wilkinson williamsn - bretton centre peterborough · peterborough peterborough boulevard retail...

CENTREBRETTON

ENTER

Home InvestmentConsiderations

INVESTMENT CONSIDERATIONSn Peterborough is the largest city in Cambridgeshire and

as such is a dominant retailing location, benefiting from an extensive catchment area.

n The city ranks 20th out of the top 200 PMA Retail Centres in terms of retail spend and total in-store retail expenditure.

n The Bretton Centre is strategically located in close proximity to the A47, the main road through the city.

n The property is a dominant scheme totalling 129,282 sq ft, anchored by Sainsbury’s, with other retailers including Boots, Sports Direct, Pets at Home, Laura Ashley, Poundland and Costa.

n The scheme offers a unique tenant mix, including Sainsbury’s and a number of smaller occupiers, who with the adjacent occupiers of Iceland and Aldi, make it a popular convenience lead retail destination.

n Well let with over 83% of the income comprising 5A1 D&B rated tenants.

n Total income of £1,465,305 per annum, equating to a low average rent of £23.53 per sq ft for a scheme of this calibre.

n Open A1 planning consent including food.

n The scheme trades well, as evidenced by retailers renewing their leases, most recently Boots.

n There are significant asset management opportunities, including several lease regears.

n We are instructed to seek offers in excess of £18,935,000 (Eighteen Million, Nine Hundred and Thirty Five Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 7.25% (assuming purchaser’s costs at 6.74%).

BRETTON CENTRE BACK | NEXT

Location Catchment & Demographics

Retail Warehousing& Situation Aerial Description Site Plan Tenure &

Planning Tenancy EPC, VAT, Proposal & Contacts

Tenants’ Covenants

Asset Management

LOCATIONPeterborough is the largest city in the county of Cambridgeshire, situated approximately 85 miles north of London, 35 miles north west of Cambridge, 41 miles east of Leicester and 43 miles north east of Northampton.

The city is easily accessed via Junction 18 of the A1 (M), which connects to London to the south and Leeds to the north.

By rail, Peterborough is a major stop on the East Coast Main Line, with a fastest journey time of approximately 40 minutes into London King’s Cross, making it an attractive place to live for commuters.

East Midlands Airport is 60 miles north west of the city and London Luton Airport is 61 miles south, both providing flights to a large number of national and international destinations.

M1

M1

M1

A1(M)

A1

A1

A1 A14

A14

A15

A47

A47

A14M6

Littleport

Waterbeach

Oundle

Holbeach

Bourne

Oakham

UppinghamOadby

Blaby

ChatterisSawtry

Whittlesey

GodmanchesterBrampton

Rothwell

Newmarket

Ely

King's Lynn

Stamford Market Deeping

Yaxley

Melton Mowbray

Wisbech

DownhamMarket

Spalding

March

Loughborough

St Ives

Huntingdon

St Neots

Rushden

Kettering

Wellingborough

MarketHarborough

Wigston

Daventry

Coalville

CAMBRIDGE

Corby

PETERBOROUGH

NORTHAMPTON

LeamingtonSpa

Rugby

Hinckley

LEICESTER

Home InvestmentConsiderations Location


Catchment & Demographics




Asset Management

Peterborough’s primary catchment population is significantly above average at 716,000 people, which spans north into Lincolnshire, encompassing a number of small towns such as Spalding, Stamford and Market Deeping. Peterborough’s catchment borders those of Corby and Leicester to the west, King’s Lynn to the north east and Cambridge to the south-east. CACI calculate there are 125,427 people living within a 10 minute drive time of the subject property, increasing to 238,569 people within a 20 minute drive time.

The estimated shopping population of Peterborough is 322,000 people, ranking the city 30th out of the top 200 PMA Retail Centres. Given the city’s distance from other large retail centres, a high proportion of the total available retail spend is likely to be retained. In addition, Peterborough draws trade from beyond its

primary catchment area, particularly from small towns and villages to the north and east. Total in-store comparison retail expenditure was £1.861 million in 2016 in Peterborough compared with the PMA average of £947 million and ranking the city 20th by PMA.

