Scunthorpe & District Cats Protection Spring 2013 Newsletter
MJ SCUNTHORPE 12.qxd:MJ SCUNTHORPE 3
Transcript of MJ SCUNTHORPE 12.qxd:MJ SCUNTHORPE 3
LAKESIDERETAIL PARK
WELL-LET SECURE RETAIL WAREHOUSE INVESTMENTLAKESIDE RETAIL PARK | SCUNTHORPE | LINCOLNSHIRE | DN16 3UA
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INVESTMENT SUMMARY
� The property occupies a prominent location on the Lakeside
Retail Park, adjacent to a large format Morrissons supermarket
on the A18.
� The scheme comprises 4 well configured retail warehouse
units totalling 45,407 sq ft (4,218.45 sq m).
� Let to strong national retailers including DSG (Currys & PC
World), Harveys, Halfords and Pets at Home.
� AWULT of 11.2 to expiry and 8.9 to break(s).
� The property produces a total passing rent of £852,340 per
annum equivalent to £18.77 per sq ft overall.
� Open market rent reviews.
� Excellent mass from other adjacent retailers and a new large
scale housing development to the rear of the site.
� Freehold.
� Our clients are seeking offers in excess of £12,400,000
(Twelve Million Four Hundred Thousand Pounds), subject
to contract and exclusive of VAT. A purchase at this level
provides a net initial yield of 6.50% assuming purchasers
costs of 5.80%.
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DEMOGRAPHICS
GALLAGHERRETAIL PARK
HIGH STREET(Town Centre)
NORTH LINCOLNSHIRESHOPPING PARK
LOCATIONScunthorpe is a substantial town in North
Lincolnshire. It is the administrative centre of the
North Lincolnshire Unitary Authority and has a
resident population of approximately 73,000.
Scunthorpe is predominantly an industrial town and
is the largest steel processing centre in the United
Kingdom. The town is located some 15 miles south
of the Humber Estuary and 25 miles north of
Lincoln. The town benefits from excellent transport
infrastructure being at the terminus of the M181 &
M180 Motorways which in turn provide fast links to
the M18 (22 miles), M62 (26 miles) and A1(M) (33
miles). Fast train services to the north and south
are provided via Doncaster and Wakefield to the
west. Robin Hood (26 miles) and Leeds Bradford
(68 miles) airports provide European and
transcontinental air services.
SITUATIONThe property is located some 2.5 miles south of
the town centre on the A18 Queensway which acts
as the town’s southern link road, connecting to the
west with the M181 and the M18 to the south
east. Lakeside Retail Park occupies a prominent
site which is clearly visible from the A18 and which
benefits from direct access shared by a large
format Morrissons supermarket.
RETAIL WAREHOUSINGIN SCUNTHORPEAside from the adjoining second phase of Lakeside
Retail Park the competing retail warehouse offer in
Scunthorpe comprises the following schemes. To
the west, adjacent to the M181 lies the 104,000 sq
ft Gallagher Retail Park, currently owned by
Orchard Street and with rents of up to £20.00 per
sq ft key tenants here include Toys r Us, B&Q, TK
Maxx, Next, Pizza Hut, McDonalds and KFC.
Opposite the Gallagher Retail Park lies the new
North Lincolnshire Shopping Park (rents of up to
£22.50 per sq ft) which is currently in a phased
process of opening. Built by Simons Developments
and funded by Cordea Savills Bishopsgate Fund,
key tenants at this 115,975 sq ft scheme include
Marks and Spencer, Debenhams, Boots, Costa
and Subway. This development will be fully trading
by the end of October 2014. Finally to the north of
the town on the A1077 northern ring road is
Scunthorpe Retail Park, owned by Threadneedle,
this 144,274 sq ft scheme has tenants including
Home Bargains, Matalan, Iceland, The Range,
Poundworld & Card Factory.
Total in store comparison retailexpenditure 2013 (£m)
Per capita retail warehouseexpenditure
Per capita in store comparisonexpenditure
Forecast growth
£404m
£463
£2,316
1.3%
£812m
£452
£2,314
1.7%
SCUNTHORPE RETAIL PMA AVERAGETOP 200 CENTRES
LAKESIDERETAIL PARK
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Lakeside ParkwayLakeside Parkway
NEW HOME DEVELOPMENTApprox. 1,000 new houses
(Persimmon and Barratts Homes)
PHASE 1
PHASE 2
Lake
side
Par
kway
Lake
side
Par
kway
Lake
side
Par
kway
Lake
side
Par
kway Lakesi de Parkway
A18A18
PUBLIC HOUSEThe Anchor
DESCRIPTIONThe property was constructed in 1996 and
comprises a terrace of four purpose built retail
warehouse units. The building is of steel portal
framed construction beneath a series of pitched
roofs and with a combination of bricks and
composite panels to the elevations. Internally the
units have been fitted out to the tenant’s own
specification including the installation of mezzanine
floors in Units 2 & 4 (Halfords and Currys).
PLANNINGThe property has the benefit of an A1 bulky goods
consent.
