EASTERN AVENUE, SHOREHAM-BY-SEA, BN43 6PD
Dunelm Store
R E TA I L WA R E H O U S E I N V E S T M E N T
E N T E R
Investment Considerations• Shoreham-by-Sea is well located and easily
accessible via the A259 to Worthing 8 mileswest and Brighton, 6.5 miles east.
• The town benefits from an affluent catchmentwith retail expenditure at £1,402 million,significantly above the PMA average of£924 million.
• Retail warehousing is very limited within thecatchment area, with many of the retailers inthe area trading well here as a result.
• The subject property is located in a prominentposition in close proximity to a B&Q andHalfords unit.
• The unit totals 24,780 sq ft, with 99 carparking spaces.
• The property is well let to the D&B rated 5A1covenant of Dunelm (Soft Furnishings) Limitedwith 6 years unexpired.
• Bulky goods planning consent.
• The current rent is low compared withother rents in the area, at £360,600 perannum, reflecting £14.55 per sq ft, with goodprospects for an uplift at the 2017 rent review.
• Potential to re-gear the lease with Dunelm.
• We are instructed to seek offers for theabove property at £5,015,000 (Five Millionand Fifteen Thousand Pounds), subject tocontract and exclusive of VAT. A purchaseat this level reflects an attractive net initialyield of 6.75%, based on purchaser’s costs of6.59%.
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Potential to re-gear the lease with Dunelm
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
SituationThe property is situated in a highly visible position on an elevated site overlooking Eastern Avenue, in close proximity to its junction with the A259 Brighton Road, the main route running through the town and linking Shoreham with Worthing, Hove and Brighton. The town centre and train station are located 0.4 miles west of the subject property. On the opposite side of Eastern Avenue is a McDonalds, a 15,155 sq ft Halfords unit and a 36,192 sq ft standalone B&Q unit. This cluster of retail warehousing forms the only retail warehousing in the vicinity.
The Council car park adjacent to the subject property is part of a potential development site, which includes a new Civic Centre. Any redevelopment here is likely to be a mixed use scheme and should further improve the vicinity.
LocationShoreham-by-Sea is an affluent seaside town and port in West Sussex, 8 miles east of Worthing, 6.5 miles west of Brighton and 58 miles south of London.
The town benefits from excellent road links, the A259 links the town to Worthing and Brighton. The A27 runs east west of the town, connecting to the A23 to the east which in turn links to the M23 and to Gatwick Airport. To the west, the A27 connects to the A24 which leads to the M25, and to the A3(M) and the M27, 36 miles west. Shoreham has a mainline railway station with direct trains running regularly to a number of destinations including Brighton (15 minutes), Portsmouth (57 minutes) and London Clapham Junction (1 hour 6 minutes). Gatwick Airport is located 32 miles north and is the second largest airport in the UK, serving over 40.2 million passengers annually.
LUTON
STANSTED
GATWICK
LYNEHAMHEATHROW
87
6
12
43 5
3 54
7
6
3130
4
5
2
8
9
10
11
2 134
14
13
4
3
1
11
10
99
14 1312
67
10
65
7
12
1110
9
8
7
8
5
1314
44
12
1
2 3
91110
12
1615
11
78
9
10
2019
1
32
4
56
1718
5
4
2
1
2524
22
8
7 1
4
5
29
28
8
72
3
6
5
4
8
7
9
10
9
10
14
13
12
11
10
9
11
2
26
5
3
1
M23
M1
M2
M27
M26
M25
M20
A3(M)
M40
M4
M3M25
M20
M1 A1(M)
M11
M40
M3
M1 1
M1 1
A36
A338
A346
A303
A354
A338
A338
A419
A31
A31
A436
A44
A40
A429
A40
A44
A44
A46
A46
A348 A3
38
A303
A31
A26
A23
A4
A41
A406
A10
A12
A13
A2A20A205
A3
A34
A3
A34
A5 A10
A505
A508
A421
A127A127
A40A418
A41
A4010
A413
A41
A43
A5
A509
A6
A1
A602
A10
A414
A12
A120A130 A1
31
A131
A134
A12
A130A420
A34
A43
A422A505
A259
A21
A229
A249
A21
A228
A21
A26
A22
A22
A22
A27
A26
A27
A23
A264
A283
A24
A272
A24
A264
A22
A2
A31
A33
A339
A34
A27
Hertford
WelwynGarden
City Ware
HatfieldHoddesdon
Royston
Biggleswade
