torquay - Wilkinson Williams

Torquay has a large catchment population for a town of its geographical size of 220,000 people due to the lack of nearby
competing towns.
Torquay retains the majority of its catchment spend; total in store retail comparison expenditure was £540 million in Torquay in
2008, substantially higher than the UK average spend of £415 million for a town of its geographical size.
The property is situated in a prominent and accessible location, close to the A3022, which in turn leads to the A380 and the
A38.
Adjacent to Wren Retail Park is The Willows, which comprises a full offer Marks & Spencer, Sainsbury’s foodstore and Comet unit.
Together the two schemes create a modern, car borne retailing environment.
Retail warehousing with an open A1 non-food planning consent is limited in Torquay, and Wren Retail Park is the only scheme
in the town which benefits from this consent.
The property comprises 47,968 sq ft let to strong covenants including Boots, Carpetright, Mothercare and Next, at rents
between £26 per sq ft and £34.50 per sq ft.
We believe the property has a number of asset management initiatives which could be implemented to further improve the
tenant line up.
We are instructed to seek offers based on an initial yield of 6.5% being applied to the current income and rental uplifts on the
two outstanding rent reviews, giving an estimated purchase price of £22,650,000.

BARNSTAPLE
SOMERSET
DEVON
EXETER
LAUNCESTON
EXMOUTH
CORNWALL
PLYMOUTH
TORBAY
TOR BAY
PAIGNTON
BRIXHAM
TORQUAY
English Riviera
M5
EXETER
J31
A30
The picturesque town of Torquay is the major regional and commercial centre for
South East Devon. The town is located 22 miles south of Exeter and 32 miles north
DARTMOOR
NATIONAL
PARK
A30
A38
A380
A376
DAWLISH
EXMOUTH
DRIVE TIME
east of Plymouth.
Communication links to the town are good; the A380 connects the A38 to the town
and provides one of the main access routes through South East Devon, as well as
linking to Junction 31 of the M5 motorway, 16 miles north.
A38
NEWTON
ABBOT
20 MINUTES
10 MINUTES
Torquay benefits from having two railway stations (Torquay and Torre), linking the
town with a large number of destinations including Exeter (40 minutes), Plymouth (1
TORQUAY
hour 7 minutes) and London (2 hours 57 minutes).
A385
TOTNES
PAIGNTON
Exeter Airport is 25 miles north of the town and serves a number of UK and European
destinations.
BRIXHAM

Torquay serves a substantial catchment population of around 220,000 people,
far exceeding the average population for a town of its geographical size. The
estimated shopping population is also above the PROMIS average (80,000
people) at around 108,000 people. Experian estimate there are 86,000
people living within a 10 minute drive time of Wren Retail Park, increasing to
195,000 people within a 20 minute drive. The population of Torquay is forecast
to see growth of 0.9% per annum between 2008 and 2013, over double the
UK average of 0.4% per annum over the same period.
Employment in Torquay is centred around the service sector, which accounts
for 75% of total jobs. Of the service sector, tourism is a central part of Torquay’s
economy and accounts for 32% of total employment in what is known as the
English Riviera (which includes the towns of Torquay, Paington and Brixham),
and is worth £450 million to the region annually. The English Riviera generates
almost 25% of all tourism in Devon, which accounts for approximately 3.7 million
visitors annually. Due to the recent trend for holidays within the UK, this figure has
increased by an estimated 15% this summer alone.
Torquay has an affluent catchment population; car ownership is above the
UK average with 48% of the Torquay catchment population owning 1 car
compared to 44% of the UK population. Over 75% of houses in Torquay are
owner occupied, exceeding the UK average of 68%.
As a result of its large catchment population and distance from competing retail
centres (Exeter and Plymouth are 40 and 55 minute drive times respectively),
Torquay retains the majority of its catchment spend. In 2008, the total in-store
comparison retail expenditure in Torquay was £540 million; significantly higher
than the £415 million average spend for a town of its geographical size in
the UK. Retail expenditure in Torquay is forecast to grow by 1.6% per annum
between 2008 and 2013, far exceeding the UK average of 1.2% per annum,
and ranking the town 19 out of the top 200 PROMIS Retail Centres.

MARKS & SPENCER
AND SAINSBURY’S
RIVIERA WAY
WREN RETAIL PARK
BROWNS BRIDG E
RD
Wren Retail Park benefits from being situated in a strong retailing location,
2 miles north of the town centre. It is close to the A3022, the principal
arterial route from the town to the A380, whilst the M5 is only 16 miles to
the north.
HELLEV OETSLUIS WAY
HAMELIN WAY
TORBAY
DISTRICT
SHIPHAY AVENUE
BRIDGE RETAIL PARK
HALFORDS
RIVIERA WAY
HELE ROAD
RIVIERA WAY
RETAIL PARK
B&Q
FOCUS
TORRE RAIL STATION
The property is in an advantageous position in the primary retail warehouse
‘pitch’ for the town, immediately east of a large footfall driver, “The Willows”
whose occupiers include a full format Marks & Spencer (91,547 sq ft),
Sainsbury’s (93,480 sq ft) and Comet (11,985 sq ft). The Willows, combined
with Wren Retail Park, creates a modern, car borne shopping environment.
The retailers situated here trade very well and the destination is popular
with shoppers, particularly as this is the only Marks & Spencer in the town
with the next closest full format store being in Exeter, 22 miles to the north.

