Chesterfield Portfolio Retail Warehouse Investment Opportunity Chesterfield Portfolio

chesterfield portfolio retail warehouse investment opportunity chesterfield portfolio

The Chesterfield Portfolio offers the opportunity to acquire 3 Retail Warehouse units let to DFS Trading Ltd (a 5A1 covenant) for 15.9 years. chesterfield portfolio

DUNDEE ■ PERTH ■

EDINBURGH ■ ■ GLASGOW

NEWCASTLE UPON TYNE ■

■ CARLISLE

HARTLEPOOL ■ MIDDLESBROUGH ■ WHITBY ■

SCARBOROUGH Portfolio Highlights ■

LANCASTER ■ HARROGATE YORK 2 Freeholds and 1 Leasehold Interest ■ ■

HULL ■ ■ 3 Retail Warehouse Units in established locations HALIFAX SCUNTHORPE BOLTON ■ ■ BARNSLEY ■ DONCASTER ■ ■ GRIMSBY All of the properties are let to DFS Trading Ltd for a term 25 years LIVERPOOL ■ ■ from 24 March 2005 MANCHESTER SHEFFIELD ■ BUXTON LINCOLN Let for a further 15.9 years without break ■

NEWCASTLE-UNDER-LYME ■ BOSTON NOTTINGHAM ■ STOKE-ON-TRENT ■ DFS Trading Ltd has a D&B rating of 5A1 ■ DERBY ■ BURTON UPON TRENT DFS Trading Ltd reported in July 2012 Pre-Tax Profits of £70.2m ■ ■ ■ LEICESTER NORWICH WOLVERHAMPTONMEASHAM PETERBOROUGH and a Net Worth of £63.3m ■ ■

BIRMINGHAM ■ ■ Total Net Passing Rent £1,416,013 pa COVENTRY BURY ST EDMUNDS NORTHAMPTON ■ CAMBRIDGE Offers in excess of £16,730,000 DROITWICH ■ IPSWICH ■ ■ (Sixteen Million Seven Hundred and Thirty Thousand Pounds) MILTON KEYNES

Net Initial Yield 8.0% OXFORD ■

■ SWANSEA SWINDON ■ READING LONDON ■ ■ CARDIFF ■ BRISTOL ■ BATH

■ SOUTHAMPTON ■ PORTSMOUTH

■ PLYMOUTH DFS are the leading retailer of upholstered furniture in the United Kingdom currently operating out of 97 stores totalling 1.4 million sq ft. DFS (formerly Direct Furnishing Supplies) was established in 1969.

The company is a clear UK market leader with a 28% share of the estimated £2.77 billion upholstered furniture market in 2012, which was approximately four times that of any other upholstered furniture specialist.

All of the products DFS sell are made to order and, as a result, there is minimal exposure to inventory risk. They have three upholstered furniture manufacturing facilities, all of which are located in the United Kingdom. Sales densities are significantly higher than their rivals in the furniture sector:

Retailer Sales per sq ft (£) Operating profit margin (%)

DFS £410 7.6%

Ikea £260 3.0%

Oak Furniture Land £240 11%

Dunelm £195 15.8%

SCS £158 0.3%

Bensons/Harveys Homestyle £135 3.6%

Carpetright £87 3.5% chesterfield portfolio

DFS Trading Limited Lease length

The DFS group is wholly owned by Advent DFS Furniture Holdings plc published half All leases are for a term of 25 years from 24 March 2005, International, a private equity firm, who yearly results on the 25th January 2014 therefore having an unexpired term of 15 years and 11 months. purchased DFS in 2010 for circa £500 million. and reported the following financial and This is double the IPD retail warehousing average lease length. For the 52 weeks ended 27 October 2012 operational highlights: the group generated turnover of £640.5 Average lease length 2000-2012 million and Adjusted EBITDA of £83.5 million Financial Highlights: with an Adjusted EBITDA margin of 13.0%. • Sales £315.3 million (2013: £319.4 million) reflecting weakness in demand The occupational tenant under all the occupational leases within the Portfolio is • EBITDA £23.8 million (2013: £31.1 million) DFS Trading Limited (Company Number: • Strong cash generation continues: cash All RW All Property Chesterfield Portfolio unexpired term ) s

