wickes building supplies limited

WICKES BUILDING SUPPLIES LIMITED
MOOR STREET, BURY, BL9 5AQ
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
INVESTMENT
SUMMARY
• The town of Bury lies 10 miles to the north of
Manchester city centre.
• Estimated primary catchment of some
275,000 people.
• B
enefits from excellent road communications
being situated close to Junction 2 of the M66
motorway, providing immediate access to the
M61, M62 and M60 motorways.
• The property is situated in Bury’s ‘retail core’
within close proximity to The Rock Shopping
Centre and Woodfields, Moorgate, Angouleme,
and Hope Mill Retail Parks.
• S
tandalone unit totalling 28,460 sq ft.
• O
pen A1 (food and non-food) planning consent.
• L
et to the undoubted 5A1 covenant of Wickes
Building Supplies Limited.
• New 20 year lease from 22 December 2015.
Tenant break at year 10 with a £200,000 penalty.
• C
urrent rent of £334,405 per annum, reflecting
£11.75 per sq ft.
• Freehold.
We are instructed to seek offers
of £4,485,000, subject to contract
and exclusive of VAT. This reflects
an attractive net initial yield of
7.00% (assuming purchaser’s costs
of 6.57%).
2
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WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
ckpool
M55
A671
A9
Preston
Bradford
Burnley
A680
A666
M6
Blackburn
A59
Leyland
Halifax
A646
A58
M62
Wakefield
M62
A6033
A56
A644
A629
M66
Huddersfield
M62
Rochdale
A642
A637
A664
A570
M6
M61
Bury
Bolton
A666
Wigan
M1
A663
Oldham
A628
Leigh
St Helens
A627
A56
A580
A6
A62
A665
Manchester
A628
M60
Barnsley
DEMOGRAPHICS
A629
A616
The total population within the Bury
catchment area is circa 275,000 people,
extending to a population of over 636,000
people living within a 20 minute drive
time of the subject property. The town
is projected to see a healthy growth in
population over the period to 2020,
comparable with the average for centres of
this size.
Levels of car ownership and home
ownership within the catchment are above
the GB average, which indicates an affluent
car-borne catchment population.
Over the past 15 years, total employment
in Bury has increased at a faster rate than
the PROMIS average. Total average weekly
earnings are in line with the national
average, whilst the town’s current rate
of unemployment is below the national
average.
Reflecting the demographic profile
and spending habits of the catchment
population, per capita retail spending levels
are comparable with the PROMIS average.
Penistone
A576
A580
M57
M62
A58
M58
NEXT
M62
A646
M65
M65
M1
M621
M606
A6036
Leeds
Pudsey
A677
thport
ootle
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OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
A6018
A57
M60
M6
A5103
M62
A534
erpool
A557
Widnes
Runcorn
Warrington
Frodsham
A56
A50
M56
Sheffield
A555
M56
A49
A629
M56
A49
A557
A533
Stockport
A57
A6
Wilmslow
M6
M65
A523
A556
Accrington
Blackburn
Castleton
A6
A623
A56
A61
Eyam
The town benefits from excellent road
communications, being situated approximately
2 miles west of Junction 2 of the M66 motorway,
providing immediate access to the M61, M62
and M60 Manchester orbital motorway and
ultimately to the M6 and M1 motorways.
275,000
TOTAL POPULATION
WITHIN BURY
A6033
LOCATION
Bury is one of 10 metropolitan boroughs that
comprise the Greater Manchester conurbation,
located approximately 10 miles north of
Manchester city centre, 7 miles west of Rochdale
and 6 miles east of Bolton.
Todmorden
Rawtenshall
Whitworth
Ramsbottom
10
MILES
6
Littleborough
M66
Tottington
MILES
A58
NORTH OF
MANCHESTER
EAST OF BOLTON
Bolton
The town also benefits from an excellent public
transport network with GMPTE Metrolink
tram providing a direct service from Bury to
Manchester city centre and Manchester intercity
railway stations, with an average journey time of
circa 30 minutes. The service also connects to
Salford Quays and Altrincham.
