PATRIOT DRIVE, MILTON KEYNES, MK13 8PU Prime Retail ...

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PATRIOT DRIVE, MILTON KEYNES, MK13 8PU
Prime Retail Warehouse Investment Opportunity

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Investment Considerations
• Milton Keynes benefits from an extensive catchment
and shopping population, extending as far as Kettering,
Luton, Bedford and Daventry.
• Milton Keynes is designated as one of the largest
growth towns in the UK and is anticipated to become
the 16th largest city in the country by 2031.
• The subject property is situated in one of the prime
retail warehouse locations in Central Milton Keynes
with nearby retailers including Hobbycraft, Halfords,
Next Home and Pets at Home.
• The property is highly accessible, situated close to an
arterial route roundabout junction, connecting the A5
with the A509.
• The unit totals 119,067 sq ft together with an external
garden centre and builders yard and car parking for
577 vehicles.
• The property benefits from a long unexpired lease
term of over 18.5 years and is let to the secure 5A1
D&B rated covenant of B&Q plc at a rent equating to
£18.50 per sq ft.
• There is asset management potential, downsizing B&Q
and potentially letting to a foodstore operator, subject
to planning or subdividing the unit to create several
further units.
• We are instructed to seek offers for the freehold
interest in the property of £32,031,000 (Thirty Two
Million and Thirty One Thousand Pounds) subject to
contract and exclusive of VAT. This reflects an
attractive net initial yield of 6.50%, based on
purchaser’s costs of 5.80%.

Shrewsbury
Investment
Considerations
venny
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ARDIFF
Henleyon-Thames
eston-
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n-Sea
water
n
Location
Newport
PATRIOT DRIVE, MILTON KEYNES
Telford Location
Milton Lodlow Keynes is located in Buckinghamshire and has
developed into a successful commercial and retailing
centre. The town is strategically situated just 2 miles
west of Junction 14 of the M1, 54 miles north Droitwich west of
Leominster London and 72 miles south east of Birmingham.
Milton Keynes enjoys excellent road communications;
the M1 links to both the M6 Great and M40 motorways and
the A5 also provides access Malvern
Evesham
to London and to the
Hereford
outskirts of Birmingham. 30% of the country’s
population are within a 90 minute drive of Milton
Keynes.
Tewkesbury
Lichfield
Catchment
& DemographicsTamworth
Milton Keynes also benefits from good rail links Cheltenham with the
main railway station providing regular services to
Gloucester
a large number of destinations including London
(36 minutes), Birmingham (55 minutes), Manchester
(1 hour 38 minutes) and Edinburgh (4
Stroud
hours 40 minutes).
Cirencester
Chepstow
Newport
BRISTOL
Yeovil
Kidderminster
Bath
Frome
Stafford
WOLVERHAMPTON
BRISTOL
Cannock
West Bromwich
Dudley
LYNEHAM
Chippenham
Trowbridge
Warminster
Walsall
Solihull
Salisbury
Burton upon
Trent
BIRMINGHAM
A45
A452
15
14
A40
13
Swindon
Nuneaton
A46
3
A420
A44
Andover
EAST
MIDLANDS
COVENTRY
12
2
Situation
Retail Warehousing LEICESTER
in Milton Keynes
M6
Banbury
Newbury
Winchester
Romsey
Coalville
11
Loughborough
1
A34
A45
A422
10
20
9
19
A43
M40
18
17
A40
A14
Leamington
Spa
Daventry
A5
Oxford
8
A43
Abingdon
Basingstoke
Eastleigh
7
A4304
(A427)
16
A43
A41
15a
A5
6
A508
15
A508
5
Melton
Mowbray
Stamford
Description
A43
Wellingborough
Northampton
Bicester
Alton
A428
M1
MILTON
KEYNES
Aylesbury
Reading
Thame
Petersfield
A4010
Farnham
A45
4
A413
14
Leighton
Buzzard
Camberley
Corby
3
A6116
Kettering
A5
A41
High
Wycombe
2
Windsor
13
Slough
Bracknell
A45
12
18
17
1
A6
11
Haslemere
20
19
Tenure
Tenancies
Peterborough
10
LUTON
9
6
5
St
4
8
Albans
3
7 1 2
A40
Spalding
A14
St Neots
Bedford
Newport
Pagnell
A428
5
HEATHROW
A1
4
06
22
8
A1
2
1
10
Letchworth
9
Hitchin
Luton
7
GATWICK
Prime Retail Warehouse Investment Opportunity
St Ives
Royston
Hoddesdon
CITY
March
Bishop's
Stortford
Richmond
Kingston
upon Thames
Sutton Croydon
Epsom
Crawley
Harlow
LONDON
GREAT MONKS ST
Redhill Oxted
East
Grinstead
Horsham
Haywards
Heath
A5
B&Q
Woolwich
Planning
Asset Management
Potential
MONKS WAY A422
PORTWAY
PORTWAY
FULMER ST
WATLING ST
GRAFTON STREET
A5
SAXON STRRET
DANSTEED WAY
PATRIOT
DRIVE
CHILDS WAY
Tenants’ Covenants,
VAT, Proposal,
Further Information
LINFORD
WOOD
PORTWAY A509
GRAFTON GATE
SAXON GATE
CENTRAL
MILTON
KEYNES
CHILDS WAY
CHAFFRON WAY
GRAFTON ST
MARLBOROUGH
S

