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Gallows Corner Retail Park

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Gallows Corner Retail Park PRIME LONDON RETAIL WAREHOUSE INVESTMENT GALLOWS CORNER RETAIL PARK A12 COLCHESTER ROAD ROMFORD RM3 0AD A RARE INVESTMENT OPPORTUNITY TO ACQUIRE AN OUTSTANDING LONDON RETAIL PARK WITH EXCEPTIONAL TENANT DEMAND. GALLOWS CORNER RETAIL PARK INVESTMENT SUMMARY • Outstanding London retail park located within the M25 at the junction of the A12 and A127. An average of 88,833 vehicles pass the property each day. • Romford is a sub-regional centre with a primary catchment population of 626,000 and a shopping population of 341,000, ranking the town 25th of the PROMIS centres. Romford’s population is forecast to grow at over twice the national average. • Gallows Corner Retail Park is a well laid out scheme of 92,538 sq ft with substantial frontage and access to both the A12 and the A127. • The park is let to Next, Argos, Magnet, Halfords, Furniture Village, DFS and Harveys, producing a total rent of £3,098,514 per annum (£30.85 – £38.60 psf). • The property has a part open A1 / part wide bulky goods planning permission. The local authority have supported recent applications to widen the use. • Since its development in 2000, the park has always enjoyed exceptional tenant demand due to its very large and affluent catchment and lack of good quality competing parks. Accordingly strong rents have been agreed with minimal incentives. • The park has enjoyed strong, ongoing, rental growth. In 2015 the lease renewal of Halfords and the rent reviews of Furniture Village and Magnet all showed significant rental uplifts. • Asset management opportunities exist to effect further new lettings upon the park and thus create a substantial reversion. • Our clients are seeking offers in excess of £61.65 million for their freehold interest in the property. A purchase at this level would show a yield of 4.75%, after allowing for purchaser’s costs of 5.8%. Upon settlement of the outstanding DFS rent review, our clients are seeking a top up payment equal to the additional rent agreed, capitalised at the purchase yield. CANARY WHARF CITY OF LONDON LOCATION Romford is a large town situated within Greater London and is the administrative centre of the London Borough of Havering. The town is one of London’s key commercial centres. Romford is strategically located approximately 11 miles north east of the City of London, which by road can be directly accessed via the A12. The A12 Colchester Road is one of London’s major arterial routes leading north east from the city to the North Circular (and M11), Romford, Brentwood, Chelmsford, Colchester, Ipswich and the ports of Lowestoft / Great Yarmouth. The A127 runs east from Romford to ROMFORD Junction 29 of the M25 and then on to Basildon, Rayleigh and Southend on Sea. By rail Romford is just 15 minutes from London Liverpool Street station and is located within Travel Zone 6. At peak times trains run every seven minutes into the city. The 2013 / 14 National Rail Annual Entry and Exit Survey counted 8.265 million individual journeys through Romford station. From 2019, Romford will be fully served by Crossrail, which A12 will directly link the town to London’s West End at Tottenham Court Road and Bond Street (34 minutes) and beyond to Heathrow Airport (62 minutes), Slough, Maidenhead and Reading. Crossrail services will run every 15 minutes. Romford also has excellent transport connections to all of London’s airports. The closest airport is London City Airport, A127 which is just eight miles south west of the town. ROMFORD IS JUST 15 MINUTES FROM LONDON LIVERPOOL STREET BY RAIL AND WILL BE A12 FULLY SERVED BY CROSSRAIL FROM 2019. GALLOWS CORNER RETAIL PARK DEMOGRAPHICS SITUATION As a result of Romford’s proximity and excellent Gallows Corner Retail Park is strategically transport links to the City and Central London, situated on a site fronting the A12 Colchester AN AVERAGE OF 88,833 the town has a large and affluent population. Road, Gallows Corner roundabout and the A127. According to the Department for Transport, there VEHICLES PASS THE M1 PROMIS define Romford as a sub-regional was an average of 88,833 vehicles passing the centre, with a primary catchment population property per day in 2014 on the A12 and A127. A10 A5 of 626,000, very significantly above the PROPERTY PER DAY ON average, ranking it 24th of all PROMIS centres. Immediately to the north-east of Gallows Corner PROMIS estimate the shopping population to be Retail Park is a 114,000 sq ft 24 hour Tesco THE A12 AND A127. 