Currys PC World & Carpetright Seamer Road, Scarborough, YO12 4HE
RETAIL WAREHOUSE INVESTMENT CLICK TO ENTER Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
Investment Summary
• Scarborough is a popular seaside town in North Yorkshire, • The property boasts a captive catchment with the nearest • Total rent of £412,000 per annum, reflecting an average rent of 41 miles north east of York. competing centre, York, being around an hour’s drive away. £14.22 per sq ft.
• The town is the largest holiday resort on the Yorkshire coast, • Modern 2 unit scheme totalling 28,970 sq ft. • Asset management potential. with tourism providing an additional £470 million to the local economy annually. • Let to the secure covenants of DSG Retail Ltd and Carpetright plc. • We are seeking offers in excess of £5,725,000 (Five Million, Seven Hundred and Twenty Five Thousand Pounds), subject to • The subject property is located in a prominent and visible • Bulky goods planning consent. contract and exclusive of VAT. A purchase at this level reflects position adjacent to the A64, the main route into Scarborough, an attractive net initial yield of 6.75%, assuming purchaser’s in the main retail warehouse pitch for the town. • Lease expiring in March 2023. costs of 6.62%. Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
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ur a ar le ool Penri Workin on leby in Redcar Westmorland MIDDLES ROU H W i e a en Location arlin on Scarborough is a popular seaside town on the North Sea coast of North Yorkshire. The town is located W i by TEE I E 41 miles north east of York, 46 miles north of Hull, 48 miles south of Middlesbrough and 68 miles
north east of Leeds. SCAR OROU H Scarborough benefits from excellent road communications, being situated on the intersection of the A171, A164, A170 and A64, which provide easy access to York, Hull, Middlesbrough and Leeds, as well Kendal Nor aller on as the M62 and A1(M) motorways. Scarborough railway station provides direct access to York and Leeds, with journey times of 48 T irsk Pi kerin minutes and 1 hour 14 minutes respectively. From both these stations, there are regular trains to l ers on iley London. Ri on Leeds Bradford Airport is situated 70 miles south west, providing internal flights, as well as flights to arro in urness al on European and worldwide destinations. ore a be Bridlington eys a Lan as er Knaresborou Driffield arro a e ORK Fleetwood Ilkley Demographics O ley Scarborough has a catchment population of 147,000 people, with Experian estimating there are LEE Tadcaster arke Cli eroe R OR 60,932 people living within a 10 minute drive time of the subject property, extending to 82,749 people in ley Colne Wei on e erley la k ool Nelson within a 20 minute drive time. Padiham LEEDS ar or Pres on urnley RADFORD elby Scarborough is the largest holiday resort on the Yorkshire Coast. In 2012, the town attracted rin on la kburn ali a HULL Ly a nne s approximately 1.4 million overnight visitors and 6.5 million people on day trips, spending over £470 Todmorden Cas le ord Leyland oole million. In addition, the impact of tourism generated a further £187 million to the local economy, giving ar en Ra ens all ou or Wakefield an overall increase of 7% from 2011. Retail in Scarborough benefited from 25% of the total spend. C orley Rochdale Huddersfield I in a ury T orne un or e The retail spend per person in Scarborough is above the UK average for household textiles and ri sby Or skirk ol on SkelmersdaleStandish Clee or es household goods including white goods. This has a direct positive impact on the retailers at the or by subject property, particularly Currys PC World. The spend per person within the population averages Wi an Kirkby £2.34 and £0.17 on household comparison goods and household services i.e. repairs to appliances, compared with the UK average of £2.06 and £0.13, respectively. LI ERPOOL NC E TER ainsborou E IEL Lou Holyhead Pres a yn ebin on R yl NC E TER Llandudno Re ord Col yn ay Con y ber ele Elles ere Por u on lin C es erfield an or Macclesfield Lin oln C es er
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Leek Cre e Ne ark on Tren Nan i TOKE ON TRENT s bourne os on Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
Situation
The subject property is situated in a prominent and visible location approximately 1.5 miles south of the town centre immediately adjacent to the A64 Seamer Road.
The A64 is a major arterial road and provides direct access to the town centre to the north and to York to the south.
The subject property is situated in close proximity to the dominant retail park in the town - Seamer Road Retail Park. This pitch forms the principal retail warehouse destination for Scarborough.
The surrounding area around the subject property provides a mixture of car showroom, building depots and residential accommodation.