TENUREFreehold.
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UNIT TENANT GIA: SQ FT LEASE START LEASE EXPIRY REVIEW RENT RENT EPC
(SQ M) (BREAK) ANNUAL £PSF
1 Pets at Home 10,012 (930.14) 14/06/1996 13/06/2031 14/06/2016 £191,400 £19.12 D90
(14/06/2021)*
2 Halfords Limited 10,400 (966.19) 14/06/1996 13/06/2021 14/06/2016 £195,390 £18.79 C62
3 Steinhoff UK Limited 9,980 (927.17) 14/06/1996 13/06/2031 14/06/2016 £190,000 £19.04 D84
(t/a Harveys / Bensons)
4 DSG Retail Limited 15,015 (1,394.94) 14/06/1996 13/06/2021 14/06/2016 £275,550 £18.35 D85
(t/a Currys - PC World)
TOTAL(S) 45,407 (4,218.45) £852,340
TENANCY SCHEDULE
*Tenant required to give not less than 6 months written notice of intention to break lease. Our Clients have been in discussions with Pets at Home regarding their ongoing occupation and thetenant has offered to remove the break in return for a 12 month rent free incentive.
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TENANTS COVENANTS
Year to 28/03/13 Year to 29/03/12 Year to 31/03/11
Sales £586,350,000 £536,410,000 £511,576,000
Pre-Tax Profit £77,707,000 £72,864,000 £75,174,000
Net Worth £382,537,000 £308,386,000 £229,976,000
Net Assets £336,227,000 £258,135,000 £166,784,000
The property is let to 4 quality covenants whose recent trading figures and D&B ratings are set out below:
Pets at Home Limited D&B Rating 5A1 Minimum Risk of Failure
Year to 28/03/2014 Year to 29/03/13 Year to 30/03/12
Sales £803,100,000 £745,500,000 £752,300,000
Pre-Tax Profit £86,200,000 £75,500,000 £101,300,000
Net Worth £548,000,000 £481,400,000 £425,800,000
Net Assets £676,400,000 £594,000,000 £516,900,000
Halfords Limited D&B Rating 5A1 Minimum Risk of Failure
Year to 29/06/13 Year to 30/06/12 Year to 25/06/11
Sales £71,211,000 £69,803,000 £84,387,000
Pre-Tax Profit £4,658,000 £3,231,000 £429,000
Net Worth £13,247,000 £8,627,000 £5,391,000
Net Assets £7,715,000 £10,984,000 (£4,705,000)
Steinhoff UK Group Properties (t/a Harveys & Bensons D&B Rating 3A1 Minimum Risk of Failure
Year to 30/04/13 Year to 28/04/12 Year to 30/04/11
Sales £3,997,900,000 £3,743,700,000 £3,858,000,000
Pre-Tax Profit £62,300,000 £53,700,000 £18,400,000
Net Worth £301,800,000 £354,700,000 £327,600,000
Net Assets £639,000,000 £525,800,000 £414,100,000
DSG Retail Linmited (t/a Currys/PC World) D&B Rating 5A1 Minimum Risk of Failure
ESTATE SERVICECHARGEThe park runs a small service charge to cover the
cost of maintenance of the car park and other
common areas. The charge to each tenant was
equivalent to £0.83 per sq ft in the year 2013/14.
Full details are available on request.
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PROPOSALWe are instructed to seek offers in excess of
£12,400,000 (Twelve Million Four Hundred
Thousand Pounds Sterling) to reflect an attractive
net initial yield of 6.50%, assuming purchasers’
costs of 5.80%, subject to contract and exclusive
of VAT.
VATThe property is elected for VAT and it is therefore
proposed that the sale will be undertaken by way
of a Transfer of a Going Concern (TOGC).
FURTHER INFORMATIONAccess to a data room containing all relevant
documents and supporting information is available
on request.
CONTACTFor further information or to arrange an
inspection please contact either of the
joint agents:
MISREPRESENTATION ACT 1967
Chapman Petrie and Hoddell Stotesbury Morgan forthemselves and for the vendors of the property whoseagents they are give notice that:
1 The particulars are set out as a general outline only forthe guidance of intending purchasers and do notconstitute part of an offer or contract;
2 All descriptions, dimensions, references to conditionand necessary permission for use and occupation, andother details are given without responsibility, and anyintending purchasers or tenants should not rely on themas statements or representations of fact but mustsatisfy themselves by inspection or otherwise as to thecorrectness of each of them;
3 No person in the employment of Chapman Petrie orHoddell Stotesbury Morgan has the authority to makeor give any representation or warranty whatever inrelation to this property;
4 Rents quoted in the above particulars may be subjectto VAT in addition;
Chapman Petrie and Hoddell Stotesbury will not be liable,in negligence or otherwise for any loss arising from theuse of these particulars.
Brochure design by ftadvertising.co.uk
Robert Mortimer
T 020 7518 9415 M 07810 833 227
Tim Morgan
T 020 7629 2030 M 07775 654 795
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