ROYAL LEAMINGTON SPA PRIME OPEN A1 RETAIL PARK INVESTMENT - ENTER - WILKINSON WILLIAMS
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Prime Open A1 Retail Park Investment Royal Leamington Spa The Shires Retail Park TACHBROOK PARK DRIVE CV34 6RH ENTER
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
investment summary
• Royal Leamington Spa is well located benefiting from • Asset management potential giving the opportunity to
excellent road links and easy access to the M40 increase the rental tone and enhance the tenant mix
• he town is one of the most affluent in the UK, ranked
T • Prime and rare retail warehouse investment opportunity
14th by PMA
• Open A1 non-food planning consent
• he subject property is situated in the main retail
T
warehouse destination in the town, opposite
• Retail warehouse supply is limited in Royal Leamington Spa
Leamington Spa Shopping Park and a 110,600 sq ft • 9,786 sq ft of retail warehouse accommodation let to the
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Sainsbury's foodstore 5A1 covenants of DSG Retail Ltd and Childrens World Ltd
trading as Currys PC World and Mothercare respectively
• Average income weighted unexpired lease term of
6.1 years • e are seeking offers in excess of £12,470,000
W
(Twelve Million, Four Hundred and Seventy Thousand
• 692,524 per annum rent averaging £23.25 per sq ft,
£
Pounds), subject to contract and exclusive of VAT. A
significantly less than the rental tone on Leamington Spa
purchase at this level reflects an attractive net initial yield
Shopping Park
of 5.25%, assuming purchaser’s costs of 5.80%
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
Location
A444
A460 A511 A6
A51 A42
A38
M6
Royal Leamington Spa is a prosperous town in Warwickshire, 9 miles south of A449
M1 A50
Coventry and 29 miles south east of Central Birmingham. The town benefits M6 Toll
M54 TAMEWORTH
from excellent road links being close to Junctions 13–15 of the M40. The M6 A5
M42
A444
LEICESTER
junction connecting the M40 and M42 is located 20 miles to the north west A41
M6 A461
M6 Toll
A452
and provides access to the wider national motorway network including the M5 WALSALL SUTTON A5
COALFIELD
and M6. The A445 links the town to Coventry and also to Rugby via the A45. WOLVERHAMPTON
M69
Leamington Spa benefits from regular trains to London Marylebone with a A41 A5
journey time of just 1 hour 16 minutes, making it a popular commuter town.
A491
NUNEATON
M6
M1
M5
A444
BIRMINGHAM
A5
M6
catchment and DEMOGRAPHICS A449 A456
A41
A45
A38 M6
COVENTRY
M42
A491 M5 A34 A4177
A441 A5
Royal Leamington Spa is one of the most affluent towns in the UK, ranking A435
RUGBY M1
14th out of the top 200 PMA Retail Centres. 35% of the adult population is A448 M42 A46 A45
categorised within the top AB social group, compared with the UK average KENILWORTH M45
of 22%. Conversely only 17% are within the least affluent DE social groups A448 REDDITCH M40 A4177 M1
compared with the UK average of 26%. A449
A435
ROYAL A423 A45
WARWICK LEAMINGTON
M5 DAVENTRY
Average gross weekly wages in 2014 were £480 in Leamington Spa, far SPA
A425
A441
in excess of the GB average of £420. In addition, the claimant rate in A46
ALCESTER
September 2015 was just 0.6% compared with the GB average of 1.6%, A422
A46
ranking the town 12th in the country for low unemployment levels. WORCESTER A422
A429
STRATFORD-UPON-AVON
Leamington Spa has a catchment population of 180,000 people and a A46
A423
shopping population of 117,000 people. CACI estimate that there are 98,963 A44 M40
people living within a 10 minute drive time of the subject property, increasing
M5
to 243,291 people within a 20 minute drive time. The town is one of the largest EVESHAM
A429
within Warwickshire.
A46 A44
BANBURY
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
situation
The Shires Retail Park is situated in a prominent position off the
A452 roundabout on Tachbrook Park Drive. Opposite is Leamington A46
Shopping Park, the only fashion park in the town and a 110,600 sq ft A429
Sainsbury's, the dominant foodstore in Leamington Spa.
