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Redditch Lidl, Battens Drive, B98 0Lj

Redditch Lidl, Battens Drive, B98 0Lj

, BATTENS DRIVE, B98 0LJ

PROMINENT LONG-LET FOODSTORE FORWARD COMMITMENT WITH CPI LINKED RENTREDDITCH, REVIEWS BATTENS DRIVE LIDL | 1 INVESTMENT PROPOSAL OPPORTUNITY We are instructed to seek offers on a forward commitment basis in excess of ■ Forward commitment opportunity to acquire a new foodstore pre-let to Lidl. £6,129,000 NET INITIAL YIELD 4.50% ■ Strategically situated in an established residential area, just Running Yield 2026 4.91% 1.5 miles to the east of Redditch town centre. Running Yield 2031 5.41% ■ Purpose built, newly constructed 17,825 sq ft (1,656 sq m) Running Yield 2036 5.97% standalone foodstore with 99 car parking spaces (1:180 sq ft ratio). Running Yield 2041 6.59% ■ AFL agreed with Lidl UK GMBH for an attractive 25-year lease (tenant *Running yields based on Oxford Economics CPI Forecast. option to break in years 15 and 20). Subject to contract and exclusive of VAT. ■ Attractive 15-year term certain Yields are net of purchaser’s costs of 6.63%. secured against a 5A1 rated covenant. ■ Strong income profile, subject to 5 yearly CPI linked rent reviews (capped at 2% per annum compounded or 10.41% over the 5 year period). ■ Affordable commencing rent of £294,112.50 pa, reflecting £16.50 psf. ■ Lidl is one of ’s leading retailers, now operating from over 800 stores in the UK. ■ Limited competition in the immediate 5-minute drive time catchment. ■ Freehold . ■ Practical completion anticipated November / December 2021.

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REDDITCH, BATTENS DRIVE LIDL | 2 LOCATION & MEASHAM COMMUNICATIONS WESTON-UNDER-LIZARD M6 CANNOCK LICHFIELD WROXETER Redditch is positioned in north east , approximately 16 miles (25km) to the south of , M54 M6 TOLL 20 miles (32 km) north east of Worcester and 25 miles (40 TAMWORTH km) west of Warwick and Leamington Spa. BOSWORTH WALSALL The town is strategically positioned and highly accessible, ATHERSTONE benefitting from excellent communications links. WOLVERHAMPTON M42 M6

DITTON PRIORS BIRMINGHAM BEDWORTH M1 The M42 (Junction 2) is Redditch Railway Birmingham accessed via the A441 Station provides International Airport, M6 directly north, which regular direct services one of the UK’s largest STOURBRIDGE runs west to Junction to Birmingham airports, is located HIGHLEY 5 of the M5 motorway New Street station approximately 20 MERIDEN and east to the M40 (fastest journey time miles (32 km) to the motorway and the M6 of approximately 37 north east, providing Toll. The A441 forms minutes), and from daily services to over the main north-south there direct to 150 destinations. REDNAL arterial route which Euston in 83 minutes. connects Redditch to Birmingham City M42 KENILWORTH centre, whilst the adjacent M45 Highway (A448) REDDITCH M40 provides access to the A448 neighbouring towns and catchment of A435 ROYAL Bromsgrove. SHELSLEY WALSH LEAMINGTON SPA

A441 A46 M5 WORCESTER A422 STRATFORD-UPON-AVON STRATEGICALLY “ M40 POSITIONED TO THE KINETON SOUTH OF BIRMINGHAM, A46 BENEFITTING FROM STRONG TRANSPORT LINKS EVESHAM MICKELTON ” BANBURYBANBURY REDDITCH, BATTENS DRIVE LIDL | 3 STRATEGIC 2 SITUATION ENFIELD A4441 The property will be strategically A4023A4023 MOONS situated in an established residential MOAT SOUTH area, 1.5 miles to the east of Redditch town centre, off Battens Drive (B4497). Arrow Valley The A4023 provides direct access into BATCHLEY 5 REDDITCH Country Park the town centre and connects to the TOWN LAKESIDE CENTRE A4441. WINYATES The immediate area includes the WEST more affluent residential suburbs of Winyates West, Matchborough B4497 1 and Ipsley, which have all seen and 3 continue to benefit from a number of proposed residential schemes, to meet 1 the needs of the growing population. A448A448 IPSLEY SOUTHCREST The store will be positioned opposite A4189 3 the South Moons Industrial Estate and 4 5 adjacent to the Arrow Valley Country 2 A4441A4441 Park. The surrounding area comprises predominantly residential dwellings, with light industrial use to the north east and east of the site on Moons Moat MATCHBOROUGH North Industrial Estate. GREENLANDS HEADLESS CROSS

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OAKENSHAW FOODSTORE COMPETITION

Competing foodstores 1 3 5 Lidl within a 10-minute drive as Warwick Highway, B98 0SW Jinnah Road, Redditch, B98 7ER The Quadrant, B97 4HL highlighted - the majority 33,882 sq ft net sales 50,425 sq ft net sales 10,599 sq ft net sales positioned within the 0.9 miles (3-minute drive time) 2.5 miles (5 minute drive time) 1.9 miles (5 minute drive time) centre of Redditch and importantly only one store 2 4 within a 5-minute drive Sainsbury’s time. Abbey Park, B97 6RF Coldfield Drive, B98 7RU 49,200 sq ft net sales 81,960 sq ft net sales 2.1 miles (5-minute drive time) 4.3 miles (6-minute drive time)

REDDITCH, BATTENS DRIVE LIDL | 4 HOLLYWOOD DICKENS HEATH CATCHMENT & CHADWICH DEMOGRAPHICS TILBURY GREEN Redditch benefits from a large primary catchment CHESWICKGREEN LYDIATE ASH of 108,000 people and a customer base of 118,000. HOPWOOD M42 The catchment is set to expand, with the M5area COTTON HACKETT forecast to see a 6.3% growth in population over ILSHAW HEATH EARLSWOOD the period 2020 – 2030. The Borough of Redditch INKFORD Local Plan No.4 (adopted January 2017) outlines a requirement for an additional 6,400 dwellings M42 by 2030 within the Redditch borough to meet the demands of the growing population. HOCKEY HEATH BLACKWELL The age profile includes a relatively high proportion PORTWAY of older working aged adults, aged 45-64. In BURCOT contrast, those of retirement age and the younger adult age group of 15-24 years are under- M40 represented. BROMSGROVE ASPLEY HEATH TAMWORTH IN ARDEN The level of car ownership in Redditch is BORDERSLEY significantly above average with a high proportion of two car households, allowing for a HOLT END A38 A441 mobile population.

80.1%STOKE HEATH BENTLEY CAR ACCESS A448 STOKE POUND

ULLENHALL M435 BEAUDESERT STOKE WHARG BANKS GREEN REDDITCH 118,000 CUSTOMER BASE WOODGATE OUTHILL OLDBERROW

6.3% LOWER BENTLEY POPULATION GROWTH MORTON BAGOT EKCOCKS BROOK

HANBURY STUDLEY HAM GREEN Drive Time A448 Drive Time Population Households WOOLMERE GREEN 10 minutes 10 minutes 92,739 38,389 15 minutes ASTWOOD BANK SPERNALL SAMBOURNE SHEFFIELD 15 minutes 164,724 68,368 FOCKENHAM LITTLE ALNE REDDITCH, BATTENS DRIVE LIDL | 5 DESCRIPTION The development will see the demolition of the existing A4023 COVENTRY HIGHWAY Arrow Valley Health Club and erection of a purpose-built, modern foodstore and associated car park. The newly developed foodstore, with a target area of 17,825 sq ft (1,656 sq m) GIA, will be positioned against the western boundary of the site. The main store frontage will overlook the car park which borders Battens Drive. The car park will include 99 spaces, with 5 disabled parking bays, 8 parent and child bays and 10 electric vehicle charging points (providing a ratio of 1:180 sq ft). Customer and servicing vehicular access will be access will be via the same entrance from Battens Drive at the south east of the site.

ACCOMMODATION The property will comprise the following floor areas: CGI of proposed elevations

Description GIA (sq ft) GIA (sq m)

Sales Area 11,183 1,039

GIA 17,825 1,656

Image for reference only – stock image PLANNING Full planning permission (18/01049/FUL) has been granted for the ‘demolition of existing buildings and erection of a Class E retail foodstore with associated car parking, access, landscaping and associated engineering works and relocation of existing substation’.

Planning approval was granted on 21st December 2020. B4497 BATTENS DRIVE

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REDDITCH, BATTENS DRIVE LIDL | 6 TENANCY IDENTITY An Agreement for Lease is in place with LIDL UK GMBH for CHECKS a new 25 year lease (subject to tenant only breaks at years COVENANT INFORMATION 15 and 20), providing 15 years term certain. In order to comply with anti-money laundering legislation, the successful The commencing rent is £294,112.50 per annum, reflecting purchaser will be required to provide £16.50 per square foot and the lease is subject to 5 yearly certain identification documents. The CPI linked rent reviews (capped at 2% per annum required documents will be confirmed compounded or 10.41% over the 5 year period). Lidl UK GMBH to and requested from the successful The tenant has been provided with a 9 month initial rent free Lidl is a leading global retailer, established in purchaser at the relevant time. incentive which will be topped up by the vendor. in the 1930s and now operating from over 10,000 stores across Europe and the . Lidl opened its first UK store in 1994 and has grown consistently over TENURE the last 25 years, now operating over 800 UK stores and employing VAT over 22,000 people. The company currently boasts a market share of Freehold. This property has been elected for VAT 5.9% (as at 24/01/2021), making it the seventh largest food retailer purposes and it is expected that the in the UK, behind its closest rival Co-op (6% market share). investment will be treated as a Lidl have ambitious growth plans and have pledged access to over Transfer of a Going Concern (TOGC). £1bn with the aim of reaching over 1,000 UK stores by 2023. The company has a 5A1 Dun & Bradstreet rating, reflecting a ‘minimum risk of business failure’. The last 3 years of published accounts are highlighted below: CORPORATE STRUCTURE Feb 2020 Feb 2019 Feb 2018 The property is held in a UK registered SPV, Woodbourne Group (Battens Drive) Sales Turnover £51,347,178,330 £45,916,930,023 £39,497,771,683 Ltd. A sale of the shares in the corporate entity is available, with the benefit of SDLT saving. Interested parties should make Pre-Tax Profit £1,888,036,117 £1,650,564,334 £1,443,263,627 further enquiries with Colliers.

Net Worth £11,516,027,088 £10,392,776,524 £9,073,534,453

HIGHLY SOUGHT AFTER COVENANT “AND ONE OF EUROPE’S LEADING FOOD RETAILERS Plan for indicative purpose only

” REDDITCH, BATTENS DRIVE LIDL | 7 INVESTMENT MARKET INVESTMENT CONSIDERATIONS The foodstore market has proven to be one of the most defensive and • Forward commitment opportunity to acquire a newly • Strong income profile, subject to 5 yearly CPI linked resilient sectors and has seen increased investor demand driven by constructed 17,825 sq ft freehold foodstore pre-let rent reviews (capped at 2% per annum compounded strong trading performance, income security and guaranteed rental to Lidl. or 10.41% over the 5 year period). growth as a result of RPI linked / fixed reviews. The sector witnessed Excellent security of income - pre-let to the 5A1 • Affordable commencing rent of £294,112.50 pa, exceptionally strong liquidity in 2020, with £1.89bn of supermarket • covenant of Lidl UK GMBH, one of Europe’s leading reflecting £16.50 psf. asset transactions. This reflected the highest transaction volume over food retailers. the last decade. • Limited competition within the 5-minute catchment. Attractive 25-year lease (tenant option to break in All of the major food retailers have benefited from sales growth over • years 15 and 20), providing 15-years term certain. the last 12 months due to increased consumption at home as a result of changing consumer habits and government enforced restrictions. Kantar estimate take-home grocery sales grew 11.4% in the 12 weeks to 27th December 2020; December was the busiest month ever for British seeing £11.7 bn spent on take-home groceries. Lidl recently posted strong Christmas trading figures, with sales increasing 17.9% year-on-year in the four weeks to December 27th 2020, partly driven by an average increase in basket size of 24.8%. The retailer has strong expansion plans for 2021 and 2022, with £1.3bn of investment linked to opening 100 new stores.

PROPOSAL We are instructed to seek offers on a forward commitment basis in excess of £6,129,000 NET INITIAL YIELD 4.50%

Running Yield 2026 4.91%

Running Yield 2031 5.41%

Running Yield 2036 5.97%

Running Yield 2041 6.59%

*Running yields based on Oxford Economics CPI Forecast.

Subject to contract and exclusive of VAT. Computer-generated image Yields are net of purchaser’s costs of 6.63%.

REDDITCH, BATTENS DRIVE LIDL | 8 FURTHER www.woodbournegroup.com INFORMATION

Becky Hance 020 7344 6841 07894 509 566 [email protected]

Georgie Griffiths 020 7344 6611 07895 261 540 [email protected]

Tom Edson 020 7344 6554 07766 657 478 [email protected]

MISREPRESENTATION ACT DISCLAIMER Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Colliers International Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise 50 George Street, as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. February 2021. London, W1U 7GA Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in & Wales no. 4195561. Registered office: 50 George Street, London W1U 7GA. Designed and produced by Parer Creative. Tel 07702 123482.

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REDDITCH, BATTENS DRIVE LIDL | 9

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