Highly Secure Prime Retail Opportunity

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MargaretMargaret Bates
6 years ago
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1 High Street West Bromwich B70 7NN 3,750,000 subject to contract Page 1

Highly Secure Prime Retail Opportunity SUMMARY

from Associated British Foods 10 years term certain

178,532,000 ABF Investments plc Shareholders Funds

2 Highly Secure Prime Retail Opportunity SUMMARY Highly Secure Investment Let to New Look, with AGA from Associated British Foods 10 years term certain New Look Retailers Limited Pre-Tax Profit 178,532,000 ABF Investments plc Shareholders Funds 2,894 million Prime Retail Location Freehold 7.75% net initial yield Page 4

LOCATION West Bromwich is one of the Black Country s most important towns and is located approximately 8 km (5 miles) west of Birmingham city centre, 6.

6 km (1 miles) to the east, which in turn connects to the M6 Motorway to the north and the M42 Motorway to the south.

3 LOCATION West Bromwich is one of the Black Country s most important towns and is located approximately 8 km (5 miles) west of Birmingham city centre, 6.5 km (4 miles) east of Dudley and 13 km (8 miles) south east of Wolverhampton. The town benefits from good road communications with Junction 1 of the M5 Motorway being 1.6 km (1 miles) to the east, which in turn connects to the M6 Motorway to the north and the M42 Motorway to the south. The new underpass scheme at the A41 / All Saints Junction has also improved access to and from the town centre for vehicles, pedestrians and cyclists. West Bromwich is also located on the Midland Metro line between Birmingham Snow Hill and Wolverhampton. The town has 7 stops and the line provides services every 8 minutes at peak time. In addition, Sandwell and Dudley Railway Station is located approximately 1.6 km (1 mile) south west of the town centre providing regular services to Birmingham New Street, Wolverhampton, Edinburgh and London Euston. Birmingham International Airport is approximately 26 km (16 miles) south east of the town. Page 5

SITUATION The property occupies a prime retailing position on the pedestrianised High Street in West Bromwich town centre, in close proximity to the two schemes Queens Square and Kings Square.

4 SITUATION The property occupies a prime retailing position on the pedestrianised High Street in West Bromwich town centre, in close proximity to the two schemes Queens Square and Kings Square. National retailers in the immediate vicinity include Argos, Poundland, Home Bargains as well as EE, O2, Halifax and Santander. The High Street has always been the main shopping location in the town and together with the regular street markets has therefore benefitted from extremely high footfall as shown in the photos. The Queen s Square and King s Square shopping centres are respectively located adjacent and diagonally opposite the subject property. Immediately to the rear of the property is New Square, which opened in 2013, is a Tesco Metro anchored retail and entertainment complex which also includes retail occupiers JD Sports, H&M, Next, Peacocks, River Island, Primark and Carphone Warehouse; leisure occupiers including Prezzo, Nando s, Costa Coffee, Harvester, Greggs and an Odeon cinema. Astle Outlet Park, which is found just off the High Street, originally operated as a retail park but has been transformed into an in town outlet centre offering a range of high street brands outlet stores. Comprising 16 retail units the tenants include a Marks & Spencer outlet, a GAP outlet, Pavers Shoes, Nike outlet, Mecca Bingo and a Pure Gym. The scheme benefits from a 300 space car park and a direct pedestrianised links to High Street. There is extensive car parking in the town centre located at New Square, King s Square and Astle Outlet Park with approximately 2,500 car parking spaces provided within the three schemes. Page 6

The property benefits from a goods lift that opens into the service yard to the rear of the property which provides access for loading and unloading.

5 DESCRIPTION The property comprises a large property of traditional brick construction arranged over basement, ground and one upper floors. The property has been fitted out to a high standard by the tenant to their usual corporate image. The property benefits from a goods lift that opens into the service yard to the rear of the property which provides access for loading and unloading. ACCOMMODATION We have been advised the property provides the following floor areas; Ground Floor Sales 1, sq m 14,202 sq ft First Floor Ancillary 1, sq m 14,202 sq ft Roof / Plant sq m 2,057 sq ft Total 2, sq m 30,461 sq ft Page 8

Therefore, there are 10 years unexpired lease term with no breaks.

