MADFORD RETAIL PARK CHARLOTTE STREET • • CA2 5BT

WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY LONDON ROAD RETAIL PARK A6 LONDON ROAD

J42 M6 k ST NICHOLAS GATE RETAIL PARK

A69 WARWICK ROAD

INVESTMENT SUMMARY • The scheme is located on the edge of Carlisle city centre, prominently fronting Charlotte Street. BOTCHERGATE • Madford Retail Park provides for a total gross internal floor area of 4,038 sq m (43,460 sq ft), excluding the LIDL Store, 60,960 sq ft (5,663 sq m) inclusive. CARLISLE • 3 retail units - Dunelm, Carpetright and Eden Valley STATION CURROCK Hospice (plus Lidl, which is sold off Long Leasehold). STATION ROAD ROAD RETAIL PARK • A1 – Restricted. • Freehold, with a long leasehold interest to Lidl.

• 143 car parking spaces CARLISLE VICTORIA TOWN CENTRE VIADUCT • Low passing rent of £381,485 per annum (£8.78 psf). • Recently signed reversionary leases and excellent covenants with AWULT of c.11 years. • Recognised retail warehouse location. • Opportunity to drive rents forward at review. • Carlisle benefits from awide catchment area and very limited retail leakage. DENTON • Opportunity to improve tenant mix of Unit C. STREET VIADUCT • Development potential c. 5,000 sq ft adjacent to Dunelm. ESTATE ROAD • We are instructed to seek offers in excess of£4,500,000 (Four Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect aNet Initial Yield of 7.96% after allowing for purchasers costs of 6.57%. CHARLOTTE STREET

l A595 CASTLE WAY MADFORD RETAIL PARK WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

LONDON ROAD RETAIL PARK A6 LONDON ROAD

J42 M6 k ST NICHOLAS GATE RETAIL PARK

A69 WARWICK ROAD

BOTCHERGATE

CARLISLE STATION CURROCK STATION ROAD ROAD RETAIL PARK

CARLISLE VICTORIA TOWN CENTRE VIADUCT

DENTON STREET VIADUCT ESTATE ROAD

CHARLOTTE STREET l A595 CASTLE WAY ARN

INURG LOCATION GLASG Carlisle is a Cathedral City and the main administrative centre of which lies approximately 95 miles to the south of Glasgow, 60 miles to the west of Newcastle upon Tyne and 120 miles to the north of Manchester.

The city benefits from excellent road communications being situated at the convergence of the A7, A69, A74 CARLISL and the M6 motorway. The M74 leads north to Glasgow, the A69 east to Newcastle upon Tyne and the M6 south NCASL to Manchester. UPN N

Junctions 42, 43 and 44 of the M6 motorway provide easy access to the City Centre, approximately 3.5 miles to the east. M Carlisle benefits from a regular rail service to London Euston and Glasgow with a journey time of approximately 4 hours 30 minutes and 1 hour 30 minutes respectively. A1M LS The nearest competing towns are Penrith (20 miles to ULL the south). (13 miles to the south west) and (34 miles to the north west). Traditionally the city has benefited from a strong tourist trade associated with the Lake District with approximately 2 million MANCSR visitors each year. LIRPL SIL ‘The City benefits from excellent road communications’ M M1

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PARK RAIL PARK C LNN RA S RAIL PARK SITUATION Carlisle is the dominant regional shopping centre for Madford Retail Park is situated approximately 0.5 Cumbria and the wider Lake District area. Hence, it kilometres (a third of a mile) south west of the City suffers little deflection in trade to competing centres. Centre. It has prominent frontage to Charlotte Street close to its junction with both Victoria Viaduct and Carlisle has a resident population of approximately Milbourne Crescent, within 0.5 kilometres (a third 107,000 (2011 Census). The wider borough of Cumbria of mile) of Carlisle Railway Station. Victoria Viaduct has a population of approximately 500,000. Carlisle has provides access into City centre. a substantial and affluent catchment market in excess of 1.3 million, which places it within the top 10% of UK The Retail Park is highly visible to Charlotte Street from trading locations. (NSLSP) both directions, while the surrounding area is a mixture of residential, industrial and commercial uses including The city is also a popular tourist destination with a car show room and Kwik Fit MOT Test Centre. Cumbria attracting in excess of 17 million visitors per year (STEAM 2015-Cumbria Tourism) with a visitor spend of approximately £1.2billion.

RETAIL WAREHOUSING PROVISION The retail warehouse supply in Carlisle is estimated at 1,181,000 sq ft, ranking the city 49 of the PROMIS Centres. Around 42% of total retail warehousing floorspace in Carlisle is on retail parks, significantly below the retail PROMIS average.

