Valentine LINCOLN Prime Retail Investment Opportunity - Banks Long & Co
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Prime Retail
Investment
Opportunity
Valentine
LINCOLN
Valentine
a leading retail
destination
Valentine
LINCOLN
Prime Retail Investment Opportunity
Investment Summary
• City - Lincoln is an attractive and historic cathedral • Strong trading profile - consistently robust trading
city, and is the administrative centre of the county performance.
of Lincolnshire.
• Institutional income stream - secured from strong
• Place making - Valentine is one of the leading retail covenants including Next, TK Maxx, Asda, DFS,
destinations in the city, with a strong furniture, Costa and Hobbycraft, with a low average rent of
convenience and comparison retail offer. £22.11 per sq ft and a WAULT of 8.3 years to expiry
and 6.4 years to break.
• Captive catchment - there is a captive catchment,
with the nearest main shopping competition • Further potential - potential for further value
being over an hour’s drive away. Total catchment enhancement with flexible store layout and scope
population of 582,966 people. for further units to be created.
• Large footfall - annual footfall estimated at • Price - a price is sought of £46,300,000, reflecting
2.4 million. an attractive net initial yield of 5.96%, after allowing
for purchaser’s costs of 6.78%.
• Modern floor space - a resilient and continually
evolving retail offer utilising the scheme’s flexible
layout with a further improvement to the scheme
currently on site.
Location
Lincoln is a cathedral city and the commercial and administrative centre for the county of Lincolnshire.
Lincoln is located approximately 142 miles north The city is now home to the University of Lincoln and
of London and benefits from a captive and distinct Bishop Grosseteste University. The University of Lincoln
catchment population lying 41 miles northeast has over 13,000 students, and has developed strongly over
of Nottingham, 45 miles east of Sheffield and 40 recent years, having had a £200 million investment in the
miles north of Peterborough. campus, with a further £130 million spend planned over the
next few years.
Lincoln developed from the Roman town of
Lindum Colonia. By 1150, Lincoln was reputed to The university is estimated to be worth more than £300
be among the wealthiest towns in England. The million to the local economy, doubling local economic
city became a major trading hub, exporting to the growth rates, and creating more than 3,000 new jobs.
continent and thereafter drawing from the wealthy The university’s award-winning business incubation
agricultural hinterland, the city became renowned centre, Sparkhouse, has supported more than 300 new
for delivering engineering solutions, which were and growing businesses to establish themselves in the
adopted worldwide. region and created over 450 new jobs. Lincoln opened the
UK’s first purpose-built engineering school in 25 years in
Lincoln’s major landmarks are Lincoln Cathedral, collaboration with Siemens plc.
a famous example of English Gothic architecture,
and the 11th-century Norman period Lincoln The service sector as a whole accounts for 53% of total
Castle. The aptly named ‘Steep Hill’ forms a employment in the city; the professional & business
northern extension of the high street and forms services and finance sectors together account for 8.6% and
the historical quarter of the city, leading to the the retailing and leisure sectors 27.0% of total employment.
cathedral standing at the top of hill, overlooking
the rest of the city. The cathedral is one of the Lincoln has a strong advanced engineering sector. Siemens
most frequently visited in the UK and the city Industrial Turbomachinery have a large facility in the city
generates 4 million visitors per year, producing employing some 1,300 people. The city is expanding within
£190 million of spend in the local economy and the high tech industries sector, with firms such as Dynex
supporting 2,500 jobs. and E2V benefiting from the strong and historic links to
the MOD/RAF. Lincoln’s second largest private employer is
James Dawson UK; a belting and hose manufacturer.