A4177 GUYS CLIFFE A429
Customer access to the park is provided by a roundabout junction on
A452 ROYAL
Tachbrook Park Drive, shared with both Leamington Shopping Park WARWICK LEAMINGTON
and the Sainsbury’s opposite. The town centre is located approximately
0.75 miles north east. SPA A425
A425
THE SYDENHAM
A46
SHIRES
BRIDGE END RETAIL
PARK A
A452
A4189 LEAMINGTON SPA
SHOPPING PARK
HEATHCOTE
A429 A425
A452
15
14 A452
A46
A429
M40
A452
13
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
Retail Warehousing in Royal Leamington Spa A452
Royal Leamington Spa has a very limited supply of retail warehousing,
A452
estimated at just 255,000 sq ft of floorspace by PMA. Most key goods
LEAM
categories are under-represented in terms of provision per household.
Therefore a number of national retailers are not represented in the town,including MYTON ROAD
RETAIL PARK
TK Maxx, Matalan, Sports Direct, JD Sports, B&Q, Wickes, Wren Kitchens,
Oak Furnitureland, Home Bargains, B&M, Dunelm, Smyths Toys and Hobbycraft. A425
CK WAY
ARWI
OLD W
The dominant scheme in the town is Leamington Spa Shopping Park,
totalling 135,000 sq ft. Retailers here include Debenhams, Outfit, Boots,
MYTON ROAD
Carpetright, Halfords, Greggs, Frankie & Benny’s, Argos, Next and New A425
Look. Rents on the scheme are between £30–35 per sq ft. There are plans
to further extend the scheme with up to 15,000 sq ft of bulky goods or
A452
A3 space, subject to planning. Anchoring the scheme is a Sainsbury's THE SHIRES
foodstore of 110,600 sq ft, with a petrol filling station. RETAIL PARK
The only other retail warehouse provision is on Myton Road, where there is
a 3 unit scheme occupied by Pets at Home, Dreams and Bensons for Beds. LEAMINGTON SPA
SHOPPING PARK
Homebase have a 31,450 sq ft unit adjacent to this.
Q
UE
EN
SW
TAC
AY
AY
W
HBRO
PA
RO
OK PARK DRIV
EU
A452
E
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
description
The property comprises two standalone units, positioned on accommodation. The Currys PC World unit has been fitted out Service access is separate to customer access and egress,
opposite sides of the central car park, benefiting from good to include their 3 facias; Currys, PC World and Dixons Carphone, and is located to the rear of the scheme via Queensway,
visibility from the road. The units are of standard construction as well as their Know How Centre. The unit totals 14,955 sq ft which also provides access to the Aldi unit to the rear of
with a metal frame and brickwork cladding. and benefits from an extensive trading mezzanine floor. the scheme. Each unit benefits from a right to use its own
separate service yard, therefore any alterations to either
Internally the units are fitted out to the individual tenants' The central car park provides 148 spaces equating to a unit would not affect the other.
specification. The Mothercare unit totals 14,833 sq ft and low ratio of 1:201 sq ft, giving the potential to develop
benefits from a mezzanine floor used for storage and staff on the car park in the future.
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
Tenure 54
38 El Sub Sta
Cycle Path
Path and
46
67
The site Freehold and is held under 2 tiles,
65
34
2
4
Cy
cle
delineated in red and blue.
W
Y
ay
92
K WA 63
90 LIN
88
76
El Sub
Sta
Shires Gate Retail
the Shires
Park
TA
Retail Park
CH
B RO
O KP
AR
KD
RIV
E
El Sub Sta
ETL
Queensway Court
ED and Ward Bdy
g
l Filin
9
Petro tion
17
to
1
Sta
Posts
Def
TACH
Unit G
BRO
AY
OK
El Sub Sta
A W
PARK
OP
El
R
EU
Sub Sta
DRIV
E
Leamington Spa
62.5m
Track
shopping park
Leamington
Shopping Park
Bowling Alley
a
18
TCB
Unit A De Luca
House
Tks Gurdwara
Temple
El Sub Sta
Sikh Cultural and Sports Comm
0m 50m 100m 150m
Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:2481
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
tenancy
The property is let on full repairing and insuring leases with an average income weighted unexpired lease term in excess of 6.1 years.
