The Leggar Retail Park

BRIDGWATER | TA6 4AB

A Prime Convenience Retail Scheme ENTER with a Rare and Attractive WAULT of 11.7 years Investment Summary • Bridgwater is a large and established town in Somerset, • Current income of £585,468 per annum, averaging 28 miles south west of Bristol. £13.53 per sq ft. Proposal • Over 131,000 people living within 20 minutes’ drive of the • Total contracted rent to lease expiries of circa £6,600,000. We are instructed to seek offers in property. The town is to see significantly above average population growth to 2022. • Rare and attractive WAULT of 11.7 years with no break excess of £7,083,000 (Seven options. • The Leggar Retail Park, along with Bridgwater Retail Park, Million and Eighty Three The Clink Retail Park, Sainsbury’s and , combine • Farmfoods have recently taken the final unit on a 15 year Thousand Pounds), subject to to form the dominant retail destination for the town’s lease, relocating from the neighbouring Bridgwater Retail significant catchment. Park. contract and exclusive of VAT. • A recently constructed convenience led retail scheme • Formerly Open A1 (including food) planning consent. totalling 43,256 sq ft let to , The Food Now Use Class E, under the recent changes to the Use This reflects an attractive Warehouse by and Farmfoods. The 26,867 sq ft Classes Order. net initial yield of 7.75% store is sold off on a long leasehold basis to the retailer. • All four units have an ‘A’ EPC rating. (assuming purchaser’s costs of 6.65%). • Home Bargains and The Food Warehouse have remained open during the COVID-19 pandemic, reporting strong • 5.92 acres, site cover of 27%. trading and have been meeting their rental obligations. Farmfoods are currently on-site fitting out their store. • Freehold.

• All four tenants are classified as ‘Essential Retailers’ and are significant footfall drivers.

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION A4042

A465 A48 A419 Aberdare A449 Cirencester Pontypool Llanelli Neath Swansea Chepstow M5 A419 B M48 O A470 A433 WESTERN W Port Talbot Pontypridd WA Caerphilly Newport Y R W L Swindon N H M49 A429 I M4 TF M4 C I Bridgend H L CARDIFF M5 M32 I L Porthcawl R M5 T Chippenham O T N Clevedon BRISTOL A46 A350 H

T S E Barry A4 R T D IN R A38 O A37 Melksham IT V Weston- Bath A E BRISTOL U super-Mare Devizes W

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The Leggar D A361 R R L A Ilfracombe Burnham-on-Sea Retail Park G O T Minehead Frome Y G S D A I A361 Warminster L R R H W T B A A36 G H B A303 R Bridgwater T E 23 A361 B B Retail Park B A39 P O 3 Bridgwater A338 M A W 3 O R W A37 3

H K R Barnstaple 9 TH CLINK 24 H

W L I N

V A T The Clink T

A303 A350 F M5 A S I Bideford L Retail Park H L Taunton A361 A C A358 A354 R R A303 N L HU A3088 C 8 Yeovil A338 A386 3 A377 A

A303 S Tiverton Town Centre T J M5 OHN M5 ST A30 A31 R BRIGWATR A37 A350 N A354 O Y B BR A A338 M O W A A30 A348 W A AD 3 A31 W O 7 A35 R A35 Bridport Poole A B Exeter Dorchester W E Sidmouth Bournemouth ST A376 ON O YLA A380 N Exmouth D RD Weymouth A37 Dawlish Teignmouth A38

A386 Location Demographics Bridgwater is a large and established town in Somerset PROMIS states that the town has a primary catchment The two highest socio-economic groups within the 20 minute located within the Sedgemoor District. The town is located population of 70,000 people and is due to see significantly catchment are Country Living (13.4%) who are well-off 12 miles north of Taunton, 28 miles south west of Bristol above average growth in population over the next few years to homeowners in rural locations and Aspiring Homemakers and 27 miles north west of Yeovil. The town benefits from 2022. Experian provides that approximately 131,105 people (13.1%) often younger households in full time employment, excellent road communications, with Junctions 23 and 24 of live within 20 minutes’ drive of The Leggar Retail Park. settling down in starter homes. Both of these categories have the M5 Motorway being within 1 mile to the north and south higher than average levels of disposable income. Spending habits of the Primary Retail Market Area, per capita of the town. In addition, the A38 and A39 intersect in the total retail spending levels, are above the PROMIS average town and provide easy access into the wider catchment. (CACI). The level of car ownership is significantly above The town’s main railway station is situated less than half a average at 81% of households, with a particularly high mile to the south east of The Leggar Retail Park and provides proportion of multiple car ownership. Spending habits of the Primary mainline rail services via Taunton to London Paddington, Retail market Area, per capita, are with a journey time of just over 2 hours. above the PROMIS average