01735950). This company is a wholly owned balances £33.9 million (2013: £22.0 million) r a subsidiary of DFS Furniture Company Ltd after payment of £20.0 million dividend e y ( which itself is a wholly owned subsidiary of h DFS Furniture Holdings plc. Operational Highlights: t • New website delivering good results len g len g

DFS Trading Limited is the primary trading e

• 100th DFS Store in UK and Ireland opened s company within the DFS group and includes

in Torquay le a both the manufacturing and retail operations • New brand partnership with Dwell to

of the business. Based on information from ag e r

Dun & Bradstreet, DFS Trading Ltd is rated further increase appeal to aspirational e v as 5A1. consumers A • Local distribution centre trial creating For the year ending 28th July 2012, efficiencies and additional trading space DFS Trading Ltd reported a turnover of £624,000,000 a pre-tax profit of £70,200,000 Full report available upon request. and a net worth of £63,300,000.

chesterfield portfolio

Measham bury St Edmunds DROITWICH

Gross Rent No. Address Town Postcode Tenure Site Area Accommodation Sq m Sq ft Rent psf Net Rent pa

1 DFS, Tamworth Road Measham DE12 7GG Freehold 0.77 acres Retail Warehouse 1,865.4 20,079 £365,336 £18.19 £365,336

DFS, Roman Way Retail Park, 2 Droitwich WR9 9AY Freehold 1.7 acres Retail Warehouse 1,858.0 19,998 £528,767 £26.44 £528,767 Kidderminster Road

Leasehold - 69 years 3 DFS, Easlea Road Bury St Edmunds IP32 7BY 1.97 acres Retail Warehouse 1,860.7* 20,029* £521,910 £26.06 £521,910 unexpired at £37,500 p.a.†

TOTAL 5,584.1 60,106 £1,416,013 £1,416,013

*Excluding Mezzanine. †NB: There is an option to renew the lease for a further 26 years from the expiry date and this option may be exercised at anytime during the term other than the final 6 months before expiry. The headlease pay away passes straight through to the tenant. Measham DFS, Tamworth Road, chesterfield portfolio Measham, DE12 7GG

d R N y ■ ew b St h M ree s ea t A NOTTINGHAM sha A51 A50 DERBY m ■ Ro ad ■ t L e eice Long Eaton e ster Road B tr

ur S H t A518 A50 2 on h 4 u Ro ig A n H B

t ad i o

n s w BURTON g o Nottingham d rt A o h East Midlands n R UPON TRENT 4 W o ■ Airport 4 a ad Stafford A6 4 y

■

A ve

c ri

A515 D r

A518 A42 Loughborough e n eo ■ s ig

f W

M6 A444 o

r A46 d t

e A38 M1 R r

o t A480 A51 o a e MEASHAM THE PROPERTY n d A511 e an Cannock d L a R o s ■ h R o t a w Lichfield r d wo o l A5 ■ am l T a

M42 6 1 M54 Tamworth LEICESTER 1 ■ 4 A34 ■ B 1 A452 M6 Toll 1 J A453 Leicester WOLVERHAMPTON Sutton Airport ■ ■ A5 A6 A444 Walsall Coldfield A454 ■

B A38 4 1 Nuneaton M69 1 M6 6 2 Dudley ■ A 4 ■ 4 M 4 M DFS, TAMWORTH ROAD, MEASHAM e 4 a

M1 s 1 A LEICESTERSHIRE, DE12 7DU h 1 BIRMINGHAM t a ■ h J m 9 e Birmingham M6 A5 9 r R 4 s

M5 5 t Airport o B o a

n d

M42 e

Solihull o

■ COVENTRY a

■ d

Location Description Catchment and Demographics 18 Measham is located approximately 3.3 miles south west of The property comprises of a first generation detached retail The total population of Measham is circa 4,850 according to the 16 Ashby-de-la-Zouch, approximately 11 miles south east of Burton warehouse. The building is of steel portal frame construction, clad 2011 Census. on Trent and approximately 24 miles north east of Birmingham. externally in a combination of cavity facing brickwork and profiled Measham is included within the retail catchment area of Burton The M1 (J25) is approximately 14 miles to the north east and metal cladding with aluminium framed shop front glazing and on Trent, which has a primary catchment of 238,000 and an the M6 and M6 Toll are approximately 16 miles and 13.5 miles public entrance doors. estimated shopping population of 141,000. TCB respectively to the south west. The retail store has three loading bays and includes 37 car The age profile of the Burton on Trent primary catchment Measham is located on the A42 which merges with M42 (J11) parking spaces (including 2 for disabled use), arranged along the population includes a relatively high proportion of older working circa 2.3 miles to the south, and with the M1 (J25), circa 11 miles front and rear elevations of the property. aged adults aged 45-64. to the north east. The measured eaves height for the property is 2.37 metres. The nearest rail station is situated in Tamworth, approximately The property has a site area of approximately 0.77 acres (0.31 hectares). 10 miles south west of Measham providing regular services to Planning London Euston with a fastest journey time of 1 hour 8 minutes. The unit has planning permission for the sale of all goods East Midlands Airport is circa 13.2 miles to the north and is the Accommodation (i.e. Open A1, including food). 12