Sa�ronWalden
HaverhillNewportPagnell
Sheerness
Chelmsford Maldon
Braintree
Bishop's Stortford
Sittingbourne
Ashford
Tonbridge
Uckfield
Crowborough
Bexhill-on-Sea
SeafordNewhaven
EastGrinstead
HaywardsHeath
LewesHailsham
SevenoaksOxted
Dorking
Horsham
Godalming
Chichester
Haslemere
Littlehampton
Petersfield
Ryde
Newport
FawleyHythe
Lymington
New Milton Cowes
Alton
Winchester
Romsey
Leatherhead
WindsorStaines
CroydonSwanley
Andover
Ringwood
Salisbury
Christchurch
Chippenham
Melksham Newbury
Devizes
Cirencester
Didcot
Dartford
Witney Kidlington
Tilbury
Chigwell
EpsomSutton
Kingston upon Thames
RichmondWoolwich
Barnet Enfield
Beaconsfield
Harrow
Henley-on-Thames
Letchworth
St Albans
Hitchin
Dunstable
Berkhamsted
Tring
Marlow
HemelHempstead
LeightonBuzzard
Thame
Abingdon
Bicester
Aylesbury
BanburyEvesham
Stevenage
Southend-on-Sea
Brentwood
Romford
Colchester
Basildon
Tunbridge Wells
Hastings
Eastbourne
Chatham
Crawley
BrightonHove
Worthing
BognorRegis
Portsmouth
Havant
Eastleigh
Basingstoke
Guildford
Woking
Reading
PooleBournemouth
Swindon
Cheltenham
Harlow
Watford
Luton
Amersham
HighWycombe
Oxford
Fareham
Gosport
SOUTHAMPTON
LONDON
Shoreham-by-Sea
Sand & Mud
MLW
ED & Ward Bdy
CCLW
MLW
River Adur
Shoreham Harbour
West Arm
4.3m
LB
Yard
Builders
Sl ip
wa
y
Riverside
Business Centre
B
Surry Court
34
53
24
6
386
39
3
El Sub Sta
50
Pashley
Court
1 to 4
372380
4
1
C
A
3 to 9
10 to 15
Glyndebourne Court
1 2
22
Shoreham-by-Sea
Glyndebourne
PH
to
Court
16
Station
370
MercuryHouse
62
384
382
1 to
36
388
ED Bdy
MLW
4.7m
5.4m
6.0m
5.7m
4.5m3.5m
3.7m
4.6m
Conveyor
Conveyor
Tk
Conveyor
WB
Tank
New Wharf
S Gantry
Fn
Free Wharf
LB
LB
WB
Track
HU
MP
HR
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AP
AVENUE
EASTERN CLOSE
EA
ST
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NU
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CORBYN CRESCENT
CO
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CR
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GORDON ROAD
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DR
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DOLPHIN
RO
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LY
N A
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NU
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GO
RD
ON
AV
EN
UE
HAM ROAD
ROAD
ROSSLYN ROAD
BRIGHTON ROAD
SL
MP 5.5
LC
El Sub Sta
The HamPlay Area
El Sub Sta
El Sub Sta
Allotment Gardens
Skatepark
24
1
5
87
104
Garage
21
Centre
Ham Business Centre
24
16
12
El Sub Sta
93
Builders Yard
2
130
23
71
40
78
38a38
14
11
8
58
17
57
Shelter
20
2
11
12
7
63
56Warehouse
26
90
8
95
1
85
Dolp
hin
Mew
s
368
18
21
Hall
Garage
1
Hall
1
Miniature
Rifle Range
17
14
Depot
67
15
6
Depot
Works
6
2
12
28
41
101
56a
12
1
15
2
14
66
11
Depot
73 to 75
15
Civic
39 to 41
Coastguard Lookout
24
Army Atc
31
118
6
1
Tank
Tank
1 t
o 3
Shelter
Depot
35
37
69 to 71
4.9m
Lennards Wharf
Travelling Crane
ADELAIDE SQUARE
DO
LP
HIN
WA
Y
Sub
Sta
El
El
Sta
Sub
Sta
Sub
El
Superstore
Works
Tank
Tanks
22
73
23
Warehouse
Warehouse
26
59
Factory
Tanks
D1
D5
Depot
33
El Sub Sta
21
45
Tank
Tank
0m 50m 100m 150m
Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:2647
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
Catchment PopulationShoreham-by-Sea forms part of the Brighton conurbation, along with Hove. Brighton’s primary catchment area comprises 511,000 people, with an estimated shopping population of 329,000 people ranking it 29th out of the top 200 PMA Retail Centres. CACI estimate there are 86,379 people living within a 10 minute drive time of the subject property, extending to 310,842 people within a 20 minute drive time. Brighton is a seaside resort of considerable character, an important tourist destination, retirement town and conference centre. The area attracts over 8 million visitors each year with total tourism expenditure being £780 million in 2012. It is also the most popular UK seaside destination for foreign tourists with 409,000 visitors in 2013.
