L O N G L E T R E T A I L W A R E H O U S E I N V E S T M E N T
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
INVESTMENT HIGHLIGHTS • Heywood is located 7 miles north of Manchester city
centre and forms part of the Greater Manchester urban area.
• The B&M store is located in a prominent and easily accessible location, adjacent to a dominant and well established Morrisons foodstore.
• Modern unit totalling 33,713 sq ft, let to the 5A1 covenant of B&M Retail Limited.
• Open A1 including food planning consent.
• To be sold by way of a sale and leaseback, with a new 15 year full repairing and insuring lease with 5 yearly upwards only rent reviews, capped at 12% (2.3% per annum).
• Tenant option to renew for a further 10 years at lease expiry.
• Affordable rent of £12.50 per sq ft, £421,413 per annum.
• Freehold.
We are instructed to seek offers in the region of £6,080,000 (Six Million and Eighty Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 6.50% (assuming purchaser’s costs of 6.63%).
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
To be
LOCATION Heywood is located between Rochdale and Bury, with Rochdale 3.5 miles to the east and Bury 4.5 miles to the west. The town is 7 miles north of Manchester city centre and forms part of the Greater Manchester urban area.
Heywood benefits from its ease of accessibility, situated close to Junction 9 of the M62 motorway and Junction 2 of the M66 motorway. The town is on the East Lancashire Railway line, which links the town to Bury and Rochdale. A new rail line from Rawtenstall to Manchester, incorporating Heywood, is proposed as part of further improvements to connectivity across the north of England.
SITUATION The subject property is located in a prominent and easily accessible location, adjacent to a 74,335 sq ft, well established Morrisons foodstore with a petrol filling station. The town centre is in close proximity to the scheme, and there are a number of residential dwellings, pubs and restaurants situated close by as well. Adjacent to the Morrisons are a number of smaller units where occupiers include Subway and Barnardo’s alongside some local retailers. The A58 links from the M66 to the town centre, off which the subject property can be accessed. There is a second customer access point to the scheme via Bamford Road.
BURY AND ROCHDALE OLD ROAD
A664
ROCHDALE ROAD
A58 A58
ROCHDALE ROAD
WHITTLE LAN E
MANCHESTER
HEYWOOD
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
CATCHMENT & DEMOGRAPHICS
of the subject property
Population growth of 3.48% by 2022 within the
20 minute drive time
3.48% population growth
Heywood is home to one of the UK’s largest single owned industrial estates where
occupiers include Eddie Stobart, Argos and Shop Direct Group
Greater Manchester has a GVA of
£62.8 billion New £25 million
link road to the M62 motorway, new homes and a new school planned for the town
GVA
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
Catchment population of Greater Manchester of
2.8 million people
RETAIL WAREHOUSING IN HEYWOOD There is no other retail warehousing in Heywood itself, with the next closest schemes being in Bury and Rochdale.
BURY AND ROCHDALE OLD ROAD
COLLEGE ROAD
ROCHDALE ROAD
A58 A58
ROCHDALE ROAD
WHITTLE LAN E
Halfords, Argos, Matalan & Poundstretcher (avg £16.00 psf)
Woodfields Retail Park (152,564 sq ft)
Boots, Next, Sportsdirect, Currys, JD Sports
& McDonald’s (avg £27.50 psf)
Moorgate Retail Park (51,787 sq ft)
Home Bargains, Carpetright, Halfords,
Angouleme Retail Park (76,273 sq ft)
TK Maxx, Argos & Poundstretcher (avg £15.00 psf)
Sandbrook Retail & Leisure Park (82,805 sq ft)
Homebase, PureGym, Tenpin Bowling, Odeon, Pizza Hut,
Frankie & Benny’s, McDonald’s & Subway
Halls Mill Retail Park (35,000 sq ft)
Bensons, Pets at Home & Smyths Toys
(avg £15.00 psf)
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
DESCRIPTION The subject property is a purpose built retail unit of 33,713 sq ft, which will occupied by B&M. The building has an attractive stone clad frontage, in keeping with the adjacent Morrisons unit. B&M have recently taken access of the unit and are currently fitting out in keeping with B&M’s latest format. The unit incorporates a first floor of 4,069 sq ft (included within the GIA) predominantly used for staff amenities and ancillary offices. Parking is situated to the front and side of the store, shared with the adjoining Morrisons. Servicing to the unit is segregated with separate access to the customer car park via Foundry Street. The whole site area, including the Morrisons foodstore and petrol filling station totals 8.91 acres and includes 372 customer car parking spaces and 39 staff car parking spaces.
Modern retail unit totalling 33,713 sq ft let to the 5A1 covenant of B&M Retail Limited
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
TENANT COVENANT B&M Retail Limited was formed in 1978 and is now one of the leading variety retailers in the UK, employing 28,000 staff in over 600 stores. B&M’s strategy is to purchase directly from factories or to seek over production and bulk buy opportunities. It is a highly efficient model and is considered to be “Internet Resistant”. Quite simply, customers cannot buy items cheaper online, particularly taking into account standard delivery costs. We set out below the most recent company accounts for B&M:
Tenant Year Ending
5A1 25/03/2017 £2,252,265 £198,006 £498,412
TENURE The property is held freehold, as per the plan below delineated in red.
By way of a Deed of Transfer from Morrisons, the freeholder and tenant have rights to park in 372 car parking spaces to the front of this property, in common with Morrisons and the adjoining owners and occupiers, as shown approximately in green on the plan, and this must be maintained by Morrisons at all times as a surface level car park.
There is a restrictive covenant in favour of Morrisons preventing no more than 10% of the GIA of the property to be used for the sale of food and drink.
Within the Deed of Transfer there are rights to use the common parts of the Estate and for servicing. There are service charge provisions in the Deed of Transfer in relation to the repair and maintenance of the common parts, the cost of which is to be borne by the tenant. The overall Estate is shown in blue on the plan.
Further details are available on request. PLANNING Planning permission was originally granted in 1995 for the wider development, which included the Morrisons foodstore and petrol filling station and 6 non-food retail units. Permission was subsequently granted for the refurbishment of the subject property in 1997. The subject property benefits from having an unrestricted open A1 consent.
TENANCY The property will be let, simultaneous to the sale, on a new 15 year full repairing and insuring lease at a rent of £421,413 per annum, reflecting £12.50 per sq ft. This has been set by the occupier to ensure it is at an affordable level for the retailer. Rent reviews are 5 yearly upwards only and to open market rental value, capped at a maximum of 12% (2.3% per annum) uplift for each review. The tenant will have the option to renew at lease expiry for a further 10 years.
A draft lease is available for interested parties.
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10 4PN
EPC The property has a “C57” EPC rating.
VAT We understand the property has been elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern.
PROPOSAL We are instructed to seek offers in the region of £6,080,000 (Six Million and Eighty Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 6.50% (assuming purchaser’s costs of 6.63%).
CONTACTS Ellie Kirkby T 020 7317 3790 M 07764 241 898 E ellie.kirkby@avisonyoung.com
Paul Wilkinson T 020 7317 3799 M 07770 585 313 E paul.wilkinson@avisonyoung.com
MISREPRESENTATION NOTICE. Avison Young give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. The B&M logo has been superimposed on the buildings for presentational purposes. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. July 2019. Designed and produced by Creativeworld Tel: 01282 858200.
Avison Young 22 Ganton Street London W1F 7FD avisonyoungretail.co.uk
B&M are taking a new 15 year lease at a rent of £421,413 per annum, reflecting £12.50 per sq ft