ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE
PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 01 ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE
INVESTMENT SUMMARY
■ Romford is a town located in Greater London, within the London Borough ■ The subject property consists of five units, totalling 67,884 ft² across four retail of Havering. The town is located approximately 16 miles north east of warehouse units and a restaurant. Central London and 18 miles south west of Chelmsford. ■ The property is fully let on five FRI leases and currently produces a total rent ■ Within a 10 minute drive time of the subject property, CACI estimate the of £1,324,829 pa, reflecting £17.29 – £23.38 per ft² on the retail warehouse population to be 319,270. This increases to 831,969 within the 20 minute space and £23.69 per ft² on the restaurant. drive time catchment. ■ The retail park has a weighted average unexpired term of 11.2 years to expiry ■ The property is situated just south of the town centre and shares a road junction and 10.6 years to breaks. with the access to Queen’s Hospital. There is also a Morrisons/Residential development diagonally opposite. ■ We are instructed to seek offers in excess of £20,030,000 (Twenty Million and Thirty Thousand Pounds) for this freehold interest, subject to contract. A purchase at this level would reflect a net initial yield of 6.25%, assuming purchaser’s costs of 5.80%. PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 02
TOWN CENTRE
THE BREWERY
RESIDENTIAL DEVELOPMENT SITE
HOMEBASE
MORRISONS/RESI DEVELOPMENT SNOW AND ROCK ROM VALLEY WAY QUEEN’S HOSPITAL
ROM VALLEY WAY RETAIL PARK A10 03 ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE A414
PETT ITS A12 L M25 A N E 26 C N O
27/6 L
L
I E
R 5
7 R 1
O B
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Loughton Enfield L
A
N
E M25
M11 A10
East M
A V A Barnet Chigwell N
E P
E Y T R T D A406 O A I O 28 A T R Woodford D S IN A406 A L
A M SITUATION A12 N
E 1
A
A12 1
A127 8 2 1 5 A12 1 A
Rom Valley Way Retail Park is located in a prominent A1 Romford 29 A503 A12 position on the A125 (Rom Valley Way), adjacent to a WARDS ED W A10 Ilford Upminster ST 2 2 40,097 ft Homebase and a 8,500 ft Snow + Rock unit.
A406 W
MAV S Stratford NEY RO D AD R Dagenham A The property is opposite Queen’s Hospital and a
Barking W
D
S
E
D
T G
M25 S
A501 Y foodstore / residential development site. A11 R A12 U
Rainham C
A13T Romford R
A1020 E W M
A
A5
T A1203 Poplar LONDON E
A13T D A R O
London N R L S LONDO O The retail park is within walking distance from the town 30 O D City Airport G A100 R D E O L R centre, with the train station being located 800 metres U A102 Belvedere H Thur T
1 31 125 A202 A205 A to the north and the main high street approximately one A2 D H R RC A282 HU A3 C R ROM VALLEY WAY D O kilometre to the north. East A20 L M O Bexleyheath V RETAIL PARK 1A A Dulwich L L E Y OW LN A2 Dartford W 1B A A205 Y A20 Sidcup 2 AD REEN RO SH G RU HORNCH A23 URCH M25 ROAD Bromley 4 A12
LOCATION
Romford is a town located in Greater London, within the London Borough of Havering. The town is located approximately 16 miles north east of Central London and18 miles south west of Chelmsford.
The town benefits from excellent road and transport communications. The A12 runs to the north of the town, providing a direct route to central London and Chelmsford. Romford also benefits from easy access to the M25 at Junction 28, located 5 miles to the north east of the town.
Romford is easily accessible via train. Greater Anglia trains provide services from Romford to London Liverpool Street in a journey time of approximately 25 minutes.
London City Airport is located 10 miles to the south west of Romford. London City airport provides flights to a number of European destinations, serving approximately 3.3 million passengers a year. PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 04
DESCRIPTION
The subject property consists of five units, built over three phases and totals 67,884 ft² of gross internal retail and restaurant floor space. Phase one was built in 1988 and included units 1 and 2, phase two was built in 1998 and included units 4 and 5, and phase three involved construction of the Pizza Hut unit in 2005.
AREA UNIT TENANT M² FT²
1 MOTHERCARE UK LIMITED 2,772.5 29,843
2 CARPETRIGHT PLC 1,079.9 11,624
3 PIZZA HUT (UK) LIMITED 309.8 3,335
4 B&M RETAIL LTD 1,208.8 13,011
DEMOGRAPHICS 5 PETS AT HOME LIMITED 935.6 10,071
Within a 10 minute drive time of the subject property, CACI estimate the population TOTAL 6,306.6 67,884 to be 319,270. This increases to 831,969 within the 20 minute drive time catchment. The population is forecast to grow as follows: B&M are currently fitting out unit 4 and are looking to open for Christmas trading.
