Chesterfield portfolio - retail warehouse investment opportunity - Cortex Partners
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chesterfield portfolio
retail warehouse investment opportunity
chesterfield portfolio The Chesterfield Portfolio offers the opportunity to acquire 3 Retail Warehouse units let to DFS Trading Ltd (a 5A1 covenant) for 15.9 years.
chesterfield portfolio
DUNDEE
■
PERTH
■
EDINBURGH
■
■
GLASGOW
NEWCASTLE UPON TYNE
■
■
CARLISLE
HARTLEPOOL
■
MIDDLESBROUGH
■
WHITBY
■
Portfolio Highlights SCARBOROUGH
■
LANCASTER
2 Freeholds and 1 Leasehold Interest ■ HARROGATE
■
YORK
■
HULL
3 Retail Warehouse Units in established locations ■
HALIFAX
SCUNTHORPE
■
BOLTON ■
BARNSLEY
All of the properties are let to DFS Trading Ltd for a term 25 years
■ ■
■ DONCASTER GRIMSBY
■
LIVERPOOL
from 24 March 2005
■
■
MANCHESTER SHEFFIELD
■
BUXTON LINCOLN
Let for a further 15.9 years without break ■
NEWCASTLE-UNDER-LYME
DFS Trading Ltd has a D&B rating of 5A1
■ BOSTON
STOKE-ON-TRENT NOTTINGHAM ■
■ ■
DERBY
■
BURTON
DFS Trading Ltd reported in July 2012 Pre-Tax Profits of £70.2m UPON TRENT
■
■
and a Net Worth of £63.3m WOLVERHAMPTON
■
MEASHAM ■ LEICESTER PETERBOROUGH
■
NORWICH
BIRMINGHAM
Total Net Passing Rent £1,416,013 pa ■
■
COVENTRY BURY
ST EDMUNDS
Offers in excess of £16,730,000
NORTHAMPTON
■ CAMBRIDGE
DROITWICH ■
IPSWICH
(Sixteen Million Seven Hundred and Thirty Thousand Pounds) ■
MILTON
■
KEYNES
Net Initial Yield 8.0% OXFORD
■
■
SWANSEA SWINDON
■
READING LONDON
■ ■
CARDIFF ■
BRISTOL
■
BATH
■
SOUTHAMPTON
■
PORTSMOUTH
■
PLYMOUTH
DFS are the leading retailer of upholstered
furniture in the United Kingdom currently
operating out of 97 stores totalling 1.4 million sq ft.
DFS (formerly Direct Furnishing Supplies)
was established in 1969.
The company is a clear UK market leader with a 28% share of the estimated
£2.77 billion upholstered furniture market in 2012, which was approximately four times
that of any other upholstered furniture specialist.
All of the products DFS sell are made to order and, as a result, there is minimal
exposure to inventory risk. They have three upholstered furniture manufacturing
facilities, all of which are located in the United Kingdom. Sales densities are significantly
higher than their rivals in the furniture sector:
Retailer Sales per sq ft (£) Operating profit margin (%)
DFS £410 7.6%
Ikea £260 3.0%
Oak Furniture Land £240 11%
Dunelm £195 15.8%
SCS £158 0.3%
Bensons/Harveys Homestyle £135 3.6%
Carpetright £87 3.5%
chesterfield portfolio
DFS Trading Limited Lease length
The DFS group is wholly owned by Advent DFS Furniture Holdings plc published half All leases are for a term of 25 years from 24 March 2005,
International, a private equity firm, who yearly results on the 25th January 2014 therefore having an unexpired term of 15 years and 11 months.
purchased DFS in 2010 for circa £500 million. and reported the following financial and This is double the IPD retail warehousing average lease length.
For the 52 weeks ended 27 October 2012 operational highlights:
the group generated turnover of £640.5 Average lease length 2000-2012
million and Adjusted EBITDA of £83.5 million Financial Highlights:
with an Adjusted EBITDA margin of 13.0%. • Sales £315.3 million (2013: £319.4 million)
reflecting weakness in demand
The occupational tenant under all the
occupational leases within the Portfolio is • EBITDA £23.8 million (2013: £31.1 million)
DFS Trading Limited (Company Number: • Strong cash generation continues: cash All RW All Property Chesterfield Portfolio unexpired term
01735950). This company is a wholly owned balances £33.9 million (2013: £22.0 million)
length (years)
subsidiary of DFS Furniture Company Ltd after payment of £20.0 million dividend
which itself is a wholly owned subsidiary of
DFS Furniture Holdings plc. Operational Highlights:
Average lea se leng
• New website delivering good results
DFS Trading Limited is the primary trading
• 100th DFS Store in UK and Ireland opened
company within the DFS group and includes
in Torquay
both the manufacturing and retail operations
of the business. Based on information from • New brand partnership with Dwell to
Dun & Bradstreet, DFS Trading Ltd is rated further increase appeal to aspirational
as 5A1. consumers
• Local distribution centre trial creating
For the year ending 28th July 2012, efficiencies and additional trading space
DFS Trading Ltd reported a turnover of
£624,000,000 a pre-tax profit of £70,200,000 Full report available upon request.
