nuneaton â 5/6 market place let to poundland ltd until august 2022
NUNEATON – 5/6 MARKET PLACE LET TO POUNDLAND LTD UNTIL AUGUST 2022 Sat Nav Ref: CV11 4EA
INVESTMENT SUMMARY • Nuneaton is the largest municipality within Warwickshire county with a catchment population of approximately 165,000 • The property occupies a 100% prime trading position on the pedestrianised section of Market Place, adjacent to Boots and opposite Debenhams • The property comprises 29,051 sq ft (2,699.0 sq m) of well configured and flexible retail accommodation • Let to Poundland Ltd until August 2022 • Freehold • Total current income: £190,000 per annum • Price: £2,233,000 • Attractive Net Initial Yield: 8.00%
2 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
A51
A515
A50
A17
Nottingham
A52
A15 A52
A41 A518
A17
A607
A50
A46
A49 A515
A15 A606 A1
A42
A41
A1175
A38
Nuneaton is an historic market town and the largest municipality within Warwickshire. With a large primary catchment population of approximately 165,000 it is an important retailing centre in The Midlands. The town is located approximately 9 miles north of Coventry and 20 miles east of Birmingham.
A42 A47 A458
A454
A43
A4123
Nuneaton
Birmingham A442
A605 A5 A43
A34
A605
A45 A6116 A34
A508
A46
A456
A49
A14 A426
Northampton A44
A49
A43
A508 A449
A429
Nuneaton is well connected to the national motorway network, with the town centre situated just 4 miles north of Junction 3 of the M6, connecting the town to Birmingham to the west and London to the south, via the M1.
A421
A46 A4103
A438
A1
A6
A422 A423
A417
LOCATION
Nuneaton railway station provides frequent services into London Euston with a fastest journey time of approximately 1 hour, and Birmingham in only 30 minutes. The nearest international airport is Birmingham Airport, situated some 13 miles south west of the town centre.
RETAILING IN NUNEATON Nuneaton is a distinguished regional centre with over 980,000 sq ft (91,000 sq m) of retail floor space, above the small town average (Source: PROMIS). Nuneaton displays a strong retail provision within an attractive centre, characterised by low vacancy rates which highlight the vitality of the town. The total in-store comparison retail expenditure in 2016 was £423,000,000, well above the small town average (Source: PROMIS). Prime retailing in Nuneaton is focused on the pedestrianised Market Place and Bridge Street, which accommodate a number of popular national multiple retailers including Debenhams, Boots The Chemist, Holland & Barrett and Superdrug. The strength of this retail location is supported by the close proximity to the two managed shopping centres: Abbeygate Shopping Centre and Ropewalk Shopping Centre.
3 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
The property comprises one of the best large retail floorplates within Nuneaton SITUATION The property occupies a 100% prime trading position on the pedestrianised Market Place, at the junction with Bridge Street. Retailers in the immediate vicinity include:
Immediately to the south of the property is a 45 space car park located on Mill Walk which serves the store. The property is serviced from the rear of the property.
DESCRIPTION The property provides one of the best large retail floorplates within Nuneaton and enjoys frontage onto Market Place. Built of concrete framed construction with a semi-glazed frontage, the property offers well configured and flexible retail accommodation. The property is arranged to provide well configured retail sales accommodation at ground floor, with ancillary accommodation over first and second floors.
ACCOMMODATION Based upon a measured survey undertaken by Plowman Craven in 2016, the subject property provides the following approximate Gross Internal Areas: Floor
Use
sq ft
sq m
Ground
Sales
14,421
1,339.80
First
Storage
13,880
1,289.50
Second
Plant
750
69.7
29,051
2,699.00
4 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
TENURE
INVESTMENT COMPARABLES
Freehold
We consider that the subject property offers an attractive opportunity to purchase a highly secure, five and a half year income stream in a dominant retailing centre at a price which compares favourably with similar recent market transactions. These include:
TENANCY The property is let in its entirety to Poundland Ltd on a full repairing and insuring lease for a term of 10 years, commencing on 3rd August 2012 and expiring on 2nd August 2022. The lease is subject to an upward only rent review on 3rd August 2017. The current rent is £190,000 per annum.
