super prime long income retail warehouse & trade …...bromley gravesend gillingham shoreham...

SUPER PRIME LONG INCOME RETAIL WAREHOUSE & TRADE INVESTMENT

INVESTMENT SUMMARY Prime retail warehouse and trade investment located in the world-renowned city of Oxford.

A top 10% trading store with a sales turnover of around double the portfolio average (244 stores).

Situated in a highly visible and prominent position on Botley Road, opposite Seacourt park & ride in arguably the best retail warehouse and trade location in Oxford.

Very affluent population.

Right-sized store with a total gross internal floor area of approximately 28,034 sq ft and 124 demised customer car parking spaces.

A long and attractive term certain of approximately 18.6 years.

Current passing rent of £697,702 pa (equating to £24.89 psf).

Effective Open A1 (non-food) planning permission.

Freehold.

Offers sought in excess of £11,890,000 (Eleven Million, Eight Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive Net Initial Yield of 5.50%, assuming purchaser’s costs calculated at 6.71%.

BOTLEY ROAD, OXFORD, OX2 0HA

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Oxford City Centre

BO

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OA

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A34 SOUTHERN BYPASS

A420

Seacourt Park & Ride

Proposed Osney Mead Knowledge Park

Westway Place Development

LONDONHeathrow

Oxford

LondonCity

Gatwick

StanstedLuton

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M1

M4

M4

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M10

M40

A404(M)

A329(M)

M25

M25

M25

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M23

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M20

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M11

M11

A1(M)

M1

A34

A420

A418

A4142

A41

A34

A34

A44

A40

A404

A413

Harlow

Bishop’sStortford

EppingPotters Bar

Knebworth

Hertford

Luton

Aylesbury

Dorchester

Bradfield

DunstableStevenage

Hatfield

Dartford

Bromley

Gravesend

Gillingham

Shoreham

Rochester

Sittingbourne

Croydon

Biggin Hill

Romford

Sevenoaks

Tonbridge

RoyalTunbridge

Wells

Maidstone

Snodland

StaplehurstPaddock

Wood

East GrinsteadCrawley

Horley

Horsham

Godalming

Andover

Stockbridge

HaywardsHeath

Burgess Hill

Oxted

DorkingGuildford Reigate

Staines

Slough

HemelHempstead St Albans

HighWycombe

Watford

Uxbridge

Harrow BrentCross

Woking

BorehamwoodEnfield

Windsor

Aldershot

Basingstoke

Winchester

NewburyBracknall

Ascot

Sandhurst

Reading

Henley-on-Thames Maidenhead

Epsom

Clapham

Swanley

Fulham

Richmond

KingstonUpon Thames

BillericayWickford

Stanford-le-Hope

Southend-on-SeaBenfleetCanveyIsland

Brentwood

Chelmsford

ChippingOngar

Basildon

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LOCATION Oxford is an historic, world class university city and the premier retail, tourist and administrative centre in Oxfordshire. The city is located approximately 51 miles north-west of London and 57 miles south-east of Birmingham.

Road communications in Oxford are excellent with the city situated in close proximity to the A40 providing direct access to London and Birmingham via the M40. In addition, the A34 connects Oxford with the M40, M3 and M4 motorways.

Oxford has two railway stations and benefits from fast and frequent train services to London Paddington, London Marylebone and Birmingham New Street (and direct to other major cities including Manchester and Newcastle) with fastest journey times of 56 minutes and 65 minutes respectively.

The Oxford Tube provides a 24-hour coach service to London Victoria.

London Heathrow and Birmingham International airports are both within one hours drive of Oxford.

A34

A34

A420

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TLEY

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*PROMIS

>£7.3bn Oxford’s contribution to the UK economy

in 2018

2nd highest average

house price outside of London (£495,900*)

>7 million tourists per annum.