and a net worth of £63,300,000.
chesterfield portfolio
Measham bury St Edmunds DROITWICH
Gross Rent
No. Address Town Postcode Tenure Site Area Accommodation Sq m Sq ft Rent psf Net Rent
pa
1 DFS, Tamworth Road Measham DE12 7GG Freehold 0.77 acres Retail Warehouse 1,865.4 20,079 £365,336 £18.19 £365,336
DFS, Roman Way Retail Park,
2 Droitwich WR9 9AY Freehold 1.7 acres Retail Warehouse 1,858.0 19,998 £528,767 £26.44 £528,767
Kidderminster Road
Leasehold - 69 years
3 DFS, Easlea Road Bury St Edmunds IP32 7BY 1.97 acres Retail Warehouse 1,860.7* 20,029* £521,910 £26.06 £521,910
unexpired at £37,500 p.a.†
TOTAL 5,584.1 60,106 £1,416,013 £1,416,013
*Excluding Mezzanine. NB: There is an option to renew the lease for a further 26 years from the expiry date and this option may be exercised at anytime during the term other than the final 6 months before expiry. The headlease pay away passes straight through to the tenant.
†
Measham
DFS, Tamworth Road, chesterfield portfolio
Measham, DE12 7GG
d
New
yR
■
Stre
hb
DERBY NOTTINGHAM Me et
As
A50 ash
A51 a mR
■ oad
■
Long Eaton L e ic e
s t er R o a d
et
re
Bu
A518 A50 rto
St
2 n
A4
gh
Ro
Hunt i n g d o
ad
Hi
BURTON
Bo
w
or
s
Nottingham
UPON ■TRENT East Midlands n
th
Ro
A444 Acresford R o a d
W
Stafford Airport
A6 ay ad
■
A515 riv
e
A518 A42 Loughborough on
D
ge
M6 A444 ■ Wi
A46
Atherston
A38 M1
A480 A51
MEASHAM THE PROPERTY
e
A511
Lan
Cannock ad
e R
Ro
Gallows
■
Lichfield wo
rth
oa
A5 Tam
d
■
M42
M54 Tamworth LEICESTER
16
A34
1
■
B4
■
M6 Toll
J11
A452
Leicester
A453
WOLVERHAMPTON Sutton
A5
Airport
A6
■ ■
Coldfield A444
Walsall
A454 ■
A38
B411
M6 Nuneaton M69
Dudley
M 42
DFS, TAMWORTH ROAD, MEASHAM
6
■
A444
■
Mea
BIRMINGHAM M1 LEICESTERSHIRE, DE12 7DU
J11
sham
Atherstone Road
■
Birmingham M6 A5 49
9
M5 B5
R oa d
Airport
M42
Solihull
■ COVENTRY
■
Location Description Catchment and Demographics 18
Measham is located approximately 3.3 miles south west of The property comprises of a first generation detached retail The total population of Measham is circa 4,850 according to the 16
Ashby-de-la-Zouch, approximately 11 miles south east of Burton warehouse. The building is of steel portal frame construction, clad 2011 Census.
on Trent and approximately 24 miles north east of Birmingham. externally in a combination of cavity facing brickwork and profiled Measham is included within the retail catchment area of Burton
The M1 (J25) is approximately 14 miles to the north east and metal cladding with aluminium framed shop front glazing and on Trent, which has a primary catchment of 238,000 and an
the M6 and M6 Toll are approximately 16 miles and 13.5 miles public entrance doors. estimated shopping population of 141,000. TCB
respectively to the south west. The retail store has three loading bays and includes 37 car The age profile of the Burton on Trent primary catchment
Measham is located on the A42 which merges with M42 (J11) parking spaces (including 2 for disabled use), arranged along the population includes a relatively high proportion of older working
circa 2.3 miles to the south, and with the M1 (J25), circa 11 miles front and rear elevations of the property. aged adults aged 45-64.
to the north east. The measured eaves height for the property is 2.37 metres.