The Brighton catchment population has above average affluence with retail expenditure being significantly above the PMA average of £1,402 million. Per capita in-store comparison expenditure in 2015 was £2,742 compared with the PMA average of £2,600. Retail warehouse expenditure per capita in 2015 was also substantially above average at £576 in Brighton compared with £543. The financial sector is an important source of employment in Brighton reflecting the presence of large organisations including Lloyds, Legal & General and American Express, which has its European headquarters in the city. Warranty provider, Domestic & General, has an office in the city. In November 2014, the company announced plans to recruit 110 additional staff at its insurance call centre.
Major employers in the Public Sector include the University of Brighton, University of Sussex, Brighton and Sussex University Hospitals NHS Trust, Sussex Police and the City Council.
Brighton also plays host to a sizeable creative industry. In particular, the city’s New Media cluster (digital, computerised or networked information and technology) has the highest concentration of digital companies in the UK; Disney operates two of its companies - Club Penguin and Black Rock Studio - from the city. Brighton has one of the highest rates of business start ups in the country. The Greater Brighton City Deal was signed in March 2014 with the aim of driving growth through investment in infrastructure and training to attract creative and technological businesses to the area. The deal aims to deliver more than 20,000 jobs over the next few years.
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
Retail Warehouse CompetitionRetail warehousing is very limited in Shoreham-by-Sea with the subject property being in one of the only 2 retail warehouse pitches for the town. The surrounding retail warehousing comprises standalone units let to Halfords and B&Q. 1.4 miles north of the subject property, close to the A27, is the Holmbush Centre which is owned by Tesco Stores. It comprises a 61,500 sq ft Tesco Extra unit and a 106,300 sq ft Marks & Spencer GM store. In close proximity is a 36,417 sq ft Next Home and Garden store, the first of its kind, and it was due to the success here that the retailer has rolled out the format across the country.
Retail warehousing in the general Brighton and Hove area is also limited, with overall provision per household of retail warehouse floorspace below the PMA average. Brighton itself has 2 main retail parks, Pavilion Retail Park and Brighton Retail Park. Pavilion Retail Park is located north of Brighton on the A270 with an open A1 consent and occupied by Halfords and B&Q. The scheme is being redeveloped to include 22,500 sq ft of space which is under offer to national retailers. Brighton Retail Park totals 42,432 sq ft of open A1 non-food consented space, let to M&S Simply Food, Next and Argos. Adjacent to this is Hollingbury Retail Park, a 2 unit scheme occupied by Matalan and Brantano. In Hove, located on the Old Shoreham Road, is Goldstone Retail Park, totalling 79,000 sq ft of open A1 non-food consented space with occupiers including Toys R Us, Pets at Home, DFS and TK Maxx. There are a number of solus units in the vicinity. A plan of the retail warehousing in the area is shown opposite.
