SPORTS DIRECT & DREAMS 383 - 389 BATH ROAD, SLOUGH SL1 5QA - PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY WITH A WAULT OF 9.6 YEARS TERMS ...
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SPORTS DIRECT & DREAMS 383 – 389 BATH ROAD, SLOUGH SL1 5QA PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY WITH A WAULT OF 9.6 YEARS TERMS CERTAIN
INVESTMENT n Slough is a south east commercial hub in the Thames Valley n Open A1 planning consent
CONSIDERATIONS providing excellent communications and direct access to
London Paddington by train in 14 minutes.
n WAULT of 9.6 years to break and 12.46 years to expiry
n Passing rent of £465,920 pa reflecting a low average
n Crossrail’s arrival in 2019 will provide a direct service rent of £22.31 psf
to Bond Street in 32 minutes
n Sports Direct income benefits from RPI linked rent reviews
n Junction 5 of the M4 motorway is located approximately collared and capped at 1% & 3%
2.5 miles to the east of the property
n Dreams 2015 rent review outstanding
n The town benefits from a catchment of approximately 160,000
people within a 10 minute drive time and approximately n Freehold
536,000 within a 20 minute drive time n Offers sought in excess of £7,000,000 (Seven Million Pounds)
n Two prominent retail warehouse units let to the 5A1 covenant subject to contract and exclusive of VAT. A purchase at this
of Sportsdirect.com Retail Ltd and Dreams Limited totalling level reflects a net initial yield of 6.25% assuming purchaser’s
approximately 37,007 sq ft (3,438.1 sq m) costs of 6.65%.
Slough
Retail Park
Westgate
Retail Park
Bath Road
Shopping Park
A4
A4
Burham Rail Station
For identification purposes only.
A418 LUTON Luton A120
A5 A10
A1(M) A602
A44 M1 A131
A34 Aylesbury A130
Harpenden
A40 Hertford
A414 M11
LOCATION OXFORD A41 Hemel
St Albans Hatfield
Harlow A
Thame Hempstead
Slough is a major commercial centre situated in the Thames Valley A4142 M10 A414 Chelmsford A138
approximately 2.5 miles north of Windsor, 5.5 miles east of Maidenhead
A420 J21 A414
and 20 miles west of London. A404 Chesham Epping Chipping
A4010 J20
Ongar
J23
The town has excellent communication links being situated on the A4 J19 J25
M25 J27
which provides access to Maidenhead approximately 5.5 miles to the
west, the M4 (Junction 5) approximately 2.5 miles to the east and onto
M25 Watford A1 Enfield
High M1 M11 A13
the M4/M25 interchange a further 2 miles to the east. Wycombe A355 A413 Billericay
Slough train station provides direct access to London Paddington with Harefield J28 Wickfo
M40 A10
a fastest journey time of 14 minutes. There are also regular direct trains
to Birmingham New Street and Bristol Temple Meads with fastest journey A12 A127
Ruislip J29 Basildon
A404 J16 Hampstead Romford
times of 1 hour 25 minutes and 1 hour 38 minutes respectively. Wembley
LONDON
Henley-on-Thames Uxbridge A40
London Heathrow Airport is situated approximately 5.5 milesA34 to the east
and is the busiest airport in the UK and the sixth busiest in the world by
Maidenhead SLOUGH A4 A13 M25
A404(M) Southall London
total passenger traffic. In 2015 the airport handled a record 75 million J15
M4 City
passengers. Numbers are likely to significantly increase after the recent
Hounslow A2
announcement that Heathrow is the governments preferred destination READING M4
Windsor
Heathrow A316 Clapham
Dartford
for a new runway. Gravesend
A329(M) Ashford Kingston
Bracknall A20 J2
Ascot Upon Thames
A23 Bromley
J12
M3 A309 A3
SITUATION A322
Walton-on-Thames
A232
Croydon
A21
J3 Rochester Gi
M2
The property is situated on Bath Road immediately to the west of its M25 Sutton M25 M20
Sandhurst Epsom
junction with Stowe Road. Burnham railway station is situated approximately Snodland
J10
0.5 miles to the North West. The area is made up of a mix of commercial Woking A217 Biggin Hill
A339 A22
and residential uses clustered around the busy A4 arterial road. Nearby J9 J5 M26 M20
occupiers include Esso, Volvo, Halfords, Land Rover and HSS Hire Shop. BASINGSTOKE M3
Fleet A331 M25 Maidstone
A3 J7
J8 J6
A34 Oxted
Aldershot Reigate A26
GUILDFORD Dorking Redhill
Famham A21
A24 Tonbridge
A303 Godalming M23
Horley Paddock
Royal Wood Staple
Alton Witley
Gatwick Tunbridge
Cranleigh A264 Wells
A
A31 Crawley
Three Bridges
A264
Horsham
Forest Harold
Stratford Gate Ilford Goodmayes Romford Wood Shenfield
Hayes & Ealing Bond Maryland ManorA23 Seven
Haywards Chadwell Gidea Brentwood
Taplow Slough Iver Harlington Hanwell Broadway Street Farringdon Whitechapel Park Kings
Heath Heath Park
Maidenhead Burnham Langley West Southall West Acton Paddington Tottenham Liverpool Custom
Abbey Surface line
Drayton Ealing Main Line Court Road Street House
Wood Tunnel
Portal (tunnel entrance and exit)
Heathrow Canary Woolwich
Airport Wharf
32 minutes
London Paddington 14 mins
M4 (J5) 2.5 miles
Birmingham New Street 1 hr 25 mins London Heathrow 5.5 miles
Central London 20 miles
Bristol Temple Meads 1 hr 38 mins
Photo credit: U+I CGI images
REGENERATION AND INVESTMENT Slough has benefited greatly in recent years with a £1 billion regeneration to Pinewood Studios is set to undergo an expansion with a planned £200m
IN SLOUGH improve the town centre including a new commercial district with an expansive
retail and leisure space. The outlook is positive with the arrival of Crossrail in
being spent over a 15 year period with the creation of 100,000 sq ft
of new facilities and the creation of 3,100 net additional jobs.
