Balloo Retail Park, Balloo Link, Bangor, Bt19 7Hj Prime Northern Ireland Supermarket Anchored Investment Opportunity

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FOR SALE - BALLOO RETAIL PARK, BALLOO LINK, BANGOR, BT19 7HJ PRIME NORTHERN IRELAND SUPERMARKET ANCHORED INVESTMENT OPPORTUNITY

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INVESTMENT SUMMARY

Prime retail investment within Bangor, an affluent Attractive WAULT of approximately 16 years commuter town approximately 12 miles from Belfast. with average rent of £15.71 per sq ft.

Let to Sainsbury’s and Homebase on c. 10 acre site. Asset management opportunity with planning permission for c. 20,000 sq ft (c. Passing Rent: £1,645,524 per annum exclusive. 1,858 sq m) of retail warehousing. Sainsbury’s Supermarket rent indexed at 2% fixed per annum compounded.

We are instructed to seek offers in excess of £28,500,000 (Twenty Eight Million Five Hundred Thousand Pounds) subject to Contract and exclusive of VAT, reflecting a Net Initial Yield of 5.40% after deduction of standard purchaser’s costs of 6.76%. Reversionary Yields of 5.75% (08/2021), 6.13% (08/2026), 6.55% (08/2031).

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LOCATION

Bangor is an attractive and affluent Bangor offers a regular direct link train and coastal town located in the Ards & bus service throughout the day to Belfast North Down Borough approximatel 12 with a journey rail time of c. 25 minutes. miles north east of Belfast city centre. In addition, the town is in close The A2 Belfast Road/Bangor South proximity to George Best Belfast City Circular Road is the primary east/west link Airport, which lies approximately 11 connecting to Belfast with a travel time miles to the southwest of Bangor with of c. 25 minutes. The A21 provides the Belfast’s International Airport located main north/south arterial route linking approximately 35 miles to the west. Newtownards, Comber and Ballygowan.

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RETAIL PROVISION

Balloo Retail Park occupies a key location along the West Circular Road between Springhill Retail Park 2 and Bloomfield Shopping Centre.

W Balloo Retail Park, R C 2 Balloo Link. 1 B R

Springhill Retail Park R N comprising of 177,000 sq 4 ft of retail warehousing 2 R accommodation anchored C 3 S by Tesco, Sports Direct,

B&M and New Look. R 1

Clandeboye Retail C

Warehouse Park

3 comprising of c. 140,000 sq ft anchored by Curry’s R R and Home Bargains.

B R Bloomfield Shopping Centre & Retail Park 3 4 comprising of 296,000 sq ft including occupiers such as Marks & Spencer, H & M, DW Sports, Tesco, Pets at Home and Laura Ashley.

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DESCRIPTION

Balloo Retail Park is a key retail scheme with a standalone Sainsbury’s within Bangor providing a total of c. Supermarket Petrol Filling Station. 104,769 sq ft (c. 9,733 sq m) of purpose built retail accommodation. In addition, there is a cleared development site benefitting from The retail terrace comprises of 2 units full planning permission for a c. 20,000 with a standalone petrol filling station. sq ft (c. 1,858 sq m) retail scheme.

Sainsbury’s Supermarket comprises The entire park extends to c. 10 acres of c. 60,515 sq ft (c. 5,622 sq m) with and provides for approximately the Homebase store totalling, 650 car parking spaces. c. 44,254 sq ft (c. 4,111 sq m) together

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TENANCIES

Balloo Retail Park produces a total contracted income of £1,645,524.31 per annum as outlined below:-

PASSING RENT NEXT REVIEW ADDRESS TENANT GIA (SQ FT) TERM LEASE START LEASE EXPIRY COMMENTS (PA) DATE

Upward Only every 5th Year Unit 1, Balloo HHGL Limited 25 February 24 February £641,683 to Open Market Value 44,254 25 years 25 February 2021 Retail Park t/a Homebase 2011 2036 plus VAT Break Option 24 February 2031

PASSING RENT NEXT REVIEW ADDRESS TENANT GIA (SQ FT) TERM LEASE START LEASE EXPIRY COMMENTS (PA) DATE

Sainsbury’s Upward only every 5th Year to Unit 2, Balloo £1,003,841.31 Supermarkets 60,515 25 years 8 August 2011 7 August 2036 8 August 2021 Greater of Open Market Value or Retail Park plus VAT Limited 2% per annum Compounded

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GALLERY - SAINSBURY’S

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GALLERY - HOMEBASE

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COVENANT INFORMATION

Sainsbury’s

Sainsbury’s is one of the Big Four supermarket with a surge in online orders to 650,000 a week A summary of the last three year’s chains dominating the UK grocery market in June 2020, up from 370,000 in March 2020. trading accounts is shown below: and is the second largest supermarket in the UK with a market share of 15.4%. Sales at its established stores rose by 8.2%, with grocery sales up by 10.5% and general merchandise Sainsbury’s was established in 1869 and up by 7.2%, in the 16 weeks to 27 June 2020. Year Ending 09-MAR-19 10-MAR-18 11-MAR-17 the company occupies c23.2 million sq ft of retail space in the UK across 1,415 stores (608 Sales at Argos surged 10.7%, helped by a supermarkets and 807 convenience stores) 78% rise in home deliveries and demand for Sales Turnover £24.03 Billion £23.606 Billion £23.234 Billion and has in excess of 185,000 employees. home office items, garden toys and baking Pre-Tax Profit £174Million £187 Million £342 Million equipment during the lockdown. At the beginning of July 2020, Sainsbury’s Net Worth £5.669 Billion £4.562 Billion £4.353 Billion reported that it is winning over shoppers from The tenant has a Dun & Bradstreet rating of 5A1 the discounters Lidl as well as Tesco and Asda, representing a ‘minimum risk of business failure’.