341,000, ranking Romford 25th of all PROMIS Extra foodstore with a petrol filling station. M11 Department for Transport 2014 centres. The high shopping population ranking To the north of the property, across the A12, is A12 A406 reflects the strength of loyalty to Romford from a 72,315 sq ft B&Q Warehouse and a newly its catchment. constructed KFC drive-thru. M25 A1 Experian calculate that there are 164,373 people living within the key ten minute drive-time of Gallows Corner Retail Park. ROMFORD Both the shopping population of Romford and the ten minute drive time catchment population A40 A13 LONDON are young and affluent. The C2 ‘skilled manual M4 A4 worker’ social grade category is significantly over represented in the ten minute drive time A12 catchment and the E ‘state benefit / unemployed’ social grade is very significantly under A2 M25 represented. Furthermore, Romford’s population A12 is forecast to see significantly above average G A L L O W S C O R N E R M25 R E TA I L PA R K growth over the period to 2020, with a 1.6% A118 A205 increase (compared to the UK average of just A127 A20 0.75%), and then consistently above average growth to 2032. A3 R O M F O R D A118 A23 Population Growth M20 U P M I N S T E R 1.6% A124 A125 H O R N C H U R C H 0.8% % per annum 0.0% 2001 – 2015 2015 – 2020 Romford PROMIS retail average C R O S S R A I L O P E N S 2 0 1 9 GALLOWS CORNER DESCRIPTION ENVIRONMENTAL The property comprises a modern, purpose built, retail Waterman Energy, Environmental and Design Ltd carried out warehouse park of 92,538 sq ft, currently arranged as seven a Phase 1 Environmental Assessment of the property in June units. It was constructed in 2000 by Chartwell Land. 2012 and their report concluded that in its current use and form the property represents a Low Risk of contaminated land The park is laid out as a terrace of six retail warehouse units liabilities or costs. running along the southern side of the site, with a solus unit to the north adjoining the A12. PLANNING The scheme has three points of access; an entrance / exit from the A12, an entrance from the A127 and a further Planning consent for retail use on the site has been achieved entrance / exit in the north east corner of the site from Bryant through multiple consents dating back as far as 1983. Avenue, the latter allowing easy access for shoppers visiting the Tesco Extra. Units 1 – 5 have consent for the sale of DIY goods, furniture, carpets / floor coverings, motor accessories, cycles / There is a large customer car park in the preferred accessories, gas / electrical goods, pets / pet products, office arrangement to the front of the units. The site provides a equipment, footwear and sports goods. total of 344 car parking spaces giving an excellent parking ratio of 1:269 sq ft. Units 6a / 6b originally had consent for DIY goods, furniture, carpets / floor coverings, motor accessories, garden products The scheme is of steel portal frame construction under and electrical goods. However, in November 2008 a pitched clad roofs. With the exception of Unit 6a, all units consent for Unit 6b was granted to widen this use to include have composite clad elevations. The new Next unit (6a) has ‘catalogue shop retailing’ to allow Argos to trade. a fully glazed elevation with brick detailing. In 2013 consent was granted for the sale of fashion and Units 2, 3, 4, 5 and 6a have the benefit of mezzanine floors footwear items in Unit 6a, together with the installation of with consent for retail use. a full cover trading mezzanine and the provision of a café. A secure service yard is located to the rear of the main terrace The scheme therefore has a very flexible, part open A1, which has a separate access from Bryant Avenue. part broad bulky goods, planning consent. Importantly, the local authority have supported the various SITE applications to change the retail use of the scheme which has ensured its ongoing success. The site is level and broadly rectangular in shape. It extends to approximately 6.40 acres (2.44 hectares). TENURE The property is held freehold. W N A E Y A V E 1 t 35.4m o C 3 1 R Sta 8 Sub Holsworthy House E El 2 S 9 C 6 E 9 N 9 T 4 6 2 Tk 2 1 Mayhill 1 3 Lodge E OS C CL T R E A 7 R N 8 8 O 0 D G LE 1 P 5 E P 7 t 5 N A o t 7 o T 8 6 3 5 8 1 a L 3 2 5 6 IN 7 1 K 8 7 El t o 9 7 Sub Sta El Sub Sta 9 7 4 W AY a W 7 r 5 34.4m d 1 5 7 a B 0 d y 3 3 t o 2 4 9 17 B&Q WAREHOUSE N E 1 E 4 A OS El V CL 25 3 Sub Sta E D 7 R 9 7 2 3 O 1 C 1 EF R ID B 9 E t o S 1 7 2 C 8 1 E N 14 T 6 11 0 2 6 5 4 9 Car 1 1 Park 0 P b A I 3 1 G 5 34.1m 0 8 a N T O 1 N 0 C L O S 3 3 E 5 S 0 1 11 5 T h 2 s li 9 R aw 4 A D k 7 2 l 2 I a 0 7 4 6 LB 2 G W NT 51 H E Y 4 C T S Chy 1 E E lk R R a 5 C 4 W L E 8 V O 1 h V lis E A A E aw R N D D 7 9 T 7 1 4 1 O 3 6 4 0 R N 7 a C v 5 L e O S n S 1 c s 5 E b 1 h 1 o 7 5 o 9 9 2 u 7 o 6 r 6 l n 7 2 e 5 5 6 5 4 71 3 32.3m 39 4 2 9 9 5 5 5 8 6 6 5 El 3 5 2 5 Sub Sta 4 3 5 6 0 1 l 2 l a 4 El H 4 7 alk d 9 h W oo lis Sub Sta 59 5 W 1 1 w 8 2 4 6 4 a 6 D a 2 o d b St 1 t ol to El Su r 1 a a 2 H ts Pos 5 4 NT 3 E 4 5 7 1 2 1 4 1 3 c 4 3 2 H 4 3 6 a 3 r o 9 l t d o
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