344 sq m (122,000 sq ft) marks & Spencer unit, with

additional retailers in the form of Boots, Next and toys r us,

we understand proposals are in place for an extension of the

existing Next offer together with refurbishment of both this

and the Boots unit.

02 alban retail Park – Hawleys Lane, Wa2 8tW

this retail park was originally constructed in the late 1980s

and extends to approximately 12,402 sq m (133,500 sq ft)

in 11 units including 3 stand alone pods. currently anchored

by a currys/Pc World megastore and retailers including

Halfords, Hobbycraft, mothercare and carpetright we

understand future plans for this scheme centre around the

introduction of a large food anchor.

03 DFS – vernon Street, Wa1 2HG

Positioned immediately adjacent to the subject property, the

store extends to around 2,034 sq m (21,900 sq ft).

04 DW Fitness – Bank Street, Wa1 2aS

Situated on the western side of mersey Street in close

proximity to the subject property, this former JJB Sports

Health & Fitness was originally developed in 1997 and

extends to around 2,379 sq m (25,600 sq ft) with parking

for approximately 120 cars.

05 B&Q Warehouse – Newton Street, Wa2 8rP

Developed in 1998 this store extends to approximately

9,996 sq m (107,600 sq ft) and is owned by B&Q.

additionally there is a c. 254 sq m (2,739 sq ft) Burger King

fast food unit.

06 Pinners Brow retail Park – Winwick road,

Wa2 7xa

Originally developed in 2000, this four unit scheme

extends to around 5,388 sq m (58,000 sq ft) and is let to

cS Lounge Suites, Storey carpets and Wickes with around

696 sq m (7,500 sq ft) in one unit currently vacant. Located

approximately 0.3 km (0.5 miles) to the north west of the

town centre.

07 cockhedge Shopping Park – cockhedge Way,

Wa1 2QQ

Effectively forming part of the town centre offer this

c. 25,548 sq m (275,000 sq ft) scheme was originally

developed in 1985. anchored by a c. 6,967 sq m

(75,000 sq ft) asda foodstore, there are around 40 units

ranging in size from 19 sq m (200 sq ft) to 2,322 sq m

(25,500 sq ft) and occupiers including Gala Bingo,

Superdrug, carpetright, comet and Wilkinson.

08 matalan – Winwick Street, Wa2 8Nu

Located just to the north of the tesco foodstore on Winwick

road, this unit extends to around 2,928 sq m (31,519 sq ft).

