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Home , Retail park, Variety store, Whitehaven

BRIDGES Whitehaven, CA28 7RW

Bridges Retail Park | WhitehavenCONVENIENCE-LED | CA28 7RW Retail Park Investment Opportunity 1 Investment Summary t Whitehaven is an attractive seaside town, situated on the west coast of , 38 t Class E planning consent, with flexible accommodation allowing for merging or miles south west of , and on the edge of the . of units. t The property is located in a prominent position fronting Flatt Walks, en route to t Asset management potential including the low site cover of 27%, allowing for further central Whitehaven and the A595, which is the main route to the nearby towns of development on site, subject to the necessary consents. and . t We have been instructed to seek offers in excess of £4,285,000 (Four Million, Two t The scheme forms the only retail park for the town and is anchored by a 52,000 sq ft Hundred and Eighty Five Thousand Pounds), subject to contract and exclusive of Morrisons with petrol filling station. VAT. A purchase at this level would reflect an attractive net initial yield of 8.25%, assuming purchasers’ costs of 6.56%. t The park totals 42,790 sq ft and is occupied by B&M, Carpetright, Shoe Zone, Greggs and McDonald’s. B&M comprise almost 50% of the income. The yield increases to a minimum of 9.10% in October 2024 on commencement of the McDonald’s reversionary lease. t Low rents averaging just £8.80 per sq ft, with a total income of £376,730 per annum. This reflects a low capital value of just £100.00 per sq ft and £1,132,400 per acre. t The McDonald’s rent increases significantly in October 2024 from £39,000 per annum to £78,000 per annum on commencement of their reversionary 15 year lease.

Bridges Retail Park | Whitehaven | CA28 7RW 2 Flatt Walks

Bridges Retail Park | Whitehaven | CA28 7RW 3 A595

M9 EDINBURGH A1 M8 M8 GLASGLocationOW A7 M77 ROSEHILL A71 Whitehaven isM74 an attractive seaside A72town and , situated on the west coast of Cumbria, on the edge of the Lake District National Park. The town is located 38 miles south west of Carlisle and 45 A76miles north of Barrow-in-Furness. The quaint Georgian town lies just off the A595 West Cumbria A1 A595 coastal route, which provides access to the M6 via the A66 at Junction 40, therefore making the A708 VICTORIA RD MORESBY town an accessible tourist destination.

The local train station is 0.5 miles to the north west of the retail park, with services along the MORESBY PARKS RD A7 A68 A713 Cumbrian coastline to nearbyA74(M) towns, stretching to Carlisle in the north in 1 hour, and Lancaster to

WHITEHAVEN RED LONNING the south in just over 2 hours.

WHITEHAVEN CARLISLE A69

A5094 MORESBY RD

CORKICKLE A68 A595 A1(M) PENRITH CORKICKLE MOOR RD M6 GINNS TO KELLS RD MIDDLESBROUGH

WHINLATTER RD EGREMONT RD FRIZINGTON RD A66 B5345 KEEKLE TERRACE B5294

A595 WHITEHAVEN MEADOW RD

WHITEHAVEN RD HIGH RD A61

A1(M)

MIREHOUSE RD M6

For indicative purposes only. Not to Scale. The retail park trades well as it is located in a prominent position fronting Flatt Walks, En route to central Whitehaven and the A595, which is the main route to THE nearby towns OF Workington and Cockermouth.

Bridges Retail Park | Whitehaven | CA28 7RW 4 Catchment POPULATION

The park has a captive catchment population, extending to Cockermouth and Egremont, due to the limited retail offer in the region, making the park the dominant scheme in the area for the existing catchment population and tourists. The Lake District attracts over 19.38 million overnight visitors and over 28.55 million day visitors (2018 figures) with the tourist sector worth around £3.004 billion to the local economy (2018). Whilst this is spread throughout the Lake District area, Whitehaven, due to its seaside location, is a tourist destination, with the offer of a golf club and coastal walks. The area is set to benefit with visitor numbers expected to increase over the coming years due to travel restrictions. The town centre is set to improve due to being included in a Strategic Regeneration Area within the Local Plan, which aims to enable sustainable development and bring mixed-use sites, including housing , to the town centre.

There are 32,435 people living within a 10 minute drive time of the subject property, increasing to 86,097 people within a 20 minute drive time. The catchment population is economically active with unemployment levels considerably less than the national average. Significant employers in the area are mostly associated with nuclear and energy, including Ltd and the Nuclear Decommissioning Authority.

The town has a lot of retirees, comprising 15.98% of the catchment population, who are most likely to shop locally and in store rather than travelling to Workington, over 8 miles The subject property provides the only retail park in the town, dominating the catchment area. away, or online.

