PHASE 4 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF CORTONWOOD RETAIL PARK BARNSLEY, SOUTH YORKSHIRE, S73 0UF WELL LET RETAIL PARK INVESTMENT OPPORTUNITY 1 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF INVESTMENT SUMMARY Cortonwood is a very well located out of town retail destination totalling 454,000 sq ft. The subject property is situated opposite Cortonwood Shopping Park, which opened in 2017. Phase 4 is an attractive retail park of 32,519 sq ft, which was developed in 2011. Open A1 (non-food) planning permission. Let to Smyths Toys, TK Maxx and Pets at Home. WAULT of 7 years. Dun & Bradstreet rate all of the tenants as having a ‘Minimum Risk of Business Failure’. Our client is seeking offers in excess of £11.644 million, subject to contract and exclusive of VAT. A purchase at this level would show a net initial yield of 6.00%, after allowing for purchaser’s costs of 6.8%. This will rise to 6.40% following the fixed uplift in the Smyths Toys lease on 24th November 2021. 2 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF Dearne Valley Parkway Dearne Valley Parkway 3 M1 39 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF M1 y M18 LOCATION w k 39 P 38 A633 y e l l Mitche a V Cortonwood Retail Park is very well located on the A6195 dual carriageway in the Dearne e M1 n lls r Valley, some 4 miles south east of Barnsley. The A6195 Dearne Valley Parkway is an important W a a e DONCASTER arterial route connecting the M1 in the west to the A633, the A635 and the A1(M) in the east. ys D BARNSLEY 37 M A6195 37 1 A635 A638 y There are some 57,000 people living within a 10 minute drive time of the property, with 145,000 M18 A61 A633 w k P 38 living within 15 minutes. A1(M) A633 y M1 e l l alley Pkw Mitche a A61 e V y V rn ea A633 A6195 e M1 S D A6195 h A6195 l n ls r e 36 a y 36 W f w e f DONCASTER i k 4 a e P D y l y A6023 s d lle BARNSLEY a R V 3 o ne 37 a r A61 35 M a A6195 d e 37 D 35a 1 A635 A638 2 A61 Cortonwood A633 Retail Park ROTHERHAM A1(M) 35 A630 M1 J36 M18 alley Pk A61 e V wy rn A1(M) ea A633 A6195 A61 M1 S D A6195 h A6195 A6135 e y 36 36 f f w S i k 4 1 e P h 34 l y A6023 e d le f l f a i R V 3 e 34 o ne ld a r a A61 35 R d o SHEFFIELD e M D 35a a d 33 2 1 Cortonwood 32 Retail Park ROTHERHAM A630 35 A630 M1 J36 M18 A1(M) A61 M1 A6135 S 1 h 34 e f f i SITUATION e 34 ld R o SHEFFIELD M a d 1 33 The subject property benefits from its situation within a 454,000 sq ft cluster of out of town A630 32 retail. Directly opposite the subject property is Cortonwood Shopping Park, a 79,750 sq ft new development that is let to Outfit, New Look, H&M, River Island, Poundland, JD Sports, M1 M&S Simply Food, Clarks, Mountain Warehouse and Wilko. To the south of the subject property and adjoining Cortonwood Shopping Park is a further development of 226,194 sq ft that is let to B&Q Warehouse, Sports Direct, Boots, Next, Argos and Matalan. The location also benefits from a Morrisons foodstore of 82,000 sq ft, with a 24 hour petrol filling station. All of the above retail parks and the Morrisons foodstore share a single access point with the subject property from the roundabout junction on the A6195 Dearne Valley Parkway. 4 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF 5 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF DESCRIPTION EPC The subject property comprises an attractive retail park of three units totalling 32,519 sq ft that Copies of the Energy Performance Certificates (EPC’s) are available upon request. was built in 2011. As may be noted from the accompanying photographs, the units have been constructed to a high TENURE specification with large glazed entrances and feature signage panels above. The property is held on a 125 year lease from 5th April 2011 at a peppercorn rent (expiring on 4th The building is of steel portal frame construction with an internal height of 23 ft (7 m). The April 2136). There is an option to purchase the freehold for £1 from the 20th year (5th April 2031). elevations are clad with profile steel cladding, with an inner leaf blockwork wall. The roofs are pitched and clad with Plastisol coated profile steel sheets. PLANNING Unit 2 (TK