Wickes Building Supplies Limited Moor Street, Bury, Bl9 5Aq

WICKES BUILDING SUPPLIES LIMITED MOOR STREET, BURY, BL9 5AQ

OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY

• The town of Bury lies 10 miles to the north of Manchester city centre.

• Estimated primary catchment of some 275,000 people.

• Benefits from excellent road communications being situated close to Junction 2 of the M66 motorway, providing immediate access to the M61, M62 and M60 motorways.

• The property is situated in Bury’s ‘retail core’ within close proximity to The Rock Shopping Centre and Woodfields, Moorgate, Angouleme, and Hope Mill Retail Parks.

• Standalone unit totalling 28,460 sq ft.

• Open A1 (food and non-food) planning consent.

• Let to the undoubted 5A1 covenant of Wickes Building Supplies Limited.

• New 20 year lease from 22 December 2015. Tenant break at year 10 with a £200,000 penalty.

• Current rent of £334,405 per annum, reflecting £11.75 per sq ft.

• Freehold.

We are instructed to seek offers of £4,485,000, subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 7.00% (assuming purchaser’s costs of 6.57%).

2 WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

55 671 P 60 1 666 6 677 P 621 DEMOGRAPHICS 606 606 Blackurn 66 62 5 65 5 62 65 66 The total population within the Bury Levels of car ownership and home catchment area is circa 275,000 people, ownership within the catchment are above 60 62 56 6 extending to a population of over 636,000 the GB average, which indicates an affluent 62 62 people living within a 20 minute drive car-borne catchment population. S 66 62 time of the subject property. The town R 67 Over the past 15 years, total employment 66 is projected to see a healthy growth in 570 in Bury has increased at a faster rate than 6 61 62 population over the period to 2020, Bury 1 comparable with the average for centres of the PROMIS average. Total average weekly 666 earnings are in line with the national this size. 5 62 average, whilst the town’s current rate 66 O 576 58 P Reflecting the demographic profile of unemployment is below the national 627 56 50 62 and spending habits of the catchment average. 665 62 62 6 616 population, per capita retail spending levels 60 50 Mancester 601 are comparable with the PROMIS average. 57 S 57 6 60 510 62 5

57 S 62 557 56 S 50 56 555 53 R 56 Blackurn 557 6 65 5 52 6 275,000 56 61 T 56 556 6 62 E R TOTAL POPULATION WITHIN BURY

R LOCATION 636,000 Bury is one of 10 metropolitan boroughs that 66 T TOTAL POPULATION comprise the Greater Manchester conurbation, 10MILES 6 MILES Rocdale located approximately 10 miles north of 5 WITHIN A 20 MINUTE 5 Manchester city centre, 7 miles west of Rochdale DRIVE-TIME CATCHMENT NORTH OF EAST OF BOLTON 5 and 6 miles east of Bolton. Bury 627 MANCHESTER 62 Bolton 56 R The town benefits from excellent road R communications, being situated approximately The town also benefits from an excellent public 61 2 miles west of Junction 2 of the M66 motorway, transport network with GMPTE Metrolink Oldam providing immediate access to the M61, M62 tram providing a direct service from Bury to P 60 KEY and M60 Manchester orbital motorway and Manchester city centre and Manchester intercity Subject property ultimately to the M6 and M1 motorways. railway stations, with an average journey time of 60 S 62 circa 30 minutes. The service also connects to 10 minutes drive-time 602 U Salford Quays and Altrincham. E Mancester 20 minutes drive-time

3 WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

RETAILING IN BURY

Bury dominates the retail landscape to the north of Nearby retail warehouse schemes include: 3. HOPE MILL RETAIL PARK 5. CROSTONS RETAIL PARK Manchester, benefiting from a lack of quality retail (F&C UK REAL ESTATE INVESTMENTS) (STANDARD LIFE INVESTMENTS) competition in the neighbouring towns of Bolton 1. WOODFIELDS RETAIL PARK The park provides 35,000 sq ft across 3 units This park is occupied by a 10,000 sq ft Aldi, and Rochdale. (BRITISH LAND) let to Pets at Home, Smyths Toys and Bensons a 9,300 sq ft unit let to Home Bargains and a Anchored by an 85,000 sq ft Tesco, the park’s for Beds at rents between £14.00 and 41,000 sq ft unit, formerly let to B&Q, which The town’s retail provision is focused around The tenants include Next, Boots, Currys, JD Sports £16.00 per sq ft. B&M Bargains have recently taken. Rock Shopping Centre where retailers include and Sports Direct with retail warehouse rents Primark, M&S, Next, Debenhams, H&M, River between £27.50 and £28.25 per sq ft. There is There is also a 30,000 sq ft Matalan unit 6. BRIDGE HALL INDUSTRIAL PARK Island and Topshop. There is also Mill Gate also a McDonald’s drive-thru at a rent of circa adjoining the park, at a rent of circa £13.25 per (BRITISH LAND) Shopping Centre, retailers here include BHS, £31.50 per sq ft. sq ft, owned by High Point Estates. A 97,500 sq ft B&Q store, let until September Boots, New Look, Mothercare and the Bury Market. 2029 at a rent of £17.85 per sq ft and a Burger 2. ANGOULEME RETAIL PARK 4. MOORGATE RETAIL PARK King unit at a rent of £21.29 per sq ft. The retail warehouse supply within the Bury (PICTON PROPERTY) (SAVILLS INVESTMENT MANAGEMENT) catchment is estimated at 624,000 sq ft, which is The scheme totals 78,000 sq ft, arranged A 50,000 sq ft park where tenants include below the PROMIS average. The majority of this across 5 units, let to TK Maxx, Argos, PC Carpetright, Halfords, Home Bargains and space is located within close proximity to the town World, Poundstretcher and B&M at rents Farmfoods with rents ranging between £10.00 centre and the subject property is situated within between £11.50 and £18.00 per sq ft. and £17.50 per sq ft and a KFC pod at a rent this ‘retail core’. of circa £25.40 per sq ft.

