Shopping Park. Prime open consented shopping park investment. Main Street, Strabane BT82 8EW

Transcription

1 Shopping Park Prime open consented shopping park investment Main Street, Strabane BT82 8EW

2 Strabane is located 16 miles south west of Londonderry and 2 miles from the Republic of Ireland border Forms part of a larger retail cluster which provides the main retailing facilities in Strabane Open Class 1 Shopping Park, developed in 2006 comprising 23,317 sq ft and benefiting from 110 car park spaces 100% occupied with tenants including Argos, New Look, Peacocks and Menarys 65.6% income is secured against very low risk Experian ratings WAULT: 4.36 years to break, 4.97 years to expiry Asset Management opportunities to regear leases and construct pods, subject to planning Low rent varying from psf to psf Current rent 280,000 per annum, considered revisionary to 314,750 per annum Freehold We are instructed to seek offers in excess of 3,285,000 (Three Million, Two Hundred and Eighty Five Thousand Pounds). A purchase at this level reflects a net initial yield of 8.00% revisionary yield of 9.00% and an equivalent yield of 8.67% after allowing for acquisition costs at 6.48% Red Line Aerial to include retailer logos. 02 Prime Open Consented Shopping Park Investment *Boundary Line for indicative purposes only Strabane Shopping Park, Main Street, Strabane BT82 8EW 03

3 Strabane is a strong market town located to the west of Northern Ireland approximately 18 miles north west of Omagh and 16 miles south west of Derry City. The park is situated to the west of Strabane town centre adjacent to the A5 Derry/Omagh Road. Immediately adjacent to the subject property is Lesley Retail Park with retailers represented including Sports Direct, Poundland and Poundstretcher. On the other side of the road is a 65,000 sq ft ASDA. The subject park benefits from excellent prominence and road visibility. The property is located less than 2 miles from the Republic of Ireland and consequently benefits from high levels of cross border retail trade. Developed in 2006 the property comprises 23,317 sq ft of modern purpose build retail warehouse accommodation. The park comprises 4 units, all benefiting from mezzanine floors, with access via Main Street. There is a separate service access to the scheme. The park provides for 110 car park spaces (ratio of 1:212) and the total site measures c.1.73 acres. Park Rd Coleraine Derry Rd Letterkenny Lifford Derry City Strabane Omagh Ballymena Larne Belfast ourne River Lifford Rd Railway St Dock St Planning Permission was granted on 5 June 2007 for the construction of 4 no. open class 1 non-food retail units measuring 4,208 sq m Planning reference J/2006/0961/F. Enniskillen Newry Abercorn Sq Main St TRAVEL TIME BY CAR: Belfast 95 mins Derry City 18 mins A5 M ou rn e Riv er John Wesley St Castle St Castle Place Butcher St Bowling St Omagh 20 mins Dublin Market St Lifford 5 mins Bradley Way 04 Prime Open Consented Shopping Park Investment Strabane Shopping Park, Main Street, Strabane BT82 8EW 05 Bridge St

4 DEMISE UNIT 1 Argos Ltd SQUARE FEET 7,572 PASSING RENT P.A. ( ) 93,750 PASSING RENT P.A. ( /PSF) ERV 102,220 ERV ( /PSF) LEASE START LEASE END BREAK DATE RENT REVIEW COMMENTS Five yearly upward only OMV rent reviews. Additional mezzanine area of 7,572 sq ft INCOME AS A % OF BUSINESS FAILURE: Very Low Risk 65.6% Below Average Risk 22.3% Other 12.1% Investment activity in Northern Ireland for totalled in excess of 400 million, with over 68% in the retail sector. Direct investors in the Northern Ireland Market over the last 12 months include Tristan Capital Partners, Pradera, CBRE Global Investors, Ellandi, AEW Europe, Threadneedle, M&G, Capital & London Plc and Rockspring. Q has seen in excess of 120m transactions across all sectors. UNIT 2 Menarys Retail Ltd 2,983 33, , Discussion ongoing to remove tenant break UNIT 3 UNIT 4 Total: Peacocks Stores Ltd New Look Retailers Ltd 5,446 7,316 23,317 62,500 90, , ,500 98, , Additional mezzanine area of 2,963 sq ft Five yearly upward only OMV rent reviews. Additional mezzanine area of 5,569 sq ft DONEGAL L DERRY The retail sector in Northern Ireland continues to improve with a number of new entrants gaining representation and existing occupiers expanding including Next, Sports Direct, New Look, Superdry, M&S and Home Bargains. Vacancy rates are low and rent frees/tenant inducements are reducing. We are of the opinion that ERV for the subject property is psf, underpinned by rents at Lesley Retail Park as follows: OMAGH Lesley Retail Park BRANCH ROAD FIRE STATION TOWN CENTRE Retail/Coffee pod in car park (subject to planning) Plans available on request Potential lease regears: Menarys removal of break Peacocks: new 5 year revisionary lease, Heads of Terms agreed SIZE (SQ FT) / PSF EFFECTIVE DATE EXPERIAN % INCOME YEAR END SALES TURNOVER ( / 000) PROFIT / LOSS TANGIBLE NET WORTH ( / 000) NUMBER OF STORES Extension of park into adjacent holding Poundstretcher 7, Jul-10 Very Low Risk 33.50% 3,919,176 97,146 1,202, Poundland 12, Feb-10 N/A 12.10% 21, , MAIN STREET Sports Direct 12, Oct-14 Below Average Risk Very Low Risk 22.30% 32.10% 351,680 1,310,401 67, ,471 33, , RIVER MOURNE Environmental and Building Survey reports are available in the data room and are provided on a non-reliance basis. *Boundary Line for indicative purposes only Prime Open Consented Shopping Park Park Investment *Source: Experian Strabane Shopping Park, Main Street, Strabane BT82 8EW 07 K

5 The 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. The units have been assessed as follows: A data room has been set up for prospective purchasers to review due diligence. Further details on request. The property is held freehold. Robert Ditty T: M: E: robert.ditty@cbre.com Andrew Coggins T: M: E: andrew.coggins@cbre.com DEMISE UNIT 1 UNIT 2 UNIT 3 UNIT 4 Argos Menarys Peacocks Stores New Look Full Energy Performance Certificates are available in the Data Room. EPC D89 D78 D86 C64 We are instructed to seek offers in excess of 3,285,000 (Three Million, Two Hundred and Eighty Five Thousand Pounds). A purchase at this level reflects a net initial yield of 8.00% reversionary yield of 9.00% and an equivalent yield of 8.67% after allowing for acquisition costs at 6.48% Mark Morgan T: M: E: mark@morganwilliams.co.uk Tom Watson T: M: E: tom@morganwilliams.co.uk 08 Prime Open Consented Shopping Park Investment 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. September 2016.