GEmiNi rEtaiL ParK

01

aLBaN rEtaiL ParK

02

05

01

03DFS

04DW FitNESS

06PiNNErS BrOW rEtaiL ParK

07cOcKHEDGE SHOPPiNG ParK

08mataLaN

05B&Q WarEHOuSE

08

A57

M6

M6

M6

M6

M6

M62

M62

M62

M62

M62

M56

M56

M6

23

21A

21

20

9

10

10

9

A57

A5061

A50

A50

A49

A49

WarringtonWarrington


tOWN cENtrE


n

S

01

02

05

03

02

05

03

04

04

06

08

0706

08

07

09

FROGHALL LANE A57

WIN

WIC

K R

OA

D

WILSON PATTEN STREET

M

ERSE

Y S

TR

EE

T

A

49

MA

NCHES

TE

R ROAD

MIDLAND WAY A57

A5061 KNUTSFORD ROAD A5 061

WILD

ER

SPOOL CAUSEW

AY

A574

CHURCH STREET

FARRELL S

TREET

A50

60

A49

CH

EST

ER

RO

AD

A57

WARRINGTON

WARRINGTONHOSPITAL

WARRINGTON CENTRAL

RAIL STATION

A49

PARKER STREET

A50

A50

A50

FROGHALL LANE A57

WIN

WIC

K R

OA

D

WILSON PATTEN STREET

M

ERSE

Y S

TR

EE

T

A

49

MA

NCHES

TE

R ROAD

MIDLAND WAY A57

A5061 KNUTSFORD ROAD A5 061

WILD

ER

SPOOL CAUSEW

AY

A574

CHURCH STREET

FARRELL S

TREET

A50

60

A49

CH

EST

ER

RO

AD

A57

WARRINGTON

WARRINGTONHOSPITAL

A49

PARKER STREET

A50

A50

A50

Riverside Retail Park

SITUATION


riverside retail Park is situated on the

southern edge of Warrington town centre,

on the eastern side of the a49 mersey

Street and on the northern bank of the

river mersey, adjacent to the bridge

roundabout junction of Wilson Pattern

Street, Knutsford road and mersey Street.

Bounded by the river mersey to the south,

predominantly residential and light commercial

uses to the east and north and a DFS Furniture

store immediately to the west, the property

benefits from excellent prominence to the main

arterial route into Warrington from the south in

the a49/a5060.

10

the subject property comprises a purpose built retail warehouse park totalling approximately 14,703 sq m (158,259 sq ft) arranged around forecourt parking for approximately 625 cars, providing a ratio of 1: 253 sq ft.

configured in what is effectively an L-shaped

terrace, the scheme is anchored at its western

end by a Diy store extending to c. 3,344 sq m

(35,998 sq ft) with garden centre, together

with 11 units within the terrace totalling around

10,732 sq m (115,517 sq ft) and two stand alone

restaurant units of 337.6 sq m (3,634 sq ft) and

289 sq m (3,110 sq ft) respectively, the latter being

a drive-thru. the site itself totals approximately

4.8 hectares (11.9 acres).

internally the units have been fitted out to

the respective corporate specification of the

occupiers and the eaves heights comfortably

allow the installation of mezzanine floors as

demonstrated by those currently in 8 of the

units on the park. We estimate the first floor

space extends to approximately 5,156 sq m

(55,500 sq ft).

Primary customer access is from the main

roundabout junction via Wharf Street, which also

runs along the southern boundary of the park and

links with the industrial estate to the east.

Segregated rear servicing facilities are available

for the Homebase unit and south facing portion of

the terrace via Parr Street and from Wharf Street

for the west facing portion of the terrace.

This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds.

DESCRIPTION


mer

sey

Str

eet

(a49)

Knutsford road (a5061)

Wharf Street

Gard

en

centr

eriver mersey

Parr Street

11

SERVICE CHARGE TENURE


TENANCIES

Service charge information is available on request. the property is held Freehold.

the property is let in accordance with the following schedule:

Unit Tenant Fascia giA sq ft

Mezz sq ft

Term (years)

Lease Start

Lease Expiry

next Review

Passing Rent £pa

Passing Rent £psf

Comments

1 Homebase Ltd Homebase 35,998 9,000 25 29.09.1996 28.09.2021 29.09.2011 £513,300 £14.26 2011 RR O/S

2 Sportsdirect.com Retail Ltd Sportsdirect.com 10,213 8,150 15 10.01.2005 24.03.2020 25.03.2015 £199,154 £19.50 Area stated in lease.

3 TJ Morris Ltd Home Bargains 12,602 15 14.05.2010 23.06.2025 24.06.2015 £164,000 £13.01 RR to OMV or 2% pa. Max rent at 1st

review £181,069 pa and 2nd review

£199,914 pa. Area stated in lease

4 Poundworld Retail Ltd Discount UK 12,618 12,600 10 11.02.2011 24.03.2021 25.03.2016 £182,961 £14.50 Area stated in lease. 1st review to OMV