The nearest rail station is situated in Tamworth, approximately The property has a site area of approximately 0.77 acres (0.31 hectares).
10 miles south west of Measham providing regular services to Planning
London Euston with a fastest journey time of 1 hour 8 minutes. The unit has planning permission for the sale of all goods
East Midlands Airport is circa 13.2 miles to the north and is the Accommodation (i.e. Open A1, including food).
12
13th busiest airport in the UK by passenger traffic. The airport is
16
Floor/Unit Sq M Sq Ft
18
a major cargo hub and was the second UK airport for freight
traffic in 2012.
Tenure
Retail Unit 1,865.4 20,079
Freehold.
20
Situation Tenancy
42
EPC
The property is located on the Westminster Industrial Estate, to
44
The property is entirely let to DFS Trading Ltd for a term of 25 Available upon request.
46
48
the south of Measham, adjacent to Tamworth Road, which is years from 24th March 2005 to and including 23 March 2030.
50
PE
RE
the town’s main arterial route and joins Junction 11 of the A/M42 The rent is £365,336 per annum, reflecting £18.19 per sq ft. VAT
GR
72
1.5 miles to the south west. It is accessed via a significant There are further open market reviews as at 24th March 2020
IN
E
The property is elected for VAT.
30
CL
frontage along Tamworth Road, which is the main road running and five yearly thereafter.
OS
E
past the industrial estate.
IV
E
54
82
DR
70
N
The property is situated adjacent to British Car Auctions, Europe’s
O
114
GE
RA
116
58
ID
Largest Auction Group and benefits from a good level of passing 118
VE
W
120
84
N
traffic, due to its long frontage along Tamworth Road.
CL
OS
0m 10m 20m 30m
The area is mixed use in character, mainly comprising industrial
11
E
2
60
accommodation to the south and residential accommodation © Crown Copyright, ES 100004106
Ordnance Survey © Crown Copyright 2013. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1250
to the north.
Droitwich
DFS, Roman Way Retail Park, chesterfield portfolio
Kidderminster Road, Droitwich, WR9 9AY
A41
A44
WOLVERHAMPTON M6 Toll
2 K
Walsall A5
A442 ■ ■ Sutton A444
idder
A4123 A463 Coldfield M42
M6
minste
A454 ■
ad
A41 Impney
Ro
Park
Crutch Lane
r Road
A458
ve
A449 A5
ro
West
oad
M6 Toll Nuneaton
sg
Bromwich
om
■
ood R
Dudley ■ M6
A4123 A41
Br
■ A38(M)
A444 A38 8
A458
A3
tw
Ro
BIRMINGHAM id d ma
Wes
K
erm nW
A491 A456 ■ M69 ins ay
M6 ter
Rd
A45
A442 Stourbridge A458
Kidd
ay
Birmingham e
A45
ad
A456
W
A449 International A444
rmin
Ro
Airport
an
M5 A38
m
ve
ster Rd
Ro
Solihull Vi
ro
COVENTRY ne
oad
sg
A441 ■ sL
8
m
M42 ■ A46 THE PROPERTY ane
KIDDERMINSTER
A3
eR
Bro
A491 A452
A435 A45
a rp
■ B409
0 Sa
lw
ltw ay
A456 Union Lane
Sa
y
A448 A45 Wa
M42 Coventry ood
Airport Wes t w
A46
Droitwich B4090
A4177 Spa
A38 A448 M40 A452
Redditch
ad
M5
B40 9 0
Briar
Royal
Ro
■
A442 Leamington
A435 B4090 Hanb
ter
A449 s ur y
Spa
Mi
ce Rd
Sa or
ll
■
M5
A443 A4133 A429 l t wa W
A441 y
DROITWICH
The Hollow
SPA ay
W
d
DF S , Ro man W ay Re tail P ark, K iddermins ter Road , Droitwich W R9 9AY
oa
ey
A449 A46 A429
e ster R
rsl
ay
M40
be
A422
WORCESTER
Om
A44 Stratford-upon-Avon
rc
■
■
Droitwich
Wo
A38
A4103 M5 Lido Park
090
A4440
A449 A44
A46
B4
Location Description Tenancy Iss ues
Droitwich is located approximately 6 miles north of Worcester and The property comprises a modern retail warehouse, forming the The property is entirely let to DFS Trading Ltd for a term of 25
approximately 22 miles south west of Birmingham. end terrace to the north of three properties. The building is of years from 24th March 2005 to and including 23 March 2030.
