Freehold Retail Warehouse Investment - Manners Road, Ilkeston DE7 8EG ENTER - Wilkinson Williams
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Freehold Retail Warehouse Investment
Manners Road, Ilkeston DE7 8EG
ENTER >
Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Investment Considerations
> Ilkeston is located 8 miles west of Nottingham and 10 miles
east of Derby, benefiting from excellent road links, being
located close to both the A52 and the M1.
> The property is highly accessible, situated on Manners Road,
off the A6007, the main arterial route through the town.
> Ilkeston has a limited supply of retail warehousing and the
property is located in the main retail pitch.
> Strong trading store, as evidenced by Dunelm re-gearing their
lease for a new 10 year term from June 2014.
> The unit totals 36,605 sq ft with car parking for 230 vehicles.
> The property benefits from a long unexpired lease term of 10
years and is let to the secure 5A1 D&B rated covenant of
Dunelm (Soft Furnishings) Limited.
> Low rent of £195,000 per annum reflecting £5.33 per sq ft,
giving excellent reversionary potential.
> Large site area of 3.24 acres, creating the opportunity for long
term redevelopment angles.
> We are instructed to seek offers for the freehold interest in the
above property in excess of £2,730,000 (Two Million, Seven
Hundred and Thirty Thousand Pounds), subject to contract and
exclusive of VAT. This reflects an attractive net initial yield of
6.75%, based on purchaser’s costs of 5.80%.
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Location & Catchment Population A617
A38
Ilkeston is located within Derbyshire, 8 miles west of Nottingham and 10 miles A61
South Kirkby in
east of Derby. The town benefits from excellent road communications, being Normanton 28 Ashfield
located 2 miles north of the A52, which links Derby and the M1 to Stoke on Trent
and the M6. Access to the M1 can be gained at Junctions 25 and 26, 5 miles to A6 A60
the east. A38 M1
A614
A610
A new railway station is proposed for Ilkeston, which is planned to open in 27
December 2014, providing a direct 15 minute service to Nottingham. Ripley
Furthermore, East Midlands Airport is located 12 miles south of Ilkeston and
provides national and international flights. Hucknall
A610
Belper
The subject property benefits from a large catchment population. CACI estimate
A6 A38
there are 89,046 people living within a 10 minute drive time of the property,
extending to 533,991 people within a 20 minute drive time. This figure is A6007 Arnold
anticipated to increase by 3.85% by 2017. 26 A610
A609
Ilkeston M1
Carlton
A609 A60
NOTTINGHAM
A6096
A52 A52
West A52
Chaddesden Bridgford
Beeston
A38 DERBY A52
25
Long Easton A453
A606
A6
M1
A50 Chellaston
A50
A38
A453
24
Castle Kegworth
Donington
East Leake
Melbourne
East Midlands
Airport
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
SP R RDENS
I N G F I E L D GA Situation
COTM
The property is situated approximately 800 metres north of Ilkeston town
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centre, on Manners Road, which is accessed via the A6007 Chalons Way, the
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The subject property benefits from being situated in close proximity to a 90,000
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E BEL sq ft Tesco Extra foodstore and to the west of an Aldi foodstore.
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0.5 miles east is Waterside Retail Park, the only retail park in the town. This scheme
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BARKER
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GATE totals 68,000 sq ft and is anchored by M&S Simply Food, with the other units
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being occupied by Family Bargains, Iceland, Poundstretcher, Halfords, Brantano
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Y and Argos. We understand rents here are in the region of £12.00 per sq ft.
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A6096 RUTLAND STREE WATERSIDE A new 65,000 sq ft Morrisons foodstore with petrol filling station is under
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RETAIL PARK construction 1 mile south of the subject property demonstrating the strength
and draw of Ilkeston’s catchment.
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Description
The property is a standalone former Tesco foodstore, which is now occupied by
Dunelm, who have been trading from the property for over 10 years. Internally,
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the unit is fitted to Dunelm’s specifications. Dunelm trade across the ground
ROA
OR
floor and have staff offices on the first floor which combined provide a total
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MA
internal area of 36,605 sq ft.
Car parking is located to the front and side of the unit totalling 230 spaces,
equating to an attractive car parking ratio of 1:159 sq ft giving scope in the future
to add a pod unit or drive thru on the car park, subject to demand and planning.
The site area is 3.24 acres providing a low site cover of 23%.
Accommodation
The property provides the following areas:
Location GIA sq ft GIA sq m
D
D
A
Ground Floor 32,630 3,031.40
RO
ON R
S
ER
First Floor 3,975 369.29
N
MAN HADD
LORD Total GIA 36,605 3,400.69
Tenancy
The property is fully let to Dunelm (Soft Furnishings) Limited on a full repairing
and insuring lease. Dunelm previously had a 10 year lease from July 2003 and as
they wanted to remain in occupation, a new lease was agreed from 24 June
2014, expiring 23 June 2024, at a current annual rent of £195,000 (£5.33 per sq
ft). The lease is subject to a rent review in year 5 to open market value, capped at
£220,625 per annum (£6.03 per sq ft).
