Prime Retail Warehouse & Trade Counter Investment - Hambridge Road, Newbury RG14 5EA
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Prime Retail Warehouse & Trade Counter Investment Hambridge Road, Newbury RG14 5EA
investment summary • Newly constructed, retail warehouse and trade counter development. • U nit 1: Wickes Building Supplies Ltd – FRI lease for 20 years from 25th May 2018 (T.O.B. Year 10) • U nit 2: JP McDougall & Co (t/a DULUX Decorator Centre) - FRI lease for 10 years from 9th May 2018 (T.O.B Year 5) • U nit 3: Benchmarx (Travis Perkins plc subsidiary) – FRI lease for 10 years from 25th May 2018. • Prime trading location and offering Wickes’ latest trading format. • Total GIA of 37,869 sq ft (3,518 sq m). • Low aggregate commencing rent of £329,500 pa • E quates to £11.58 psf for Wickes and £7.61 psf for the Trade Counter accommodation (on rentalised areas). • WAULT of 17.7 years (9.32 years after T.O.B.’s). • 5 yearly upward only rent reviews to Market Rent (Wickes increase capped at 3% pa). • Offers in excess of £5,620,000, exclusive of VAT. • Net Initial Yield of 5.50 %, assuming 6.61% Purchaser’s Costs.
NEWBURY Screw Fix
Travis Perkins /
City Plumbing
Tesco
Poundstretcher
Tool Station Dunhelm Carpetright
NEWBURY
RACECOURSE
Plumb Centre
THE PADDOCKS B&Q
IND. ESTATE CEF
Newbury
racecourse Brewers
NEWBURY Jewson
TRADE PARK
Halfords
OAD
WELLS R
OXFORD M1
Catchment and Demographics
FIR TREE LN
J21 RIV
ER
LA
HIGH WYCOMBE M25
MB
OU
RN Newbury has an estimated resident population of
WATFORD A4 LONDON ROAD
M40
LOND
ON ROA
D LOW
ER ROA
40,000; a District population of over 156,000 people
SWINDON D
J15
J16
NEWBURY living within West Berkshire and a 20 minute drive-
A346
M4
READING
M4
J15 time catchment population of 96,000. The town
J13
NEWBURY A4
J12
J11
J10
M25
serves the convenience and most of the comparison
A322 J12
ROAD
A4 J3
shopping needs of its resident and substantial
BRIDGE
A339
A33
M3
J10
rural hinterland population. This produces an
HAM
A3
estimated annual retail expenditure capacity of £492
KINGFISHER COURT
A34 BASINGSTOKE
CANAL VIEW ROAD
J6
A303 RIVER
J8 GUILDFORD KENN
ETT million (source: Savills Research). PROMIS ranks its
BON
ANDOVER
catchment population 7th in the PMA ‘Affluence
E ROAD
A31
M3
J9
HAMBRIDGE ROAD HAM
BRID
Indicator’ (source: PMA).
GE LA
A272
N E
The largest employer within the District is Vodafone
A3
A336
(4,000+ employees), with other key employers
including medical technology company, Stryker
Location Situation Corporation, US firm National Instruments and IT
A629
The historic marketA58town Newbury is a popular and The property is situated on a prominent corner site at the companies such as Micro Focus. The town benefits
RD
affluent commuter centre, located in the valley of the junction of WCanal AD View PAU
LTORoad and Hambridge Road (B3421), from an all year round tourist industry helped by
NORTH
ELLS RO N RO PAULTON ROAD
BATH
S TOL
AD
L
River Kennet, 20 miles (32 km) west of Reading and 26 being a busy east-west link between Newbury P L and
TO HIL Newbury Racecourse, which hosts the famous
BRI
GATE
AU BURTON
WA
Y WINDING R A37 LANE
OCK T M LN
miles U(42 km) south of Oxford. OAD WADE STREE Thatcham. Anchored by M&S and John Lewis atL RSHome,
MU
A
H
Hennessy Gold Cup.
ORAN
RD
LCT
D
O VE
TR
HIG
HS
URE
B
S
GE ST
PEL
The LANtown has excellent road connections with immediate the 475,000 sq ft Parkway D
Shopping TCentre RE
DOWNin Newbury
WATER UR
STON
OA RD DH
HALL ROAD
LON LN
NR
L S LANE
CLAN YN
ET
EET
RUSH HILL
STR LTO
RIVER MUDE )5 L
Y LAN
E
access to both the AD
M4 and A34. These provide direct links Town Centre is approximately 1 mile to the west. Newbury RIVER AVON
BYPASS (A 3
PAU
O
BR URCH
FAI
E
MIL
ILL ISTCH HIGHCLIFFE
R
KING STREET Racecourse is a quarter A362of a mile to the XBU south.
