currys pc world & carpetright

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Currys PC World & Carpetright Seamer Road, Scarborough, YO12 4HE

RETAIL WAREHOUSE INVESTMENT

Investment Summary • Scarborough is a popular seaside town in North Yorkshire,

41 miles north east of York.

• The town is the largest holiday resort on the Yorkshire coast, with tourism providing an additional £470 million to the local economy annually.

• The subject property is located in a prominent and visible position adjacent to the A64, the main route into Scarborough, in the main retail warehouse pitch for the town.

• The property boasts a captive catchment with the nearest competing centre, York, being around an hour’s drive away.

• Modern 2 unit scheme totalling 28,970 sq ft.

• Let to the secure covenants of DSG Retail Ltd and Carpetright plc.

• Bulky goods planning consent.

• Lease expiring in March 2023.

• Total rent of £412,000 per annum, reflecting an average rent of £14.22 per sq ft.

• Asset management potential.

• We are seeking offers in excess of £5,725,000 (Five Million, Seven Hundred and Twenty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75%, assuming purchaser’s costs of 6.62%.

Seamer Road, Scarborough RETAIL WAREHOUSE INVESTMENT

Location &Demographics

Situation &Retail Warehouse

Provision

Description Planning & Tenure

Tenancies,Tenants’ Covenants &

Asset Management

EPC, VAT,Price &

Contact Details

Investment Summary

LocationScarborough is a popular seaside town on the North Sea coast of North Yorkshire. The town is located 41 miles north east of York, 46 miles north of Hull, 48 miles south of Middlesbrough and 68 miles north east of Leeds.

Scarborough benefits from excellent road communications, being situated on the intersection of the A171, A164, A170 and A64, which provide easy access to York, Hull, Middlesbrough and Leeds, as well as the M62 and A1(M) motorways.

Scarborough railway station provides direct access to York and Leeds, with journey times of 48 minutes and 1 hour 14 minutes respectively. From both these stations, there are regular trains to London.

Leeds Bradford Airport is situated 70 miles south west, providing internal flights, as well as flights to European and worldwide destinations.

Demographics Scarborough has a catchment population of 147,000 people, with Experian estimating there are 60,932 people living within a 10 minute drive time of the subject property, extending to 82,749 people within a 20 minute drive time.

Scarborough is the largest holiday resort on the Yorkshire Coast. In 2012, the town attracted approximately 1.4 million overnight visitors and 6.5 million people on day trips, spending over £470 million. In addition, the impact of tourism generated a further £187 million to the local economy, giving an overall increase of 7% from 2011. Retail in Scarborough benefited from 25% of the total spend.

The retail spend per person in Scarborough is above the UK average for household textiles and household goods including white goods. This has a direct positive impact on the retailers at the subject property, particularly Currys PC World. The spend per person within the population averages £2.34 and £0.17 on household comparison goods and household services i.e. repairs to appliances, compared with the UK average of £2.06 and £0.13, respectively.

Investment Summary

Location & Demographics

NEWCASTLE

TEESSIDE

CARLISLE

LEEDS &BRADFORD

MANCHESTER

41

40

42

43

44

19

18

17

16

20

26

28

29

27

30

31

17

32

1

20

21

22

19

31

154

35

20

54 7

119

2524

23

22

14

1211 10

567

12

98

5

10

16

65

2

543

17

34

16

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1 32

31

6

8

6

930

27

1312

14

107

84

3

35

33

34

38

37

36

9

6

14

2

4

3

1

2928

M6

A74(M)

M6

M1M53 M56

M58

M61

M60

M60

M62M62

M62M6

M66

M65

M1

M62M62

A1(M)

A1(M)

A1(M)

