currys pc world starbeck, harrogate hg2 7ld

CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
Virtual Freehold Prime Retail Warehouse Investment
ENTER
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
INVESTMENT SUMMARY
Harrogate is one of the most attractive retail warehouse catchments in the UK for property investors, both in terms of a relatively high Personal Disposable
Income and a most limited supply, with a significant number of unsatisfied retail warehouse occupier requirements
Bucking the national trend, retail warehouse rents have continued to rise in the town over the last 5 years with uplifts on reviews
INVESTMENT
SUMMARY
The property lies in the prime retail warehouse pitch in Harrogate, opposite the dominant Morrisons foodstore, sharing the same car park, and close to
Homebase and Carpetright units
The property is held virtual freehold on a 997 year unexpired leasehold interest at a rent of £10 per annum
LOCATION
The unit is a modern purpose built retail warehouse of 25,250 sq ft GIA, which is divisible and capable of extension
Let to the excellent covenant of DSG Retail Ltd trading as Currys PC World with a relatively recent new style fit out. The rent is £465,000 per annum
equating to £18.38 per sq ft with lease expiry in July 2025
SITUATION &
DEMOGRAPHICS
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
Whilst we understand Currys PC World trade successfully from this unit, there has been interest from other retailers in a potential downsize at higher rents, and
this is considered a medium term angle
Offers are sought in the order of £7,325,000 (seven million, three hundred and twenty-five thousand pounds) subject to contract and exclusive of VAT
for the benefit of this long leasehold interest. This reflects an attractive net initial yield of 6%, assuming purchaser’s costs at 5.8%
DESCRIPTION
TENURE
PLANNING &
ENVIRONMENTAL
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
Adjoining Carpetright and Homebase Units
Adjoining Morrisons Superstore
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
LOCATION
Subject Property
Harrogate is an affluent spa town located in North Yorkshire, 25 km (15.5 miles) north of
Leeds and 31 km (21 miles) west of York.
The A1(M) lies 13 km (8 miles) to the east of the town, connecting to the M1 to the south and
Darlington, Durham and Newcastle upon Tyne to the north, and the A61 linking the town
directly with Leeds to the south. Furthermore the A59 runs through Harrogate, connecting to
Skipton in the west and York to the east.
The distances to surrounding villages are highlighted below:
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
VILLAGE/TOWN
DISTANCE
DRIVETIME
Knaresborough
3.2 km (2.0 miles)
6 minutes
Killinghall
6.9 km (4.3 miles)
12 minutes
Wetherby
12.6 km (7.8 miles)
15 minutes
Harewood
15.6 km (9.7 miles)
15 minutes
Boroughbridge
14.8 km (9.2 miles)
20 minutes
HARROGATE
LEEDS
LEED
LE
EDS
ED
DS
LIVERPOOL
MANCHESTER
MA
M
ANCH
HEST
HE
STE
ST
TER
Subject Property
NEWBY HALL
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
NEWCASTLE UPON
TYNE
10 MINUTE DRIVE TIME CONTOUR
BIRMINGHAM
20 MINUTE DRIVE TIME CONTOUR
A61
NIDD
A1M
B8165
KILLINGHALL
MENWITH HILL
DESCRIPTION
HARROGATE
HA
ARROGATE
OGA
GATE
A34
BOROUGHBRIDGE
B1363
FLAXBY
Y
KNARESBOROUGH
UG
U
GH
G
H
A19
A59
A64
TENURE
YORK
B6161
LONDON
BRISTOL
A1237
WETHERBY
PLANNING &
ENVIRONMENTAL
B658
OTLEY
HAREWOOD
CLIFFORD
Satellite Navigation
Latitude – 53.993702
Longitude – 1.4963281
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
SITUATION
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
The subject property is located at
Plumpton Park in the wider Starbeck
area on the northern side of Hookstone
Chase, to the east of Harrogate town
centre.
This is an established retailing location,
with Morrisons, Homebase and
Carpetright also sharing the site with the
subject property.
DEMOGRAPHICS
According to CACI, approximately 75,998 people live within a 10 minute drive-time of the property and this figure increases to
124,530 in the 20 minute profile.
Key indicators from the 10 minute profile show an exceptionally affluent catchment, with the representation of the top Acorn
Group (Wealthy Achievers) almost double the UK average, and with 81% of the population classed within the top three Acorn
Groups (Wealthy Achievers, Urban Prosperity and Comfortably Off) compared to a UK average of 58%.
Furthermore, car and home ownership statistics are both significantly above the national average.
