34-36 High Street, WELLINGTON TA21 8RD. DOMINANT, WELL-LET SUPERMARKET INVESTMENT with fixed rental uplift

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Norah Waters
5 years ago
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1 with fixed rental uplift

2 Investment Summary Wellington is an attractive market town lying on the A38 trunk road in Somerset, seven miles south west of Taunton. It has an affluent catchment area estimated at circa 38,000 people and a growing population, with 2,500 new dwellings proposed. Comprising the town s dominant foodstore, prominently situated in an accessible town centre location, with access points from both Wellington High Street and Scott s Lane. 22,799 sq ft foodstore, with 56 car parking spaces (:46 sq ft), considered by Waitrose to be an optimum size for their current requirements in such catchments. Freehold. Let to the 5A covenant of Waitrose Limited with over 2.5 years unexpired. Passing rent of 42,964 per annum, reflecting 8. per sq ft. Fixed 2.5% pa compound uplift at review in March 209 which will increase the income to 467,23 pa. Our client is seeking offers in excess of 7,375,000 (Seven Million, Three Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would provide an attractive 5.25% Net Initial Yield, with a reversion to 5.94% in March 209, assuming 6.66% purchase costs. The Equivalent Yield is in the order of 5.8%. Total rental income of 42,964 per annum

B3227 Halse A358 B3227 A3038 Milverton Oake Hillfarance Bishop s Hull TAUNTON Langford Budville Nynehead Bradfordon-Tone Rumwell A38 B370 Runnington Trull M5 A38 Thorne St Margaret M5 Sampford

prosperous market town in Somerset in the south west of England.

3 B3227 Halse A358 B3227 A3038 Milverton Oake Hillfarance Bishop s Hull TAUNTON Langford Budville Nynehead Bradfordon-Tone Rumwell A38 B370 Runnington Trull M5 A38 Thorne St Margaret M5 Sampford Arundel Nicholashayne Tonedale B387 Rockwell Green A38 Wrangway A38 Wellington 26 Clayhidon West Buckland M5 Burnworthy Blagdon Hill Poundisford Corfe B370 Location Wellington is an attractive, prosperous market town in Somerset in the south west of England. The town falls under the borough of Taunton Dean and is located 23 miles north east of Exeter, 43 miles south west of Bristol and 7 miles to the south west of Taunton. Wellington benefits from good road communications, being.24 miles from Junction 26 of the M5 motorway, and is linked to Taunton via the A38 Trunk Road. The town is also well served by the national rail network, with Taunton Railway Station located 6 miles to the north east, providing a fastest journey time to London Paddington of hour 42 minutes. Tiverton Parkway railway station is located about 7 miles to the south west. Culm Davy Churchstanton Otterford Wellington is within easy travelling distance of two international airports, Exeter International Airport 9 miles to the south west and Bristol Airport, 36 miles to the north east. Culmstock B339 Churchinford B370 The town has an established manufacturing base, including aerosol and bed-making factories. Other notable institutions include Wellington School and the Wellington Museum. The town centre also benefits from a boutique cinema, The Wellesley, built in Art Deco style in 937 but benefitting from state of the art digital/3d technology and a fully licensed bar. Wellington is an attractive, prosperous market town in Somerset

BUCKWELL LONGFORTH ROAD HIGH STREET LANCER COURT RED LION COURT WHITE HART LANE NORTH STREET HIGH STREET 56 spaces Situation The property is situated just off High Street in the heart of Wellington

4 BUCKWELL LONGFORTH ROAD HIGH STREET LANCER COURT RED LION COURT WHITE HART LANE NORTH STREET HIGH STREET 56 spaces Situation The property is situated just off High Street in the heart of Wellington town centre, with two access points from High Street and Scott s Lane. The immediate area includes predominantly residential and high street retail accommodation, with High Street providing an attractive mix of independent and national retailers including Costa Coffee, Boots, WHSmith, Superdrug and Greggs. FORE STREET SOUTH STREET The property is prominently situated on Wellington High Street

Catchment & Demographics Wellington has a sizeable, relatively affluent catchment population of approximately 38,000 people within a 5 minute drive time, drawn from a number of surrounding villages

In addition, Taunton Deane Borough Council has identified Wellington as a focus for new housing, with the allocation of 2,500 new dwellings, of which a proportion are currently under construction.

Taunton) and wealthy countryside commuter categories. In particular, Comfortable Communities comprise 35% of the catchment and Affluent Achievers 26.2%, against national averages of 26.2% and 22.

5 Catchment & Demographics Wellington has a sizeable, relatively affluent catchment population of approximately 38,000 people within a 5 minute drive time, drawn from a number of surrounding villages (CACI). In addition, Taunton Deane Borough Council has identified Wellington as a focus for new housing, with the allocation of 2,500 new dwellings, of which a proportion are currently under construction. The CACI Acorn report for the catchment indicates higher than average representation in the affluent achiever, comfortable community, mature money, asset rich families, successful suburbs (of Taunton) and wealthy countryside commuter categories. In particular, Comfortable Communities comprise 35% of the catchment and Affluent Achievers 26.2%, against national averages of 26.2% and 22.8% respectively. Foodstore Competition Waitrose is the dominant foodstore in Wellington, with a smaller Asda (7,99 sq ft) and small Co-operative Food (9,367 sq ft ). The local catchment is relatively captive and Waitrose confirm the store is a solid trader. The nearest Waitrose store is in Crewkerne, 26.2 miles to the south east of the subject property. (See Investment Comparables section). Waitrose is the dominant foodstore in Wellington

47 6 64 49 2 55 58 HIGH STREET PH 62 Greenclose Fenton 2 4 3 58 56a 56 4 3 37a 37 74.

