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B&Q, Megaloughton Lane<br />

Spondon, Derby DE21 7BR<br />

Retail Warehouse Investment<br />

Freehold for sale


LOCATION<br />

Derby is one of the principal commercial and retailing<br />

centres in the East Midlands. Designated a city in 1977 it is<br />

located approximately 130 miles north of London, 36 miles<br />

north east of Birmingham and 16 miles west of Nottingham.<br />

A38<br />

A6<br />

Meteor<br />

Centre<br />

LITTLE<br />

CHESTER<br />

A61<br />

A608<br />

Hampshire Road<br />

The city is the administrative centre of Derbyshire benefiting<br />

from excellent communications being approximately 8 miles<br />

to the west of the M1 motorway, which can be accessed<br />

from Junctions 24 and 25. Junction 11 of the M42 is located<br />

30 miles to the south. The A38 provides direct links to junction<br />

28 of the M1 to the north west and to Burton upon Trent and<br />

Lichfield to the south west. The M6 and A45 are close to the<br />

city.<br />

By rail, Derby has a frequent service to London <strong>King</strong>’s Cross<br />

and St Pancras with a fastest journey time of approximately<br />

90 minutes. A good service is provided to Birmingham, Bristol,<br />

Sheffield and Leeds.<br />

M6<br />

A52<br />

<strong>King</strong>sway<br />

Retail Park<br />

M42<br />

A5111<br />

DERBY<br />

city<br />

centre<br />

A5250<br />

PEARTREE<br />

STATION<br />

Eastgate<br />

West Meadows<br />

Industrial Estate<br />

DERBY<br />

STATION<br />

London Road<br />

A514<br />

A6<br />

A52<br />

A5111<br />

Wyvern<br />

Retail Park<br />

A5111<br />

A5111<br />

SPONDON<br />

STATION<br />

A6<br />

A6096<br />

TO M1<br />

NOTTINGHAM<br />

Borrowash<br />

Bypass<br />

A52<br />

EAST MIDLANDS<br />

& M1<br />

Derby Road<br />

A5111<br />

DERBY ROAD<br />

A6005<br />

A52<br />

BORROWASH BYPASS<br />

MEGALOUGHTON LANE<br />

MERCHANT AVENUE<br />

A52<br />

BORROWASH BYPASS<br />

DERBY ROAD<br />

LODGE LANE<br />

LODGE LANE<br />

A6005<br />

A6096<br />

East Midlands Airport is 16 miles south east of Derby, with<br />

flights to approximately 90 destinations.<br />

CELANESE ROAD<br />

STATION ROAD<br />

SPONDON<br />

STATION<br />

SITUATION<br />

The property occupies a prominent site fronting the A52,<br />

the main Derby to Nottingham road, 1½ miles to the east<br />

of the city centre. On the other side of the A52 is a modern<br />

ASDA supermarket. ½ a mile to the north west is the Wyvern<br />

Retail park where a Sainsbury food store is situated and other<br />

tenants include Homebase, Currys, Boots and Toys R Us.<br />

DESCRIPTION<br />

A purpose built, standalone retail warehouse constructed<br />

in 1988 constructed of steel frame with a pitched roof<br />

and profiled metal cladding. To the front of the property is<br />

ample parking for 188 cars. To one side of the property is<br />

an enclosed garden centre and to the other side a goods<br />

delivery and unloading area.<br />

ACCOMMODATION<br />

The property provides an approximate gross internal area of<br />

32,199 sq.ft.<br />

PLANNING<br />

Permission was granted in 1987 for a non-food retail<br />

warehouse with garden centre, to be used for the sale of<br />

builders merchandise and DIY goods. In 1993 permission was<br />

granted to relax the user restriction by way of listing the uses<br />

which would not be allowed, these include food, clothing<br />

and footwear (except for industrial wear). Therefore a wide<br />

range of bulky goods uses are allowable. Copies of the<br />

permissions are available on request.<br />

SITE<br />

The site comprises an approximate area of 1.6 acres<br />

TENURE<br />

Freehold<br />

TENANCY<br />

The entire property is let to B & Q Plc, on a full repairing and<br />

insuring lease for a term of 25 years from 25 March 1989,<br />

expiring on 24 March 2014. The current rent is £281,479 per<br />

annum , which reflects £8.74 per sq.ft.


