western way retail park - cushman & wakefield st ed… · high wycombe ipswich braintree...

Western Way Retail Park

LONG DATED INCOME RETAIL PARK INVESTMENT OPPORTUNITY

Bury St Edmunds • IP33 3SP

Offers are sought in the region of

£11,480,000 (Eleven Million Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser’s costs of 6.71% this would reflect the following yield profile:

Initial Yield 5.00%

Guaranteed Uplift November 2022 5.25%



Investment Highlights• Bury St Edmunds is an attractive and growing market

town in West Suffolk, established as a dynamic retailing centre, with a current resident population of approximately 41,113 people. (Census 2011)

• The surrounding population is both affluent and mobile. CACI Ltd report a 15 minute catchment population of 57,352 people which increases to 92,525 people within 20 minutes.

• Western Way Retail Park comprises a newly redeveloped retail warehouse scheme configured in 2 units, providing approximately 5,501 sq m (59,220 sq ft) of attractive, well specified, flexible retail floorspace and parking for 200 vehicles.

• Fully let on FRI terms to 2 occupational tenants, the park produces a current annual rent of £612,375, reflecting low rents of £8.65 and £12.72 psf respectively.

• The income provides an increasingly rare long weighted average unexpired term in excess of 17 years.

• Secured to the excellent covenants of CDS (Superstores International) Ltd and B&M Retail Ltd - 49% of the income is subject to 5 yearly 2% pa compounded fixed increases.

• The property is held Freehold and benefits from a wide bulky goods planning consent.

2 Western Way Retail Park | Bury St Edmunds

THE SCHEME OFFERS A WEIGHTED TERM CERTAIN IN EXCESS OF 17 YEARS 49% OF THE INCOME IS SUBJECT TO 5 YEARLY 2% FIXED INCREASES

3Western Way Retail Park | Bury St Edmunds

A6

A6

A1

A5

A2

A12

A47

A43

A11

A10

A12

A14

A43

A14

A11

A43

A12

A41

A10

A33

A606

A605

A141

A140

A423A134

A131

A418

A127

A331

A1065

A14

A1(M)

A1(M)M1

M1

M1

M11

M11

M45

M6

M69

M2M26

M40

M40

M4

M3M25

M25

M20

M25

M11

Stevenage

Harlow

Luton

Bedford

Oxford

Milton Keynes

CambridgeNewmarket

Thetford

Corby

Peterborough

Northampton

Rugby

Southend-on-Sea

Margate

Brentwood

Basildon

Maidstone

Rochester

Basingstoke Guildford

Camberley

StainesReading

Slough

Watford

Amersham

HighWycombe

Ipswich

ColchesterBraintree

Chelmsford

Kings Lynn

Clacton-on-Sea

Norwich

Great Yarmouth

Lowestoft

Leicester

London

Coventry

Bury St Edmunds

Bury St Edmunds is an attractive and affluent market town which serves as both the retail and cultural centre for West Suffolk. Strategically situated located 47.6 km (29.6 miles) east of Cambridge and 70.2 km (43.6 miles) south west of Norwich, the town boasts excellent transport communications serving the surrounding population.

The A14 links to Cambridge and the M11 motorway to the west and Ipswich to the east. Additionally, the A134 provides access to Norwich in the north east via Thetford the A11.

A regular train service runs between Bury St Edmunds and both London Liverpool Street and London Kings Cross, with a travel time of just under 2 hours.

Location

Cambridge

Colchester

Ipswich

Norwich

29.6 miles47.6 kilometres

51 kilometres

44.7 kilometres

70.2 kilometres 43.6 miles

31.9 miles

27.8 miles

Distances to Towns

North


A10

A11

A11

A10

A14

A140

A134

A134

A1066

M11

M11

Thetford

March

Saffron Walden

Newmarket

Ely

Stowmarket

Westhorpe

Sudbury

Mildenhall

Cambridge

Peterborough

Ipswich

Bury St Edmunds

We have identified CACI Ltd drivetime catchment population figures for the property below:

The catchment boasts an affluent and mobile demographic as demonstrated by the CACI Ltd numbers below, from the 20 minute drivetime catchment:

