REGENT RETAIL PARK - Cushman & Wakefield · PROPOSAL We are instructed to seek offers of £31,000,000 (Thirty One Milllion Pounds) ... Salford Quays is a major waterside urban regeneration

REGENTRETAIL PARKSalford | Manchester | M5 3TP

Open A1 Non-Food Retail Park Investment

REGENT RETAIL PARK | 2

• Greater Manchester has a population of approximately 2.6 million, making it the second largest conurbation in the UK.

• Salford is situated 4.0 km (2.5 miles) west of Manchester city centre and is highly accessible via the A57 Regent Road, the inbound carriageway which turns into The Mancunian Way, the inner ring road of Manchester city centre.

• The park sits within an improving socio-economic environment led by a pro regeneration and development council. There are approximately 5,075 new homes and 3,250,000 sq ft of new commercial accommodation to be built out over the next few years within a 2.4 km (1.5 miles) radius of the scheme.

• Regent Retail Park is prominently located occupying a key trading position on the A57 Regent Road adjacent to the recently extended and refurbished 8,585 sq m (92,415 sq ft) J Sainsbury, off the back of positive trade.

• The scheme predominantly draws upon the central western catchment of the conurbation, with an estimated population of circa 282,000 and 677,000 residing within a 10 and 15 minute drive time respectively.

• The modern ‘L’ shaped scheme totals 10,805 sq m (116,314 sq ft) across 10 units with an extensive car park provision of 474 spaces giving a ratio of 1:245 sq ft.

• The park is fully let to national retailers including TK Maxx, Sports Direct, Dunnes, Argos, Pets at Home, Poundstretcher, Home Bargains, Boots, Deichmann Shoes and Maplin.

• The units are let at passing rents ranging from £18.24 psf to £22.50 psf and provide a total scheme income of £1,881,615 per annum.

• The average weighted unexpired term is c.3.45 years across the scheme with 89.8% of the income rated as ‘Very Low Risk’ by Experian. Building on the existing retailing provision the scheme offers a number deliverable asset management opportunities to drive future performance.

• The park has an Open A1 Non-Food planning consent, with the exception of 1,394 sq m (15,000 sq ft) gross floorspace able to be used for the purposes of food retailing.

• The property is held long leasehold from Salford City Council for a term of 150 years from 10th December 1993 (approximately 128 years unexpired) at a peppercorn rent.

INVESTMENT SUMMARY

PROPOSALWe are instructed to seek offers of £31,000,000 (Thirty One Milllion Pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a Net Initial Yield of 5.74%, assuming purchaser’s costs of 5.8%.

M602Jct 3

A57

A57

A5066

A56

A56

A56

A6041

A6

A6

A34

A56

A5063

A5066

A6

A5066

A57

A57(M)

A57(M)

A6042

A665

Salford Central

Manchester Victoria

Salford Crescent

Salford Central

Manchester Victoria

Salford Crescent

Middlewood Rd

Liverpool Street

Ords

all La

ne

Middlewood Rd

Ords

all La

ne

Liverpool Street

ManchesterOxford RoadDeansgateManchesterOxford Road

ManchesterPiccadilly

DeansgateManchesterOxford Road

ManchesterPiccadilly

MANCHESTERMANCHESTER

A6042

A5067



REGENT RETAIL PARK

LOCATION & COMMUNICATIONSManchester is the acknowledged capital of the North of England and is the largest commercial, cultural and financial centre outside London.

The City is the second most populous conurbation in the UK after London totalling approximately 2.6 million (according to the 2011 census). As a major UK city it is highly integrated into the national transport network served by the M56, M60 Manchester Orbital, M602, M61, M62 and M67 motorways making it highly accessible to the surrounding region and rest of the UK.

Manchester is well served by two major railway stations with Manchester Piccadilly to the south and the £44 million newly refurbished Manchester Victoria Station to the north. Manchester Piccadilly is the principal terminus to the South on the West Coast Mainline with a journey time to London Euston of approximately 2 hours 10 minutes. Other destinations from the stations include Liverpool, Sheffield, Leeds, Birmingham, Newcastle-upon-Tyne, Oxford, Bristol, Glasgow and Edinburgh.

Manchester Airport is the third busiest airport in the UK and the largest regional airport with over 22.8 million passengers annually. The £1 billion investment programme led by Manchester Airports Group (MAG) over the next 10 years is set to transform Manchester Airport expanding services and allowing it to double the number of passengers it handles a year to more than 45 million.