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Catchment & Demographics
Milton Keynes was designated a New Town in 1967 and is one of the fastest growing towns in the UK.
The town has a primary catchment population of 709,000 people (PMA). CACI predict there are 201,000 and 310,663
people living within a 10 and 20 minute drive time of the subject property respectively.
Milton Keynes has been identified by the Government as one of the 3 potential growth centres in the south east (the
others being Ashford and the Thames Gateway). The population is anticipated to double in size by 2026 and by 2031
Milton Keynes is estimated to be the 16th largest city in the country.
PMA estimate that the shopping population totals 465,000 people, ranking the town 11 out of the top 200 PMA centres.
Due to its location and lack of proximity to towns with a comparable and competitive retail offer, it is considered Milton
Keynes benefits from a captive catchment which extends far beyond the defined primary catchment area, extending as far
as Kettering to the north, Luton and Aylesbury to the south, Bedford and Sandy to the east and Daventry to the west.
Milton Keynes also benefits from an affluent catchment population as demonstrated below:
Affluence Indicators Milton PMA Regional PMA Retail Top 200
Keynes Centre Average Centre Average
AB (most affluent) Social Structure 2001 % adult population 31 28 25
Car ownership of 2+ cars % of households 41 33 30
Owner occupiers % of households 75 72 70
Total in-store comparison retail expenditure 2011 (£m) £1,807 £1,632 £821
Per capita in-store comparison expenditure £2011 £2,548 £2,472 £2,392
Per capita retail warehouse expenditure £2011 £523 £494 £476
Milton Keynes has attracted a significant amount of investment and employment to the area. Several national and
global firms are located in the city; both Volkswagen and Mercedes-Benz have their UK HQs here, Santander is one of the
largest employers in Milton Keynes and Network Rail is relocating its work force here in July, to establish a “national hub”
accommodating over 3,000 staff in new offices close to Milton Keynes station. Other employers in the area of note include
The Open University, The Foreign & Commonwealth Office and Unisys.
Amazon.co.uk, Coca Cola Enterprises, NYK Logistics and DHL Exel also all have large distribution centres on the outskirts of
Milton Keynes, close to both Junctions 13 and 14 of the M1.
Growth in employment from 2010 – 2016 is estimated to be 0.3% per annum in Milton Keynes, above the PMA average
of 0.1% per annum. The quality of employers and large number of managerial and routine based office jobs resulted in
total average earnings in Milton Keynes being £437 per week, above the GB average of £400 per week.
A43
TOWCESTER
A413
A5
M1
A508
BUCKINGHAM
B&Q
10 minute drive time
A413
20 minute drive time
OLNEY
A509
NEWPORT
PAGNELL
A422 A500 M1
MILTON
KEYNES
A421
A4146 A5
A428
LEIGHTON
BUZZARD
A4146
A6
A507
M1

