hitchcock & king, stanwell road, ashford, surrey tw15 3dx - Wilkinson ...

RETAIL WAREHOUSE INVESTMENT SALEHITCHCOCK & KING, STANWELL ROAD, ASHFORD, SURREY TW15 3DX

RETAIL WAREHOUSE INVESTMENT SALEINVESTMENT SUMMARY• Well situated, close to Heathrow Airport and the M3, M25and M4 motorways.• Prominent and accessible site, situated close to Ashford towncentre and railway station.• Only retail warehouse in the town, therefore limited retailwarehousing competition.• The property totals 32,178 sq ft on a large site area of over2.6 acres with car parking for 157 vehicles.• Let to 2A1 D&B rated covenant of Hitchcock & King with along unexpired lease term of over 24 years at a rent of£530,000 p.a (£16.47 per sq ft).• Long term potential redevelopment for foodstore use,subject to planning.• We are instructed to seek offers for the freehold interest inthe above property of £7,420,000 subject to contract andexclusive of VAT. This reflects an attractive net initialyield of 6.75%, based on purchaser’s costs of 5.80%.

RETAIL WAREHOUSE INVESTMENT SALELOCATIONAshford is located in Surrey, 2 miles east of Staines and 2miles west of Sunbury, and forms part of the well-establishedcommercial centre located in and around Heathrow Airport.The town directly benefits from its close proximity to CentralLondon, which lies 13 miles to the east, with HeathrowAirport situated 3 miles directly to the north. The town hasexcellent road communications, being strategically situated 3miles north of Junction 1 of the M3, 5 miles east of Junctions13 and 14 of the M25 and 5 miles south of Junction 3 ofthe M4.Ashford also has good rail links to London Waterloo witha fastest journey time of 38 minutes. Furthermore LondonHeathrow Airport provides flights to the majority ofglobal destinations.

RETAIL WAREHOUSE INVESTMENT SALECATCHMENT & DEMOGRAPHICSCACI predict there are 102,413 and 186,463 people livingwithin a 10 and 20 minute drive time of the subject propertyrespectively. We anticipate that, given the unit’s accessibilityand lack of DIY competition in the vicinity, the catchment alsodraws upon part of Staines to the west, Feltham to the east,Stanwell to the north, Bedfont to the north east and Sunburyto the south.Given Ashford’s proximity to Heathrow Airport, a largeproportion of the catchment population is employed by theairport and aviation related businesses. BP International isalso a major employer in the area. Many Ashford residentsalso commute into London and the Thames Valley.Ashford’s strong communication links and close proximityto the motorway network has attracted a large number ofaffluent commuters residing there. The relative affluence ofthe catchment population is demonstrated as follows:Social Structure35%30%25%20%15%10%5%0%ABAshford BaseC1 C2 D EAccommodation80%70%60%50%40%30%20%10%0%AshfordOwned (HH) Social Rented (HH) Private Rented (HH)BaseHigher than average proportion of the most affluent AB social groupOver 70% of homes are owner occupiedIncome23%20%18%15%13%10%8%5%3%0%£14k or Less£15k to £19kAshford£20k to £29k£30k to £39kBase£40k to £49k£50k to £59k£60k to £69k£70k to £99k£100k to £149kSignificantly more higher earning households in Ashford£150k or OverCACI Group35%30%25%20%15%10%5%0%Alpha TerritoryProfessional RewardsRural SolitudeSmall Town DiversityActive RetirementSuburban MindsetsCarers and KidsNew HomemakersEx-Council CommunityClaimant CulturesUpper Floor LivingElderly NeedsIndustrial HeritageTerraced Melting PotLiberal Opinions‘Suburban Mindsets’ make up the majority of the population20 Minutes: AshfordUK

RETAIL WAREHOUSE INVESTMENT SALESITUATIONThe subject property lies immediately north of Ashfordrailway station, and the town centre is situated a short walksouth of the station.The unit is accessed from Stanwell Road, which links withthe A30 London Road to the north. The Staines Bypass islocated a mile south, and provides direct access to Junction13 of the M25 and the wider motorway network.Immediately adjacent to the east of the property is a furtherunit occupied by the tenant, Hitchcock & King. They ownthe freehold of this unit.The remainder of the surrounding area is largely residential.M4M4A3044M4HammondsworthMoorHammondsworthA4Bath RoadM25WraysburyReservoirHeathrowAirportLondon RoadA30M25Stanwell RoadA30A315StainesReservoirsStaines RoadA314Stanwell RdB376A30London RoadA30Stanwell RdB3003FelthamA312A316Staines-upon-ThamesStaines ParkStaines Road WestB378B377AshfordA244A308M25

RETAIL WAREHOUSE INVESTMENT SALEThe subject property benefits from being the only retail warehouse unit in the town, with the closest DIY retailwarehousing being the Homebase at Staines, 2.3 miles west.Competition from DIY and Builders Merchants nearby is also limited with the closest stores located as follows:RETAIL WAREHOUSE COMPETITIONPoyle14A3113A3044HeathrowAirportA315A30A315A3063FelthamA312B37813A30B3003B376A308M25Staines-upon-ThamesB377AshfordB378B377A2441A316HanworthA308B376A3202M3A244B377SunburyA3050Molesey

RETAIL WAREHOUSE INVESTMENT SALEDESCRIPTIONThe subject property comprises a standalone purpose builtretail warehouse unit totalling 32,178 sq ft, which wasoriginally occupied by Focus and was one of their bestperforming stores. Following their demise, the property wastaken by the current tenant, Hitchcock & King by way ofan assignment, (albeit at a lower rent).The property was constructed in the late 1980s and is of astandard steel frame construction with the main elevationsclad in masonry and blockwork.Internally, the unit is fitted out to the tenant’s specification.The unit is well configured, and would permit subdivision.There is a tenant’s trading mezzanine and a furthermezzanine totalling 1,220 sq ft containing staff offices. Theunit also benefits from a garden centre of circa 5,850 sq ft.The property is served by a demised open tarmacadamsurfaced car park located at the front, providing 157spaces, equating to an ample car parking ratio of1:206 sq ft.The dedicated service yard is situated to the side of the unit.The scheme benefits from a site area of 2.6 acres (1.05hectares), giving a low site cover of approximately 30%.

