well secured retail park investment opportunity

W E L L S E C U R E D R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T Y

B&M and ScS MARINERS WAY, PRESTON PR2 2YN

B&M and ScS, MARINERS WAY, PRESTON PR2 2YN

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INVESTMENT SUMMARY

The property is situated 1 mile west of Preston city centre and forms a part of the main retail warehouse pitch on the western side of the city.

The property occupies a prominent site of 3.05 acres immediately adjacent to a Morrisons foodstore and a McDonald’s drive-thru.

The B&M and ScS units are modern purpose-built retail warehouses comprising a total of 43,472 sq ft.

Both units incorporate mezzanine floors which are used for retailing.

There is parking for 205 cars showing an excellent ratio of 1:212 sq ft.

The property is held freehold.

The leases have a combined WAULT of 8 years without break.

The property produces a rent of £541,130 per annum, which reflects a very modest £12.45 psf overall.

100% of the income is secured against tenants with 5A2 D&B ratings.

Our client is seeking offers in excess of £6,140,000 (SIX MILLION ONE HUNDRED AND FORTY THOUSAND POUNDS), subject to contract and exclusive of the VAT, for their freehold interest in the property. A purchase at this price would show a yield of 8.25%, net of purchaser’s costs of 6.8%, and a very modest £141 psf capital value.

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The B&M and ScS units are modern purpose-built retail warehouses comprising a total of 43,472 sq ft


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LOCATIONThe city of Preston is located on the northern bank of the River Ribble in Lancashire, approximately 27 miles north west of Manchester and 27 miles north east of Liverpool. Preston is the administrative centre of Lancashire and was, in January 2021, named by PWC as the best city in which to live and work in the north west of England, ahead of both Manchester and Liverpool. Key indicators include job prospects, health, transport, income and housing.

Preston has excellent road connections. The M6 motorway is just 3½ miles east of the city centre, connecting with the M61 motorway 5 miles south of Preston, providing direct access to Manchester city centre. The M55 is 4 miles North of Preston which runs directly to the seaside resort of Blackpool.

By rail Preston is on the West Coast Main line and has a fastest journey time of 2 hours 16 minutes to London Euston. There are also direct services to Manchester (36 minutes) and Liverpool (44 minutes).

Manchester Airport is 40 miles south west and Liverpool John Lennon airport is 46 miles south of Preston so international air connections are also good.

Historically the city’s economy was dominated by the textile industry and it was a large port. Major employers now include BAE systems, Baxi, the Carphone Warehouse and Lancashire County Council. The English Football League is also based in Preston. In addition, the University of Central Lancashire has its main campus in Preston which has a student population of approximately 23,000.

Significant new housing development is currently occurring around the northern edge of the city. Over 1,000 new homes are being built on a series of sites by Story Homes, Redrow, Charles Church and Barratt Homes.

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The property is situated 1 mile west of Preston city centre and forms a part of the main retail warehouse pitch on the western side of the city.

PRESTON

LIVERPOOL

MANCHESTER

For indicative purposes only. Not to scale.

Blackpool

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SITUATIONThe B&M and ScS units are situated on a prominent site on the northern side of Mariners Way, which fronts Preston Marina basin. It is approximately 1 mile west of Preston city centre. The A583 is immediately to the north of the property which connects Preston to Lytham St Annes to the west.

Adjacent to the east of the property is a Morrisons foodstore and petrol filling station and a Halfords Autocentre and to the west is a McDonald’s drive-thru unit. Further to the east along Mariners Way is another cluster of retail warehousing where DFS, Halfords, Pets at Home, Bensons for Beds and Carpetright occupy units. Together this development forms the main out of town retail location on the western side of Preston.

Access to the B&M and ScS units is from both directions of Mariners Way.

DEMOGRAPHICSAccording to PROMIS the total population within Preston’s primary catchment area is 508,000 people with an estimated shopping population of 295,000 people.

The B&M and ScS stores themselves have a population of 207,924 within a 15 minute drive-time. This population is relatively young and is particularly high in the 16-24 year age range by comparison to the UK average.

Levels of home and car ownership are also above the UK average. The social grade of this population is broadly in line with UK averages, although the C1 social grade is above the UK average.

The 15 minute drive-time catchment has an annual total spend of £556 million on comparison goods (Store Point Geo).

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Port Way

Channel Way

Navigation Way

Egerton Road

Powis Road

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Portr Way

Talbot Road

Fishergate Hill

Mariners Way

A5072 Tulketh Road

A583 Watery Lane

A5072 W

est Strand

Corporation Street

A59

A59

A59

A583 Tulketh Brow

A59

Marina

River Ribble

PrestonPENWORTHAM GOLF CLUB

PRESTONSPORTS CLUBThe property occupies a prominent site

of 3.05 acres immediately adjacent to a Morrisons foodstore and a McDonald’s drive-thru.

B&M and ScS


McDonald’s

Preston City Centre v

Morrisons

Carpetright

Halfords Pets at Home

DFS Bensons for Beds

Halfords Auto Centre


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SITEThe property occupies a regular rectangular site of approximately 3.05 acres (1.232 hectares).

TENURE Freehold.

There is parking for 205 cars showing an excellent ratio of 1:212 sq ft.


DESCRIPTIONThe property is a modern purpose-built retail warehouse development comprising two in-line units which are let to B&M and ScS.