13th busiest airport in the UK by passenger traffic. The airport is 16 Floor/Unit Sq M Sq Ft 18 a major cargo hub and was the second UK airport for freight Tenure traffic in 2012. Retail Unit 1,865.4 20,079

Freehold. 20

42 Situation Tenancy EPC

44 The property is located on the Westminster Industrial Estate, to The property is entirely let to DFS Trading Ltd for a term of 25 Available upon request. 46 48 50 P E the south of Measham, adjacent to Tamworth Road, which is years from 24th March 2005 to and including 23 March 2030. R EG the town’s main arterial route and joins Junction 11 of the A/M42 The rent is £365,336 per annum, reflecting £18.19 per sq ft. R 72 VAT IN 1.5 miles to the south west. It is accessed via a significant E There are further open market reviews as at 24th March 2020 C 30 L The property is elected for VAT. O frontage along Tamworth Road, which is the main road running and five yearly thereafter. SE

IVE 70 54 past the industrial estate. 82 DR

RAVE EON

The property is situated adjacent to British Car Auctions, Europe’s 114 58 G 116 D WI

Largest Auction Group and benefits from a good level of passing 118 N 120 84 C L traffic, due to its long frontage along Tamworth Road. O SE 1 12 The area is mixed use in character, mainly comprising industrial 0m 10m 20m 30m 60 accommodation to the south and residential accommodation © Crown Copyright, ES 100004106Ordnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 to the north. Droitwich DFS, Roman Way Retail Park, chesterfield portfolio Kidderminster Road, Droitwich, WR9 9AY

A 4 A41 4 2

M6 Toll WOLVERHAMPTON Walsall K A5 i ■ ■ d A442 Sutton A444 d e r A4123 A463 Coldfield M42 m i M6 ■ n d A454 s a t o Impney A41 e r C R

R r e Park u A458 o v a t

A5 c o A449 d d r West h a g

Nuneaton L s M6 Toll o

Bromwich a ■ R m

Dudley ■ n o d r M6 e o B ■ A4123 A41 A38(M) A444 o A 8 w 3 A458 t 3 K 8 A s id Ro e d m BIRMINGHAM er an ■ W m W A491 A456 M69 ins ay M6 ter A45 Rd Stourbridge A458 A442 y a Kid Birmingham der d A456 International A45 W m a i o A449 A444 n n R Airport a s

A38 m t e M5 o e v

r o

R V r

Solihull d R in g a d e s ■ COVENTRY 8 s A441 3 o L m ■ R an o M42 A46 A THE PROPERTY e r KIDDERMINSTER A491 A452 e B A435 A45 p ■ r B a 4090 lw Sa a ne ltwa A456 y S Union La y A45 Wa A448 M42 Coventry ood Airport West w A46 Droitwich B4 A4177 Spa 090 A38 A448 A452 B B d M40 a Redditch r 4 o M5 i a ■ Royal 0 R r r A442 9 Leamington M e A449 A435 0 t B4090 Han i es bu Spa ll c ry Rd S r ■ a o 5 A443 A4133 A429 ltw W A441 ay M

DROITWICH e

y H a o SPA d l W l y a o le o w A46 A429 R A449 DFS , sRo man Way Re tail P ark, Kidd erminster Road , Droitwa ich W R9 9AY r r e y e M40 b t A422 m s WORCESTER O e A44 ■ Stratford-upon-Avon c ■ r o

