TOWN CENTRE RETAIL WAREHOUSE SCHEME LET TO STRONG COVENANTS VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM, DH8 5JU INVESTMENT SUMMARY • Town centre multi-let retail warehouse scheme • Generous car parking provides 95 spaces • Total rental income of £267,080 per annum let to strong covenants (1:375 sq ft) (£7.50 psf) • Consett is a busy town on the edge of the • Modern, well-constructed buildings with low • AWULT of 6.85 years to expiry and Pennines with a population of 37,000 people future capital expenditure requirements 2.25 years to first determination • Ever popular markets on Middle Street on • Fully let with 95% of rental income secured • Estimated rental value of £268,987 Thursdays, Fridays and Saturdays assist town against the strong covenants of Argos per annum (£7.55 psf) centre trade Limited (D&B 5A1), Iceland Foods • Freehold Limited (D&B 5A1), BetFred (D&B 5A1) • Prominent location with direct pedestrian • Offers in excess of £2,790,000 and Poundstretcher Limited (D&B 4A1) connection to high street (50 metres) (Subject to Contract) adjacent to the town’s bus interchange • Occupiers in the convenience and value • 9.00% Net Initial Yield and a 9.06% sectors tend to experience lower online • Modern retail parade extending to 35,614 Reversionary Yield penetration, lower exposure to CVA sq ft within 5 units on a large site of 2 acres activity and more often than not • Low capital value of just £78 psf a sustainable source of footfall VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 2 LOCATION A189 A1 WARK CRAMLINGTON HALLINGTON A696 A19 WIDEOPEN Consett is a market town situated 13 miles STAMFORDHAM A19 WHITLEY BAY CHOLLERFORD A1058 north-west of Durham and 14 miles south- A68 NEWCASTLE A1 AIRPORT west of Newcastle upon Tyne, at the junction A1058 A69 SOUTH SHIELDS of the A691/A692, both of which provide NEWCASTLE A167 A19 A1300 the link to the national motorway network HEXHAM A1 A194 at the A1(M). RIDING MILL A184 A184 A19 A694 A692 A1018 A194(M) A68 Consett is home to over 37,000 people, growing A1 LINTZFORD A1231 to 68,000 people within a 30-minute drivetime. A694 SUNDERLAND WASHINGTON A692 64 A693 A1018 A19 A690 A691 The C2C national cycle route also runs through STANLEY 63 CONSETT the town with between 12,000 and 15,000 cyclists VICTORIA CENTRE HOUGHTON A1(M) LE SPRING SEAHAM a year contributing to the local economy. CASTLESIDE PROJECT GENESIS A167 A68 LANCHESTER A690 Following the closure of the Steel Works the town has A691 62 A19 benefitted greatly from Project Genesis, a large-scale DURHAM development project to improve the local area. £200m has been spent to date on developing redundant land ST JOHN’S A167 CHAPEL with 1,750 new houses and significant commercial FROSTERLEY 61 development projects. CROOK A179 A68 SPENNYMOOR A1(M) HARTLEPOOL A688 BISHOP A19 AUCKLAND SEATON CAREW A689 60 A689 A689 SHILDON “PROJECT GENESIS HAS MIDDLETON-IN-TEESDALE A167 STILLINGTON A688 A19 SEEN OVER £200M A68 59 MIDDLESBROUGH A167 SPENT ON IMPROVING 58 GAINFORD A66 BARNARD CASTLE A68 A174 A67 THE LOCAL AREA” DARLINGTON COULBY A66 A66 NEWHAM BOWES 57 A66(M) A19 A66 VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 3 MEDOMSLEY RD TRADITIONAL HERMISTON PROJECT HIGH STREET RETAIL PARK GENESIS TESCO EXTRA VICTORIA CENTRE BUS INTERCHANGE VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 4 SITUATION B6308 BLACKHILL Medomsley Road The Victoria Centre is an easily A691 accessible town centre shopping retail B6308 VILLA REAL warehouse scheme, which together B6322 A691 with the more traditional high street (50 metres to the east) is the primary Belle Vue Park CONSETT Playing Fields retail provision for Consett. Consett Park The centre is accessed by car directly off the main thoroughfare through town (Medomsley Road) and allows B6322 for a seamless pedestrian connection with the high street. A692 A692 The towns bus interchange lies to the northern boundary, B6308 providing a direct link to the public transport network. CONSETT BUS STATION Directly adjacent to the scheme is the Derwent Centre B6322 which has a frontage onto the traditional high street. Surrounding occupiers include Home Bargains, Boyes VICTORIA CENTRE Derwent Centre Peacocks, Boyes, Superdrug and Clinton Cards. Clinton Cards A692 Superdrug Home Bargains CONSETT Peacocks CROOK HALL A692 Delves Ln A692 VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 5 Consett N PARKING 95 SPACES VACANT 50 metres VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 6 DESCRIPTION Constructed in 1995, the Victoria Centre comprises five open plan, self-contained modern retail warehouse units totalling 35,614 sq ft (3,309 sqm). Each unit benefits from roller shutter loading doors to the rear, a staff room, managers