Maxx) has a full cover sales mezzanine floor and Unit 1 (Smyths Toys) has a storage mezzanine. The subject property was originally granted planning permission on 18th March 2010 for the The property provides 153 customer car parking spaces to the front of the building, giving an erection of five non-food retail units. This permission was subsequently varied on 23rd March excellent car parking ratio of 1:213 sq ft. 2011 to allow for the current configuration of three units. The property has Open A1 (non-food) planning permission, with no restriction upon the range of THE SITE goods that may be sold from the units. The site is level and extends to some 2.56 acres (1.035 ha). 6 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF Cortonwood Retail Park Cortonwood Shopping Park 7 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF TENANCIES The property is let to Smyths Toys, TK Maxx and Pets at Home in accordance with the following tenancy schedule, producing a total income of £746,150 pa. LEASE EXPIRY UNIT TENANT AREA (SQ FT) RENT (PSF) RENT (PA) COMMENTS (BREAK OPTION) 1 Smyths Toys 15,098 £24.91 £376,150 23/11/2026 Fixed uplift to £425,576 pa on 24/11/2021. Storage mezzanine. 06/07/2029 Tenant’s break at Year 10. Full cover sales mezzanine. Rent review dated 2 TK Maxx 9,921 £20.16 £200,000 (06/07/2024) 07/07/2019 to OMRV, capped at 115%. 09/06/2028 3 Pets at Home 7,500 £22.67 £170,000 Tenant’s break at Year 10. Rent review dated 10/06/2023 to OMRV. (09/06/2023) TOTAL 32,519 £22.58 £746,150 The property has a weighted average unexpired lease term (WAULT) of 7 years. RETAIL WAREHOUSING AT CORTONWOOD There is a total of 454,000 sq ft of out of town retail at Cortonwood. Brief details of the various developments are as follows:- Cortonwood Shopping Park Phase 3 Cortonwood Retail Park Cortonwood Shopping Park was developed by Helical Retail in 2017 and totals 79,750 sq ft. It Phase 3 of Cortonwood Retail Park opened in 2005 anad directly adjoins the shopping park. It totals comprises 11 units let to M&S Simply Food, Outfit, New Look, H&M, River Island, Clarks, JD Sports, 33,619 sq ft and is let to Asda Living, Halfords and ScS. Poundland, Mountain Warehouse, Wilko and Frankie & Benny’s. Rents of up to £30 psf have been achieved upon the retail units on the park, which was funded by Aberdeen Standard. Morrisons Foodstore Cortonwood Retail Park The Morrisons foodstore totals some 82,000 sq ft and opened in 1998. The site includes a 24 hr petrol filling station. Cortonwood Retail Park was developed in 2001 and comprises 226,194 sq ft let to B&Q Warehouse, Boots, Argos, Next, Matalan, Sports Direct, McDonald’s and Pizza Hut. Rents of up to £29.50 psf have been achieved upon the park. 8 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF Not to scale. For indicative purposes only. 2. 1. RETAIL WAREHOUSING AT CORTONWOOD 4. 3. 5. There is a total of 454,000 sq ft of out of town retail at Cortonwood. Brief details of the various developments are as follows:- 1. Phase 4 2. Morrisons Foodstore 3. Cortonwood Retail Park 4. Phase 3 5. Cortonwood Shopping Park 9 PHASE 4, CORTONWOOD RETAIL PARK, BARNSLEY, SOUTH YORKSHIRE, S73 0UF INCOME SECURITY All of the tenants at Phase 4 Cortonwood Retail Park are national multiple retailers who are household names. The income from the existing lettings has a weighted average unexpired lease term (WAULT) of 7 years to the earlier of lease expiry/break. A summary of the most recent financial information upon the tenants is set out in the table below:- PRE TAX D&B RISK OF BUSINESS TURNOVER NET WORTH TENANT YEAR ENDING PROFIT RATING FAILURE (£'000S) (£'000S) (£'000S) 30-Dec-16 396,490 10,100 23,390 Smyths Toys UK 4A1 Minimum 30-Dec-15 334,381 5,963 14,540 Limited 31-Dec-14 256,050 3,841 11,394 28-Jan-17 2,684,000 111,400 640,500 TJX UK 5A1 Minimum 30-Jan-16 2,434,000 142,300 599,400 31-Jan-15 2,195,400 134,300 583,400 30-Mar-17 752,374 67,557 650,186 Pets at Home Limited 5A1 Minimum 31-Mar-16 739,726 81,843 598,310 26-Mar-15 689,697 79,920 517,138 As may be noted from the above, all of the tenants are rated by Dun & Bradstreet as having a ‘Minimum Risk of Business Failure’.