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Burrfields Retail ParkBURRFIELDS ROAD, PORTSMOUTH, PO3 5HH

RETAIL PARK INVESTMENT OPPORTUNITY

ENTER

Investment Considerations

• Portsmouth is a major commercial port and city in Hampshire, 20 miles east of Southampton.

• The city benefits from a large catchment and shopping population, significantly above the PMA retail average.

• The subject property is located in a prominent position opposite Ocean Retail Park; the dominant retail park in Portsmouth.

• The park is well let with a weighted average unexpired lease term of 6 years to the D&B ‘A’ rated covenants of Pets at Home and Staples.

• The rent totals £505,357 per annum, equating to £20.15 per sq ft overall, giving potential for future rental growth.

• Asset management angles including a potential pod unit development on the scheme.

• We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser’s costs at 5.80%), giving a purchase price of £7,961,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT.

Home Investment Considerations

Location & Catchment Population

Retail Warehousing in Portsmouth & Situation Description Tenure, Tenancy

& PlanningAsset Management Opportunities

& Tenants’ CovenantsEPC’s, VAT, Proposal

& Contact Details

BURRFIELDS RETAIL PARK, BURRFIELDS ROAD, PORTSMOUTH, PO3 5HH

BURRFIELDS RETAIL PARK

OCEAN RETAIL PARK

Location

Portsmouth is located in Hampshire on the south coast, 20 miles to the east of Southampton. The M275 connects the city to the M27 and the A27, which in turn form the main coastal route between Southampton to the west and Eastbourne to the east, and provide access to the national motorway network via the M3 and A3 (M), linking to London, 75 miles north.

The majority of the Portsmouth District is located on Portsea Island, which is separated from the mainland by a narrow strip of water. The city has been home to the Royal Navy for over 500 years and is a major commercial port.

Portsmouth train station provides regular services to several mainline destinations, including Southampton (45 minutes), London Waterloo (1 hour 30 minutes) and Birmingham (3 hours 20 minutes). The city is also the second busiest passenger and freight ferry port in the UK, with P&O, Commodore and Brittany offering regular ferry services to mainland Europe. Southampton Airport is located 16 miles west of the city.

Catchment Population

Portsmouth has a primary catchment population estimated by PROMIS of 503,000 people and a shopping population of 245,000 people, ranking it 40 and 45 respectively out of the top 200 PROMIS retail centres.

Experian calculate there is a total population of 232,914 people within a 10 minute drive time of the subject property, increasing to 521,493 people within a 20 minute drive time.

Portsmouth currently ranks 42 out of the top 200 PROMIS retail centres in terms of the volume of comparison retail spend available in the catchment area, and its dominance as a retail destination is demonstrated below:

Spending Potential Portsmouth PMA Sub Regional Centre Average

PMA Retail Average

Total in-store comparison retail expenditure 2014 (£m)

£1,174 £855 £837

Per capita retail warehouse expenditure 2014

£476 £473 £469

In addition, consumer spend within Portsmouth is significantly boosted by tourism. In 2013, the local authority estimated that approximately 9.25 million day trips were made to the city. Tourism was expected to generate around £444 million for the city in 2013; an increase of over 6% from 2012. Of this, over £150 million was spent within the retail sector, accounting for 37% of the total spend.






& Contact Details


SOUTH DOWNSNATIONAL PARK

CHANNELTUNNEL

TERMINAL

LUTON

STANSTED

HEATHROW

GATWICK

SOUTHAMPTON Lydd/Ashford

CITY

LYNEHAM

8

7

11 12

9

10

13

6

12

43 5

763 54

7

6

3130

4

5

2

8

9

10

11

2 134

14

13

4

3

1

11

10

99

14 1312

67

10

65

7

12

1110

9

8

7

8

5

1314

44

12

1

2 3

91110

12

17

1615

18

9

10

11

7

11

78

9

10

2019

1

32

4

56

1718

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

9

10

9

10

11

14

13

12

11

10

9

11

2

26

5

3

1

M23

M1

M2

M27

M26

M25

M20

A3(M)

M40

M4

M3

A329(M)

M25

M25

M25

M25

M20

M1

M10

A1(M)