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION The Leggar Retail Park, along with Bridgwater and The Clink Retail Parks, Sainsbury’s and Asda, combine to total over 350,000 sq ft and form the dominant retail destination for the town’s extensive catchment area.

THE LEGGAR RETAIL PAR

BRIDGWATER RETAIL PAR

THE CLIN THE CLIN RETAIL PAR THE LEGGAR

TO TOWN CENTRE

This aerial has been subject to CGI.

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION Situation Retail Warehouse Provision The Leggar Retail Park is located in a highly prominent and accessible The Leggar Retail Park, along with Bridgwater and The Clink Retail Parks, Sainsbury’s and Asda, combine to total location just to the west of the roundabout junction of the A38 over 350,000 sq ft and form the dominant retail destination for the town’s extensive catchment area. (Bristol Road) and the A39 (Bath Road). The scheme is accessed via Bridgwater Retail Park has undergone significant improvement works. The former Wickes unit has been a roundabout junction from The Leggar which has recently been extensively refurbished, subdivided and let to M&S Foodhall and Shoezone. The former Lidl unit has recently upgraded and widened as part of the development of the scheme. been redeveloped creating a number of smaller A3 – now Class E – units that further link Bridgwater and The Leggar Retail Parks.

Avison Young are retained letting agents for the scheme and the latest letting information can be provided upon request.

The construction of The Leggar Retail Park, along with the redevelopment of Bridgwater Retail Park and the highway improvement works have created a best in class retail destination.

The only other retail warehouse provision in Bridgwater are solus units or clusters. To the north on Bristol Road, there is a small cluster let to Matalan (25,000 sq ft at £8.10 per sq ft), The Range (42,500 sq ft at £7.80 per sq ft) and Wickes (26,142 sq ft at £10.65 per sq ft). At The Broadway, to the south of the town centre, there is a B&M Homestore (46,500 sq ft at £9.50 per sq ft), which sits adjacent to a foodstore.

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION Description Tenure Service Charge The Leggar Retail Park is a modern, high specification, The site, as delineated in red on the plan, is held freehold. The property has a service charge of £0.90 per sq ft. retail warehouse scheme that opened in late 2018. The site outlined in blue has been sold off on a long leasehold There are service charge caps in all four leases and any Constructed of steel portal frame construction the basis to Lidl. This plan is provided for indicative purposes anticipated shortfalls are detailed in the tenancy schedule. park comprises a terrace of three retail warehouse only. The latest service charge budget and previous service charge units totalling 43,256 sq ft, let to three market accounts are available upon request. leading ‘convenience’ retailers in Farmfoods, The Food Warehouse and Home Bargains, who also have a Planning garden centre. Formerly Open A1 (including food) planning consent. Now Use EPC’s There is also a 26,867 sq ft Lidl foodstore adjacent to Class E, under the recent changes to the Use Classes Order. Unit Rating the main terrace that has been sold off on a 125 year long lease to the retailer. 1 (Lidl) A 23

All four tenants are classified as ‘Essential Retailers’ 2 (Farmfoods) A 20 and are significant footfall drivers. 3 (The Food Warehouse) A 25 Internally, the units are fitted out to the individual tenants’ specification, whilst Farmfoods are currently 4 (Home Bargains) A 17 fitting out their unit.

The car park situated to the front of the Home Bargains, The Food Warehouse and Farmfoods units provides approximately 198 customer car parking spaces. In addition, there are circa 124 customer parking spaces within Lidl’s demise. In total there are approximately 322 spaces serving The Leggar Retail Park, giving a good parking ratio of 1 : 218 sq ft.

