tesco express investment abbey road / rawlinson street ... · tesco express investment abbey road /...

Tesco Express Investment Abbey Road / Rawlinson Street, Barrow-in-Furness, Cumbria LA14 1BS

Tesco Express Investment Abbey Road / Rawlinson Street Barrow-in-Furness Cumbria LA14 1BS

•Situated fronting the principal road into Barrow-in-Furness opposite the towns National Rail station

•Let to Tesco Stores Limited (D&B 5A1)

•New 20 year lease from 10 July 2012 (TBO 10 years)

•5 yearly upward only reviews linked to RPI (collared and capped - 1% - 4%)

Tesco Supermarket Investment

•£53,000 per annum (£12.62 psf)

•Freehold

•Offers in the region of £770,000 (STC)

•Attractive Net Initial Yield of 6.5%


Barrow-in-Furness Barrow-in-Furness is the main administrative and commercial centre within the Lake District. It lies on the south-west coast of Cumbria, approximately 34 miles from junction 36 of the M6, 33 miles from Kendal, 23 miles from Windermere and 48 miles from Lancaster. Manchester is located 70 miles to the south.

Barrow-in-Furness railway station provides connections to Carlisle to the north and Lancaster to the east. These in turn provide access to London and the wider railway network.

According to PMA, the total population within the Barrow primary catchment area is 108,000. The estimated shopping population of Barrow is 71,000.

Barrow’s primary catchment extends to 108,000 people with an estimated shopping population of 71,000 people.

TESCO EXPRESS


Barrow is also home to one of the UK’s largest concentrations of advanced manufacturing employment and low carbon energy firms.

Economy Very few areas of Britain have such an assured economic future derived from investment in long-term growth projects as Barrow-in-Furness and thus offers the town a large and sustainable workforce all living and working in the area. Recent project awards include:

• 50 Year submarine contract to BAE Systems Maritime who currently employ 5000 people.

• West Cumbria's civil nuclear decommissioning and new build activities will create more than 3000 jobs over the next 15 years.

Barrow is also home to one of the UK’s largest concentrations of advanced manufacturing employment and low carbon energy firms.

• The Glaxosmithkline biopharmaceutical manufacturing investment worth an estimated £350m has a contract for 50 years and a demand for 500 workers

• Global oil and gas companies such as Gyrodata and Expro servicing subsea engineering needs worldwide

• Irish Sea offshore oil and gas resource exploitation starting with the Rhyl Gasfield

• East Irish Sea offshore windfarm including three long term operation and maintenance bases (25 year contracts), the fourth having just received planning consent will create a further 83 jobs.


Situation The property occupies an extremely prominent position fronting Rawlinson Street on the corner of Abbey Road opposite Barrow-in-Furness Railway Station. Abbey Road is the main road into Barrow-in-Furness town centre some 0.5 miles away. The busy suburban location is surrounded by a densely populated residential area. Commercial occupiers in the immediate location include Wetherspoons, the Duke of Edinburgh Hotel and Kwik Fit.

TESCO EXPRESS


Description The property will comprise a reconfigured retail unit to provide a semi-detached convenience store extending to 4,200 sq ft with a surfaced car park for 13 cars.

The shop units are all of regular configuration serviced from via a rear/side servicing yard.

RAW

LINSO

N

300

298

2

Tesc

o(4200 sq

ft)

Gross

Intern

al Sales a

rea

Unit D(1

195sqft)

Gross

Intern

al Sales a

rea

Unit B

(899 sq

ft) G

ross

Intern

al Sales a

rea

Unit C

(1031 sq

ft) G

ross

Intern

al Sales a

rea

1:15 R

amp M

in

Goods In

Goods In

1:200 SCALE PROPOSED BUILDING PLAN

Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition). The property has the following approximate gross internal areas:

TESCO Sq m Sq ft

Ground Floor 390.19 4,200

TOTAL 390.19 4,200

Energy Performance Certificate An Energy Performance Certificate will be provided on completion of the tenants fit out works.

TenureFreehold.


Tenancy The property is let Tesco Stores Limited for a term of 20 years with effect from 10 July 2012. The tenant has an option to determine the lease at the expiry of the 10th year. The initial rent of £53,000 per annum is reviewed upwards only every 5 years in line with the RPI (All Items), collared and capped at 1% and 4%.

Competition Analysis There are only 3 competing convenience stores within a 1.5 miles radius (5 minute off peak drive time).

The Co-operative Food 38 Ainslie Street 0.4 miles away

The Co-operative Food 81-83 Roose Road 1.1 miles away

The Co-operative Food Island Road 1.4 miles away


Covenant Status Tesco Plc is one of the largest retailers in the world. In the UK Tesco operate approximately 3,000 stores ranging from their ‘Extra’ to ‘Express’ formats and dominate the food retailing sector with current market share just over 30%. Their closest competitor is Asda at 17.6%. Outside the UK, the business operates over 3,350 stores globally.

UK store leases are held under Tesco Stores Limited, the Plc’s main subsidiary, and we have set out below rating assessments of the covenant strength with some summary financial information.

Moody’s Investment Rating BAA1

Experian Delphi Rating 100 (Very Low Risk)

Dun & Bradstreet Rating 5A1

Feb 2011 Feb 2010 Feb 2009

Sales Turnover £40,149,000,000 £38,742,000,000 £38,027,000,000

Profit before Tax £2,243,000,000 £2,419,000,000 £1,748,000,000

Tangible Net Worth £6,954,000,000 £6,515,000,000 £5,475,000,000

Further information is available at www.tescoplc.com

VATVAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a transfer of a going concern.

ProposalOur client is seeking offers in excess of £770,000 for their freehold interest. A purchase at this level reflects a 6.5% net initial yield, after deducting purchase costs at 5.8%.

is one of the largest retailers in the world. In the UK Tesco operate approximately 3,000 stores


MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Designed and Produced by Ask 0161 976 1836. February 2013.

For further information or to arrange an inspection, please contact:

Mark Powell Tel: 07825 077724 Email: [email protected]

Simon Adams Tel: 0845 450 4444 Email: [email protected]

tesco express investment abbey road / rawlinson street ... · tesco express investment abbey road /...

Documents