In the UK top 10 most visited cities

>£830m tourism contribution in

2018 to Oxford’s economy

>42,000 full time students

<1% unemployment


DEMOGRAPHICSOxford is a world-class university city and is the administrative centre for Oxfordshire. The city comprises a population of around 154,600 and a primary retail market catchment of approximately 322,000.*

Oxford is globally known as home to one of the world’s leading universities; The University of Oxford was ranked 1st in The Times 2020 Higher Education rankings whilst Oxford Brookes is one of the UK’s leading modern universities and is ranked 51st overall in the UK by The Complete University Guide 2020. The two universities have a combined total of 42,085 full time students, which contributes to Oxford’s successful economy and thriving culture.

The City is home to around 4,730 businesses providing a total of 135,000 jobs to the local economy. Oxford has a large number of people employed in both universities and the public sector and also has significant jobs in the private sector including automotive production, publishing, tourism, hospitality as well as being a leader in the growing hi-tech and life sciences field fuelled by the highly-qualified workforce.

The population is highly affluent with 66% of Oxford’s adult population in the most affluent ABC1 category.

Oxfordshire has ambitious plans for further growth with proposals for 100,000 new homes and 85,000 new jobs to be created by 2031.*

The OX2 postcode that includes parts of Botley, Jericho and Summertown provides some of the most desirable and expensive locations to live in the UK attracted by the wealth of good schools, Victorian and Edwardian architecture and easy access into London and other regional cities via both of the city’s railway stations.


INWARD INVESTMENT

WESTGATE SHOPPING CENTRE (CROWN ESTATE, LANDSEC)

Following a £440 million redevelopment, the city’s largest shopping centre opened in 2017 comprising over 800,000 sq ft across 125 retail and leisure units. The scheme is anchored by John Lewis & Partners, Primark, Next and Curzon Cinemas. The scheme attracts around 15 million shoppers annually.

OXFORD RAILWAY STATION & TRANSPORT INTERCHANGE (OXFORD CITY COUNCIL, OXFORDSHIRE COUNTY COUNCIL, NETWORK RAIL)

There are plans for a £125 million redevelopment of Oxford train station and the surrounding areas to create a new transport interchange and a distinctive gateway to Oxford that will reflect Oxford’s status as an internationally renowned city.

OXFORD PARKWAY RAILWAY STATION

Oxford Parkway, located to the north of Oxford, fully opened in 2016 and operates between the city, London Marylebone and Birmingham. Annual passenger numbers from Oxford Parkway are approaching 1 million.

OXPENS SITE (OXFORD CITY COUNCIL, NUFFIELD COLLEGE)

Work on this £200 million mixed-use scheme is due to start in 2020 following a shortlist of three development partners. The scheme will comprise over 500 new homes, 110,000 sq ft of office and business accommodation along with a hotel and open public realm.

OSNEY MEAD KNOWLEDGE PARK (OXFORD CITY COUNCIL, UNIVERSITY OF OXFORD)

This site comprises over 44 acres to the west of the city centre and has been earmarked for redevelopment by The University of Oxford to create a knowledge park with laboratories, offices and 600 affordable homes for graduates and university staff.

WESTWAY PLACE (DORIC PROPERTIES, MACE DEVELOPMENTS)

Construction has started at this c.£85 million mixed-use scheme located c.0.25 miles to the west of the subject property. The scheme will comprise a 123-bed Premier Inn hotel, 261 student rooms, 140 residential units and ground floor retail including two foodstores.

STRATEGIC SITUATION The subject property provides arguably the best retail warehouse and trade location in the city occupying a highly prominent position on the south side of Botley Road (A420), the main arterial route from the A34 into the City centre from the west and the dominant retail warehouse and trade location in Oxford.

Immediately neighbouring the property is an established critical mass of retail warehouse and trade accommodation alongside a variety of others uses including residential and automotive. Nearby occupiers include Aldi, (to be) Home Bargains, Jewson, Currys/PC World Megastore, Pets at Home, Wren Kitchens, Screwfix, Waitrose and Johnson’s Mazda/Hyundai car dealership.

Immediately to the north, on the opposite side of Botley Road, is Seacourt Park & Ride while Oxford railway station is located less than a mile east at Frideswide Square.