Peterborough also boasts a number of tourist attractions, including a Norman cathedral in the heart of the central shopping area. Visit England estimates that 330,000 domestic day visitors and 770,000 overnight visitors came to Peterborough in 2014, spending around £38 million.

A1(M)

PeterboroughPeterborough

WhittleseyWhittlesey

EyeEye

CrowlandCrowlandMarket DeepingMarket Deeping

StamfordStamford

WitteringWittering

OundleOundle

YaxleyYaxley

A605

A47

A16A15

A1

A1

A1

A606

A43

A43

A427

A605

A6121

A47

A47

A15A1175

A1175

A612120 mins20 mins

Drive Time KeyDrive Time Key

10 mins10 mins

Home InvestmentConsiderations Location Catchment &

Demographics





Asset Management

CATCHMENT & DEMOGRAPHICS

Peterborough is an established and dominant retail warehousing destination, with shoppers travelling from a wide area to shop here. The subject property provides a different offer to the majority of the retail parks in Peterborough; with the benefit of Sainsbury’s anchoring the scheme, and many smaller local operators, it provides a convenience based offer, as well as having the national footfall drawing operators such as Sports Direct, Boots, Laura Ashley and Pets at Home.

SITUATIONThe Bretton Centre is situated on the western fringe of the city, approximately 2 miles to the north of Peterborough city centre. It lies between Soke Parkway (A47) and Bretton Way, the city’s prime ring road running through the city, which services North Bretton from Soke Parkway. As a result, the scheme is easily accessible.

The scheme benefits from extensive frontage to Bretton Way, as well as frontage onto Flaxland Road and Rightwell East, on which a local bus service runs to the park, and also providing servicing access to the scheme.

Adjacent to the scheme is a standalone Iceland unit, which can be accessed via the scheme, adjacent to the Laura Ashley unit. On the opposite side of the scheme, fronting Flaxland Road, is a new, standalone Aldi store. A number of office and retail units are also opposite the scheme.

The Cresset Centre links to the subject property and houses a church and local library.

The scheme is popular with shoppers, with many arriving by car, but the local bus also proves a popular method of transport to the park, with the bus stop situated close to the Domino’s and Carphone Warehouse units.

A1(M)

A1

A113

9 FR

ANK PE

RKIN

S PA

RKW

AY

A1139 FLETTON PARKWAY

A1139 FLETTON PARKWAY

A15 PASTON PARKWAY

A47 SOKE PARKWAY

A47 SOKE

PAR

KWAY

NENE PARKWAY

RRINGTON PARKWAY

LINCOLN ROAD

Brotherhood Shopping Park155,000 sq ft Tenants include: Marks & Spencer,TK Maxx, Poundland, Next, Tapi,Hobbycraft, Outfit, H&M,Harveys, Oak Furnitureland,

Serpentine Green Shopping Park319,000 sq ftTenants include: Tesco, H&M, Next,M&S Simply Food, River Island, GameNew Look, Toys R Us, Clarks, Outfit, Mothercare

PeterboroughP E T E R B O R O U G H

Boulevard Retail Park124,000 sq ftTenants include: Dreams, Dunelm Currys/PC World, Office Outlet,Carpetright, Furniture Village, DFS

Boongate Retail Park85,000 sq ftTenants include : B&MThe Range, Smyths Toys

BRETTON CENTRE

Maskew Avenue Retail Park145,000 sq ftTenants include: B&Q,Argos, Matalan

A47

SOKE

PAR

KWAY

A47

BRET

TON

WAY

BRETTON

WAY

BRETTON

WAY

BRETTON GATEBRETTON GATE

RIGHTWELL EAST

FLAX

LAN

D

FLAXLAND

RIGH

TWELL W

HARTWELL WAY

HAR

TWEL

L W

AY

16JCT

BRETTONCENTRE


DemographicsRetail Warehousing

& Situation


Aerial Description Site Plan Tenure &Planning Tenancy EPC, VAT, Proposal

& ContactsTenants’

CovenantsAsset

Management

RETAIL WAREHOUSING IN PETERBOROUGH




& Situation Aerial Description Site Plan Tenure &Planning Tenancy EPC, VAT, Proposal


CovenantsAsset

Management

DESCRIPTIONThe Bretton Centre totals 129,292 sq ft of predominantly retail accommodation arranged as 2 inward facing terraces, with a smaller terrace, creating a ‘U’ shape around a central car park. Sainsbury’s anchor the scheme in a 67,000 sq ft unit, with Boots and Laura Ashley adjacent creating the first terrace; the opposite terrace is occupied by Pets at Home, Poundland, Sports Direct, Peacocks and Costa.

