The Range, Aldershot Ivy Road, Gu12 4Tx
THE RANGE, ALDERSHOT IVY ROAD, GU12 4TX
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
INVESTMENT SUMMARY
• Aldershot is located in the county of Hampshire and has a primary catchment of 113,000 people.
• Good road and rail communications, situated close to J4 of the M3 motorway and the A31 whilst also within 50 minutes of London Waterloo by train.
• Aldershot is undersupplied in respect of retail warehouse floorspace within the town itself and the wider catchment area.
• Situated approximately one mile east of Aldershot town centre and well connected for customers using both private cars and local public transport.
• Freehold.
• Comprises 25,902 sq ft and benefits from Class A1 (non-food) planning consent with restrictions.
• Let to a 5A1 covenant, CDS (Superstores International) Limited (t/a The Range) for a remaining 10.8 years.
• The lease benefits from 5 yearly fixed rent reviews at 2.5% per annum compounded.
• On 19 August 2016 the rent increases to £322,363 per annum, reflecting £12.45 per sq ft. The vendor will top up the rent to this level from the date of sale.
• A purchase at this level provides the following yield profile:-
19 August 2021 7.64%
17 August 2026 8.64% We are instructed to seek offers of £4,515,000, subject to Equivalent Yield 7.76% contract and exclusive of VAT. This reflects anattractive Net Initial Yield 6.75% Net Initial Yield of 6.75% (assuming purchaser’s costs of 5.80%). RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
Slough A406 A5 M4
Windsor A4 A307 M4 Fulham M4 A30 Hounslow
A316 A33 Egham A3 Bracknell A23 Wimbledon M3 Kingston A322 upon Thames A217 M3 Weybridge A232 M25 A33 Camberley A243 Epsom Bramley M3 Woking A3 A23 Farnborough A339 A217 A331 Basingstoke Fleet Aldershot Guildford Reigate M3 A31 A24 Farnham M23 DEMOGRAPHICS Godalming The total population within the Aldershot Reflecting the demographic A31 Witley catchment area is 113,000 people, which profile and spending habits of Cranleigh A3 is above the PROMIS average. the catchment population, total Bordon average earnings and per capita Crawley The age profile of the Aldershot primary catchment Haslemere retail warehouse expenditure are population includes a particularly high proportion of higher than the PROMIS average. working age adults, especially those aged 25-44. The town has an unemployment rate of 0.6%, significantly lower than the GB average of 1.9%.
LOCATION A selection of key catchment statistics are provided below: ALDERSHOT PMA AVERAGE Aldershot is located in the county of Hampshire, The town benefits from good road communications within an affluent area in the South East of with the A331 providing access north to Junction 4 Total catchment population 2014 (000s) 113 84 England. The town is approximately 40 miles of the M3 motorway and south to the A31. south west of London, 10 miles west of Guildford, The town is also well connected by rail with regular Per capita RW expenditure, 2014 £503 £472 4 miles south of Farnborough and 3.5 miles direct train services from London Waterloo and Social structure – AB (most affluent) % of adult population 26 21 north east of Farnham. local services to Guildford, Alton and Ascot. Social structure – DE (least affluent) % of adult population 18 27
Car Ownership 2011 (households with 2 cars) 47% 36%
Average House Prices Q3 2014 £371,800 £232,000 40MILES 10MILES 4 MILES 3.5MILES Total Average earnings (Gross weekly wages 2013) £460 £411 SOUTH WEST WEST OF SOUTH OF NORTH EAST Unemployment as % population aged 16-64 Dec 2014 1.6% OF LONDON GUILDFORD FARNBOROUGH OF FARNHAM 0.6% RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
Thornhill Rd
Alison Rd
Steel’s Rd A331
A325
Brookfield Rd
North Ln Pegasus Ave Pegasus Pegasus Ave Pegasus A323 Deadbrook Ln A323 Ordnance Rd A323 NorthTown Redan Rd
Eastern Rd Victoria Rd Aldershot Ash ConnaughtBelle Rd Vue Rd North Ln Holly Rd Windmill Rd A323 Roberts Rd
Waterloo Rd Haig Rd Newport Rd Holder Rd Underwood Ave Calvert Cl Church Ln W Church Ln E
Ash Lodge Dr Ayling Ln A323 Church Ln E
Oxenden Rd Manor Rd
White Ln Tongham Rd Weybourne Boxalls Ln Ash Green
Lower Farnham Rd
Poyle Rd
Morland Rd
Weybourne Rd Lower Weybourne Ln A331 Tongham
Badshot Lea
Park Rd RETAIL WAREHOUSING IN ALDERSHOT SITUATION
The retail warehouse supply within the Aldershot catchment in the wider catchment includes Farnham Retail Park where The subject property lies approximately 1 mile east of Aldershot town centre is estimated at just 118,000 sq ft, with overall provision Homebase, Halfords and Pets at Home trade. and trades from a prominent position fronting on to North Lane. This location per household of retail warehouse floor space being makes it readily accessible for the immediate residential population and the significantly below the PROMIS average. We believe that the lack of retail warehouse floorspace wider catchment. in Aldershot highlights the importance of the subject The subject property provides the only retail warehouse property to the town’s retail offer, and provides the tenant The property is accessed via Ivy Road which provides access and egress unit within Aldershot itself. In addition, retail warehosuing with a competitive trading position. from North Lane. RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
DESCRIPTION
The subject property comprises a purpose built retail warehouse unit, totalling 25,902 sq ft GIA, of steel portal frame construction with elevations of part brick and part profile steel sheeting. The tenants’ signage is prominently displayed to the front of the unit clearly visible from North Lane. Internally, the unit is fitted out to The Range’s specification. There is a circa 6,700 sq ft garden centre which runs along the southern boundary of the site, accessed via the ground floor sales area within the property. To the rear of the property is the separate service yard which is accessed via Ivy Road. There are 108 car parking spaces, with all customer parking located to the front of the store. This provides an good overall car parking ratio of 1 space per 240 sq ft of gross internal floor area. The total site area is 1.82 acres, giving a low site cover of 32%.
