Victoria Road Retail Park Enter Victoria Road, South Ruislip, Ha9 0Aj

VICTORIA ROAD RETAIL PARK ENTER VICTORIA ROAD, SOUTH RUISLIP, HA9 0AJ

PRIME FOODSTORE AND RETAIL WAREHOUSE INVESTMENT Executive Location & Situation Aerial Description Accommodation Tenants’ Tenancies Management, Proposal, VAT & Summary Demographics & Planning Financial Tenure & Rental Contact Details Victoria Road Retail Park Information Commentary VICTORIA ROAD, SOUTH RUISLIP HA9 0AJ

THE OLD DAIRY DEVELOPMENT

Executive Summary

The subject property is prominently located on Within close proximity to an established retail Let at relatively low passing rents of between £18.00 Victoria Road in South Ruislip, within the affluent warehouse location with in excess of 300,000 sq ft of and £22.22 per sq ft. London Borough of Hillingdon in West London. accommodation. Approximately 13 miles west of Central London. The Aldi lease benefits from 5 yearly RPI index linked Comprises a recently refurbished retail warehouse rent reviews with collar and caps at 1.0% and 3.0% Extensive and affluent catchment with 226,000 development providing 2 units extending to a total per annum. people living within 10 minutes of the scheme. of approximately 40,525 sq ft GIA. Freehold. Situated immediately adjacent to “The Old Diary” Wide A1 planning consent (including part food). development, comprising a new Asda foodstore, We are instructed to seek offers in excess of a multiplex Cineworld Cinema and 5 restaurants Let to Aldi Stores Ltd and B&M Retail Ltd – ‘5A1’ £14,850,000, subject to contract and exclusive of (Frankie & Benny’s, Chiquito, Nando’s, Bella Italia and covenants - on 15 year leases with no break options. VAT. This reflects an attractive net initial yield of Mimosa) due to open in early 2017. The development 5.25% (assuming purchasers costs at 6.73%). also includes 132 new residential units.

A41 M25

Chorleywood Watford Borehamwood Barnet M1 A1 Demographics A10 Rickmansworth The subject property benefits from an extensive catchment population with circa

A41 226,000 people living within a 10 minute drive-time, increasing to in excess of 500,000 Stanmore Edgware people within a 15 minute drive-time. Northwood M25 A406 Hareﬁeld A10 A406 Pinner • The population within the 10 minute drive-time catchment is forecast to increase by 6.2% by 2020 and by 11.4% by 2025. Harrow Ruislip M40 A1 • 71.5% of 16-74 year olds are in full time employment, above the average of 69.6%, SOUTH RUISLIP with many based in Central London. A12 A40 A41 Wembley Brent Park • There is a high proportion of younger working age adults with 30.3% between 25 Uxbridge A10 A406 and 44, 11% above average. Conversely, just 17.3% of catchment is aged 60 or above, A40 Greenford A501 23.8% below the average.

Hayes A40 • The mean annual income in the 10 minute drive-time catchment is £41,615, which is LONDON A13 Slough West Drayton A312 A406 14.2% above the CACI base average. M4 M4

A2 A4

Heathrow Airport £40k to £60k £60k to £80k £80k to £100k £100k+ A205 M25 Hounslow Richmond 10 min drive time 20% above average 29% above average 33% above average 30% above average Catchment = 21.0% Catchment = 10.6% Catchment = 5.6% Catchment = 5.2% A30 Twickenham 15 min drive time A316 A214 A205 Average = 17.5% Average = 8.2% Average = 4.2% Average = 4.0% A3 20 minA205 drive time

% versus CACI Location Acorn Group Category No of people % of Catchment base average South Ruislip is a densely populated residential suburb situated in Affluent Achievers Executive Wealth 30,094 13.3 +8 the London Borough of Hillingdon, approximately 13 miles west of Central London. Rising Prosperity Career Climbers 19,485 8.6 +41 Successful 45,522 20.1 +228 The general area benefits from excellent communications, with the Comfortable Suburbs A40 (Western Avenue) being situated less than a mile to the south, Communities Steady 44,203 19.6 +137 providing direct access between Central London and the M25/M40 Neighbourhoods (Junction 1A), being approximately 7 miles directly to the west. Financially Modest Means 6,884 3.0 -59 The area benefits from excellent public transport links, with South Stretched Striving Families 5,005 2.2 -72 Ruislip railway and underground station being situated to the south Young Hardship 5,040 2.2 -57 of the subject property. This provides access into Marylebone railway Urban Difficult station in Central London and to the Central Line of the London Adversity 7,744 3.4 -28 Circumstances Underground leading into both the West End of London and the City.