W Droitwich A38

A4103 M5 0 Lido Park A4440 9 0 A449 A44 4 A46 B

Location Description Tenancy Iss ues Droitwich is located approximately 6 miles north of Worcester and The property comprises a modern retail warehouse, forming the The property is entirely let to DFS Trading Ltd for a term of 25 approximately 22 miles south west of Birmingham. end terrace to the north of three properties. The building is of years from 24th March 2005 to and including 23 March 2030. Droitwich lies 2 miles south west of the M5 (J5) and is accessed steel portal frame construction, clad externally in a combination of The rent on completion will be £528,767 per annum, reflecting 1 via the A38. Its interchange with the M42 is approximately 10 cavity facing brickwork and profiled metal cladding. The property £26.44 per sq ft by virtue of a fixed increase on 24th March 2014. miles to the north. shares a car parking area with the other two retailers on the park There are further open market reviews as at 24th March 2020 and benefits from 216 spaces. and five yearly thereafter. Droitwich Spa railway provides services to London Euston via Birmingham New Street with a fastest journey time of The measured eaves height for the property is 3 metres. Droitwich Spa approximately 2 hours 22 minutes. The station offers regular The property has a site area of approximately 1.76 acres (0.71 Catchment and Demographics services to Birmingham New Street with a fastest journey time of hectares). Homebase Based on the 2011 Census data, the total population within 40 minutes. a 10 minute drive time of Droitwich is 27,205 increasing to Accommodation 149,828 within a 20 minute drive time. Situation 41 Floor/Unit Sq M Sq Ft The property is situated on Kidderminster road and forms part of Planning ALDI 47 5 the Roman Way Retail Park. Occupiers on the retail park include Retail Unit 1,858 19,998 3 The property is subject to a restrictive covenant not to use the Aldi, Homebase, Carpet Right, Horsatack, Bensons for Beds and

property or any part of it as a retail general DIY store or garden 5

DFS 2 2 Sofa Specialist. There are also a number of car showrooms and 0 centre and also not to use the property for the sale of electrical 1 2 trade counter uses on Kidderminster Road. S

9 I appliances including televisions, videos, audio equipment and 1

K IP 1

The property is situated in a mixed residential and commercial cabinets for such items, lighting, electrical accessories, heating H 2

El Sub Sta 1

1 1 G area approximately 500 meters to the north of Droitwich Spa appliances and gas appliances. AR D E Railway Station. 3 N E l S ub 4 S S ta 38 Tenure 3

Freehold. 32 1 2 t

o 8 1 20 26 2 2

Brook 4 2 EPC EY M Court HON

Available upon request.

3 5 5

0m 10m 20m 30m 3

1 VAT 5 Ordnance Survey © Crown Copyright 2013. All rights reserved. The property is elected for VAT. © Crown Copyright, ES 100004106Licence number 100022432. Plotted Scale - 1:1250 Bury St Edmunds DFS, Easlea Road, chesterfield portfolio Bury St Edmunds, IP32 7BY

t Moun oad ee t R tr ■ S te O King’s Lynn a r tg t s t a e E w NORWICH e l Leicester l ■ R ■ Great o a A47 Yarmouth d A1065 NORWICH ■ PETERBOROUGH ■ A134 Bury St Edmunds Abbey

M1 A A10 Lowestoft oad ■ 1 ds R 4 Symon A5 A1(M) Thetford A143 Skyl er Way Kettering ■ in Rugby ■ A141 ■ A11 THE PROPERTY HUNTINGDON ■ M45 A142 A134 S A10 y y m Wa A45 on d A1 A14 BURY ST EDMUNDS d fel s R ing Newmarket A140 oa ed A425 NORTHAMPTON ■ d B ■ A6 A428 CAMBRIDGE A14 ■ CAMBRIDGE ad Ro BEDFORD A11 a M1 ■ sle M11 A14 Ea

A10 Milton S IPSWICH o A134 ■ u Keynes t ■ h g a 4 3 A14 te 1 S Bury St Edmunds A Felixstowe t ■ re A1(M) e RUFC M1 ■ t Stevenage ■ Bishop’s STANSTED Colchester Harwich oad Luton ■ gham R M40 ■ Stortford 134 Rou A14 LUTON ■ A120 A Aylesbury ■ A Clacton-on-Sea 130 Hemel ■ 2 Harlow A130 Cull A Hempstead ■ um 1 OXFORD ■ Ro 3 ■ ■ Chelmsford ad 4 ■ St. Albans S N ic d o k a l o w e High Watford Enfield s R t ■ ■ A12 Wilks o m DFS