M621

M181

M55

M6

M6

M18

M180

Durham

Morpeth

Penrith

Dumfries

Stranraer

Whitby

PickeringThirsk

Malton

Driffield

MarketWeighton

Redcar

Northallerton

Appleby-in-Westmorland

Whitehaven

Workington

Ulverston

Morecambe

Clitheroe

PadihamColne

Nelson

Accrington

Rawtenstall

Todmorden

Beverley

Ripon

Knaresborough

Bridlington

Filey

Chorley

Darwen

Lytham St Anne's

Formby Standish

Leyland

SkelmersdaleOrmskirk

Whitley Bay

Boston

Otley

Selby

Retford

Gainsborough

Goole

Thorne

Tadcaster

Kendal

Heysham

Fleetwood

Lancaster

Ilkley

Bingley

Garforth

Castleford

Newark-on-Trent

Cleethorpes

Immingham

LeekMatlock

Bebington

Flint

Kirkby

LlandudnoPrestatyn

RhylColwyn Bay

AbergeleConwy

Bangor

Holyhead

Nantwich

Ashbourne

MacclesfieldBuxton

Louth

Carlisle

Hartlepool

MIDDLESBROUGH

Darlington

Barrow-in-Furness

BurnleyBlackburn Halifax

HuddersfieldBury

Rochdale

Bolton

Preston

Blackpool

Southport

Wigan

Gateshead

HarrogateYORK

Chesterfield

Scunthorpe

Wakefield

Mansfield

Lincoln

Grimsby

EllesmerePort

Crewe

Chester

BRADFORDHULL

MANCHESTER

NEWCASTLE UPON TYNE

SUNDERLAND

LEEDS

SHEFFIELD

STOKE-ON-TRENT

LIVERPOOL

A170

A64A165

A171SCARBOROUGH



Provision


EPC, VAT,Price &

Contact Details


Asset Management

Situation The subject property is situated in a prominent and visible location approximately 1.5 miles south of the town centre immediately adjacent to the A64 Seamer Road.

The A64 is a major arterial road and provides direct access to the town centre to the north and to York to the south.

The subject property is situated in close proximity to the dominant retail park in the town - Seamer Road Retail Park. This pitch forms the principal retail warehouse destination for Scarborough.

The surrounding area around the subject property provides a mixture of car showroom, building depots and residential accommodation.

Retail Warehouse ProvisionScarborough is relatively under supplied in terms of retail warehousing, with the total floor space estimated at 264,000 sq ft (PROMIS), significantly below the PROMIS average in terms of overall provision per household. Most goods categories are relatively under-represented in the town, particularly fashion and furniture/furnishing goods.

Scarborough has a captive catchment due to its distance from competing retail centres. The closest competing towns are Middlesbrough, York and Hull, all over an hour’s drive away. As a result, Scarborough retains the majority of the retail warehouse spend from within its catchment.

The main park is Seamer Road Retail Park, located approximately 400 metres south of the subject property. This scheme provides approximately 92,000 sq ft of predominantly open A1 non-food retail accommodation. The park is anchored by B&Q, with other units let to Halfords, Next Home, Brantano, Pets At Home and Dunelm. Rents currently range from approximately £11.50 to £18.50 per sq ft.

Immediately adjacent to this is a 10,000 sq ft unit occupied by B&M. TK Maxx and Matalan both have standalone units close to the town centre.

Investment Summary


Situation & Retail Warehouse

Provision

B427

QU

EEN

MAR

GARE

T’S

RD

NORTHWAY

EASTWAY

FILEY RD

OSGOODBY HILL

VICT

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RD

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W

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NESS

LN

MOUNTSIDE

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COLLEGE L N

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VALLEY RD

VALLEY RD

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STEPNEY DR

SANDYBED LN

STONEY HAGGS RD

SEAMER M

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WYKEHAM ST

A

64 S

EAM

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D

A6

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AMER

RD

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AMER

RD

A170 RACECOURSE RD

STE

PNEY

HIL

L

A1

70

A170

STEPNEY RD

A64

A165

RAM

SHILL RD

FILEY RD A165A165

A165

A171

A171 SCALBY R D

A171 SCALBY ROAD

COLU

MBU

S RA

VINE

CASTLE ROAD

B1364

S C A R B O R O U G HS C A R B O R O U G H

Seamer RoadRetail Park

(92,000 sq ft)Tenants include B&Q, Halfords, Next Home,

Dunelm, Brantano, Pets at Home

Town Centre

Currys PC World & CarpetrightSeamer Road


Description Planning &Tenure

EPC, VAT,Price &

Contact Details


Asset Management

Investment Summary



Provision

Description Seamer Road, Scarborough RETAIL WAREHOUSE INVESTMENT

Planning &Tenure

EPC, VAT,Price &

Contact Details

Description The subject property comprises 2 retail warehouse units totalling approximately 28,970 sq ft. Both units are of steel portal frame construction with brick and profile steel clad elevations. Internally, the units are fitted out to the individual tenant’s specification. Bensons for Beds have a concession within the Carpetright unit. The Currys PC World unit incorporates the 3 retail facias; Currys, PC World and Carphone Warehouse.

The Currys PC World unit was refurbished in 2010, with the tenant also installing a part mezzanine. The Carpetright unit has sufficient eaves height to install a mezzanine, subject to planning.

129 car parking spaces are provided to the front of the units, giving a low ratio of 1:224 sq ft. There is a substantial shared service yard to the rear.