Salford, a City in its own right, is situated less than 3.8 km (2.4 miles) north west of Manchester city centre accessible via The Mancunian Way, the inner ring road A57(M) which turns into Regent Road (A57). Salford’s population can also access the City via Salford Crescent railway station whilst the Eccles line of the Manchester Metrolink runs through the City of Salford.


Swinton

Pendlebury

Old Trafford

Walkden

Sale

Salford

Swinton

Pendlebury

Old Trafford

Walkden

Sale

Salford

Barton Moss

UrmstonUrmston

Barton Moss

Alder ForestAlder Forest

A34

A6017

A635

Eccles

Trafford

Eccles

Trafford

Hulme

Whalley Range

Hulme

Whalley RangeStretfordStretford

A576

A664

M60

M67

M602

M62

A56

A62

A663

A56

A580

A5063

A5081

A5181

A6104

A5145

A576


15 Minutes5 Minutes

Drivetimes

10 Minutes

REGENT RETAIL PARK

DEMOGRAPHICSSalford has a 233,900 strong population (according to the 2011 census) with a total population catchment of 282,000 and 677,000 residing within a 10 and 15 minute drive time respectively of Regent Retail Park. The population profile of the catchment includes a large percentage of students and young professionals with the University of Salford situated 1.44 km (0.9 miles) north west of the subject property with c. 20,000 students and along with the popular living quarters of Spinningfields and Castlefield’s for young professionals situated less than a mile east.

Salford Quays is a major waterside urban regeneration area situated on a 126 acre site within the former Salford Docks. It has seen significant development over the last 25 years following the creation of the Salford Enterprise Zone. The success of Salford Quays is underlined by the quality of office occupiers who have been attracted to the area including BBC, ITV, Salford University, Bupa, TalkTalk, RBS, Cornhill Insurance, Japan Tobacco, Marks & Spencer and Avis.

As well as an established office location, Salford Quays is also a popular leisure destination, attracting millions of visitors each year. The Lowry Arts Complex opened in 2000 and is one of Manchester’s most popular tourist attractions. The area is also home to Old Trafford, Manchester United’s football ground, The Intu Trafford Centre, The Imperial War Museum North and the Chill Factor amongst the facilities.

Trafford Park, one of Europe’s largest industrial estates and the regions premier industrial location is located 4.0 km (2.5 miles) south-west of Salford with a mixture of industrial premises, from small starter units to large warehouse, distribution and manufacturing facilities. Key occupiers include Kellogg’s, Allied Mills, Adidas and Cargill PLC.

SALFORD HAS A 233,900 STRONG POPULATION, WITH A TOTAL POPULATION CATCHMENT OF 282,000 AND 677,000 RESIDING WITHIN A 10 AND 15 MINUTE DRIVE TIME RESPECTIVELY OF REGENT RETAIL PARK

“

”


M602Jct 3

A57

A57

A5066

A56

A56

A56

A6041

A6

A6

A34

A56

A5063

A5066

A6

A5066

A57

A57(M)

A57(M)

A6042

A665

Salford Central

Manchester Victoria

Salford Crescent

Salford Central

Manchester Victoria

Salford Crescent

2REGENT RETAIL PARK

Salford City Council have a clear and ambitious target to encourage regional, central and international investment over future years into the regeneration and development of Salford, improving the socio-economical heart of the City, http://beta.salford.gov.uk/planning-building-and-regeneration/regeneration/. This drive has seen a number of planning submissions and approvals in the immediate vicinity of the subject property which include:

Wilburn Street Basin – The redevelopment of the 1.2 ha (3.0 acre) site adjacent to Regent Retail Park on Ordsall Lane is currently onsite constructing 491 residential units across four buildings, due to complete at the end of 2016.

Middlewood Locks – The mixed use 9.55 ha (23.6 acre) site situated to the rear of Regent Retail Park has been granted outline planning consent earlier this year following China’s Xinjiang Hualing Industry & Trade Group investment into the Scarborough Development Group. The £730 million master planned scheme includes 2,000 homes with 750,000 sq ft of mixed-use space. Phase 1 is due to commence on site at the end of this year. http://middlewood-locks.co.uk/interactive-brochure.php

Bridgewater Point – This recently approved residential development includes 220 homes in Ordsall Riverside by Beaumount Morgan and Fortis Developments across two sites on Ordsall Lane and Woden Street.

Ordsall Apartments – MMGG Properties has submitted a planning application to develop 142 residential units on a brownfield site fronting onto Ordsall Lane.

Sites 3 & 4 form part of Ordsall Riverside, a 30.6 ha (75.6 acre) strip of land between Ordsall Lane and the River Irwell Manchester Ship Canal extending from Trafford Road in the south west to Regent Road in the north which has been identified for regeneration to create a vibrant mixed-use area comprising residential, commercial and leisure uses.