Wycombe n e

■ R M25 r e

M1 M25 a R EASLEA ROAD

M40 Basildon d o ■ a Southend-on-Sea d BURY ST EDMUNDS ■ G Maidenhead LONDON R ■ M25 E M4 Y IP32 7BY F R Reading I ■ HEATHROW A M4 R S

R O AD Location Description Catchment and Demographics Bury St Edmunds is a market town in Suffolk in the east of The property forms a detached retail warehouse clad externally The total population within the Bury St Edmunds primary retail England. The town is situated approximately 29 miles east of in insulated Plastisol coated profiled metal sheet cladding with catchment area is 255,000. Cambridge and 27 miles north west of Ipswich. brushed aluminium, single glazed shopfront and entrance doors According to the most recent Promis Report, the estimated 1 11

Bury St Edmunds is located on the A14, a main arterial route to the furniture showroom areas. shopping population of Bury St Edmunds is 131,000. 12 through the county of Suffolk linking Cambridge to the west with The property enjoys large volumes of passing traffic being El Sub Sta Ipswich to the east. The A134 provides access to Thetford to the adjacent to the A14 and also benefits from a customer car Planning north and Sudbury to the south. parking area to the front of the store with 129 car parking spaces. The property can be used for the sale of a limited range of bulky Bury St Edmunds railway station is situated towards the northern The measured eaves height for the property is 8.1 metres. goods only. perimeter of the town close to the A14. The station is managed by Greater Anglia and provides services via Cambridge or Ipswich to London Kings Cross or Liverpool Street Stations respectively, Accommodation Tenure with a fastest journey time of approximately 1 hour 40 minutes. The property is held long leasehold by way of a lease dated 29 Floor/Unit Sq M Sq Ft March 1984 from The Council of the Borough of St. Edmundsbury Retail Unit 1,860.7 20,029 for a term of 99 years thereby having approximately 69 years Situation unexpired. There is an option to renew the lease for a further 26 Mezzanine 322.5 3,471 The property is located towards the eastern fringe of the town years from the expiry date and this option may be exercised at on Easlea Road. Easlea Road is an established trading location Total 2,183.2 23,500 anytime during the term other than the final 6 months before expiry. The vendor is in the process of exercising this option. with direct access to the A14 and A134. St Edmundsbury Retail Park is located to the east beyond Currys and Home Bargains The annual rent is subject to five yearly reviews to 15% of open which are immediately adjacent to the property. Other occupiers Tenancy market value. on the park include Homebase, Dunelm Mill, Carpetright and The property is entirely let to DFS Trading Ltd for a term of 25 The gross rent on completion will be £521,910 per annum. Dreams. The A14 passes immediately south of the southern years from 24th March 2005 to and including 23 March 2030. The current head rent payable (from March 2009) is £37,500 p.a. boundary of the site and can be accessed a short distance to The rent is £ 521,910 per annum, reflecting £26.06 per sq ft. The tenant covenants to pay to the landlord sums equal to all rents the west at Junction 44. There are further open market reviews as at 24th March 2020 and any other monies due under the Superior Lease. The current head rent payable (from March 2009) is £37,500 per annum. The dominant land uses in the area immediately surrounding and five yearly thereafter.

ED & W the subject property are retail warehousing and light industrial. The net rent receivable is £521,910 per annum as per the ard Bdy tenure paragraph. EPC CR Available upon request.

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2013. All rights reserved. VAT © Crown Copyright, ES 100004106Licence number 100022432. Plotted Scale - 1:1250 The property is elected for VAT. This map is for indicative purposes only chesterfield portfolio

Proposal We are instructed to seek offers in excess of £16,730,000 (Sixteen Million Seven Hundred and Thirty Thousand Pounds), reflecting a net initial yield of 8.0%.

For further information please contact:

Jeremy Hodgson Dale Johnstone Lottie Hayward James Gulliford Marcus De Minckwitz 020 7543 6709 020 7543 6796 020 7543 6890 020 7409 9934 020 7409 8755 [email protected] [email protected] [email protected] www.allsop.co.uk [email protected] [email protected] www.savills.com

Misrepresentation Act: 1. Allsop LLP and Savills on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Savills is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or Savills nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the

trading name of Allsop LLP. 05.14 h q .co.uk Design: Command D - www.command