1 47
43 A1 38 HULL
27
Batley 41 30
Castleford M62
37
Dewsbury M62
31 32 36 Goole
33 34
40 Wakefield A15
M18
d 39
Hemsworth Immingham
38
6 Thorne
5 1
M181 Scunthorpe 5 Grimsby
M1 38
M1802 Cleethorpes
37
3 M180
4
37 4
A46
36 36 A16
3
A159 A15
35
A1(M)
Rotherham
34 1
34 A631
33 32 34
Gainsborough Louth
SHEFFIELD 31
Retford
M1 A156
‘The University of
A46
A61
30 A1 A158 A16
Chesterfield
LINCOLN
29
Lincoln is estimated
A6
Mansfield
A15
to be worth more
than £300 million to
28 Newark-
on-Trent A52
27
A38
26
A46
A1
A17 Boston the local economy,
A52
A52
A52 A16
doubling local
NOTTINGHAM Grantham
economic growth
25
DERBY
A17
A50
rates and creating
A607
A38 24
EAST A15 A151
MIDLANDS Spalding King's
A17
more than 3,000
A17 Lynn
23 A1
A42 A607
A47
M1
new jobs’
A606
22 A10
11 Stamford A16 Wisbech
M42 LEICESTER A47
A47
21 Peterborough
March
M69 A43
A6
2
1 A10
A605
‘The city benefits from a captive
catchment, with the nearest
main shopping competition being
over an hour’s drive away’
HUDDERSFIELD
SCUNTHORPE GRIMSBY
BARNSLEY
DONCASTER
Catchments
Primary
Secondary
Tertiary
Quaternary
CHESTERFIELD
LINCOLN
MANSFIELD
NOTTINGHAM
DERBY BEESTON
BURTON UPON TRENT
LOUGHBOROUGH
Valentine
LINCOLN
Strong Prime Retail Investment Opportunity
Demographics
Valentine provides a convenient and accessible Scheme specific indicators are:
shopping environment, aligned to the daily
needs of the local community. The retailer mix
complements the strong demographics and Average drive time
this is reflected in the frequency of use by the to the scheme of
catchment population. 19 minutes.
The city benefits from a 30.3% of customers visit
relatively captive catchment, Valentine at least once
with the nearest main shopping a week and 80% visit
competition being over an hour’s Valentine at least once a
drive away. There is a total month.
catchment population of 582,966
people.
Estimated annual footfall of
2.4 million people, with an
CACI state that ‘Affluent average dwell time of 50
26% Achievers’ comprise 26.0% of the
catchment, in comparison to the
21.5% UK average.
minutes.
Catering spend potential
of £29.3 million.
£8 average catering
‘Comfortable Communities’ spend.
42% make up 41.5% of the catchment,
as compared to the 26.6% UK
average.
Over £51 average retail
spend per shopper.
Within the CACI 20 minute drive
time, there are just over 74.419
households, of which 46,249 are Comparison goods
owner-occupied. spend potential of
£106.2 million. 16.9%
of core catchment
market share of
comparison goods.
79.2% of the drive time
catchment have access to a car,
as compared to the UK national
average of 75.5%. 33 visits per year on
average per person.
£1,336.7 million of total 45% of customers live
catchment comparison goods
expenditure. 45% within a 10 minute drive
from Valentine.
Ideal Situation
SA
for a Retail Scheme
XI
West Common
LB
YR
OA
The scheme forms the premier location for large format retailing in the city and is
anchored by a 30,000 sq ft Next, a 20,000 sq ft TK Maxx, Asda Living, Hobbycraft
D
and DFS. Lying adjacent are Wren Kitchens and The Range, and to the north is a B&Q
Warehouse totalling 100,000 sq ft. On the opposite side of the road, just to the north,
is the 124,000 sq ft Tritton Retail Park, with occupiers including Currys PC World,
HomeSense, Carpetright, Home Bargains, ScS and Pets at Home.
Between Valentine and the city centre is St Marks, which is anchored by Debenhams,
Argos Extra, Sports Direct, Mothercare, Homebase, and Gap Outlet. Lidl (17,000
sq ft) and BHS (30,000 sq ft) were previously represented here until the former found
a larger standalone site and the receivership of the latter. This scheme has paid parking
and has struggled, with the owners, Aberdeen Standard, having gained planning
permission to demolish the existing retail park to the west of the canal and replace it C
with a mall style arrangement and multi storey parking with 1,100 spaces. Also planned
are 150 new residential units, up to 1,100 new student residences, and a hotel with 130
rooms. According to the scheme’s website, construction is likely to begin in 2020, with
the development taking 3 years to complete and Aberdeen Standard investing over £150
million.
Tritton Road is a dual carriageway and forms one of the main routes to the south, linking
up with the A46 Newark Road. There is all ways access and egress to the development
to and from Tritton Road via a traffic light controlled junction. This gives access to
Valentine Road, which forms a slip road off the dual carriageway, and onto the scheme.