The Harrogate catchment population is one of the most affluent of the PROMIS catchments, ranking 22 of the PROMIS Centres on
the PMA Affluence Indicator. PROMIS further comment, ‘Overall, provision per household of retail warehousing floorspace is below
the PROMIS average’. Reflecting the spending habits of the catchment population, per capita retail spending levels are significantly
above the PROMIS average (Source: CACI). This is perhaps not that surprising when one considers there is a strong local economy,
but without the relatively high housing costs which one would find in similarly affluent catchments in the south-east of England.
KEY INDICATORS
AREAS %
UK AVERAGE
INDEX
Car Ownership
77.0%
72.6%
106
Home Ownership
75.9%
68.3%
111
ACORN GROUP
AREA %
UK AVERAGE
INDEX
1.
Wealthy Achievers
41.7%
21.3%
196
2.
Urban Prosperity
10.4%
15.9%
65
3.
Comfortably Off
29.2%
20.5%
142
4.
Moderate Means
8.3%
18.0%
46
5+6.
Hard Pressed
10.1%
24.2%
42
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
TENURE
PLANNING &
ENVIRONMENTAL
Source: CACI
Index calculated as: (Area%/UK Average) x 100
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
RETAIL WAREHOUSE PROVISION IN HARROGATE
ET
RE
ST
GH
E
EST
FOR
PA
IO
I N
STAT
TH
E
RB
RADE
E
AC
PL
E
AS
NE
STO
CH
OK
HO
K
AN
TL
OA
PAR
ST
RK
YO
YR
OA
D
O
MO
FOREST LANE
WE
D
DS
E
RIV
RIV
ED
E
N
STO
HO
WE
TH
E
RB
YR
OA
D
LEED
AD
S RO
VAT, EPC &
PROPOSAL
AD
H RO
ROUG
ESBO
KNAR
RO
AD
OK
TENANCY, TENANT
COVENANT &
RENTAL VALUE
LAN
IPT
ON
TENURE
PLANNING &
ENVIRONMENTAL
EST
SK
WE
DESCRIPTION
AD
N RO
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
RIPO
SITUATION &
DEMOGRAPHICS
FOR
LOCATION
SKIPT
ON R
OAD
HI
INVESTMENT
SUMMARY
As a result of planning restrictions, there
has been a tight limit on retail
warehousing in Harrogate and the
subject property, together with the
Homebase and Carpetright adjoining,
forms the dominant out of town retail
offer.
Within Harrogate there is a B&Q, Aldi
and Pets at Home on Harrogate Retail
Park which is the only other significant
retail warehousing in the town. There is
also a proposed store adjoining this site,
where Wickes have agreed a pre-let over
21,500 sq ft at £17.50 per sq ft. This is
however subject to planning which is not
straightforward, indicating the difficulties
in gaining out of town retail consent
here.
Some 4 miles east at Knaresborough is
St James Retail Park, with occupiers
including Next, Argos, Matalan, M&S
Foodhall and Boots.
Subject Property
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
DESCRIPTION
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
The subject property comprises a
purpose built retail warehouse originally
comprising two separate units, but
subsequently internally refurbished and
combined to comprise a single unit with
a GIA of 25,250 sq ft. The unit is of
standard steel frame construction with
brick elevations and a glazed entrance
frontage. There is segregated rear
servicing facilities with access via the car
park spine road from Plumpton Park
Road.
In the entire retail development there is
parking for 876 vehicles. Within the ‘no
build zone’ over the car park to the
front of the subject property are 212
spaces giving a ratio of 1 space per 110
sq ft.
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
TENURE
PLANNING &
ENVIRONMENTAL
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
TENURE
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
The property is held by way of a 997
year unexpired leasehold interest at a
rent of £10 per annum, as outlined in red
on the attached plan. The head lessee
also has the right to use that part of the
car park within the hatched green
outline on the attached plan, which is
shared with the Morrison’s food store,
for the entire term. This area is a no
build zone to protect the parking
provision for the subject property. The
property has a right of access over the
yellow shaded area to the public
highway.
Furthermore, as long as Morrisons or
one of their group companies remain
tenant of the foodstore, the head lessee
has the right to use that part of the car
park edged in green.
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
TENURE
PLANNING &
ENVIRONMENTAL
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
PLANNING
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
TENURE
In February 2000, planning permission
was granted for the erection of 2 nonfood retail units with associated service
yard and parking. The consent stated a
minimum size of 929 sq metres (10,000
sq ft) and a restriction on user against
sales on the property of food for
consumption off the premises (other
than confectionery), DIY goods, clothing,
sportswear, shoes, toys, fashion
accessories, handbags and luggage,
watches, jewellery, perfume and
toiletries, records, books, cds, dvds, audio
and video tapes, except those which are
wholly ancillary to the main goods sold;
pet food and hobby and crafts
accessories. We would therefore
summarise the consent as permitting the
sale of ‘bulky goods’.