6 HIGH STREET PH 62 Greenclose Fenton a a m The Stables B a 32 32a 38 to 36 to 4 RED LION COURT Orchard Villas 3 22b 34a Swan Court El Sub Sta 7 to Description & Accommodation Brooks Place ED Bdy Orchard Court 8 The property comprises a modern, purpose built foodstore constructed in 2009, totalling 22,799 sq ft arranged over ground and first floors. It occupies a 2.2 acre (0.89 hectare) site between Wellington High Street and Scott s Lane and includes a generous 56 car parking spaces, giving an excellent ratio of :46 sq ft Cubitts Place Clifford Villas El Sub Sta 3 BROOKS PLACE Tel Ex 9 SCOTT S LANE 23 Masts Waitrose report that the property is an optimum size for their current requirements in such catchments. The rent review clause stipulates that the floor areas are as follows: Description Area (sq m) Area (sq ft) Ground floor, ,963 First floor 70.56,836 TOTAL 2, ,799 22,799 sq ft arranged over ground and first floors

Tenancy The property is entirely let to Waitrose Limited (original tenant Somerfield Stores Ltd) on full repairing and insuring terms for 20 years without a break from 9 March 2009, expiring on 8

7 Tenancy The property is entirely let to Waitrose Limited (original tenant Somerfield Stores Ltd) on full repairing and insuring terms for 20 years without a break from 9 March 2009, expiring on 8 March The passing rent is 42,964 per annum ( 8. per sq ft). The income increases in March 209 to 467,23 pa due to a fixed 2.5% pa compound uplift. Thereafter, rent reviews are 5 yearly, upward only to open market value. The investment benefits from an attractive expiry profile, with over 2.5 years unexpired. We consider that the passing rent is very affordable, being significantly below those of the majority of the relevant comparables scheduled in these particulars. Importantly, the fixed uplift in 209 is not considered to produce an overrented situation. Tenure Freehold. Covenant Waitrose Limited has a Dun & Bradstreet rating of 5 A, which represents a minimum risk of business failure. Waitrose has over 345 stores across the UK, including convenience branches and Welcome Break service stations. Waitrose also has several stores in the Middle East as well as shipping products to around 50 countries worldwide. More recently, John Lewis Partnership has released annual financial results for the year ended 30 January 206. The highlights for Waitrose were as follows: Gross Sales up.% Operating Profit Before Property Profits up 3.9% Increase in Growth in Customer Numbers 2 new Waitrose branches opened Over the last financial year Waitrose continued to outperform the industry on sales by 2.7% and increased both market share and sales volumes with a current market share of 5.%. A summary of the latest available financial accounting for the past 3 years is detailed below: Tenant Year Turnover Pre Tax Profit Tangible Net Worth D&B Rating 30 Jan 206 5,966,600,000 66,600, ,300,000 Waitrose Limited 3 Jan 205 6,06,700,000 80,600, ,700,000 5A 25 Jan 204 5,640,900,000 09,00, ,600,000 An attractive expiry profile, with over 2.5 years unexpired

Relevant Investment Comparables Property Date Price NIY Passing Rent ( psf) Tenancy Waitrose, Crewkerne December 205 3,600,000 5.00% 699,448 2.5 years remaining ( 22.

96% 540,500 9.25 years remaining ( 6.00) OMV reviews Waitrose, Bromsgrove July 206 3,600,000 5.28% 200,640 5 year lease (Forward Funding, ( 22.

8 Relevant Investment Comparables Property Date Price NIY Passing Rent ( psf) Tenancy Waitrose, Crewkerne December 205 3,600, % 699, years remaining ( 22.06) Fixed increase September 208 Waitrose, Colchester March 206 8,800, % 895, years remaining ( 24.39) OMV reviews Sainsbury s, Newquay April 206 0,250, % 540, years remaining ( 6.00) OMV reviews Waitrose, Bromsgrove July 206 3,600, % 200,640 5 year lease (Forward Funding, ( 22.27) 5 yearly CPI linked reviews at -3% no free on-site parking) pa collar and cap Waitrose, Greenwich On market 8,50, % 77, years remaining ( 24.77) 2.5% pa compund fixed uplifts Waitrose has over 345 stores across the UK

EPC The property has an EPC rating of C 52. Planning The property benefits from open A planning consent. Copies of all relevant planning permissions are available upon request.

9 EPC The property has an EPC rating of C 52. Planning The property benefits from open A planning consent. Copies of all relevant planning permissions are available upon request. VAT The property is elected for VAT. Proposal Our client is seeking offers in excess of 7,375,000 (Seven Million, Three Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would provide an attractive 5.25% Net Initial Yield, with a reversion to 5.94% in March 209, assuming 6.66% purchase costs. The Equivalent Yield is in the order of 5.8% High Street, WELLINGTON TA2 8RD Further Information Mark Girling T: M: E: mark.girling@montagu-evans.co.uk Nick Richardson T: M: E: nick.richardson@montagu-evans.co.uk Emily Dawson T: M: E: emily.dawson@montagu-evans.co.uk Misrepresentation Act 967. 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. August 206. Alamo Design

Belvedere Retail Park, Station Road, Taunton TA1 1NL

Belvedere Retail Park, Station Road, Taunton TA1 1NL Retail Park Investment Located in attractive County Town of Taunton Prominently located, close to Morrisions and within walking distance of Taunton