NEASHAM ROAD RETAIL CENTRE - Allsop

NEASHAM ROAD RETAIL CENTRE DARLINGTON DL1 4PF

CLASS E RETAIL PARK INVESTMENT

Outline for indicative purposes only.

NEASHAM ROAD RETAIL CENTRE DARLINGTON DL1 4PF CLASS E RETAIL PARK INVESTMENT

DARLINGTON TRAIN STATION

For illustrative purposes only.


INVESTMENT CONSIDERATIONS

■ Darlington is a large market town in County Durham

■ Well located purpose built Retail Park a short walk from the town centre adjacent to Darlington Train Station

■ Over 180,000 people live within a 20 minute drive time catchment of the town

■ Freehold

■ Total floor area of 67,444 sq ft

■ Class E Retail Park with Unit 5 Sui Generis planning consent

■ Fully let to the national covenants of Matalan, Farmfoods, Ladbrokes and Asda (long leasehold)

■ Total rent of £715,000 per annum averaging £10.60 psf

■ WAULT of 6.7 years

■ Within the last 3 months Farmfoods has extended their occupation into unit 2 and Ladbrokes has regeared their lease

■ Asset management opportunities include restructuring Matalan’s lease and development of additional units on the site. Planning permissions have now lapsed for an additional two units totalling 2,300 sq ft and an additional five units totalling 3,600 sq ft

■ Offers sought in excess of £6,000,000 (Six Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects £89 psf and an attractive net initial yield of 11.18% assuming standard purchaser’s costs


DurhamTees Valley International Airport

M11

M25M25M40

M50

M48

M27

M27

M3

M4M4

M23M20

M2

M40

M42

M6 TollM54

M42

M1

M6M5

M5

M5

M74M77

M8

M9

M80

M73

A1

A23

A428

A14

A43

A47

A11

A11A1(M)

A1(M)

A1(M)

A1(M)

A1(M)

M62

M18

M6

M6

M1

M1

M62

M62M53

M65M55

M58M60

A1

A1

A1

A66

A68

A69

A59

A629

A64

A63

A61 A170

A166

A164

A165A65

A6

A66

A19

A19

A171

southampton

Carlisle

Northampton

Buxton

Scunthorpe

ReadingSwindon

Newark-on-trent

Lincoln

Blackpool

Durham

MANCHESTER

BRISTOL

PLYMOUTH

LONDON

BIRMINGHAM

CAMBRIDGE

LIVERPOOL

EDINBURGH

YORK

GLASGOW

SWANSEA

CARDIFF

LEEDSHULL

PORTSMOUTH BRIGHTON

EXETER

DOVER

OXFORD

MILTONKEYNES

LUTON

BEDFORD

BATH

GLOUCESTERCHELTENHAM

WORCESTER STRATFORDUPON-AVON

SHEFFIELD

NORWICH

IPSWICH

PERTHDUNDEE

ABERDEEN

DARLINGTON

NEWCASTLEUPON TYNE

MIDDLESBROUGH

SUNDERLAND


For indicative purposes only.

