PRIME FOOD STORE INVESTMENT OPPORTUNITY

ALDI, TARVIN ROAD BOUGHTON, , CH3 5ND gva.co.uk/8983 ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

EXECUTIVE SUMMARY - Opportunity to purchase a supermarket investment within the affluent and historic cathedral City of Chester - Limited supply for additional retail schemes within the city which was reflected by ALDI being prepared to take overriding lease to secure the property and then sublet to Home Bargains and Carpet Factory - The site obtained substantial other interest from food operators and residential developers when last marketed

- Let to ALDI (5A1) for 20 years from 2 September 2013 at a current rent of £485,000 pa

- Current rent equates to only £12.70 /sq ft - Fixed five yearly rent reviews based upon 2.5% pa uplifts with the next uplift September 2018

- Offers in excess of £9,650,000 (nine million, six hundred and fifty thousand pounds) which reflects a net initial yield of4.75% , rising to 5.37% in September 2018 and 6.881% by September 2028, net of costs at 5.8% ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

LOCATION

Chester is an attractive and affluent historical cathedral city, an important tourist destination and the administrative centre for the county of Cheshire. Chester is located approximately 45 miles (72km) south west of and 13 miles (21 km) south of . SCOTLAND It is one of the major retailing centres in the North West ranked 27th in the UK having an estimated catchment of 326,000 which increases with the influx of Glasgow tourists which are estimated at over 8 million each year. Edinburgh

The city’s major attractions include shopping, Chester Cathedral, Newcastle M66 NORTHERN Roman archaeology, Chester Zoo (currently having a £300m IRELAND BURY Horwich A58 extension), the racecourse, the castle and the historic Rows and Belfast 27 2 BOLTON 20 3 Amphitheatre. Ormskirk 6 A58 19 Leeds M58 5 M61 Radcliffe 3 4 The District of Chester has a very affluent population, well Dublin Manchester 4 19 Liverpool 5 26 3 17 20 1 16 above the national average in terms of wealth. Over 80% of Walkden 15 1 CHESTER 14 Wardley the City’s working population are involved in the service IRELAND 25 7 A580 sector with major employers being Lloyds Bank, HSBC, M6 12 SALFORD 24 1 2 A6010 3 Birmingham 6 A580 11 Eccles Marks and Spencers and MBNA Europe Bank. M57 23 10 ENGLAND Bootle 4 ST HELENS M62 MANCHESTER 3 Chester benefits from excellent road communication links, 22 102 11 A6 Cardiff 10 6 A34 with the M53 Motorway accessed via junction 12, situated Bristol London A5058 21A 1 9 A56 5 5 M62 approximately 3 miles (5 km) to the east. In turn the M53 6 7 1 4 2 2 21 3 1 3 A553 2 provides direct access to the Wirral to the north west, to the A5300 4 M60 3 LIVERPOOL 5 and the national Motorway network via the A562 Widnes 20 8 M56 A41 A56 7 6 M6. In addition, the A55 (coast road) provides access to Prestatyn Speke 9 Manchester 10 Airport . Liverpool John Lennon 11 Airport A540 M53 A557 A34 12 19 5 6 Manchester International Airport is situated approximately 30 miles (48 km) to the east and Liverpool’s John Lennon Airport situated 24 7 M6 8 9 A533 A537 miles (39 km) to the north, both service the City. Rail access is via Crewe to London Euston (2 hours 20 minutes), Liverpool Lime Street M56 A556 (45 minutes) and Manchester Oxford Road (1 hour 10 minutes). 14 A537 A548 10

11 A49 Flint 15 NORTHWICH A41 A5117 A556 A54 A34 12 A533 18 A494 A51 A54 A49 CHESTER A55 Congleton 17 A494 THE PROPERTY A50 A41 A51 A34 A530 A534 M6

A534

16 Nantwich A500 ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

SITUATION

The property is situated in the densely populated residential suburb of Boughton, approximately 1.5 M56 0 15 5

5

miles east of the City centre. The property is accessed directly off the A51 which is the main arterial route A To Manchester out of the city connecting to the A41 and A55. In turn the A55 then connects with the M53 and M56 To Ellesmere Port motorways. 11 A 548

A 4 1 M53

R IN G R O A D A 5 4 0

P A R K Hawarden Bridge G 48 A A5 T THE PROPERTY S E EA R LAND O ROA A D D Shotton 12

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1 Bache 1 A 4 Connah’s 6 1

Quay Queensferry R Y I A N W E G A5 L 48 O R S O O 4 E H A B 8 A L 6 D L 4 A 5 CHESTER A N A C D A C HE RO K GENERAL A D ST D IA STATION E M R R Chester 5 O 5

N O A

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D S OA R T. B51 RVIN 5 A Y A 115 A51 T W A 2 HI 9 CHESTER TC W HU Chester RCH S A5116 Birkenhead 15mls R S B5 O 1 83 A E A546 Y 2 4 D A 9 A R

Queensferry 6mls P W E Hawarden D X L A E

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D N A W A A O M To North Wales R S T Y OSW NORTHGATE ST IT C AL B 5 City D 1 ’S 25 Walls WAY BOUGHTON S

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M P Cathedral GHTON A BOU TARVIN ROAD R CHESTER A51 T Buckley N WA I LE N S EX 55 ’S ’S PRE A SS Ci WA Y W Y WA t S y S AY AY RE A A5 P W 5 5 S EX 11 WALE a 5 N l CH A l B 5 s R 5 IS 4 R 8 1 TLE o TGATE ST 3 T N B O a E 0 N d NI R W City Wall ROA

ID Grosvenor Park S WATERGATE ST EAS C C D A R H G A N N O E ST E N D T LA S E H Y ST RE O T J S T L ST S A

T. Amphitheater N Nuns Road LI E ER ST PP s PE Friar Grey D LOWER R s R Friar O k N lac E B V S O BRIDGE ST GR ST CASTLE Roodee

Chester Racecourse

D County R Hall

R C Old Dee Bridge O a E N stle E Dri E A483 v D OSV e

GR R E V I Grosvenor Bridge R

A483 12mls ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

ACCOMMODATION The property extends to approximately 38,178 sq ft (3,547 sq m). Out of this total area approximately 8,081 sq ft is sublet to Baycrown Ltd, trading as The Carpet Factory and 12,000 to TJ Morris trading as Home Bargains. ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

DESCRIPTION

The property comprises a detached retail warehouse unit constructed in the mid 1990’s on an island site of 3.6 acres (1.46 hectares).

The property which was formally occupied by Focus was refurbished in 2013. The property now creates effectively three units, the supermarket occupied by ALDI and 2 other retail warehouse units occupied by Home Bargains and the Carpet Factory.

The property is of a steel portal frame construction under a pitched roof with external part brick and part metal clad elevations. The unit benefits from approximately 196 car spaces providing an excellent ratio 1:195 sq ft. ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

PLANNING TENURE

Planning consent was granted on 5th July 2013. The permission grants an with a maximum 30% of floor area for convenience goods and 25% for Freehold. open A1 discount retail food store use on the area to be occupied by Aldi food and drink products. The area occupied by The Carpet Factory has a with a maximum 15% of net sales floorspace for comparison goods. The restriction to electrical goods, home furnishings and motor accessories. area occupied by Home Bargains has the benefit of non food class A1 use TENANCY

The property has been let on an overriding lease to Aldi Stores Limited for a term of 20 years on FRI term from 2 September 2013 subject to five-yearly, upwards-only rent reviews based upon 2.5% per annum compounded.

The current rent passing is £485,000 per annum equating to a low base of £12.70 per sq ft.

The fixed rental uplifts are as follows:

Date Rent Rent Per Sq Ft Current £485,000 £12.70 Sept 2018 £548,729 £14.37 Sept 2023 £620,832 £16.26 Sept 2028 £702,409 £18.40

T J Morris Limited trading as Home Bargains have sublet approximately 12,000 sq ft of the total floor space from Aldi Stores Limited on a 20 year sublease at an initial rent of £156,000 pa subject to obtaining a satisfactory planning consent. Rent reviews are five yearly to 2% pa compound.

A further part of the property (approximately 8,081 sq ft) has been sub let to Baycrown Ltd, trading as The Carpet Factory on FRI terms for 15 years from 25 March 2010 at £72,000 pa subject to five yearly rent reviews. ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

COVENANT INFORMATION

Aldi is a leading global discount supermarket chain established in Germany in 1913 with over 9000 stores in 18 countries with an estimated combined turnover in excess of €50 billion. Further information on the company can be found at www.aldi.com.

Aldi Stores Ltd is a private limited company incorporated in 1988. Following the opening of its first supermarket in 1990 in the UK the company now trades from over 500 stores and has ambitious growth programme in the UK looking to have over 1000 stores by 2021.

A summary overview of their latest filed accounts is as follows:

31/12/13 £ 31/12/12 £ 31/12/11 £ (000’s) (000’s) (000’s) Sales Turnover 5,271,852,605 3,885,277,530 2,762,561,383 Profit/(Loss) 260,893,847 157,900,416 70,518,793 Before Taxes Tangible Net 1,817,950,230 1,607,814,660 1,510,238,658 Worth

The company currently have a D&B rating of 5A1 which represents a minimum risk of business failure. ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

EPC PROPOSAL

The property has an EPC rating of B. A full copy can be downloaded at gva.co.uk/8983 We are instructed to seek offers in excess of £9,650,000 (nine million, six hundred and fifty thousand pound) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level would show the following VAT yield profile:

The property is elected for VAT. Initial 4.75% September 2018 5.37% September 2023 6.08% September 2028 6.88%

This shows an equivalent yield of 6.07% and a true equivalent of 6.29%. Net of costs at 5.8%.

FURTHER INFORMATION

Should you wish to inspect the property or require additional information, please contact: David Winterbottom Gurminder Manak 0161 956 4103 0161 956 4105 [email protected] [email protected]

Bilfinger GVA Norfolk House /8983 7 Norfolk Street Manchester M2 1DW

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. July 2015.

RB&Co 0161 833 0555. www.richardbarber.co.uk