Prime Convenience Store Investment M Local, Upton Rocks District Centre, Queensbury Way, Upton Rocks, Widnes WA8 9DT
INVESTMENT SUMMARY n The property is located in Upton Rocks, an affluent suburb of Widnes n Situated in a prominent position on the Upton Rocks District Centre n New build convenience store of 425.46 sq.m (4,580 sq.ft) n The store ranks 3rd out of Morrison s entire 158 convenience store estate n Morrison s paid a premium of 150,000 to secure the store n Let to W M Morrison Supermarkets Plc for a further 12.5 years n 5 yearly upward only reviews to RPI, capped at 10% per review period n Current rent 69,056 per annum n Freehold n Offers sought in excess of 1,090,000 n Net initial yield 6.00%, and a reversionary yield based off the forecasted rent at review in 2017 of 6.52% (assuming costs of purchase of 5.8%). LOCATION Widnes is an established commuter town situated on the north bank of the River Mersey, approximately 11 miles east of Liverpool and five miles west of Warrington. The town has an urban area population of approximately 57,600 people and is served by excellent road communications. The A561 dual carriageway to the south links to Liverpool to the west and junction 12 of the M62 motorway to the south. The A5300 and the A557 link to junction 6 and 7 of the M62 motorway to the north. Liverpool John Lennon and Manchester Airport are situated 6 miles to the west and 25 miles to the east respectively.
SITUATION The property is situated on the Upton Rocks District Centre which also includes a Greene King public house. A new development of four retail units is currently being constructed in the centre, adjacent to the subject property which will include Barnardos, Subway, Whitecross Vets and Stanley Bet. To the rear of the property Morris Homes are constructing 48 new homes. Upton Rocks is a large modern housing estate two miles to the north of Widnes town centre and three miles from junction 7 of the M62. The estate extends to over 2,500 homes and in the immediate vicinity of the subject property a substantial residential development has been completed in the last five years principally providing high value four and five bedroom homes. DESCRIPTION The property forms the anchor unit for the district centre and comprises a single storey purpose built convenience store. The store includes a large sales area with stores and a bakery to the side elevation. To the front of the property is a 35 space car park including seven disabled spaces and four parent and child spaces. Access is off Lanark Gardens which leads directly to Queensbury Way. There is a yard, including seven staff car parking spaces, to the rear of the property with separate access off Queensbury Way. TENURE The property is held freehold and includes the Greene King demise and the demise for the retail units. The Greene King demise, edged blue on the site plan, is let long leasehold for a term of 999 years from 24 October 2011 to Greene King Developments Ltd at a peppercorn rent per annum. The tenant is to pay a third of the costs of the maintenance of the common parts of the estate. The retail units demise, edged green on the site plan, is let long leasehold for a term of 999 years from 24 October 2011 to Hale Village Ltd at a peppercorn rent per annum. The tenant is to pay a third of the reasonable costs of the maintenance of the common parts of the estate and has a right to park in the car park to the front of the subject property.
TENANCY The property is let to W M Morrison Supermarkets Plc for a term of 15 years from 27 September 2012. The current rent is 69,056 per annum. The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews to RPI, capped at 10% per review period. The next review is on 27 September 2017. The tenant paid a 150,0000 premium to secure the unit. COVENANTS WM Morrison Supermarkets Plc is the UK s fourth largest food retailer by sales, with an annual turnover in excess of 16.8bn as of February 2015. The company has over 525 stores (158 convenience stores) across the UK, employing approximately 125,000 people across the portfolio, and benefits from over 12 million customers visiting the company s stores each week. The subject property ranks 3rd out of Morrison s entire 158 convenience store estate. A summary of W M Morrison Supermarkets Plc s accounts is set out below. W M Morrison Supermarkets Plc 01/02/2015 01/02/2014 01/02/2013 Turnover 16,816,000 17,680,000 18,116,000 Pre-tax Profit (Loss) (792,000) (176,000) 879,000 Net Assets 3,594,000 4,692,000 5,230,000 The company has a Dun and Bradstreet rating of 5A1.
EPC The property has an EPC rating of A24. The report can be provided upon request. VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC. PROPOSAL We are instructed to seek offers in excess of 1,090,000 (One Million and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.00%, assuming usual costs of purchase of 5.80%. Assuming published RPI growth since the commencement of the term and forecasted growth of 1% per annum up to the rent review date in 2017 the reversionary yield could be 6.52%. CONTACTS For further information or if you wish to arrange a viewing, please contact :- BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk ANDREW FRANCK-STEIER 0121 513 0891 andrew.franck-steier@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/ purchasers should satisfy themselves as to the condition of such equipment for their requirements.