Limited Retailing
Competition
Lincoln faces below average competition from surrounding regional retail centres, due to
its distance from them, with the nearest main shopping competition being over an hour’s
drive away. Valentine
Lincoln
A19
on
A58
BRADFORD
A10
79 Beverley
A1
LEEDS
65
14
Garforth Selby
A164
M621
A6
1 47
A63 A63 38
43 A1
M62 HULL
A10
27 Castleford 37 Hessle A63
41
Batley 41 M62
30
31 32 A645 36 Goole
33 34 Barton-
upon-
40
Pontefract Humber
Wakefield M18 A160
39
Hemsworth Immingham
A15
A6 6
M181 SCUNTHORPE
38 38 Thorne
A61
M1
5 1 5
GRIMSBY
38
M1802 M180 Cleethorpes
3
37 4
37 4
Penistone Brigg
DONCASTER 6
36 36 A4
3 Caistor
Stocksbridge
59
A1
35
Rotherham A1(M) Bawtry
A15
A16
A631 Market
34 1 A631
34 Rasen
33 32 34 Gainsborough
SHEFFIELD
31
6
Retford A4
M1
A61 A1
LINCOLN
A15
30 A5 A1
58 D
OA
7
6
Chesterfield R
ON
Horncastle
T
Washingborough IT
29
Ollerton TR
A6
Mansfield
Matlock
Coningsby
Alfreton 28
NEWARK-ON-TRENT
A15
A17
to A46, A1
Wirksworth A38 27
3
6
& M1
A6
Ashbourne
A4
Sleaford A17
00
0
A1121
7
26
B1
A52 NOTTINGHAM A1 A52
A16
A52
DERBY
Claytons
Sports and
B1273
LO Social Club
AD
NG Whitton Park
RO
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YS R
OA
AM
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A1
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Lincoln
Castle
EASTGATE GREETWELL RD
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Lincoln
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Waterside
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University of
B 12
Tri on etail ark
Lincoln 124, s
WA
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Y Tenants include: Home Bargains,
Home Sense, Halfords, Currys PC
ST M igh treet World, Pets at Home
AR
KS
T Lincoln t arks hopping
TEN
St Marks TER Central 43 , s
hopping CRO
ET
FT S Units to be redeveloped.
AD
T
TRE
Maplin, Sofology, Toys R Us.
RO
Other retailers include: Gap, JD,
N
CA
Argos, Debenhams, Boots,
HS
Tri on
TO
PureGym
Retail Park
NW
IT
HIG
TR
ICK
CO
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RD
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BOU
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AVE
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00
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DIXON STREET Lincoln H RD
City E OUG
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Football U
B1
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B1262
AD
Club
18
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Contemporary Retailing
Valentine provides a modern, high quality has a higher than average proportion of Harveys, Dreams and AHF Furniture, with
shopping environment, in-line with current shoppers using click and collect alongside the line-up completed by Hobbycraft
retailer requirements and consumer needs. shopping in stores; 4.1% compared with the (to open in spring 2018), American Golf,
average of 1.9%. The majority of retailers Carphone Warehouse and Costa.
Following completion of a pre-let on the scheme provide an omni-channel
redevelopment and additions to the service allowing the customer to take full The existing scheme has been refurbished
scheme, Valentine will comprise 133,177 advantage of the benefits this provides. over the last 7 years to provide new
sq ft, generally arranged in 2 facing terraces. This results in frequent visits, with 80% of frontages and entrance features, with all the
The 531 surface level and free car parking shoppers visiting at least once a month and larger units having sufficient headroom within
spaces (1 : 250 sq ft) provided, combined 36% being on a ‘single item pick up mission’ which to install mezzanine floors.
with the ease of accessibility via Tritton when shopping.
Road, allow frequent visits here from the The new unit for Hobbycraft is being built to
catchment population. Leading fashion and general merchandise a high specification, being fully glazed with an
retailers Next, TK Maxx and Asda Living attractive and inviting frontage. The modern
The tenant mix here, combined with the anchor the scheme and there is a strong and attractive design creates a contemporary,
retailing environment, means that Valentine home and furniture range offered by DFS, high quality retailing experience.
‘The existing scheme has been refurbished over the last 7 years to
provide new frontages and entrance features with all the larger units
having sufficient headroom within which to install mezzanine floors’Valentine
LINCOLN
Prime Retail Investment Opportunity
Tenure
The scheme is held freehold with the demise outlined in red on the plan below. A full
title plan is available on request.
Planning Consent
The units occupied by Next, Asda Living, Carphone
Warehouse, Costa, TK Maxx and the new Hobbycraft benefit
from an open non-food consent; unusual for the city. The
new American Golf unit has a wide bulky goods consent,
but allows the sale of golfing clothing and footwear.
The remaining units generally have a bulky goods
only restriction. Full details can be supplied on
request.