office, and staff WC’s. The site has a large loading yard to the rear of the warehouses, allowing for HGV deliveries to service each self-contained element of the property. There are approximately 95 car parking spaces to the front of the warehouses offering a generous car parking ratio of 1:375 sq ft. There are strong links to public transport with the town’s bus interchange located just along the northern boundary. The property has a site area of approximately 2.00 acres (0.808 hectares) which provides a very low site cover of approximately 39%. VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 7 TOTAL RENTAL INCOME OF £267,080 PER ANNUM (£7.50 PSF) VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 8 TENANCY, ACCOMMODATION, EPC TENURE The property is multi-let in accordance with the tenancy Freehold (Title Number: DU221479). schedule and has been measured in accordance with the RICS Code of Measuring Practice 6th Edition, and provides the following Gross Internal Areas: RENT LEASE LEASE RENT RENT ERV ERV UNIT TENANT EPC AREA TERM BREAK (PER COMMENTS START EXPIRY REVIEW (PSF) (PER ANNUM) (PSF) ANNUM) Done Brothers Unit A D - 97 2,699 sq ft 07/12/2007 15 06/12/2022 - - £45,000 £16.67 £35,087 £13.00 No further reviews. (Cash Betting) Ltd Landlord will provide Unit 2A VACANT D - 97 1,181 sq ft - - - - - £13,580 £11.50 £13,582 £11.50 a 12 month rent, rates and s/c guarantee. GF: 4,287 sq ft FF: 7,248 sq ft GF: £7.25 GF: £8.50 Rent review to open Unit B Argos Ltd - 08/11/2016 10 07/11/2026 08/11/2021 08/11/2021 £57,500 £67,244 Total: FF: £3.65 FF: £4.25 market rental value. 11,535 sq ft Rent review to open Unit C Iceland Foods Ltd C - 70 6,244 sq ft 16/01/1995 30 15/01/2025 16/01/2020 - £51,000 £8.17 £53,074 £8.50 market rental value. The tenant is in half rent period, with the landlord to top this income up to Unit D Poundstretcher Ltd C-67 13,955 sq ft 11/03/2019 10 10/03/2029 11/06/2021 11/03/2024 £100,000 £7.17 £100,000 £7.17 headline rent of £100,000. There is a 9 month break penalty if break exercised. OMRV review. Total / 35,614 sq ft - - - - - £267,080 £7.50 £268,987 £7.55 Average AWULT to Break: 2.25 AWULT to Expiry: 6.85 VICTORIA CENTRE, MEDOMSLEY ROAD, CONSETT, COUNTY DURHAM DH8 5JU 9 COVENANT STATUS A total of 95% of the total income is derived from the national operators Argos Limited, Iceland Foods Limited, Betfred and Poundstretcher Limited. A summary of their business operations and latest accounts is provided below. Argos Limited Iceland Foods Limited Poundstretcher Limited Done Brothers (Cash Betting) Limited (Company Number: 01081551), trading (Company Number: 01107406) is a British (Company Number: 00553014) are a (Company Number: 1277703) is the as Argos, is a British catalogue retailer supermarket chain headquartered in Wales, leading chain of discount stores in the UK. trading company for the national bookmaker operating in the United Kingdom and Ireland, with emphasis on the sale of frozen foods, Founded in 1981, the brand has since BetFred. BetFred are the fourth largest and a subsidiary of Sainsbury's. including prepared meals and vegetables. grown to include over 400 locations and bookmakers in the UK with 1,650 licensed They also sell non-frozen grocery items such employs more than 6,000 people nationwide. betting offices and operations both online, The company trades both through physical as produce, meat, dairy, and dry goods. The stores are a one stop shop for food, on the high street and at race courses. shops and online, with over 845 retail shops, household goods and general convenience 29 million yearly shop customers, and nearly The company has an approximate 2.2% share items, stocking over 5,000 separate Done Brothers (Cash Betting) Limited have a billion online visitors per annum, making of the UK food market with over £4.1bn in products at competitive prices. a Dun and Bradstreet rating of 5A1 and it one of the largest high street retailers in turnover driven through its 800+ stores in a summary of their latest financial results the United Kingdom. It has also franchised the UK, and employs over 23,000 people. Poundstretcher have a Dun & Bradstreet is provided below: overseas to countries such as China. rating of 4A1 and a summary of their latest Iceland have a Dun & Bradstreet rating of financial results is provided below: Argos have a Dun & Bradstreet rating of 5A1 and a summary of their latest financial 5A1 and a summary of their latest company results is provided below: accounts is provided below: Argos 10th March 11th March 27th February Iceland 30th March 24th March 25th March Poundstretcher 31st March 31st March 31st March Done Brothers 24th 24th 24th Limited 2018 2017 2016 Foods 2018 2017 2016 Limited 2018 2017 2016 (Cash Betting)