DRIVETIME FROM ROM VALLEY WAY RETAIL PARK The site comprises approximately 4.29 acres (1.73 ha) giving a site cover of 36.3%. 5 10 15 20 30 GB MINUTES MINUTES MINUTES MINUTES MINUTES AVERAGE The retail park benefits from 260 car parking spaces, which equates to a car parking ratio of 1:261 ft2. 5 year Population Growth 2014-2019 5.8% 6.9% 7.3% 7.2% 5.7% 2.8%
10 year Population Growth 2014-2024 11.2% 13.2% 14.0% 13.6% 11.1% 5.1%
Within a 20 minute drive time, gross family income is above average, with 74.5% of households earning over £30,000 per annum, compared to a national average of 61.9% (CACI). 05 ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE
9
A12 4 RETAIL WAREHOUSE PROVISION
B A L G O D R IN ROMFORD: A E A12 S O R 1 L 5 NORT D N D A O O 2 R O Retail warehouse supply in and around the town is estimated at 1.12m ft² IN W
A T H ST M N (Trevor Wood). E 3 18 R 1 B A
R
P The map opposite illustrates the main retail warehousing schemes in Romford:
P
U D ■ N R ME AVE Rom Valley Way cluster - Immediately to the north of the subject property there TO RL HOL A AIR C F is a Homebase and Snow & Rock which total 48,500 ft² of retail warehousing.
D R TH RD Rents are £18.35 and £18.25 per ft² respectively. N HEA PARK ER S T LE AS E W AD ■ RO INS The Brewery - This mixed use retail and leisure development totals some IA 6 R TO L VIC N 530,000 sq ft. The retail element benefits from an open A1 non food consent.
W Occupiers on the scheme include TK Maxx, Hobbycraft, Gap, JD Sports, Home
A T ERLOO Sense and Boots and it is anchored by a Sainsbury’s foodstore. Rents on 10,000 ft² OAD S R D NDON N A C units are around £30 per ft². L O D O R R A G N D H RD Romford O AM E O RO O W A L ENT D ■ R BR O Eastern Avenue Retail Park – This bulky goods park comprises some U SB H OR 5 T NE A12 RO 110,000 sq ft with occupiers including Currys, PC World, Dunelm, Carphone AD A 1 7 Warehouse and Poundstretcher. Top rents for the retail warehousing is in the region 2 5 R O of £23.00 per ft². M 5 D S ROM VALLEY WAY RO A V RCH A O CHU L
D U OL L RETAIL PARK ■ E Matalan, North Street - This is a stand alone unit on the north side of the town centre T Y W H
A S comprising 39,640 ft² let at £16 per ft². Y T
8 ■ Gallows Corner Retail Park - This 92,000 sq ft bulky goods scheme includes Halfords,
N ROAD USH GREE HOR AD Furniture Village, DFS, Magnet, Harveys, Next and Argos Extra. Top rents are around 124 R NCHURCH RO A £35 per ft².
■ B&Q Warehouse, Gallows Corner – This property sits diagonally opposite Gallows Corner Retail Park on the A12 and comprises 72,000 ft². The passing rent is £18.50 per ft². 1 Dunelm 4 Gallows Corner Retail Park 7 Homebase ■ B&Q Warehouse, Roneo Corner – Just to the south of the subject property on 2 Eastern Avenue Retail Park 5 Snow + Rock 8 B&Q Warehouse Hornchurch Road, and adjacent to a Tesco Extra, this is a standalone B&Q 3 Matalan 6 The Brewery 9 B&Q Warehouse Warehouse of 102,000 ft², with a passing rent of £18.25 per ft². PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 06
THE MALTI
Th e Seedbed Centre
PLANNING El Sub Sta
Units 1 and 2 (Mothercare and Carpetright): The Seedbed Centre These premises shall not be used other than for the retail sale of the following: ■ Home improvement products: “Do It Yourself” goods ■ Hardware and plumbing, building supplies ■ Furniture, furnishings ■ Carpets and floor coverings ■ Electrical goods ■ Motor accessories ■ Garden and associated products and ancillary items ■ and/or the occupation by Children’s World (now Mothercare) for the sale of any combination of maternity wear, baby goods, children’s shoes and clothes, toys and educational crafts, books, party equipment, furniture and furnishings and ancillary uses. El Su b Sta Units 4 & 5 (B&M and Pets at Home): These units shall be used for the sale of in any combination (as the retailer or retailers shall chose) of: ■ DIY goods ■ Furniture and furnishings ■ Carpets and floor coverings ■ Motor accessories, cycle & cycle parts and accessories ■ Gas and electrical goods and appliances ■ Pets, pet food and pet products River Rom ■ Office equipment and other associated products ■ Footwear and sports apparatus and other ancillary products
In addition, unit 4 (B&M) has recently been granted permission for the sale of food (excluding fresh or frozen goods) and drink products limited to a gross internal floor area of 120 m2.