VICTORIA ROAD

PARK

LAN

E

PARK

PLA

CE

B6280

BO

ROU

GH

RD

BRUNSWICK ST

TUBWELL ROW

EAST ST

FEEL

HAM

S

E RO

W

CONSCLIFFE RD

HOUNDGATE

GRA

NG

E R

D

RUSSELL ST

FR

EEM

ANS

PLAC

E

LARCH

FIELD S

T

FOUR

RIG

GS

SKI

NN

ERG

ATE

DUKE ST

STAN

HO

PE R

OAD

NO

RTH

STAN

HO

PE RO

AD S

OU

T

H

HARG

REAV

E TE

RR

ACE

WH

ESS

OE RO

AD

CLEVELAND STREET

ALBERT ROAD

BONOMI WAY

WHESSOE ROAD

HOPETOWN LANE

OTLEY TERRACE

BRINKBURN ROADANNS TERRACE

ALLIA

NCE S

T

MEY

NELL

RD

CRO

SS S

TREE

T

DENMARK STREET

WILLIAM STREET

NORTHCOTE TERRACE

SURTEES STREETFAIR

FIEL

D S

TREE

T

WIL

SON

STR

EET

STATION

RO

AD

MCNAY STREET

VALL

EY S

TREE

T N

OR

TH

B627

9

GR

EENB

ANK R

OAD

EASO

N R

OAD

WIDDOWFIELD ST

E MOUNT ROAD

CHESNUT ST

GLADSTONE STREET

CORPORATION ROAD

HENRY ST

EDM

UND

ST

YARM ROAD B6280

YARM ROAD

MCM

ULLEN

ROAD

B6279 B6279

YARN ROAD

HU

ND

ENS LAN

E

NEASH

AM RO

AD

EASTBOURNE ROAD

ABBEY ROAD

PA RKSIDE

PARKSIDE

A67

Conis

cliffe

Roa

d

CLIF

TON

RO

AD

SMITHFIELD ROAD

A68A68

A167

A16

7

A167

A167

A66

A66

A66

A66

A68

A167

A1

67

Nor

th R

oad

DARLINGTON

Sainsbury’s Superstore

TOWN CENTRE

River Skerne

NORTH ROAD

HAUGHTONLE SKERNE

EASTBOURNE

DARLINGTON

DARLINGTONRETAIL PARK

LOCATION

Darlington is located within the County of Durham in the north-east of England. The town is situated approximately 16 miles to the west of Middlesbrough and 37 miles south of Newcastle-upon-Tyne.

Darlington benefits from excellent road and rail connections being located approximately 2 miles from J57 and J58 of the A1(M) providing access to Newcastle Upon Tyne to the north, Doncaster and London to the south.

The A66, 1 mile to the south of Darlington provides access to Middlesbrough to the east and Cumbria and the M6 to the west.

Darlington Railway Station provides direct services to Middlesbrough, Newcastle and London Kings Cross with approximate journey times of 26 minutes, 28 minutes and 2 hours 20 minutes respectively.

Durham Tees Valley International airport lies approximately 8 miles to the east of the town centre.

ROAD

Newcastle Upon Tyne 44.5 miles

Leeds 64 miles

Doncaster 80 miles

AIR

Durham Tees Valley International airport 8 miles

RAIL

Middlesbrough 26 mins

Newcastle-upon-Tyne 28 mins

London Kings Cross 2h 20 mins




SITUATIONThe property is prominently positioned on Neasham Road in a predominantly residential area. Neasham Road is a main arterial road connecting the B6280 Yarm Road to the north and the A66 to the south. Neasham Road Retail Centre is situated a 5 minute walk from Darlington train station and a 10 minute walk from Darlington town centre.


PLANNING CONSENT HAS NOW LAPSED FOR 2 UNITS

TOTALLING 2,300 SQ FT

THE PREVIOUS PLANNING APPLICATION HAS NOW LAPSED FOR A RETAIL TERRACE OF 5 UNITS TOTALLING

3,600 SQ FT

PERSIMMON HOMES DEVELOPMENT

DARLINGTON TRAIN STATION

DARLINGTON TOWN CENTRE

Outline for indicative purposes only.For illustrative purposes only.


© Crown Copyright, ES 100004106. For identification purposes only.

47.2m

46.9m

46.9m

TCB

LB

BANK TOP MEWS

LEONARD STREET

WALTON STREET

BANK TOP

1

19

30

El Sub Sta

4

32

45

12

30

31

77

75

13

El Sub Sta

32

29

20

2

14

108

55

54

120

2

22

33

106

15

16

4481

21

102

41 to 5

5

Shelter

47.2m

APPLEBYCLOSE

71

69

65

63

Surgery

67

55

2

11

11

27

2

18

29 to 39

57 to 6

7

0m 10m 20m 30m

Darlington, DL1 4PF

Ordnance Survey © Crown Copyright 2018. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1424

DESCRIPTION

The property comprises five retail units extending to 67,444 sq ft GIA. The units are of steel portal frame construction with brick elevations. Servicing is to the rear.

Internally all units are fitted out to the individual tenant’s specification.

There are approximately 323 car parking spaces providing an attractive ratio of 1:208 sq ft.

