PIER STREET, BURNHAM-ON-SEA, SOMERSET, TA8 1BT

WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

/ Burnham-on-Sea is a large seaside town in Somerset within Sedgemoor District Council, located 11 miles south of Weston-super-Mare and 11 miles north of Bridgwater.

/ The subject property is prominently located on the seafront at the junction of South Esplanade and Pier Street.

/ Purpose built retail unit totalling 29,824 sq ft with 313 car parking spaces adjacent, providing a superb ratio of 1:95 sq ft.

/ Total passing rent of £451,500 pa, reflecting a rent of £15.14 per sq ft.

/ Large site area of 3.65 acres, 15% site coverage.

/ Freehold.

/ Open A1 planning consent.

/ The property is let to B&M Retail Ltd (5A1) with in excess of 7 years unexpired.

INVESTMENT SUMMARY

A purchase at this level reflects an attractive 7.00% Net Initial Yield, assuming 6.63% purchase costs.

£6,050,000(SIX MILLION AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT.

Our client is seeking offers in excess of

B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT2

A350

A303

A303A372

A36

A46

A39

A39

A37

A37

A39A39

A39

A358A396

A38

A371

A361

A359

A359

A361

A361

A370

A38

A38

A368

A368

A370

A371

A4

A4

A4

M5

M49

M48

M4

M4M4

M4

M4

M32

M5

M5

BARRY

NAILSEA CORSHAM

CHIPPENHAM

CASTLE COMBE

KEYNSHAMBOX

PORTISHEAD

CLEVEDON

FILTON

PATCHWAY

SIMONSBATH

MOLLAND

WINSFORD

EXFORD

DUNSTER

WIVELISCOMBE

MILVERTON

BISHOP’SLYDEARD

KILVE

WELLINGTON

NORTHPETHERTON

BRIDGWATER

CANNINGTON

HIGHBRIDGE

PURITON

WINSCOMBEBREAN

WOOKEY HOLE

MIDSOMERNORTON

PAULTON

PEASEDOWNST JOHN

FROME

MERE

WARMINSTER

TISBURY

HINDON

SHAFTESBURY

YATTON

CONGRESBURY CHEW MAGNA

LOCKING

BATHAMPTON

BRADFORD-ON-AVON

TROWBRIDGE

GILLINGHAM

CODFORD

LANGPORT

STREET

GLASTONBURY

SPARKFORD

MARTOCK

EVERCREECH

SHAPTON MALLET

WINCANTON

BRUTON

BARRY

NAILSEA CORSHAM

CHIPPENHAM

CASTLE COMBE

KEYNSHAMBOX

PORTISHEAD

CLEVEDON

FILTON

PATCHWAY

SIMONSBATH

MOLLAND

WINSFORD

EXFORD

DUNSTER

WIVELISCOMBE

MILVERTON

BISHOP’SLYDEARD

KILVE

WELLINGTON

NORTHPETHERTON

BRIDGWATER

CANNINGTON

HIGHBRIDGE

PURITON

WINSCOMBEBREAN

WOOKEY HOLE

MIDSOMERNORTON

PAULTON

PEASEDOWNST JOHN

FROME

MERE

WARMINSTER

TISBURY

HINDON

SHAFTESBURY

YATTON

CONGRESBURY CHEW MAGNA

LOCKING

BATHAMPTON

BRADFORD-ON-AVON

TROWBRIDGE

GILLINGHAM

CODFORD

LANGPORT

STREET

GLASTONBURY

SPARKFORD

MARTOCK

EVERCREECH

SHAPTON MALLET

WINCANTON

BRUTON

BURNHAM-ON-SEABURNHAM-ON-SEA

CARDIFF

NEWPORT

BRISTOL

MINEHEAD

TAUNTON

WESTON-SUPER-MARE

BATH

CARDIFF

NEWPORT

BRISTOL

MINEHEAD

TAUNTON

WESTON-SUPER-MARE

BATH

Burnham-on-Sea is a large seaside town in Somerset within Sedgemoor District Council, located 11 miles south of Weston-super-Mare and 11 miles north of Bridgwater. The M5 (junction 22) is located just 2.5 miles east of the town providing direct access to the national motorway network and wider South West region.

Highbridge and Burnham rail station is located to the south-east of the town centre providing direct services to Bristol and Exeter with fastest journey times of 50 minutes and 40 minutes, respectively.

