CALDY VALLEY ROAD I CHESTER I CH3 5QZ CALDY VALLEY … · 2017-09-25 · west of Manchester and 76...

C A L D Y V A L L E Y R O A D I C H E S T E R I C H 3 5 Q Z

CALDY VALLEY RETAIL PARKW E L L S E C U R E D M U L T I L E T R E T A I L W A R E H O U S E I N V E S T M E N T O P P O R T U N I T Y

A55NORTH WALESEXPRESSWAY

CALDYVALLEY ROAD

SAINSBURY’S

PETROL FILLINGSTATION

f J12 M53

PREMIER INN

BREWERS FAYRE

CALDY VALLEY RETAIL PARK C A L D Y V A L L E Y R O A D I C H E S T E R I C H 3 5 Q Z

• A retail park comprising four well configured units adjacent to a substantial Sainsbury’s foodstore and petrol filling station

• Strategically located on the south east side of Chester on the A41 city ring road with little immediate competition

• Affluent catchment population ranking 19th on PMA Affluence Indicator

• Weighted Average Unexpired Lease Term (WAULT) of 8.4 years

• Well secured to Halfords, Pets at Home, B&M and Rightway

• A total area of 35,081 sq ft (3,259 sq m)

• Car parking ratio of 1:171

• Total current rent of £424,638 per annum exclusive reflecting a low average rental of £12.10 psf

• Freehold

• Reversionary - next rent review August 2018

• Offers in the region of £6,125,000 (Six Million, One Hundred and Twenty Five Thousand Pounds), Subject to Contract & Exclusive of VAT reflecting a net initial yield of 6.50%, rising to an estimated reversionary yield of 6.74%, allowing for usual purchasers costs of 6.63%

INVESTMENT SUMMARY

LOCATIONChester is an attractive and affluent cathedral city located in the North West of England. It has rich history stemming from Roman times and it is currently the principle and commercial centre for Cheshire. It is located 19 miles (31km) south of Liverpool, 40 miles (60km) south west of Manchester and 76 miles (122km) north-west of Birmingham. The city is also in close proximity to North Wales providing access to popular mountain and seaside resorts.

Chester has excellent road communications with the M56 and M53 located within 4 miles (6km) of the northern edge of the city providing direct access to the M6 (Junction 9), linking conveniently to Manchester and Liverpool respectively. The A483 connects Chester to Wrexham and central Wales to the south west and the A55 Expressway skirts Chester’s southern edge providing access to the North Wales coast and the ferry port of Holyhead.

DEMOGRAPHICSCategorised as a ‘Regional Centre’ by PMA, Chester serves a very large and affluent primary catchment area of 810,000 people with a shopping population of 324,000. Its extensive catchment extends from Ellesmere Port in the north to Wrexham and Nantwich in the south. The city benefits from a diverse retail offer which attracts shoppers from outside its primary catchment area as well as spending from tourists and visitors.

Within a 10 minute drive time of the subject property there is a total population of 75,566 comprising 33,456 households. Within a drive time of 20 minutes, this catchment increases to 366,497 persons and draws from key centres such as Ellesmere Port, Deeside, Wrexham and Runcorn.

The catchment population is affluent, containing a significantly above average proportion of adults within the most affluent AB social group as well as social group C1 which is also over-represented. Car ownership is significantly above average with a particularly high proportion of 2 car households. Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are above the PROMIS average.