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
B526
A509
Situation
A422
A509
The subject property is situated in a highly accessible location in one of the main retail
warehousing pitches within Central Milton Keynes. Access to the property is via Patriot Drive
which leads to Grafton Street, a dual carriageway linking to the A5, close to the roundabout
junction connecting to the A509. The A509, which bounds the property to the south, runs
east/west across the town and joins the A5 and the M1.
A422
A422
B4034
Central Retail Park &
Rooksley Retail Park
A509
14
M1
Patriot Drive also provides access to Central Retail Park which has recently been refurbished.
Occupiers here include Next Home, Halfords, Dwell, Comet, Hobbycraft and Pets at Home.
Opposite this is Rooksley Retail Park.
On the opposite side of the A509 to the south, is The Place Retail Park occupied by retailers
including Currys, Brantano, Carphone Warehouse, American Golf and McDonald’s.
The Place
Retail Park
Homebase
A5(T)
Winterhill Retail Park &
Cairngorm Retail Park
A509
Routeco Retail Park
A421
A5(T)
A421
B4034
Milton Keynes
Shopping Centre
CENTRAL
MILTON
KEYNES
B&Q
A421
A421
B4034
B4034
B4034
B4034
A5(T)
A421
BLETCHLEY
A4146
A4146
A4146
A4146
A5130
A421
Stadium Retail Park
IKEA, Asda & DW Sports
Beacon Retail Park
Rushmere Retail Park
Kingston Centre
A5130
WOBURN
SANDS
Milton Keynes Station and Milton Keynes Shopping Centre are also in close proximity, being
0.8 miles south and 1.2 miles east respectively. There is also a substantial amount of housing
nearby.
Retail Warehousing in Milton Keynes
The majority of retail warehouse supply in Milton Keynes is located outside the main town
centre itself in suburbs including Bletchley and Kingston.
Within the town centre there are 2 main retail warehouse locations, of which the subject
property is situated in one, which also contains Central Retail Park, Rooksley Retail Park and
The Place Retail Park. The other principal pitch is within the Winterhill District, 1.4 miles south
east of the subject property, where Winterhill Retail Park, Cairngorm Retail Park and Routeco
Retail Park are located.
Bletchley lies 4.5 miles south east of the subject property. Here there is Beacon Retail Park,
Rushmere Retail Park, an IKEA store, a DW Sports unit, an Asda foodstore and Stadium Retail
Park, which is currently under construction.
In terms of DIY competition in Milton Keynes, there is a 36,500 sq ft Wickes unit on Routeco
Retail Park and a standalone Homebase unit of 81,675 sq ft located nearby. In Bletchley,
opposite Beacon Retail Park there is a standalone 39,400 sq ft unit let to B&Q. The subject
property is considered the dominant DIY unit in the town, by nature of it’s size, location and
the operator.

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Description
The property was developed in 2005 and provides a
modern purpose built retail warehouse unit, totalling
119,067 sq ft gross internal area. There is also an
external garden centre area of circa 30,000 sq ft and a
builders’ yard of approximately 20,000 sq ft.
The building is of steel frame construction with the
main elevations being clad with attractive masonry
below ‘microrib’ cladding panels.
Internally the building is fitted to the tenant’s
specification with the unit benefiting from both an
external garden centre area and a builders yard. The
main floor is dedicated to retail sales and provides
access to both external compounds. The ground floor
totals 117,000 sq ft and there is also a first floor
amenity area totalling 2,067 sq ft, providing offices
and ancillary accommodation.
The unit is well configured, virtually exactly to B&Q’s
ideal warehouse format. Furthermore the frontage to
depth ratio allows the unit to be easily subdivided.
The scheme is serviced by a demised open
tarmacadam surfaced car park, which provides 577
spaces, giving an ample car parking ratio of 1:206 sq ft.
The dedicated service yard is situated to the rear of
the unit and is accessed separately and segregated
from the customer car park.
We calculate the site area extends to approximately
10.99 acres (4.45 hectares), giving a low site cover of
24.86%.