The park is accessed directly off the A64 Seamer Road with shared access with MKM Building Supplies (the UK’s largest independent building merchant).

The site extends to approximately 2.82 acres giving a low site cover of approximately 24%, and presenting the opportunity to develop further on the site, subject to planning.


Asset Management

Planning Planning consent was originally granted on 8 August 1998, subsequently varied on 20 June 1995 and permits the sale of non-food goods precluding the sale of the following:

(i) food and drink(ii) magazines, books and stationery(iii) handbags and luggage(iv) jewellery, perfume, toiletries and cosmetics(v) clothing, footwear and related accessories(vi) CD’s, pre-recorded cassettes and records(vii) cutlery, crockery, small kitchen utensils and non-electrical cookwares

Furthermore, no unit shall be created by the subdivision of the building that has a gross floor area of less than 10,000 sq ft.

Tenure The site, delineated in red on the site plan, is held freehold.

Investment Summary



Provision

Description Planning &Tenure

ED and W

ard Bdy

CR

42.0m

41.1m

TCB

Mast

SEAM

ER R

OAD

TRICOURT

SL

MP 41

SLEl Sub Sta

Industrial Estate

Ambulance

182

194

Depot

El Sub Stas

175

2

14

7a

11a

9a

4

9

1

11

188

1

181

7

Shelter

Garage

Station

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1215


EPC, VAT,Price &

Contact Details


Asset Management

TenanciesThe property is let on full repairing and insuring leases as below:

Unit Tenant Area (sq ft)

Lease Start Date

Lease Term (years)

Lease Expiry Date

Next Rent Review

Current Rent (per annum)

Current Rent (per sq ft) Comments

A DSG Retail Limited t/a Currys PC World 16,368 25/03/1998 25 24/03/2023 25/03/2018 £227,500 £13.90 The unit has a lobby area that is not rentalised at rent

review.

B Carpetright Plc 12,602 25/03/1998 25 24/03/2023 25/03/2018 £184,500 £14.64

There is an additional lobby area of 536 sq ft that is valued at half rate. Total area is 13,138 sq ft. The rate applied to the main warehouse at the last rent review was £15.50 per sq ft.

TOTAL 28,970 £412,000 £14.22

Investment Summary



Provision


Tenants’ CovenantsDSG Retail Limited is a subsidiary of Dixons Carphone plc, which was formed following the merger on 7 August 2014 of Dixons Retail plc and Carphone Warehouse Group plc. The new company joined the FTSE 100 on 22 September with a market capitalisation of approximately £4.23 billion. The company has almost 1,300 stores across the UK and Ireland.

Carpetright plc is the biggest carpet retailer in the UK with a market share of circa 35% and sells a wide range of carpets, rugs, vinyls and laminates, together with beds. There are currently 438 trading stores and concessions in the UK. The individual tenant accounts are as follows:

Asset Management The property benefits from a low site cover of 24% giving the potential for further retail development in the car park.

Plans have previously been drawn up for a potential A3/pod unit, which would be positioned at the entrance to the property. We believe this would increase both footfall and dwell time to the scheme and be of benefit to the existing retailers.

Further details are available on request.

Tenant Year Ending SalesTurnover (000’S)

Pre Tax Profit / Loss

(000’S)

Net Worth(000’S)

D&B Rating

DSG Retail Limited02/05/2015 £4,314,000 £116,800 £395,900

5A130/04/2014 £4,078,300 £94,100 £377,500

Carpetright plc02/05/2015 £469,800 £6,600 £3,400

2A126/04/2014 £447,700 -£7,200 £2,500


EPC, VAT,Price &

Contact Details


Asset Management

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. April 2016. Wilkinson Williams LLP give notice that some of the partnership members have a financial interest in this property. Designed and produced by Creativeworld Tel: 01282 858200.

EPC

Unit Tenant EPC Rating

A Currys PC World D100

B Carpetright D95

Copies of the EPC are available on request.

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

Price Offers are sought in excess of £5,725,000 (Five Million, Seven Hundred and Twenty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75%, assuming purchaser’s costs of 6.62%.

Contact Details Paul Wilkinson Ellie Kirkby Tel: 020 7317 3799 Tel: 020 7317 3790Mob: 07770 585313 Mob: 07764 241898Email: [email protected] Email: [email protected]

Investment Summary



Provision


EPC, VAT,Price &

Contact DetailsSeamer Road, Scarborough

RETAIL WAREHOUSE INVESTMENT


Asset Management

mailto:[email protected]

mailto:[email protected]

currys pc world & carpetright

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