Retail warehouse supply in Torquay is limited, estimated at just 456,000 sq ft by PROMIS,
far below the average for a town of its geographical size and catchment. Provision per
household is notably under-represented for the majority of goods categories, including
children’s goods, fashion, furniture and furnishing goods. Just 18% of retail warehouse floor
space in Torquay is occupied by ‘high street’ retailers compared to 27%, the average for
a town of its size. 42,000 sq ft of retail warehouse floor space in Torquay is dedicated to
children’s and sports goods and the same amount of floor space is occupied by fashion and
other high street retailers in Torquay, significantly lower than the average floor space in towns
with comparable catchment populations, of 84,000 sq ft and 102,000 sq ft respectively. All
of these categories are provided for on Wren Retail Park which is the only scheme in Torquay
with an open A1 non food planning consent.
THE WILLOWS
Located adjacent to the subject property, this scheme of circa 197,012 sq ft is arranged
around a central car park. Marks & Spencer, Sainsbury’s and Comet are the occupiers. Comet
are paying a rent of £21.50 per sq ft for their 11,985 sq ft unit. The November 2008 rent
review is currently outstanding.
RIVIERA WAY RETAIL PARK
This 47,000 sq ft bulky goods scheme is located ½ mile south of Wren Retail Park. The
accommodation comprises two retail warehouse buildings at opposite ends of a central
car park. Unit 2 has been subdivided and is occupied in part by Currys. The remaining unit is
currently vacant, having previously been occupied by Allied Carpets. Unit 1 is let to Harveys.
Behind the scheme is a new standalone unit let to Sleepright and Carpetright. Rents on the
scheme are £20 and £23.58 per sq ft for the Harveys and Currys units respectively.
BRIDGE RETAIL PARK
This scheme is situated opposite Riveria Retail Park and also has a bulky goods planning
consent. The park totals 43,000 sq ft and is occupied by Staples, Pets at Home and
McDonald’s. There is also a vacant unit formerly occupied by MFI. Pets at Home are paying
a rent of £24 per sq ft and Staples £22.50 per sq ft.
SOLUS UNITS
South of Bridge Retail Park is a Focus unit extending to circa 32,500 sq ft and this is the only
other unit in the town which benefits from an open A1 non-food planning consent. The rent
is £22 per sq ft.
On Newton Road, there is a relatively new B&Q unit having been constructed in 2008. The
store extends to 45,000 sq ft including a garden centre and was pre-let in 2006 at a rent of
£22 per sq ft. The planning consent is for bulky goods.
There is a first generation Focus unit located in a secondary pitch on Babbacombe Road.
The unit has a bulky goods consent and the rent is £10 per sq ft, although there is currently
an outstanding rent review from March 2009.
Close to Torres Station is a standalone Halfords unit with bulky goods consent, totalling 9,058
sq ft. The rent is £12.75 per sq ft.

Wren Retail Park was constructed in 1994 and comprises
four well-configured modern retail warehouse units providing
accommodation totalling 47,968 sq ft of ground floor gross
internal area. The units are arranged in a single terrace with
Units 3 and 4 being set further back than Units 1 and 2.
The units present well and are of steel portal frame construction
with masonry clad elevations up to an eaves height, which
internally is 5.50 metres. Each unit benefits from an attractive
entrance feature of two stanchions enclosed in brickwork
supporting a pitched roof incorporating the tenant’s signage.
Unit 4 was extended by 5,005 sq ft in 2003.
The scheme benefits from flexible accommodation which has
the potential to be subdivided in the future. Internally, the units
are regular in shape and have been fitted out to the tenants’
specifications. The Next unit benefits from a full cover mezzanine.
There is a small mezzanine area in the Boots unit and the
Carpetright unit has a full cover protected mezzanine area of
10,200 sq ft.
The customer car park, located at the front of the units, provides
spaces for 203 cars, giving a car parking ratio of 1:236 sq ft.
The service yard is located to the rear of the units.
Access to the park is via Browns Bridge Road off Riviera
Way, which also provides access to ‘The Willows’. The shared
access helps to integrate the two schemes, providing a modern
shopping destination. The retail offer is typical of a shopping
park, albeit on a smaller scale; there are two dominant anchors
providing a combination of fashion and foodstore retail floor
space.
The total site area of Wren Retail Park is circa 5.4 acres,
providing a total site cover of 20%.