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COVENANT INFORMATION

HHGL Limited t/a Homebase

Founded in 1979, Homebase is one of the UK’s The company was then sold in May 2018, with the Like for like sales were up 2.6% and gross margin leading home improvement and garden retailers current owners installing a new Management team rate was up 2.8% in the year as customers with over 160 stores across the United Kingdom that is executing a focused turnaround plan. responded well to new ranges, and improvements and Republic of Ireland. Sainsbury’s founded the to both in-store and online shopping experiences. company then owned it from 1979 to 2006. This has seen Homebase returned to profit As a result of its strong turnaround, Homebase earlier than forecast as its turnaround plan has has subsequently submitted formal notice to The company was then owned by Home Retail successfully made the majority of stores profitable Companies House that it had satisfied the CVA on Group for 10 years until it was sold in February again amidst an increase in like-for-likes. For the 23 June 2020, far quicker than was forecasted. 2016 to Wesfarmers, the owners of the leading year ending December 19, the home and DIY Australian DIY chain, Bunnings Warehouse. retailer delivered a £3.2 million EBITDA profit, Full financial details available upon request. compared with a loss of £114.5 million in 2018.

PREVIOUS NEXT PLAN NOT SCALE - FOR INDICATIVE PURPOSES ONLY Full detailsuponrequest. The site isheldinseparate Freehold folios. TENURE and granted 2010. on1April permission (c. 1,858sqm)ofretail warehousing. The planningreference is W/2008/0891/F for withplanningpermission c. 20,000sqft Asset management opportunity MANAGEMENTASSET FOR SALE|BALLOO RETAIL PARK, BANGOR, CO. DOWN, BT19 ANCHOREDINVESTMENTOPPORTUNITY IRELANDSUPERMARKET 7HJ|PRIMENORTHERN PREVIOUS NEXT 11 FOR SALE | BALLOO RETAIL PARK, BANGOR, CO. DOWN, BT19 7HJ | PRIME NORTHERN IRELAND SUPERMARKET ANCHORED INVESTMENT OPPORTUNITY 12

PROPOSAL ADDITIONAL INFORMATION EPC - Sainsbury’s EPC - Homebase

We are instructed to seek offers in excess of A soft legal pack including lease and title will be £28,500,000 (Twenty Eight Million Five Hundred provided to genuine interested parties. Thousand Pounds) subject to Contract and exclusive of VAT, reflecting a Net Initial Yield of VIEWING 5.40% after deduction of standard purchaser’s costs of 6.76%. Reversionary Yields of 5.75% Viewing by appointment only. (08/2021), 6.13% (08/2026), 6.55% (08/2031).

VAT

It is envisaged the sale will be treated as Transfer of a Going Concern (TOGC).

For further information please contact one of the joint agents.

Gavin Clarke MRICS Harry Crosby MRICS Ben Turquet BSc (Hons) MRICS Mark Cope BSc MRICS

Phone-Alt +44 (0)28 9027 0031 Phone-Alt +44 (0)28 9027 0019 Phone-Alt +44 (0)20 7518 0459 Phone-Alt +44 (0)20 7518 0457 Mobile-Alt +44(0)79 6817 9888 Mobile-Alt +44(0)75 8765 7163 Mobile-Alt +44 (0)7836 643570 Mobile-Alt +44 (0)7836 227523

The Metro Building, 6-9 Donegall Square South, Belfast, BT1 5JA 33 Bruton Street, London, W1J 6QU ENVELOPE-OPEN [email protected] GLOBE www.osborneking.com ENVELOPE-OPEN [email protected] GLOBE www.harveyspackfield.co.uk

DISCLAIMER The premises are offered subject to contract, availability and confirmation of details. The particulars do not form part of any contract and whilst believed to be correct, no responsibility can be accepted for any errors. None of the statements contained in the particulars are to be relied upon as statements of fact any attending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of those statements. The vendors or lessors do not make or give Osborne King & Megran Limited/Harvey Spack Field or any person in its employment, any authority to make or give any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rentals quoted are exclusive of any Value Added Tax to which they may be subject. These particulars are issued on the understanding that all negotiations are conducted through this company. Osborne King & Megran Limited: Registered in Northern Ireland No. 27969. Registered Office: The Metro Building, 6-9 Donegall Square South, Belfast, BT1 5JA. Harvey Spack Field: Registered Office: 33 Bruton Street, London, W1J 6QU. Any maps / plans based on the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office Crown Copyright Reserved Licence No. CS 369. Any plans are for convenience only. Their accuracy is not guaranteed and shall not be deemed to form part of any contract. Reproduced with the consent of Goad Cartographers Ltd, Old Hatfield.