5 | Fawcett Mead Nuneaton – 5/6 Market Place
Town East Grinstead Derby
Tenant
Expiry
Poundland
2024
Poundstretcher
2020
Poundland
2027
Price
NIY
Date
£2,700,000
6.44%
Available
£3,300,000
7.69%
Dec 2016
Kieran Mullin
2018
Clacton-on-Sea
Poundland
2026
£2,460,000
6.50%
Oct 2016
Newcastle-under-Lyme
Poundland
2026
£1,800,000
7.30%
Sep 2016
Gillingham
Poundland
2024
£1,400,000
6.75%
Aug 2016
Retail property expertise
RENTAL COMMENTARY
COVENANT INFORMATION
We have analysed the passing rent in respect of 5/6 Market Place to reflect a low overall rate of £6.54 per sq ft.
Poundland Limited is a British variety store chain founded in 1990. Today the company operates from over 800 stores and employs approximately 10,000 members of staff. Poundland Limited has reported the following figures in their annual accounts:
It is our opinion that this compares favourably with other large stores both within Nuneaton and within competing retail centres. A full schedule of comparable evidence is available upon request.
6 | Fawcett Mead Nuneaton – 5/6 Market Place
27/03/2016
29/03/2015
30/03/2014
Turnover
£1,214,818,000
£1,111,526,000
£997,803,000
Pre-Tax Profit
£34,653,000
£45,922,000
£41,017,000
Net Worth
£20,520,000
£93,866,000
£96,235,000
Retail property expertise
EPC A full copy of the EPC is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL We are instructed to seek offers in excess of £2,233,000 (Two Million Two Hundred and Thirty Three Thousand Pounds) subject to contract and exclusive of VAT, for our clients freehold interest in the subject property. A purchase at this level would reflect an attractive net initial yield of 8.00%, assuming purchasers costs of 6.33%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agent: Jonathan Mills +44 (0)20 7182 7483 +44 (0)7795 333 195 [email protected] Joe Baio +44 (0)20 7182 7489 +44 (0)7515 889 649 [email protected]
www.fawcettmead.co.uk Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 | SUBJECT TO CONTRACT
INVESTMENT SUMMARY • Nuneaton is the largest municipality within Warwickshire county with a catchment population of approximately 165,000 • The property occupies a 100% prime trading position on the pedestrianised section of Market Place, adjacent to Boots and opposite Debenhams • The property comprises 29,051 sq ft (2,699.0 sq m) of well configured and flexible retail accommodation • Let to Poundland Ltd until August 2022 • Freehold • Total current income: £190,000 per annum • Price: £2,233,000 • Attractive Net Initial Yield: 8.00%
2 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
A51
A515
A50
A17
Nottingham
A52
A15 A52
A41 A518
A17
A607
A50
A46
A49 A515
A15 A606 A1
A42
A41
A1175
A38
Nuneaton is an historic market town and the largest municipality within Warwickshire. With a large primary catchment population of approximately 165,000 it is an important retailing centre in The Midlands. The town is located approximately 9 miles north of Coventry and 20 miles east of Birmingham.
A42 A47 A458
A454
A43
A4123
Nuneaton
Birmingham A442
A605 A5 A43
A34
A605
A45 A6116 A34
A508
A46
A456
A49
A14 A426
Northampton A44
A49
A43
A508 A449
A429
Nuneaton is well connected to the national motorway network, with the town centre situated just 4 miles north of Junction 3 of the M6, connecting the town to Birmingham to the west and London to the south, via the M1.
A421
A46 A4103
A438
A1
A6
A422 A423
A417
LOCATION
Nuneaton railway station provides frequent services into London Euston with a fastest journey time of approximately 1 hour, and Birmingham in only 30 minutes. The nearest international airport is Birmingham Airport, situated some 13 miles south west of the town centre.