Some goods categories are under-represented in terms of provision per household, particularly Child/Sport, Fashion/ Other High Street and Furniture/shing goods. There is no retail warehouse floorspace currently under construction within the Carlisle area, or planning consent for any new development.

Overall, Carlisle city centre faces below average competition from competing retail centres and ranks 21 out of the 200 PROMIS centres on the PMA Competition Indicator (a rank closest to 1 reflects a low level of competition). Carlisle’s largest competing centre is Newcastle upon Tyne, situated some 57 miles away.

London Road Retail Park London Road Retail Park is a 5 unit scheme totalling 94,184 sq ft, anchored by a B&Q Warehouse, with other tenants including Pets at Home, Laura Ashley, Maplin and Pizza Hut. The scheme is located off the A6 London Road, the main arterial route into Carlisle from Junction 42 of the M6, 1 mile to the south east of Carlisle city centre. Rents are in the order of £15.50 psf (c.8,000 sq ft units), whilst the B&Q mini warehouse is understood to be at £13 psf (c.65,000 sq ft).

Kingston Retail Park Kingston Retail Park is an A1 - Principally Bulky Goods Retail Park, located off the A7, a main arterial route into Carlisle, very close to junction 44 of the M6. Occupiers include Currys/PC World, Homebase, M&S Simply Food, Argos, Hobbycraft and Next Home. The park comprises 97,200 sq ft, across 6 units Rents on smaller units are in the order of £22 psf (c.8,000-10,000 sq ft units), whilst £14 psf on the Homebase unit (c,40,000 sq ft).

A74(M) A7 A68 DUMFRIES A75

A69 A689 A68 CARLISLE CONSETT

A68 A596 ■ 10 minute catchment A595 ■ 20 minute catchment ■ 30 minute catchment PENRITH A66 WORKINGTON ‘Carlisle’s retail A595 M6 catchment is significant, A66 with very limited A591 shopper leakage MADFORD RETAIL PARK WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

RETAIL WAREHOUSING PROVISION St Nicholas Gate Retail Park St Nicholas Gate Retail Park comprises 119,178 sq ft, 445 parking spaces, and benefits from a Part Open A1 – Bulky Goods, Park Food consent, with occupiers including Asda, Halfords, Iceland, B&M, Poundland and Oak Furniture Land. Rents on smaller units are in the order of £20 psf (c.5,000 sq ft) and £10 psf on units of c.10,000 – 12,000 sq ft.

Station Road Retail Park Station Road Retail Park is an Open A1 – Part Restricted retail warehouse scheme beside the railway station . The park is comprises 47,635 sq ft and 194 parking spaces. Matalan pay £12.64 psf on 27,300 sq ft, whilst Office Outlet pay £10.41 psf on 20,165 sq ft.

Currock Road Retail Park Currock Road is adjacent to St Nicholas Gate Retail Park and comprises a combination of bulky goods, open A1 including food, and leisure over 58,292 sq ft. Tenants include AMF, Lifestyle Fitness and Yesss electrical.

Hardwicke Circus Hardwicke Circus is a restricted bulky goods scheme comprising 44,896 sq ft, with DFS and Wickes as tenants.

The Lanes Shopping Centre The Lanes Shopping Centre comprises 500,000 sq ft, and has over 70 stores including Primark, Debenhams, Next, New Look and H&M, plus a range of specialist shops, and a 600 space Park Mark awarded car park above the centre. Situated in heart of pedestrianised Carlisle, The Lanes is the number one all-weather shopping destination for Cumbria and the Borders, and attracts an annual footfall in access of 11.5 m persons.

SOCIO ECONOMIC PROFILE

CACI Ltd Catchment Convenience Home Goods Total Drivetime Population Goods Spend Total Spend in Area Total Spend in Area Total Spend in Area (£’000/year) (£’000/year) (£’000/year)

10 minute catchment 75,848 189,817 66,353 256,170 20 minute catchment 103,559 265,739 95,622 361,361 30 minute catchment 147,748 383,253 137,896 521,149

Carlisle is the main retail destination in the region. According to PROMIS, the city has a primary catchment of some 382,000 people, which is above average for towns and cities of a similar size in the UK. Carlisle benefits from limited retail competition from neighbouring towns. The closest towns with any retail warehouse provision are Penrith over 20 miles south, and Dumfries over 30 miles to the north west, but neither provide the same quality or quantity of retail warehouse provision, when compared to Carlisle. Total in-store comparison retail expenditure in 2016 for the Carlisle catchment was £795 million, which is 23% above the PROMIS average for similar sized towns and cities. MADFORD RETAIL PARK WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