NEWCASTLE

TEESSIDE

CARLISLE

LEEDS &BRADFORD

EASTMIDLANDS

41

40

42

43

44

60

61

62

63

65

64

59

1920

25

24

26

28

29

27

3

1

30

3433 32

31

34

36

35

34

36

37

38

37

38

4

15

23

4

5

4347

30

31 3233 34

36

24

25

26

1

27

41

40

39

38

37

23

17

220

22

153

5

20

4 7

23

12

11 10

56

7

12

98

5

10

16

3

16

17

18

19

14

15

32

6

4930

14

104

3

35

33

34

38

37

36

56

57

6

21

3

24

26

18

7

5

8

9

14

12

2

4

3

110

21a

M6

A1(M)

M1M6

M6

M1M53

M56

M56

M58

M61

M60

M60

A580

M62

M62

M6M66

M65

M1

M62

M62

A1(M)

M621

M180

M181

M55

M6

M6

M18

M180

A1(M)

A470

A5

A5

A487

A55

A470

A41

A49

A442

A53

A50

A515

A516

A52

A52

A51

A525

A49

A53

A41

A515

A523

A50

A518A51

A53

A54

A50

A530

A534

A52

A6

A38

A6A500A534

A41

A51

A495

A49

A556

A537

A623

A619

A61A537

A619

A60

A55

A629

A628

A62

A58

A59

A59

A565

A58

A58

A57

A57

A1

A696

A68

A69 A69

A19

A1

A19

A68

A68

A167

A691

A692

A1

A963

A689A689

A688

A66

A19

A172

A19

A596

A75

A590

A591

A685A595

A689

A66

A590

A6068

A65

A683

A65

A171

A170

A63

A614

A165

A1079

(A163)

A166

(A166)