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Tenure
The property is held freehold and the site area
is delineated right in red.
Tenancies
The property is let to B&Q plc on a full
repairing and insuring 25 year lease from
21 October 2005. The unexpired term is just
over 18.5 years, as at March 2012.
The lease states that at review the property is
assumed to have a ground floor gross internal
area of 117,000 sq ft and a first floor gross
internal area of 2,067 sq ft, providing a total
area of 119,067 sq ft.
The passing rent totals £2,202,739.50 per
annum, reflecting £18.50 per sq ft, with the
next rent review being due on 21 October
2015, with 5 yearly upward only rent reviews
thereafter.

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Planning
The property was originally granted planning permission
in 2004 for ‘the erection of a non-food retail unit
(Class A1) including garden centre, bulk store, car
parking, landscaping and associated works and
construction of a new vehicular and pedestrian
access to highway’.
There is a Section 106 Agreement, which restricts the
sale of retail goods to certain goods including (but not
limited to) the following, unless prior consent of the
Council is obtained:
• DIY
• Electrical and gas appliances
• Furniture
• Floor coverings
• Soft furnishings
• Car parts / bicycles
• Hobby / craft goods
• Pets and pet products
• Office equipment
• Camping / boating equipment
Therefore, we consider the property to benefit from a
wide bulky goods consent.
The unit can be subdivided into a maximum of 6 units
with a minimum gross internal area of 10,000 sq ft.
Asset Management Potential
We believe B&Q are happy with their store and have no plans to downsize. However, it is considered in the medium term there may be the
opportunity to agree a downsize with B&Q to provide a smaller unit of circa 60,000 sq ft. With the planned expansion and growth of Milton
Keynes, we anticipate there being further demand from retailers wanting to gain representation here. We are also aware of demand in Central
Milton Keynes from several of the major foodstore operators who could potentially take part of this store, subject to planning.
The unit benefits from being well configured and easily subdivisible and the Section 106 Agreement also enables it to be split into 6 units of
10,000 sq ft and over. The garden centre and builders yard present the opportunity to be developed on. There is also ample car parking to
cater for increased footfall here.

PATRIOT DRIVE, MILTON KEYNES
Prime Retail Warehouse Investment Opportunity
Investment
Considerations
Location
Catchment
& Demographics
Situation
Retail Warehousing
in Milton Keynes
Description
Tenure
Tenancies
Planning
Asset Management
Potential
Tenants’ Covenants,
VAT, Proposal,
Further Information
Tenants’ Covenants
B&Q is the largest operator in the UK DIY and gardening market, trading from over 320 stores across
the UK. B&Q are part of the Kingfisher Group, the third largest DIY chain in the world, who have
extensive operations in Europe and the Far East.
B&Q plc, the main trading company for the fascia, has a current Dun & Bradstreet rating of 5A1.
We summarise below B&Q’s most recent accounts:
YEAR ENDING SALES TURNOVER PRE TAX PROFIT NET WORTH D&B RATING
(000s) (000s) (000s)
29/01/2011 £3,711,700 £144,700 £3,656,700
30/01/2010 £3,792,400 £400,400 £3,476,400 5A1
31/01/2009 £3,683,300 £113,700 £3,240,400
VAT
The property has been elected for VAT purposes.
Proposal
We are instructed to seek offers for the freehold interest in the above property of £32,031,000
(Thirty Two Million and Thirty One Thousand Pounds) subject to contract and exclusive of VAT.
This reflects an attractive net initial yield of 6.50%, based on purchaser’s costs of 5.80%.
Further Information
Paul Wilkinson
Tel: 020 7317 3799
Mob: 07770 585 313
Email: p.wilkinson@wilkinsonwilliams.co.uk
Ellie Kirkby
Tel: 020 7317 3790
Mob: 07764 241 898
Email: e.kirkby@wilkinsonwilliams.co.uk
Wilkinson Williams,
Heathcoat House, 20 Savile Row, London, W1S 3PR
www.wilkinsonwilliams.co.uk
MISREPRESENTATION NOTICE
Wilkinson Williams LLP 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.
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.
Designed and Produced by Creativeworld. Tel 01282 858200. February 2012.