Post on 15-Jul-2020
transcript
• Well located Retail Warehouse investment 10 miles east of Belfast.
• Catchment population of 165,000 people within a 15 minute drive time.
• The only purpose built retail warehouse park in Newtownards.
• Open class 1 planning permission.
• Let to Matalan, TJ Morris, Poundworld and Burger King.
• Low rent psf providing excellent future growth prospects.
• 72.90% of current income is secured on tenants with 5A1 Dun & Bradstreet rating.
• WAULT of 4.59 to break and 7.43 to lease expiry.
• Planning permission secured for a new 23,303 sqft retail warehouse between Tesco Extra and Matalan.
• Offers are sought in excess of £8,750,000 for the long leasehold interest reflecting a Net Initial Yield of 8.25%.
• Low capital value psf of £161.75.
HIGHLIGHTS
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Newtownards is located 10 miles east of Belfast, at the head of Strangford Lough, with a resident population of over 30,000 people and a catchment population of approximately 165,000 people within a 15 minute drive time.
Newtownards is a prosperous market town and administrative centre, with major employers represented including Bombardier, Munster Simms, Denroy, Magellan Aerospace, Valpar, Ards & North Down Borough Council and South Eastern Health & Social Care Trust.
LOCATION & CATCHMENTThe area is also home to some of the Province’s most prominent agri-food companies such as Willowbrook Foods, Mash Direct and Pritchitts. In total, 8 of the top 30 manufacturing companies in Northern Ireland are based in the borough.
The retail park is located on the newly constructed A20 distributor road providing easy access to all of the surrounding catchment. Castlebawn is the sole purpose built retail warehouse park in Newtownards.
HOLYWOOD
BANGOR
GROOMSPORT
DONAGHADEE
MILLISLE
CARROWDORE
BALLYHALBERTKIRCUBBIN
PORTAFERRY
PORTAVOGIE
GREYABBEY
BALLYGOWAN
COMBER
NEWTOWNARDSBELFAST
NEWRY
STRABANE
BELFAST
NEWTOWNARDS
ENNISKILLEN
OMAGH
BALLYMENA
COLERAINE
LARNE
LETTERKENNY
LONDONDERRY
5 Minute drive
10 Minute drive
15 Minute drive
Not to scale/ For indicative purposes only
Not to scale/ For indicative purposes only3
BELFAST10 Miles
HOLYWOOD4 Miles
Ards Shopping Centre
CastlebawnRetail Park
BANGOR3 Miles
DESCRIPTIONCastlebawn Retail Park comprises a terrace of 4 retail warehouse units totalling 50,865 sqft, and a drive thru restaurant adjacent to a Tesco Extra of approximately 90,000 sqft (with PFS). The scheme benefits from 972 free car parking spaces.
The units, which were constructed in 2011, are of modern portal frame construction with mixed block and clad walls, concrete floors and metal decked roof cladding. The façade incorporates glazed shopfronts and entrance detailing including tenant signage.
PLANNING CONSENTThe existing scheme benefits from unrestricted A1 retail consent.
Planning consent has recently been granted for a gross 23,303 sqft unit (retail area 19,800 sqft ) between the Tesco Extra and Matalan. This permission is currently on the basis of A1 bulky goods consent.
A full planning summary is included in the Data Room.
C:100M:60Y:0K:0
The Investment is being offered on the basis of a 175 year leasehold interest at a peppercorn rent in respect of the retail warehouse terrace, the consented site between Tesco Extra and Matalan, the servicing area, and the drive thru restaurant.
The purchaser will be granted rights over the car park and all roadways within the development which are being retained along with the Tesco Extra and PFS by Tesco.
