skegness â 61/63 lumley road let to poundland ltd until july ... - Realla
SKEGNESS – 61/63 LUMLEY ROAD LET TO POUNDLAND LTD UNTIL JULY 2022 Sat Nav Ref: PE25 3LS
INVESTMENT SUMMARY • Skegness is a thriving seaside town, and the largest town on the Lincolnshire coast • The property occupies a 100% prime trading position on Lumley Road, opposite the entrance to the Hildreds Shopping Centre • The property comprises 14,952 sq ft (1,389.1 sq m) of well configured and flexible retail accommodation • Let to Poundland Ltd until July 2022 • Majority Freehold and part Long Leasehold • Total current income:
£195,000 per annum
• Price: £2,158,000 • Attractive Net Initial Yield:
2 | Fawcett Mead Skegness – 61/63 Lumley Road
8.50%
Retail property expertise
A1041
A63
A19 A1
A15 A180
A628
A1173
The property comprises a 100% prime trading position on Lumley Road
A18
A638 A46 A1103
Sheffield A156
A15 A46
A61 A16
A614
LOCATION
A158 A1
Skegness
A15 A6
Skegness is a thriving seaside town located within the county of Lincolnshire. The town is the largest resort town on the Lincolnshire coast, with resident population of approximately 20,000. The town is situated approximately 19 miles north of Boston, 37 miles east of Lincoln and 64 miles east of Nottingham.
A60 A17 A38
A46
A52
A610 A17
Nottingham
A52
A15 A52
Skegness is well connected to the national motorway network, with access to the A1 via the A52 which also provides access to the M1.
A17
A607 A50
A15
A46
A148
A606 A1
A42
Skegness railway station provides frequent services into Nottingham railway station with a fastest journey time of approximately 2 hours and 7 minutes. The nearest major airport is Humberside Airport, situated 49 miles north from the centre of Skegness.
DEMOGRAPHICS Skegness is a seaside town within the East Lindsey district of Lincolnshire, with a resident population of approximately 19,000. The town’s local economy is bolstered by the thriving tourist industry, which attracts over 4.2 million visitors each year, producing an estimated £376 million annual tourism spend. It was reported by the UK Tourist Board that Skegness is the 7th fastest growing tourist resort in the UK.
3 | Fawcett Mead Skegness – 61/63 Lumley Road
4.2 million
£376 million
visitors each year
annual tourism spend
Retail property expertise
RETAILING IN SKEGNESS Skegness provides a strong retail provision within an attractive centre, characterised by low vacancy rates which highlight the vitality of the town. The total retail catchment comprises 87,677 shoppers, producing an annual comparison goods spend of £40,200,000. Prime retailing in Skegness is focused on Lumley Road, which accommodates a number of popular national retailers including Beales Department Store, Clarks, New Look, Poundland and Dorothy Perkins. Lumley Road is supported by The Hildreds Shopping Centre which is anchored by Wilko, Home Bargains and Sports Direct.
SITUATION The property occupies a 100% prime trading position on Lumley Road, opposite the entrance to the Hildreds Shopping Centre. Retailers in the immediate vicinity include:
The property is serviced to the rear via Prince George Street.
DESCRIPTION The property provides one of the best large retail floorplates within Skegness and benefits from a prominent frontage onto Lumley Road. The unit is built of concrete framed construction with a fully glazed ground floor frontage. The property is arranged to provide well configured and flexible retail sales accommodation at ground floor, with ancillary accommodation over the first and second floors.
4 | Fawcett Mead Skegness – 61/63 Lumley Road
Retail property expertise
ACCOMMODATION Based upon a measured survey undertaken by Plowman Craven in 2016, the subject property provides the following approximate Gross Internal Areas: loor
Use
sq ft
sq m
Ground
Sales
7,002
650.5
First
Storage
6,467
600.8
Second
Storage
2,058
191.2
15,527
1,442.50
TENURE The majority of the property is held freehold, with a small part at the rear held long leasehold. The long leasehold element is held for a term of 197 years from 21st December 1959 at a rent of £200 per annum.
TENANCY The property is let in its entirety to Poundland Ltd on a full repairing and insuring lease for a term of ten years, commencing on 23rd July 2012 and expiring on 22nd July 2022. The lease is subject to an upward only rent review on 23rd July 2017. The current rent is £195,000 per annum.
5 | Fawcett Mead Skegness – 61/63 Lumley Road
Retail property expertise
COVENANT INFORMATION
RENTAL COMMENTARY
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:
We have analysed the passing rent in respect of 61/63 Lumley Street to reflect a low overall rate of £13.04 per sq ft.
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
6 | Fawcett Mead Skegness – 61/63 Lumley Road
It is our opinion that this compares favourably with other large stores both within Skegness and within competing retail centres. A full schedule of comparable evidence is available upon request.