but capped at £227,124 pa

5 Dreams plc Dreams 12,147 15 17.05.2010 23.06.2025 24.06.2015 £158,000 £13.01 Area stated in lease.

6 Opus Homewares Ltd B&M Homestore 10,100 25 29.09.1996 28.09.2021 29.09.2016 £171,700 £17.00

7 Pets at Home Ltd Pets at Home 8,176 2,045 25 29.09.1996 28.09.2021 29.09.2016 £138,992 £17.00

8 Sleepmasters plc Bedshed 7,093 3,500 25 29.09.1996 28.09.2021 29.09.2016 £120,377 £16.97

9 Laura Ashley Ltd Laura Ashley 10,284 25 29.09.1996 28.09.2021 29.09.2016 £175,000 £17.02

10 Kingsbury Furniture Stores Ltd Harveys 11,100 5,500 25 29.09.1996 28.09.2021 29.09.2016 £188,700 £17.00 Guarantor – Kingsbury Group plc

11 A Share & Sons Ltd SCS 11,109 5,500 22 24.12.1999 28.09.2021 24.12.2014 £188,800 £17.00 Guarantor – SCS Upholstery plc

12 Next Group plc Next 10,075 9,250 15 14.03.2005 24.03.2020 25.03.2015 £228,237 £22.65

13 Pizza Hut (UK) Ltd Pizza Hut 3,634 19 22.07.2002 28.09.2021 29.09.2012 £88,200 £24.27

14 McDonalds Restaurants Ltd McDonalds 3,110 21 29.09.2000 28.09.2021 29.09.2015 £84,000 £27.01

158,259 55,545 £2,601,421

12

COVENANT INFORMATION

Tenant Date for Accounts

Sales Turnover

Pre Tax Profits (Loss)

Total Current Assets

Delphi Rating

% of income

Homebase Ltd 26.02.201127.02.201028.02.2009

£1,457,903,000£1,477,990,000£1,420,013,000

£62,094,000£41,322,000

(£302,371,000)

£1,018,435,000£1,037,250,000£1,013,614,000

100 19.7%

Sportsdirect.com Retail Ltd

24.04.201125.04.201026.04.2009

£1,278,328,000£1,410,466,000£1,029,207,000

£116,578,000£42,329,000£37,674,000

£492,586,000£522,968,000£539,129,000

100 7.7%

TJ Morris Ltd 30.06.201130.06.201030.06.2009

£721,358,972£590,320,146£481,575,208

£59,453,270£59,453,270£42,619,880

£144,278,599£93,088,294£71,870,423

100 6.3%

Poundworld Retail Ltd 31.03.201131.03.201031.03.2009

£132,944,486£93,646,014£67,010,504

£5,231,668£1,182,497£1,361,338

£28,444,380£14,646,276£10,886,528

10 7.0%

Dreams plc 24.12.201024.12.200924.12.2008

£256,131,000£243,570,000£194,384,000

£4,433,000£17,900,000(£3,013,000)

£33,748,000£43,123,000£40,347,000

74 6.0%

opus Homewares Ltd 31.02.201031.12.200931.12.2008

£82,528,000£83,667,000£40,350,000

£5,811,000£6,233,000(£1,215,000)

£11,570,000£13,086,000£7,904,000

81 6.6%

Pets at Home Ltd 25.03.201026.03.200927.03.2008

£462,646,000£399,899,000£350,800,000

£68,853,000£58,377,000£53,653,000

£165,424,000£105,311,000£59,621,000

100 5.3%

Laura Ashley Ltd 29.01.201130.01.201030.01.2009

£278,716,000£262,278,000£254,279,000

£31,309,000£20,588,000£19,462,000

£247,852,000 £372,961,000 £238,922,000

100 6.7%

Steinhoff UK group Properties Ltd

25.06.201126.06.201027.06.2009

£84,387,000£112,284,000£92,634,000

£429,000(£7,968,000)(£2,960,000)

£34,640,000 £32,790,000 £29,356,000

100 12.0%

Kingsbury Furniture Stores Ltd & Kingsbury group Plc

A Share & Sons Ltd 31.07.201001.08.200927.07.2008

£194,158,000£166,863,000£188,125,000

£1,087,000(£6,587,000)(£8,369,000)