DESCRIPTION The property comprises a modern retail warehousing operated by the Environment Agency if and when scheme arranged as four units in three detached required, there has never been an issue of flooding at buildings, fronting Charlotte Street. the site. The units are of steel portal framed construction clad Customer car parking is provided to the front of the in a mixture of micro rib steel sheet cladding, stone units with 143 spaces to the front of Units A, B and blockwork and facing brickwork. Roofs to Units A, B C and further spaces to the front of the Lidl Unit. and C are shallow pitched with double skin coated Servicing yards are located to the rear and sides. cladding, with the Lidl unit having an artificial slate The units have been measured on a Gross Internal covered roof. Shop fronts and windows are of powder Area (GIA) basis in accordance with the RICS Code of coated aluminium with rear servicing doors to all the Measuring Practice (Sixth Edition) and the approximate units. areas are as follows: All buildings are single storey, however the tenant of Unit B (Dunelm) has installed a first floor steel Unit Tenant sq m sq ft mezzanine structure to the rear and right hand side of A Carpetright 933 10,041 the premises, providing additional retail and storage areas. Elsewhere, small ancillary office accommodation B Dunelm 2,779 29,913 and welfare facilities are housed within stud C Eden Valley Hospice 326 3,506 partitioning at ground floor level within the main framed envelope. Total 4,038 43,460 All floors are of concrete construction. The tenants have fitted out the units to their individual specification with carpet and lino covered flooring, suspended strip TENURE lighting and ceiling mounted warm air blowers. Freehold. The property sits adjacent to the River Caldew. Flood alleviation measures in Carlisle have been undertaken by the Environment Agency, Cumbria County Council PLANNING and Carlisle City Council at a cost of £38m. Since these defences opened in 2010, which involve a flood gate A1 - Restricted. ASSET MANAGEMENT OPPORTUNITIES • Opportunity to pursue higher value uses for Unit C, at a significantly higher rent.

• Landlord permitted to seek planning/develop “Potential Development Land” on plan below, without objection

from Dunelm or Carpetright, potentially suitable for coffee/food operator, subject to planning of circa 5,000 sq ft. 9

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Lease Lease Rent Annual Unit Tenant Area Start Expiry Review Rental Rent Comments (sq ft) Date Date Dates Income psf 1 Lidl 17,500 25/06/2004 24/06/3003 £10

Rent: 09/08/2017 - 08/02/2018 (peppercorn) 09/02/2018 - 22/06/2019 (£55,401.50 pa) Vendor to top up rent to £110,803 p.a until 22/06/19. A Carpetright 10,041 23/06/2004 22/06/2029 23/06/2019 £110,803 £11.04 Reversionary lease from 23/06/2019. Subject to a day 1 rent review at a cap of £125,000 pa. Tenant to receive 7.5 months half rent from the commencement of the reversionary lease.

Reversionary lease from 24/06/2019.

Dunelm Tenant to receive capital contribution of £240,672, from commencement of reversionary lease. B (Soft 29,913 24/06/2004 23/06/2029 24/06/2024 £240,672 £8.05 Furnishings) Tenant to pay 50% of the passing rent for the first two years of Limited the reversionary lease. 2024 rent review capped at £265,725.

Eden Valley Hospice C (Shop) 3,506 16/04/2015 15/04/2020 £30,000 £8.56 Subject to an annual rolling, mutual break. Limited United Sub- Utilities station Electricity 23/06/2004 22/06/2064 Plc 60,960 £381,485

RENTAL VALUE The rents for both Dunelm and Carpetright compare favourably on both a global and per sq ft basis with comparable northern towns.

Carpetright Town Scheme Passing Rent Rent (psf) GIA Consett Hermiston Retail Park £112,500 £15.09 7,500 Penrith Castle Retail Park £105,000 £15.00 7,000 Workington Derwent Retail Park £104,000 £12.00 8,000 Blackburn Nova Scotia Retail Park £146,685 £16.50 8,890 Whitehaven Bridges Retail Park £110,000 £10.97 9,601 Standalone Unit £200,000 £11.10 18,141 Dunelm Town Scheme Passing Rent Rent (psf) GIA Wakefield Cathedral Retail Park £300,000 £14.89 20,145 Paisley Abbotsinch Retail Park £300,000 £14.96 20,060 Keighley Alston Retail Park £170,910 £8.48 20,160 Cramlington Westmorland Retail Park £280,000 £14.00 20,000 Altrincham Bridgewater Retail Park £146,470 £10.00 14,647 Barrow-in- Furness Hollywood Park £254,100 £11.00 23,133 Workington Derwent Retail Park £224,460 £9.00 24,940 Preston Capitol Retail Park £359,159 £17.00 21,127 MADFORD RETAIL PARK WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

TENANT COVENANT Dunelm (Soft Furnishings) Ltd have a D&B rating of 4A1

Dunelm (Soft Furnishings) Limited is a wholly-owned subsidiary of Dunelm Group plc, a constituent of the FTSE250.