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Lodge

PCs

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Court

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SEACOURTRETAIL PARK

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HINKSEY BUSINESS CENTRE

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MEADOWSIDE RETAIL PARK

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Greystones

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NEW BARCLAYHOUSE

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BUILDERS YARD

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TRADING ESTATE

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35

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Park View

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SEACOURT TOWER

Chapel

5

23

12

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14

Botley

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Warehouse

Hall

194

125

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Church

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For identification purposes only

RETAIL WAREHOUSE & TRADE PROVISIONOxford’s retail warehouse and trade counter provision is concentrated in two distinct areas of the City, with its dominant location along Botley Road.

An overview of the other schemes in Oxford are as follows:

BOTLEY ROAD CLUSTER

352,579 sq ft GIA.

Aldi, (to be) Home Bargains, Currys/PC World Megastore, Harveys, Pets at Home, Wren Kitchens, Screwfix, DFS, Carpetright, Dunelm, Hobbycraft, Halfords, Topps Tiles.

Rental Tone £15.00 - £29.75 psf.

Open A1 (non-food) & Bulky Goods.

SEACOURT RETAIL PARK

80,268 sq ft GIA.

B&Q, Decathlon, Sports Direct, Dreams, Costa Coffee.

Rental Tone £22.50 - £27.50 psf.

Open A1 (non-food).

OXFORD SHOPPING PARK, COWLEY 55,058 sq ft GIA. Boots, Next, Sports Direct, M&S

Food Hall, Burger King. Rental Tone £29.00 - £46.37 psf. Open A1 (non-food).

HORSPATH DRIFTWAY, COWLEY 47,394 sq ft GIA. Homebase, Aldi, Costa. Rental Tone £22.50 - £26.00 psf. Open A1 (part food).

TEMPLARS SHOPPING PARK, COWLEY 142,352 sq ft GIA. Sainsbury’s, Asda Living, Matalan,

TK Maxx, Pets at Home, Poundland, DW Sports, Pure Gym, Halfords, Shoe Zone, The Works, Carphone Warehouse, JD Sports.

Rental Tone £19.50 - £36.00 psf. Open A1 (non-food).

RENTAL COMMENTARYThe subject property is a very strong trading store within the tenant’s portfolio (top 10%) and as such represents an important strategic holding. This was highlighted when Wickes signed a 15-year reversionary lease in 2013 (commencing from 2023), in exchange for only 6 months’ rent free.

The most recent and directly comparable rental evidence in the vicinity is an open market letting to B&Q at Seacourt Tower Retail Park on 35,341 sq ft together with a 10,000 sq ft garden centre. B&Q have recently signed an Agreement For Lease for a new 15-year lease (no break) at £23.31 per sq ft. The tenant received 12 months’ rent free and the first review is to the higher of OMV (capped at 3%) or RPI (capped at 1.3% per annum compounded).

In our opinion the subject property occupies a stronger location than Seacourt with superior access and prominence and, therefore, the rent is underpinned by this new open market letting to B&Q.

TENANT DEMANDWe are aware of a number of potential large space requirements for this location including, amongst others, Lidl, The Range, M&S Foodhall, Sofology, Selco Builders Warehouse, Big Yellow, Lok n’ Store, Matalan, Smyths Toys, B&M and Barker & Stonehouse.

B4495

B4150

B4495

B4017

B4044

B4495

A4165

A4144

A4074

A4183

A4158

A4074

A4144

A420

A4142

A34

A34

A34

A34

A40

A44

A44

A40

A40

A40

A420

A420 A480

A480

OXFORDAIRPORT

Oxford

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Kidlington

Oxford

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DONNINGTONCOWLEY

NEWHEADINGTON

NORTHWAY

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KENNINGTON

LYEVALLEY

Universityof Oxford

Oxford Brooks

University

The Oxford Science Park1. Aldi and (to be) Home Bargains (TJ Morris)

