HOMEBASE, HYNDBURN ROAD, ACCRINGTON, BB5 4AH - FREEHOLD WELL SECURED RETAIL WAREHOUSE INVESTMENT SALE
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FREEHOLD WELL SECURED RETAIL WAREHOUSE INVESTMENT SALE HOMEBASE, HYNDBURN ROAD, ACCRINGTON, BB5 4AH
INVESTMENT SUMMARY LOCATION Accrington has an urban area population of 71,224 persons. This is the only DIY Store in the town, lying adjacent to the only large food store. SITUATION Lies just on the western edge of the town centre, prominently situated at the junction of the ring road and the main road to the motorway junction. DESCRIPTION Purpose built retail warehouse unit comprising 31,427 sq ft, together with garden centre and car parking for 164 vehicles (1:192 sq ft). PLANNING Bulky Goods. TENURE Freehold. TENANCY Well let to Homebase Ltd on a lease expiring on 24th June 2027 (over 19 years unexpired). The rent passing is £275,000 per annum and there is a fixed rental uplift on 29th September 2009 to £299,374 per annum (£9.53 per sq ft). The next open market rent review is at 29th September 2014 which is upwards only and these are 5 yearly thereafter on a similar basis. PROPOSITION On the basis of the vendor making good the passing rent to the fixed uplift level of £299,374 per annum, offers are invited at a price in the order of £4.440 million, subject to contact. The purchaser would obtain a net initial yield of 6.375% at this price, after allowing for purchaser’s costs at 5.7625%.
1.0 LOCATION Clitheroe
COLNE
Accrington lies in East Lancashire, some 6 miles east of Blackburn and 19 miles
east of Preston. Longridge NELSON
Whalley
Accrington has an urban area population of 71,224 persons (2001 Census), and
Padiham
within 10km of the centre are some 310,500 people.
Clayton BURNLEY
Great Harwood le-Moors
The M65 motorway lies to the north of the town and provides a quick link to the Rishton
M6 at Preston to the west. PRESTON
ACCRINGTON
BLACKBURN
The travel to work area unemployment rate as at October 2007 stood at 2.2%, Bamber
Oswaldtwistle
Baxenden
the same as the average for GB. Bridge
Crawshawbooth
Belthorn
LEYLAND Haslingdon
Hoddlesden RAWTENSTALL
DARWEN
2.0 RETAILING IN ACCRINGTON
Town centre retailing is dominated by the Market Square and Arndale Centre.
Anchor retailers are Marks & Spencer, New Look, WHSmiths, Dorothy Perkins, CLITHEROE & RIBBLE VALLEY
Woolworths and Burton. BURNLEY
& NELSON
There is a very limited amount of retail warehouse accommodation in the town,
essentially comprising the subject property, a Matalan just to the west and the
Eastgate Retail Park totalling some 30,000 sq ft. The latter, lying to the east of
the town centre, is currently let to InStore, Home Bargains and Netto at £8.75
per sq ft with rent reviews due.
The pitch of the subject property is anchored by an Asda foodstore of some
88,000 sq ft lying just to west, which is the only large format food store in BLACKBURN,
PRESTON, M6
the town. & M61
Town
Centre ACCRINGTON
M66, BURY & MANCHESTER
3.0 SITUATION
The property is prominently situated fronting the Hyndburn Road (A679).
This route forms the main link between the town centre and the M65.
Lying on the western side of the town centre, the property lies adjacent
to the roundabout junction between Hyndburn Road and Eastgate (A680),
which forms a ring road around the town. There is direct vehicular
access and egress to and from the subject property from this
roundabout junction.
The property lies in the principal location for off centre retailing in the
town. Apart from the adjoining Asda, there is an Aldi foodstore being
developed on a site just to the east. Opposite is a modern Vue Cinema,
Bowl and McDonalds restaurant.
4.0 DESCRIPTION
The development comprises a purpose built retail warehouse unit
completed in 1989. There is an adjoining garden centre, customer car
park and service yard.
5.0 ACCOMMODATION
The development property provides the following measured gross
internal areas:
Petrol filling
Description SQ FT SQ M station
Homebase 31,427 2,919.6
(Garden Centre) (6,934) (644.2)
Total 31,427 2,919.6
There is a demised surface car park providing 164 spaces, giving a ratio McDonald's
of 1:192 sq ft. This is a good provision and would allow further extension
of the development, subject to planning.
The freehold demise comprises a site area of approximately 3.6 acres.
6.0 PLANNING 10.0 VAT
The principal planning consent for this development, dated 31 January 1989 The property has been elected for VAT and therefore VAT will be payable on the
permits any retail development. However, the permitted use of the development purchase price. However it is anticipated that the sale will be by way of a
is limited by a Section 52 Agreement. This restricts the use to the retail sale of ‘Transfer Of Going Concern’.
bulky goods, DIY, home improvement and those goods normally sold in a DIY
outlet, garden centre goods and materials, furniture, carpets and other floor
coverings, electrical goods, drapery goods, motor vehicle parts and accessories
and bicycles. 11.0 PROPOSITION
On the basis of the vendors making good the passing rent to the fixed uplift
level of £299,374 per annum, offers are invited at a price in the order of £4.440
million, subject to contract. A purchase at this level would give the purchaser a
7.0 TENURE net initial yield of 6.375%, after allowing for purchaser’s costs at 5.7625%.
Freehold.
8.0 TENANCY
The property is singularly let to Homebase Ltd on an existing plus a reversionary
lease, both on full repairing and insuring terms. The reversionary lease expires
on 24 June 2027, hence giving over 19 years unexpired.
The rent passing is £275,000 per annum and there is a fixed rental uplift on 29
12.0 CONTACTS FOR FURTHER INFORMATION
September 2009 to £299,374 per annum (£9.53 per sq ft). It is proposed that the
vendor will make good the passing rent to the fixed uplift level. The next open Paul Wilkinson Drew Moore
market upwards only rent review is at 29 September 2014 and 5 yearly thereafter. Wilkinson Williams Wilkinson Williams
Mellier House Mellier House
26a Albemarle Street 26a Albemarle Street
London W1S 4HY London W1S 4HY
9.0 TENANT’S COVENANT Tel: 020 7317 3799 Tel: 020 7317 3789
Fax: 020 7495 5432 Fax: 020 7495 5432
Homebase are the second largest Do-It-yourself retailers in the UK and Ireland, with over 300
E-mail: p.wilkinson@wilkinsonwilliams.co.uk E-mail: d.moore@wilkinsonwilliams.co.uk
stores. Homebase is part of the Home Retail Group which also incorporates retailers’ Argos.
The tenant company accounts are summarised below:
www.wilkinsonwilliams.co.uk
Tenant Company Accounts Turnover Pre-Tax Profit Net Worth D&B Rating
(year ending) (000’s) (000’s) (000’s)
Homebase Ltd 03/03/2007 £1,508,548 £30,604 £552,951 5A1
28/02/2006 £1,458,984 (£17,342) £545,699HOMEBASE, HYNDBURN ROAD,
ACCRINGTON, BB5 4AH
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 convenience of identification only and although believed to be correct, their accuracy is not guaranteed
and they do not form part of any contract.
Designed and Produced by CW Advertising. 01282 858200. April 2008.You can also read