A165

A64

A164

A1035

A614

A165A614

A160A15

A63

A19

A645A1041

A159

A15

A631

A46

A46

A16

A52

A158

A1121

A52

A16

A17

A617

A6097

A46

A52

A607

A52

A606

A1

A631

A156

A158

A16

A607

A614

A170

A1

A168

A19

A59

A64

A61

A59

A59

A61

A635

A15

A616

A61

A638

A57

A57

A1

A1A63

A650

A15

A453

A17

A65

A58

A483A494

A5

A55

A670

A17

A17

A151

A148

A148

A5

A494

A5

A470

Consett

Ponteland

Durham

Spennymoor

Morpeth

Bishop AucklandPenrith

Whitby

Redcar

Scarborough

Northallerton

Appleby-in-Westmorland

Whitehaven

Workington

Ulverston

Morecambe

Clitheroe

Accrington

Skipton

Rawtenstall BrighouseBatley

Dewsbury

Beverley

Ripon

Knaresborough

Bridlington

Chorley

Darwen

Lytham St Anne's

Formby

Leyland

SkelmersdaleOrmskirk

Blyth

Gosforth

Jarrow

Tynemouth

Whitley Bay

Houghton le Spring

PeterleeBrandon

Stanley

King'sLynn

Melton Mowbray

Boston

SpaldingLoughborough

Otley

Selby

Retford

Gainsborough

Goole

Thorne

Pontefract

Tadcaster

Kendal

Heysham

Fleetwood

Lancaster

Ilkley

YeadonBingley

ShipleyGarforth

Castleford

Cheadle

Sutton in Ashfield

Kirkby in Ashfield

Dronfield Worksop

Staveley

Hemsworth

Newark-on-Trent

GranthamLong Eaton

Beeston

Cleethorpes

Immingham

Northwich

Frodsham

Leek

Congleton

Hucknall

ClayCross

EastwoodBelper

Ripley

Ilkeston

Matlock

Kirkby

Llandudno

Prestatyn

RhylColwyn Bay

AbergeleConwy

Bangor

Holyhead

Oswestry

NantwichWrexham

UttoxeterStone

Sandbach

Ashbourne

Macclesfield Buxton

Louth

Sale

Altrincham

Knutsford

Carlisle

Hartlepool

Middlesbrough

Darlington

Barrow-in-Furness

Burnley

Blackburn

Keighley

Halifax

Huddersfield

Bury

Rochdale

Middleton

Bolton

Preston

Blackpool

Southport

Crosby

Wigan

South Shields

Gateshead

Washington

Harrogate

York

Chesterfield

Scunthorpe

Wakefield

Barnsley

Rotherham

Doncaster

Mansfield

Lincoln

Grimsby

Bootle

WidnesRuncorn

St HelensWallasey

Birkenhead

EllesmerePort

Warrington

Newcastle-under-Lyme

Sta�ord

Crewe

Burton uponTrent

CHESTER

HULL

MANCHESTER

LIVERPOOL

NEWCASTLE UPON TYNE

SUNDERLAND

LEEDS

SHEFFIELD

NOTTINGHAM

DERBY

PORT OFLIVERPOOL

LIVERPOOLJOHN LENNON

AIRPORT

MANCHESTERINTERNATIONAL

AIRPORT

CALDY VALLEYRETAIL PARK

PRIMARY CATCHMENT OF 810,000

SHOPPINGPOPULATION OF 324,000

76,000 WITHIN10 MIN DRIVE

OF SITE

CATCHMENTPOPULATION IS AFFLUENT


OUT OFTOWN RETAIL PROVISIONRetail warehouse supply in Chester is estimated at 2,539,000 sq ft (235,881 sq m). The majority of the retail warehousing provision is concentrated to the west of the city centre consisting of three retail parks.

Greyhound Retail Park is the largest within the catchment and is located approximately one mile west of the Chester City Centre. Most of its occupiers are traditionally bulky goods operators with the notable exceptions of John Lewis, Asda, Boots, Argos and Next. Chester Retail Park offers a selection of discount stores such as Maplin, Hobbycraft, Poundland and Mothercare, Sports Direct, TK Maxx and Outfit. Restaurants serving the retail park are McDonalds and Pizza Hut. Deva Retail Centre is a bulky goods retail park with tenants such as Currys/PC World Megastore, Harveys, Furniture Village and Magnet.

Also within Chester, is St David’s Retail Park located in Saltney, to the south west of the city centre; this small development accommodates Poundstretcher Extra, Able World and Farmfoods. A cluster of three small stores is situated on Tarvin Road; these are occupied by Aldi, Home Bargains and The Carpet Factory.

SITUATIONCaldy Valley Retail Park occupies a prominent, highly accessible position to the south east of Chester city centre. It is strategically located adjacent to the A41 ring road and close to its junction with the A55 North Wales Expressway.

The park is located approximately 3 miles (5 km) from the city centre and lies directly adjacent to a 72,500 sq ft (6,735 sq m) Sainsbury’s food store and petrol filling station (not within the ownership) and close to a Premier Inn and Brewers Fayre restaurant. The immediate surrounding areas are predominantly residential.

ChesterRail

A56HOOLEROAD

A41RINGROAD

A55NORTHWALES

EXPRESSWAY

A5115CHRISTLETON

ROAD

A483

A548

A5104

LIVERPOOLROAD

A548SEALAND

ROAD

A540

A5480BUMPERS

LANE

B5130

SAUGHALLROAD

A548 A51VICARS CROSS

ROAD

A41

A51

HOOLELANE

CALDYVALLEY ROAD

CHESTERBOUGHTON

GREATBOUGHTON

VICARSCROSS

SALTNEY

HOOLE

CHESTERGOLF CLUB CHESTER

RACECOURSE

WESTMINSTER PARKCRICKET CLUB

WEST CHESHIRECOLLEGE CAMPUS

CHESTERCATHEDRAL

EASTGATE &EASTGATE CLOCK

CHESTER CASTLEAGRICOLA TOWER& CASTLE WALLS

BOUGHTONHEATH

PARK & RIDE

MERCURE CHESTERABBOTS WELL

CHESTERFOOTBALL CLUB

Greyhound Retail ParkPhase 1119,119 sq ftPark A1 / Part Bulky GoodsPC World, Next, Argos

Sealand Road186,466 sq ftB&Q, Wickes

St David's Retail ParkPoundstretcher,Farmfoods

Stadium Way38,327 sq ftMatalan, Staples

Greyhound Retail ParkPhase 2185,889 sq ftCarpetright, Dunelm, DFS,John Lewis

Deva Retail Centre80,097 sq ftBulky GoodsMagnet, Currys PC World,Furniture Village

