well secured retail warehouse investment with development ... · well secured retail warehouse...

WELL SECURED RETAIL WAREHOUSE INVESTMENT WITH DEVELOPMENT OPPORTUNITIES

THE RANGE, CHALON WAY, ST HELENS, MERSEYSIDE WA10 1BF


INVESTMENT SUMMARY

• Retail Warehouse trading as The Range situated within St Helens on a highly prominent site fronting the A58 and within walking distance of the town centre

• In total provides 66,549 sq ft on a site of 6.34 acres • Let to The Range at a rent of £521,126 pa. which has

a guaranteed fixed uplift to £575,365 pa in August 2022.

• Low rent equating to £8.43/sq ft • Longer term redevelopment potential for the whole

together with shorter term infill opportunities.

• We are instructed to seek offers in excess of £7,515,000 (Seven Million Five Hundred And Fifteen Thousand Pounds) which reflects an attractive net initial yield of 6.5% net of costs at 6.66%, subject to contract and exclusive of VAT.

• The yield will rise to 7.18% in August 2022, through the fixed rental uplift in the lease to The Range.


1115

61

1021A

291

121

115

41

10 14

M65

M65M6

M55

12

11

11

10

10

5

2

3

4

44

4

5

5

5

6

67

89

10

11

12

13

14

8

6

7

1

3

9

98

1011

1413

1617

19

19

20

20

21

21

22

20

21

22

23

24

25

26

27

28

30

29

31

32

19

18

17

16

15

14

8 7 6

7

5

54

3 3

3

3

2

3

3

34

1

3

2

1

2 2

27 2625

24

23

12

9

87

65

4

3

2

1

M606

M621

M1A1(M)

M18

A1

A1(M)