RETAIL WAREHOUSING IN DERBY<br />

<strong>King</strong>sway Retail Park (Henderson Global Investors)<br />

The park benefits from a combination of bulky goods and<br />

open A1 non food consent. Occupiers include Next, Boots, M<br />

& S Simply Food, SCS, Comet and Halfords. Next are paying<br />

a rent reflecting £25 psf. B & Q vacated its 47,000 sq.ft store<br />

and are seeking to sublet or assign. Opposite this scheme is<br />

a Sainsburys foodstore (68,645 sq.ft) and a Homebase unit<br />

(34,945 sq.ft). The rent on the Homebase is £16 psf.<br />

Meteor Centre (Land Securities)<br />

Located on the A61, 2 miles north of the City centre and<br />

totalling 186,500sq.ft. A bulky goods scheme with tenants<br />

including Focus, DFS, Pets at Home, Staples, Bensons Beds<br />

and Lidl. The highest rents are approximately £20 psf.<br />

Wyvern Retail Park (Blackrock)<br />

Developed by William Davis and funded by Land Securities<br />

the scheme is anchored by Sainsbury with other tenants<br />

including Boots, Halfords, PC World and Currys. The highest<br />

rent is £18.50 per sq.ft to Carpetright.<br />

DEMOGRAPHIC PROFILE<br />

Derby has a large catchment population; 80% of the<br />

country’s population live within a 2 hour drive of the city<br />

and over 6 million live within a 1 hour drive. PMA reports a<br />

population within the Derby primary catchment area of<br />

514,000 ranking the town 30 out of the PROMIS centres.<br />

The City has attracted a number of major international<br />

businesses to the area including Rolls-Royce, Bombardier,<br />

Citibank and Toyota.<br />

Over the period 1998-2008 Derby grew at a faster rate than<br />

any other city in England and was ranked in the top five UK<br />

cities for employment growth.<br />

In 2005 The Derby Cityscape Masterplan was launched<br />

and already in excess of £620m of investment has gone into<br />

the city centre. It envisages the delivery of over 5,000 new<br />

homes, 1.4m sq.ft of office space, substantial improvements<br />

to the provision of culture, leisure and tourism facilities and<br />

significant investment into the city’s transport infrastructure.


COVENANT INFORMATION<br />

B & Q plc report the following numbers:<br />

Year end 31.1.09 2.2.08 3.2.07<br />

Turnover £3,683,000,000 £3,854,900,000 £3,817,900,000<br />

Pretax profit £113,700,000 £170,700,000 £254,900,000<br />

The ultimate holding company is <strong>King</strong>fisher Plc a business on the London Stock Exchange<br />

with a market capitalisation in the order of £5.27bn (as at 22 January 2010)<br />

PROPOSAL<br />

We are seeking offers in the region of £3,300,000 (Three million, three hundred thousand<br />

pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net<br />

initial yield of 8.1% after allowing for purchasers costs of 5.75% and £102.50 per sq.ft.<br />

INVESTMENT RATIONALE<br />

• Passing rent reflects a modest £8.74 per sq.ft.<br />

• Prominent Site<br />

• Strong and growing demographic profile<br />

• Attractive net initial yield of 8.1% and £102.50 per sq.ft capital value.<br />

FURTHER INFORMATION<br />

George Brooksbank<br />

David Mayes<br />

0207 458 0645 0207 458 0624<br />

gb@fletcherking.co.uk<br />

dm@fletcherking.co.uk<br />

Misrepresentation Clause: <strong>Fletcher</strong> <strong>King</strong> themselves and for the vendors of the property whose agents they are give notice that: Particulars are set out as a general outline only for the guidance of intending purchasers and do not<br />

constitute nor constitute part of an offer or contract; All descriptions, dimensions, references to conditions and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct<br />

but any intending purchaser should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; No person in the employment of <strong>Fletcher</strong><br />

<strong>King</strong> has any authority to make or give any presentation or warranty whatever in relation to these properties or their particulars nor enter into any contract relating to the property on behalf of <strong>Fletcher</strong> <strong>King</strong> nor any contract on<br />

behalf of the vendor; No responsibility can be accepted to any expenses incurred by intending purchasers in inspecting property or undertaking due diligence; <strong>Fletcher</strong> <strong>King</strong> has not made any investigations into the existence or<br />

otherwise of any issues concerning pollution and potential land, air or water contamination. The purchaser is responsible for making his own enquiries in this regard. January 2010

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