COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW

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COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
COYPOOL RETAIL PARK
PLYMOUTH, PL7 4TB
HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
KEY INVESTMENT CRITERIA
n	Plymouth ranks 1st in the UK PMA
   competition index and has the highest
   spend retention of any retail centre in
   the UK.
  WAULT of 9.6 years to expiry, no breaks.
n	
n	Prominently situated at the Junction of the
   A38 and Plymouth road, the principal
   route into the city centre.
n	Retail warehouse units let to ScS &
   Oak Furniture Land on new leases.
n	Drive Thru unit let to McDonald’s on a
   reversionary lease until 2031.
  Freehold.
n	
  McDonald’s Drive Thru reflects a low
n	
  passing rent of £28.23 psf.

We are seeking offers in excess of £6,720,000,
subject to contract and exclusive of VAT.

A purchase at this level will reflect the following
attractive yield profile:
Net Initial Yield       7.47%
Equivalent Yield        7.69%
Reversionary Yield      7.73%

(after allowing for purchaser’s costs of 6.53%).
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
M5             A38
                                                                                                                                                             CARDIFF                                                        BATH          A350
                                                                                                                                                                                                 BRISTOL
                                                                                                                                                                       WESTON-SUPER-MARE                                         A36

                                                                                         BRISTOL CHANNEL                                                                                                           A37
                                                                                                                              A39                                                                                         A361
                                                                                                                                             MINEHEAD                             M5                                                           A36
                                                                                                                                                                                             GLASTONBURY
                                                                                                                                           EXMOOR
                                                                                                                                                                          BRIDGE WATER           A361

LOCATION
                                                                                                                                        NATIONAL PARK
                                                                                                                                                                                                                 A37
                                                                                                         BARNSTAPLE                                                                                                      A303

                                                                                                                                                                        TAUNTON                                                         A350
                                                                                                                                  A361
Plymouth is located on the south coast of                                                      A39                                                           WELLINGTON                                     YEOVIL
Devon, approximately 220 miles (382 km)                                                                                                                                        A303
                                                                                                                      A377
south west of London, 121 miles (194 km)                                                                   A386                                                                                                  A37
                                                                                                                                                                         A30
south of Bristol, 45 miles (72 km) south west                                     A39
                                                                                                                                                          M5
                                                                                                                                                                                                                                       A354

of Exeter and 55 miles (88 km) east of Truro.                                                                                                                                         A35
                                                                                                                   A30
                                                                                                                                                 EXETER   EXETER
                                                                                                                                                                                                                 DORCHESTER

Plymouth is located on the A38 dual                                                      LAUNCESTON                                                                                                               WEYMOUTH
                                                                                  A395                   A386                                           EXMOUTH
carriageway, which connects with the M5 at                                                                         DARTMOOR
                                                                                                                  NATIONAL PARK
                                                                                                                                                A380

Exeter and is the main thoroughfare to the                            A39
                                                                            A30
                                                                                               A388
south west.                                                                                                                       A38
                                                                                                                                                  TORQUAY
                                                                                                          A386                          A385
                                                NEWQUAY         A30                      A38
The city has a mainline railway station with                     A391
                                                                                                      PLYMOUTH
                                                                                                       PLYMOUTH                            DARTMOUTH
a journey time to Bristol (Temple Meads)
                                                        A39
of 2 hours and to London Paddington of                  TRURO
                                                                                                      PLYMOUTH

3 hours.
                                                  A39
                                                                                                       ENGLISH CHANNEL
                                                  FALMOUTH
                                   PENZANCE
Exeter International is the nearest major
airport approximately 48 miles (77 km) away.

Plymouth is home to the largest operational                                                                                                       CATCHMENT
naval base in Western Europe as well as
being an important commercial shipping                                                                                                            Plymouth has a primary catchment population of 471,000 people. PROMIS estimate
port. It is the largest conurbation on the                                                                                                        the shopping population of Plymouth to be 359,000 people, 21st of all 200 PROMIS
south coast and is the principal commercial                                                                                                       centres in this respect.
and administrative centre for Cornwall and
South Devon. There is a strong service-based                                                                                                      Plymouth is dominant within its catchment and is classified as a Regional Centre.
economy with major employers including                                                                                                            It is ranked 1st in the UK PMA competition Index and has the least competition of
Royal Mail, Land Registry, BBC and the                                                                                                            any retail centre in the UK. This is further evidenced by the closest competing retail
University of Plymouth.                                                                                                                           centres being Paignton (29 miles), Torquay (30 miles) and Exeter (45 miles). As a
                                                                                                                                                  result, spend retention is one of the highest in the UK at circa 93%.

