SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT, WEST YORKSHIRE, WF8 2LN - HIGH YIELDING REVERSIONARY RETAIL WAREHOUSE INVESTMENT OPPORTUNITY - Allsop
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SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT, WEST YORKSHIRE, WF8 2LN HIGH YIELDING REVERSIONARY RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
Outline for indicative purposes only. Investment Considerations ■■ Located to the north east of Pontefract ■■ The property is fully let and comprises ■■ In total the investment produces ■■ Open A1 with minor restrictions town centre, near Junction 33 of the M62 5 retail warehouse units totalling £638,135 per annum, which equates (further information available on request) motorway c.68,000 sq ft of accommodation to a low average rent of £9.38 per sq ft ■■ Offers are sought in the region of ■■ Virtual Freehold (999 years). The long surrounding a large shared car park ■■ The scheme benefits from part consisting £8,000,000 (Eight Million Pounds), leaseholder has a pre-emption right to ■■ Strong tenant line-up let to 5 tenants with of 3 sub-10,000 sq ft units allowing a large subject to contract and exclusive of VAT. buy the Freehold. 76% of the contracted income coming degree of flexibility A purchase at this level would reflect a net ■■ The property benefits from being located from strong covenants of B&M and ■■ Asset management potential including initial yield of 7.50% based on the current within the same scheme as an Aldi Poundstretcher immediately acting on the JYSK rent rent passing and a reversionary yield of supermarket who have demonstrated their ■■ WAULT 8.06 years review where recent evidence within the 8.00% after allowing for purchaser’s costs commitment to the location by recently scheme suggests significant rental uplift of 6.67%. expanding their store is possible
SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT WF8 2LN HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
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Harrogate A1(M)
Ilkley YORK M62
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FERRBYBRIDGE
Keighley
Leeds/
Bradford
A1(M) LOCATION SITUATION
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LEEDS Pontefract is a historic market town in the County of West South Baileygate Retail Park is located
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Burnley
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BRADFORD M1
Yorkshire. The town has a primary catchment of 81,000 on the eastern periphery of Pontefract
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M65
A162
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A D M62
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ACKBURN M606
PONTEFRACT HULL people and a resident population of approximately 300,000 fronting the A645 thoroughfare
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Halifax RACE COURSE
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A6
people within a 15 minute drive time. connecting the town to J33 of the M62
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J33
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M62 Pontefract EY Motorway. The park is a 5 minute walk
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PONTEFRACT Monkhill IN
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Pontefract is located approximately 12.8 km (8 miles) east
Pontefract TT
M66
M62
HUDDERSFIELD Park N
O
of Wakefield, 19.3 km (12 miles) south east of Leeds and is north east of Pontefract Baghill train
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61 Rochdale M1
SCUNTHORPE equidistant between York and Sheffield, 32.2 km (20 miles) station. The main town centre is 0.65 km
Bolton
A162
M18 M180 M181
Humberside
Airport
GRIMSBY from both. The town benefits from its excellent strategic (0.4 miles) to the south west and Parkside
n Barnsley PONTEFRACT
Oldham
M60
A1(M)
Doncaster Pontefract BA location close to Junction 32A, which links the M62 and Retail Park, the other retail warehousing in
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MANCHESTER PAR
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LA A1(M) A1(M) as well as Junctions 31,32 and 33 of the M62. the town, is located 2.2 km (1.4 miles) to
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Pontefract NE the west.
M62
M60 M67
Glossop
M18
9)
Baghill
Harewood
The town also benefits from good public transport links.
Rotherham A1(M)
(A
63 TOWN Park
Pontefract, Monkhill and Baghill stations provide regular rail Also part of the retail park (outside
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services to Leeds and surrounding local centres. Pontefract our ownership) is a large detached Aldi
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Supermarket with a large car park and
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is also 24.1 km (15 miles) from Leeds Bradford Airport.
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International
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and Plumb Centre.
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Buxton O
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Chesterfield GROVE TOWN
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Skegness
SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT WF8 2LN HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
DESCRIPTION
The property comprises a 5 unit retail park forming the majority part of
South Baileygate Food and Non-Food discount Retail Park. The units
surround a shared car park containing 167 spaces. There is a service
yard to the rear of the property which is accessed via its own slip road.
The units are of steel portal frame construction with solid concrete
floors and are built of brick/blockwork and profiled steel cladding.
Internally, the units are divided to provide retail, stock and office/staff
facilities. Each unit has rear loading facilities.
CATCHMENT AND DEMOGRAPHICS
Pontefract has a total retail catchment population of 81,000, in line with the PMA
average for similar sized towns and an estimated shopping population of 26,000.
Pontefract is projected to see close to average growth in population over
2016 – 2021.
The level of car ownership in Pontefract is broadly average with around 75%
of households owning at least one car and 66% classify themselves as owner
occupiers which is in line with the national average.
Overall 54% of total employment is now in the service sector, with the financial
and business services sectors accounting for 7.4% of this. The manufacturing
sector now accounts for 11% of total employment with 24.5% in the retail and
leisure sector.
Total in-store comparison retail expenditure in 2016 stood at £201,000,000.
SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT WF8 2LN HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
M62
J32
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HI
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Sub Sta
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NOR
All Saints' Church
RO
18
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28.3m
D
A6
RI
DW
39
YB
RR
D (A645)
Pontefract R OA
EY
FE
GL
Monkhill TIN
T
4
O
PARK ROAD N
K
RETAIL PARK
Depot SOUTH BAILEYGATE
Pontefract RETAIL PARK
Race Course
Depot
PONTEFRACT
Broomcroft
Grenton
South Baileygate Retail Park
Pontefract BA
NE GH
K LA Tanshelf
PAR IL
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63
1
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9
Pontefract NE
Baghill
9) Harewood
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63 TOWN Park
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Willow Park
RTH
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LD Pease
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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1856 2. P
LT
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SITE AREA R 3. A
GROVE TOWN
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4. T
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The site is approximately 5.13 acres (2.07 hectares) providing a low site coverage of 30%.
5. M
© Crown Copyright, ES 100004106. For identification purposes only.
SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT WF8 2LN HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
PLANNING RENTAL VALUE
The Park benefits from Open A1 consent with some minor restrictions. The open market lettings to B&M and The Bed Shop have
There is a strong possibility of obtaining an unrestricted open set a new rental tone for both the larger and smaller units
consent in the future if required. within the Park. This evidence resulted in a significant
uplift at rent review by way of Independent Expert decision
Planning information can be found within the dataroom.
for Unit 1 (Poundstretcher) increasing from £180,000 pa
to £265,000 pa (£8.82 psf). Independent Expert report
TENURE available in the dataroom.
The property is held virtual freehold (999 year lease) and there We believe the above has set a benchmark for the Park and
is a right of pre-emption. More details available upon request. that the rents of Units 3B & 4 are therefore reversionary.
TENANCY SCHEDULE
Unit Tenant Trading Name Size Mezzanine Term Lease Start Lease Expiry Rent Review ERV ERV Current Rent Rent Comments
(Sq Ft) (Sq Ft) (£ pa) (£ psf) (pa) (£ psf)
1 Poundstretcher Ltd Poundstretcher 30,045 10 years 02/05/2012 01/05/2022 £265,000 £8.82 £265,000 £8.82 Rent increased from
£180,000 at Arbitration (2017
review)
2 B & M Retail Ltd B&M 22,061 15 years 03/10/2016 02/10/2031 03/10/2021 £220,000 £9.97 £220,000 £9.97 Half rent paid for first two
years. Vendor will top up.
Includes 5,000 sq ft Garden
Centre.
3A Symbolgen Ltd The Bed Shop 5,000 10 years 09/08/2016 08/08/2026 09/08/2021 £65,000 £13.00 £65,000 £13.00
3B United Carpets United Carpets 5,000 4,500 10 years 31/05/2016 30/05/2026 31/05/2021 £60,000 £12.00 £40,000 £8.00 Rent Review is capped
(Property) Ltd at 115%
4 JYSK Ltd JYSK 6,000 2,146 10 years 11/07/2013 10/07/2023 11/07/2018 £72,000 £12.00 £48,000 £8.00 Full parent guarantee held.
Mezzanine is Landlord fitting
Substation YEB 21 years 01/05/1981 01/05/2002 £135 Holding Over
68,106 £682,000 £638,135
SOUTH BAILEYGATE RETAIL PARK, PONTEFRACT WF8 2LN HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY COVENANT B&M Retail Limited (Co. No. 1357507) B&M was founded in 1978 and bought by Simon and Bobby Arora in December 2004. Since then, the retailer has undertaken a significant store expansion programme, increasing their outlets from 20 to over 500 across the UK employing over 22,500 members of staff. B&M is one of the leading variety retailers in the UK with their core strategy being to sell top branded products at discounted prices. The company successfully listed on the London Stock Exchange in 2014, helping to fund its continued expansion with turnover having increased substantially over the past few years. Poundstretcher (Co. No. 00553014) Established in 1981 Poundstretcher is a leading variety discount retailer for food, toiletries, garden essentials and home-ware brands. Poundstretcher operates from over 400 stores in the UK and employs a workforce of over 6,000 people. United Carpets (Property) Limited (Co. No. 08053813) United Carpets (Property) Limited sits within the United Carpets Group plc which is the third largest chain of specialist retail carpet and floor covering stores in the UK. The business commenced trading in 1997 and in 1998 the first franchised store opened. As of 2017 the group had a total of 57 stores. JYSK Ltd (Co. No. 06336261) JYSK originated in Denmark and has grown to become an international retail chain that sells ‘everything for the home’. Today the JYSK Group comprises more than 2,500 stores across 50 countries with 15 stores within the UK. Symbolgen (Co. No. 01664188) Founded over 40 years ago, The Bed Shop Group is an established business across Yorkshire and Lincolnshire offering a large range of beds and mattresses. The business trades from 5 stores across the region. 76% of the contracted income is from the strong covenants of B&M and Poundstretcher.
SERVICE CHARGE EPC
The service charge budget for 2017/2018 is £39,440. The EPCs are available within the dataroom.
Full information is available in the dataroom.
VAT
DATAROOM
We understand the property has been elected for
For Access to the Allsop dataroom please use the following link: VAT. It is anticipated that the sale will be treated
http://datarooms.allsop.co.uk/register/pontefract as a Transfer of Going Concern (TOGC).
PROPOSAL
Offers are sought in the region of £8,000,000 (Eight Million Pounds), subject to
contract and exclusive of VAT. A purchase at this level would reflect a net initial yield
of 7.50% based on the current rent passing and a reversionary yield of 8.00% after
allowing for purchaser’s costs of 6.67%.
For further information or to make arrangements for viewing please contact:
Jonathan Butcher Alex Butler
020 7543 6755 020 7543 6722
jonathan.butcher@allsop.co.uk alex.butler@allsop.co.uk
www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 05.18
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