New Bailey – The master planned development is situated 1.44 km (0.9 miles) north east of Regent Retail Park and is to provide 2.5 million sq ft of office, retail and leisure space, 849 new homes and 390 hotel rooms. Funded by Legal & General Capital with development partner English Cities Fund, the first phase of construction, the 615 space NCP car park was completed in November last year whilst One New Bailey, the 125,000 sq ft Grade A office building is under construction due to complete mid-2016. Further information: http://www.new-bailey.com/index.php

X1 The Exchange – The scheme off Trafford Road totaling 140 apartments is currently under construction with a further phase of 133 apartments due to go planning committee before the end of year.

X1 Media City – The construction of 1,100 apartments across four 26 storey blocks by X1 Developments and Knight Knox International has been granted permission by Salford City Council on the site adjacent to The Quays on Michigan Avenue near MediaCity.

REGENERATION

1

2

3

4

5

6

7

7

3

6

4

5

1

LinnyshawLinnyshaw

CliftonClifton

WorsleyWorsley PendleburyPendlebury

PrestwichPrestwich

EcclesEccles

Chorlton-cum-HardyChorlton-cum-Hardy

StretfordStretfordUrmstonUrmston

A57(M)

M60

M60

M60

M602M62

A6010

A576

A576

A580

A576

A576

A580

A666A6044

A5181

A6144

A5145 A5079

A6

A6

A6

A6

A34

A56

A56

A56 A5067

A5066

A6010

A6

A6010


SwintonSwintonCheetham HillCheetham Hill

AncoatsAncoats


1

2

3

4

5

REGENT RETAIL PARK

Regent Retail Park is the dominant retail park within Salford immediately adjacent to the City’s main foodstore provision a recently extended and refurbished 8,585 sq m (92,415 sq ft) J Sainsbury with petrol filling station. This investment by the food retailer is due to positive trade drawing on the surrounding greater Manchester conurbation. On the opposite side of the A57 Regent Road is a McDonald’s, KFC and a Grosvenor Casino. Other surrounding retail provision includes:

Red Rose Retail Centre – Situated less than half a mile north west along Regent Road from the subject property is Red Rose Retail Centre totalling 9,996 sq m (107,600 sq ft) with retailers such as Screwfix, Topps Tiles, Carpetright and Cousins Furniture.

White City Retail Park – White City Retail Park totalling 19,562 sq m (210,570 sq ft) is situated 2.57 km (1.6 miles) to the south has recently experienced a refurbishment and an extension. Retailers on the scheme include Currys, Furniture Village, Sofaworks, ScS, Halfords, Dreams and Costa.

Salford Shopping Centre – Salford Shopping Centre comprising of 80 units is situated 2.9 km (1.8 miles) north west of Regent Retail Park with a number of value retailers. The scheme is also anchored by a Tesco Extra.

MediaCityUK – MediaCityUK the mixed use development which offers approximately 92,903 sq m (1 million sq ft) of office, retail accommodation, a 218 bed hotel, 2,137 sq m (23,000 sq ft) Booths foodstore and a number of leisure facilities is situated 2.9 km (1.8 miles) south west of the subject property.

West One Retail Park – The West One Retail Park in Eccles situated 4.66 km (2.9 miles) west of Regent Retail Park totals 13,859 sq m (149,182 sq ft) is currently let to The Range, Next Clearance, Home Bargains, WH Smith, The Carphone Warehouse, McDonald’s and Subway with approximately 5,759 sq m (62,000 sq ft) of vacant accommodation.

OTHER RETAIL PROVISION

1

2

3

4

5


THE PARK HAS A STRONG TENANT LINE UP WITH INSTITUTIONALLY ACCEPTABLE COVENANTS FROM RETAILERS SUCH AS TK MAXX, ARGOS, PETS AT HOME, POUNDSTRETCHER, SPORTS DIRECT, HOME BARGAINS, MAPLIN, DEICHMANN SHOES, BOOTS AND DUNNES

“

”


Regent Street

Oldf

ield

Roa

d

Ords

all L

ane

Regent Retail Park, a modern purpose built scheme, was developed in 1994/1995 on a site extending to approximately 3.37 ha (8.3 acres). It is made up of 10 units arranged in a ‘L’ shaped configuration totalling 10,805 sq m (116,314 sq ft).

It is the dominant retail park within Salford and enjoys a prominent trading position just off the A57 Regent Road the inbound carriageway which turns into The Mancunian Way the inner ring road of Manchester city centre. According to the Department for Transport the average daily flow of traffic on the A57 in 2014 passing the subject property was 40,653 vehicles.