Droitwich lies 2 miles south west of the M5 (J5) and is accessed steel portal frame construction, clad externally in a combination of The rent on completion will be £528,767 per annum, reflecting
via the A38. Its interchange with the M42 is approximately 10 cavity facing brickwork and profiled metal cladding. The property £26.44 per sq ft by virtue of a fixed increase on 24th March 2014. 1
miles to the north. shares a car parking area with the other two retailers on the park There are further open market reviews as at 24th March 2020
and benefits from 216 spaces. and five yearly thereafter.
Droitwich Spa railway provides services to London Euston
via Birmingham New Street with a fastest journey time of The measured eaves height for the property is 3 metres.
Droitwich Spa
approximately 2 hours 22 minutes. The station offers regular The property has a site area of approximately 1.76 acres (0.71 Catchment and Demographics Homebase
services to Birmingham New Street with a fastest journey time of hectares).
Based on the 2011 Census data, the total population within
40 minutes.
a 10 minute drive time of Droitwich is 27,205 increasing to
Accommodation 149,828 within a 20 minute drive time.
Situation 41
Floor/Unit Sq M Sq Ft ALDI
The property is situated on Kidderminster road and forms part of Planning
47
the Roman Way Retail Park. Occupiers on the retail park include Retail Unit 1,858 19,998
35
The property is subject to a restrictive covenant not to use the
Aldi, Homebase, Carpet Right, Horsatack, Bensons for Beds and
property or any part of it as a retail general DIY store or garden DFS
Sofa Specialist. There are also a number of car showrooms and
25
centre and also not to use the property for the sale of electrical
20
trade counter uses on Kidderminster Road.
21
appliances including televisions, videos, audio equipment and
S
IS
19
PK
The property is situated in a mixed residential and commercial cabinets for such items, lighting, electrical accessories, heating
HI
12
El Sub Sta
area approximately 500 meters to the north of Droitwich Spa G
15
appliances and gas appliances. 11 AR
DE
Railway Station. E l S ub
34 N S
S ta 38
Tenure
3
Freehold. 1
32
to
2
8 20
26 1
22
EPC Brook
YM
24
Court H O NE
Available upon request.
55 35
53
0m 10m 20m 30m
VAT
33
51
Or dnance Sur vey © Crown Copyright 2013. All rights reserved.
© Crown Copyright, ES 100004106
The property is elected for VAT. Licence number 100022432. Plotted Scale - 1:1250Bury St Edmunds
DFS, Easlea Road, chesterfield portfolio
Bury St Edmunds, IP32 7BY
et M ou n t R o ad
re
■ St
King’s Lynn te
ga
O rt
st
Ea
tew
NORWICH
Leicester
e ll
■ Great
Ro
■
A47
A1065 NORWICH Yarmouth
ad
■
PETERBOROUGH Bury St Edmunds
■ A134
Abbey
M1 A10 Lowestoft ad
s Ro
A1 4
S y m o nd
■
A5
A1(M) Thetford A143 S kyliner Way
Kettering ■
Rugby ■ A141
■
A11 THE PROPERTY
HUNTINGDON
M45 ■
A142 A134 Sy
A10 m ay
A45 A1 A14 BURY ST EDMUNDS on ld W
ds g fe
NORTHAMPTON Newmarket A140
Ro din
A425 ■
ad Be
■
A14
A6 A428 CAMBRIDGE
■
CAMBRIDGE
ad
M1 BEDFORD A11
sle
a Ro
■
M11 A14 Ea
A10
Milton
A134 IPSWICH
So
Keynes ■
u
■
th
A14
34
ga
Bury St Edmunds
A1
te
Felixstowe
S
A1(M) RUFC
tre
■
M1
et
■
Stevenage Bishop’s Colchester Harwich Road
STANSTED
M40 Luton ■
gham A14
Stortford A134 Rou
■
■ LUTON ■ A120
Aylesbury
■
Clacton-on-Sea A13
Hemel 02
Harlow A130
■ Cull
OXFORD Hempstead um
Road
A1
■
■ ■ ■ Chelmsford
34
St. Albans ■
Si
a
DFS
d
ck
Now
High Watford Enfield o
A12 W il k s R
les
■ ■
Wycombe
ton Road
EASLEA ROAD
me
■ M25
M1 M25
re
M40 Basildon
BURY ST EDMUNDS
Ro
■
Southend-on-Sea
ad
Maidenhead M25 LONDON ■
IP32 7BY
GR
■
M4
EY
Reading
FR
M4 ■ HEATHROW
IAR
ROS
AD
Location Description Catchment and Demographics
Bury St Edmunds is a market town in Suffolk in the east of The property forms a detached retail warehouse clad externally The total population within the Bury St Edmunds primary retail
England. The town is situated approximately 29 miles east of in insulated Plastisol coated profiled metal sheet cladding with catchment area is 255,000.