M61
A58
Little Lever
Farnworth
A56
Bury
Whitefield
Royton
Middleton
Prestwich
Swinton
Eccles
TOTAL POPULATION
WITHIN A 20 MINUTE
DRIVE-TIME CATCHMENT
A627 (M)
M62
Chadderton
M60
Milnrow
A58
Radcliffe
Walkden
3
Rochdale
Heywood
636,000
M602
Oldham
KEY
M60
Failsworth
A62
Manchester
Ashton-Under-Lyn
Subject property
10 minutes drive-time
20 minutes drive-time
WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
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RETAILING IN BURY
Nearby retail warehouse schemes include:
1. WOODFIELDS RETAIL PARK
(BRITISH LAND)
Anchored by an 85,000 sq ft Tesco, the park’s
tenants include Next, Boots, Currys, JD Sports
and Sports Direct with retail warehouse rents
between £27.50 and £28.25 per sq ft. There is
also a McDonald’s drive-thru at a rent of circa
£31.50 per sq ft.
2. ANGOULEME RETAIL PARK
(PICTON PROPERTY)
The scheme totals 78,000 sq ft, arranged
across 5 units, let to TK Maxx, Argos, PC
World, Poundstretcher and B&M at rents
between £11.50 and £18.00 per sq ft.
6. BRIDGE HALL INDUSTRIAL PARK
(BRITISH LAND)
A 97,500 sq ft B&Q store, let until September
2029 at a rent of £17.85 per sq ft and a Burger
King unit at a rent of £21.29 per sq ft.
here is also a 30,000 sq ft Matalan unit
T
adjoining the park, at a rent of circa £13.25 per
sq ft, owned by High Point Estates.
4. MOORGATE RETAIL PARK
(SAVILLS INVESTMENT MANAGEMENT)
A 50,000 sq ft park where tenants include
Carpetright, Halfords, Home Bargains and
Farmfoods with rents ranging between £10.00
and £17.50 per sq ft and a KFC pod at a rent
of circa £25.40 per sq ft.
e
Bold St
Ave
Rochd
ale Rd
J2
eR
J2
d
St
M66
rd
he
ep
cil
Ce
Sh
A58
Hazel
Chestn
u
St
rd
Rochdale Rd
3
W
ay
A56
6
St
rg
e
eo
G
Silv
er
2
Mill Gate
Shopping Centre
St
M66
Croft St
Lo
le
Bury
York St
The Rock
Shopping Centre
St
ll St
Inwe
bi
St
Cedar
hol
Pim
Ju
Bridge Rd
Albion St
Bolton
d
Millett St
A58
Ln
rb
Pe
Peel Way
4
De
ay
W
el
t
en S
Crav
Shaw St
ay
yW
5
Wa
sh
nt R
Wickes,
Moor Street
1
Bright St
A56
Mou
Birch St
St
The retail warehouse supply within the Bury
catchment is estimated at 624,000 sq ft, which is
below the PROMIS average. The majority of this
space is located within close proximity to the town
centre and the subject property is situated within
this ‘retail core’.
5. CROSTONS RETAIL PARK
(STANDARD LIFE INVESTMENTS)
This park is occupied by a 10,000 sq ft Aldi,
a 9,300 sq ft unit let to Home Bargains and a
41,000 sq ft unit, formerly let to B&Q, which
B&M Bargains have recently taken.
Willow
The town’s retail provision is focused around The
Rock Shopping Centre where retailers include
Primark, M&S, Next, Debenhams, H&M, River
Island and Topshop. There is also Mill Gate
Shopping Centre, retailers here include BHS,
Boots, New Look, Mothercare and the Bury Market.
3. HOPE MILL RETAIL PARK
(F&C UK REAL ESTATE INVESTMENTS)
The park provides 35,000 sq ft across 3 units
let to Pets at Home, Smyths Toys and Bensons
for Beds at rents between £14.00 and
£16.00 per sq ft.
t Ave
Bury dominates the retail landscape to the north of
Manchester, benefiting from a lack of quality retail
competition in the neighbouring towns of Bolton
and Rochdale.
St
4
A58
WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
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SITUATION
The subject property is situated on Moor Street and is highly
visible from the A56 (Peel Way).
Situated in the town’s ‘retail core’, the unit’s accessibility and
prominence provides Wickes with a competitive trading
position and their commitment to both the town and the
store is evidenced by the recent regearing of their lease.