The scheme then benefits from having a number of smaller units including a hairdresser, newsagent, Coral betting shop, fish and chip shop and a Chinese takeaway. Some of these border The Cresset Centre, a mixed use community facility incorporating a number of local tenants, a church and a library. Between the two main terraces are 2 units occupied by Carphone Warehouse and Domino’s Pizza.

The tenant mix provided for on the scheme creates a strong draw for a wide range of shoppers and contributes to the scheme’s trading success.

Internally, all of the units are fitted out to the individual tenants’ specifications. The Sainsbury’s has a café, and there is a large range of retailers selling food, including Costa, Domino’s Pizza and Ho’s Garden Chinese takeaway, all helping to increase dwell time and attract footfall.

Servicing is to the rear of the units with service vehicles accessing the Sainsbury’s, Boots and Laura Ashley units via Flaxland Road. Access to the rear service yard for the remainder of the scheme is via the customer car park. The car park provides approximately 844 spaces giving a ratio of 1 : 153 sq ft.

Opposite the scheme is Roundhead Public House, a vacant pub, which forms part of the subject property and benefits from having an adjacent car park. This could potentially be redeveloped for an alternative use in the future.






CovenantsAsset

Management

BRETTON WAY

FLA

XLA

ND

Fryz Fish & Chips

BUS STOP

WNG Solicitors

The Hair Gallery

Ho’s Garden






CovenantsAsset

Management

22.7m

TCB

Library

The Cresset

Stirling House

Holy Spirit

The Churchof the

El Sub Sta

Fusion House

Def

Boro Const BdyCo Const & Ward Bdy

Pond

22.3m

21.6m

22.5m

21.9m

TCB

PathWAY

BRETTON

FLAXLAND

Busway

Sub StaEl

Car Park

ESS

El

Car Park

Sub Sta

Police

HealthCentre

Station

Gas

Bank

Governor

PH

Tank

El Sub Sta

4

8

E3b

9

Shelter

Subway

Scout HQ

0m 25m 50m 75m

TENUREThe scheme comprises the areas shown edged red and dark blue on the plan below. Almost all of the scheme is freehold, as edged in red. The area edged in dark blue is held on 125 year leases that commenced in 2002.

The Sainsbury’s unit has been let to Sainsbury Propco A Limited on a 125 year lease and their demise is shown below in green.

Further details are available on request.

PLANNINGPlanning was granted for the property in 2005 which was revised in 2008 for the development of 7 new retail units, including 6 mezzanine floors, the retention and refurbishment of 5,780 sq ft of Class A1 retail floor space and 1,055 sq ft of Class A3 restaurant/cafe floor space and associated works.

There were no restrictions attached to the consent with regard to the goods allowed to be sold, and therefore the park has a fully open consent, including food. No restrictions were attached to unit sizes.

There is a landlord’s restrictive covenant in favour of Sainsbury’s, which prevents other units being used as a retail store principally for the sale of food and drink (excluding A3 use).

Further details are available on request.






CovenantsAsset

Management

Plan is for illustration purposes only

TENANCYThe property is well let on full repairing and insuring leases as follows:

Unit Tenant Name GIA (sq ft)

Lease Start

Lease Term

Expiry Date

Break Date

Next Rent Review

Rent (per annum)

Rent (per sq ft)

Comments

3 Sainsbury Propco A Ltd 67,000 15/09/2003 125 14/09/2128 £0 £0.00 Let on a 125 year lease.

2 Boots UK Ltd 8,205 05/02/2002 25 04/02/2027 04/02/2022 £156,000 £19.01 Lease renewed from 05/03/2017 for 10 years. The rent increased from £150,000 pa to £156,000 pa.