TENURE
Not to scale/ For indicative purposes only
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C:100M:60Y:0K:0
UNIT TENANT TRADING FASCIA
UNIT SIZE (GIA SQFT)
LEASE START
LEASE END NEXT REVIEW
BREAK CLAUSE
ANNUAL RENT (£/PA)
ANNUAL RENT (£/PSF)
COMMENTS
Unit 1 Poundworld Retail Limited
Poundworld + 10,223 24/10/11 23/10/21 24/10/16 £158,457 £15.50 Exclusivity for retailing at a price point of £1.00 or less
Unit 2 T J Morris Limited
Home Bargains
10,223 17/10/11 16/10/26 17/10/16 £153,495 £15.01 Rent Review capped at maximum of 2% pa compounded
Service charge capped at £1.00 psf plus annual RPI increase (current cap £11,825pa and no landlord exposure)
Units 3&4 Matalan Retail Limited
Matalan 30,419 19/09/11 18/09/26 19/09/16 19/09/21 £407,310 13.39
Drive Thru Restaurant
Windmill (NI) Limited
Burger King 3,229 28/05/12 27/05/27 28/05/17 27/05/24 £58,000* 15.48 Rent 10% of Turnover subject to a base rent of £50,000pax
Base rent reviewed to 80% of OMV
Current rent £58,000 (based on estimated turnover for year ending 27/05/18)
54,094 sqft £777,262
TENANT COVENANT
TENANCY SCHEDULE
UNIT TENANT TRADING FASCIA
% OF INCOME
YEAR ENDING
TURNOVER (000’S)
PROFIT/LOSS PRE TAX (000’S)
NET WORTH (000’S)
D&B RATING
RISK OF FAILURE
Unit 1 Poundworld Retail Limited
Poundworld + 20.60% 2017 488,846 -15,541 -6,719 N4 High
Unit 2 T J Morris Limited
Home Bargains
19.95% 2017 1,869,198 168,226 747,814 5A1 Minimum
Units 3&4 Matalan Retail Limited
Matalan 52.95% 2017 1,036,100 10,300 346,500 5A1 Minimum
Drive Thru Restaurant
Windmill (NI) Limited
Burger King 6.50% 2017 13,543 127 611 C3 Higher Than Average
Windmill has the largest Burger King franchise in NI with 22 units
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Offers are sought in excess of £8,750,000 (Eight Million, Seven Hundred and Fifty Thousand Pounds) for the long leasehold interest, reflecting a Net Initial Yield of 8.25% based upon the income of £777,262 pax (assuming purchaser’s costs of 7.68%).
Based on the low rents psf and asset management opportunities, this well located investment will provide excellent prospects for future rental and capital growth.
PROPOSAL
The passing rents range from £13.39 to £15.50 psf.
Other open consent retail parks in Northern Ireland reflect the following rents:
RENT PROFILE
RETAIL PARK RENTAL TONE
Boucher Shopping Park, Belfast £32.50 psf
Showgrounds Retail Park, Omagh £23 psf
Lisnagelvin Retail Park, Londonderry £20 psf
Orritor Road Retail Park, Cookstown £15 psf
The market for good quality retail warehouse investments remains strong.
Recent retail warehouse investment sales include:
INVESTMENT MARKET
RETAIL PARK PRICE NIY
Strabane Retail Park (2018) £3.25m 8.00%
Great Northern Retail Park, Omagh (2017) £9.175m 8.10%
Lesley Retail Park, Strabane (2017) £5.0m 8.50%
Damolly Retail Park, Newry (2016) £30.75m 7.40%
Lisnagelvin Retail Park, Londonderry (2015) £16.75m 6.50%
Showgrounds Retail Park, Omagh (2014) £27.0m 7.00%
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CONTACT
Michael PierceM: 077 7622 4114
E: michael.pierce@cushwake-ni.com
Robert ScottM: 078 1574 2152
E: robert.scott@cushwake-ni.com
Cushman & Wakefield5 Oxford Street,
Belfast, BT1 3LA
T: 028 9023 3455
W: www.cushmanwakefield-ni.com
Disclaimer: Cushman & Wakefield / Morgan Williams. June 2018.McCombe Pierce LLP and Morgan Williams for themselves and for the vendors or lessors of this property for whom they act, give notice that: (I) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; McCombe Pierce LLP and Morgan Williams cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; (iii) no employee of McCombe Pierce LLP and Morgan Williams has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents quoted in these particulars may be subject to VAT in addition; (v) McCombe Pierce LLP and Morgan Williams (and its subsidiaries where applicable) will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.
Tom WatsonM: 078 5000 6070
E: tom@morganwilliams.co.uk
Mark MorganM: 078 0264 4068
E: mark@morganwilliams.co.uk
Geoff PhillipsM: 079 3955 9508
E: geoff@morganwilliams.co.uk
Morgan Williams21 Hanover Square,
London, W1S 1JW
T: 020 7493 4455
W: www.morganwilliams.co.uk
Environmental surveys will be available in the Data Room.
SURVEYS
The property is registered for VAT
VAT
Unit 1 B50
Unit 2 C54
Unit 3&4 D82
Drive Thru C72
Full details are available upon request
EPC
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