PLANNING

Unit 1 Class E

Units 2 & 3 Class E

Unit 4 Class E

Unit 5 Sui Generis

SITE AREA

The property has a site area of 4.88 acres (1.976 ha) providing a low site cover of 32%.

TENURE

Freehold.


ASDA unit sold off on Long Leasehold.



TENANCY SCHEDULE

COVENANT INFORMATION

Matalan Retail Limited Company number 2103564. Experian Low Risk

Matalan is a British fashion and homewear retail established in 1985. The company operate from 231 UK stores and 40 international franchise stores.

The ultimate parent company of Matalan is Missouri Topco Limited, with the group being ultimately controlled by the Hargreaves family.

Matalan grew its online offering by 84% in the five-week Christmas period, representing the retailer’s push to become omnichannel through investment in supply chain capacity and order fulfilment from stores.

29/02/2020 23/02/2019 24/02/2018

Turnover £1,129,400,000 £1,103,900,000 £1,062,500,000

Pre Tax Profit £-22,000,000 £28,300,000 £29,800,000

Total Net Worth £280,700,000 £305,300,000 £252,600,000

Farmfoods Limited Company number SC030186. Experian Very Low Risk

Farmfoods is a family business established in 1954 operating a chain of frozen food stores. The company occupy over 300 stores and 4 distribution centres nationwide employing around 4,000 people.

28/12/2019 29/12/2018 30/12/2017

Turnover £661,754,000 £660,304,000 £642,676,000

Pre Tax Profit £22,148,000 £12,101,000 £11,123,000

Total Net Worth £112,514,000 £102,879,000 £96,171,000

Ladbrokes Betting & Gaming Limited Company number 775667. Experian Very Low Risk

Ladbrokes Coral Group plc is a British-based betting and gambling company. In 2016, Ladbrokes acquired its rival, Gala Coral Group, and changed its name to Ladbrokes Coral.

Ladbrokes has more than 2,700 retail betting shops in the UK, Ireland, Belgium and Spain with more than 800,000 customers.

31/12/2019 31/12/2018 31/12/2017

Turnover £983,371,000 £732,366,000 £766,519,000

Pre Tax Profit £462,204,000 -£43,794,000 -£166,483,000

Total Net Worth £1,117,459,000 £730,285,000 £761,750,000

Unit Tenant Area (sq ft) Area (sq m) Lease Start Lease Expiry Next Review Rent (pa) Rent (psf) Comment

1 Matalan Retail Ltd 46,124 4,285 01/07/2002 30/06/2027 01/06/2017 £600,000 £13.01

2 & 3 Farmfoods Limited 9,140 849 01/03/2021 28/02/2036 01/03/2026 £80,000 £8.75Farmfoods have recently extended into Unit 2 and regeared their lease. The vendor will top up the 18 months rent free.

4 Asda Stores Limited 10,180 946 08/09/2004 07/09/2129 £0 £0 Asda unit sold off long leasehold.

5Ladbrokes Betting and Gaming Limited

2,000 186 25/12/2020 24/12/2025 £21,000 £10.50Ladbrokes have been in occupation since 2004 and have recently extended their lease.

ATM Cardtronics UK Limited 01/01/2017 31/12/2021 £14,000 Tenant has expressed an interest to extend their lease.

Total 67,444 6,266 £715,000 £10.60*

*Not inclusive of unit 4.


RETAIL WAREHOUSING IN DARLINGTON

The retail warehouse provision in Darlington is predominantly based between three retail parks:- Darlington Retail Park, Darlington North Retail Park and Neasham Road Retail Centre.

Darlington Retail Park comprises a 154,056 sq ft Open A1 (non food) scheme approximately 2 miles to the east of the town centre. Tenants include Carpetright, Currys/PC World, DFS, Costa Coffee, Wren Living, Furniture Village, Harveys, Home Bargains, The Range, KFC, Pets at Home, ScS and TKMaxx. Rents range between £11.25 per sq ft to £18.70 per sq ft.

Darlington North Retail Park comprises a 41,993 sq ft Open A1 scheme approximately 2 miles north of the town centre close to Darlington North train station. Tenants include Aldi, Iceland, Poundland, Subway, Greggs, Barnardo’s, Card Factory, and KFC. Rents range between £13.74 per sq ft to £23.61 per sq ft.