M1

M1

M1 M62

38

37

36

34

33 32

32

31

30

35

36

38

29 30

31

28

44

45

46

3232a

47

45

44

26

25

24

23

37

33

Shipley

M56

M53

M62

M58

M6

M6

M6

M60

M602

M60

M67M62

M62M66

M61

7

BOLTON

CHORLEY

Leyland

BURY

WALKDEN

SWINTON

DELPH

ROCHDALE

Rawtenstall

Blackburn

Preston

SOUTHPORT

Blackpool

MANCHESTER

OLDHAM

Huddersfield

Halifax

WIDNES

ELLESMEREPORT

BIRKENHEAD

WALLASEY

BOOTLE

HESWALL

SPEKE

SALE

STOCKPORT

ALTRINCHAM

WILMSLOW

ST HELENS

MACCLESFIELD

Congleton

StokeOn-trent

Stone

Stafford

Nantwich

Wrexham

NORTHWICHNORTHWICH

LIVERPOOL

AINTREE

WARRINGTON

FLINT

Holywell

Rhyl

Rhuddlan

Denbigh

Ruthin

CorwenLlangollen

St. Asaph

Colwyn Bay

Llandudno River Mersey

Mersey Gateway

BirkenheadTunnel

KingswayTunnel

LIVERPOOLJOHN LENNON

AIRPORT

MANCHESTERAIRPORT

CHESTER

Prestatyn

Bangor

Llanfairfechan

Hollyhead

Llangefni

Anglesey

Llanrwst

Benlech

Beaumaris

BradfordLeeds

Rotherham

Sheffield

Bolton uponDeane

Harrogate

Wakefield

Barnsley

Chesterfield

BUXTON

Norton Lees

RUNCORN

LeedsBradfordAirport

A55

A55

A6

A56

A59

A59

A59

A6

A582

A583

A583

A587

A584

A671

A58A666

A666

A646

A681

A646

A629

A644

A576

A513

A53

A34A534A530

A34

A525

A519

A519

A518

A518

A51

A51

A41

A5013

B5405

A53

A51

A51

A49

A534 A534

A41A500

A500

A527

A50

A53

A523

A623

A520

A520A34

A34

A494

A5

A5

A470

A525

A547

A547

A541

A544

A548

A548B5381

A473

A50

A55

A487

A55

A5

A5

A5

A470

A58

A64

A61

A58

A63

A6120

A610

A660

A658A650

A65

A658

A61

A59

A603

A61

A6102

A617

A61

A619

A60

A60

A57 A57

A57

A616

A695

A629

A631

A633

A630

A642

A628

A635

A5117

A55

A56

A34

A34

A34

A345 A628

A58

A627

A6

A6

A56

A49

A54

A54

A548

A494

A550

A553

A548

A540

A41

A41

A41

A49

A566A537

A537

A523

A566

A533

A580

A557

A580

A5300

A5058

A533

LOCATION

St Helens is located in Merseyside, forming part of the wider Liverpool city region. The town lies approximately 24 miles West of Manchester, 14 miles East of Liverpool and 10 miles North West of Warrington.

St Helens is strategically located adjacent to the national motorway network. The M62 (Junction 7), the A580 dual carriageway and the M57 (Junction 2), all provide links to Manchester, Liverpool, Warrington and the North West region. There is a bus service which connects St Helens to Wigan, Liverpool and Warrington, the closest bus stop is a 2 minute walk from the park.

Chalon Way is located just 0.5 miles West of St Helens Railway Station. Providing local connections to the North West via Northern Rail, together with services to London Euston via Wigan and Warrington within 2 hours 30 minutes. It also provides services to Liverpool and Manchester.

Liverpool John Lennon Airport is the nearest international airport, located approximately 15 miles from St Helens. Manchester Airport, the largest international airport in the North West, is located approximately 30 miles east of St Helens town centre.

St Helens is strategically located adjacent to the national motorway network.

THE PROPERTY

M6

M62

M57

J6/1

J2

J7

J9

J22

J23

J4

J4

A580A580

A580

A580

A49

A49

A570

A58A58

St Helens Roa

d

St H

elen

s Li

nkwa

y

A57 Warrington Road

Pa

rk Road

Liverp ool Road

A57 Warrington Road

ST HELENSKNOWSLEY

HAYDOCK

HUYTON

Gullivers World Theme Park

Knowsley Safari

Newton-Le-Willows

BurtonwoodPrescot

Bowring Park

Knowsley Business Park

St Helens Central

Thatto Heath

Eccleston Park

Whiston

Huyton

Prescot Rainhill

St Helens Junction

Earlstown Newton-Le-Willows

SAT NAV:WA10 1BF

THE PROPERTY


SITUATION

The property is prominently situated fronting Chalon Way at its junction with Linkway West (A58) which is the main ring road around the town centre, but also within a 5 minute walk of the town centre, and the main retailing provisions.

Nearby occupiers include a Mercure Hotel a Multi-Storey car park, Cineworld and Pizza Hut. The town’s two main shopping centres, the Hardshaw Centre (115,000 sq ft) and the Church Square Shopping Centre (237,000 sq ft) are both within a short walk. Tenants in these shopping centres include; Argos, Poundland, Marks and Spencer, B&M and Boots.

The total population within St Helens primary retail market is estimated at 157,000 at the end of 2017.

CATCHMENT & DEMOGRAPHICS

• The total population within St Helen’s primary retail market is estimated at 157,000 at the end of 2017.

• The nearest main competing towns to St Helens are Widnes (8 miles) and Warrington (10 miles)

• The town has significantly above average proportion of adults of working age and average levels of car ownership compared to other UK locations.

• St Helens has an estimated shopping population

of 102,000 with a wider retail catchment of 219,000.

The town’s two main shopping centres are both within a short walk.

A58 LINKWAY

CHURCH SQUARE SHOPPING CENTRE

THE HARDSHAW CENTRE

WILKO

PIZZAHUT

CINEWORLD


DESCRIPTION

The Range is a former Tesco supermarket being of brick construction under a metal pitched roof accessed via a double glazed aluminium framed entrance atrium developed in the early 1980’s

Internally it provides open plan retail space which the tenant has fitted out to its usual trading format. There is additional ancillary space together with a warehouse at the rear which is accessed off a separate service yard.

Extensive car parking for 400 vehicles is provided to the front of the building. This offers a very low parking ratio of 1 car space per 166 sq. ft. (55 spaces included in the McDonalds demise).


ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice on a gross internal area basis (GIA) and provide the following approximate areas:

Unit Area (sq ft) Area (sq m)

The Range 61,789 5740.40

McDonalds 4,760 442.26

Total 66,549 6182.66

The site totals 6.34 acres ( 2.57 hectares) having a low site density of 25%.

TENURE

Freehold.

TENANCY

The property is subject to two leases as highlighted below producing a current income of £521,126 pa which will have a guaranteed uplift to £575,365 pa in 2022.

Unit 1Let to CDS (Superstores International) Limited by way of a 15 year FRI lease from 7th August 2012 at a current rent of £521,126 pa. There is a fixed rental uplift on 7th August 2022 to £575,365 pa.The tenant trades as The Range.

Unit 2Let to McDonald’s Restaurants Limited by way of a 999 year FRI lease from 27th March 2019 as a peppercorn.

The property is subject to two leases producing a current income of £521,126 pa which will have a guaranteed uplift to £575,365 pa in 2022.


TENANT INFORMATION

CDS (Superstores International) Limited - T/a - The Range. Following the opening of their first store in 1989 Plymouth, The Range is now one of the fastest growing retailer in the UK. With over 150 stores nationwide, they stock more than 65,000 products across 16 different departments, from Homewares and Furniture to DIY and Art Supplies.

The company have a current D&B Rating of 5A1 representing minimum risk of business failure and an overview of their accounts are summarised below.

Year to date Turnover Pre Tax Profit Net Worth

29th January 2017 £761,287,000 £67,203,000 £144,727,000

29th January 2016 £674,203,000 £57,032,000 £190,245,000

29th January 2015 £565,064,000 £57,299,000 £166,972,000


OVERVIEW OF RETAIL WAREHOUSE OFFERING WITHIN ST HELENS

St Helens has a good retail warehouse offering with over 716,000 sq ft of floor space ranking it 61 of the PROMIS centres. The town has a number of solus units although 60% of the floor space is provided on the two parks, Ravenhead Retail Park and St Helen’s Retail Park which are both within 1 mile of the property.

Ravenhead Retail Park – circa 372,000 sq ft owned by Hammerson where rents range between £13.50 - £28.00 per sq ft. Tenants include B&Q, Next, Boots, DW Sports and Pets At Home.

St Helen’s Retail Park – circa 120,000 sq ft owned by UBS/Triton where rents range between £12.50 - £18.00 per sq ft. Tenants include Dunelm, B&M ,TK MAXX and Aldi.

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. April 2019. RB&Co 0161 833 0555. www.richardbarber.co.uk

PROPOSAL

We are instructed to seek offers in excess of £7,515,000 (Seven Million Five Hundred And Fifteen Thousand Pounds) which reflects an attractive net initial yield of 6.5% net of costs at 6.66%, subject to contract and exclusive of VAT.

The yield will rise to 7.18% in August 2022, through the fixed rental uplift in the lease to The Range.

THE RANGE AND MCDONALD’S DRIVE-THRU CHALON WAY, ST HELENS, MERSEYSIDE WA10 1BF

ENERGY PERFORMANCE CERTIFICATE

A set of EPC’s are available on request. The ratings are B44 for The Range and B33 for McDonalds.

PLANNING

The existing planning is to use The Range unit for the sale of A1 comparison goods and A3 and A5 for the McDonalds restaurant.

In January 2010 planning consent was granted for the redevelopment of the site for up to 25,850 sq m of comparison retail space. Further information can be provided to interested parties.

VAT

We are advised that the property is elected for VAT purposes and therefore the sale of the property will attract VAT. It is anticipated that the sale will be treated as a transfer of a going concern.

FURTHER INFORMATION

If you wish to view the property or require any further information please contact the individuals below. In addition further information can be found at www.avisonyoung.com/14614

David Winterbottom0161 956 410307836 225 [email protected]

Adam Wildig 0161 956 402907739 325 [email protected]

well secured retail warehouse investment with development ... · well secured retail warehouse...

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