RY H WELTON CHR (A337
MIL
to key urban centres including Reading and London to
OLD
5) ) HIGH
(A3
ER
GIBBE 0 CLIFF
E RD
BO
D
CHAR
AD
WEST RO
the east or Bristol, Swindon and Cardiff to the west, via The immediate area is dominated
A39 by a mixture
T H I CKET MEAD
of trade
AY
CHRISTCHURCH PUREW RD
THE RUNW
ELL CR
NE
ORD
LES STR
WLAN D S
A58 WELLOW BROOK O
ERF HIGHCLIFFE
the M4. Oxford, Winchester and Southampton Hcan ST
be and ‘bulky-goods’ retail with Jewsons occupying the
(B3355) NORTHMEA
COW GREEN
D
COMMERC
FARRINGDON PARK
SS RD
SOM GOLF COURSE
UR R
HALIFAX GOLF COURSE OAD
RD
NORTH R
C
EET
CHUR
LISTER LANE PUREWELL
HIG
STO
reached via the north/south A34. adjoining site. Nearby occupiers on the London Retail
ANE LE ST WA
Y
HS
CAST MU D
LAN
IAL S
L
T
DEF VIL
STA
’S
MIDSOMER
ANE
OR HA
LEY
The district A629 Park
A37 (where rents range from £15psf NORTON - £17.40 psf) include CHRISTCHURCH DL
TREET
IP
hasFO good rail links, with London less than an
NP
DE
BURE L
LANG
AN
E
DR
CHARL
N
B&Q, Halfords, Dunelm and a neighbouring Tesco.TON RD
E
O
RY LA
AD
UN
RD
hour by train and TAIN
Sfurther connections, via Reading, to all
SILVER
LLS
FOR
MUDE D
TR EET RIVER STOUR
BER
HORTON STR
WE
E
mainline routes throughout the country. The area also
HALIFAX
Tenants at the Newbury Trade Park on Hambridge Rd A367
ST
T
EET
CH S
include ToolStation, Plumb Centre and CEF, where lettings
R
has good links to international transport hubs: Heathrow
CHU
and Southampton airport are 40 miles away, as are the achieved £12 psf. Business users such as Stryker and
ferry terminals in Southampton and Portsmouth. Vodafone occupy neighbouring properties.
The Newbury Retail Park caters for mainly Open A1 retail
and is 2 miles to the south, on the outskirts of town.
Occupiers include, TK Maxx, Boots, Currys, PC World,
Sports Direct, M&S Simply Food, Homebase and Argos.
Rents on the park range from £16psf to £30+psf.
Description Accommodation
The property comprises a recently developed terrace The specification includes the following:
of a retail warehouse and two trade counter units Unit 1 - Wickes Sq M GIA Sq ft GIA
• Steel portal frame – 6.7m to underside of haunch.
with shared car parking for approximately 61 vehicles. Ground Floor Sales 1,865.77 20,083
To the rear of the Wickes unit is an external Outdoor • Insulated profiled steel cladding to external
First Floor Ancillary 123.00 1,324
Project Centre and dedicated service yard, both elevations and roofs.
Entrance Lobby 41.43 446
secured by 4m high, gated fencing. This is accessed via • The roof incorporates 15% roof lights.
an extensive concrete and gated service yard, shared Trading Mezzanine* 339.75 3,657
• Internal block-work to 2.66m. Full height
with the remaining two units. Fit-out works have block-work or ‘jumbo-stud’ partition walls. TOTAL 2,369.95 25,510
commenced on Unit 2 and the store will soon open
for trade. • 30 kN/m2 floor loading to concrete floor slab.
Unit 2 – Dulux D.C. Sq M GIA Sq ft GIA
• First floor staff accommodation within Unit 1,
Ground Floor 466.28 5,019
including a canteen, administrative offices
and W.C’s.
Unit 3 - Benchmarx Sq M GIA Sq ft GIA
• Steel framed and plywood decked mezzanine
storage level to Unit 3. Ground Floor 467.02 5,027
• Electrically operated roller shutter; sliding and Storage Mezzanine* 214.80 2,313
security shutter doors to service bays and TOTAL 681.90 7,340
entrance lobbies.
Total site area is approximately 2.18 acres (0.88 h.a.) with site
• Occupier led fit-outs, including trading coverage of 32%.
mezzanine bathroom and kitchen showroom area NB *The trading and storage mezzanines within Wickes and
to Unit 1 and showroom fit outs to Units 2&3. Benchmarx respectively are to be regarded as Tenant’s Fit-out Works
and will be disregarded at rent review or lease renewal.
Post Dulux fit-out CGI
Tenure Tenant’s Covenant
Freehold Wickes Building Supplies Ltd (Reg. No:1840419) is a Benchmarx Kitchens & Joinery Ltd (Reg. No: 2780063)
wholly owned subsidiary of Travis Perkins plc and trades is a leading supplier of contract kitchens to the building
Tenancy from 244 stores . It is the UK’s fastest growing DIY retailer trade and is a wholly owned subsidiary of Travis Perkins
Unit 1 - Wickes Building Supplies Ltd will take a and the market leading online DIY proposition. The plc within its ‘General Merchanting’ division. It trades
20 year FRI lease from 25th May 2018 at an initial new trading format stores continue to drive an uplift from 183 units, 11 of which were opened in 2017 and
rental of £253,000 pa. (£11.58 psf on rentalised area) in divisional turnover and a 4.7% increase in sales was with further expansion programmed.