                                                                                                                                                  Consumer spending in Plymouth is boosted by tourism and the student population,

“Plymouth ranks                                                                                                                                  with an estimated 11.8 million domestic and foreign visitors to the city annually,
                                                                                                                                                  contributing approximately £360 million to the city’s economy. In addition,
  1st in the UK PMA                                                                                                                               Plymouth has a student population of approximately 60,000 which is the fifth
                                                                                                                                                  largest in the country and is estimated to contribute £100m to the city’s retail
  Competition Index”                                                                                                                              economy annually.
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
SITUATION
The subject property forms part of Coypool
Retail Park which is made up of three separate
retail warehouse clusters, located approximately
3 miles north east of the City Centre.

Coypool Road is close to the junction of the
A38 (also known as the Devon Expressway) and
Plymouth Road, the two principal roads into the
City Centre from the East.

Coypool Retail Park is one of Plymouth’s
principal retail warehouse destinations with
no current voids. Other occupiers at Coypool
Road include Harvey’s, Bensons for Beds, Jollyes

                                                                                                                                            TRIUM

                                                                                                                                                                   WOOD
and B&M. The former B&Q store is currently
being redeveloped for occupation by Furniture

                                                                                                           COYP

                                                                                                                                                                       FORD C
                                                                                                                                              PH
                                                                                                                                                A
World, Dreams and HBH Woolacott (Electrical

                                                                             CO

                                                                                                                                                    LC
                                                                                                               OOL

                                                                                                                                                      RES
                                                                              YPO
Superstore).

                                                                                                                                                                         .   L
                                                                                  O

                                                                                                                   RD.
                                                                                  L RD
The subject property is located on the entrance

                                                                                      .
into Coypool Retail Park and benefits from
maximum prominence to Plymouth Road.                                                                 COYPOOL
                                                                                                    RETAIL PARK

                                                                                                     COYPOOL R
                                                                                      COYPOOL RD.                                                           W
                                                                                                                                                                OO
                                                                                                                                                                  DF
                                                                                                                                                                       OR
                                                                                                              D.                                                          D
                                                                                                                                                                                 CR
                                                              .
                                                            RD

                                                                                                                                                                                      ES
“Coypool Retail
                                                                                                                                                                                           .
                                                          E
                                                        DG
                                                       RI

                                                                                                                                                            To be
                                                        B

  Park is one of
                                                     NG

                                                                                                                                                                   E

                                                                                                                                                                                  .
                                                   LO

                                                                                                                                                                AV
                                                                                                                                                             ND
  Plymouth’s principal                                              PLYMOUTH
                                                                             RD.
                                                                                                                                                       WO
                                                                                                                                                         OD
                                                                                                                                                           LA

  retail warehouse                                                PLYMOUTH RD
                                                                              .

                                                                                                                         PLY
  destinations with no                                                                                                      MO
                                                                                                                               UT
                                                                                                                                  H   RD
                                                                                                                                        .
  current voids.”
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
MARSH MILLS
                                                           PHASE 1

                                            MARSH MILLS
                                             PHASE 2

                                 PLYMOUTH
DEVON EXPRESSWAY                  GATEWAY

                    COYPOOL
                   RETAIL PARK
     To be
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
DESCRIPTION                                                  “ScS and Oak Furniture Land
The subject property consists of two units constructed         let on new leases, McDonald’s
in 1992 with a steel portal frame with brick elevations
steel cladding. Both Units A & B benefit from an internal      rent is reversionary.”
mezzanine built in 2004. A purpose built Drive Thru unit
was built two years later and has since been extended due
to the tenant over-trading from this location.

Units A & B benefit from a service yard to the rear with
dedicated access off Coypool Road.

There are approximately 138 car parking spaces in total,
a ratio of 1:241.

The total site area is 1.146 Ha / 2.832 acres.

PLANNING
Original planning consent was granted November 1992 for
the erection of “two non-food retail units with associated
parking, servicing arrangements and sewage treatment
plant”. Units A & B benefit from a wide bulky goods
planning consent which include the sale of DIY goods,
garden items, furniture, carpets and electrical items.

In April 1994 consent was granted for the erection of
a fast food restaurant and take away.

Further planning information available on request.

                          SERVICE
                           YARD

                                                             Plan for indicative purposes only.
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
TENANCIES & ACCOMMODATION
                                                                                                                Passing        Passing
 Address      Tenenat              Trading Fascia      Lease Start   Lease Expiry   Next Review   GIA (sq ft)   Rent (pa)      Rent (psf)   ERV (pa)      ERV (psf)   Comments

                                                                                                                                                                      Internal mezzanine extending 11,968 sq ft
 Unit A       A Share & Sons Ltd   ScS                 14/10/2016     13/10/2026     14/10/2021   15,067         £229,329.50       £15.22   £229,329.50      £15.22
                                                                                                                                                                      (not rentalised)*

                                                                                                                                                                      Internal mezzanine extending 12,327 sq ft
 Unit B       JB Global Ltd        Oak furnitureland   20/09/2016     03/06/2025     04/03/2020   15,626           £234,825        £15.03     £234,825       £15.03   (not rentalised). Rent at review to be capped at 2.5%
                                                                                                                                                                      per annum compounded.*

 Restaurant   McDonald’s                                                                                                                                              12 year reversionary lease from 29/09/2019.
                                   McDonald’s          29/09/2019     28/09/2031     29/09/2019   2,577             £72,750        £28.23      £90,000       £35.00
 Premises     Restaurants Ltd                                                                                                                                         Day 1 upward only rent review and 5 yearly thereafter.