ACORN Type Description Group Bury St Edmunds UK

Affluent Achievers 24.1% 21.5%

Asset Rich Families 4.2% 2.5%

Career Climbers 7.7% 6.1%

Wealthy countryside commuters 3.2% 2.3%

Successful Suburbs 7.3% 5.9%

Socio Economic Profile

UK Average 32.5% 63%

10 min Drive Time 32% 64.1%

15 min Drive Time 38.3% 66.1%

20 min Drive Time 41% 64.7%

10 min Drive Time

15 min Drive Time

20 min Drive Time

Car Ownership, two cars or more (%)

Household Ownership (%)

41,137 people

57,352 people

92,525 people

20 Minutes

15 Minutes

10 Minutes

Drive Time Key


A1101

A1101

A134

A134

A134

A134

A14

A14 A14

A14

A14

A143

A143

A143

A143

A143

A1302

A1302

Bury St Edmunds

Bury St Edmunds

Western WayRetail Park

Western Way Retail Park is situated approximately 2.25 km (1.4 miles) west of the town centre, to the south of the A14 Dual Carriageway and adjacent to a 6,967 sq m (75,000 sq ft) Asda superstore and petrol filling station.

The surrounding area predominantly comprises retail, trade counter, light industrial and residential uses. West Suffolk College (the University of Suffolk) is found a short distance to the east, towards the town centre, and boasts a student population of over 10,000.

Access to Bury St Edmunds town centre is provided by both the A1302 to the south and the A14 to the north.

Situation

“ THE COMBINATION OF THE SUBJECT PROPERTY AND THE ADJACENT ASDA REPRESENT THE DOMINANT RETAIL OFFER TO THE WEST OF THE TOWN CENTRE”

North


A1302

Western Way

North

A14

West Suffolk College

Skatepark

A14

Town Centre

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

Arc Shopping Centre

West Suffolk Council HQ


A1101

A1101

A134

A134

A134

A134

A14

A14

A14

A14

A143

A143

A143

A1302

A1302

Bury St Edmunds

Bury St Edmunds

Western WayRetail Park

4

67

32

11

89

5

1

10

Bury St Edmunds boasts a well-balanced out of town retail provision, as demonstrated by the development of the subject property and levels of competition from occupiers for the space available. The existing provision has enjoyed established and profitable levels of trading for the retailers which explains the low levels of vacancy.

We have identified the main components of the out of town provision on the map below:

Robert Boby Way Retail Park (Robert Boby Way, Bury St Edmunds, IP33 3DH)

Positioned just to the west of the town centre, the park extends to around 2824.3 sq m (30,400 sq ft) in 3 units with tenants including Halfords and TK Maxx along with one vacant unit. Current passing rents are in the order of £11.00 psf.

St Edmundsbury Retail Park Phase I (Easlea Road, Bury St Edmunds, IP32 7BT)

To the south east of the town centre, St Edmundsbury Retail Park extends to around 9,253 sq m (99,600 sq ft). Having opened in 1990, today tenants include Dunelm, Pets at Home and Homebase. It is notable that this Homebase store is not on the identified closure list recently released.

St Edmundsbury Retail Park Phase II (Easlea Road, Bury St Edmunds, IP32 7BT)

Adjacent to Phase 2, St Edmundsbury Retail Park Phase II is extends to 2,224.8 sq m (23,948 sq ft) with tenants including Currys/PC World and Home Bargains. Opened in 1994, the scheme benefits from a Bulky Goods planning consent.

Out of Town Retail Provision3

6 Sainsbury’s SuperstoreBedingfield Way, IP32 7EJ – 82,798 sq ft

9 B&Q43-48 Risbygate Street, IP33 3AA – 39,905 sq ft

1

7 MatalanEaslea Rd, IP32 7BY – 31,000 sq ft

10 DFSEaslea Rd, IP32 7BY – 20,000 sq ft

4 Asda SuperstoreWestern Way, IP33 3SP – 25,534 sq ft

2

8 AldiDettingen Way, IP33 3TU – 16,500 sq ft

11 WaitroseRobert Boby Way, IP33 3DH – 21,104 sq ft

5 Tesco SuperstoreSt Saviours Interchange, IP32 7JS – 32,475 sq ft

North


Olding Road

Garden Centre

Western Way

The subject property provides approximately 5,501 sq m (59,220 sq ft) of purpose built retail warehouse ground floor accommodation. The west facing terrace comprises 2 units, together with outdoor garden centre, with parking for 200 vehicles (including staff spaces).

