Pier Street, Burnham-On-Sea, Somerset, Ta8 1Bt

Home , Brean, Bridgwater, Clevedon, Keynsham, Minehead, Nailsea

PIER STREET, BURNHAM-ON-SEA, SOMERSET, TA8 1BT

WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY 2 B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT

INVESTMENT SUMMARY

// Burnham-on-Sea is a large seaside town in Somerset within Sedgemoor District Council, located 11 miles south of Weston-super-Mare and 11 miles north of Bridgwater. // The subject property is prominently located on the seafront at the junction of South Esplanade and Pier Street. // Purpose built retail unit totalling 29,824 sq ft with 313 car parking spaces adjacent, providing a superb ratio of 1:95 sq ft. // Total passing rent of £451,500 pa, reflecting a rent of £15.14 per sq ft. // Large site area of 3.65 acres, 15% site coverage. // Freehold. // Open A1 planning consent. // The property is let to B&M Retail Ltd (5A1) with in excess of 7 years unexpired.

Our client is seeking offers in excess of £6,050,000 (SIX MILLION AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive 7.00% Net Initial Yield, assuming 6.63% purchase costs. M5

M4 3 B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT

M48 NEWPORT

M4 M49 CATCHMENT & M4 PATCHWAY M4 FILTON DEMOGRAPHICS M4 CASTLE COMBE CARDIFF PORTISHEAD M32 A4 A46 BRISTOL CHIPPENHAM CLEVEDON Drive time population CORSHAM NAILSEA A4 A370 KEYNSHAM BOX BARRY A4 BATHAMPTON YATTON M5 A38 CONGRESBURY A39 BATH CHEW MAGNA WESTON-SUPER-MARE A368 BRADFORD-ON-AVON 23,961 30,890 LOCKING A368 PEASEDOWN TROWBRIDGE ST JOHN 10 minute drive time 15 minute drive time WINSCOMBE PAULTON A36 BREAN A370 MIDSOMER A350 A38 NORTON The catchment is moderately affluent with 71.9% classified A39 A371 within the ABC social groups (Oxford Retail Consultants).

BURNHAM-ON-SEA WOOKEY HOLE A37 FROME HIGHBRIDGE A39 MINEHEAD WARMINSTER The town is a popular tourist destination attracting a significant A361 SHAPTON MALLET DUNSTER KILVE number of day trips and extended visitor trips, particularly in PURITON A359 CODFORD A39 CANNINGTON GLASTONBURY A361 EVERCREECH the summer months. In 2014, over 1 million visitor trips were SIMONSBATH A39 EXFORD A396 BRIDGWATER STREET recorded with a total visitor spend of £45.2 million (SWRC). A358 A371 BRUTON WINSFORD A37 NORTH A303 HINDON PETHERTON MERE Burnham-on-Sea was identified recently as the fourth highest

BISHOP’S A361 TISBURY LYDEARD WINCANTON town for house price growth in the UK with average house WIVELISCOMBE M5 MOLLAND LANGPORT GILLINGHAM A372 SPARKFORD prices rising by 9.9% from 2016 to 2017 (Rightmove). MILVERTON TAUNTON A303 A359 SHAFTESBURY A38 Burnham-on-Sea is a popular commuting town for Bristol WELLINGTON MARTOCK due to its proximity and strong rail connections. Sedgemoor District Council’s emerging Local Plan has therefore identified LOCATION the requirement for 850 new homes in Highbridge and Burnham between 2015 and 2032. This is additional to Burnham-on-Sea is a large seaside town in Somerset within the 918 homes that are in the planning stages or that are Sedgemoor District Council, located 11 miles south of Weston- currently being developed. super-Mare and 11 miles north of Bridgwater. The M5 (junction 22) is located just 2.5 miles east of the town providing direct access to the national motorway network and wider South West region.

Highbridge and Burnham rail station is located to the south-east of the town centre providing direct services to Bristol and Exeter with fastest journey times of 50 minutes and 40 minutes, respectively.