The subject property comprises a purpose built retail warehouse unit totalling 25,902 sq ft GIA, of steel portal frame construction with elevations of part brick and part profile steel sheeting. RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
PLANNING
The property benefits from a Class A1 (non-food) planning consent (with the exception of clothing, shoes, toys and fashion accessories). A copy is available upon request.
NORTH LANE TENURE
IVY ROAD The site delineated in red is held freehold.
TENANCY
The property is let on a 15 year full repairing and insuring lease to CDS (Superstores International) Limited (t/a The Range) from 19 August 2011. This provides an unexpired term of circa 10.8 years. The current passing rent is £284,922 per annum, reflecting £11.00 per sq ft. The lease is subject to 5 yearly upwards only rent reviews, based on the rent payable immediately before the review date multiplied by 102.5% compounded per annum. On 19 August 2016 the rent increases to £322,363 per annum, reflecting £12.45 per sq ft. The vendor will top up the rent to this level from the date of sale. The review dates in the lease are 19 August 2016 and every fifth anniversary of that date during the term and the day before the expiry of the contractual term. The rent will therefore rise as follows:-
DATE OF REVIEW RENT (PA) RENT (PER SQ FT)
19 August 2021 £364,724.25 £14.08
17 August 2026 £412,652.01 £15.93 RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
TENANTS FINANCIAL INFORMATION
The business originated in the markets The Range now sells more than of the Southwest and was founded by 65,000 products across 16 departments entrepreneur Chris Dawson. The first including DIY, Homewares, Furniture, superstore opened at Sugar Mill Business Lighting, Arts & Crafts and Garden. Park in Plymouth in 1989 and the retailer has since grown into one of the UK’s Below are the most recent company leading retail warehouse operators trading accounts for the tenant:- from over 100 superstores nationwide and has a Dun & Bradstreet rating of 5A 1.
ACCOUNTS TURNOVER PRE-TAX NET WORTH TENANT D&B RATING YEAR ENDING (£’000) PROFIT £’000) (£’000)
26 Jan 2014 £470,282 £45,238 £123,113 CDS (Superstores 27 Jan 2013 £381,903 £34,834 £88,338 5A 1 International) Limited 29 Jan 2012 £296,650 £25,984 £72,499
EPC VAT
The property has been rated grade B (32). The property has been elected for A copy of the EPC is available on request. VAT, however, it is anticipated that the transaction will be treated as a Transfer of Going Concern (TOGC). The Range now sells more than 65,000 products across 16 departments including DIY, Homewares, Furniture, Lighting, Arts & Crafts and Garden. RETAILING IN PLANNING, TENANTS INVESTMENT LOCATION & ADDITIONAL HOME ALDERSHOT DESCRIPTION TENURE & FINANCIAL SUMMARY DEMOGRAPHICS INFORMATION & SITUATION TENANCY INFORMATION
PROPOSAL We are instructed to seek offers of £4,515,000 subject to contract and exclusive of VAT. This reflects anattractive Net Initial Yield of 6.75%, (assuming purchaser’s costs at 5.80%) and the following running yield profile:-
19 August 2021 7.64%
17 August 2026 8.64%
Equivalent Yield 7.76%
FOR FURTHER INFORMATION
JACK LLOYD T: 020 7317 3796 M: 07747 883231 E: [email protected]
DREW MOORE
Wilkinson Williams T: 020 7317 3789 Heathcoat House M: 07880 797488 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. November 2015.
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