 Total                                                                                            33,270        £536,904.50

*Rent free to be topped up by the vendor.

                                                                                                                                                          “WAULT of 9.6 years”

RENTAL COMMENTARY
The supply of retail warehouse accommodation                   DRIVE THRU UNIT
in Plymouth is limited for a city of its catchment             The most recent open market rental evidence in the
and consequently there have been few vacancies.                town are the pre-lettings on Plymouth Gateway to
Rents on Coypool Road have historically been at                Costa on 1,800 sq ft at £50 psf and to KFC on 4,083
a discount to both Marsh Mills and Friary Retail               sq ft at £35 psf. Costa also occupy 1,775 sq ft on
Park, offering affordable options to bulky goods               Phase 1 at Marsh Mills at a rent reflecting £40.85
retailers. The two retail warehouse units within               psf from November 2014.
the subject demise were both let within the last
6 months and are in our opinion rack rented, but               We are of the opinion that the McDonald’s unit has
offer excellent future rental growth prospects as              an estimated rental value of £90,000 per annum
demonstrated by the recent letting to Dreams.                  based on £35 psf.

The Dreams unit will extend to 5,000 sq ft, and
is being carved out of the former B&Q store, of
which the freehold has been acquired by a JV
between HBH Woolacott (Electrical Superstore)
and Furniture World for owner occupation.
Dreams have agreed a new 10 year lease at a rent
reflecting £18 psf net of 2 years at half rent.
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
CROWNHILL RETAIL PARK                                          WOOLWELL
     TAMERTON
Ownership:         FOLIOT
           Royal London Asset
Management.                                             A386
Tenants Include: B&Q, M&S Simply Food,
Pizza Hut and KFC.
                                                                                                                                             RETAIL WAREHOUSE PROVISION
                                                                                                                                             Coypool Retail Park is an established retail warehouse location,
                                                                                                                                             close to Marsh Mills and the newly consented Plymouth
                                                                                                                                             Gateway. The principal schemes in Plymouth are identified on
   WHITLEIGH                                      DERRIFORD                                                                                  the map and outlined below:
                                                                                               MARSH MILLS RETAIL PARK
                                                                                               Ownership: (Phases I&II) – Universities
                                                                                               Superannuation Scheme.                        MARSH MILLS RETAIL PARK
                                          A386
                                                                                               Tenants Include: Homebase, Wickes,
                                                                                               PC World, Catpetright, DFS, Furniture
                                                                                                                                             This two-phase scheme has a restricted bulky goods planning
                                                                                               Village, Halfords, Next Home,                 consent and is regarded as Plymouth’s principal bulky offering.
                                 CROWNHILL                                                     Bathstore.com, Carphone Warehouse             Phase I & II extends to 157,339 sq ft. Rents range from £20-28
                                                                                               and Costa.                                    psf (depending on size of unit) although due to no vacancies,
                                                                          LEIGHAM
                                                                                                                                             there have been no recent open market lettings.
         PENNYCROSS
                                HARTLEY     A38
                                                               EGGBUCKLAND                               COYPOOL                             PLYMOUTH GATEWAY
                                                                                                        RETAIL PARK
                                                                                                                                             Restricted bulky goods consent for 55,000 sq ft. We understand
                                                                                                                                             rents range from £22-25 psf on the larger units and £35-£50 psf
                          PEVERALL
              A386                                                                                                                           on the food outlets. The scheme is due to open in Spring 2018.
                                                                    CRABTREE                                                    PLYMPTON
                CENTRAL
                 PARK
                                                                                                                                             FRIARY RETAIL PARK

                                                                                           SALTRAM
                                                                                                                                             Located adjacent to the City Centre, this is an Open A1 non-
                                                                                            HOUSE                                            food park extending to circa 80,000 sq ft built in 1990 and
                                                                                                                                             subsequently redeveloped in part in 2013 and 2015. Rents on
                            PLYMOUTH
                                                                                                                                             the park range from £16-27.50 psf dependant on the size of
                                                                                                                                             the units.
                   A374                                                         SALTRAM
                                                                                 HOUSE