The site, delineated below, is held freehold. The property is let in accordance with the tenancy
schedule overleaf.
The scheme benefits from an open A1 non-food consent, which was granted in 1992.
2,053 sq ft of food consent was granted in November 1993 for the sale of baby food in
Unit 3 (Mothercare), ancillary to the main use of the unit. Permission was also granted in
December 1999 to extend Unit 4 (Next) by 5,005 sq ft. Copies of the relevant planning
permissions are available on request.

There are currently outstanding rent reviews on Units 2 and 3 from June of this year and we anticipate an uplift in rent to £32.50 per sq ft. The rent review on the Next unit, which was outstanding
from August 2008, has recently been settled at a rent of £30 per sq ft. This was an Arbitration Award and we anticipated a settlement at £32.50 per sq ft, reflecting our initial opinion of £33.75
per sq ft which was adjusted to reflect the current market conditions. Based on the above, our opinion of rental value is set out in the tenancy schedule below.
UNIT TENANT AREA LEASE TERM EXPIRY NEXT RENT RENT OSRR OSRR ERV ERV
(SQ FT) START DATE RENT (P.A.) (PER SQ FT) (P.A.) (PER SQ FT) (P.A.) (PER SQ FT)
REVIEW
Unit 1 Boots 12,260 09/01/06 10 08/01/16 09/01/11 £423,430 £34.54 £398,450 £32.50
Unit 2 Carpetright 10,020 24/06/94 25 23/06/19 24/06/09 £260,780 £26.03 £325,650 £32.50 £325,650 £32.50
Unit 3 Mothercare 14,641 24/06/94 25 23/06/19 24/06/09 £400,000 £27.32 £475,833 £32.50 £475,833 £32.50
Unit 4 Next 11,047 01/08/03 15 31/07/18 01/08/13 £331,410 £30.00 £359,028 £32.50
47,968 £1,415,620 £1,556,323 £1,558,960
The scheme benefits from being well let to secure covenants, three of which have a 5A1 D&B Rating. We set out below the most recent company accounts for each tenant.
UNIT TENANT YEAR SALES PRE-TAX NET D&B
ENDING TURNOVER PROFIT / LOSS WORTH RATING
(‘000S) (‘000S) (‘000S)
Unit 1 Boots The Chemists Limited 31/03/08 £5,005,100 £396,100 £382,300 5A1
31/03/07 £4,678,100 £271,900 £948,300
Unit 2 Carpetright Plc 02/05/09 £482,800 £16,700 (£4,000) N2
03/05/08 £521,500 £59,500 £12,100
Unit 3 Mothercare Plc 28/03/09 £723,600 £42,200 £94,100 5A1
29/03/08 £676,800 £4,500 £93,800
Unit 4 Next Group Plc 26/01/08 £158,600 £1,140,800 £227,400 5A1
27/01/07 £150,900 £595,700 £188,200

Wren Retail Park is the only non food open consented retail park in Torquay, and there is the opportunity to
further capitalise on this.
The scheme is currently well let to a strong tenant line up. However we feel it could benefit from the following:
Both fashion and open A1 non food retailers have expressed interest in locating to the park in the
past six months, in spite of the current weakened occupational market. Although at present no deals
are being pursued, in the medium to long term, a surrender could be agreed with Carpetright, who
currently occupy Unit 2, giving the opportunity to let the unit to prospective tenants in a stronger
occupational market. A letting to another fashion retailer would improve the tenant line up and
reinforce the scheme’s dominance as Torquay’s prime retail park.
Alternatively as Unit 2 is well configured, totalling 10,030 sq ft, it has the potential to be subdivided
into two units of circa 5,000 sq ft. This would present the opportunity to extend the tenant mix to
include, for example, a footwear retailer and another fashion retailer.
Unit 3, occupied by Mothercare could be split into two units of 10,000 sq ft and 5,000 sq ft.
Mothercare could downsize to the 10,000 sq ft unit and the remaining 5,000 sq ft unit could be let
to another fashion operator.
We are instructed to seek offers for the above property based
on an ATTRACTIVE NET INITIAL YIELD OF 6.5% (assuming
purchaser’s costs at 5.725%). This would equate to a base
price of £20,600,000, with a top up payment being due
upon settlement of the outstanding rent reviews. On the basis
these are settled at £32.50 per sq ft, this will equate to an
estimated total purchase price of £22,650,000 (TWENTY
TWO MILLION SIX HUNDRED AND FIFTY THOUSAND
POUNDS) subject to contract and exclusive of VAT.

DREW MOORE
t: 020 7317 3789 m: 07880 797488
d.moore@wilkinsonwilliams.co.uk
ELLIE KIRKBY
t: 020 7317 3790 m: 07764 241898
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 verifi ed 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. October 2009. Design: Barbican 020 7796 2123