Ta
nk
El
Su
b
St
a
El
Su
b
St
a
AD
TI NE RO
VALEN
Indicative planValentine
LINCOLN
Prime Retail Investment Opportunity
Tenancy Schedule
GIA Lease Lease Lease Break Next
Unit Tenant Name
(sq ft) Start Date Term (years) Expiry Date Date Rent Review
Unit 1&2 Next Holdings Limited t/a Next 29,730 27/09/2010 15 26/09/2025 N/A 27/09/2020
Unit 2A The Carphone Warehouse Limited 2,740 07/08/2013 10 06/08/2023 07/08/2018 07/08/2018
Unit 2B Costa Limited 2,025 19/08/2013 10 18/08/2023 N/A 19/08/2018
Unit 3 Dreams Limited 5,597 10/06/2016 10 09/06/2026 N/A 10/06/2021
Steinhoff UK Group Properties Limited
Unit 4 11,409 30/05/2017 10 29/05/2027 N/A 30/05/2022
t/a Harveys
Unit 5 DFS Trading Limited 20,290 30/09/2011 15 29/09/2026 30/09/2022 30/09/2021
Unit 6 Hobbycraft Trading Limited 7,522 19/02/2018 15 18/02/2023 18/02/2029 19/02/2023
Unit 7 Anglia Home Furnishing Limited 10,050 10/10/2011 15 09/10/2026 10/10/2021 10/10/2021
Unit 8&9 Asda Stores Limited t/a Asda Living 19,977 16/08/2007 15 15/08/2022 N/A 16/08/2017
Unit 10 TJX UK t/a TK Maxx 20,258 09/01/2015 14 23/06/2029 24/09/2024 24/06/2019
Unit 11 American Golf Discount Centre Limited 3,579 14/07/2017 10 13/07/2027 N/A 14/07/2022
TOTAL 133,177‘Institutional income stream - secured from strong
covenants including Next, TK Maxx, Asda, DFS, Costa
and Hobbycraft, with a low average rent of
£22.11 per sq ft and a WAULT of 8.3 years to expiry
and 6.4 years to break’
Current Rent Current Rent
Comments
(per annum) (per sq ft)
£565,500 £19.02
£68,265 £24.91 Tenant only break subject to 6 months’ notice. 3 month penalty on break.
Turnover rent - 14% of turnover above base rent of £65,812.50 which is calculated at 1/14% x base rent. Estimated
£96,788 £47.80 turnover rent of £30,975 pa based on annual turnover of £691,338. No other coffee pod on the scheme before 6th
anniversary or Costa have the right to break.
£151,119 £27.00 Area of 5,585 sq ft assumed in lease.
£256,703 £22.50 Rent reviews capped at 2.5% per annum compound.
2016 rent review agreed at this level, with previous rent at £304,185 pa, and memorandum out for signature. Tenant
£356,000 £17.55
only break clause, subject to 3 months’ notice.
Rent reviews capped at 2.5% per annum compound. Break date at year 11 subject to 6 months’ notice. Rent based on
£198,750 £26.42
£26.50 per sq ft, not to exceed £198,750 per annum.
£211,100 £21.00 Rent increased at 2016 review from £190,000 per annum (£19.00 per sq ft).
£542,447 £27.15
£417,339 £20.60 Rent review cap of 115%. Tenant only break, subject to 6 months’ notice.
£80,527 £22.37 New relocated unit.
£2,944,538 £22.11Potential for
Further Value
Enhancement
Valentine has benefited from significant investment with the creation of additional
units, and refurbishment of the existing units. However, we believe more can be
achieved to enhance the retailing offer and tenant mix over the medium term,
satisfying retailer requests from customers and further underpinning Valentine’s
position at the top of the retail hierarchy.
Furthermore, the redevelopment of St Marks should present opportunities, as some
of the retailers there will be required to relocate elsewhere in the city. These tenants
could include:
Furthermore, there should be demand from Smyths Toys, as with Toys R Us’ demise,
the city would lack a volume toys retailer, and this was a top category 1 store for
Toys R Us.
Scheme
Opportunity otential to create a
n
furt er unit or Site for
units it in t e student
Further asset management opportunities rear car ark housing
are as follows:
to be
developed
ortunit to
do nsi e S and
su di ide t eir unit
S ace to create a food
Ta
nk
offer or od unit
otential to
El
Su
su di ide t e
b
Sta
unit at lease ex ir
El
S
ub
Sta
AD
INE RO
VALENTValentine
LINCOLN
Prime Retail Investment Opportunity
ERV
New lettings have been undertaken to Dreams, Harveys and Hobbycraft, which help to underpin the rental tone across the scheme,
and provide evidence for uplifts for some of the other forthcoming reviews. Dreams took their 5,597 sq ft at a headline rent of
£27.00 per sq ft in exchange for 12 months’ rent free. The Harveys letting is at £22.50 per sq ft, also with 12 months’ rent free.