2019, the potential (WRAtH) Western Rail Access to Heathrow, Pinewood Studios The proposed third runway at Heathrow Airport will see significant investment
expansion, and the proposed third runway at Heathrow Airport. and will create an estimated 2,700 jobs. Work will begin on the £17.6bn project
Crossrail will not only help improve Slough’s connectivity to Central London in 2021 and should be open by 2025. The Department for Transport estimates
with four trains every hour from December 2019, but it has created thousands that the benefits of this to the wider economy could be as much as £61bn and
of jobs and the town has also experienced, between May 2010 and 2016, could create as many as 71,000 additional local jobs over the next 14 years.
the biggest effect on house prices of Crossrail stations outside of greater The Heart of Slough is a regeneration project which will transform a key
London with an average house price increase in Slough of 60%. site adjacent to Slough railway and bus station. The project will focus on
The potential WRAtH will create up to 6,000 new jobs in the town and over the creation of a commercial area covering an area of circa 3 hectares.
£800 million of UK and regional economic benefit. The new line would The development will help create 4,800 permanent jobs and nearly 500
dramatically cut the travel time between Slough and Heathrow from 41 temporary jobs. The project is due to be complete around 2021.
minutes down to just 6 Minutes and it is also estimated that it will cut the
number of car journeys taken by close to one million.
BU
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IN
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A 3 55
COMBE
E DI N
BUR
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4 BUC
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VEN
U E
LANE NORTH
AM A
TAPLOW VENU
BURNHAM E
A4 Bath Road
3
STATION R D
A4
Bath R
oa d
A4 Bath Road
CLIPPENHAM L A N E
A
LEIGH RO
KE E
L
ND R
OA A4
SHOTT LANE
D
Ba
AD
th
B3
M4 Ro
02
2 ad
6
(Slip Road)
ELM
1
CLIP
PENH
AM L
ANE
M4
M4
B3026
RETAIL WAREHOUSING 1 SLOUGH RETAIL PARK 2 WESTGATE RETAIL PARK 3 BATH ROAD SHOPPING PARK 4 TAPLOW SHOPPING PARK
IN SLOUGH The park comprises The park comprises The park comprises The park comprises
approximately 150,000 sq ft with approximately 57,500 sq ft with approximately 195,000 sq ft with approximately 45,000 sq ft with
The majority of the retail warehouse provision is situated out of town with occupiers including DFS, The occupiers including Curry’s, PC occupiers including Argos, B&Q, occupiers including Homeserve,
total out of town retail warehouse provision estimated at approximately Range, Carpetright and Harvey’s World and Brantano with rents in Boots, New Look, and Next with Mountain Warehouse, TK Maxx
645,000 sq ft. There are two principle retail parks, Slough Retail Park, with rents ranging between the region of £30 psf. The park is rents achieving in the region and Nike with rents in the region
which recently transacted for £53m which reflected a NIY of 6.25%, £20-£30 psf. The park is situated situated approximately 500m to of £30 psf. The park is situated of £30 psf. The park is situated
and Bath Road Shopping Park which recently transacted for approximately approximately 1 mile to the the east of the subject property. approximately 200m to the east approximately 2 miles to the
£94m which reflected a NIY of 5.54%. east of the subject property. of the subject property. west of the subject property.
