WELL LOCATED FOODSTORE INVESTMENT ... LOCATED FOODSTORE INVESTMENT OPPORTUNITY WITH RPI UPLIFTS...
Transcript of WELL LOCATED FOODSTORE INVESTMENT ... LOCATED FOODSTORE INVESTMENT OPPORTUNITY WITH RPI UPLIFTS...
WELL LOCATED FOODSTORE INVESTMENT OPPORTUNITY WITH RPI UPLIFTS
Aldi, Newmarket Road, Bury St Edmunds IP33 3TS
Investment Summary■ Bury St Edmunds is an affluent historic market
town and important regional centre in Suffolk
■ Prominent foodstore forward commitment topurchase opportunity
■ New store comprising 1,425 sq m (15,338 sq ft)with 83 car parking spaces (1:185 sq ft)
■ Pre-let to Aldi Stores Limited (5A1) with aNet Worth in excess of £1.3 billion
■ New full repairing and insuring lease frompractical completion for a term of 20 yearssubject to a tenant’s option to determine in Year15 and a tenant’s option to renew the lease on thesame terms for a further 20 years
■ Initial passing rent of £250,000 per annum(subject to measurement on PC) equating toa low rent of £16.30 per sq ft (based on thetarget GIA)
■ 5 yearly upward only rent reviews linked to theRetail Price Index (RPI), capped and collared at3% and 1% compounded annually.
■ Freehold
Offers are sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) for the Freehold interest on a forward commitment to purchase basis, comprising an initial site purchase and balancing payment upon completion. A purchase at this level equates to a Net Initial Yield of 5.9% (assuming purchaser’s costs of 5.8% on the land acquisition and 1.8% on the balance).
Postcode: IP33 3TS
Bury St Edmunds
LocationBury St Edmunds is an attractive and historic Suffolk
market town located 32 miles east of Cambridge, 42 miles
south west of Norwich, 28 miles north west of Ipswich
and 75 miles north east of London.
The town benefits from excellent transport links being
situated on the A14 dual carriageway, the main arterial
route linking Ipswich and Cambridge. The A134 and A143
provide convenient links to surrounding centres and
the M11, situated approximately 22 miles to the south
west, provides easy access to central London via the
A11 and A14.
There are regular rail services to Cambridge, Ipswich and
London Liverpool Street, with a fastest journey time of
43 minutes, 28 minutes and 1 hour 10 minutes, respectively.
DemographicsBury St Edmunds benefits from an extensive, affluent
catchment population estimated at 251,000 (Promis).
The area is characterised by an over-representation
of working adults categorised in the highest AB class
groupings comprising those employed within higher
and intermediate managerial, administrative and
professional roles. Conversely those categorised as
economically inactive and on state benefit are particular
under represented.
The town is forecast to see above average population
growth over the short-term and significantly
above average growth in the available pool of
comparison spending.
Further demographic and economic figures which
demonstrate the strength of the catchment include levels
of car ownership, dwelling owner occupation and average
weekly disposable income above the national average.
M8
M90
M77
M74
MIDDLESBROUGH
SHEFFIELD
NOTTINGHAM
BIRMINGHAMCOVENTRY
NORTHAMPTON
HULL
HARTLEPOOLDURHAM
SOUTH SHEILDS
YORK
GRIMSBY
EXETER
BRIGHTONBOURNEMOUTH
SWINDON
READING
GLOUCESTER
LEICESTER
CORBY
KINGS LYNN
LINCOLN
DONCASTER
STOKE-ON-TRENT
SALISBURY
MAIDSTONE
OXFORD
CAMBRIDGE
BURY ST EDMUNDS
NORWICH
CHELMSFORD
COLCHESTER
SOUTHEND-ON-SEA
MARGATE
DOVER
IPSWICH
MANCHESTER
NEWCASTLE UPON TYNE
CARLISLE
LEEDS
EDINBURGH
GLASGOW
BRISTOL
SOUTHAMPTON
CARDIFF
CHESTER
MILTON KEYNES
GUILDFORD
LONDON
M6
M6
M6
M5
M5
M4M4
M3
M2
M1
M1
A1 (M)
M6
M8
A66 (M)
A1 (M)
M90
M77
M74
M25
M50
M20
M11
M40
M62M62
M56
M23
SituationThe development will be prominently located in a
predominantly residential area on the A1302
Newmarket Road, which forms part of the ring road
and provides convenient access to the town centre
located approximately 1 mile (1.5 km) to the east.
The A1302 also directly links with the A14, comprising
the main arterial route through the town.
Description & Design SpecificationUpon Practical Completion the property will comprise
a rectangular shaped foodstore of steel portal frame
construction with profiled metal cladding and glass
elevations, together with concrete floor under a flat roof.
The property will further provide additional plant and
staff facilities to the rear.
A full specification is available upon request.
anticipated on site start date is December with
an approximate 26 week build period and target practical
completion date of June .
There will be car parking at the front of the building
providing approximately 83 spaces, equating to an
excellent ratio of 1:185 sq ft based on the target floor area.
The total site area is approximately 1.69 acres (0.68 ha),
with a low site coverage of approximately 21%.