Internally the units have been fitted out by each of the tenants to their own individual corporate specification. 6m (19.7 ft) eaves heights allow the installation of mezzanines in both units – currently only The Range have first floor retail space however, which includes a café facility.

Customer access is via a roundabout junction on Western Way, whilst segregated rear servicing is available to both units from Olding Road. Staff parking spaces are included within the service yard.

Description

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

PFS

North

North


Unit Tenant Trading Fascia GIA (sq ft)

MEZZ (sq ft)

Term (Yrs)

Lease Start

Lease Expiry

Next RR Date

Passing Rent (£ pa)

Passing Rent (£ psf)

Comments

1 CDS (Superstores International) Ltd

The Range 34,660 19,375 20 27/11/2017 26/11/2037 27/11/2022 £300,000 £8.66 5 yearly reviews - reflecting fixed increases to 2% pa compound

2 B&M Retail Ltd B&M 24,560 - 15 05/03/2018 04/03/2033 05/03/2023 £312,375 £12.72 5 yrly upward only OMV reviews. Subject to a cap at each review of 112% of previous passing rent

59,220 19,375 £612,375

The scheme is let in its entirety on Fully Repairing and Insuring terms to two occupational tenants producing a total annual income of £612,375 pa, as detailed in accordance with the schedule below:

Tenancies

As part of the development full remediation of the site was undertaken and signed off by the planning authority. All reports are available upon request.

Environmental Considerations

The property is held Freehold.

TenureWestern Way Retail Park Income Split

The RangeB&M

51% 49%


Full planning consent was granted by St Edmundsbury Council on the 13 December 2016.

The consent provides for wide bulky goods sales with further specific relaxations and we have identified these in more details below:

Unit 1 – The Range Shall only be used for the sale of:

Carpets and floor coverings, household goods and furnishings, furniture and electrical goods and for the sale of DIY maintenance and improvement products for the home, garden and car; camping and bulky leisure goods; and for a maximum of 30% of the floorspace (including the external sales area) for the sale of, hobbies and craft supplies, office supplies, pet food and pet products, Christmas trees and decorations, fireworks and rockets; and ancillary product ranges to all the goods listed above and for use as a café and for no other purpose within Class A1.

Unit 2 – B&M Shall be used for Class A1 purposes only subject to the following conditions/restrictions:

No part of the floorspace can be used for the sale of fashion clothing, footwear, watches and jewellery.

• No more than 1,130 sqm (12,163 sq ft) of the net sales area shall be used for the sale of convenience goods.

• No more than 300 sqm (3,229 sq ft) of the net sales area shall be used for the sale of health and beauty products, pharmaceutical and personal products

• No more than 200 sqm (2,153 sq ft) of the net sales area shall be used for the sale of non-fashion clothing and non-fashion footwear (including sportswear, nightwear, underwear, workman/DIY clothing).

Copies of this document are available on request.

PlanningEnergy Performance Certificates have been produced for the units. The ratings are identified below:

Unit 1

Rating A (22)

Unit 2

A (25)

EPCs

“ THE FRI INCOME PROFILE DELIVERS A WEIGHTED UNEXPIRED TERM IN EXCESS OF 17 YEARS ”


B&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below:

In February 2015, parent company B&M European Value Retail S.A entered the FSTE 250 for the first time, after a 12% share sell off.

Year to Date Turnover Pre-Tax Profit

Tangible Net Worth

D&B Rating

Mar-18 £2,629,145,000 £236,006,000 £600,542,000

5 A1Mar-17 £2,252,265,000 £198,006,000 £498,412,000

Mar-16 £1,902,557,000 £168,121,000 £440,372,000

B&M Retail Limited Company No: 01357507

Covenant Information

Parent Company: B&M European Value Retail S.A

• In preliminary results announced in March 2018 – B&M European Value Retail S.A stated that sales were up 22.4% to £2,976.3m (2017: £2,430.7m)

• Group profit before tax increased by 25.4% to £229.3 million during the same period.

• UK B&M store fascia Adjusted EBITDA growth of 17.2% to £261.7m (2017: £223.2m), with a 29bps increase in margin to 10.2% of revenue.

• UK B&M store fascia Like-for-Like revenue growth of 4.7% for the year.

• Group Adjusted Profit Before Tax increased by 16.5% to £221.5m (2017: £190.2m), diluted earnings per share 18.6p (2017: £14.3p).