A270 OLD SHOREHAM ROAD A270
A270
A27
S
HOREHAM
BYP
ASS
A27
SHOREHAM BYPASS
A27
A27
A27
A27
LONDON
RD
LONDO
N RD
LON
DON RD
MARINE PARADE A259
UPPER SHOREHAM RD
A259 BRIGHTON ROAD ALBION STREET
KINGSWAY KINGSWAY A259
SACK
VILL
E RO
AD
NEVILL ROAD
HANGLET ON ROADA293
DEVIL’S DYKE RD
DYKE ROAD AVENUE
WES
T ST
A270
LEW
ES R
OAD
LEW
ES R
OA
D
B&Q, Halfords
Dunelm
Marks & Spencer,Tesco
Homebase &Carpetright
FurnitureVillage
NEXT Home & Garden
Currys PC WorldOak
FurnitureLand
Barker & Stonehouse
Goldstone RP:81,300 sq ftTK Maxx, DFS, Toys R Us, Harveys, Pets at Home, Burger King, Nando’s, Wickes & Staples
Pavilion RP:72,459 sq ftB&Q and Halfords
Brighton RP:42,365 sq ftM&S Simply Food,Argos & Next
Hollingbury RP:35,000 sq ftMatalan & Brantano
SHOREHAM - BY - SEA
HOVE BRIGHTON
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
DescriptionThe subject property provides a standalone unit of 24,780 sq ft GIA. Internally, the unit is fitted out to Dunelm’s specification and benefits from a trading mezzanine floor. The store is being refitted next year and will include a coffee shop which proves popular with Dunelm’s customers and helps increase dwell time. The store serves a large catchment area, incorporating Hove, Brighton and parts of Worthing, and extending as far north as Crawley and East Grinstead. Dunelm have limited stores in the area; Rustington is their next closest store to the west, located 13.2 miles away. Eastbourne is the closest store to the east at 31.8 miles and there is a long drive time between the subject property and the Dunelm to the north in Croydon; 44 miles. Car parking is located to the front of the subject property providing approximately 99 spaces, equating to a ratio of 1 : 250 sq ft.
Servicing is situated at the front of the unit on the far western elevation. Both vehicular and servicing access and egress to the scheme is off Eastern Avenue. The total site area is 1.56 acres, providing a low site cover of 36.5%.
The subject property provides a standalone unit of 24,780 sq ft GIA.
LUTON
STANSTED
LYNEHAMHEATHROW
87
6
2
43 5
3 54
7
6
3130
4
5
2
8
9
10
2 134
14
13
4
3
1
11
10
99
14 1312
67
10
65
7
12
1110
9
8
7
8
5
1314
44
12
1
2 3
91110
12
1615
11
78
9
10
2019
1
32
4
56
1718
5
4
2
1
2524
22
8
7 1
4
5
29
28
8
72
3
6
5
4
8
7
9
10
9
10
14
13
12
11
10
9
11
2
26
5
3
1
M23
M1
M2
M27
M26
M25
M20
A3(M)
M40
M4
M3M25
M20
M1 A1(M)
M11
M40
M3
M1 1
M1 1
Hertford
WelwynGarden
City Ware
HatfieldHoddesdon
Royston
Biggleswade
Sa�ronWalden
HaverhillNewportPagnell
Sheerness
Chelmsford Maldon
Braintree
Bishop's Stortford
Sittingbourne
Ashford
Tonbridge
Uckfield
Crowborough
Bexhill-on-Sea
EastGrinstead
HaywardsHeath
LewesHailsham
SevenoaksOxted
Dorking
Horsham
Godalming
Haslemere
Rustington
Petersfield
Ryde
Newport
FawleyHythe
Lymington
New Milton Cowes
Alton
Winchester
Romsey
Leatherhead
Windsor
Croydon
Andover
Ringwood
Salisbury
Christchurch
Chippenham
Melksham Newbury
Devizes
Cirencester
Didcot
Dartford
Witney Kidlington
Tilbury
Chigwell
RichmondWoolwich
Barnet Enfield
Beaconsfield
Harrow
Henley-on-Thames
Letchworth
St Albans
Hitchin
Dunstable
Berkhamsted
Tring
Marlow
HemelHempstead
LeightonBuzzard
Thame
Abingdon
Bicester
Aylesbury
BanburyEvesham
Stevenage
Southend-on-Sea
Brentwood
Romford
Colchester
Basildon
Tunbridge Wells
Hastings
Eastbourne
Chatham
Portsmouth
Havant
Eastleigh
Basingstoke
Guildford
Woking
Reading
PooleBournemouth
Swindon
Cheltenham
Harlow
Watford
Luton
Amersham
HighWycombe
Oxford
Fareham
Gosport
SOUTHAMPTON
LONDON
Shoreham-by-Sea13.2 MILES 31.8 MILES
44 M
ILES
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
TenancyThe property is let to Dunelm (Soft Furnishings) Limited on a full repairing and insuring lease from 18 June 2007 for a term of 15 years, expiring 17 June 2022. The current rent per annum is £360,600, reflecting £14.55 per sq ft. Rent reviews are 5 yearly with the next review on 18 June 2017. The review is upwards only but to the lower of open market rent and £407,985 per annum, (£16.46 per sq ft).