791310 12RETAIL WAREHOUSE INVESTMENT SALETENUREThe property is held freehold and the site area is delineated below in red.carage15.8mPondTENURETENANCY18.3mFBED & Ward BdyCRRetail WarehouseFB1AshfordTRAIN STATIONTCBStationWhiteLodgeSPLB.5mWorksWorksEl Sub StaCar ParkWorksWorksPosts21315STATION APPROACH2TOWN CENTRE10Bank114 5The Arcade97Bank531to51a711STATION ROAD13TENANCYThe property is fully let on a full repairing and insuring lease to Hitchcock & King Limited. The lease runs from 16 March1 to 28ickEdisonHouse312923619815StationWOODTHORPE ROAD2012, expiring on 15 March 2037 at a rent of £530,000 per annum, equating to £16.47 per sq ft. The next rent review0m 25m 50m 75mis on 25 th December 2015, and reviews are 5 yearly from this date until 2035.Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449.Getmapping plc 2012. Plotted Scale - 1:1124WWParade524210aE64

RETAIL WAREHOUSE INVESTMENT SALEPLANNINGThe property was granted a retail planning consent in December 1986, which stipulated that:• ‘No additional floor space may be formed within the buildings by means of internal horizontal division;• The retail warehouse may only be used as a DIY retail warehouse, selling items required for the repair,maintenance, alteration and improvement of domestic properties (including cupboards, wardrobes andshelving and kitchen and bathroom fixtures and fitting whether in kit form or not but excluding all otherfurniture and soft furnishings), and for no other purpose within Class 1 of the 1972 Use Classes Orderwithout the prior consent of the Planning Authority; andPLANNING• The builders’ merchants and garden centre open display area may only be used as a builders’ merchantsselling building materials and equipment and a garden centre selling products for direct use in the gardenand for no other use within Class 1 of the 1972 Use Classes Order without the prior consent of thePlanning Authority.’Copies of the planning permission are available on request.ENVIRONMENTALMerebrook Consulting have undertaken a Phase 1 Environmental Review of the property, which is assignableto the purchaser. The report states there is a low risk for ground contamination on the site. A copy of the reportis available on request.

RETAIL WAREHOUSE INVESTMENT SALEASSET MANAGEMENT POTENTIALThere are potential asset management initiatives on thesubject property, in the longer term as follows.Ashford currently lacks a main foodstore with there onlybeing a small Sainsbury’s Local and Londis store in the town,located on the High Street. There has been foodstore interestin the subject property for both the whole site and for asubdivision of the unit, for a store of circa 13,000 sq ft.B&Q have also expressed interest in the past, having beenaware that this was one of Focus’ top performing stores, andwe believe they would also be a keen occupier for the unit.TENANT COVENANTHitchcock & King Limited are a London based builders merchants who have been in existence for almost 40 years andoperate out of 9 units most of which are owned freehold. The company remains privately owned and family run.The company has a 2A1 D&B rating with a minimum risk of business failure. We set out below a summary of their mostrecent company accounts:ASSET MANAGEMENT POTENTIALTENANT COVENANTYear to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010Turnover £12,760,403 £10,510,827 £8,070,782Pre Tax Profit / Loss £140,199 £576,807 – £33,504Tangible Net Worth £4,400,238 £4,425,840 £4,023,723The lease is guaranteed by both H&K Holdings Limited and Hitchcock & King Properties Limited which have a D&B rating of2A2 and 1A1 respectivley. H&K Holdings Limited are the parent company for both Hitchcock & King Properties Limited andHitchcock & King Limted. We set out below a summary of the respective company accounts.H&K Holdings LimitedYear to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010Turnover £12,760,403 £10,525,342 £8,199,525Pre Tax Profit / Loss -£275,027 -£1,538,999 -£16,819Tangible Net Worth £5,281,916 £3,594,211 £5,309,605Hitchcock & King Properties LtdYear to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010Turnover n/a £14,515 n/aPre Tax Profit / Loss n/a -£2,115,804 n/aTangible Net Worth £882,766 £1,297,804 £3,415,314

RETAIL WAREHOUSE INVESTMENT SALENEXTVATThe property has been elected for VAT purposes.PROPOSALWe are instructed to seek offers for the freehold interest in the above property at a price of £7,420,000 (Seven Million,Four Hundred & Twenty Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractivenet initial yield of 6.75%, based on purchaser’s costs of 5.80%.VATPROPOSALCONTACTSCONTACTSPaul WilkinsonTel: 020 7317 3799Ellie KirkbyTel: 020 7317 3790Heathcoat House20 Savile RowLondonW1S 3PRIt should be noted that some of the Partners of Wilkinson Williams LLP have a financial interest in the subject property.Wilkinson Williams LLP and their clients give notice that:1. They are not authorised to make or give any representations or warranties in relation to the property either hereor elsewhere,either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may bemade in these particulars.These particulars do not form part of any offer or contract and must not be relied upon as statementsor representations of fact.2. Any areas, measurements or distances areapproximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessaryplanning, building regulation or other consents and Wilkinson Williams LLP have not tested any services, equipment or facilities. Purchasers must satisfy themselves byinspection or otherwise. January 2013.