M11

M4

M40

M3

M1 M11

M20

M5

M11

A36

A350

A36

A338

A346

A303

A354

A338

A350

A338

A419

A31

A31

A436

A417

A44

A40

A429

A40

A44

A44

A46

A46

A348 A3

38

A303

A31

A26

A23

A232

A4

A40

A406

A41

A406

A10

A12

A13

A2A20

A205

A3

A24

A34

A27

A3

A34

A5 A10

A505

A508

A421

A13

A127A127

A40A418

A41

A4010

A413

A41

A43

A5

A509

A6

A1

A602

A10

A414

A12

A120

A130 A131

A131

A134

A12

A130

A120

A133

A120

A14A12

A420

A34

A43

A422

A419

A505

A256

A299

A28

A28

A2

A2

A2

A28

A20

A207

0

A259

A259

A21

A229A249

A21

A228

A21

A26

A22

A22

A22

A259

A26

A27

A23

A264

A283

A24

A272

A24

A264

A22

A22

A2

A31

A33

A339

A34

A253

A27

A429

Stow-on- the-Wold

Hertford

WelwynGarden

City Ware

HatfieldHoddesdon

Royston

Biggleswade

Felixstowe

SudburySaffronWalden

Haverhill

Harwich

NewportPagnell

Sheerness

Canvey Island

Whitstable

HerneBay

Canterbury

Rayleigh

Chelmsford Maldon

Witham

Braintree

Bishop's Stortford

FavershamSittingbourne Ramsgate

Deal

Hythe

Ashford

Tonbridge

Uckfield

Crowborough

Bexhill-on-Sea

Newhaven

EastGrinstead

HaywardsHeath

LewesHailsham

Sevenoaks

OxtedRedhillReigate

Dorking

Horsham

Godalming

Chichester

Haslemere

Littlehampton

Petersfield

Sandown

Shanklin

RydeNewport

FawleyHythe

Lymington

New Milton Cowes

Alton

Winchester

Romsey

Farnham

Aldershot

Leatherhead

Bracknell

Windsor

Croydon

Swanley

Andover

Ringwood

Salisbury

Christchurch

Chippenham

Newbury

Devizes

Cirencester

Didcot

Dartford

Stroud

Witney Kidlington

Tilbury

Chigwell

Epsom

Sutton

Kingston upon Thames

Richmond

Woolwich

Barnet Enfield

Maidenhead

Beaconsfield

HarrowUxbridgeHenley-

on-Thames

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

BanburyEvesham

Stratfordupon Avon

Stevenage

Ipswich

Southend-on-Sea

Margate

Brentwood

Colchester

Clacton-on-Sea

Basildon

Gravesend

Dover

Folkestone

Tunbridge Wells

Maidstone

Hastings

Eastbourne

RochesterGillingham

Chatham

Crawley

BrightonHove

WorthingBognorRegis

Havant

Eastleigh

Basingstoke

Guildford

WokingCamberley

Staines

Reading

PooleBournemouth

Swindon

Cheltenham

Harlow

Slough

Watford

Luton

Bedford

Amersham

HighWycombe

Oxford

Milton Keynes

Fareham

Gosport

Portsmouth

SOUTHAMPTON

LONDON

Retail Warehousing in Portsmouth

Retail warehouse supply in Portsmouth totals 993,000 sq ft which includes the area of Havant. Overall provision per household of retail warehousing is below average. We believe that the limited retail warehousing competition in the city results in the majority of retailers generally trading well. The main retail warehouse provision is shown on the map opposite.

Situation

The subject property is located to the north east of Portsea Island, 0.5 miles west of the A2030; the main north-south route serving that side of the island, and 2 miles south of the A27. The scheme is easily accessible and highly visible from the road and benefits from the critical mass that Ocean Retail Park, located opposite, provides.

Ocean Retail Park, owned by The Crown Estate, totals 175,000 sq ft and is anchored by Currys PC World, Homebase and Toys R Us. The scheme attracts over 2.4 million visitors each year and is considered to be the dominant retail warehouse destination in Portsmouth.






& Contact Details


A2030 EASTERN RD

EASTERN RD

EAST

ERN

RD

BURRFIELDS RD

STUBBINGTON AVE

FRAT

TON

RD

KING

ST

ON

RDLAKE RD

A3 N

ORTHERN

PAR

ADE

A2047

LO

ND

ON

RD

CO

PN

OR RD

COP

NO

R RD

ST. MARYS RD

MILTO

N R

D

NEW RD

NORWAY RD

EAST

ERN

RDN

OR

THER

N R

D

WESTERN RD

A288 EASTERN P ARADE

FAWCETT RD

KINGS RD

A3 SOUTHAMPTON RD

QUEEN ST

HAVANT RD

HAVANT RD

A3 LONDON RDPORTSDOWN HILL RD

PORTSDOWN HILL RD

PARK RD

NPA

RK

RD S

HAV

AN

T RD

LONGSTON

E BRIDGE

SEA FRONT

WES

T LA

NE

WES

T LA

NE

PORTSEAISLAND

HAVANT

Description

The property is an attractive, modern scheme totalling 25,083 sq ft arranged as a single terrace of 2 units of 15,079 sq ft, and 10,004 sq ft, let to Staples and Pets at Home respectively.

The scheme is well presented with a combination of brickwork and glazed elevations displaying the tenants’ signage.

Internally, the units are fitted out to the individual tenant’s specifications with the Pets at Home unit incorporating a veterinary surgery in part of their unit. The Staples’ unit benefits from having a storage mezzanine and there is sufficient eaves height to create a mezzanine within the Pets at Home unit, subject to planning.

Car parking is located to the front of the units providing 105 spaces, equating to an attractive car parking ratio of 1 : 239 sq ft. There is also additional staff parking in the service yard.