Bristol Airport is located 18.5 miles to the north-east.

LOCATION

CATCHMENT & DEMOGRAPHICSDrive time population

The catchment is moderately affluent with 71.9% classified within the ABC social groups (Oxford Retail Consultants).

The town is a popular tourist destination attracting a significant number of day trips and extended visitor trips, particularly in the summer months. In 2014, over 1 million visitor trips were recorded with a total visitor spend of £45.2 million (SWRC).

Burnham-on-Sea was identified recently as the fourth highest town for house price growth in the UK with average house prices rising by 9.9% from 2016 to 2017 (Rightmove).

Burnham-on-Sea is a popular commuting town for Bristol due to its proximity and strong rail connections. Sedgemoor District Council’s emerging Local Plan has therefore identified the requirement for 850 new homes in Highbridge and Burnham between 2015 and 2032. This is additional to the 918 homes that are in the planning stages or that are currently being developed.

10 minute drive time23,961

15 minute drive time30,890

B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT3

A38

A38

M5

M5

M5

BER

RO

W R

D

BER

RO

W R

D

WESTFIELD RD

ALLANDALE RD

RECTORY RD

PLAYERS LN

TRINITY RISE

STODDENS RD

BR

AM

BLE

S R

D

BA

LMO

RA

L D

R

CAERNARVON WAY

CONWAY CRES

BRANT BREAD

GOLF LINKS RD

SHELLEY DR

THE G

RO

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GROVE RD

LOVE LN

MANOR RD

ST PAUL’S RD GLO

UCESTER R

DW

INCH

ESTER R

DTR

URO C

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MSE

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AY

LOV

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STODDENS RD

SOU

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N LEA R

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AXBRIDGE CL

WESTMERE CRES

PALMERS CL

CRO

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STODDENS LN

STODDENS LN

BEATTY WAY

ROSEWOO

D A

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KILLA

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JAYCROFT RD

ADAM STHERN LN

HIG

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ESP

LAN

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STEART AVE

OLD STATION APPROACH

ABINGDON ST

LYNTON ST

MEN

DIP

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LUN

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MARINE DR

HIGHBURN

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WALLACE WELLS RD

LAW

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BENN

ETT

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LAWRENCE CL

ISLEPORT LN

PILLMORE LN

BURNH

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BURNHAM MOOR LN

EDITHMEAD LN

BRENT ST

BATTLEBOROUGH LN

HARP RD

CHURCH LN

MARKET ST

MARK RD

BER

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ALLANDALE RD

RECTORY RD

PLAYERS LN

TRINITY RI SE

STODDENS RD

BR

AM

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S R

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BA

LMO

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L D

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CAERNARVON WAY

CONWAY CRES

BRANT BREAD

GOLF LINKS RD

SHELLEY DR

THE G

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GROVE RD

LOVE LN

MANOR RD

ST PAUL’S RD GLO

UCESTER RD

WIN

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DTR

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STODDENS RD

SOU

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WE

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CRO

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STODDENS LN

STODDENS LN

BEATTY WAY

ROSEWOO

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KILLA

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THE FRAN

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OFT DR

PRIORY GARDENS

JAYCROFT RD

ADAM STHERN LN

HIG

H S

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CROSS ST

S ES

PLA

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STEART AVE

OLD STATION APPROACH

ABINGDON ST

LYNTON ST

MEN

DIP

WAY

VICTO

RIA ST

MAPLE DR

LUN

DY D

R WILLIS CT

MARINE DR

HIGHBURN

CT APEX D

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NORTH AVE

MO

RLAND RD

EAST

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EST

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PEPP

ERALL

RD FIELD WAY

PADD

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OLD WAY PL CLOVER WAY

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RSTO

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WORSTON RD

DONS TAN RD

WALLACE WELLS RD

LAWR

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CL

THE FRANK FOLEY PKW

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POPLES ROW

BENN

ETT

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LAWRENCE CL

ISLEPORT LN

PILLMORE LN

BURNH

AM M

OOR LN

BURNHAM MOOR LN

EDITHMEAD LN

BRENT ST

BATTLEBOROUGH LN

HARP RD

CHURCH LN

MARKET ST

MARK RD

BRISTOL R

D

BRISTOL R

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BRISTOL R

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BRISTOL R

D

HIGHBRIDGE & BURNHAM-ON-SEA

B3140B3140

B3139B3139

OXFO

RD

STREET

OXFO

RD

STREET

M5 J22

M5 J22

HIGHBRIDGE

WALROW

HIGHBRIDGE

WALROW

BURNHAM-ON-SEABURNHAM-ON-SEA

400 HOMES

270HOMES

The subject property is prominently located on the seafront at the junction of South Esplanade and Pier Street. The main town High Street is located immediately north and the subject property car park forms one of the primary parking facilities for the town ensuring a high level of footfall.