Bridges Retail Park | Whitehaven | CA28 7RW 5 Retail Warehousing in WHITEHAVEN

The subject property provides the only retail park in the town, The nearest competition is located over 8 miles north of the park, dominating the catchment area. The tenant mix is complementary at Derwent Howe Retail Park and Derwent Retail Park in Workington. for the town with its value driven population, providing a convenience Here, B&M have a smaller store of 15,000 sq ft. There is very little by retail and food-based offer. Adjacent to the park, there is a 52,000 sq way of retail warehousing to the south of Whitehaven, due to the lack ft Morrisons store with a petrol filling station. Slightly further west of the of development near the National Park, with the closest competition scheme, there is a 28,271 sq ft standalone unit, and a being Barrow-in-Furness, 47 miles to the south, and Kendal, 57 miles to first generation Iceland and Aldi. provides the other foodstore for the east. The scheme therefore benefits from an extensive catchment the town, extending to 47,000 sq ft and located 0.8 miles north of the population, boosted by the tourism to the area. subject property.

Bridges Retail Park | Whitehaven | CA28 7RW 6 SITUATION DESCRIPTION

The park is situated in a prominent and accessible location off Bridges Retail Park is a 42,790 sq ft convenience-led the A5094, which runs through the town and leads to theA59 5A595. scheme that comprises a linear terrace anchored The park is located around 0.8 miles south of the town centre and by B&M, which extends to just over 24,000 sq ft. benefits from excellent visibility from the road. Access is provided Carpetright, Shoe Zone and Greggs compriseM9 the EDINBURGH A1 via a traffic light junction on the main road. The immediate remainder ofM8 the units. There is also a standalone surrounding area is predominantly residential, whilst there is a McDonald’s unit with drive-thru to the M8north east Morrisons foodstore and associated petrol filling station opposite boundary of the site. Servicing and staff parking are A7 the property, with the town’s leisure centre sandwiched between to the rear of the terrace and to the side of B&M. the two properties. M77 ROSEHILL Internally, the units are fitted out to the individual A71 tenants’ specifications. B&M extendedM74 into the A72 adjacent unit in 2019, giving them a full format store. There is potentialA76 to further extend the unit to A595 provide a garden centre. The units do not currently A1 have mezzanines in, but they could be installed, A708 VICTORIA RD MORESBY PARKS subject to planning.

MORESBY PARKS RD Car parking is located to the front of the units, with A7 A68 A713 some spaces fronting Flatt Walks in front of theA74(M)

WHITEHAVEN RED LONNING McDonald’s unit. The scheme has 200 dedicated car parking spaces, equating to a parking ratio of 1 : 214 sq ft. WHITEHAVEN Access and egress to the scheme is via the main entrance, which also provides access to the adjacent NEWCASTLE UPON TYNE BRIDGES RETAIL PARK Morrisons foodstore and sports centre. However, CARLISLE A69 there is a separate exit from the scheme car park. SUNDERLAND

A5094 Servicing is to the side and rear of the units and is MORESBY RD

CORKICKLE also accessed via the car park. A68 A595 FRIZINGTON A1(M) PENRITH CORKICKLE CLEATOR MOOR RD M6 GINNS TO KELLS RD SITE MIDDLESBROUGH

WHINLATTER RD EGREMONT RD FRIZINGTON RD A66 B5345 TheKEEKL Esite TERRAC Earea extends to 3.78 acres (1.53 hectares), giving a very low site cover of 27% andB52 9allows4 for future

A595 development, subject to planning. MEADOW RD KENDAL

WHITEHAVEN RD HIGH RD A61 TENURE A1(M) MIREHOUSE RD CLEATOR MOOR M6

For indicative purposes only. Not to Scale. Freehold as delineated in red on the scheme plan. Each of these plans are for indicative purposes only. Not to Scale.

Bridges Retail Park | Whitehaven | CA28 7RW 7 TENANCY

The scheme is fully let with a WAULT of 5.3 years to break, producing a total rent of £376,730 per annum with a very low average rent of just £8.80 per sq ft.

Unit Tenant GIA Lease Term Lease Lease Next Rent Current Rent Rent Percentage (sq ft) Start (years) Expiry Break Review (per annum) (per sq ft) of Income

1 B&M Retail Ltd 14,015 14/07/2014 10 14/07/2024 - - £112,000 £7.99 30%

2 Opus Homewares Ltd 10,000 23/02/2019 5 13/07/2024 - - £73,000 £7.30 19% (t/a B&M)

3 Carpetright Ltd* 9,601 25/12/2016 10 24/12/2026 - - £82,500 £8.59 22%

A3 Mcdonald’s Restaurants Ltd** 3,134 05/10/1999 40 04/10/2039 - 05/10/2024 £39,000 £12.44 10%

4 Shoe Zone Retail Ltd 4,023 24/02/2020 5 23/02/2025 - - £40,230 £10.00 11%

5 Greggs plc 2,017 18/11/2019 10 17/11/2029 18/11/2024 18/11/2024 £30,000 £14.87 8%

Total 42,790 WAULT 5.3 £376,730 £8.80

* Under offer for a reversionary lease for 5 years from the original lease expiry of 24/12/2021. Tenant to receive 9 months rent free from 01/05/2021 ** 15 year reversionary lease commencing 05/10/2024 whereby the rent increases to the greater of OMV or £78,000. Area at review is 3,120 sq ft. PLANNING

Planning permission was originally granted in 1999 for the McDonald’s drive-thru unit and then subsequently for the development of 5 non-food retail units in 2000. The consent did not restrict on unit sizes or sub-division. Therefore, it is considered the scheme has a Class E planning consent.

