Retail Park… · Quay Street and Broadway. ... Laharna Retail Park, Circular Road West, Larne,...

LAHARNA RETAIL PARK, LARNE 1

Larne, Northern Ireland, BT40 1HR

LAHARNA RETAIL PARKHIGH YIELDING OPEN CONSENTED SHOPPING PARK INVESTMENT

LAHARNA RETAIL PARK, LARNE 2* Boundary line for indicative purposes only.


Larne is located 21 miles north of Belfast and 18 miles from Antrim

Laharna Retail Park constitutes the town’s dominant retail provision

Open Class 1 Retail Park, developed in 2003 comprising 47,883 sq ft and benefiting from 191 car park spaces

Strong tenant line up with occupiers including B&M, Argos, Peacocks and Carphone Warehouse

Asset management opportunities

67% of income secured to ‘minimum risk’ tenants

Low base rents averaging just £9.73 per sq ft

Current Income £466,071 per annum

Freehold and Long Leasehold

INVESTMENT SUMMARY

PriceWe are instructed to seek offers in excess of £3,980,000 (Three Million, Nine Hundred and Eighty Thousand Pounds). A purchase at this level reflects a net initial yield of 11.00% and a low capital value of £88 per sq ft after allowing for acquisition costs at 6.52%.


Larne is located approximately 21 miles north of Belfast City Centre and is one of Northern Ireland’s most significant ports with good volumes of passenger and freight traffic flows. Larne provides regular crossings to Cairnryan.

The property occupies an extremely prominent position in the town centre with easy access from the main retailing thoroughfare, Main Street via Quay Street and Broadway. Immediately adjacent to the scheme is a Lidl unit (which benefits from rights over the carpark).

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Belfast

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Derry City

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Carrickfergus Road

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Bank Road

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Main StreetCurran Road

Larne TownTrain Station

Inver Road

High Street

Pound Street

Victoria Road

LAHARNARETAIL PARK

A2A8

A8

A2

LOCATION

TRAVEL TIME BY CAR

Belfast 30 mins

International Airport 25 mins

Derry City 90 mins

Dublin 120 mins

Also next to the subject property is the Department of the Environment operated pay and display car park and provides a pedestrian link to the adjoining Broadway linking to Main Street, which is the town’s main retail thoroughfare. Major tenants in Larne Town Centre include Iceland, Dunnes Stores, Dorothy Perkins, Birthdays and Bon Marche.

The town is also easily accessible via Belfast International Airport located 23 miles to the south west.



DESCRIPTIONDeveloped in 2003 the property comprises 47,883 sq ft of modern purpose build retail warehouse accommodation.

The units are of steel portal frame construction with mixed block/clad walls incorporating feature glazed shop fronts / entrances to individual units with concrete floors and metal roof decking. The scheme also benefits from a pedestrian access from Main Street.

The park comprises 10 retail units of which 3 benefit from mezzanines together with first floor Bingo hall. The park provides for 191 car park spaces and the total site measures c.3 acres.

PLANNINGThe scheme benefits from open class 1 non-food retail planning under a number of planning permissions.

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DUNNESSTORES

9The Zip Yard

APPLICATION NO. PERMISSION DATE

F/2002/0332/F 30/05/03

F/2003/0273/F 04/12/03

F/2003/0428/F 09/03/04

F/2005/0221/F 14/09/05

F/2007/0177/F 17/07/07


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TENANCY SCHEDULE

Unit Tenant Trading asGIA sq ft

Start Date

Expiry Date

Break Option

Next Review

Rent (£/pa)

Rent (£/psf)

% of Income Comment

1 Opus Homewares Ltd B & M Bargains 10,067 09/08/08 08/08/19 – 09/08/18 102,900 10.22 22.08

1B Alan HumphriesCarnival Bingo (previously Wolf Leisure) 8,298 01/05/04 30/04/19 – – 28,000 3.37 6.01 - First Floor space Bingo Hall.

2 Peacocks Stores Ltd Peacocks 5,686 23/08/04 22/08/24 – 23/08/19 60,000 10.55 12.87

- Recently extended their lease for further five years.

- by way of Reversionary Lease dated 7 February 2017

- Additional mezzanine area of 3,352 sq ft.

3 Mackays Store Ltd M&Co 3,029 18/06/07 17/06/17 – – 45,000 14.86 9.66 - Tenant holding over. - Additional mezzanine area of 2,344 sq ft.

4 New Look Retailers Ltd New Look 5,118 01/05/04 30/04/19 – – 33,000 6.45 7.08- CVA Category Bii has resulted in a 40%

rent reduction from £55,000 to £33,000. - Additional mezzanine of 2,703 sq ft

5A Stuart Hewitt Creed Coffee 1,342 09/04/18 08/04/28 08/04/23 09/04/23 20,000 14.90 4.29

- Six month rent free period which the vendor will top up.

- This will be their second store (after Carrickfergus).

5B The Carphone Warehouse Ltd

Carphone Warehouse 1,400 06/12/04 05/12/19 – – 25,000 17.86 5.36

6 Menarys Retail Ltd Menarys 2,756* 06/09/04 05/09/19 – – 46,671 16.93 10.01 - Did not action 2016 break

7 Argos Ltd Argos 8,995 15/03/04 14/03/19 – – 81,000 9.01 17.38

- Nearest Sainsbury’s over 10 miles away in Carrickfergus.