PRIME FOODSTORE AND RETAIL WAREHOUSE INVESTMENT Investment Location & Situation Aerial Description Accommodation Tenants’ Tenancies Management, Proposal, VAT & Summary Demographics & Planning Financial Tenure & Rental Contact Details Victoria Road Retail Park Information Commentary VICTORIA ROAD, SOUTH RUISLIP HA9 0AJ

Y Situation A F W IE IR L A D The subject property is situated to the south of F E E E Q IV N Victoria Road and to the west of a significant H R T U D D SUBJECT E G R concentration of out-of-town retail, fronting E N N O O the same thoroughfare. Retailers include Argos, PROPERT S L A D W Homebase, Pets at Home, Oak Furniture Land, A L DFS, Currys/PC World, Bensons For Beds, Wickes, K

TK Maxx, Halfords, Furniture Village, Carpetright, Y a Sainsbury’s foodstore (60,000 sq ft) and petrol A

W filling station. This is generally acknowledged as one R I of the strongest out-of-town retail destinations in A Q F E IV U Greater London. E DR E V H G E IC T N N T LO S The immediate vicinity of the subject property O W R is largely residential accommodation. Adjacent IA A L AD R K O F to the scheme and sharing the same access road O R I A IA E D R L off Victoria Road is “The Old Dairy” development CTO D VI being undertaken by Citygrove Leisure, which has E N

D been funded by Standard Life. The development R

D R is to comprise an Asda foodstore (80,000 sq ft), G O N A a new 11-screen multiplex Cineworld cinema and LO V IC D 5 restaurants, which are let to Frankie & Benny’s, South Ruislip TO R IA Chiquito, Nando’s, Bella Italia and Mimosa. The ROAD development also includes 132 new residential units.

Construction is well advanced and the scheme is due CH to open in early 2017. OA PR AP N Clearly, the completion of this development will IO AT substantially enhance the immediate location to the ST benefit of the subject property.

Key 1 Subject Property

2 The Old Dairy Development Asda, Cineworld, Nando’s, 10 9 8 7 6 Frankie & Bennys, Mimosa, Bella Italia, Chiquito 5

3 Sainsburys

4 South Ruislip Station

5 Brook Retail Park Pets at Home Oak Furnitureland

6 Victoria Retail Park Homebase, Argos 1 2 Brantano

7 Currys PC World, DFS

8 Bensons for Beds

9 Wickes

10 Ruislip Retail Park 3 4 Carpetright, Halfords, TK Maxx, Furniture Village

Description The subject property was formerly a DIY store and additional The refurbishment works undertaken included the front Service vehicles also use this access road, which then leads to unit, however, in 2015, it was subject to a major refurbishment elevations being substantially improved, with the provision of the rear of the property into a dedicated service yard located to provide the current configuration. This now provides an significant glazing and new signage features. In addition, the to the rear of the units. attractive and modern development occupied by Aldi and original garden centre was removed and the car park re-laid. B&M and provides a total ground floor GIA of approximately In summary, the subject property provides a highly attractive 40,525 sq ft. Upon completion of the adjacent development, the subject retail development built in accordance with both modern property will benefit from pedestrian access directly from retailer and investor requirements. To the front of the scheme is a tarmacadamed customer car Victoria Road, with vehicular access is provided via a park providing approximately 196 spaces, equating to an roundabout off Victoria Road. This junction will also be used overall ratio of 1:207 sq ft. to access “The Old Dairy” development.

Accommodation The property provides the following approximate accommodation:

Unit Tenant GIA (sq ft) GIA (sq m) A Aldi 16,225 1,507 B B&M 24,300 2,258 Total 40,525 3,765

196 customer car parking spaces, creating a ratio of 1:207 sq ft (1:19.2 sq m).

Planning The property is subject to planning consents which allow the sale of the following goods:

Unit A Food and other convenience goods or a wide range of specific “bulky” goods, together with sports goods and children’s clothing and footwear. There is a restriction that the net sales area shall not exceed 1,075 sq m.

Unit B A wide range of specific “bulky” goods, together with sports goods and children’s clothing and footwear. In addition, ancillary sales of food and drink from no more than 10% of the floor area, toiletries from no more than 5% of the floor and pet products, including food for non-human consumption, from no more than 5% of the floor area, unless prior written consent is obtained from the Local Planning Authority.