Servicing is located to the rear of the property with service vehicles accessing the property in the same way as customers, via Burrfields Road which leads to Ocean Retail Park.

The total site area is 1.983 acres providing a low site cover of 29%.






& Contact Details


Tenure and Tenancy

The site, delineated below, is held freehold. The property benefits from an average income weighted unexpired lease term of 5.2 years and is let in accordance with the tenancy schedule below:

Unit Tenant Total Area (sq ft)

Lease Start Lease Term (years)

Lease Expiry Next Rent Review

Current Rent (per annum)

Current Rent (per sq ft)

1 Staples 15,079 07/11/2003 15 06/11/2018 £290,271 £19.25

2 Pets at Home 10,004 24/11/1997 25 23/11/2022 24/11/2017 £215,086 £21.50

Total 25,083 £505,357 £20.15






& Contact Details


Planning

Planning was originally granted in April 1997 for the development of 2 units for the retail sale of goods, excluding where the primary use involves the sale of ‘food, not including animal feed; alcoholic drink; tobacco; stationery; books, newspapers and magazines; clothing and footwear; sports and leisure equipment; chemist goods and jewellery; and pre-recorded audio and visual software’.

The permission restricts the subdivision of the units to less than 8,000 sq ft without consent.

In July 1997 the consent was altered to allow part of the ground floor to be used as a veterinary surgery within the Pets at Home unit.

Following recent case law, given the particular working of the consent, it is considered there is an argument that the user restrictions within the consent may be invalid. However this is unclear and would need to be investigated in more detail. Further information can be provided on request.

Planning consent was granted in May 2008 to install a mezzanine of 3,315 sq ft within the Pets at Home unit. This was not implemented and has subsequently expired.

BURRFIELDS ROAD

BURRFIELDS ROAD

DU

ND

AS

LAN

E658 PARKING SPACES

TO LETUnder Negotiation

Q2 2015

Burfields Retail Park

A2030 EASTERN ROAD

A288 COPNOR ROAD

BURRFIELD RETAIL PARK

Asset Management Opportunities

We believe there is an opportunity to create a standalone pod unit or A3 drive thru unit in the car park, subject to planning. Coffee operators should be interested, in particular, given the high level of traffic passing the scheme. Subway and Carphone Warehouse have recently taken pod units on Ocean Retail Park demonstrating the demand for the location. We believe a pod operator could pay in the region of £32.50 per sq ft for a unit here.

Plans showing how this could be accommodated are available on request.

Staples have a lease expiry in 2018. It would be possible to subdivide their unit at lease expiry into 2 units of circa 7,500 sq ft, and potentially let these at rents ahead of the current passing rent. Given this is the main retail warehouse pitch in Portsmouth and there is a lack of available smaller units on Ocean Retail Park, we believe there would be strong demand from retailers for representation here.

The strength of the location is demonstrated by the fact there is strong occupier demand for Ocean Retail Park, when Paul Simon went into administration, Oak Furnitureland took an assignment of their lease, for a premium. In addition, negotiations are ongoing with a number of attractive retailers for a downsize of the Toys ‘R’ Us unit.

Tenants’ Covenants

Pets at Home is the UK’s largest pet supplies retailer, with more than 370 stores and 6,000 employees. The company sells products including food, toys, bedding, medication and accessories. The company recently floated on the FTSE 250 stock market.

Staples is the leading stationery supplier in the UK and US with over 2,200 stores globally. The company was started in 1992 and now employs over 2,200 staff.

Unit Tenant Year Ending Sales Turnover (000s)

Pre-Tax Profit/Loss (000s)

Net Worth (000s)

D&B Rating

Unit 1 Staples UK Ltd 01/02/2014 - - £1,260 1A2

02/02/2013 - -£22,629 £1,260

Unit 2 Pets at Home Ltd 27/03/2014 £633,429 £83,858 £462,455 5A1

28/03/2013 £586,350 £77,707 £382,537







& Contact Details

Environmental

Delta Simmons have undertaken a Phase 1 Environmental Survey which is assignable to the purchaser. This gives the site a low to moderate environmental risk rating. A copy of the report is available on request.

EPC’s

Unit 1 has an EPC rating of B49 and Unit 2 has an EPC rating of C54.

VAT

The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction to be treated as a ‘TOGC’.

Proposal

We are instructed to seek offers for the above property based on an attractive net initial yield of 6% (assuming purchaser’s costs at 5.80%), giving a purchase price of £7,961,000 (Seven Million, Nine Hundred and Sixty One Thousand Pounds), subject to contract and exclusive of VAT.

Contact Details

Paul WilkinsonT: 020 7317 3799M: 07770 585313E: [email protected]

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

Wilkinson WilliamsHeathcoat House20 Savile RowLondon W1S 3PR

www.wilkinsonwilliams.co.uk







& Contact Details

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. May 2015. Designed and produced by Creativeworld Tel: 01282 858200

http://www.wilkinsonwilliams.co.uk

mailto:[email protected]

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