12.11.2013 Views

Full particulars (.pdf) - GCW

Full particulars (.pdf) - GCW

Full particulars (.pdf) - GCW

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

chartered surveyors<br />

020 7408 0030<br />

www.gcw.co.uk<br />

Reversionary, Long Dated Income,<br />

Freehold Food Store Investment<br />

Co-operative Supermarket, 1 Walderslade Road,<br />

Chatham, Kent ME5 9LL


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

ONE OF THE LARGEST TOWNS IN THE MEDWAY CONURBATION<br />

Investment Summary<br />

y Over 67 years remaining to Co-operative Group Limited<br />

y Undoubted Covenant Strength<br />

y Freehold<br />

y 25,210 sq ft store and 110 space car park<br />

y Passing rental of £262,000 pax and subject to stepped increases<br />

with the rent rising to £263,000 pax in Sep 2012, £264,000 pax in<br />

Sep 2013 and £265,000 pax in Sep 2014. The vendor will top up<br />

the rent so the passing rent on completion is £265,000 pax<br />

(£10.51 psf)<br />

y Estimated rental value of £315,125 pax (£12.50 psf)<br />

y 5 yearly open market reviews. Next review Sep 2015<br />

y Offers sought in excess of £5,570,000, subject to contract,<br />

reflecting the following yield profile (based on acquisition costs<br />

of 5.80%):-<br />

– Net Initial Yield – 4.50%<br />

– Nominal Equivalent Yield – 5.21%<br />

– True Equivalent Yield – 5.38%<br />

– Reversionary Yield – 5.35%


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

45 miNUTES TO CENTRAL London<br />

Location<br />

Chatham is one of the largest towns in the Medway conurbation<br />

situated 32 miles south east of London, 9 miles north of Maidstone<br />

and 28 miles west of Canterbury.<br />

The property benefits from excellent road and rail links. The property is<br />

situated approximately 1 mile from Junction 3 of the M2. Furthermore<br />

the property is approximately 3.5 miles from a fast and frequent rail<br />

to central London, the service taking around 45 minutes to London<br />

Victoria and London St Pancras.<br />

A414<br />

A12 A130<br />

Billericay<br />

Brentwood<br />

Basildon<br />

A128<br />

A127<br />

A414<br />

Burnham-on-Crouch<br />

Rayleigh<br />

Southend-on-Sea<br />

London 45 Minutes<br />

Dartford<br />

M25<br />

A2<br />

A13<br />

Tilbury<br />

Gravesend<br />

Canvey<br />

Island<br />

Grain<br />

A228 Kingsnorth<br />

Sheerness<br />

M25 15 minutes<br />

CHATHAM<br />

Maidstone 15 minutes<br />

Gatwick 55 minutes<br />

Canterbury 35 Minutes<br />

A20<br />

Orpington<br />

M25<br />

M26<br />

M20<br />

A227<br />

.<br />

M2<br />

A228<br />

Rochester<br />

Maidstone<br />

Chatham<br />

A249<br />

Sittingbourne<br />

A2<br />

M2<br />

A20<br />

Whitstable<br />

A251<br />

A252<br />

A290<br />

A299<br />

Canterbury<br />

A291<br />

A28<br />

A2<br />

A21<br />

Sevenoaks<br />

A228<br />

A274<br />

M20<br />

A28<br />

A229<br />

Ashford<br />

A260


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

Catchment<br />

Walderslade is an affluent suburb of Chatham, a London commuter town. The resident population<br />

within a 10 minute drive time of the subject property is 144,700 people.<br />

Demographics<br />

The area is above the national average in term of affluence within a 10 minute drive<br />

time. The top 3 MOSAIC groups represented are as follows:<br />

t 22.16% Suburban Mindsets compared to a national average of 12.09% -<br />

‘Maturing families on mid-range incomes living a moderate lifestyle in suburban semis’<br />

t 15.12% Terraced Melting Pot compared to a national average of 7.36% -<br />

‘Lower income workers, mostly young, living in tightly packed inner urban terraces,<br />

including some areas of high diversity’<br />

t 11.46% Professional Rewards compared to a national average of 7.86% -<br />

Families and couples owning affordable older style housing in communities historically<br />

dependent on manufacturing.<br />

77.37% OF HOMES ARE OWNER OCCUPIED COMPARED<br />

TO A NATIONAL AVERAGE OF 69.82%<br />

Statistics from Experian<br />

21.81% of the population earn over £40,000 which is above the<br />

national average of 19.73%. 38.40% of the population are currently<br />

employed compared to a national average of 37.60%.