Broughton Shopping Park224,999 sq ftA1 line upBoots, River Island

Chester Retail Park149,582 sq ftPart A1 / Part Bulky GoodsHomebase, TK Maxx, Toys R Us,Tesco Homeplus, Mothercare

Centurion Point29,275 sq ftOpen A1 non-foodLaura Ashley, Multiyork,Majestic Wine, Carphone Warehouse,Rileys Snooker Hall

Tarvin Road38,168 sq ftAldi, Home Bargains andCarpet Factory (sub tenant)

CALDY VALLEYRETAIL PARK

35,081 sq ftPets at Home, Halfords,

B&M, Rightway

DESCRIPTIONThe property comprises a modern well configured retail park of approximately 35,081 sq ft (3,259 sq m), arranged in a terrace of four units. The property benefits from 206 car parking spaces, providing a car parking ratio of 1:171 sq ft.

The park was developed in 1996 incorporating one terrace with the main vehicular entrance to the north of the park and servicing to the rear. The units offer modern flexible accommodation. Both Halfords and Rightway have mezzanine floors which are tenant’s improvements and not rentalised at rent review.

The site area is approximately 2.91 acres.

TENUREThe property is held freehold.


Rightway

Pets at Home

Halfords

PLANNINGCheshire West & Chester Council granted a planning permission in March 1995 for the erection of 4 retail units with a restriction on the sale of clothing, food, shoes and fashion accessories.

However we believe that the local planning authority would be receptive to the relaxation of a change of use (open A1, non-food with limitations) as evidenced by the planning history of the property set out below.

• Unit 1 - Consent given to use part of the premises as a pet care and treatment centre ‘Companion Care Facility’ - March 2013

• Unit 2 - Consent given to install a 3,745 sq ft (348 sq m) mezzanine. Permission restricted to the sale of bulky goods, auto products, bicycles and bike products and preventing sale of food, clothing footwear and fashion - April 1996

• Unit 4 - Consent given to sell food, drink and confectionary up to 807 sq ft (75 sq m) and non-fashion clothing of up to 269 sq ft (25 sq m) - July 2013


TENANCY SCHEDULEUnit Tenant

Approx Area*(sq ft)

Lease Start

Lease End

Unexpired Term

(Expiry)Current

Rent (PA)Rent(psf)

ERV (OMV)

ERVRate

Rent Reviews TBO Comments

1 Pets at Home Ltd 10,036 25/12/1995 24/12/2025 8.36 £125,000 £12.46 £125,000 £12.46 25/12/2020 N/A 5 year reversionary lease has been agreed from 25/12/2020. Rent free from 16/02/2017.

2 Halfords Ltd 7,571 25/12/1995 24/12/2025 8.36 £94,638 £12.50 £94,638 £12.50 25/12/2020 N/A 5 year reversionary lease has been agreed from 25/12/2020. Rent free from 29/09/2017 to 27/02/2018 allowing for an offset against back rent.

3 Rightway Ltd 7,500 25/11/2013 24/11/2028 11.28 £100,000 £13.33 £93,750 £12.50 25/11/201825/11/2023 24/11/2024

4 B&M Retail Ltd 9,974 05/08/2013 04/08/2023 5.97 £105,000 £10.53 £127,169 £12.75 05/08/2018 N/ARent at review is to the lower of OMV or capped at the percentage increase in the RPI index over the 5 year period. The tenants service charge contribution is capped at £14,193 pa, increasing by RPI annually.

TOTALS 35,081 8.4 £424,638 £440,557

* Halfords and Rightway have mezzanine floors.

CURRENT INCOME PAXThe property produces an income of £424,638 per annum exclusive.

SERVICE CHARGEA service charge operates on the park. The current budget period runs to 30th June 2018 and totals £49,040 pa which is fully recoverable. B&M have a service charge cap linked to RPI (£14,193 pa). There are no landlord shortfalls. Further details available on request.