The park has a strong tenant line up with institutionally acceptable covenants from retailers such as TK Maxx, Argos, Pets at Home, Poundstretcher, Sports Direct, Home Bargains, Maplin, Deichmann Shoes, Boots and Dunnes. The unexpired average lease term for the scheme is approximately 3.45 years offering several deliverable asset management opportunities to drive future performance.

The retail warehouse units are of steel portal frame construction with brickwork and sheet metal elevations. The terrace has a pitched roof with the eaves height understood to be 6 metres. The units range in size from approximately 557 sq m (6,000 sq ft) to 2,090 sq m (22,500 sq ft) in the park’s current configuration. The accommodation is flexible and the units could be subdivided or combined as required, subject to planning consent.

Servicing is provided to the rear of all units with a common service yard accessed from Oldfield Road to the west of the subject property.

The extensive landscaped car parking area to the front of the ‘L’ terrace provides 474 car spaces, equating to a ratio of 1:245 sq ft. The adjacent J Sainsbury and Staples offers an additional 473 customer car parking spaces.

DESCRIPTION & SITUATION

PFS

Indicative Lease Plan

The property has an Open A1 planning consent, predominantly Non-Food Retail with the exception of 1,394 sq m (15,000 sq ft) gross floorspace used for the purposes of food retailing.

The adjacent J Sainsbury’s lease dated 29 October 1992 has a restriction on the title for the duration of the lease which limits the sale of food to a gross sales area of 464 sq m (5,000 sq ft).

Further information is available upon request.

PLANNINGREGENT RETAIL PARK | 9

Unit Tenant Trading FasciaGround

GIA (sq ft)Term (Yrs)

Lease Start Lease Expiry Next RR DatePassing Rent (per annum)

Passing Rent (per sq ft)

Comments

A1 Tjx Uk TK Maxx 22,500 5 24/01/2015 23/01/2020 – £410,500 £18.24Reversionary lease agreed before expiry of previous lease.

A2 Argos Limited Argos 10,698 15 12/08/2002 11/08/2017 – £213,960 £20.00A ‘Hub’ store for Argos within the Manchester conurbation.

B Pets At Home Limited Pets at Home 10,077 10 19/09/2011 18/09/2021 19/09/2016 £226,733 £22.50

C Poundstretcher Limited Poundstretcher 10,114 25 24/06/1994 23/06/2019 – £192,000 £18.98Increased from £186,000 per annum at June 2014 review. 15 year term assumption.

D1Sportsdirect.com Retail Limited

Sports Direct 10,109 15 24/06/2001 23/06/2016 – £202,000 £19.98

D2 T J Morris Limited Home Bargains 10,071 14 01/11/2004 23/06/2019 29/09/2014 £201,420 £20.00

E1 Maplin Electronics Limited Maplin 6,157 16 10/01/2003 23/06/2019 10/01/2013 £129,000 £20.95Nil uplift to be agreed in regards to January 2013 review.

E2 Deichmann-Shoes Uk Limited Deichmann Shoes 6,118 15 16/08/2001 15/08/2016 – £128,000 £20.92

F Boots Uk Limited Boots 8,673 25 24/06/1995 23/06/2020 24/06/2015 £178,000 £20.52

GDunnes Stores Properties (Uk) Limited

Dunnes 21,797 149 10/12/1993 01/12/2143 – Peppercorn

Electricity North West Ltd – 150 10/12/1993 09/12/2143 – £1

Electricitynorth West Ltd – 99 22/06/2001 21/06/2100 – £1

Redbus Retail Advertising Ltd – 3 01/09/2009 01/09/2012 – –

Spaceandpeople Plc – 3 01/04/2013 31/03/2016 – –

TOTAL 116,314 £1,881,615

TENANCIES

89.8% OF THE INCOME IS SECURED AGAINST COVENANTS RANKED WITH A “VERY LOW RISK” RATING WITH THE OUTSTANDING 10.2% OF THE INCOME RATED “BELOW AVERAGE”

“

”

The units are let at rents ranging between £18.24 and £22.50 psf which is a very affordable rental tone. The most recent new letting on the park was to Pets at Home in 2011 at £22.50 psf and TK Maxx was regeared at £18.24 psf.


