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 s prime high street retail area and the major development at Fire Pool and proposed development at Coal Orchard Let to Laura Ashley, Bathstore.com and Johnson Cleaners UK AWULT of 6.1 years to expiry and 5.3 years to breaks Total current income 151,000 per annum Long leasehold of 999 years Seeking offers in excess of 2,039,000 reflecting a net initial yield of 7%, assuming normal purchaser s costs of 5.8% November 2015
Location The County Town of Taunton, Somerset is located 49 miles south west of Bristol, 36 miles north east of Exeter and 153 miles west of London. Taunton has good transport links, located 4 miles west of junction 25 of the M5 motorway and connected via the A38 and A358. The town benefits from a direct train service to London Paddington at a fastest journey time of approximately 1 hour 39 minutes. Taunton is the main commercial centre for Somerset and has a district population of 110,200 persons (2011 Census) and a primary retail catchment of 338,000 persons, ranking the town 72 nd on this measure. The town has a higher than average percentage of the population in the more affluent lifestyle groups and a low unemployment rate compared to the UK average. Retailing in Taunton The central shopping area in Taunton comprises circa 1.14 million sq ft of floor space. The town benefits from being some distance from the competing centres of Exeter and Bristol. The prime retail pitch is focused on North Street, Fore Street and East Street and in the Orchard Street Shopping Centre. Major retailers represented in Taunton include Marks & Spencer, Debenhams, Primark, New Look and TK Maxx. Taunton has a restricted out of town retail offer and there are no large format open A1 retail warehouse parks. The total amount of retail warehouse floor space is estimated at 693,000 sq ft. Page 1
Situation The property is prominently situated on Station Road a good secondary retail pitch within minutes walk from the prime retail at the end of North Street, accessed via Bridge Street. The property fronts one of the main arterial routes into Taunton town centre. The property is close to Morrisons superstore and within a short walk of the development at Firpool and the proposed major waterside development at Coal Orchard. Description The property comprises a small scale retail park constructed in 2007. There are three retail units totalling approximately 8,819 sq ft. Units 1 & 2 form the ground floor of a larger block. The first, second and third floors comprise private 1 and 2 bedroom apartments, which are held by a separate company. This company maintains the residential parts and pays a service charge to cover the maintenance of the residential portion of the structure etc. Unit 3 is a single storey standalone retail unit, facing unit 1 and 2, separated by a car parking area providing 17 car parking spaces for shared use between the retail occupiers and their customers. Tenure The property is held long leasehold for a term of 999 years from 25 March 2006 at a peppercorn rent. Planning All 3 retail units have an open A1 planning consent and unit 3 also benefits from A3 consent. Page 2
Tenancy The property is multi-let in accordance with the tenancy schedule below. The total annual rent is 151,000 per annum. All leases are drafted on effective FRI terms by way of a service charge. Unit Tenant Area Sq ft Lease Term Lease Expiry Tenant Break Rent Review Passing Rent /sq ft Comments 1 Bathstore.com Ltd 3,035 15 years from 15/01/2007 14/01/2022 n/a 15/01/2017 60,000 19.77 2 Laura Ashley Ltd 4,489 15 years from 08/02/2007 07/02/2022 n/a 08/02/2017 65,000 14.48 Tenant benefits from 6 months rent free from 08/02/2017. This will be topped up by the vendor 3 Johnsons Cleaners UK Ltd 1,295 15 years from 27/10/2006 26/10/2021 27/10/2016 27/10/2016 26,000 20.08 8,819 Totals 151,000 Page 3
Covenant Information Unit 1 Bathstore.com Ltd 31/07/2014 31/07/2013 31/07/2012 Turnover 112,012 98,903 90,443 Pre Tax Profit -2,272-765 -4,304 Net Worth 2,170 4,122 4,756 Unit 2 Laura Ashley Ltd 31/01/2015 25/01/2014 26/01/2013 Turnover 295,764 287,758 288,878 Pre Tax Profit 22,364 19,144 21,798 Net Worth 109,592 104,562 110,265 Unit 3 Johnsons Cleaners UK Ltd 31/12/2014 31/12/2013 31/12/2012 Turnover 51,531 53,337 60,300 Pre Tax Profit 897-143 -21,259 Net Worth -8,092-8,764-8,935 EPC Copies of the EPC certificates are available on request. VAT We understand the property is elected for VAT. It is anticipated the sale will be dealt with as a TOGC. Page 4
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Proposal We have been instructed to seek offers in excess of 2,039,000 (Two Million and Thirty Nine Thousand Pounds) for our client s long leasehold interest in the property. A purchase at this level would reflect a net initial yield of 7% assuming normal purchaser s costs of 5.8%. Viewings and Enquiries For further information or to arrange an inspection of this property, please contact: Gemma-Jane Ogden Rob Amey T: 0117 946 4529 T: 020 7788 3813 F: 0117 923 9237 F: 020 7491 3032 E: gemma-jane.ogden@htc.uk.com E: rob.amey@htc.uk.com Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, 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 intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn. Page 6