ENVIRONMENTAL
The vendors hold the benefit of an
Environmental Report and the site is
considered to present a low to medium
risk based on a continuation of the site
in its current usage.
PLANNING &
ENVIRONMENTAL
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
TENANCY
The property is let to DSG Retail Limited on 2 separate FRI leases with a 25 year term from 10th July 2000, therefore expiring in July 2025. The current rent passing is £465,000 pa
(£18.38 per sq ft). There are 5 yearly upwards only rent reviews and the review with effect from 10th July 2015 remains outstanding.
TENANT COVENANT
INVESTMENT
SUMMARY
LOCATION
SITUATION &
DEMOGRAPHICS
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
TENURE
PLANNING &
ENVIRONMENTAL
DSG Retail Limited, following the merger between Dixons and Carphone Warehouse in August 2014, is one of the main operating companies of Dixons Carphone plc. Dixons Carphone
plc is Europe's leading specialist electrical and telecommunications retailer and services company, employing over 40,000 people in 9 countries.
The most recent accounts are set out below :-
TENANT
YEAR ENDING
DSG Retail Ltd
2nd May 2015
SALES TURNOVER PROFIT/PRE TAXES NET WORTH
(000S)
(000S)
(000s)
£4,314,000
£116,800
£395,900
30th April 2014
£4,078,300
£94,100
D&B RATING
5A1
£377,500
RENTAL VALUE
The Homebase and Carpetright units adjoining, owned by a fund client of Colliers Capital UK, are let at rents reflecting £17.10 per sq ft for the 36,140 sq ft Homebase and £24.50 per sq
ft for the 12,520 sq ft Carpetright. We understand discussions are on-going between the landlord and Homebase in respect of a lease regear and Homebase are keen to stay. Further
details can be provided on request.
Harrogate Retail Park lies on the western side of the town in what we consider an inferior position, without the benefit of a large foodstore anchor. Here B&Q are paying a rent equating
to £14.74 per sq ft for 31,235 sq ft. having taken an assignment from Focus in 2011 with a premium payment of £741,935. Devaluing this premium and adding it to the rent would give a
rental level of £17.02 per sq ft. The 2 adjoining smaller units are let respectively to Aldi over 14,725 sq ft paying £18.50 per sq ft with effect from March 2015 and Pets at Home of 10,080
sq ft at £17.61 per sq ft having been subject to a small uplift at the January 2014 review. A pre-let, subject to planning, on an adjoining site has been signed with Wickes at £17.50 per sq ft
for 21,500 sq ft subject only to a 6 months’ rent free period.
For a town the size of Harrogate there is an extremely limited supply of retail warehouse space. We believe if either one or both of the 2 original units became available here, there would
be strong interest from various discounters (eg Home Bargains, B&M and Wilko), subject to planning, or retailers including Dunelm (who have expressed strong interest in the past),
Homesense, Steinhoff, ScS, SofaWorks and Wren Furniture. If planning can be further widened to permit fashion and footwear, TK Maxx also would be a possible occupier.
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
HOME
CURRYS PC WORLD
STARBECK, HARROGATE HG2 7LD
EPC
The property has an EPC rating of D (93). A copy of the EPC can be provided on
request.
VAT
INVESTMENT
SUMMARY
The property has been elected for VAT, however, it is anticipated that the transaction
will be treated as a Transfer of Going Concern (TOGC).
PROPOSAL
LOCATION
SITUATION &
DEMOGRAPHICS
We are seeking offers in the order of £7,325,000 (seven million, three hundred
and twenty-five thousand pounds), subject to contract and exclusive of VAT for
the benefit of this long leasehold interest. This reflects an attractive net initial yield
of 6%, assuming purchaser’s costs at 5.8%.
FURTHER INFORMATION
RETAIL WAREHOUSE
PROVISION IN
HARROGATE
DESCRIPTION
Wilkinson Williams
Heathcoat House
20 Savile Row
London W1S 3PR
Paul Wilkinson
Telephone: 020 7317 3799
Mobile: 07770 585313
Email: [email protected]
Ellie Kirkby
Telephone: 020 7317 3790
Mobile: 07764 241898
Email: [email protected]
www.wilkinsonwilliams.co.uk
TENURE
PLANNING &
ENVIRONMENTAL
TENANCY, TENANT
COVENANT &
RENTAL VALUE
VAT, EPC &
PROPOSAL
MISREPRESENTATION NOTICE
Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 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.
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. 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. 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 so 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.
Any areas, measurements or distances referred to herein are approximate only.
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.
Wilkinson Williams LLP gives notice that some of the partnership members have a financial interest in the property.
HOME