DEVELOPMENT / ASSET MANAGEMENT OPPORTUNITIES

The property offers a number of both short and long term asset management and redevelopment opportunities (subject to gaining all the necessary consents):

• Develop additional units. Planning permission was granted (Ref:15/00977/ FUL) to build a retail terrace totalling 2,300 sq ft across two units, however this has now lapsed.

• Regear Matalan leases.

• Planning permission was previously granted and has since lapsed for a new retail terrace totalling 3,600 sq ft. The permission consisted of five units ranging between 500 – 1,000 sq ft for uses within class A1, A2 and A5, subject to agreement on re-allocation of car parking with existing tenants.

VICTORIA ROAD

PARK

LAN

E

PARK

PLA

CE

B6280

BO

ROU

GH

RD

BRUNSWICK ST

TUBWELL ROW

EAST ST

FEEL

HAM

S

E RO

W

CONSCLIFFE RD

HOUNDGATE

GRA

NG

E R

D

RUSSELL ST

FR

EEM

ANS

PL

ACE

LARCH

FIELD S

T

FOUR

RIG

GS

SKI

NN

ERG

ATE

DUKE ST

STAN

HO

PE R

OAD

NO

RTH

STAN

HO

PE RO

AD S

OU

T

H

HARG

REAV

E TE

RR

ACE

WH

ESS

OE RO

AD

CLEVELAND STREET

ALBERT ROAD

BONOMI WAY

WHESSOE ROAD

HOPETOWN LANE

OTLEY TERRACE

BRINKBURN ROADANNS TERRACE

ALLIA

NCE S

T

MEY

NELL

RD

CRO

SS S

TREE

T

DENMARK STREET

WILLIAM STREET

NORTHCOTE TERRACE

SURTEES STREETFAIR

FIEL

D S

TREE

T

WIL

SON

STR

EET

STATION

RO

AD

MCNAY STREET

VALL

EY S

TREE

T N

OR

TH

B627

9

GR

EENB

ANK R

OAD

EASO

N R

OAD

WIDDOWFIELD ST

E MOUNT ROAD

CHESNUT ST

GLADSTONE STREET

CORPORATION ROAD

HENRY ST

EDM

UND

ST

YARM ROAD B6280

YARM ROAD

MCM

ULLEN

ROAD

B6279 B6279

YARN ROAD

HU

ND

ENS LAN

E

NEASH

AM RO

AD

EASTBOURNE ROAD

ABBEY ROAD

PA RKSIDE

PARKSIDE

A67

Conis

cliffe

Roa

d

CLIF

TON

RO

AD

SMITHFIELD ROAD

A68A68

A167

A16

7

A167

A167

A66

A66

A66

A66

A68

A167

A1

67

Nor

th R

oad

DARLINGTON

Sainsbury’s Superstore

TOWN CENTRE

River Skerne

NORTH ROAD

HAUGHTONLE SKERNE

EASTBOURNE

DARLINGTON

DARLINGTONRETAIL PARKNEASHAM ROAD

RETAIL PARK

DARLINGTON NORTHRETAIL PARK


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 CommandD www.commandHQ.co.uk 04.21

SERVICE CHARGE

The service charge budget for the year ending 31st March 2022 is £45,620 per annum.

EPCAvailable upon request.

VATThe property has been elected for VAT, it is assumed that the transaction will be treated as a Transfer of a Going Concern (TOGC).

ANTI-MONEY-LAUNDERINGA successful bidder will be required to provide information to satisfy the AML requirements when Heads of Terms are agreed.

DATAROOMFurther information is provided in the dataroom. For access please register on the following website:

http://datarooms.allsop.co.uk/register/NeashamRoadDarlington

PROPOSALOffers sought in excess of £6,000,000 (Six Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects £89 psf and an attractive net initial yield of 11.18% assuming standard purchaser’s costs.

Dale Johnstone07788 [email protected]

For further information or to make arrangements for viewing please contact:

Lottie Hayward07817 [email protected] allsop.co.uk

NEASHAM ROAD RETAIL CENTRE - Allsop

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Transcript of NEASHAM ROAD RETAIL CENTRE - Allsop