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

110 space car park<br />

CAFE<br />

AB FAB FLOWERS<br />

WALDERSLADE ROAD<br />

POST OFFICE<br />

PREMIER EXPRESS<br />

HSBC<br />

HAART<br />

REEDS RAINS<br />

MARTIN’S NEWS<br />

ROBINSON JACKSON<br />

Golden Dragon<br />

Your Move<br />

Description<br />

The subject premises comprises a standalone food store with adjoining car park surrounded by<br />

local amenities including the library, Post Office and over 25 local shops including a bank, estate<br />

agents, a hairdresser, a dentist and a chemist. There is currently a Peacocks concession within<br />

the store which attracts additional customers. The convenience led offer that Walderslade Village<br />

provides means there is a constant flow of cars and pedestrians in the vicinity.<br />

The store was refurbished and fascia updated in line with the Co-operative’s new branding in<br />

2010. The supermarket is serviced via the service yard to the rear of the property and through<br />

the two large roller shutter doors. The site area comprises 7,082 sq m (1.75 acres) with the site<br />

cover of the store only 30%. The surface car park is situated at the front of the store and provides<br />

110 spaces.<br />

CO-OP<br />

DENTIST<br />

LIBRARY<br />

CAR PARK<br />

WALDERSLADE<br />

CENTRE<br />

WARD & PARTNERS<br />

BETFRED<br />

FENNS CHEMIST<br />

ROMA INTERIORS<br />

BODY CARE<br />

TAJ RESTAURANT<br />

OK KEBABS<br />

HAIRDRESSERS<br />

DRY CLEANERS<br />

CHAVS<br />

MOBY DICKS<br />

NAIL SENSE<br />

Identification purposes only


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

OVER 67 years remaining to CO-OP<br />

<br />

<br />

<br />

<br />

<br />

Accommodation<br />

<br />

Gross Internal Area of the retail premises:-<br />

<br />

<br />

<br />

Floor Area Sq ft Area Sq m<br />

<br />

Ground Floor 22,184 2,060.94<br />

<br />

<br />

<br />

First Floor 3,026 281.12<br />

<br />

Total 25,210 2,342.06<br />

<br />

<br />

<br />

Floor areas were agreed at 2010 rent review.<br />

<br />

<br />

<br />

<br />

Tenure<br />

Freehold. The circa 110 space car park is within the ownership.<br />

<br />

<br />

Planning<br />

Open A1 planning consent.


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

OPEN MARKET REVIEW<br />

Rental<br />

Commentary<br />

We are of the opinion that the property is<br />

reversionary and we have adopted a conservative<br />

estimated rental value of £315,125 pax (£12.50<br />

psf). Food stores have provided investors with<br />

some of the strongest rental growth in recent<br />

years, particularly in the South East where<br />

there remains strong competition between the<br />

operators for opportunities and we would expect<br />

that trend to continue. Adjacent is a table of recent<br />

transactions that provides evidence supporting a<br />

significant uplift at the next review.<br />

Location Tenant Transaction Date Rent (£psf) Comments<br />

Littlehampton Waitrose RR Dec 11 £12.44 Similar size store (larger 1st floor) – 26,500 sq ft<br />

