MORRISONSTELFORD TELFORD, NEWDALE, LAWLEY DRIVE, TF3 5ES - PROMINENT FOODSTORE INVESTMENT WITH 5 YEARLY RPI LINKED REVIEWS (1-3% PER ANNUM) ...
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TELFORD, NEWDALE, LAWLEY DRIVE, TF3 5ES MORRISONSTELFORD PROMINENT FOODSTORE INVESTMENT WITH 5 YEARLY RPI LINKED REVIEWS (1-3% PER ANNUM)
INVESTMENT OPPORTUNITY PROPOSAL
• Strategically situated in Telford, to the west of the • Let to the 5A1 covenant of WM Morrison
town centre, with direct access to the M54. Supermarkets Plc until 29th November 2037. Offers sought in excess of
• Prominent location at the heart of Telford’s new
Lawley Village Suburb, with an extensive and
• 17.86 years unexpired (12.86 years to break).
£14,350,000
growing catchment population. • Current passing rent of £758,885 per annum
Subject to contract and exclusive of VAT
reflecting £17.88 per sq ft.
• A modern, purpose built food store of Net Initial Yield 4.95%
42,434 sq ft, with 220 surface car parking spaces • 5 yearly RPI linked rent reviews with a collar and
(a ratio of 1:193 sq ft). cap of 1% - 3% per annum compounded. Running Yield – 2022 5.68%
• Site area of 3.7 acres. • Freehold. Running Yield – 2027 6.58%
Yields are net of purchaser’s costs of 6.73%
MORRISONS Telford | 2
CR
SHREWSBURY
SITUATION KING’S LYNN
The property is well located 1.8 miles (2.9 km), to the west
TELFORD M6 of Telford town centre, within the Lawley Village suburb.
M64
NOR
The store is accessed off Gresham Drive and anchors
WOLVERHAMPTON M42 Lawley Square, the central commercial hub of Lawley
PETERBOROUGH
Village. Other tenants in occupation within Lawley
Square include Anytime Fitness, Greggs, Subway and
M69 Papa Johns.
BIRMINGHAM A1 (M)
COVENTRY
M45
M5 BURY
WORCESTER WARWICK
ST EDMUNDS
CAMBRIDGE
HEREFORD
M1 IPSWIC
A1 (M)
LOCATION M40
M11
Telford is a large town in the county of Shropshire, located 30 miles
STEVENAGE
COLCHESTER
(48 km) west of Birmingham and 13 miles (21 km) east of Shrewsbury. LUTON
GLOUCESTER
ST ALBANS
OXFORD
M5
The town is well Telford Central railway Birmingham
situated in terms of station benefits from International Airport is M25
road connections, regular services located 47 miles (75.6
being served by SWINDON
to Birmingham km) to the south east,
Junctions 4, 5, 6 and New Street, with a a 50-minute drive time. LONDON
7 of the M54, which fastest journey time
connects with the M6 of approximately
motorway providing 33 minutes. London M4 READING
access to Birmingham Euston is also
BRISTOL
in the east and the accessible via a direct
wider motorway train with a journey
network. BATH time of circa 2 hours
R-MARE 20 minutes.
WOKING M25
BASINGSTOKE
M3
M23 MORRISONS Telford | 3
LAWLEY VILLAGE
Telford is undergoing significant expansion
through the development of a 264-acre mixed
use scheme known as Lawley Village. The J6
development, which began in 2007, is due to M54
complete in 2028 and will comprise a total of
3,550 new homes, with 2,000 having already
been built. The masterplan is being completed B A
in 11 phases and will be arranged surrounding A
PHASE 8
the Lawley Square commercial centre, anchored
A
by the subject property.
C
LAWLEY DRIVE
LAWLEY SQUARE PHASE 7
PHASE 5
Lawley Square forms the commercial centre of Works have commenced on phase 7, which will
Completed
Lawley Village and provides a range of amenities PHASE 4
A B C provide a total of 267 homes.
including a nursery, Morrisons supermarket (the Under Construction
subject property), Marston’s pub and various
accompanying shops and food outlets. Planned
B PHASE 8
PHASE 3 9 Work is currently underway, with homes being
PHASE 9
A C developed by David Wilson Homes, Persimmon
Telford
and Taylor Wimpey.