Bristol Airport is located 18.5 miles to the north-east. GOLF LINKS RD

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A V R V R O L BURNHAM-ON-SEA D L R O R S E D T T T R O S D S E R D I E E C T N R U S S O E L L B SITUATION L C N M ST PAUL’S RD H AN G C O O IN R R U R W R B D T EA TT V Y I W C T A O Y R The subject property is prominently located on the seafront I A S T L at the junction of South Esplanade and Pier Street. The OV E LN

Y main town High Street is located immediately north and the A B3140 W

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A T L V E I O IL N K A PROVISION P T H P E R F O R A A C W N H O RS K TO F N O R LN L D E E Y L There is no other retail warehouse provision within the MAP P K W L

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15 minute catchment. Other foodstore provision within U C

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the 15 minute catchment includes: D W H R W W ALL A A ACE L M IL W E L LL M IS S O C R O T D R L N D R POPLES RO IS N W LE TO P Retailer GIA (sq ft) NSA (sq ft) WORS O DO R N T S TAN RD L M5 J22 N W M O A F AY R RI D IELD W Lidl, Oxford Street, NE S DR R PIL P T LM H L A O O M5 L RE 14,884 9,548 I D L G A CLOVER WAY N N R D H L

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Tesco, Ben Travers Way, D E 46,787 28,761 R B Burnham, TA8 1EZ E NO HIGHBRIDGE V R A TH A T VE S RD E ND E A W L Asda, Caxton Road, V R A O T 46,166 26,924 S M A Highbridge, TA9 3BX E Co-operative, Southwell 10,742 8,100 Crescent, Highbridge TA9 3BN 270 Construction has also commenced on a new 19,419 sq ft HOMES Aldi store at Isleport Business Park in Highbridge.

Areas defined by Sedgemoor MARKET ST HIGHBRIDGE & District Council’s emerging Local BURNHAM-ON-SEA WALROW Plan for residential development. A38 MARK RD

400 HOMES M5 5 B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT

DESCRIPTION PIER STREET The property comprises a purpose built supermarket constructed in 1990, which has since been re-fitted for the current tenant’s use. The property totals 29,824 sq ft arranged as follows:

Floor Sq Ft Sq M Ground Floor 23,796 2,210.65 First Floor 5,625 522.59 CAR PARK SPACES First Floor Plant 403 37.47 Total 29,824 2,770.71

There is a substantial demised car park to the west and south of the store that is sublet to the council who operate it on a pay and display basis. There are 313 spaces, which provides a superb ratio of 1:95 sq ft. In addition, there is a further area of car parking to the east of the store owned and operated by the council that sits outside of the ownership.

This site extends to approximately 3.65 acres, reflecting a low site coverage of 15%.

PLANNING CAR PARK SPACES

The planning consent provides for an Open A1 (including food) consent.

STEART STREET TENURE

Freehold. 6 B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT

TENANCY

The property is let to B&M Retail for a term of 35 years from 30th August 1990, providing in excess of 7 years unexpired. The lease was assigned to B&M in September 2016 from previous tenant WM Morrison Supermarkets Plc. Privity of contract applies.

The passing rent is £451,500 pa, reflecting £15.14 psf. There are 5 yearly rent reviews to OMV with the next review due in August 2020.

The demised car park is sub-let to Sedgemoor District Council for a term of 60 years from 23rd August 1990, expiring 22nd August 2050. The tenant must charge no more in tariffs than usual in respect of public car parks within the tenant’s area of jurisdiction.

TENANT COVENANT

B&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below.

GBP (000’s) 25/03/2017 26/03/2016 28/03/2015

Turnover £2,252,265 £1,902,557 £1,526,181

Pre-Tax Profit £198,006 £168,121 £151,063

Net Worth £498,412 £440,372 £333,599

The parent group’s most recent accounts to 31st March 2018 showed a 22% rise in group turnover to £2,976.3 million and a 25% jump in pre-tax profits to £229.3 million. Within these accounts, B&M reported a +4.7% increase in like-for-like revenues in the UK. PROPOSAL VAT

Our client is seeking offers in excess of The property is elected for VAT. £6,050,000 EPC & ENVIRONMENTAL (SIX MILLION AND FIFTY THOUSAND POUNDS), An environmental and ground conditions report is available upon subject to contract and exclusive of VAT. request, which concludes a low risk rating. A detailed Flood Risk Assessment has been undertaken that concludes the property is at A purchase at this level reflects an attractive very low risk of flooding equivalent to an annual chance less than 1 7.00% Net Initial Yield, assuming 6.63% purchase costs in 1000 (0.1%).

EPC Rating of C – 75.

FURTHER INFORMATION

Nick Richardson Will Collins T: 020 7312 7420 T: 020 7312 7405 E: [email protected] E: [email protected]

Misrepresentation Act 1967 Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that : (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. June 2018.

16250.001 / June 2018 Designed and produced by THE GROUP www.completelygroup.com