It should be noted, under the terms of the lease, the tenant is responsible for the
insurance of the building.
Tenure
The property is held freehold with the site area delineated in red opposite.
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Planning
The property benefits from an open A1 non-food consent, allowing the unit to be used for any purpose within Class A1 of the Town &
Country Planning (Use Classes) Order 1987, other than as a foodstore. There is a Section 106 Agreement which prevents the subdivision of
the building into units of less than 10,769 sq ft.
The planning consents are available on request.
Rental Value
We believe the unit should benefit from significant reversion. It is our view the market rental value should be in the region of £9.00 per sq ft
as evidenced by the comparable information below:
Address Tenant Transaction GIA Effective Rent Comments
(sq ft) Date (per sq ft)
Derby Road, B&Q Rent Review 36,967 Sep-12 £11.83 Monopoly store with an uplift awarded at arbitration to £11.83 per
Eastwood sq ft, less 2.5% for absence of rent free assumption.
Baglan Bay Retail Park, 99p stores Open Market 26,100 Sep-12 £9.00 New 10 year lease with 12 months rent free.
Port Talbot Letting
Castlemore Retail B&M Open Market 27,200 Jul-12 £9.19 New letting with 12 months rent free netting back to £8.50 per sq ft.
Park, Warminster Letting
Horninglow Street, Family Bargains Open Market 30,000 Mar-12 £10.00 Former Focus unit let to Family Bargains on a 10 year lease with a
Burton Upon Trent Letting capped review at £360,000 p.a. Family Bargains received a 12 month
rent free period. The unit has a fully open consent including food.
George Westwood Way, Family Bargains Open Market 26,383 Jan-12 £10.00 Former Focus unit let to Family Bargains on a 10 year lease.
Beccles Letting
Victoria Road, Hanley, Poundstretcher Open Market 34,989 Jan-12 £8.00 Former Focus unit let to Poundstretcher on a 10 year lease.
Stoke-on-Trent Letting
Newquay Road Retail Dunelm Open Market 24,000 Jan-11 £12.50 New letting on a newly developed scheme as the anchor tenant.
Park, Truro Letting Dunelm received 24 months rent free and £180,000 capital
contribution, equating to a net effective rent of £9.45 per sq ft.
At the rent review in 2019, we believe the maximum rent of £220,625 per annum, reflecting £6.03 per sq ft, will be achieved. This would
equate to a reversionary yield of 7.64% in 2019 and an equivalent yield of 7.71%, based on the quoted purchase price.
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Asset Management
The property benefits from being situated on a large site of 3.24 acres giving the scope for redevelopment in the medium to long term
future. In addition there is an attractive car parking ratio of 1:159 sq ft, enabling a pod unit or drive thru restaurant to be built on the car
park, subject to planning and negotiations with Dunelm.
Tenant Covenant
Dunelm was established over 30 years ago by Bill and Jean Adderley, and the company still remains partially owned and run by the family
today. Dunelm is now one of the UK’s leading home furnishing retailers, with over 130 stores across the UK employing in excess of 4,500
members of staff.
The retailer benefits from a 5A1 covenant, as rated by Dun & Bradstreet. We set out below a summary of their most recent company accounts:
Tenant Year Ending Sales Turnover Pre Tax Profit Net Worth D&B Rating
(000’s) (000’s) (000’s)
29/06/2013 £677,192 £106,426 £47,877
Dunelm (Soft Furnishing Limited) 5A1
30/06/2012 £603,729 £96,562 £36,421
VAT
The property has been elected for VAT purposes.
EPC
81
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Freehold Retail Warehouse Investment Investment Location & Situation Description, Planning & Asset Proposal &
Considerations Catchment Accommodation, Rental Value Management, Contacts
Manners Road, Ilkeston DE7 8EG Population Tenancy &
Tenure
Tenant
Covenant,
VAT & EPC
Proposal
We are instructed to seek offers for the freehold interest in the above property in
excess of £2,730,000 (Two Million, Seven Hundred and Thirty Thousand
Pounds), subject to contract and exclusive of VAT. This reflects an attractive net
initial yield of 6.75%, based on purchaser’s costs of 5.80%.
Contacts
Ellie Kirkby
T: 020 7317 3790
M: 07764 241 898
E: e.kirkby@wilkinsonwilliams.co.uk
Paul Wilkinson
T: 020 7317 3799
M: 07770 585 313
E: p.wilkinson@wilkinsonwilliams.co.uk
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 convy and although believed to be correct, their accuracy is not guaranteed and they do
not form part of any contract. July 2014. Designed and produced by BOWMANS 0113 272 0088
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