Tenants’ Financial Information

Aldi Stores Limited B&M Retail Limited

Aldi are a leading global supermarket chain, with B&M was founded in 1978 and bought by the Arora brothers approximately 10,000 stores spread across 18 countries. in December 2004. Since then, they have grown from a company of 21 stores, and successfully listed on the London Since their entry into the UK market in 1990, they have Stock Exchange in 2014 and has continued to expand. They rapidly expanded, and currently have 652 stores, and they have become one of the UK’s leading “variety” retailers plan to open a further 70 this year. Their stated goal is to operating from in excess of 500 stores throughout the UK have 1,000 stores in the UK by 2022. and employing over 22,000 staff. The business also operates with different brand names in Germany. The company has a Aldi have benefited significantly from the changing current market capitalisation of approximately £2.6 billion. patterns of consumer behaviour in the food sector and their disruptive and highly efficient business model has seen B&M Retail Limited have a Dun & Bradstreet rating of ‘5A1’. them grow their market share significantly at the expense Their most recent accounts are summarised below: of the major food retailers, resulting in substantial growth in sales and profits. Year to 29/03/14 Year to 28/03/15 (000’s) (000’s) Aldi Stores Limited have a Dun & Bradstreet rating of ‘5A1’. Their most recent accounts are summarised below: Turnover £1,509,132 £1,526,181 Profit/loss £123,398 £116,800 Year to 31/12/13 Year to 31/12/14 Net worth £281,228 £333,599 (000’s) (000’s) Turnover £5,271,853 £6,893,257 Profit/loss £260,894 £250,584 Net worth £1,817,950 £1,948,445

Tenancies The property is let in accordance with the following:

Unit Tenant Trading as GIA (sq ft) Lease Start Expiry Date Next Rent Current Rent Rent Comment Review (Per Annum) (per sq ft)

Unit 1 Aldi Stores Ltd Aldi 16,225 25/01/2016 24/01/2031 25/01/2021 £292,050 £18.00 10 month rent free period. RR to RPI between 1% and 3% pa.

Unit 2 B&M Retail Ltd B&M 24,300 08/02/2016 07/02/2031 08/02/2021 £540,000 £22.22 15 month rent free period. RR capped at 112%. SC cap of £22,080 pa (increased by RPI).

TOTAL 40,525 £832,050 £20.53

Management Rental Commentary The lease to B&M Retail Ltd includes a “cap” on the amount of Whilst the leases commenced in the earlier part of 2016, both lettings were negotiated in 2014. Since this time, service charge payable by the tenant, being set at £22,080 per we believe the market for both food and non-food retail units in good locations in the Greater London area have annum, subject to annual increases in line with RPI. increased due to an imbalance between tenant demand and supply of suitable accommodation.

The service change budget is currently being reviewed and it is Prime rents on the retail warehousing on Victoria Road to the south west of the subject property have historically envisaged that the cap will lead to a shortfall. Further details been significantly higher than those achieved on the lettings to B&M and Aldi, peaking at between £30.00-£35.00 per are available. sq ft. Whilst this general location may have been considered as stronger than the subject property, we would suggest that this will no longer be the case following the opening of “The Dairy” leisure and retail development. The Secretary of State for Transport has been negotiating rights to potentially divert services and gain access over the service The shortage of good quality units in the Greater London area has, we believe, led to a general increase in rents, and road and yard to assist in building the HS2 rail link. A draft we would highlight the following transactions which illustrate this: Settlement Deed is currently being negotiated. Further details to be provided on request. 1. Asda – Mile End Road Retail Park In September 2015, Asda took a lease on a unit of circa 15,000 sq ft at a headline rent of £31.55 per sq ft.

2. Lidl – Plough Lane Retail Park Tenure We understand that Lidl has signed a lease to take a circa 15,000 sq ft unit at a headline rent in excess of £20.00 per sq ft. The site delineated in red below is held freehold. This is 3. Dunelm – Friern Bridge Retail Park provided for indicative purposes only. We understand that Dunelm recently agreed to take a circa 20,000 sq ft unit at a headline rent equating to £23.27 per sq ft.

We therefore feel that if the units were marketed today, it is likely that rents in excess of those which are currently

V being paid would be achieved. R

VAT Further Information The property has been elected for VAT. It is anticipated Please contact: the transaction will be treated as a Transfer of a Going Concern (TOGC). Wilkinson Williams LLP Heathcoat House 20 Savile Row London W1S 3PR

Proposal Miles Marten Tel: 020 7317 3777 Our clients are seeking a price in excess of £14,850,000 Mobile: 07770 748 290 (Fourteen Million, Eight Hundred and Fifty Thousand Email: [email protected] pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.25% (assuming Jack Lloyd purchaser’s costs of 6.73%). Tel: 020 7317 3796 Mobile: 07747 883 231 Email: [email protected]

www.wilkinsonwilliams.co.uk

MISREPRESENTATION NOTICE. Wilkinson Williams LLP 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 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 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 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. 5. Any areas, 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 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 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, their accuracy is not guaranteed and they do not form part of any contract. September 2016. Wilkinson Williams LLP give notice that some of the partnership members have a financial interest in this property. Designed and produced by Creativeworld Tel: 01282 858200.

PRIME FOODSTORE AND RETAIL WAREHOUSE INVESTMENT