PHASE 1A Town Centre
Lawley West Centre Way
Square
Old
Lawley
PHASE 10
Village LAWLEY DRIVE
DAWLEY RD
C
A PHASE 6 B
PHASE 1
PHASE 7
Now complete and encompass schemes at PHASE 11
Abrahams Way, The Forge, Clover Mead and
PHASE 1B
Wenlock Square.
PHASE 10 / 11
DAWLEY RD The final two phases will comprise a total of 940
PHASE 3 / 4 / 6
houses, with construction due to commence in
Phase 3, 4 and 6 have completed and include
2020 for phase 10 and 2022 for phase 11.
neighborhoods known as Webbs Meadow, Coppice
Grove, Forest Glen and Woodland View.
Dawley The masterplan is being built by a consortium
PHASE 5 / 9 WELLINGTON RD Town Centre of house builders that form the Lawley Village
Phase 5 and 9 will be developed simultaneously, Developer Group (LVDG), including Barratt
providing a total of approximately 400 homes with Homes, Charles Church, David Wilson Homes,
works having started in 2018. Persimmon Homes and Taylor Wimpey.
MORRISONS Telford | 4
CATCHMENT & FOODSTORE COMPETITION
DEMOGRAPHICS
Telford was originally designated a New Town in 1963 and now has a
population of 199,000 with a total catchment population estimated at
406,493 people (CACI).
A442
Telford is the largest town in Shropshire and forecast to see above
average population growth from 2018 - 2023; there are 26,500 new 1
M54
houses planned which will increase the number of people who live and
work in the borough by 19%. 2
TELFORD
The area predominantly comprises family households, with 40% of
3
the population characterised as ‘Aspiring Homemakers’ by Experian- A5223
A442
“Younger households who have often only recently set up home. They
usually own their homes in private suburbs, which they have chosen to fit
their budget”.
A4169
Major employers in Telford include GKN, Ricoh, Epson, EDS, Fujitsu, Cap
Gemini, Makita, Siemens, AGA Rayburn, Heinz, Lyreco, Maxell and HMRC.
The property benefits from an extensive catchment, with 172,121 people 5 minute Drivetime
living within a 15-minute drive:
10 minute Drivetime
Broseley
Drive Time Population Households The store benefits from very limited competition within a 5 minute drivetime, with a loyal,
increasing catchment coming from the 3,550 proposed new homes in Lawley Village:
5 minutes 18,530 7,225 1 Tesco Extra, Wrekin Retail Park Tesco, Madeley
TF1 2DE TF7 5AB
(61,971 sq ft net sales) (29,825 sq ft net sales)
10 minutes 109,649 44,421
The following stores (>10,00 sq ft) are also Morrison’s, Wellington
within a 10 minute drivetime: TF1 1RP
15 minutes 172,121 69,681 (47,613 sq ft net sales)
2 Sainsbury’s, Telford Forge Retail Park
TF3 4AG Aldi, The Gateway
“Telford is the largest town in (41,263 sq ft net sales) TF2 9NH
(11,579 sq ft net sales)
Shropshire and is expected to see 3 ASDA, Malinsgate
above average population growth TF3 4HZ
for the period to 2023.” (47,768 sq ft net sales)
MORRISONS Telford | 5
DESCRIPTION SITE AREA
The property, was constructed in 2012 and comprises The site totals approximately 1.495 ha (3.694 acres),
a modern, purpose built foodstore, together with with a site coverage of c. 26%.
customer café, surface car park and separate
rear servicing.
The main customer access to the store is via Gresham PLANNING
Drive, off West Centre Way (B5072). The rear service The asset benefits from planning consent for use within
yard is also accessed from Gresham Drive and there is a Class A1 together with uses within ancillary uses and car
further pedestrian access from Birchfield Way, through parking, and if required an in-store bakery, customer
M Cafe. café and other ancillary uses falling within A2 and A3.
The store’s size enables it to carry Morrison’s full food
offer including Fish and Meat Counters, as well as a
Morrison’s Café, which is situated on the ground floor of TENURE
the adjoining residential block. The property is held freehold (Title Number SL219854).