“The total site area is approximately 1.69 acres (0.68 ha), with a low site coverage of approximately 21%.”
A143
A134
A134
A134
A1302
A143
A143
A1302
A1302
A1101
A14
A14
A14
A14
Bury St Edmunds
Fornham St Martin
Westley
Pestle Wood
Horringer
AccommodationUpon practical completion the property is anticipated to
provide the following approximate gross internal areas.
Sq m Sq ft
Ground Floor Sales 990 10,656
Staff and Storage Ancillary 435 4,682
Total GIA 1,425 15,338
TenureThe site is held Freehold
TenancyAn agreement for lease exchanged with Aldi Stores
Limited in August 2011.
Upon Practical Completion the property and car park will
be held by way of a full repairing and insuring lease for a
term of 20 years, with a tenant’s option to determine in
year 15, at an initial passing rent of £250,000 per annum,
equating to £16.30 per sq ft.
There is a tenant’s option to renew the lease on the same
terms for a further 20 years.
The rent will be subject to 5 yearly, upward only rent
reviews which will be based on the increase in the Retail
Price Index (RPI), subject to a cap and collar of 3% and
1% per annum.
Proposed Foodstore Development - Newmarket Road, Bury St EdmundsClient: Lookers Plc
Date: 14/07/11Job/Dwg: 11122-V100-Site Plan
Scale: [email protected] Bury St Edmunds Site Plan V100
Planning Detailed planning permission was granted by
St Edmundsbury Council on 4th September 2012
(reference SE/11/0922) for:
“Erection of discount food store with associated
parking and landscaping (following demolition of
existing car showroom/workshop premises) and
new vehicular access.”
Environmental An environmental report has been undertaken by DTS
Raeburn Limited, a copy of which is available upon
request to interested parties.
VATIt is anticipated the sale will be treated as a TOGC.
Covenant StatusAldi operate from over 400 stores in the UK and 7,500
worldwide and has successfully established itself as
one of the most reputable food retailers in both the
UK and Europe.
The Aldi name is synonymous with value and quality
and they are recognised as a leading convenience
retailing brand having recently won the coveted Which?
Supermarket of the year award for 2012.
The company continues to increase it’s market share
and according to Kantar Worldpanel data for the 12
weeks to 10th June 2012 currently commands 2.8%
of the UK market share, representing a year-on-year
increase of 24.7%.
Aldi has recently announced a strong uplift in sales in
the year to the end of December 2011, with a £57.8m
post-tax profit compared with a £56.8m loss in the
previous year, caused by a £58.5m property write down.
The company has recorded a 450% rise in operating
profit to £103m, with turnover rising to £2.76bn.
Having undertaken a £30m store refit, Aldi will invest a
further £181m in opening 40 new stores by the end of
2013. Aldi’s store estate will stand at more than 500 by
the end of next year and could potentially double its UK
store base to 1,000 over the next 10 years.
Aldi has recorded impressive double-digit growth
throughout 2012 and continues to increase its UK
market share.
Aldi Stores Limited has a Dun & Bradstreet Rating of 5A1
with a current net worth in excess of £1.3billion. The last
3 years accounts are summarised below:
31st December 2010 31st December 2009 31st December 2008
Sales Turnover £2,135,046,000 £2,040,201,278 £2,007,624,672
Pre-Tax Profit / (Loss) (£56,869,000) (£54,212,294) £92,743,401
Tangible Net Worth £1,335,251,000 £1,329,969,355 £1,354,602,542
Professional Team
Developer Bolling Investments Limited
Architect The Harris Partnership
Structural Engineer Fleming Smith
Environmental Consultants DTS Raeburn Limited
Planning Consultants RPS Planning & Development
Solicitors Pinsent Masons
“Aldi operate from over 400 stores in the UK and 7,500 worldwide and has successfully established itself as one of the most reputable food retailers in the UK”
Transaction StructureOffers are sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) for the Freehold interest on a
forward commitment to purchase basis, comprising an initial site purchase and balancing payment upon completion. A
purchase at this level equates to a Net Initial Yield of 5.9% (assuming purchaser’s costs of 5.8% on the land acquisition
and 1.8% on the balance).
Commencing rent (per annum)
Year 5 Year 10 Year 15
Increase of 2% per annumRunning Yield
£250,000
5.9%
£276,020
6.51%
£304,748
7.19%
£336,466
7.94%
Increase of 2.5% per an-numRunning Yield
£250,000
5.9%
£282,852
6.67%
£320,021
7.55%
£362,074
8.54%
Increase of 3% per annumRunning Yield
£250,000
5.9%
£289,819
6.84%
£335,980
7.92%
£389,493
9.19%
Contact
Martin Carey Partner
020 7255 8085
Rick Mcintosh-WhyteAssociate Partner
020 7255 8064
Jonny DoultonAssociate Partner
020 7255 8099
Tom Day
0113 245 0099
Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at
Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any
of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the
requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon
for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data
licensed from Ordnance Survey - © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright,
All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be
correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to
form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or
warranty in respect of this property. All prices or rents are quoted exclusive of VAT. September 2012
107377 | September 2012
StephenSon Day