S
Rd
am
Ba
c
kC
Rd W
he
sh
by St
lmersley
Horn
Back Wa
k
Bac
M66
Chesham Rd
t
nS
m
ha
es
Rd
car
Ch
Ln
nto
De
sh Dr
Ru
th
St
Hud
Thru
rey
off
Ge
St
M66
Chesham Fold Rd
ount
ley M
St
A56
Hunt
Bridge
nby St E
Back Hor
Back Walmersley Rd W
Hornby St
Regent St
Rd
Badger St
Hornby
St
r St
Back Bel
Moo
Shaw St
l Ln
Maxwell St
St
St
G
eo
rg
e
St
Fountain
St
York St
Derby
Way
N
Cedar
Lau
rel
Willow
ay
W
Chestnu
t Ave
el
Pe
St
A58
Rochdale
Rd
M66
A58
J2
J2
A58
5
A58
WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
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DESCRIPTION
Walmersley Road
t
The customer car park is accessed via a one way system, with ingress from
Moor Street and egress onto Hornby Street. There are circa 131 car parking spaces
providing an overall car parking ratio of 1 space per 217 sq ft of gross internal
floor area.
y Stree
Internally, the unit is fitted out to the tenant’s standard specification. Following the
regearing of the lease, Wickes are to undertake alterations and refit the existing
store. Further details are available upon request.
Hornb
The property comprises a standalone purpose built retail warehouse unit, let to
Wickes Building Supplies Limited, totalling 28,460 sq ft GIA. The tenant’s signage is
prominently displayed to the front of the unit and is clearly visible from the A56
(Peel Way).
Buckley Street
To the rear of the property is a separate service yard which is accessed via
Buckley Street.
The total site area is approximately 2.15 acres, giving a low site cover of 30%.
Fox Street
r St
Moo
PLANNING
reet
The property benefits from an open A1 (food and non-food) planning consent.
A copy is available upon request.
TENURE
eet
r Str
The site delineated in red is held freehold.
Moo
EPC
Peel
Way
The property has been rated grade B (50). A copy of the EPC is available on request.
VAT
The property comprises a standalone purpose
built retail warehouse unit, let to Wickes Building
Supplies Limited, totalling 28,460 sq ft GIA.
The property had been elected for VAT, however, it is anticipated that the transaction
will be treated as a Transfer of Going Concern (TOGC).
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WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
OUT OF TOWN RETAIL INVESTMENT OPPORTUNITY
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TENANCY
The property is let on a 20 year full repairing and insuring lease to Wickes
Building Supplies Limited from 22 December 2015. There is a tenant break
option at the 10th anniversary of the lease, subject to a £200,000 penalty.
This provides an unexpired term of circa 9.7 years.
The current passing rent is £334,405 per annum, reflecting £11.75 per sq ft.
TENANT COVENANT
Wickes Building Supplies Limited is a wholly owned
subsidiary of Travis Perkins plc and currently trade
from over 200 stores across the UK. They are one
of the leading national DIY retailers in the UK with
a particular focus on commercial trade. Wickes
Building Supplies Limited have been classified by Dun & Bradstreet as
‘Minimum Risk of Business Failure’ and awarded a rating of 5A1.
TENANT
YEAR ENDING
27 DEC 2014
YEAR ENDING
28 DEC 2013
YEAR ENDING
29 DEC 2012
Sales Turnover
£1,039,986,000
£972,038,000
£976,136,000
£68,731,000
£49,441,000
£55,550,000
Tangible Net Worth
£335,080,000
£298,859,000
£273,471,000
Net Current Assets
£231,159,000
£190,248,000
£164,682,000
Profit (pre-tax)
TENANT
2014 v 2013
Turnover
6.99%
Gross Profit
7.05%
Net Operating Profit
37.54%
Profit Before Tax
39.02%
Profit After Tax
41.11%
Wickes Building Supplies Limited have
been classified by Dun & Bradstreet as
‘Minimum Risk of Business Failure’ and
awarded a rating of 5A1.
7
WICKES BUILDING SUPPLIES LIMITED, BURY, BL9 5AQ
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PROPOSAL
We are instructed to seek offers of
£4,485,000, subject to contract and exclusive
of VAT. This reflects an attractive net initial
yield of 7.00% (assuming purchaser’s costs
of 6.57%).
FOR FURTHER INFORMATION
MILES MARTEN
T: 020 7317 3777
M: 07770 748290
E: [email protected]
JACK LLOYD
Wilkinson Williams
Heathcoat House
20 Savile Row
London W1S 3PR
T: 020 7317 3796
M: 07747 883231
E: [email protected]
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 THE
8
GROUP
www.completelygroup.com
April 2016 | 14395.001