The lease will be in the Vendor’s standard format; reported by the ‘Consumer Division’ of Travis Perkins for The company has a 2A1 D&B Rating and summaries
incorporating a Tenant’s Option to Break at Year 10 Y/e Dec 2017. This builds on a 6.4% ‘like-for-like’ increase from their accounts for the three previous trading
(on 6 months notice) and five yearly upwards only to Y/e Dec. 2016. years are:
rent reviews to Market Rent. Increases at each rent The company has a 5A1 D&B Rating, representing a
review will be capped at the equivalent of 3% pa “minimum risk of business failure” and summaries from Pre-Tax
i.e. a maximum increase of 15.93%. Accounts Turnover Net Worth
their accounts for the three previous trading years are: Profit
Unit 2 - J.P.McDougall & Co Ltd (t/a Dulux Decorator 31/12/2016 £135m £9.9m £5.89m
Centre) have take a 10 year FRI lease from 9th May 2018 Accounts Turnover Pre-Tax Net Worth
at an initial rental of £45,000 pa (£8.97 psf). The lease is Profit 31/12/2015 £109m £6.91m (£2.13m)
in the Vendor’s standard format; incorporates a Tenant’s 31/12/2016 £1,213m £65.4m £316m 27/12/2014 £90m £2.26m (£9.31m)
Option to Break (on 6 months notice) and an upwards
only rent review to Market Rent at Year 5. 26/12/2015 £1,104m £60.1m £414m
Travis Perkins plc is the UK’s leading company in the
Unit 3 - Benchmarx Kitchens & Joinery Ltd will take 27/12/2014 £1,039m £68.8m £355m builders’ merchanting and home improvement markets,
a 10 year FRI lease from 25th May 2018, at an initial with 20 businesses trading from over 2,000 sites. It
rental of £31,500 pa (£6.27 psf). The lease will be in reported a 3.5% increase in Group turnover for Y/e 31st
the Vendor’s standard format and incorporating an J.P. McDougall & Co Ltd t/a Dulux Decorator Centre
Dec.2017 to £6.43bn, adjusted EBITA of £380m and total
upwards only rent review to Market Rent at Year 5. (Reg No: 254941) is a wholly owned subsidiary of Akzo
Assets of £5.14bn.
Nobel NV (Market Cap. €19.21 bn) and is a key part of
Planning its Decorative Paints UK & Ireland unit. The company
sells paint products and accessories from 194 retail and
Detailed planning consent (14/00485/COMIND) was trade units throughout the UK and has an N1 D&B rating.
granted on 13th June 2014 for 3 units: Unit 1 (Class B8/ Summaries from their accounts for the three previous
A1) including mezzanine and associated Outdoor Project trading years are:
Centre and Secure Compound, Unit 2 (Classes B2, B8 with
trade counter and ancillary showroom and sui generis Pre-Tax
tile merchant) including mezzanine, Unit 3 (Class B8 Accounts Turnover Net Worth*
Profit
with trade counter and ancillary showroom) including
mezzanine, access and servicing arrangements, car 31/12/2016 £169.75m £5.46m (£50.72m)
parking, landscaping and associated works. 31/12/2015 £167.76m £146,000 (£34.83m)
The sale of goods across the three units is restricted to
“DIY, home improvement and building material / items, 31/12/2014 £167.23m £7.09m (£39.1m)
including tools and tiles, within class B8”. *Includes Pension Liabilities
NB. Small area of service yard has now been excluded from the holding
EPC
The units have been rated as follows:
Unit 1 – A-23
Unit 2 – B-28
Unit 3 – A-24
Copies of the Energy Performance Certificates are
available on request.
VAT
The property has been elected for VAT and the
transaction will be treated as a TOGC.
Proposal
Seeking offers in excess of £5,620,000 (Five Million, Contact
Six Hundred and Twenty Thousand Pounds) for the For access to the dataroom or to arrange an
freehold interest, subject to contract and exclusive inspection, please contact:-
of VAT. This price reflects a Net Initial Yield of
5.50%, assuming standard Purchaser’s Costs and Paul Yeadon
SDLT of 6.61%. cpy@hsmuk.com • DDI: 020 7318 1931
Andy Taylor
art@hsmuk.com • DDI: 020 7318 1934
DISCLAIMER
Messrs Hoddell Stotesbury Morgan Ltd for themselves and for the vendors of this property whose agents they are give notice that:- (i) the particulars are set out as a general outline only for the
guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and
occupation, and other details are given in good faith and are believed to be correct but any intending purchaser should not rely upon them as statements or representations of fact but should
satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs Hoddell Stotesbury Morgan Ltd has any authority to make or give
any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) Messrs Hoddell
Stotesbury Morgan Ltd has not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers must
undertake their own enquiries and satisfy themselves in this regard. Date: May 2018.
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