STONEHOUSE                               CATTLEDOWN                                                                                          CROWN HILL RETAIL PARK
                                                                                      BILLACOMBE
                                                                                                                                             A bulky good’s scheme located further north of Plymouth City
                                                                                                     PLYMOUTH GATEWAY                        Centre which extends to 134,238 sq ft.
FRIARY RETAIL PARK                                             LAIRA BRIDGE                          RETAIL PARK
Ownership: Plymouth City Council                               RETAIL PARK                           Ownership: Ediston Real Estate
(acquired from AXA in November                                 Ownership: Columbia
                                                                                                     (secured planning consent in August
2016 for £23.4 million / 6.7%).       MOUNT BATTEN             Threadneedle Investments.
                                                                                                     2016).
                                                                                                        ELBURTON
                                                                                                                                             LAIRA BRIDGE RETAIL PARK
Tenants Include: Dunelm, Pets at                               Tenants Include: PLYMSTOCK                                                    The scheme has Open A1 planning consent and extends
                                                                                                     Tenants Include: Pre-lets agreed with
Home, Poundland, Poundstretcher,                               Carpetright/Go-Outdoors.
                                                                                                     Mothercare, Wren Kitchens, Tapi         to 58,844 sq ft.
Smyths Toys, Hobbycraft and Costa.
                                                                                                     Carpets, Sofology, KFC and Costa.
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
COVENANT
JB GLOBAL LTD (05573571)                                       A SHARE & SONS LTD (00323778)                                    MCDONALD’S RESTAURANTS LTD (01002769)
Oak Furniture Land was founded in 2004 with an online          SCS was established in 1894 as a family owned furniture          McDonalds is the world’s largest chain of quick service
platform and now trades from 75 stores throughout the          store and has grown to 100 stores throughout the UK, with        restaurants, serving tens of millions of customers daily
UK. There are a further 25 stores planned for the next 2       36 concessions in the House of Fraser department store.          worldwide. There are over 1,200 stores in the UK alone with
years. Furthermore, there is planned expansion into the US     In January 2015, ScS Group Plc joined the London Stock           plans for a further 30 new stores per year, with the primary
this year moving from their current online platform to both    Exchange. The company released their half year results           vehicle for expansion being Drive Thru restaurants.
‘bricks and clicks’.                                           in January this year, with gross sales up 14.1% from the
                                                               previous year.

                     30/09/2015    20/09/2014    30/09/2013                         30/07/2016    25/07/2015      26/07/2014                          31/12/2015    31/12/2014    31/12/2013
                        (£000's)      (£000's)      (£000's)                           (£000's)      (£000's)        (£000's)                            (£000's)      (£000's)      (£000's)

Turnover                239,269       191,516       145,543    Turnover                317,305       276,734         258,206    Turnover                  89,566        87,383        87,333

Pre-tax Profit            6,506        11,032         7,095    Pre-tax Profit           11,736            4,488        5,000    Pre-tax Profit           304,122        48,958        37,871

Tangible Net Worth        8,750        14,250        11,869    Tangible Net Worth       36,426        33,312          25,089    Tangible Net Worth       109,269       302,087       253,129

D&B Rating                          3A 2                       D&B Rating                          5A 2                         D&B Rating                           5A 1
COYPOOL RETAIL PARK PLYMOUTH, PL7 4TB - HIGH YIELDING, WELL LET AND SECURE RETAIL WAREHOUSE INVESTMENT - GCW
TENURE                                                                                         EPC
The property is owned freehold.                                                                A full copy of EPC’s are available upon request.                                          A purchase at this level will reflect the
                                                                                                                                                                                         following attractive yield profile:
VAT                                                                                            PROPOSAL                                                                                  Net Initial Yield                           7.47%

It is understood the property is elected for                                                                                                                                             Equivalent Yield                            7.69%
                                                                                               We are seeking offers in excess of £6,720,000,
VAT and will be treated as a Transfer of a                                                     subject to contract and exclusive of VAT.                                                 Reversionary Yield                          7.73%
Going Concern.
                                                                                                                                                                                         (after allowing for purchaser’s costs of 6.53%).

FURTHER INFORMATION
For further information please contact:
                                                                                                                                                                                                                                               7-10 Chandos Street
Fiona Nichols                                       Oli Horton                                           Alex Matthews                                                                                                                           London W1G 9DQ

T: 020 7647 4809                                    T: 020 7647 4806                                     T: 020 7647 4827                                                                                                                           T: 020 7408 0030
M: 07817 676 763                                    M: 07788 695 859                                     M: 07776 209 571                                                                                                                          F: 020 7495 4248
fiona.nichols@gcw.co.uk                             oliver.horton@gcw.co.uk                              alex.matthews@gcw.co.uk                                                                                                                   www.gcw.co.uk

Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars
by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC376010. Registered office: 30 City Road, London EC1Y 2AB. GCW: April 2017.© Produced by Barbican Studio T: 020 7634 9573
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