The property benefits from 220 car parking spaces, The residential apartments at ground, first and second
providing a good parking ratio of 1:193 sq ft. floors (including their corresponding car parking
spaces) and retail units 10-12 at ground floor level above
Store opening hours:
and adjacent to the Morrisons Café are sold off on
long leasehold interests for 999 years at a peppercorn
Monday – Saturday: 7.00am – 10.00pm (outlined in blue on the plan below).
Sunday: 10.00am – 4.00pm
ACCOMMODATION
We understand that the property benefits from the
Title plan for indicative purposes only.
following floor areas:
Description Area (sq ft) Area (sq m)
GIA 42,434 3,942.3
MORRISONS Telford | 6
TENANCY COVENANT INFORMATION
The property is let to WM Morrison Supermarkets
Plc for a term of 25 years, expiring 29th
November 2037 – 17.86 years unexpired. The Wm Morrison Supermarkets Plc
tenant benefits from a break option at the end of Company Number: 00358949
the 20th year (30th November 2032) subject to
6 months’ notice (12.86 years term certain). WM Morrison Supermarkets Plc (company number 00358949), trading
as Morrisons, is the fourth largest food retailer in the UK. The company
The current passing rent is £758,885 per operates from over 500 stores, employing 132,000 people nationwide,
annum which reflects £17.88 psf. and serves 11 million customers each week.
The rent is subject to 5 yearly rent reviews Morrisons is one of the ‘Big Four’ supermarket chains dominating the UK’s
linked to RPI with a collar and cap of 1% and grocery market, with a current market share of 10.3% (as at 29/12/2019).
3% per annum, with the next review being
November 2022. Morrisons recently posted it’s 3rd consecutive year of profits and sales
growth; the company’s success consistent with their business strategy to
The lease is also subject to a provision for the focus on trading performance of their mid-sized supermarket formats.
tenant to pay a proportion of service charge in This strategy was launched shortly after the appointment of Morrisons’
relation to maintenance of the grounds within current CEO, David Potts, in February 2015. In February 2016, Morrisons
the commercial area of the surrounding estate. announced an agreement to wholesale to Amazon, which has made
Morrisons products available online via Amazon Prime Now, Amazon
Pantry and Ocado.
The covenant is one of the strongest in the supermarket sector with
a Dun & Bradstreet rating of 5A1 representing a ‘minimum risk of
business failure’.
A summary of the last three years of accounts is outlined below:
26/01/2019 27/01/2018 28/01/2017
Year Ending
£’000 £’000 £’000
Sales Turnover 17,735,000 17,262,000 16,317,000
Pre-Tax Profit 320,000 380,000 325,000
Net Worth 4,227,000 4,117,000 3,618,000
MORRISONS Telford | 7
VAT
The property has been elected for VAT purposes and
as such it is expected that the investment sale will be
treated as a Transfer of Going Concern (TOGC).
IDENTITY CHECKS
In order to comply with anti-money laundering
legislation, the successful purchaser will be required to
provide certain identification documents. The required
documents will be confirmed to and requested from the
successful purchaser at the relevant time.
EPC
A copy of the Energy Performance Certificate is
available on request.
PROPOSAL
Offers sought in excess of
£14,350,000
Subject to contract and exclusive of VAT
Net Initial Yield 4.95%
Running Yield – 2022 5.68%
Running Yield – 2027 6.58%
Yields are net of purchaser’s costs of 6.73%
MORRISONS Telford | 8
FURTHER
INFORMATION
Tom Edson
020 7344 6554
07766 657 478
Tom.edson@colliers.com
Hannah Greenland
020 7344 6559
07860 180 314
Hannah.greenland@colliers.com
Colliers International
50 George Street,
London, W1U 7GA
MISREPRESENTATION ACT DISCLAIMER
Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers
or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending
Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by
inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority
to make any representation or warranty whatsoever in relation to this property. October 2019 .
Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561.
Registered office: 50 George Street, London W1U 7GA.
Designed and produced by Parer Creative. Tel 07702 123482.
MORRISONS Telford | 9
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