GIA Lease Lease Lease Next Rent Rent Rent
Unit Tenant Comments
(sq ft) Start Term Expiry Review (per annum) (per ft2)
DSG Retail Ltd t/a Reversionary lease agreed in 2010
Unit 1 14,953 29/09/1994 30 28/09/2024 29/09/2019 £347,657 £23.25
Currys PC World from 29/09/2019 to 28/09/2024
Childrens World Ltd
Unit 2 14,833 29/09/1994 25 28/09/2019 – £344,867 £23.25
t/a Mothercare
Total 29,786 £692,524 £23.25
Planning
The property benefits from an open A1 non-food
consent. Copies of the planning consent are available
on request.
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
Asset Management Opportunities Tenants' Covenants
Currys PC World are trading well here as demonstrated by In August 2014 DSG Retail merged with Carphone Warehouse to become
them agreeing in 2010, a reversionary lease from 2019 Dixons Carphone plc. The company is now Europe’s leading specialist electrical
expiring in September 2024. They have also incorporated their and telecommunications retailer and services company, employing over
3 operating facias into the store; Currys, PC World and Carphone Warehouse, 40,000 people across 9 countries. The company has almost 1,300 stores across
evidencing their commitment to this location. the UK and Ireland. Dixons Carphone plc recently announced its plans to shut
154 stores across its portfolio and planned investment in its remaining stores.
Mothercare have a lease expiry in September 2019. We understand that
The store closures will be in towns where there is an excess of more than
they are keen to refit this unit within the next two years. However there is
one store, and mainly affects the Carphone Warehouse stores. The subject
the opportunity to explore a downsize with them, subdividing their unit
property is unaffected.
into two units of c. 7,400 sq ft. Due to the tight retail warehouse supply in
the town, there are many out of town tenants without representation here. The lease on the subject property is to DSG Retail Ltd, a 5A1 D&B rated
Consequently there has been interest from a number of national retailers covenant with a sales turnover of £4.314 billion in the year end 02/05/2015
in a downsize of this unit. We believe rents of circa £28 per sq ft could be up from £4.078 billion for the year ending 30/04/2014. The companies
achieved, allowing the rental tone across the scheme to be increased, whilst turnover and net worth were also higher year on year at £116.8 million and
still offering retailers a significant discount from Leamington Spa Shopping £395.9 million compared with £94.1 million and £377.5 million respectively,
Park where the rental tone is £30–35 per sq ft. demonstrating the success of the merger with Carphone Warehouse.
The large car park also gives the opportunity to develop a pod unit here,
Mothercare was first set up in 1961 and is now a global retailer for parents
subject to planning. Having an A3 retailer in particular would increase
and young children, operating from c.1,500 stores across 60 countries with
customer dwell time and enhance the tenant mix.
sales in excess of £1.2 billion. The UK comprises £458.1 million of these sales
Further information is available on request. (March 2015). They operate from 79 in-town stores and 96 out of town stores
across the UK. Mothercare also own The Early Learning Centre which is often
found in many of the Mothercare stores.
Children’s World Ltd is the holding company for Mothercare and the lease on
unit 2 is under that name. Children’s World Ltd benefits from a 5A1 covenant
and a net worth as at 29/03/2015 of £63.7 million.
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The Shires Retail Park Royal Leamington Spa
Prime Open A1 Retail Park Investment Previous next
EPC VAT Proposal
Unit 1, occupied by DSG, has a D 84 rating. The property has been elected for VAT and it is anticipated We are seeking offers in excess of £12,470,000 (Twelve
Unit 2, occupied by Mothercare, has a B 39 rating. that the transaction will be treated as a TOGC. Million, Four Hundred and Seventy Thousand Pounds),
subject to contract and exclusive of VAT. A purchase at
Copies of the EPC's are available on request. this level reflects an attractive net initial yield of 5.25%,
assuming purchaser’s costs of 5.80%.
FURTHER INFORMATION
Wilkinson Williams
Heathcoat House
20 Savile Row
London W1S 3PR
Ellie Kirkby
T: 020 7317 3790
M: 07764 241898
E: e.kirkby@wilkinsonwilliams.co.uk
Paul Wilkinson
T: 020 7317 3799
M: 07770 585313
E: p.wilkinson@wilkinsonwilliams.co.uk
MISREPRESENTATION NOTICE
Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: These particulars are prepared for the guidance only of prospective purchasers. www.wilkinsonwilliams.co.uk
They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract.
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. 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. 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 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.
Any areas, measurements or distances referred to herein are approximate only.
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. 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. February 2016You can also read