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D R E Retail Warehouse Provision N OR R TH O W H A A S 17 E 1 SC R AL D O F R D R IA R O AM ST T W EH A Scarborough is relatively under supplied in terms of retail warehousing, with the total C S I 1 T R V 6 E 5 D D P R S E N L floor space estimated at 264,000 sq ft (PROMIS), significantly below the PROMIS D A L N E A A 1 V L 7 4 D 6 D 1 A O R O average in terms of overall provision per household. Most goods categories are W 70 A1 STEPNE RD relatively under-represented in the town, particularly fashion and furniture/furnishing
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R S I The main park is Seamer Road Retail Park, located approximately 400 metres
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E N C A L R S 70 S F A1 E IL by B&Q, with other units let to Halfords, Next Home, Brantano, Pets At Home and 427 N E
O N E L P LLE R A CO D E Dunelm. Rents currently range from approximately £11.50 to £18.50 per sq ft. A W 1 S 6 Seamer Road E
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Description
The subject property comprises 2 retail warehouse units totalling approximately 28,970 sq ft. Both 129 car parking spaces are provided to the front of the units, giving a low ratio of 1:224 sq ft. units are of steel portal frame construction with brick and profile steel clad elevations. Internally, the There is a substantial shared service yard to the rear. units are fitted out to the individual tenant’s specification. Bensons for Beds have a concession within the Carpetright unit. The Currys PC World unit incorporates the 3 retail facias; Currys, PC World and The park is accessed directly off the A64 Seamer Road with shared access with MKM Building Carphone Warehouse. Supplies (the UK’s largest independent building merchant).
The Currys PC World unit was refurbished in 2010, with the tenant also installing a part mezzanine. The site extends to approximately 2.82 acres giving a low site cover of approximately 24%, and The Carpetright unit has sufficient eaves height to install a mezzanine, subject to planning. presenting the opportunity to develop further on the site, subject to planning. Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
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Planning consent was originally granted on 8 August 1998, subsequently varied on 20 June 1995 and 2
permits the sale of non-food goods precluding the sale of the following: 2 8 1
(i) food and drink
(ii) magazines, books and stationery El Sub Stas (iii) handbags and luggage SL
(iv) jewellery, perfume, toiletries and cosmetics 1 (v) clothing, footwear and related accessories 4 (vi) CD’s, pre-recorded cassettes and records (vii) cutlery, crockery, small kitchen utensils and non-electrical cookwares Ambulance
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8 8 Furthermore, no unit shall be created by the subdivision of the building that has a gross floor area of less 1 than 10,000 sq ft. 4 1
TRICOURT
Tenure 1 1a 11 9a
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9 9 1 The site, delineated in red on the site plan, is held freehold. 7 a 7 Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1215 Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
Tenancies
The property is let on full repairing and insuring leases as below:
Area Lease Start Lease Term Lease Expiry Next Rent Current Rent Current Rent Unit Tenant Comments (sq ft) Date (years) Date Review (per annum) (per sq ft)
DSG Retail Limited The unit has a lobby area that is not rentalised at rent A 16,368 25/03/1998 25 24/03/2023 25/03/2018 £227,500 £13.90 t/a Currys PC World review.
There is an additional lobby area of 536 sq ft that is valued at half rate. Total area is 13,138 sq ft. The rate B Carpetright Plc 12,602 25/03/1998 25 24/03/2023 25/03/2018 £184,500 £14.64 applied to the main warehouse at the last rent review was £15.50 per sq ft.
TOTAL 28,970 £412,000 £14.22
Tenants’ Covenants Asset Management
DSG Retail Limited is a subsidiary of Dixons Carphone plc, which was formed following the merger on 7 August 2014 of The property benefits from a low site cover of 24% giving the potential for Dixons Retail plc and Carphone Warehouse Group plc. The new company joined the FTSE 100 on 22 September with a further retail development in the car park. market capitalisation of approximately £4.23 billion. The company has almost 1,300 stores across the UK and Ireland. Plans have previously been drawn up for a potential A3/pod unit, which would Carpetright plc is the biggest carpet retailer in the UK with a market share of circa 35% and sells a wide range of carpets, be positioned at the entrance to the property. We believe this would increase rugs, vinyls and laminates, together with beds. There are currently 438 trading stores and concessions in the UK. both footfall and dwell time to the scheme and be of benefit to the existing retailers. The individual tenant accounts are as follows: Further details are available on request.
Pre Tax Sales Net Worth D&B Tenant Year Ending Profit / Loss Turnover (000’S) (000’S) Rating (000’S)
02/05/2015 £4,314,000 £116,800 £395,900 DSG Retail Limited 5A1 30/04/2014 £4,078,300 £94,100 £377,500
02/05/2015 £469,800 £6,600 £3,400 Carpetright plc 2A1 26/04/2014 £447,700 -£7,200 £2,500 Investment Location & Situation & Description Planning & Tenancies, EPC, VAT, Summary Demographics Retail Warehouse Tenure Tenants’ Covenants & Price & Seamer Road, Scarborough Provision Asset Management Contact Details RETAIL WAREHOUSE INVESTMENT
EPC
Unit Tenant EPC Rating
A Currys PC World D100
B Carpetright D95
Copies of the EPC are available on request.
VAT
The property has been elected for VAT, however, it is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).
Price
Offers are sought in excess of £5,725,000 (Five Million, Seven Hundred and Twenty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75%, assuming purchaser’s costs of 6.62%.
Contact Details
Paul Wilkinson Ellie Kirkby Tel: 020 7317 3799 Tel: 020 7317 3790 Mob: 07770 585313 Mob: 07764 241898 Email: [email protected] Email: [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. April 2016. Wilkinson Williams LLP give notice that some of the partnership members have a financial interest in this property. Designed and produced by Creativeworld Tel: 01282 858200.