Cambridge and 27 miles north west of Ipswich. brushed aluminium, single glazed shopfront and entrance doors According to the most recent Promis Report, the estimated
to the furniture showroom areas.
1
shopping population of Bury St Edmunds is 131,000.
11
Bury St Edmunds is located on the A14, a main arterial route 12
through the county of Suffolk linking Cambridge to the west with The property enjoys large volumes of passing traffic being El Sub Sta
Ipswich to the east. The A134 provides access to Thetford to the adjacent to the A14 and also benefits from a customer car Planning
north and Sudbury to the south. parking area to the front of the store with 129 car parking spaces.
The property can be used for the sale of a limited range of bulky
Bury St Edmunds railway station is situated towards the northern The measured eaves height for the property is 8.1 metres. goods only.
perimeter of the town close to the A14. The station is managed
by Greater Anglia and provides services via Cambridge or Ipswich
to London Kings Cross or Liverpool Street Stations respectively, Accommodation Tenure
with a fastest journey time of approximately 1 hour 40 minutes. The property is held long leasehold by way of a lease dated 29
Floor/Unit Sq M Sq Ft March 1984 from The Council of the Borough of St. Edmundsbury
Retail Unit 1,860.7 20,029 for a term of 99 years thereby having approximately 69 years
Situation unexpired. There is an option to renew the lease for a further 26
Mezzanine 322.5 3,471 years from the expiry date and this option may be exercised at
The property is located towards the eastern fringe of the town
on Easlea Road. Easlea Road is an established trading location Total 2,183.2 23,500 anytime during the term other than the final 6 months before expiry.
The vendor is in the process of exercising this option.
with direct access to the A14 and A134. St Edmundsbury Retail
Park is located to the east beyond Currys and Home Bargains The annual rent is subject to five yearly reviews to 15% of open
which are immediately adjacent to the property. Other occupiers Tenancy market value.
on the park include Homebase, Dunelm Mill, Carpetright and The property is entirely let to DFS Trading Ltd for a term of 25 The gross rent on completion will be £521,910 per annum.
Dreams. The A14 passes immediately south of the southern years from 24th March 2005 to and including 23 March 2030. The current head rent payable (from March 2009) is £37,500 p.a.
boundary of the site and can be accessed a short distance to The rent is £ 521,910 per annum, reflecting £26.06 per sq ft. The tenant covenants to pay to the landlord sums equal to all rents
the west at Junction 44. There are further open market reviews as at 24th March 2020 and any other monies due under the Superior Lease. The current
and five yearly thereafter. head rent payable (from March 2009) is £37,500 per annum.
The dominant land uses in the area immediately surrounding
the subject property are retail warehousing and light industrial. The net rent receivable is £521,910 per annum as per the
ED & Wa
rd Bdy
tenure paragraph. EPC CR
Available upon request.
0m 10m 20m 30m
VAT Ordnance Survey © Crown Copyright 2013. All rights reserved.
© Crown Copyright, ES 100004106
Licence number 100022432. Plotted Scale - 1:1250
This map is for indicative purposes only
The property is elected for VAT.chesterfield portfolio
Proposal
We are instructed to seek offers in excess of £16,730,000
(Sixteen Million Seven Hundred and Thirty Thousand Pounds),
reflecting a net initial yield of 8.0%.
For further information please contact:
Design: Command D - www.commandhq.co.uk
Jeremy Hodgson Dale Johnstone Lottie Hayward James Gulliford Marcus De Minckwitz
020 7543 6709 020 7543 6796 020 7543 6890 020 7409 9934 020 7409 8755
jeremy.hodgson@allsop.co.uk dale.johnstone@allsop.co.uk lottie.hayward@allsop.co.uk www.allsop.co.uk jgulliford@savills.com mdeminckwitz@savills.com www.savills.com
Misrepresentation Act: 1. Allsop LLP and Savills on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Savills is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are
to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or Savills nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings
and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of
each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the
trading name of Allsop LLP. 05.14You can also read