RETAILING IN NUNEATON Nuneaton is a distinguished regional centre with over 980,000 sq ft (91,000 sq m) of retail floor space, above the small town average (Source: PROMIS). Nuneaton displays a strong retail provision within an attractive centre, characterised by low vacancy rates which highlight the vitality of the town. The total in-store comparison retail expenditure in 2016 was £423,000,000, well above the small town average (Source: PROMIS). Prime retailing in Nuneaton is focused on the pedestrianised Market Place and Bridge Street, which accommodate a number of popular national multiple retailers including Debenhams, Boots The Chemist, Holland & Barrett and Superdrug. The strength of this retail location is supported by the close proximity to the two managed shopping centres: Abbeygate Shopping Centre and Ropewalk Shopping Centre.
3 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
The property comprises one of the best large retail floorplates within Nuneaton SITUATION The property occupies a 100% prime trading position on the pedestrianised Market Place, at the junction with Bridge Street. Retailers in the immediate vicinity include:
Immediately to the south of the property is a 45 space car park located on Mill Walk which serves the store. The property is serviced from the rear of the property.
DESCRIPTION The property provides one of the best large retail floorplates within Nuneaton and enjoys frontage onto Market Place. Built of concrete framed construction with a semi-glazed frontage, the property offers well configured and flexible retail accommodation. The property is arranged to provide well configured retail sales accommodation at ground floor, with ancillary accommodation over first and second floors.
ACCOMMODATION Based upon a measured survey undertaken by Plowman Craven in 2016, the subject property provides the following approximate Gross Internal Areas: Floor
Use
sq ft
sq m
Ground
Sales
14,421
1,339.80
First
Storage
13,880
1,289.50
Second
Plant
750
69.7
29,051
2,699.00
4 | Fawcett Mead Nuneaton – 5/6 Market Place
Retail property expertise
TENURE
INVESTMENT COMPARABLES
Freehold
We consider that the subject property offers an attractive opportunity to purchase a highly secure, five and a half year income stream in a dominant retailing centre at a price which compares favourably with similar recent market transactions. These include:
TENANCY The property is let in its entirety to Poundland Ltd on a full repairing and insuring lease for a term of 10 years, commencing on 3rd August 2012 and expiring on 2nd August 2022. The lease is subject to an upward only rent review on 3rd August 2017. The current rent is £190,000 per annum.
5 | Fawcett Mead Nuneaton – 5/6 Market Place
Town East Grinstead Derby
Tenant
Expiry
Poundland
2024
Poundstretcher
2020
Poundland
2027
Price
NIY
Date
£2,700,000
6.44%
Available
£3,300,000
7.69%
Dec 2016
Kieran Mullin
2018
Clacton-on-Sea
Poundland
2026
£2,460,000
6.50%
Oct 2016
Newcastle-under-Lyme
Poundland
2026
£1,800,000
7.30%
Sep 2016
Gillingham
Poundland
2024
£1,400,000
6.75%
Aug 2016
Retail property expertise
RENTAL COMMENTARY
COVENANT INFORMATION
We have analysed the passing rent in respect of 5/6 Market Place to reflect a low overall rate of £6.54 per sq ft.
Poundland Limited is a British variety store chain founded in 1990. Today the company operates from over 800 stores and employs approximately 10,000 members of staff. Poundland Limited has reported the following figures in their annual accounts:
It is our opinion that this compares favourably with other large stores both within Nuneaton and within competing retail centres. A full schedule of comparable evidence is available upon request.
6 | Fawcett Mead Nuneaton – 5/6 Market Place
27/03/2016
29/03/2015
30/03/2014
Turnover
£1,214,818,000
£1,111,526,000
£997,803,000
Pre-Tax Profit
£34,653,000
£45,922,000
£41,017,000
Net Worth
£20,520,000
£93,866,000
£96,235,000
Retail property expertise
EPC A full copy of the EPC is available upon request.
VAT The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL We are instructed to seek offers in excess of £2,233,000 (Two Million Two Hundred and Thirty Three Thousand Pounds) subject to contract and exclusive of VAT, for our clients freehold interest in the subject property. A purchase at this level would reflect an attractive net initial yield of 8.00%, assuming purchasers costs of 6.33%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agent: Jonathan Mills +44 (0)20 7182 7483 +44 (0)7795 333 195 [email protected] Joe Baio +44 (0)20 7182 7489 +44 (0)7515 889 649 [email protected]
www.fawcettmead.co.uk Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 | SUBJECT TO CONTRACT