The B&M unit is 35,753 sq ft GIA at ground floor and has a mezzanine floor of 13,965 sq ft GIA. The majority of the mezzanine floorspace is used for retailing. It has a glazed entrance lobby and a glazed awning running along the front of the unit. Internally the B&M unit has an amenity block and there is a garden centre to the rear.

The ScS unit is 7,719 sq ft GIA at ground floor and has a mezzanine floor of 7,608 sq ft GIA, which is used for retail sales. The unit has a double height glazed frontage.

Both units are of an attractive design being brick-built to a level and composite cladding above. They are of a steel portal frame construction under pitched roofs.

Customer car parking is regularly laid out to the front of both units. In total there is parking for 205 cars, including 8 disabled spaces, showing an excellent ratio of 1:212 sq ft.

Both units are serviced from a secure yard located to the rear of the ScS unit, which is accessed separately to the customer car park.

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PLANNINGOutline planning for the redevelopment of the Preston Dock Estate was originally granted on 30th November 1982 (App No 006/82/0640) to include a mix of uses including residential, retail, general industry, recreation, offices and structural landscaping. In 1989 consent was granted for the development of what is now the B&M unit (App No 06/89/0170). This consent is for Open A1 (non-food) use although 5% of the gross unit floorspace can be used for ancillary restaurant food sales.

In 2004 consent was granted for the construction of the ScS unit (App No 06/2004/0077) which can be used for the sale of non-food, bulky durable goods and specifically furniture, floorcoverings, household textiles (not clothing) and bulky electrical goods. There is a specific restriction against the subdivision of the ScS unit.

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TENANCIES The property is well let to two sound covenants in B&M and ScS. B&M have just taken their unit, which was formerly let to Homebase, on a new 10 year lease without break. The previous occupier expressed interest to remain in the unit and there was other tenant interest, however, B&M were selected due to the strength of their covenant.

The property currently produces an income of £541,130 per annum reflecting £12.45 psf overall on the ground floor areas. The property has a WAULT of 8 years overall.

The schedule below sets out the tenancy details;

TENANT AREA (SQ FT) MEZZ AREA (SQ FT) ANNUAL RENT (PA) RENT (PSF) LEASE FROM TERM EXPIRY DATE BREAK COMMENT

B&M 35,753 13,965 £357,530 £10.00 27/01/2021 10 Yrs 26/01/2031 - B&M have 24 months at half rent which will be topped-up by the vendor.

ScS 7,719 7,608 £183,600 £23.79 29/09/2005 20 Yrs 28/09/2025 -

TOTAL 43,472 21,573 £541,130 £12.45


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INCOME SECURITY Both units are let to national multiple retailers and the income is very well secured.

B&M has a portfolio of 656 stores throughout the UK and employs approximately 30,000 staff. In 2020 B&M’s parent company, B&M European Value Retail, entered the FTSE 100.

ScS has a portfolio of 101 stores across the UK and employs over 1,500 people. Shares in ScS Group Plc, the parent company of A. Share and Sons Limited, are traded on the London Stock Exchange. Despite the COVID-19 pandemic, ScS have just released very positive interim results for the 6 months to 23 January 2021. Gross sales increased by 13.9%, revenue increased by 14.4% and gross profit increased by 16.8% against the same pre COVID-19 period to January 2020.

The schedule below sets out the most recent financial information on the tenants.

TENANT D&B RATING YEAR ENDING TURNOVER PRE TAX PROFIT

(LOSS) NET WORTH

B&M Retail Limited 5A2

28/03/2020

30/03/2019

31/03/2018

£3.15 bn

£2.80 bn

£2.63 bn

£262 m

£273 m

£236 m

£806 m

£754 m

£600 m

A. Share & Sons Limited 5A2

25/07/2020

27/07/2019

28/07/2018

£255 m

£317 m

£337 m

(£2.33 m)

£14.96 m

£13.99 m

£36.7 m

£49.2 m

£43.9 m

100% of the income is secured against tenants with 5A2 D&B ratings.

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VATThe property has been elected for VAT purposes. It is expected that the sale will be treated as a Transfer of a Going Concern (TOGC).

EPC Copies of the Energy Performance Certificates (EPC’s) are available upon request.

PURCHASE PRICEOur client is seeking offers in excess of £6,140,000 (SIX MILLION ONE HUNDRED AND FORTY THOUSAND POUNDS), subject to contract an exclusive of the VAT, for their freehold interest in the property.

A purchase at this price would show a yield of 8.25%, net of purchaser’s costs of 6.8%, and a very modest £141 psf capital value.

FURTHER INFORMATIONShould you require any further information on the property or wish to arrange an inspection, please do not hesitate to contact:

MISREPRESENTATION ACT 1967 AND DECLARATIONMessrs Staunton Whiteman LLP, for themselves and for the vendors of this property whose agents they are, give notice that:i) the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract:ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them:iii) no person in the employment of Staunton Whiteman LLP has any authority to make or give any representation or warranty in relation to this property.iv) Inordertocomplywithanti-moneylaunderingregulations,StauntonWhitemanLLPwillrequiretheidentificationof,andcertaininformationupon,thesuccessfulbidder.Insubmittinganoffer,biddersagreetoprovidesuchinformationwhenHeadsofTerms have been agreed.

Hamish [email protected] 07867 501430

Nick [email protected] 07961 300257

Staunton Whiteman LLP9-10 Savile RowLondon W1S 3PF

020 7287 2228

well secured retail park investment opportunity

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