Full particulars (.pdf) - GCW
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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.