£44,358,000 £36,008,000 £39,645,000

10 7.2%

next group plc 29.01.201130.01.201024.01.2009

£188,400,000£182,800,000£175,000,000

£590,300,000£677,000,000£400,600,000

£2,313,500,000 £2,027,000,000 £2,080,030,000

100 8.9%

Pizza Hut (UK) Ltd 28.11.201029.11.200930.11.2008

£346,174,000£365,346,000£358,026,000

(£22,185,000)(£12,122,000)(£13,306,000)

£18,878,000 £20,129,000 £17,065,000

6 3.4%

McDonalds Restaurants Ltd

31.12.201031.12.200931.12.2008

£1,184,462,000£1,129,957,000£1,075,535,000

£157,211,000£114,048,000£77,743,000

£61,406,000 £64,099,000 £106,017,000

98 3.2%

We have set out below some recent account information together with the Delphi ratings for

the tenant and guarantors (where applicable). We would emphasise that 69.8% of the income

is secured against covenants ranked with a Delphi rating indicating ‘very low risk’ and indeed

76.4% of the income is rated ‘low risk’ or better.

PLANNING

Outline Planning consent was granted by

Warrington Borough council (app. No.

93/31125) on 7th February 1995 for:

‘…development of 18,600 sq ft (GFA) food retail, 4,500

sq ft (GFA) fast food outlet and 136,900 sq ft (GFA)

non food retail (excluding garden centre floor area)

with associated servicing, car parking and new access

road…..’

thereafter full planning permission (app. No. 96/35226)

was granted on 30th august 1996 for the ‘development

of restaurant/ fast food unit’ (mcDonalds).

On this basis we understand that the scheme has

an open a1 non food planning consent which allows

the sale of food from 18,600 sq ft of floorspace.

additionally there are no restrictions in relation to

minimum unit size and the restaurant pods have an

a3 consent.

copies of the relevant documents are available

on request.


13


ASSET MANAGEMENT OPPORTUNITIES

the scheme has seen significant asset

management activity in the last 18-24

months with lettings to Home Bargains,

Dreams and Discount uK indicating good

levels of tenant demand.

the underlying open a1 planning consent with

no minimum unit size restrictions and additional

specified food sales offer excellent flexibility for

further value add initiatives and we have identified a

number of these possibilities below:

n Settlement of the outstanding Homebase review

from September 2011.

n Development of a pod unit between the

Homebase and Sportsdirect.com units of

c. 1,750 sq ft – subject to planning (plan available

on request).

n introduction of food retailer to utilise available

consent with relocation/consolidation

of existing occupiers.

n introduction of further fashion/pharmaceutical

operators.

n acquisition of land adjacent to entrance of

the site, behind the Pizza Hut unit, to improve

configuration and parking arrangements.14

Offers are sought in the region of £35,000,000 subject to contract and exclusive of VAT, for the Freehold interest in this property. A purchase at this level would reflect an initial yield of 7.03%, based on purchasers costs of 5.80%.

PROPOSAL


additionally should an uplift be agreed on the outstanding

Homebase review from September 2011 a further top-up

payment from the Purchaser is expected by the vendor.

15

Misrepresentation Act 1967 and Property Misdescriptions Act

Cushman & Wakefield LLP for themselves and for vendors or lessors of this property whose agents they are, give notice that :

1 The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract.

2 No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property.

3 This property is offered subject to contract and, floor areas, measurements or distances given are approximate and unless otherwise stated, all rents are quoted exclusive of VAT.

4 Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order.

5 Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.

Riverside Retail Park | Warrington | February 2012 | Ref: 107246

PATRiCK KnAPMAn

t: 020 7152 5019

F: 020 7152 5190

E: [email protected]

ConTACT

JUSTin HoULiHAn

t: 020 7152 5670

F: 020 7152 5190

E: [email protected]

riverside retail park - completely...

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