There is a dedicated service yard located to the rear of the units, accessed via a separate service road off the roundabout junction.

Improvement works have recently been undertaken to further improve the pedestrian flow between The Leggar and Bridgwater Retail Parks with the newly constructed A3 units on Bridgwater increasing customer dwell time at both parks.

The site totals approximately 5.92 acres (2.4 hectares), giving a site cover of circa 27%. BRIDGWATER RETAIL PARK

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION Tenancy Schedule The scheme is fully let in accordance with the below tenancy schedule and provides a rare and attractive WAULT of 11.7 years.

Area Next Rent Rent Rent Unit Tenant Lease Start Lease Expiry Break Option Comment (sq ft) Review (per annum) (per sq ft) 9 months rent free and 40 months’ half rent. 2 Farmfoods Ltd 10,000 11/09/2020 10/09/2035 - 11/09/2025 £100,000 £10.00 Remaining rent free to be ‘topped up’ by the vendor. Iceland Foods Ltd 12 months’ rent free – now expired. Estimated 3 13,256 14/02/2019 13/02/2029 - 14/02/2024 £205,468 £15.50 t/a The Food Warehouse service charge shortfall of £370.05. T.J. Morris Ltd 6 months’ rent free – now expired. Estimated 4 20,000 15/10/2018 14/10/2033 - 15/10/2023 £280,000 £14.00 t/a Home Bargains service charge shortfall of £558.37. Total 43,256 £585,468 £13.53 Sold off on a 125 long leasehold at a 1 Lidl UK GmbH 26,867 26/01/2018 25/01/2143 - - £0 £0.00 peppercorn rent. Estimated service charge shortfall of £7,482.86. Covenant Strength

Farmfoods Ltd Iceland Foods Ltd T.J. Morris Ltd D&B rating of 5A 2 - “Lower than Average Risk” of business D&B rating of 5A 2 - “Lower than Average Risk” of business D&B rating of 5A 2 - “Lower than Average Risk” of business failure. failure. failure.

Year Ending Sales Turnover Profit Pre Taxes Net Worth Year Ending Sales Turnover Profit Pre Taxes Net Worth Year Ending Sales Turnover Profit Pre Taxes Net Worth

28/12/2019 £661,754,000 £22,148,000 £112,514,000 27/03/2020 £3,191,500,000 £1,400,000 £794,000,000 30/06/2019 £2,470,617,223 £233,306,246 £1,086,192,207

29/12/2018 £660,304,000 £12,101,000 £102,879,000 29/03/2019 £3,022,800,000 £31,200,000 £792,900,000 30/06/2018 £2,143,267,097 £202,700,562 £911,755,756

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION VAT The property has been elected for VAT, however, it is anticipated that the transaction will be treated as a “Transfer of a Going Concern” (TOGC).

Environmental Reports Specialist environmental and flood risk reports have been produced by Clarkebond. Letters of reliance can be obtained.

The majority of the area within which the property sits benefits from existing flood defences, which gives the property a similar probability of flooding to areas in Flood Zone 1.

Proposal We are instructed to seek offers in excess of £7,083,000 (Seven Million and Eighty Three Thousand Pounds), subject to contract and exclusive of VAT.

This reflects an attractive net initial yield of 7.75% (assuming purchaser’s costs of 6.65%).

Further Information

Miles Marten T: 020 7317 3777 MISREPRESENTATION NOTICE. Avison Young give notice to anyone who may read these particulars as follows: M: 07770 748 290 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied E: [email protected] AVISON YOUNG upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when 22 Ganton Street Jack Lloyd 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 London displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, T: 020 7317 3796 measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that W1F 7FD 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 M: 07747 883 231 obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, E: [email protected] www.avisonyoungretail.co.uk their accuracy is not guaranteed and they do not form part of any contract. October 2020. Designed and produced by Creativeworld Tel: 01282 858200.

INVESTMENT LOCATION / AERIAL RETAIL WAREHOUSE DESCRIPTION / TENANCY / PROPOSAL / SUMMARY DEMOGRAPHICS PROVISION TENURE / COVENANT STRENGTH FURTHER PLANNING INFORMATION