St Neots Co-op S&L Mar 11 £15.00 Similar size store<br />

Corringham Morrisons RR Apr 11 £15.73 Similar size store – 22,500 sq ft<br />

Canterbury Waitrose OML Feb 11 £16.27 Larger store but not dominant<br />

Bracknell Waitrose OML Dec 10 £18.00 Larger store - 35,000 sq ft<br />

Blandford Forum Somerfield RR Mar 10 £12.11 Smaller store – 14,300 sq ft<br />

Saxmundham Tesco OML Aug 09 £18.00 Similar size store – 25,643 sq ft<br />

East Grinstead Waitrose RR Jul 09 £18.94 Similar size store – 30,600 sq ft<br />

Shepton Mallet Aldi OML Jun 09 £12.50 Similar size store and not dominant – 28,000 sq ft<br />

Tenancy<br />

The property was originally let to Invicta Cooperative<br />

Society Limited and is now vested in<br />

Co-operative Group Limited on a full repairing<br />

and insuring lease for a term of 99 years from<br />

29th September 2080 expiring on the 28th<br />

September 2079.<br />

The current passing rent is £262,000 pax but it is<br />

subject to stepped increases with the rent rising<br />

to £263,000 pax in September 2012, £264,000<br />

pax in September 2013 and £265,000 pax in<br />

September 2014. The vendor will top up the rent<br />

so the passing rent on completion is £265,000<br />

pax reflecting £10.51 psf on the agreed floor<br />

areas. The lease provides for five yearly upward<br />

only rent reviews to open market rental value<br />

with the next due on 29th September 2015.


LONG DATED INCOME, FREEHOLD FOOD STORE INVESTMENT<br />

Co-Op | 1 Walderslade Road | Chatham | Kent | ME5 9LL<br />

5a 1 COVENANT<br />

EPC<br />

Covenant<br />

The property is now vested in Co-operative Group Limited. Cooperative<br />

Group Limited is the UK’s largest mutual business,<br />

owned by almost six million consumers. It is the UK’s fifth biggest<br />

food retailer, the leading convenience store operator and a major<br />

financial services provider, operating both The Co-operative Bank<br />

and The Co-operative Insurance. Among its other businesses are<br />

funeral services and Britain’s largest farming group. The Group<br />

operates over 5,000 retail trading outlets, employs more than<br />

110,000.<br />

Co-operative Group Limited has a Dun & Bradstreet credit rating<br />

of 5A 1.<br />

Their recent accounts are summarised as follows:<br />

VAT<br />

The property is elected for VAT and as such it will be payable on<br />

the purchase price.<br />

Year Ending – Currency £000’s<br />

Turnover Pre-tax Profit Tangible Net Worth<br />

01/01/11 12,886,100 310,400 2,950,700<br />

02/01/10 12,489,200 294,800 2,694,900<br />

10/01/09 9,361,400 115,900 3,071,100<br />

Proposal<br />

We are instructed to seek offer in excess of £5,570,000, subject<br />

to contract, and exclusive of VAT, for the freehold interest in the<br />

above property. A purchase at this level would reflect the following<br />

yield profile based on acquisition costs of 5.80%:-<br />

Net Initial Yield 4.50%<br />

Nominal Equivalent Yield 5.21%<br />

True Equivalent Yield 5.38%<br />

Reversionary Yield 5.35 %<br />

Further Information<br />

James Pearson<br />

Oli Horton<br />

020 7647 4817 020 7647 4806<br />

james.pearson@gcw.co.uk oliver.horton@gcw.co.uk<br />

Allan House<br />

10 John Princes Street<br />

London W1G 0JW<br />

chartered surveyors<br />

020 7408 0030<br />

T: 020 7408 0030<br />

F: 020 7495 4248<br />

W: www.gcw.co.uk<br />

www.gcw.co.uk<br />

Whilst every effort has been made to ensure accuracy, no responsibility<br />

is taken for any error, omission or mis-statement in these <strong>particulars</strong><br />

which do not constitute an offer or contract. No responsibility or warranty<br />

whatever is made or given either during negotiations or in <strong>particulars</strong> by<br />

vendor, lessor or the agent. Gooch Cunliffe Whale Limited Registered in<br />

England No 2446386 Registered office: 30 City Road, London EC1Y 2AB<br />

VAT No 524 1923 63. April 2012.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!