1 Laura Ashley Ltd 5,856 18/12/2007 10 17/12/2017 - £145,661 £24.87

21b Pets at Home Ltd 4,700 07/10/2013 15 06/10/2028 06/10/2023 07/10/2018 £105,179 £22.38

21a Poundland Ltd 5,377 07/10/2013 10 06/10/2023 07/10/2018 £153,216 £28.49

19&20 Sportsdirect.com Retail Ltd 10,814 15/05/2007 15 14/05/2022 15/05/2017 £374,500 £34.63

18 Peacocks Stores Ltd 7,500 25/04/2008 10 24/04/2018 - £191,027 £25.47

17 Costa Ltd 2,000 27/02/2012 10 26/02/2022 26/02/2018 27/02/2017 £50,000 £25.00

4 The Carphone Warehouse Ltd 1,500 06/03/2006 15 05/03/2021 06/03/2016 £35,000 £30.00 Rent review outstanding.

5 DP Realty Ltd t/a Domino’s 900 04/04/2008 20 03/04/2028 04/04/2018 £25,200 £28.00

10 Iwona Fraszczak t/a The Hair Gallery 600 09/01/2016 5 08/01/2021 - £10,000 £16.67

11 Guo Cai He t/a Ho’s Garden (Chinese Takeaway)

391 02/02/1996 35 01/02/2031 02/02/2021 £8,250 £21.10 Lease currently being renewed for a new 15 year lease from 02/02/16. Tenant currently holding over.*

12 Stephen Green, Christopher Waller, Timothy Needham, Martin Trayfordt/a Waller Needham Green Solicitors

491 01/01/1996 10 31/12/2005 - £5,000 £10.18 Office. Tenants are holding over having been in occupation since 1996.

14&15 Martin McColl Ltd 2,626 14/03/2006 15 13/03/2021 14/03/2016 £57,772 £22.00

16 Age UK 1,480 09/03/2006 20 08/03/2026 08/03/2021 09/03/2021 £32,500 £20.95 Lease being renewed for a new 10 year lease from 09/03/2016 at an increased rent of £32,500 pa from £31,000 pa. Tenant currently holding over.*

6 Robert A Brownlee & Caroline Elizabeth Brownlee t/a Fryz Fish & Chips

750 23/12/2005 25 22/12/2030 23/12/2020 £15,000 £20.00 New reversionary lease from and including 23 December 2020 for 10 years.

7 Coral Racing Ltd 1,533 15/02/2013 10 14/02/2023 15/02/2018 £32,500 £21.20

8&9 Sportswift Ltd t/a Card Factory 1,750 08/05/2014 5 07/05/2019 - £38,500 £22.00

Punch Partnerships (PTL) Ltd 5,810 01/04/1975 99 31/03/2074 01/04/2017 £30,000 £5.16

TOTAL 129,282 £1,465,305 £23.50* Deals are currently in solicitors hands




& Situation Aerial Description Site Plan Tenure &Planning Tenancy Tenants’

CovenantsAsset

ManagementEPC, VAT, Proposal

& Contacts

5A1 Rating

4A1 Rating

Other

Not Applicable

83%

10.5%

3% 3%

TENANTS’ COVENANTSOver 91% of the income secured against ‘5A1’ strength covenants, as rated by Dun & Bradstreet. We set out here the most recent company accounts for each tenant:

Unit Tenant Year Ending Sales Turnover(000’s)

Pre-Tax Profit (000’s)

Net Worth(000’s)

