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BRISLINGTON RETAIL PARK – BATH ROAD, BRISLINGTON, BRISTOL BS4 5NG

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BRISLINGTON RETAIL PARK

BATH ROAD, BRISLINGTON BRISTOL BS4 5NG

OPEN A1 (NON-FOOD) RETAIL PARK INVESTMENT


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(CGI used for indicative purposes only)

" ANNUAL DAILY TRAFFIC FLOW OF 37,000" (Source: Department for Transport)

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INVESTMENT SUMMARY

Bristol is one of the UK’s largest commercial centres, located in the South West of England.

Large catchment population of 400,363 people within a 15 minute drive-time.

Bristol has seen significant growth over the last decade which is partly attributed to the growing student population. The population is set for continued growth with forecasts significantly above the national average.

Prominently positioned fronting Bath Road (A4), an arterial road providing direct access to both Bristol city centre and Bath.

The scheme comprises a modern cluster of 11 retail warehouse units plus one restaurant pod totalling 150,472 sq ft.

There are a total of 593 car parking spaces providing a ratio of 1:254 sq ft.

B&M have recently signed a new 10 year lease to occupy the 30,536 sq ft anchor unit which will significantly enhance footfall to the scheme and the presentation of the asset.

The park benefits from a strong retailer line-up including B&M, Home Bargains, TK Maxx, Harveys, Dreams, Halfords, Matalan and PureGym with a long WAULT of 6.5 years to expiry (5.45 years to breaks).

Total passing rent of £2,499,500 pa, reflecting an affordable average rent of £16.61 per sq ft.

11.44 acre freehold site with Open A1 (non-food) planning consent.

An established retail park in an affluent, growing catchment with various asset management initiatives.

Low capital value of £176 psf.

PROPOSAL

£26,450,000Our client is seeking offers in excess of

(Twenty Six Million, Four Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would provide an attractive 8.75% Net Initial Yield, based on purchaser’s costs of 6.76% and the net income of £2,469,901.


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LOCATIONBristol, with an estimated population of 459,300 is one of the UK’s largest commercial centres. The city is located in the South West of England approximately 120 miles west of London, 80 miles south of Birmingham, 78 miles north east of Exeter and 50 miles east of Cardiff.

Bristol benefits from excellent transport links being in close proximity to the intersection of the M4 and M5 motorways, whilst the M32 provides direct access to Bristol City Centre from the M4.

Bristol Temple Meads railway station is located 2.5 miles to the north-west of the property. The station, serviced by Great Western Railways, provides direct access to London Paddington and Plymouth in fastest journey times of 1 hour 45 minutes and 1 hour 58 minutes respectively.

Bristol Airport is located circa 9 miles to the south-west of the property. In 2018, the airport handled nearly 8.7 million passengers, a 5% increase on 2017’s figures, ranking the airport as the UK’s 9th busiest airport. The airport provides routes to domestic and international destinations including Continental Europe and North America.

A429

A350

A361

A36

A4

A4

A4

A48

A403

A449

A470

A4232

A4042

A37

A38

A368A371

A433

M49

M4TOLL

M48

M4

M4

M5

M5

M32

BathBath

NewportNewport

CardiffCardiff

BRISTOLBRISTOL

CwmbranCwmbran

StroudStroud

ChippenhamChippenham

Weston-super-Mare

Weston-super-Mare

BRISLINGTONRETAIL PARKBRISLINGTONRETAIL PARK



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WHAT! STORES



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CATCHMENT AND DEMOGRAPHICSBristol benefits from a Primary Retail Market population of 841,000, ranking the city 9th out of the PROMIS Centres. The City benefited from significant population growth throughout the 2000s which is partly attributed to the growth of the student population.

Within a 10 minute drive-time of the subject property, the catchment population is 163,459 people, which increases to 400,363 within a 15 minute drive-time.

Between 2018 and 2023 Bristol’s population is predicted to increase significantly at an average rate of 0.85% pa, which is comfortably in excess of the average growth rate for other regional centres.

Bristol is home to two universities; The University of Bristol and the University of West England. During the academic year 2017/2018, the universities recorded a significant student population of 25,000 and 29,000 respectively.

Bristol Local Plan Review (2019) includes a requirement for the delivery of 33,500 new and affordable homes between 2019 & 2036, whilst also seeking to improve the transport and infrastructure around the city.

SITUATIONBrislington Retail Park is located approximately 3 miles south east of Bristol city centre. The property occupies a prominent position fronting Bath Road (A4), benefitting from substantial daily traffic fl ows. This arterial route provides access into the centre of Bristol to the north-west and into Bath to the south-east.

The subject site forms part of an extensive commercial estate, including a Lidl foodstore, McDonald’s, Pets at Home and Wilverly Industrial Estate. Other surrounding uses are predominantly residential homes.