Unit 3 (Pizza Hut): This unit is subject to a Class A3 restaurant consent.
Within any of the relevant consents, there is no upper floor space limit specified for Weir any of the units on the retail park. Furthermore, there is no minimum unit size restriction, so internal subdivision is acceptable without requiring further planning permission.
Copies of the planning permission are available on request. 07 ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE
MORRISONS DEVELOPMENT OPPOSITE ROM VALLEY WAY RETAIL PARK
Morrisons is bringing forward plans for redeveloping the current ice rink site off Rom Valley Way into a new Morrisons foodstore with new homes and a petrol station.
The scheme will comprise a major new modern and bespoke Morrisons foodstore (81,500 sq ft gross) with Customer Café, pharmacy, dry cleaners etc and will include:
■ Approximately 300 new jobs with training ■ A new petrol station and car wash ■ New homes – current plans are for 65 flats and houses, including a mix of 1, 2 and 3 bed properties ■ Approximately 500 car parking spaces across the site ■ Financial investment to enable the Council to build the new ice rink, swimming pool and leisure centre on the Mercury Gardens site in Romford town centre
The ice rink has subsequently been demolished. PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 08
TENANCIES
The property is subject to five full repairing and insuring leases with a total income of £1,324,829 pa. The average weighted unexpired lease term is 11.2 years to expiry and 10.6 years to breaks.
UNIT TENANT AREA FT² PASSING RENT RENT PSF START DATE EXPIRY DATE RENT REVIEW COMMENT
1 MOTHERCARE UK LIMITED 29,843 £581,959 £19.50 06/06/2013 06/06/2028 14/05/2016 Lease extension recently agreed.
2 CARPETRIGHT PLC 11,624 £203,420 £17.50 24/06/2013 20/06/2021 26/06/2016
3 PIZZA HUT (UK) LIMITED 3,335 £79,000 £23.69 04/11/2005 03/11/2030 04/11/2015 Tenant break option 03/11/2020.
New 10 year lease. Tenant fitting out. Vender to top-up 21 4 B&M RETAIL LTD 13,011 £225,000 £17.29 23/10/2014 22/10/2024 23/10/2019 months rent free. The Rent Review is capped at 2% PAC.
5 PETS AT HOME LIMITED 10,071 £235,450 £23.38 09/02/1998 08/02/2023 09/02/2018
TOTAL 67,884 £1,324,829 09 ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE
TENANTS’ COVENANTS
The property income is secured against five national multiple retailers. We have summarised their most recent accounts below:-
TENANT ACCOUNTS YEAR ENDING TURNOVER £000S PRE-TAX PROFIT £ 000S NET WORTH £ 000S D&B RATING
MOTHERCARE UK LIMITED 30/03/2013 570,638 -12,071 27,634 4A1
CARPETRIGHT PLC 26/04/2014 447,700 -7200 2,500 5A1
PIZZA HUT (UK) LIMITED 01/12/2013 230,106 -968 42,085 5A1
B & M RETAIL LIMITED 31/12/2012 935,229 88,323 171,867 5A1
PETS AT HOME LIMITED 28/03/2013 586,350 77,707 382,537 5A1
TENURE
Freehold.
VAT
Coming Soon! The property has been elected for VAT and it is anticipated the sale will be treated as a transfer of a going concern.
Artist impression of B&M Fascia PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 010 ing.com s adverti
PROPOSAL FURTHER INFORMATION k
We are instructed to seek offers in excess of £20,030,000 (Twenty Million For further information and in order to arrange an inspection, please contact:- and Thirty Thousand Pounds) for this freehold interest, subject to contract. A purchase at this level would reflect a net initial yield of 6.25%, Jonathan Perkins Robert Cosslett assuming purchaser’s costs of 5.80%. 020 7087 5376 (Direct) 020 7399 5371 (Direct)
07884 186881 (Mobile) 07884 184415 (Mobile) 020 7620 1205 www.cormac [email protected] [email protected] CORMACK
COPYRIGHT © JONES LANG LASALLE IP, INC. 2014. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. October 2014. igned & Produced by igned & Produced s De