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SITUATION

The subject property is situated on Moor Street and is highly visible from the A56 (Peel Way). Situated in the town’s ‘retail core’, the unit’s accessibility and prominence provides Wickes with a competitive trading position and their commitment to both the town and the store is evidenced by the recent regearing of their lease.

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5 WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

DESCRIPTION

The property comprises a standalone purpose built retail warehouse unit, let to R Wickes Building Supplies Limited, totalling 28,460 sq ft GIA. The tenant’s signage is T S prominently displayed to the front of the unit and is clearly visible from the A56 (Peel Way). S Internally, the unit is fitted out to the tenant’s standard specification. Following the regearing of the lease, Wickes are to undertake alterations and refit the existing store. Further details are available upon request. The customer car park is accessed via a one way system, with ingress from Moor Street and egress onto Hornby Street. There are circa 131 car parking spaces S providing an overall car parking ratio of 1 space per 217 sq ft of gross internal floor area. S To the rear of the property is a separate service yard which is accessed via Buckley Street. P S The total site area is approximately 2.15 acres, giving a low site cover of 30%. S

PLANNING S

The property benefits from an open A1 (food and non-food) planning consent. A copy is available upon request. TENURE

The site delineated in red is held freehold. S EPC P

The property has been rated grade B (50). A copy of the EPC is available on request.

The property comprises a standalone purpose VAT built retail warehouse unit, let to Wickes Building

The property had been elected for VAT, however, it is anticipated that the transaction Supplies Limited, totalling 28,460 sq ft GIA. will be treated as a Transfer of Going Concern (TOGC).

6 WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

TENANCY

The property is let on a 20 year full repairing and insuring lease to Wickes Building Supplies Limited from 22 December 2015. There is a tenant break option at the 10th anniversary of the lease, subject to a £200,000 penalty. This provides an unexpired term of circa 9.7 years. The current passing rent is £334,405 per annum, reflecting £11.75 per sq ft. TENANT COVENANT

Wickes Building Supplies Limited is a wholly owned subsidiary of Travis Perkins plc and currently trade from over 200 stores across the UK. They are one of the leading national DIY retailers in the UK with a particular focus on commercial trade. Wickes Building Supplies Limited have been classified by Dun & Bradstreet as ‘Minimum Risk of Business Failure’ and awarded a rating of 5A1.

YEAR ENDING YEAR ENDING YEAR ENDING TENANT 27 DEC 2014 28 DEC 2013 29 DEC 2012

Sales Turnover £1,039,986,000 £972,038,000 £976,136,000

Profit (pre-tax) £68,731,000 £49,441,000 £55,550,000

Tangible Net Worth £335,080,000 £298,859,000 £273,471,000

Net Current Assets £231,159,000 £190,248,000 £164,682,000

TENANT 2014 v 2013

Turnover 6.99%

Gross Profit 7.05%

Net Operating Profit 37.54%

Profit Before Tax 39.02% Profit After Tax 41.11% Wickes Building Supplies Limited have been classified by Dun & Bradstreet as ‘Minimum Risk of Business Failure’ and awarded a rating of 5A1.

7 WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ PREVIOUS NEXT OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY

PROPOSAL We are instructed to seek offers of £4,485,000, subject to contract and exclusive of VAT. This reflects anattractive net initial yield of 7.00% (assuming purchaser’s costs of 6.57%).

FOR FURTHER INFORMATION

MILES MARTEN T: 020 7317 3777 M: 07770 748290 E: [email protected]

JACK LLOYD

Wilkinson Williams T: 020 7317 3796 Heathcoat House M: 07747 883231 20 Savile Row London W1S 3PR E: [email protected]

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.

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