Year to DateTurnover (000’s)

Pre Tax Profit (000’s)

Net Worth (000’s)

Creditsafe Rating

28/01/2012 1,353,600,000 35,400,000 370,600,000

10002/02/2013 1,814,600,000 80,500,000 437,400,000

01/02/2014 1,995,000,000 91,500,000 501,700,000



Net Worth (000’s)

Creditsafe Rating

30/06/2012 914,821,413 84,192,684 272,902,273

10030/06/2013 1,058,398,000 110,856,000 348,928,000

30/06/2014 1,277,323,000 124,759,000 439,875,000



Net Worth (000’s)

Creditsafe Rating

02/03/2013 3,752,634,000 84,662,000 1,249,775,000

10001/03/2014 3,872,446,000 43,992,000 1,172,054,000

28/02/2015 3,919,176,000 97,146,000 1,202,554,000



Net Worth (000’s)

Creditsafe Rating

29/12/2012 213,518,000 16,193,000 156,136,000

9622/03/2014 269,227,000 13,351,000 166,106,000

21/03/2015 236,252,000 13,254,000 28,917,000



Net Worth (000’s)

Creditsafe Rating

28/04/2013 1,677,368,000 178,631,000 489,515,000

10027/04/2014 1,864,930,000 202,660,000 665,649,000

26/04/2015 2,074,126,000 262,929,000 872,400,000



Net Worth (000’s)

Creditsafe Rating

31/12/2012 56,856,000 -162,000 15,218,000

10031/12/2013 64,863,000 -984,000 14,234,000

31/12/2014 74,172,000 424,000 17,158,000



Net Worth (000’s)

Creditsafe Rating

29/03/2012 536,410,000 72,864,000 308,386,000

10028/03/2013 586,350,000 77,707,000 382,537,000

27/03/2014 633,429,000 83,858,000 462,445,000



Net Worth (000’s)

Creditsafe Rating

31/03/2012 6,354,000,000 240,000,000 234,000,000

10031/03/2013 6,204,000,000 452,000,000 430,000,000

31/03/2014 6,340,000,000 507,000,000 456,000,000



Net Worth (000’s)

Creditsafe Rating

31/03/2012 348,446,000 1,585,000 -1,023,000

6031/03/2013 367,984,000 -3,685,000 -4,708,000

31/03/2014 395,360,000 1,347,000 -3,361,000



Net Worth (000’s)

Creditsafe Rating

28/01/2012 166,368,000 12,372,000 297,655,000

10002/02/2013 157,558,000 15,947,000 306,899,000

01/02/2014 140,526,000 13,893,000 317,049,000

The table adjacent sets out recent account information together with Creditsafe ratings for the tenants. 89.8% of the income is secured against covenants ranked with a “Very Low Risk” Rating with only 10.2% of the income rated “Below Average”.

COVENANTS


REGENT RETAIL PARK IS MADE UP OF 10 UNITS ARRANGED IN A ‘L’ SHAPED CONFIGURATION TOTALLING 10,805 SQ M (116,314 SQ FT)

“”

We believe there are a number of requirements for the park including B&M, Pep&Co, Poundland and Poundworld. This demand may be difficult to accommodate alongside the following asset management initiatives:

2016• Regear leases with Sports Direct and Deichmann Shoes.

2017• Argos lease renewal.

2018• Renewals with Home Bargains and Maplin, with a potential

reposition of Unit C.

Other opportunities include purchasing the Dunnes long leasehold interest as well as adding an A3 pod or new unit adjacent to Dunnes.

ASSET MANAGEMENT INITIATIVES


The property is held long leasehold from Salford City Council for a term of 150 years from 10th December 1993 (approximately 128 years unexpired) at a peppercorn rent.

TENURE

A Phase 1 Environmental report has been prepared by Environ dated November 2015. A copy is available upon request.

ENVIRONMENTAL


EPC’s have been produced for all units, with values ranging between (B) and (D). Copies are available on request.

EPCS

The Property has been elected for VAT and it is anticipated that the transaction will be treated as a TOGC.

VAT

PROPOSALWe are instructed to seek offers of £31,000,000 (Thirty One Milllion Pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a Net Initial Yield of 5.74%, assuming purchaser’s costs of 5.8%.


Disclaimer

Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they, give notice that:

The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract.No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this property. This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. Nothing within this information should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. November 2015.

Designed and produced by THE GROUP www.completelygroup.com 13918.001 / November 2015

FURTHER INFORMATION

Cushman & Wakefield, 43-45 Portman Square, London, W1A 3BG

PATRICK KNAPMANT: 020 7152 5019 M: 07768 825 666 E: [email protected]

JENNY HEWITTT: 020 7152 5138 M: 07964 555 973 E: [email protected]

Documents

REGENT RETAIL PARK - Cushman & Wakefield · PROPOSAL We are instructed to seek offers of £31,000,000 (Thirty One Milllion Pounds) ... Salford Quays is a major waterside urban regeneration