A429

A350

A361

A36

A4

A4

A4

A48

A403

A449

A470

A4232

A4042

A37

A38

A433

M49

M4TOLL

M48

M4

M4

M5

M5

M32

BathBath

CardiffCardiff

CwmbranCwmbran

StroudStroud

Weston-super-Mare

Weston-super-Mare

BRISTOLBRISTOLBRISLINGTONRETAIL PARKBRISLINGTONRETAIL PARK

163,459population 10 min

Drive-time


Drive-time


Drive-time

Large catchment population of 400,363 within 15 minutes

20 mins 15 mins 10 mins


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RETAIL WAREHOUSE PROVISIONBristol’s retail warehousing provision totals some 2,927,000 sq ft, however within the surrounding area of south-east Bristol, the principal competition is provided by Imperial Retail Park, Avonmeads Shopping Park and Longwell Green.

Gallagher Shopping Park & Longwell Green (Various owners)

Size – 436,500 sq ft.

Tenants – Asda (126,00 sq ft) Next, Boots, M&S, River Island, Clintons, Carphone Warehouse, Clarks, Café Nero, Outfit, DFS, Carpetright, B&Q, Currys/PC World, Wickes, Jollyes.

Planning – Various.

Rental Tone – £15.00 - £50.00 per sq ft.

Imperial Retail Park (Capreon)

Size – 337,548 sq ft.

Tenants – B&Q (105,192 sq ft), Pets At Home, DW Fitness, Next, Peacocks, Hobbycraft, Argos Extra, Pets at Home, M&S Foodhall, B&M, The Range, ScS.

Planning – Open A1 (with restrictions).


Avonmeads Retail Park (British Airways Pension Fund / DTZ Investment Management)

Size – 229,000 sq ft.

Tenants – 14 screen Showcase, Tenpin, Boots, JD Sports, M&S Food Hall, Currys/ PC World, Outfit, The Food Warehouse, The Range.

Planning – Open A1 (including food).


A420

A4320

A432

A370

A38A3029

A369

A431

A420

A4174

A4174

A37

A4

A4

A4174

BRISTOL

Redcliffe

Bishopsworth

St George Park

Hanham

Brislington

Hengrove

Saint Phillips

LongwellGreen

Keynsham

St Paul’sClifton

Southville

BRISTOL

Redcliffe

Bishopsworth

St George Park

Hanham

Brislington

Hengrove

Saint Phillips

LongwellGreen

Keynsham

St Paul’sClifton

Southville

BRISLINGTONRETAIL PARKBRISLINGTONRETAIL PARK

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1

2

3

3

2


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DESCRIPTION AND SITE

TENURE

The subject property comprises a purpose built retail warehouse park arranged to provide a cluster of 11 retail warehouse units and a restaurant pod totalling 150,472 sq ft at ground floor. The retail park is to be anchored by a new 30,536 sq ft B&M store, where comprehensive landlord works have been undertaken prior to their occupation.

The scheme offers 593 car parking spaces which provides good ratio of 1:254 sq ft.

The total site area extends to approximately 11.44 acres with a coverage of 30%.

The park is held freehold.

BATH ROADA4

WHAT! STORES

FLOW

ERS HILL

593 CAR PARKING

SPACES

Potential 1,800 sq ft pod development

CO

VERE

D

SERV

ICE

AR

EA

SERVICE YARD

SERVICE YARD


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TENANCY

The gross passing rent is £2,499,500 pa with a net operating income of £2,469,901 pa after the deduction of landlord shortfalls deriving from B&M’s service charge cap. The property benefits from a long WAULT of 6.5 years to expiry and 5.45 years to tenant break options.

Unit Name Lease (Tenant) GIA (sq ft) Mezz (sq ft) Lease Start Lease Expiry Tenant Break Rent review Rent (pa) Rent (psf) Comments EPC

Unit 1a TJX UK (TK Maxx)

15,461 14,249 24/06/2007 14/02/2026 - 15/02/2021 £351,328 £22.72 Re-gear agreed in 2015 to remove the 2017 break with lease extension to provide 10 years unexpired at passing rent. 4.5 months' rent free plus £420k cap-con. Rent review to OMV at year 5 capped at 115% of passing rent. Mezzanine disregarded at review. Surety from TK Maxx Group Ltd. No-build zone.

C-56

Unit 1b What! Stores Ltd (What!)

10,514 2,213 05/10/2018 31/01/2020 - - £24,000 £2.28 Formerly Poundstretcher. Temporary let to What! Stores Ltd, contracted outside the Act. Contracted rent of nil until 31/01/19 then £2,000 pcm/ £24,000 pa thereafter. Mutual rolling break options on 2 months’ notice from 30/11/2018.