This official copy is incomplete without the preceding notes page.
Tenure The property is held freehold with the site area delineated in red on the plan above.
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
Planning The property was originally granted permission for a retail warehouse unit in 1985, with the permitted use being for the sale of non-food durable goods, with the exception of DIY products. The original permission stated a maximum floorspace of 23,681 sq ft, however this was subsequently varied to allow a further 700 sq ft in 1996. Further details are available on request.
Tenant CovenantDunelm was established over 30 years ago by Bill and Jean Adderley, and the company still remains partially owned and run by the family today. Dunelm is now one of the UK’s leading home furnishing retailers, with over 130 stores across the UK employing in excess of 4,500 members of staff. The retailer benefits from a 5A1 covenant, as rated by Dun & Bradstreet. We set out below a summary of their most recent company accounts:
Tenant Year Ending Sales Turnover(000’S)
Pre Tax Profit (000’S)
Net Worth(000’S) D&B Rating
Dunelm (Soft Furnishings) Ltd04/07/2015 £835,805 £118,442 £88,072
5A128/06/2014 £730,152 £114,471 £31,018
ERV Dunelm are paying a rent reflecting £14.55 per sq ft with the next review due in June 2017. We believe the current rent looks low when compared to other properties in Shoreham, Brighton and Hove. Furthermore this is one of the few places in the country where, due to the limited supply coupled with high tenant demand, rents have increased over the past few years, and there have been uplifts achieved at rent review, as demonstrated below:
Address Tenant Transaction GIA (sq ft) Effective Date Rent (per sq ft) Comments
The Pavilion Centre, Hove Halfords New Letting 7,500 Jun-16 £32.00 Re-location to a new unit on the scheme.
184-186 Shoreham Road, Hove Barker & Stonehouse Assignment & lease re-gear
20,000 Feb-16 £26.00 Former DSG assigned to Barker & Stonehouse and the lease re-geared
Old Shoreham Road, Hove Currys PC World New letting of extended building
28,280 Oct-15 £27.50 Existing unit is being refurbished and extended. The new lease was agreed October 2015 with occupation to occur in circa December 2016.
Brighton Road, Shoreham B&Q Lease renewal 36,192 Jul-15 £15.06 New 10 year lease with 5 year break clause
Hollingbury Retail Park, Brighton Brantano Rent Review 10,000 Jun-14 £23.50 Previous rent reflected £22.50 per sq ft.
Hollingbury Retail Park, Brighton Matalan Rent Review 25,000 Jun-14 £20.00 Previous rent reflected £17 per sq ft.
Goldstone Retail Park, Hove TK Maxx New Letting 10,000 Nov-13 £34.00 New letting netting back to £28.05 per sq ft.
Upper Shoreham Road, Shoreham Next Home & Garden New Letting 36,417 Sep-10 £35.70 New letting of former Homebase. First Home & Garden store.
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD
EPC The unit has an EPC rating of B47.
VATThe property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction will be treated as a ‘TOGC’.
ProposalWe are instructed to seek offers for the above property at £5,015,000 (Five Million and Fifteen Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75%, based on purchaser’s costs of 6.59%.
Further InformationEllie Kirkby Tel: 020 7317 3790Mob: 07764 241898Email: [email protected]
Paul WilkinsonT: 020 7317 3799M: 07770 585313E: [email protected]
Wilkinson WIlliamsHeathcoat House, 20 Savile Row,London, W1S 3PR
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. June 2016. Designed and produced by Creativeworld Tel: 01282 858200.
Investment Considerations
DescriptionCatchment Population
ERV, Planning& Covenant
Location & Situation
Tenancy & Tenure
Retail Warehouse Competition
EPC, VAT, Proposal &Further Information
Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD