INVESTMENT OPPORTUNITY The Co-operative MainFOR Road, Ryton, NE40 SALE 3RA

Modern Purpose Built Retail Warehouse Investment – Significant Asset Management Opportunities INVESTMENT SUMMARY

• Modern purpose built foodstore totalling 2,162.1 sq m • Let on a 35 year lease from 29 September 1984 expiring (23,273 sq ft) occupying a prominent frontage onto on 28 September 2019 (c. 2.5 years unexpired) Main Road with an extensive rear yard and car parking • Passing rent of £270,000 per annum (£11.60 per sq ft) • Single let to Co-operative Foodstores Limited with • Strong asset management opportunities including surety provided by Co-operative Group Limited, reletting, reconfiguration and subdivision potential a 5A1 covenant subject to planning • Dominant convenience food offering in a densely • Offers in excess of £3,498,000 which reflect a Net Initial populated area and established commuter location Yield of 7.25% after standard purchaser’s costs of 6.50% YT Location Morpeth

192 189 Ryton is an established commuter town situated

LOCATION 7068 CRMINTON Seaton Sluice approximately 7 miles to the west of Newcastle city 1 1172 centre and 8.5 miles north west of town ospital

Otterburn 19 190 centre. The town forms part of the 192

Ponteland 19 conurbation and has a population of circa 1.1 million 696 Newcastle Whitley ay International irport 189 (2011 census). 1056 illingworth 191

ABERDEEN 1 The town is well served by road communications via Scotland 191 ingston 189 Silverlink Park Retail OSFORT the A695 link road which connects and the 1058 South osforth 1058 69 A1 (M) 3 miles to the south east and and the GLASGOW EDINBURGH eham A68 approximately 8 miles to the west. The closest rail A1 TYNE TUNNE M6 NEWCSTE 193 CARLISLE A69 1018 NEWCASTLE Central Station arrow connection is via Blaydon train station approximately RYTON 6317 A66 A19 184 3 miles to the east which has regular connections to 695 A1(M) YORK LEEDS Prudhoe laydon Metrocentre TESE 184 Newcastle with a journey time of 12 minutes. Newcastle MANCHESTER M1

LIVERPOOL SHEFFIELD 184

19 International Airport is approximately 8.5 miles to the M1 M6 694 1 A1(M) north and provides daily scheduled flights to both BIRMINGHAM 692 194M Wales M1 A1(M) domestic and international destinations. M40 M11 Consett 1231 BRISTOL M4 LONDON SUNERN

1M Washington

urham Teesside South South 690 Situation The property is situated centrally within Ryton with an extensive frontage to Main Road (B6317). Access is provided via Parsons Drive, connecting to the main Ryton Towers car park and service yard to the rear. Main Road forms the town’s main high street and provides a linear focal point to the town’s retail provision. Main Road 6317 Main Road RYTON 6317 The property provides the dominant food retail provision within the town. The surrounding area is predominantly residential with nearby occupiers eham Old Road on Main Road including national multiples such as 6317 Barclay’s Bank and Sainsbury’s Local in addition to local independents such as a bakery and pharmacy. Stargate ane

Ryton RUFC 6315

695 DESCRIPTION

The property comprises a detached retail warehouse of steel portal frame construction with part brick and part profile metal clad elevations. Following a fire in 1999, the property was entirely rebuilt and as such is modern in specification providing accommodation perfectly suited to current retail requirements. The sales area is set out entirely over the ground floor with ancillary offices, staff accommodation and plant room facilities at first floor level. The rear of the property comprises a store room, refrigeration units and loading bay access. Externally the property benefits from an extensive shared car park providing 92 delineated spaces to the front and side of the property. In addition to this there is an ample service yard and loading bay to the rear. RYTON’S DOMINANT RETAIL PROVISION YT

Morpeth

192 189

7068 CRMINTON Seaton Sluice 1 1172

ospital

Otterburn 19 190 192

Ponteland CATCHMENT ANALYSIS 19 696 Newcastle Whitley ay International irport 189

1056 illingworth 191

5 minute drive time 10 minute drive time 15 minute drive time NE401 3RA

191 Tynemouth ingston Silverlink Callerton Park Retail OSFORT 189 Population of 147,784 1058within a 15 South osforth minute drive time of the property. 1058 North Shields 69 eddon-on-the-Wall Wallsend South Shields 69 TYNE TUNNE NEWCSTE 193 eham Limited retail provision1018 in the RYTON Central Station surroundingarrow towns and villages,

Crawcrook 6317 RIVER TYNE particularly to the west and184 south 695 of the subject property. Mickley Prudhoe laydon Metrocentre 184 reenside 184 Whickham TESE

19 igh Mickley 694 Immobile, convenience focused 1 catchment population with the igh Spen 692 number194M of pensioners exceeding the Rowlands ill UK average and vehicle ownership

Consett below1231 the national average. SUNERN

1M Washington urnopfield urham Teesside South 690 Population Weekly Retail Spend Weekly Convenience Spend South 15,392 £1,048,888 £670,109 within a 5 minute drive time. spend within a 5 minute drive time. spend within a 5 minute drive time. 49,564 £3,198,174 £2,114,649 within a 10 minute drive time. spend within a 10 minute drive time. spend within a 10 minute drive time. 147,784 £9,041,721 £6,156,650 within a 15 minute drive time. spend within a 15 minute drive time. spend within a 15 minute drive time. ACCOMMODATION

Ground Floor First Floor Total Retail Warehouse ancillary 2,162.12 sq m 1,893.56 sq m 322.56 sq m 23,273 sq ft 19,801 sq ft 3,472 sq ft

Parking provision:

Car parking Ratio spaces 1:253 sq ft 92 RYTON TENANCY

The property is let in its entirety to Co-operative Foodstores Limited t/a The Co-operative Food with surety provided The passing rent reflects by Co-operative Group Limited. The lease is held on a Full Repairing and Insuring basis for a term of 35 years from 29 September 1984 without a break and is subject to five yearly open market rent reviews. The passing rent is £270,000 a modest £11.60 psf per annum exclusive as set at the 2015 rent review. on an overall basis

TENURE Freehold. B6317 Main Road VAT An option to tax has been made on the property and VAT will therefore be payable on the purchase price. It is anticipated that the sale will be treated as a transfer of going concern (TOGC).

EPC The buildings has been assessed and has an The Co-operative Food Ryton EPC rating of D (83). Social Club A copy of the Energy Performance Certificate is available upon request.

Indicative Site Boundary Excluded from title but right to park and access Excluded from the ownership COVENANT

Co-operative Foodstores Limited (Tenant) CRN: 32443R Co-operative Foodstores Limited is the UK’s fifth largest food retailer with over 2,500 convenience stores. Further information is available at www.co-operativefood.co.uk. The most recent accounts, for the year ending January 2016, show a Revenue of £284.4m, Pre-tax profit of £12.3m and Net Assets of £403.7m.

Co-operative Group Limited (Surety) CRN: 525R The Co-operative Group, established in 1844, is the largest co-operative in the UK with 4.3 million members and provides a variety of retail businesses including foods stores, insurance services, legal services and funeral care. Further information is available at www.coop.co.uk. The most recent accounts, for the year ending January 2016, show a Revenue of £10.097bn, Pre-tax profit of £81m and Net Assets of £2.954bn. PROPOSAL

We are instructed to seek offers in excess of £3,498,000 (Three Million, Four Hundred and Ninety Eight Thousand pounds) which reflect a Net Initial Yield of7.25% after standard purchaser’s costs of 6.50%. OUR TEAM

Peter Atkinson Katy Paxton Gagan Jagpal Richard Turner Tel: 0191 223 5715 Tel: 0191 223 5752 Tel: 0191 223 5709 Tel: 0191 223 5720 Email: [email protected] Email: [email protected] Email: [email protected] Email: [email protected]

DTZ Debenham Tie Leung Limited (the “Agents”) 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 only and do not constitute any part of an offer or contract. (2) Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. (3) The photographs appearing in these particulars show only certain parts and aspects 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. Any areas, measurements or distances referred to herein are approximate only. (4) Where there is reference in these 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 any intending purchaser. (5) No person in the employment of the Agents has any authority to make or give any representation or warranty whatsoever in relation to this property. (6) This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. (7) Unless otherwise stated, no investigations have been made by or on behalf of the Agents regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. March 2017

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