6 TENURE Freehold. TENANCY The property is entirely let to New Look Retail Limited on a Full Repairing and Insuring lease for a term expiring on 24 th March Therefore, there are 10 years unexpired lease term with no breaks. The lease has been assigned by Atrium 100 Stores Limited (Tenant) and ABF Investments plc (Guarantor). The Licence to Assign is subject to an Authorised Guarantee Agreement. The current passing rent is 309,097 per annum ( per sq m / per ft overall). The lease benefits from 5 yearly upwards only rent reviews; the next rent review is on 25 th March Page 10

7 COVENANTS Assignee New Look Retailers Limited (Co. No ) has reported the following figures; 26th March th March 2015 Turnover 1,398, ,310,401,000 Pre-Tax Profit 178,532, ,471,000 Total Equity 375,730, ,069,000 New Look is a leading clothing and accessories retail business with a strong market position in the United Kingdom both in-store and online and a growing international footprint. New Look has an extensive presence throughout the United Kingdom with approximately 560 stores in high street and shopping centre locations. In addition, through franchise partners the company has approximately 105 franchise stores in 13 countries. The company s website is reportedly the 3rd most visited online fashion transactional website in the United Kingdom with an average of 4.5 million visitors per week. Guarantor ABF Investments plc (306672) has reported the following figures; 17th September th September 2015 Pre-Tax Profit 1,531 million 279 million Shareholders Funds 2,894 million 2,265 million The principal activity of the company is that of a holding company within the Associated British Foods plc group. Associated British Foods is a range of businesses operating in 50 countries across sectors including Agriculture, Grocery, Ingredients, Retail and Sugar. Its brands include Twining, Ovaltine, Jordans, Dorset, Ryvita, Primark, Twinings, The Silver Spoon Company and Kingsmill amongst many others. For further information visit Page 12

75%, after purchasers costs of 6.52%. INVESTMENT CONSIDERATIONS 1. Opportunity to acquire a freehold retail investment in the heart of West Bromwich town centre; 2.

8 VAT The property has been registered for VAT, however, it is envisaged the transaction will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in the region of 3,750,000 (Three million, seven hundred and fifty thousand pounds), subject to contract reflecting a net initial yield of 7.75%, after purchasers costs of 6.52%. INVESTMENT CONSIDERATIONS 1. Opportunity to acquire a freehold retail investment in the heart of West Bromwich town centre; 2. Undoubted income secured to New Look Retail Limited with an AGA from ABF Investments plc; years unexpired lease term with no breaks; 4. The property occupies a prominent and accessible location; 5. Extremely busy high street as evidenced by the photographs; 6. A purchase at the asking price will provide an investor with an attractive net initial yield for a highly secure investment; Page 14

9 CONTACT US VENDORS SOLICITOR Singer Vielle +44 (0) Asserson +44 (0) Neil Singer +44 (0) David Prais Dale Henry +44 (0) JOINT AGENT Richard Wolfryd +44 (0) Faye Langoulant +44 (0) Louanne Malan +44 (0) Alex Green +44 (0) Toby Leaman +44 (0) Page 17

10 SUBJECT TO CONTRACT & EXCLUSIVE OF VAT Misrepresentation Act 1967 Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but 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. 3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property. 4. All maps are for identification purposes only and should not be relied upon for accuracy. 5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Property Misdescriptions Act 1991 These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment. Concerning the Properties listed and/or appearing on the Site: 1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Properties on the Site. 2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating to any Property listed on this Site or if any Property has been withdrawn from sale or lease nor shall we be responsible for any inaccurate dimensions of any Properties or price listed. 3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or listed on this Site. Such enquiries, purchase or leasing can only be made and permitted strictly subject to the terms and conditions set out below. 4. We do not accept responsibility or liability for the completeness or accuracy of information appearing on this Site which is provided by the Vendors or Lessors of the Property concerned who are solely responsible for such information. 5. Whilst we believe that the Properties listed are available for purchase or lease we make no guarantee that this is the case or that they have not been withdrawn by the Vendor or Lessor of the same. All Properties appearing or listed on the Site are subject to changes, errors or omissions. We have not verified the accuracy of the information relating to the Properties or any dimensions which have been given by the Vendors or Lessors. 6. All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable. Page 18

On behalf of Receivers 19.5 years unexpired with no break options Highly secure income Spirit Group (SF - 366m) Tenant acquired by Greene King Plc in

On behalf of Receivers 19.5 years unexpired with no break options Highly secure income Spirit Group (SF - 366m) Tenant acquired by Greene King Plc in July 2015 City centre location within Norwich s leisure