D&B Rating

1 Laura Ashley Ltd 30/06/16 31/01/15

£384,974 £295,764

£25,820 £22,364

£117,935 £109,562 5A1

2 Boots UK Ltd 31/08/15 31/03/14

£9,198,000£6,340,000

£542,000£507,000

£367,000£456,000 5A1

21b Pets at Home Ltd 31/03/16 26/03/15

£739,726 £689,697

£81,843 £79,920

£598,310 £517,138 5A1

21a Poundland Ltd 27/03/16 29/03/15

£1,214,818 £1,111,526

£34,653 £45,922

£20,520 £93,866 4A1

19 & 20 Sports Direct International PLC 26/04/16 26/04/15

£2,904,325 £2,832,560

£361,807 £313,446

£1,177,825 £908,997 5A1

18 Peacocks Stores Ltd 27/02/16 28/02/15

£369,711 £351,680

£67,879 £67,042

£141,072 £135,268 5A1

17 Costa Ltd 03/03/16 26/02/15

£835,037 £735,974

£117,498 £127,221

£542,180 £444,814 5A1

4 The Carphone Warehouse Ltd 30/04/16 02/05/15

£2,104,671 £2,056,123

£86,056 £77,146

£1,029,021 £1,007,570 1A!1

5 DP Realty Ltd 27/12/15 28/12/14

£18,964 £18,141

£688 £527

£923 £450 1A1

10 The Hair Gallery (I Fraszczak) – – – – O2

11 Mr Guo Cai He – – – – –

12 Waller Needham & Green – – – – O2

14 & 15 Martin McColl Ltd 29/11/15 30/11/14

£489,336£462,850

£22,229£27,947

£91,307£80,309 5A1

16 Age UK 31/03/16 31/0315

£86,432 £90,103

£5,635 £5,393

£41,973 £29,785 5A1

6 Robert A Brownlee & Caroline Elizabeth West – – – – –

7 Coral Racing Ltd 26/09/1527/09/14

£667,786£668,107

£81,106£56,703

£264,149£153,383 5A1

9 Sportswift Ltd 31/01/16 31/01/15

£362,226 £336,676

£92,210 £62,320

£58,862 £58,862 5A1

Punch Partnerships (PTL) Ltd 22/08/16 23/08/15 – – £2

£2 H4





CovenantsAsset


& Contacts

ASSET MANAGEMENTThe property benefits from being well let and has the benefit of an unrestricted open A1 planning consent.

The landlord has implemented a number of asset management initiatives, including:

n Regearing the lease with Boots, extending their term for a further 10 years from their existing lease expiry at an increased rent of £156,000 per annum in return for 3 months’ rent free.

n Removing the April 2018 break from the Domino’s lease in return for 9 months’ rent free.

n Age UK are renewing their lease for a further 5 years, in exchange for 3 months’ rent free.

There remain a number of asset management strategies which could be executed by a future purchaser to enhance the scheme, extend the WAULT, and improve value including:

n Costa have a break in February 2018 and, from inspecting the scheme, it is clear to see they trade well here and therefore would be unlikely to exercise their break.

n Laura Ashley have a lease expiry in December 2017.

They have indicated that they trade well from this unit and would like to remain in occupation. A regear could therefore be negotiated with them.

n Peacocks have a lease expiry in April 2018 and a

regear could also be negotiated with them.

n There is a vacant pub with a lease to Punch Partnerships (PTL) Ltd, which expires in 57.5 years, at a passing rent of £30,000 per annum. Given their ongoing liability, the tenant may explore a surrender option and pay a premium to do so. The property has the benefit of a car park adjacent and therefore the site could be sold off separately.

n There is good tenant demand from both coffee operators and local occupiers for the smaller units, making these easily re-lettable, should any become available.

n There is the potential to purchase the adjacent Iceland unit in the future, which would allow the scheme to be extended adjacent to the Laura Ashley unit.





CovenantsAsset


& Contacts

EPCEPC’s are available on request.

VATThe property has been elected for VAT, however, it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

PROPOSALWe are instructed to seek offers in excess of £18,935,000 (Eighteen Million, Nine Hundred and Thirty Five Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 7.25% (assuming purchaser’s costs at 6.74%).

DATA ROOMFurther information including property documents is available as follows: http://brettoncentre-peterborough.com

CONTACTSEllie KirkbyT: 020 7317 3790M: 07764 241898E: [email protected]

Wilkinson WilliamsHeathcoat House20 Savile RowLondonW1S 3PR

www.wilkinsonwilliams.co.uk

Miles MartenT: 020 7317 3777M: 07770 748290E: [email protected]

MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows:1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. June 2017. Designed and produced by Creativeworld Tel: 01282 858200.

BRETTON CENTRE BACK




CovenantsAsset


& Contacts

mailto:[email protected]?subject=Bretton Centre Enquiry

http://www.wilkinsonwilliams.co.uk

mailto:[email protected]?subject=Bretton Centre Enquiry

http://brettoncentre-peterborough.com

wilkinson williamsn - bretton centre peterborough · peterborough peterborough boulevard retail...

Documents