• 47 new B&M UK stores opened in the period and at least a further 45 new stores are planned for this financial year as “we benefit from the availability of attractive new store opportunities”.

“B&M HAS DELIVERED ANOTHER SET OF STRONG RESULTS BY DOING WHAT WE DO BEST, WHICH IS PROVIDING GREAT VALUE WEEK-IN, WEEK-OUT ON THE THINGS CUSTOMERS BUY REGULARLY FOR THEIR HOMES AND FAMILIES. NONE OF OUR SUCCESS COULD HAVE BEEN ACHIEVED WITHOUT THE HARD WORK AND DEDICATION OF THE THOUSANDS OF B&M COLLEAGUES ACROSS THE GROUP AND ON BEHALF OF THE BOARD I WOULD LIKE TO THANK THEM FOR ALL THEIR EFFORTS.

THE B&M MODEL IS HIGHLY RELEVANT FOR THE CURRENT DIFFICULT ECONOMIC ENVIRONMENT, WITH ITS STRONG POSITION IN THE VALUE AND CONVENIENCE AREAS OF RETAILING WHERE PHYSICAL STORES ARE WIN-NING. THE BUSINESS IS WELL PLACED FOR CONTINUED PROFITABLE, LONG-TERM GROWTH. IN A RETAIL SECTOR BESET BY STRUCTURAL CHALLENGES B&M’S UNIQUE, DISRUPTIVE MODEL STANDS OUT AS A SUCCESS STORY.”

SIMON ARORA, CHIEF EXECUTIVEMAY 2018


CDS (Superstores International) Ltd trading as “The Range” is now the fastest growing retailer in the UK. With over 140 stores nationwide, they stock more than 65,000 products across 16 different departments, from Homewares and Furniture to DIY and Art Supplies.

In August 2018, The Range announced an agreement with Iceland to allow the sale of Iceland’s food products in its stores- creating a ‘one stop shop’ for customers.

A summary of the latest accounts are shown below:

The most recent accounts submitted reveal that turnover in the 12 months to 29th January 2017 increased 13% to £761.3m from £674.m in 2015/16. Pre-tax profit increased 18% from £57m the previous year to £67.5m last year. During the trading period, the retailer opened 16 new stores, including a store in Limerick, Ireland in August 2016.

Year to Date Turnover Pre-Tax Profit

Tangible Net Worth

D&B Rating

Jan-17 £761,287,000 £67,543,000 £144,727,000

5A1Jan-16 £674,203,000 £57,032,000 £190,245,000

Jan-15 £565,064,000 £57,299,000 £166,972,000

CDS (Superstores International) Limited Company No: 02699203

“GROSS PROFIT INCREASED BY 10 PERCENT AS A RESULT OF THE INCREASE IN TURNOVER, ACHIEVED BY INCREASING THE TURNOVER IN EXISTING STORES AND INCREASING THE NUMBER OF TRADING STORES BUT MAINTAINING THE LEVEL OF FIXED COSTS. THE GROUP IS OPTIMISTIC ABOUT THE FUTURE GIVEN THE CONTINUED GROWTH AND ASSOCIATED ECONOMIES AS WELL AS THE STRENGTH OF THE CONCEPT”.

A STATEMENT FROM THE DIRECTORSJANUARY 2017

“ PRE-TAX PROFIT INCREASED 18% IN THE FINANCIAL YEAR TO 29 JANUARY 2017”


A RARE OPPORTUNITY TO ACQUIRE A NEWLY DEVELOPED RETAIL PARK DELIVERING DEFENSIVE LONG DATED INCOME FROM MARKET LEADING TENANTS WITH THE BENEFIT OF FIXED INCREASES


The property has been elected for VAT and it is anticipated that the transaction will be treated as the Transfer of a Going Concern.

VAT

Offers are sought in the region of

£11,480,000 (Eleven Million Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser’s costs of 6.71% this would reflect the following yield profile:

Initial Yield 5.00%




Proposal


Disclaimer

Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they are, give notice that: (1) The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract. (2) No person in the employment of the agents 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, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing within this information should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (September 2018)

JN 16372.001 / Bury St Edmunds Retail Park

Tamsin LaytonT: 020 7152 5158M: 07903 054 706E: [email protected]

Justin HoulihanT: 020 7152 5670M: 07855 792 294E: [email protected]

ContactsFor further information please contact:

western way retail park - cushman & wakefield st ed… · high wycombe ipswich braintree...

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