C-67

Unit 1c Sportsdirect.com Retail Ltd (Sports Direct)

7,636 7,581 10/08/2012 09/08/2022 - - £205,632 £26.93 September 2017 break option removed for 9 months' rent free. C-54

Unit 2a Halfords Ltd (Halfords)

10,256 6,988 11/10/2004 10/10/2024 - 11/10/2019 £225,390 £21.98 B-46

Unit 2b United Carpets (Property) Ltd (United Carpets)

9,248 - 16/11/2018 30/06/2020 - - £30,000 £3.24 Formerly Maplin. Temporary letting to United Carpets, contracted outside the Act. Contracted rent of nil until 01/05/19 then £2,500 pcm/ £30,000 pa. Mutual rolling break options on 2 months’ notice from 30/04/2019. Schedule of condition. The tenant has vacated, but has not served their break notice. Potential S/C shortfall of £11,593.

C-75

Unit 2c Pure Gym Ltd (Pure Gym)

7,635 7,402 30/10/2017 29/10/2032 30/10/2027 30/10/2022 £191,250 £25.05 5 yearly RPI with a cap and collar of 1%-4% pa compounded. B-50

Unit 3 Dreams Ltd (Dreams)

8,229 4,274 25/12/2001 24/12/2021 - - £190,000 £22.97 Assumed area of 8,270 sq ft at review. D-83

Unit 4a T.J. Morris Ltd (Home Bargains)

10,605 1,224 17/01/2012 16/01/2027 - 17/01/2022 £225,000 £21.22 Rent Review cap to lower of OMV and £274,273 pa. C-70

Unit 4b Property Portfolio (No 15) Ltd (Harveys/Bensons)

10,761 7,343 29/09/2001 28/09/2021 - - £236,900 £22.01 D-87

Unit 4c Matalan Retail Ltd (Matalan)

28,291 25,228 22/01/2014 24/12/2026 - 25/12/2021 £485,000 £17.14 Mezzanine disregarded at review. E-105

Unit 5 B&M Retail Ltd (B&M)

30,536 - 15/07/2019 14/07/2029 14/07/2024 15/07/2024 £300,000 £9.82 B&M have signed new 10 year lease subject to 12 months' rent free to be topped up by vendor. 5th year OMV review capped at 112%. Service charge cap of £30k pa in first 5 years and £45k pa thereafter. Shortfall of £29,599. Landlord reserves right to build new inline unit at the southern end of 1,800 sq ft with external seating. No build zone. Any mezzanine to be disregarded at review. Minimum 480 car spaces.

D-87

Pod Subway Realty Ltd (Subway)

1,300 - 28/03/2011 27/03/2026 28/03/2022 28/03/2021 £35,000 £26.92 Tenant break option. Supplement lease of external seating area at nil rent.

D-93

Total / Average 150,472 76,502 £2,499,500 £16.61


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TENANT COVENANTS

Latest Accounts Turnover Pre-Tax Profits Net Worth D&B

Rating

2018 £2,968,600,000 £87,100,000 £645,600,000 5A1


Rating

2018 £2,206,501,000 £167,306,000 £1,060,137,000 5A1


Rating

2018 £930,800,000 £74,500,000 £765,900,000 5A1


Rating

2018 £2,965,000 (£82,000) £420,000 A2


Rating

2018 £226,086,000 £44,972,000 £48,561,000 5A1

of the current gross income is secured by covenants rated 5A1 (minimum risk) by Dun & Bradstreet, offering excellent income security.

79%


Rating

2018 – – £2,912,556 2A2

WHAT! STORES


Rating

2017 £290,288,000 £30,477,000 £13,765,000 3A2


Rating

2018 £2,143,267,097 £202,700,562 £911,755,756 5A1


Rating

2017 – – (£46,746,000) N4


Rating

2018 £1,062,500,000 £29,800,000 £252,600,000 5A1


Rating

2018 £2,629,145,000 £236,006,000 £600,542,000 5A1


Rating

2018 £35,107,808 £1,530,929 £1,574,725 2A3

Misrepresentation Act 1967

Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that : (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and 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. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. August 2019

16790.001 | August 2019 Designed and produced by THE GROUP www.completelygroup.com

Mark GirlingT: 020 7312 7460

M: 07770 851 123

E: [email protected]

Will CollinsT: 020 7312 7405

M: 07972 148 262


FURTHER INFORMATION

Edward GeorgeT: 020 7312 7489

M: 07818 012 489


ASSET MANAGEMENTThe scheme presents a number of asset management opportunities, outlined below:

Opportunity to re-let Units 1b and 2b to national retailers following the opening of new anchor B&M store.

Re-gearing existing leases to improve the WAULT.

Development of 1,800 sq ft unit adjacent to B&M, subject to planning.

Potential to redevelop Subway to provide new drive thru unit.

PLANNINGThe property has an open A1 non-food planning consent with certain exceptions. Further details are available upon request.

ENVIRONMENTALAn environmental and ground conditions report is available upon request.

EPCsAvailable upon request.

VATThe property is elected for VAT.

PROPOSAL

£26,450,000Our client is seeking offers in excess of

(Twenty Six Million, Four Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would provide an attractive 8.75% Net Initial Yield, based on purchaser’s costs of 6.76% and the net income of £2,469,901.

Nick RichardsonT: 020 7312 7420

M: 07818 012 420


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