Hobbycraft are taking a 7,500 sq ft new build unit at £26.50 per sq ft.
On the basis of these lettings, the AHF rent increased at the October 2016 review to a rent reflecting £21.00 per sq ft from
£19.00 per sq ft. Following this, the DFS September 2016 review was settled at a rent reflecting £17.55 per sq ft, on increase from
£15.00 per sq ft, demonstrating significant rental growth.Valentine
LINCOLN
Prime Retail Investment Opportunity
Tenants’ Covenants
Valentine provides a secure income, with 75% of the rent attributable to tenants with 5A1 D&B rated covenants.
The overall income weighted average unexpired lease term is over 6.4 years to break and 8.3 years to expiry.
Lease Expiry Profile by Income D&B Rating by Income
7% 10%
10 Years + >4 Years 15%
Other
75%
5A1
9%
4A1
47%
4-7 Years
36%
7-10 YearsBritish Land is one of Europe’s largest publicly listed real estate companies with £19 billion of retail, office and residential assets under management. Their properties cover 28.8 million sq ft and are home to 1,200 organisations. 64,000 people work across their Office Portfolio and 322 million visit their Retail Sites. Their Offices and Residential Portfolio is focused on London. They provide a range of working and living space across their campuses and distinctive standalone properties, which combine with retail and leisure to create attractive, well-located and well-managed environments. Their Retail & Leisure Portfolio is focused on large, retail-led, multi-let assets. They provide high quality retail alongside a growing leisure offer and best in class services to deliver environments for modern consumer lifestyles. Their strategy is focused on 2 types of retail destinations – Locals and Regionals. They are based on the different shopping missions of their customers and align with their retailers’ strategies. Whilst the assets are shopped differently, the basics of a high quality and engaging environment are consistent, and are essential to both of their success. People interact and visit their assets for many different reasons, reflecting modern consumer lifestyles, which are full of choices. Physical retail is an essential part of shopping for planned trips to experience led destinations, as well as convenient and accessible regular trips to centres at the heart of the local community British Land, through the redevelopment of Valentine, have created a ‘place people prefer’, with customer orientation being the main focus here. Being a local centre, it attracts a high frequency of local shoppers, Click & Collect usage and convenient leisure and grocery trips, due to its convenient and accessible location.
Valentine
LINCOLN
Environmental Report Prime Retail Investment Opportunity
and Building Survey
RPS have undertaken a Phase 1 Environmental Report for the property and Martin
Bates Consultancy has undertaken a building survey. Both surveys are assignable to
the purchaser and are available on request.
Service Charge Contact
The current service charge is low at £ 1.02 per sq ft. Ellie Kirkby Tim Bradford
Further details are available on request. T: 020 7317 3790 T: 01522 518591
M: 07764 241898 M: 07788 587939
E: e.kirkby@wilkinsonwilliams.co.uk E: tim.bradford@bankslong.com
EPC Paul Wilkinson
T: 020 7317 3799
M: 07770 585313
EPC’s for the individual properties are available on E: p.wilkinson@wilkinsonwilliams.co.uk
request.
Wilkinson Williams Banks Long & Co
Heathcoat House 26 Westgate
Proposal 20 Savile Row
London W1S 3PR
Lincoln
LN1 3BD
www.wilkinsonwilliams.co.uk www.bankslong.com
A price is sought of £46,300,000, reflecting an attractive
net initial yield of 5.96%, after allowing for purchaser’s
costs of 6.78%. A top up will be sought on settlement of
the outstanding rent review.
VAT
The property is elected for VAT and we would expect
the transaction to be treated as a Transfer of a Going
Concern.
MISREPRESENTATION NOTICE. Wilkinson Williams LLP and Banks Long & Co give notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. 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. 3. 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. 4. 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 and 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. 5. Any areas, measurements or distances referred to herein are
approximate only. 6. 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, this is not intended to be a statement that any necessary planning, building regulations or other
consents have been obtained and these matters must be verified by an intending purchaser. 7. 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. March 2018. Designed and produced by Creativeworld Tel: 01282 858200You can also read