- Management fee is capped at 10% of the service charge. Current shortfall of £427.12.

- A separate lease exists for the loading area.

8A & 8B

Fone Trading Zone Ltd O2 574 01/11/07 31/10/22 – 31/10/22 18,500 32.23 3.97 - Did not action 2017 break.- Additional first floor area of 574 sq ft.

9A Zylarne Ltd The Zip Yard 618 17/10/11 16/10/21 – 16/10/21 6,000 9.71 1.29

TOTAL 47,883 466,071 9.73


The scheme is fully let in accordance with the tenancy schedule below:

*Menarys trade at first floor level, which extends to 5,587 sq ft (landlord’s fixture) and oversails Unit 5A and 5B. There is lift and stairway access to this floor. Assuming a third rate is applied to this level, the rent should be devalued to £10.10 per sq ft.


TENANT COVENANTS INVESTMENT MARKETInvestment activity in Northern Ireland for 2017 totalled in excess of £315m, with over 79% in the retail sector. Direct investors in the NI market over the last 12 months include Arax Properties, DS Properties, Investec, OLIM and LXi Reit. The property market should be well placed for further future investment following the recent agreement between the Conservatives and Democratic Unionist Party (DUP), which secured an additional £1 billion in funding for Northern Ireland over the next two years, a significant amount of which will be spent on infrastructure projects.

OCCUPATIONAL MARKETCounter to the GB market the retail sector in Northern Ireland continues to perform well with the continued benefit of the sterling/ Euro exchange rate and the impact of rising inflation yet to have a material influence on consumer sentiment. Recent key lettings announced include Marks and Spencer, Next and Skechers opening at The Quays, Newry; Pure Gym at Laganbank Retail Park, Lisburn; and, B&M at Westwood Shopping Park, Belfast.

2018 will be a similar year to 2017 with Tim Hortons, Starbucks, M&S Simply Food, B&M Bargains and Sports direct all opening new stores throughout Northern Ireland.


Tenant Year End % Income Turnover (£ 000)

Profit (£ 000)

Tangible Net Worth (£ 000)

D&B Rating

Opus Homewares Ltd 25/03/2017 22 – – – H1

Peacocks Stores Ltd 25/02/2017 13 382,318 65,019 192,242 5A1

Mackays Stores Ltd 24/02/2017 15 165,611 1,100 36,441 5A1

New Look Retailers Ltd 25/03/2017 7 1,324,195 84,987 361,242 5A4

The Carphone Warehouse Ltd 29/04/2017 5 2,125,700 48,400 1,046,000 5A1

Menarys Retail Ltd 31/01/2017 10 19,306 249 -322 N4

Argos Ltd 11/03/2017 17 4,285,775 -25,664 516,284 5A1

Fone Trading Zone Ltd 31/03/2017 4 – – 1,075 1A2

Zylarne Ltd 30/09/2016 1 – – -5 N4

B&M – Direct tenant entity Opus Homeware Ltd is a dormant company. Parent company is EV Retail Ltd and ultimately owned by B&M European Value Retail S.A. which is listed on the LSE.

We have set out below some recent account information, together with D&B Ratings for the tenants:

67% of income secured to ‘minimum risk’ tenants

”“


ASSET MANAGEMENT— Re-gearing with occupational tenants

— Introductions of pods in car parks

— Purchase of Lidl unit

ENVIRONMENTAL & BUILDING SURVEYEnvironmental and Building Survey reports are available in the data room and are provided on a non-reliance basis.

VATThe property is elected for VAT and it is anticipated that the sale can be treated as a transfer of a going concern (TOGC), subject to applicable tax rules.

DATA ROOMA data room has been set up for prospective purchasers to review due diligence. Further details on request.

DISCLAIMER: CBRE/ Morgan Williams These particulars are issued by CBRE and Morgan Williams on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE and Morgan Williams for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE/ Morgan Williams, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. April 2018.

Robert Ditty T: 028 90436917

M: 07762 137534

E: [email protected]

Andrew CogginsT: 028 90 436915

M: 07468 697290


Mark MorganT: 0207 4934455

M: 07802 644 068


Tom WatsonT: 0207 4934455

M: 07850 006 070


TENUREWe have been advised the property is held part Freehold and part Long Leasehold with nominal ground rents.

EPCSThe units have been assessed as follows:

TENANT EPC

B&M Bargains B38

Carnival Bingo C56

Peacocks D76

M&Co D97

New Look E111

Under Offer D80

Carphone Warehouse

D94

Menarys C66

Argos C68

O2 C67

The Zip Yard E114

Vacant D86


PriceWe are instructed to seek offers in excess of £3,980,000 (Three Million, Nine Hundred and Eighty Thousand Pounds). A purchase at this level reflects a net initial yield of 11.00% and a low capital value of £88 per sq ft after allowing for acquisition costs at 6.52%.

Retail Park… · Quay Street and Broadway. ... Laharna Retail Park, Circular Road West, Larne,...

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