2. Botley Road Retail Park (British Land)

3. DFS and Carpetright (West Midlands Pension Fund)

4. Dunelm, Halfords and Hobbycraft (Shell Pension Fund)

5. B&Q, Decathlon, Sports Direct and Dreams (British Airways Pension Fund)

6. Templars Shopping Park (PGIM Real Estate)

7. Oxford Shopping Park (LaSalle Investment Management)

8. Homebase, Aldi and Costa (Colliers Capital)

9. Oxford Trade Centre (CBRE Global Investors)

10. Horspath Trade & Industrial Estate (CBRE Global Investors & others)


Oxford Parkway

DESCRIPTION The subject property comprises a purpose built solus retail warehouse and trade unit extending to approximately 28,034 sq ft. The unit is of steel portal frame construction with an attractive part brick, part steel cladded façade with a brick and glazed return frontage to Botley Road. There is a garden centre to the rear of the property and outdoor project centre at the southern elevation. Access

and egress is two-way directly off Botley Road and there are approximately 124 customer car parking spaces providing a ratio of 1:226 sq ft of GIFA. There are an additional 264 car parking spaces outside of the demise servicing the wider retail park with no restrictions on use. Servicing is via a dedicated service yard to the southern elevation with a shared access through the adjoining properties rear service yard.

The unit is fitted out internally to Wickes usual trading format and in addition incorporates ‘Tool Station’ in approximately 15% of the ground floor area.

We understand Home Bargains has purchased the adjacent former Toys R Us unit for their own occupation which will also incorporate the doubling in size of the existing Aldi unit to c20,000 sq ft.

ACCOMMODATIONThe property comprises the following approximate gross internal floor area:

Sq Ft Sq M

Ground Floor 25,697 2,387

First Floor 1,327 123

Lobby 1,010 94

TOTAL 28,034 2,604


SITEThe site area extends to approximately 2.202 acres (0.891 ha). The site cover is therefore approximately 29%.

TENUREThe property is held Freehold under Title number ON157483.

PLANNINGThe property benefits from an effective Open A1 (non-food) planning permission.

TENANCYThe property is let to Wickes Building Supplies Limited by way of a 5-year reversionary lease that will expire on 23rd June 2023.

In September 2013, Wickes signed a 15 year reversionary lease that is set to commence on 24th June 2023 expiring on 23rd June 2038. Upon commencement of the reversionary lease the passing rent and subsequent rent reviews will be to the higher of the current passing rent or open market rental value.

The property therefore has a long and attractive term certain of approximately 18.6 years.

Botley Road Retail Park




TENANT COVENANTWickes Building Supplies Limited (Reg. No: 1840419) has an Experian Rating of ‘Very Low Risk’ and a Score of 100 out of 100.

Wickes Building Supplies Ltd is a wholly owned subsidiary of Travis Perkins Plc and currently trades from around 244 stores. It is the UK’s fastest growing DIY retailer with a market leading multi-channel offer that also encompasses the Tool Station trade business.

Wickes has recently reported strong like-for-like sales growth of 9.7% in Q3 2019, whilst the Tool Station division continues grow at an impressive rate with like-for-like sales growth of 15.4% over the same period.

A summary of their last three years reported accounts is set out below:

Wickes Building Supplied Limited Year End 30 Dec 2017 £’s Year End 31 Dec 2016 £’s Year End 26 Dec 2015 £’s

Sales Turnover 1,236,400,000 1,213,269,000 1,104,950,000

Profit Before Tax 56,000,000 65,403,000 60,133,000

Tangible Net Worth 239,900,000 304,109,000 404,992,000

ALTERNATIVE USESThe site benefits from strong underlying residual fundamentals and, in our opinion, would lend itself to a range of alternative uses (subject to planning).


FURTHER INFORMATIONFor further information, please contact either of the following:-

MARK POWELLT: 0207 494 6923 M: 07973 686042E: [email protected]

www.cwmoutoftown.co.uk

FRASER YARNOLDT: 0207 494 6941 M: 07795 810888E: [email protected]

VATThe property is elected for VAT and we would expect a transaction to be treated as a TOGC.

EPCEPC Rating of C – 51.

PROPOSAL Offers sought in excess of £11,890,000 (Eleven Million, Eight Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive Net Initial Yield of 5.50%, assuming purchaser’s costs calculated at 6.71%.

Misrepresentation Act:CWM Out of Town LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that:

1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser

or tenant 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;3. No person in the employment of CWM Out of Town LLP has any authority to make or give any representations or warranty in relation to these properties.

November 2019.

super prime long income retail warehouse & trade …...bromley gravesend gillingham shoreham...

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