THE BRIDESTONE SHOPPING CENTRE - Marshall CDP€¦ · to Morrisons. Summary Location Situation...

Congleton, Cheshire East CW12 1XD

THE BRIDESTONE SHOPPING CENTRE

INVESTMENT SUMMARY

Prime Shopping Centre investment•opportunity in this attractive Cheshire Market town

Morrisons anchored scheme providing 68% of•the Income, secured on a new 10 year lease

Freehold•

270 space multi-storey car park on site,•demised to the supermarket

Scope for a number of Asset •Management initiatives

We are instructed to seek offers in excess of•£10,400,000 (Ten Million Four HundredThousand Pounds), subject to contract, andexclusive of VAT which reflects a Net InitialYield of 6.50%, allowing for normal purchaserscosts of 5.8%

Summary Location Situation Retailing Tenancy Covenant Proposal Contact


LOCATION

Congleton is an affluent Market Town inCheshire, situated on the banks of the riverDane, 21 miles south of Manchester and 9miles south of Macclesfield.

The town benefits from an extensivetransport network being situated on the A34,which serves as one of the main arterialroads into Manchester City Centre. The A534also provides direct access to the M6Motorway (7 miles) to the West, from whichthe remainder of the national motorwaynetwork can be easily accessed.

In addition, Manchester International airport,the third largest in the UK, is located within17 miles to the north, providing a wide range

of national and international flights.Congleton train station provides a range oflocal services to Manchester and Stoke.

The population of Congleton is circa 29,500,of which approximately 80% are agedbetween 18 and 65 (Source - CoStar). The population within 5 miles of the centrestands at circa 64,000 with the populationpredicted to grow by 2% from 2015 to 2018.Historically, the wealth of the town centre isfrom leather working and lace making, andthis manufacturing heritage is still in placetoday with Berisfords, who are still makingribbon and tape having first opened in 1858.

A53

A52

A520

A34

A523

A523

A50

A518

A53

A515

A51

A51

A51

A41

A53

A49

A534

A534

A530

A6

A6

A523

A537

A556

A533

A49A537

A57

A580

A6018 A628

A627

A34

A536

A54

A6033

A56

A500

M62

M56

M60

M62M66

M61

M6

A

Manchester

StokeonTrent

J17

J18

J16

Circa 25% of employment still comesfrom manufacturing with Siemens,Airbags International, Berisfords, SeniorAerospace and Bird Bellows beingmajor employees. A further 25% areemployed in Distribution, Hotels andCatering and circa 25% in Banking,Finance and Insurance (Source – Cheshire Council).



Congleton

SITUATION

The subject property is situated immediately to the north of Congleton’s primeretail pitch of Bridge Street and is accessed via Victoria Street.

The property benefits from the strong pedestrian flow resulting from its locationbetween Congleton’s largest car park and Bridge Street.

The property comprises a supermarketarranged over ground, lower groundand first floor levels, with an additionalthree retail units arranged over ground,basement and first floor levels along apartially covered Mall. The ShoppingCentre provides a total area of 57,702sq ft (5,360.5 sq m).

A precise breakdown of sales and storage areas can be found in theattached tenancy schedule.

The property was constructed in thelate 1980’s of a concrete frameconstruction with brick clad elevationsunder flat roofs with slate covered mansards.

Parking is provided in the 270 spacemulti-storey car park within the ownership, and demised to Morrisons.



DESCRIPTION AND ACCOMMODATION

RETAILING ON CONGLETON

Retailing in Congleton is centredaround the pedestrianised Bridge Streetwhere retailers such as Boots,Superdrug, B&M Bargains, Card Factoryand Costa all have representation.Victoria Street provides direct access tothe Bridestone Shopping Centreanchored by Morrisons alongside Argos,Burtons/Dorothy Perkins and Mackays.Specsavers and Farmfoods sit adjacent.

Further in town retailing can be foundon the High Street and Duke Street,where a range of national and local

fascias are represented, includingPeacocks, JD Wetherspoons,Poundstretcher and various banks.

Congleton Retail Park is situated 0.5miles North West of the town centre,providing circa 65,000 sq ft of retailaccommodation anchored by M&SSimply Food, with retailers includingBoots, Brantano and Halfords having representation.

TENURE

Freehold

Title Number: CH527084

Multi-Storey

[260] Estimated

M[9

Multi-Storey

[90] Estimated

VOID



For indicative purposes only

TENANCY

The property is let in accordance with the attached tenancy schedule and currentlyproduces a Gross Income of £715,550 pax.

68% of the income is secured against Morrisons.

WAULT of 7.92 years to expiry.

ESTIMATED RENTAL VALUE

Morrisons have recently signed a new 10 year lease at a £487,500 pax, which devaluesto £13.05 per sq ft. Therefore, we feel this is rack rented. Burtons/DP’s have recentlytaken a new 5 year lease at a rent of £32,250 pax, which devalues to £32.62 Zone A.

We are of the opinion that the property is rack rented at the current time.

TENANCY SCHEDULE

THE BRIDESTONE SHOPPING CENTRESummary Location Situation Retailing Tenancy Covenant Proposal Contact


Unit Tenant Comments

Unit Tenant ITZA Lower Ground First Mezzanine Total Term Lease Lease Rent Passing rent Passing ERV paground (ancillary) (sq ft) Start Expiry Review (ZA/psf) Rent pa

VAT

The subject property is elected for VAT and therefore we anticipate the sale being by way of TOGC.

MANAGEMENT

The Shopping Centre is managed in-house by the vendor. There is no Centre Management, but security on site.

OCCUPIER COVENANT



Tenant Date of Accounts No. of Weeks Turnover (£000) Pre Tax Profit (£000) Net Worth (£000) Equifax Rating

*Arcadia Group pays the rent on this unit

SERVICE CHARGE

We understand the service charge for the year ending 2015 wasbudgeted at £57,475, which equates to £1.00 psf. There are currentlyno service charge shortfalls.

ASSET MANAGEMENT INITIATIVES

The scheme offers a number of opportunities to add value as follows:-

Explore the opportunity to bring the space at Market Hall level•back into use to increase rent from the centre

Work with the council to let their vacant shop close to Morrisons•to improve the footfall

Possibility to look at a wider redevelopment of The Market Stalls,•Princess Street Pay & Display car park, and 27-31 Mill Street toprovide a new retail core for the town

EPC

Full details can be provided on request



PROPOSAL

We are instructed to seek offers inexcess of £10,400,000 (Ten MillionFour Hundred Thousand Pounds)subject to contract and exclusiveof VAT for our client’s valuablefreehold interest.

The price reflects a NIY of 6.50%after allowing for purchaserscosts of 5.8%. Assuming 2.5% perannum uplift on the Morrisons atreview, the yield would rise to 7.08%.

CONTACT

For further information or to request a viewing, please contact:

Jackson CrissMatt CoatesT: 020 3714 0501E: [email protected]

John BoissierT: 020 7637 7100E: [email protected]

GL HearnDavid SlatterT: 020 7851 2594E: [email protected]

Adam HanlineT: 020 7851 2157E: [email protected]



BOWMANS Design & Print www.bowmans77.co.uk

THE BRIDESTONE SHOPPING CENTRE - Marshall CDP€¦ · to Morrisons. Summary Location Situation...

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