Further details are available on request.

Bridges Retail Park | Whitehaven | CA28 7RW 8 Sales Profit/Loss Year Net Worth D&B Unit Covenant Turnover Pre-tax Asset Management Ending (000’s) Rating (000’s) (000’s)

We understand the scheme trades well, as evidenced by B&M extending into the adjacent unit 28/03/2020 £3,148,497 £262,360 £806,847 1 B&M Retail Ltd 5A2 and, more recently, McDonald’s taking a 15 year reversionary lease from 2024, and Carpetright 30/03/2019 £2,801,499 £273,046 £760,585 under offer on a 5 year reversionary lease from lease expiry. Although the park is fully let and income producing, there are asset management opportunities which could be undertaken to 28/03/2020 £0 £94 £76 create further value here. 2 Opus Homewares Ltd D2 30/03/2019 £0 £0 £0

There is potential to consolidate Units 1 and 2 under one lease to B&M and extend the lease 27/04/2019 £386,400 -£24,800 £20,100 term. There is the opportunity to remove the break within the Greggs lease in 2024. 3 Carpetright Ltd O4 28/04/2018 £443,800 -£70,500 -£7,700

The McDonald’s rent increases to a minimum of £78,000 per annum or OMV, whichever is higher Mcdonald’s 31/12/2019 £1,402,777 £405,994 £994,325 A3 5A2 at rent review in October 2024. We believe that, given the current strength of the drive-thru Restaurants Ltd market, there will be sufficient evidence to achieve an uplift at review ahead of the minimum rent 31/12/2018 £1,514,374 £406,278 £1,098,986 of £78,000 per annum which equates to £25.00 per sq ft. 05/10/2019 £162,047 £6,898 £32,343 4 Shoe Zone Retail Ltd 4A3 29/09/2018 £160,615 £11,433 £39,128 28/12/2019 £1,167,900 £108,300 £334,200 TENANTS’ COVENANTS 5 Greggs plc 5A1 29/12/2019 £1,029,347 £82,618 £316,987 B&M is a chain that employs over 32,000 people in the UK and continues to expand * COVID-19 Industry Impact ** COVID-19 Listed Margin Companies into new stores across the UK every year. They have 656 stores in the UK and have been able to stay open during the COVID-19 lockdowns in the UK due to their essential status.

Opus Homewares was a furniture and homeware store that was acquired by B&M Retail Ltd in 2010. The 36 stores were rebranded as B&M Homestores after the deal completed and this particular store has been combined with the B&M next door and trades as one store.

Carpetright is one of the largest UK retailers for floor coverings and currently operates out of 316 stores. It is now owned by Meditor, a UK based asset management company.

McDonald’s is the largest fast-food chain in the UK and the world’s largest restaurant chain by revenue. The company was founded in 1940 and is a public limited company.

Shoe Zone is a footwear retailer which was founded in 1917. The retailer has 500 stores across the UK, with their first ‘out of town’ store opening in 2018.

Greggs is a bakery chain that was founded in 1939 and now has over 2,000 outlets and is the number one food specialist retailer in the UK (Mintel Rankings, 2021).

Bridges Retail Park | Whitehaven | CA28 7RW 9 Sports Centre Further Information

Should you require further information or wish to view the property, please contact either:

Ellie Kirkby M: 07764 241 898 E: [email protected]

Carys McCulloch M: 07552 246 069 E: [email protected] avisonyoungretail.co.uk EPC’S

The EPC’s are available on request.

VAT IMPORTANT NOTICE Avison Young hereby gives notice that the information provided either for itself, for any joint agents or for the vendors lessors of this property whose agent Avison Young is in this brochure is provided on the following conditions: The property has been elected for VAT and therefore VAT is payable, and the transaction will be 1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. treated as a Transfer of Going Concern. 2) All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. 3) No person in the employment of Avison Young, or any joint agents, has any authority to make or give any representation or Proposal warranty whatsoever in relation to the property or properties in this brochure. 4) All prices quoted are exclusive of VAT. 5) Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of We have been instructed to seek offers in excess of £4,285,000 (Four Million, Two the brochure which were prepared solely by third parties, and not by Avison Young. Hundred and Eighty Five Thousand Pounds), subject to contract and exclusive of VAT. Anti-Money Laundering: To comply with our legal responsibilities for Anti-Money Laundering, it will be necessary for the A purchase at this level would reflect an attractive net initial yield of 8.25%, assuming successful bidder to provide information necessary to complete these checks before the deal is completed. Information purchasers’ costs of 6.56%. required will include: 1) Corporate structure and ownership details. 2) Identification and verification of ultimate beneficial owners. The yield increases to a minimum of 9.10% in October 2024 on commencement of the 3) Satisfactory proof of the source of funds for the buyers/funders/lessee. McDonald’s reversionary lease. June 2021 Brochure by Adrian Gates Photography & Design : 07710 316 991 This reflects a low capital value of just £100.00 per sq ft and £1,132,400 per acre.

Bridges Retail Park | Whitehaven | CA28 7RW 10