The main out of town retail warehousing supply is clustered along the
A4 Bath Road and is situated at the following schemes:
A505 Stevenage
Dunstable
Luton
A418 LUTON
A5
A1(M) A6
A44 M1
A34 Aylesbury Harpenden
Hert
A40
OXFORD
A41 Hemel
St Albans Hatfield
Thame Hempstead
A4142
M10 A414
A420 J21
A4010 A404 Chesham J20
J23
J19
M25 Watford A1 Enfield
High M1
A355 A413
DEMOGRAPHICS SLOUGH Wycombe
Harefield
The catchment within a 10 minute drive time of the property DRIVE TIMES: M40 A
n
totals approximately 160,000
A404
n The catchment within a 20 minute drive time of the property Marlow Ruislip
J16 Hampstead
LOND
totals approximately 536,000
10 minutes Bisham Stoke Poges Wembley
n Slough is projected to see significantly above average Hurley Farnham Royal Uxbridge A40
growth in population over the period 2016-2021
A34 Maidenhead
20 minutes SLOUGH Iver Heath
n In 2011 the Slough area contained a significantly above A404(M) Southall
average proportion of adults of working age categorised Woodlands Park Eton J15
within the most affluent AB social group M4
Paley Street Hounslow
Windsor Clapham
n Growth in total employment to 2017 is forecast to be READING A316
significantly above the national average M4 Old Windsor Heathrow
A329(M) Binfield Woodside Egham Ashford
Kingston
Bracknall
Virginia Water Upon Thames
Ascot J12
M3 A309 A3 A23
A322
Walton-on-Thames Cro
A232
M25 Sutton
Sandhurst Epsom
392
396
26.2m
408
DESCRIPTION
PO
412 410 406 398
Shelter
LB
The property comprises two adjoining retail warehouse units arranged over
ground and mezzanine levels. BATH ROAD
Ward Bdy
375
CR 27.1m
The Sports Direct store is arranged as retailing and storage over both ground and 389
383 to
mezzanine floors with a stairwell and lift providing access between the floors.
The Dreams unit is arranged as retailing on ground and first floors with storage located
on first floor with a stairwell and lift providing access between the floors.
There are approximately 102 car parking spaces shared between the units. 399
401
399a
41
SITE AREA
The property occupies a site area of 1.51 acres (0.61 ha)
with a low site coverage of approximately 30.6%.
1
TENURE 19 to 24
1
Freehold
4
5
14 to 18
3
1
PLANNING
12
32
44 34
6
46
The scheme benefits from open A1 planning use LOSE
AV ON C Youth Club El Sub Sta
Cippenham Baptist Church
JUPITE
7
R COU
Manse © Crown Copyright, ES 100004106. For identification purposes only.
11
Hall
0m 10m 20m 30m
11
RT
TENANCY SCHEDULE
Tenant Floor Area Area Rent Rent Lease Lease Next Comments
sq ft sq m £pa £psf Start Expiry Review
GF 9,210 855.7 15 years with Rent review is RPI compounded
From
Sportsdirect.com a tenant only 5 yearly with a collar and cap of 1-3%.
Mezzanine 9,131 848.3 £260,000 £22.62 completion 5th year
Retail Limited break option Rent psf assumes 25% allowance for
of the sale
Total 18,341 1,704.0 in year 10 mezzanine.
GF 9,360 869.6
22/11/2015
Dreams Plc Mezzanine 9,306 864.5 £205,920 £22.00 22/11/2005 21/11/2025 Mezzanine excluded for rent review purposes.
(outstanding)
Total 18,666 1,734.1
Total 37,007 3,438.1 £465,920
COVENANT INFORMATION
SPORTSDIRECT.COM RETAIL LIMITED DREAMS LIMITED
Dun & Bradstreet Rating: 5A1 (Minimum risk) Dun & Bradstreet Rating: N1 (Lower than average risk)
Sports Direct International plc is today the UK’s largest sporting goods retailer, and operates a diversified Dreams is one of Britain’s leading bed specialists with approximately 170 stores based around the UK.
portfolio of sports, fitness, fashion and lifestyle facias and brands The 2016 Sunday Times Top Track 250 ranked Dreams 95th making the first time the bed specialist has
They operate approximately 700 stores across the UK and continental Europe. entered the league.
The company has recently made significant investments into its purpose built 130,000 sq ft bed factory in
Oldbury, West Midlands. The factory makes over 10,000 beds a week, which are distributed all over the country.
The company has published the following headline accounts for the past 3 years: The company has published the following headline accounts for the past 3 years:
27/04/2014 26/04/2015 24/04/2016 24/12/2013 24/12/2014 31/12/2015
Turnover (000’s) £1,864,930 £2,074,126 £2,063,255 Turnover £151,260,000 £193,575,000 £225,865,000
Pre-Tax Profit (000’s) £202,660 £262,929 £302,501 Pre-Tax Profit (£9,509,000) £378,000 £13,493,000
Total Net Worth (000’s) £665,649 £872,400 £1,201,706 Total Net Worth (£29,382,000) (£28,741,000) (£16,225,000)
VAT EPC’S
The property is elected for VAT and therefore it is EPC’s available on request.
anticipated that the sale will be treated as a TOGC.
PROPOSAL
Offers sought in excess of £7,000,000 (Seven Million Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 6.25% assuming purchaser’s costs of 6.65%.
For further information or to make arrangements for viewing please contact:
Andy Pointon Richard Lea Lottie Hayward
020 7543 6720 020 7543 6832 020 7543 6750
andy.pointon@allsop.co.uk richard.lea@allsop.co.uk lottie.hayward@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: Command D www.commandHQ.co.uk 11.16You can also read