SITUATION

Construction has also commenced on a new 19,419 sq ft Aldi store at Isleport Business Park in Highbridge.

Areas defined by Sedgemoor District Council’s emerging Local Plan for residential development.

There is no other retail warehouse provision within the 15 minute catchment. Other foodstore provision within the 15 minute catchment includes:

RETAIL WAREHOUSE PROVISION

Retailer GIA (sq ft) NSA (sq ft)

Lidl, Oxford Street, Burnham, TA8 1EL

14,884 9,548

Tesco, Ben Travers Way, Burnham, TA8 1EZ

46,787 28,761

Asda, Caxton Road, Highbridge, TA9 3BX

46,166 26,924

Co-operative, Southwell Crescent, Highbridge TA9 3BN

10,742 8,100

B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT4

The property comprises a purpose built supermarket constructed in 1990, which has since been re-fitted for the current tenant’s use. The property totals 29,824 sq ft arranged as follows:

There is a substantial demised car park to the west and south of the store that is sublet to the council who operate it on a pay and display basis. There are 313 spaces, which provides a superb ratio of 1:95 sq ft. In addition, there is a further area of car parking to the east of the store owned and operated by the council that sits outside of the ownership.

This site extends to approximately 3.65 acres, reflecting a low site coverage of 15%.

DESCRIPTION

PLANNINGThe planning consent provides for an Open A1 (including food) consent.

TENUREFreehold.

CAR PARK SPACES

CAR PARK SPACES

PIER STREET

STEART STREET

Floor Sq Ft Sq M

Ground Floor 23,796 2,210.65

First Floor 5,625 522.59

First Floor Plant 403 37.47

Total 29,824 2,770.71

B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT5

GBP (000’s) 25/03/2017 26/03/2016 28/03/2015

Turnover £2,252,265 £1,902,557 £1,526,181

Pre-Tax Profit £198,006 £168,121 £151,063

Net Worth £498,412 £440,372 £333,599

The parent group’s most recent accounts to 31st March 2018 showed a 22% rise in group turnover to £2,976.3 million and a 25% jump in pre-tax profits to £229.3 million. Within these accounts, B&M reported a +4.7% increase in like-for-like revenues in the UK.

TENANT COVENANTB&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below.

TENANCYThe property is let to B&M Retail for a term of 35 years from 30th August 1990, providing in excess of 7 years unexpired. The lease was assigned to B&M in September 2016 from previous tenant WM Morrison Supermarkets Plc. Privity of contract applies.

The passing rent is £451,500 pa, reflecting £15.14 psf. There are 5 yearly rent reviews to OMV with the next review due in August 2020.

The demised car park is sub-let to Sedgemoor District Council for a term of 60 years from 23rd August 1990, expiring 22nd August 2050. The tenant must charge no more in tariffs than usual in respect of public car parks within the tenant’s area of jurisdiction.

B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT6

Misrepresentation Act 1967

Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that : (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. June 2018.

The property is elected for VAT.

An environmental and ground conditions report is available upon request, which concludes a low risk rating. A detailed Flood Risk Assessment has been undertaken that concludes the property is at very low risk of flooding equivalent to an annual chance less than 1 in 1000 (0.1%).

EPC Rating of C – 75.

VAT

EPC & ENVIRONMENTAL

16250.001 / June 2018 Designed and produced by THE GROUP www.completelygroup.com

PROPOSAL

A purchase at this level reflects an attractive 7.00% Net Initial Yield, assuming 6.63% purchase costs

£6,050,000 (SIX MILLION AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT.

Our client is seeking offers in excess of

FURTHER INFORMATION

Nick RichardsonT: 020 7312 7420 E: nick.richardson@montagu-evans.co.uk

Will CollinsT: 020 7312 7405 E: will.collins@montagu-evans.co.uk