It began operations in 1987 and has grown to become one of the leading specialist out-of-town homeware retailers in the UK, providing a comprehensive range of curtains, soft furnishings, kitchen equipment and homeware.

Dunelm is now the UK’s largest home furnishings retailer, employing in excess of 4,500 people with over 140 stores across the UK.

Fiscal Non consolidated GBP Fiscal Non consolidated GBP Fiscal Non consolidated GBP

02 July 2016 04 July 2015 28 June 2014

(£000’s) (£000’s) (£000’s)

Sales Turnover 880,900 835,805 730,152 Profit / (Loss) Before Taxes 127,400 118,442 114,471 Tangible Net Worth 32,200 88,072 31,018 Net Current Assets (Liabilities) 69,000 134,119 13,982

Carpetright Plc have a D&B rating of 4A1

Carpetright is the UK’s biggest flooring retailer. Since its foundation in 1988 they have grown, both organically and through acquisition, into an international retailer, operating in four European countries. The Group listed on the London Stock Exchange in 1993.

In Q2 2017 Carpetright reported that it has now refurbished 47% of its shop estate and would be on track to complete the rest of its 426 UK stores by the end of 2018.

Total sales lifted by 0.2% to £457.6m during the year to April 29, helped by strong international sales, and the extraction of 27 loss making stores.

Fiscal Consolidated GBP Fiscal Consolidated GBP Fiscal Consolidated GBP

29 April 2017 30 April 2016 02 May 2015

(£000’s) (£000’s) (£000’s)

Sales Turnover 457,600 456,800 469,800 Profit / (Loss) Before Taxes 900 12,800 6,600 Tangible Net Worth 20,700 16,900 3,400

Eden Valley Hospice have a D&B rating of O2

Eden Valley Hospice provides care for adults with life limiting illnesses from North Cumbria. MADFORD RETAIL PARK WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

INVESTMENT MARKET UK retail warehouses transaction volumes have rocketed in 2017 with competition for space driven by online shopping. Volumes to date in 2017 reflect the confidence and impetus in the market. Consumer confidence remains relatively robust which is filtering through into positive investor appetite across the sector.

New buyers are appearing alongside local authorities and the traditional institutional investor base, which is putting downward pressure on yields across the board for better quality assets. 2017 is expected to finish strongly as the sector continues to compare favourably to alternative sub-sectors.

Size Unexpired Location Tenants Price NIY Date (sq ft) Term (years) Transit Way Retail Park, Plymouth B&M and Magnet 35,005 £5,525,000 c.10.0 6.79% Sep 17 Currys PC World, Go Outdoors, Halfords, Clough Road Retail Park, Hull 88,500 £11,200,000 c.9.0 7.1% Aug 17 Staples, Costa and Smyths Toys Wells Green Retail Park, Dreams, Pets at Home, Halfords 23,007 £5,100,000 7.5 6.64% Jun 17 SCS, Oak Furniture Land Coypool Retail Park, Plymouth 33,270 £7,487,000 c.13.0 6.74% May 17 and McDonalds Hastings Retail Park, Hastings Dunelm and Pets at Home 28,867 £7,275,000 11.2 5.93% Dec 16 Penda Retail Park. Oswestry Carpetright, B&M and Halfords 41,581 £6,570,000 11.8 6.50% Dec 16 Southampton Road Retail Park, Dunelm and Argos 67,374 £11,160,000 6.3 6.97% Dec 16 Southampton Cardiff Road, Pontypridd Dunelm 25,551 £3,300,000 13.8 7.05% Oct 16 Bangor Retail Park, Bangor The Range, Argos Extra, Next & Sports Direct 61,718 £12,000,000 11.3 6.50% Jun 16

SERVICE CHARGE VIEWINGS

Information available on request. For further information or to arrange a viewing please contact:

EPC Simon Marshall [email protected] Full EPC reports can be provided on 0161 235 7641 request. Craig Barton VAT [email protected] 0161 455 3712 The property has been elected for VAT. Giovanni Pilla [email protected] PROPOSAL 0161 235 7672 We are instructed to seek offers in excess of £4,500,000 (Four Million Five Cushman & Wakefield Hundred Thousand Pounds) subject 1 Marsden Street to contract and exclusive of VAT. A Manchester M2 1HW purchase at this level would reflect a Net Initial Yield of 7.96% after allowing for purchasers costs of 6.57%.

PROPERTY MISDESCRIPTIONS Cushman & Wakefield for themselves and for the vendors or lessor 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; ii) Cushman & Wakefield cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospec- tive purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars maybe subject to VAT in addition; iv) Cushman & Wakefield will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to it’s 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”. vi) no employee of Cushman & Wakefield (and its subsidiaries where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. DATE OF PARTICULARS: November 2017. Designed & Produced by Creativeworld. Tel 01282 858200