Retail property expertise
INVESTMENT COMPARABLES 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: Town East Grinstead Derby
7 | Fawcett Mead Skegness – 61/63 Lumley Road
Tenant
Expiry
Poundland
2024
Poundstretcher
2020
Poundland
2027
Kieran Mullin
2018
Price
NIY
Date
£2,700,000
6.44%
Available
£3,300,000
7.69%
Dec 2016
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
Wolverhampton
Poundland
2027
£3,975,000
7.88%
Feb 2015
Retail property expertise
Key:
Freehold
Long Leasehold
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 £2,158,000 (Two Million One Hundred and Fifty Eight Thousand Pounds) subject to contract and exclusive of VAT, for our clients freehold and long leasehold interest in the subject property. A purchase at this level would reflect a net initial yield of 8.50%, assuming purchasers costs of 6.31%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agent: Jonathan Mills 020 7182 7483 07795 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 • Skegness is a thriving seaside town, and the largest town on the Lincolnshire coast • The property occupies a 100% prime trading position on Lumley Road, opposite the entrance to the Hildreds Shopping Centre • The property comprises 14,952 sq ft (1,389.1 sq m) of well configured and flexible retail accommodation • Let to Poundland Ltd until July 2022 • Majority Freehold and part Long Leasehold • Total current income:
£195,000 per annum
• Price: £2,158,000 • Attractive Net Initial Yield:
2 | Fawcett Mead Skegness – 61/63 Lumley Road
8.50%
Retail property expertise
A1041
A63
A19 A1
A15 A180
A628
A1173
The property comprises a 100% prime trading position on Lumley Road
A18
A638 A46 A1103
Sheffield A156
A15 A46
A61 A16
A614
LOCATION
A158 A1
Skegness
A15 A6
Skegness is a thriving seaside town located within the county of Lincolnshire. The town is the largest resort town on the Lincolnshire coast, with resident population of approximately 20,000. The town is situated approximately 19 miles north of Boston, 37 miles east of Lincoln and 64 miles east of Nottingham.
A60 A17 A38
A46
A52
A610 A17
Nottingham
A52
A15 A52
Skegness is well connected to the national motorway network, with access to the A1 via the A52 which also provides access to the M1.
A17
A607 A50
A15
A46
A148
A606 A1
A42
Skegness railway station provides frequent services into Nottingham railway station with a fastest journey time of approximately 2 hours and 7 minutes. The nearest major airport is Humberside Airport, situated 49 miles north from the centre of Skegness.
DEMOGRAPHICS Skegness is a seaside town within the East Lindsey district of Lincolnshire, with a resident population of approximately 19,000. The town’s local economy is bolstered by the thriving tourist industry, which attracts over 4.2 million visitors each year, producing an estimated £376 million annual tourism spend. It was reported by the UK Tourist Board that Skegness is the 7th fastest growing tourist resort in the UK.
3 | Fawcett Mead Skegness – 61/63 Lumley Road
4.2 million
£376 million
visitors each year
annual tourism spend
Retail property expertise
RETAILING IN SKEGNESS Skegness provides a strong retail provision within an attractive centre, characterised by low vacancy rates which highlight the vitality of the town. The total retail catchment comprises 87,677 shoppers, producing an annual comparison goods spend of £40,200,000. Prime retailing in Skegness is focused on Lumley Road, which accommodates a number of popular national retailers including Beales Department Store, Clarks, New Look, Poundland and Dorothy Perkins. Lumley Road is supported by The Hildreds Shopping Centre which is anchored by Wilko, Home Bargains and Sports Direct.
SITUATION The property occupies a 100% prime trading position on Lumley Road, opposite the entrance to the Hildreds Shopping Centre. Retailers in the immediate vicinity include:
The property is serviced to the rear via Prince George Street.
DESCRIPTION The property provides one of the best large retail floorplates within Skegness and benefits from a prominent frontage onto Lumley Road. The unit is built of concrete framed construction with a fully glazed ground floor frontage. The property is arranged to provide well configured and flexible retail sales accommodation at ground floor, with ancillary accommodation over the first and second floors.
4 | Fawcett Mead Skegness – 61/63 Lumley Road
Retail property expertise
ACCOMMODATION Based upon a measured survey undertaken by Plowman Craven in 2016, the subject property provides the following approximate Gross Internal Areas: loor
Use
sq ft
sq m
Ground
Sales
7,002
650.5
First
Storage
6,467
600.8
Second
Storage
2,058
191.2
15,527
1,442.50
TENURE The majority of the property is held freehold, with a small part at the rear held long leasehold. The long leasehold element is held for a term of 197 years from 21st December 1959 at a rent of £200 per annum.
TENANCY The property is let in its entirety to Poundland Ltd on a full repairing and insuring lease for a term of ten years, commencing on 23rd July 2012 and expiring on 22nd July 2022. The lease is subject to an upward only rent review on 23rd July 2017. The current rent is £195,000 per annum.
5 | Fawcett Mead Skegness – 61/63 Lumley Road
Retail property expertise
COVENANT INFORMATION
RENTAL COMMENTARY
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:
We have analysed the passing rent in respect of 61/63 Lumley Street to reflect a low overall rate of £13.04 per sq ft.
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
6 | Fawcett Mead Skegness – 61/63 Lumley Road
It is our opinion that this compares favourably with other large stores both within Skegness and within competing retail centres. A full schedule of comparable evidence is available upon request.
Retail property expertise
INVESTMENT COMPARABLES 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: Town East Grinstead Derby
7 | Fawcett Mead Skegness – 61/63 Lumley Road
Tenant
Expiry
Poundland
2024
Poundstretcher
2020
Poundland
2027
Kieran Mullin
2018
Price
NIY
Date
£2,700,000
6.44%
Available
£3,300,000
7.69%
Dec 2016
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
Wolverhampton
Poundland
2027
£3,975,000
7.88%
Feb 2015
Retail property expertise
Key:
Freehold
Long Leasehold
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 £2,158,000 (Two Million One Hundred and Fifty Eight Thousand Pounds) subject to contract and exclusive of VAT, for our clients freehold and long leasehold interest in the subject property. A purchase at this level would reflect a net initial yield of 8.50%, assuming purchasers costs of 6.31%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agent: Jonathan Mills 020 7182 7483 07795 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