24%

76%

■ National ■ Regional

24%

76%

■ National ■ Regional

INCOME PROFILEBY COVENANT


TENANT COVENANT STRENGTHTenant Financial Year End Turnover Profit (Loss) Net Worth D&B Rating Comments

Pets at Home Ltd(1822577) 26 Mar 2015 £689,697,000 £79,920,000 £517,138,000 5A 1 Pets at Home is the United Kingdom’s largest pet supplies retailer, with more than 370 stores (16 opened this year)

and 6,000 employees. The Plc is listed on the London Stock Exchange and has reported a revenue rise of 5% in 2017.

Halfords Ltd(103161) 1 April 2016 £866,100,000 £86,000,000 £655,900,000 5A 1

Halfords is a British retailer of car parts, car enhancement, camping and touring equipment and bicycles operating in the United Kingdom and Ireland from circa 460 stores, employing 10,000 people. The Halfords Autocentre brand also provide MOT, service and repairs in the United Kingdom operating from 313 sites. Halfords Group is listed on the London Stock Exchange. Preliminary Like for Like revenues of year ending April 2017 are up 2.7%.

Rightway Ltd(4519604) 31 Mar 2016 N/A N/A £999,697 1A 2

Rightway Ltd are a long established hardware, gardening and DIY retailer based in North Wales, the Welsh Borders, Cheshire and the Wirral. Originally two separate companies Rightway purchased W. Bevans & Sons in 2008 and now operate as one customer facing business under the two brand names. They currently operate from 20 stores.

B&M Retail Ltd(1357507) 26 Mar 2016 £1,902,557,000 £168,121,000 £440,372,000 5A 1

B&M is one of the United Kingdoms leading variety retailers operating from over 540 stores, employing over 22,000 people. The group which is listed on the London Stock Exchange recently added 251 sites to its portfolio through the acquisition of Heron Foods in August 2017 for a reported £152m.



ASSET MANAGEMENT OPPORTUNITIES• An opportunity to erect a further unit or ‘pod’ in the car park subject to planning permission. Initial exploration discussions with a national multiple tenant have been held, but no terms have been agreed yet.

• Look to crystallise a rental uplift on Unit 4 (B&M) in August 2018.

• We believe the rental tone is low in comparison to the retail warehouse provision elsewhere in Chester. While two rent reviews have recently been agreed, we believe there is further scope for rental growth in the short to medium term.

EPC RATINGUnit Tenant EPC RatingUnit 1 Pets at Home Ltd E-115 Unit 2 Halfords B-43Unit 3 Rightway B-44Unit 4 B&M Retail D-100

CONTACTSFor further details, access to the data room or to arrange an inspection please contact:

David Freeman020 7659 [email protected]

Ed Smith020 7659 [email protected]

Patrick Over 020 7659 [email protected]

Simona Malinova 020 7659 [email protected]

VATThe property has been elected for VAT which will therefore be chargeable on the sale price unless the transaction can be treated as a Transfer of Going Concern (TOGC).

PROPOSALOur client is seeking offers in excess of £6,125,000 (Six Million, One Hundred and Twenty Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 6.50%, rising to an estimated reversionary yield of 6.74%, allowing assuming purchasers costs of 6.65%. Subject to contract and exclusive of VAT.

The agents for themselves and for the vendors or lessors of the property whose agents they are give notice that: (i) these particulars are given without responsibility of The agents or the vendors or lessors as a general outline only for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) The agents cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details con-tained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of The agents (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury caused by the negligence of The agents, its employees or servants, The agents will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently. September 2017.Designed and produced by Creativeworld Tel: 01282 858200.


CALDY VALLEY ROAD I CHESTER I CH3 5QZ CALDY VALLEY … · 2017-09-25 · west of Manchester and 76...

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Transcript of CALDY VALLEY ROAD I CHESTER I CH3 5QZ CALDY VALLEY … · 2017-09-25 · west of Manchester and 76...