ASDA - Allsop

ASDA
DOCK ROAD, GOSPORT, PO12 1SH
ASDA Supermarket Ground Lease Investment Opportunity with 84 years unexpired
ASDA DOCK ROAD, GOSPORT, PO12 1SH
INVESTMENT
CONSIDERATIONS
■■
Rare opportunity to acquire a long
dated ground lease to Asda Stores Ltd
■■
Freehold
■■
Total site area of 1.74 hectares (4.8 acres)
■■
Predominantly let to Asda Stores Ltd
on a 125 year ground lease from
24 June 1975 on full repairing and
insuring terms at a current rent
of £249,850 pa (84 years unexpired)
■■
Guide Price of £5,250,000 (Five
Million, Two Hundred and Fifty
Thousand Pounds) reflecting a net
initial yield of 4.50% net of purchaser’s
costs at 5.75%.
ASDA Supermarket Ground Lease Investment Opportunity
Cheltenham
Gloucester
Luton
Oxford
M40
A1(M)
M1
OXFORD
M5
M48
NEWPORT
M49
London
City
M4
A346
BRISTOL
BATH
Bristol
M5
A4
A338
A361
M3
Basingstoke
A331
l
evi
A3(M)
M27
Chichester
o
The Anch
rage
k Rd
Woodstoc
ton
Kensing
Road
d
rth Road
Moleswo
oa
Alver R
H aslar Road
S
eet
Str
Cranbourne Road
May field Road
Dolman
Park Roa d
33 South Str
B33
eet
d
Willis Roa
33
ry Road
Shaftsbu
3
B3
ad
th
ou
Road
Dock
Bury R
o
ed St
Prince Alfr
The town has a population of 82,622 (2011 Census)
and lies on a peninsula on the western side of
Portsmouth harbour which is linked via pedestrian
ferry that runs all day (journey time 3 minutes). There
are 341,827 people living within a 5 mile radius of the
property.
Walpole
Park
d
oa
eR
ok
St
ry Road
B333 3 Bu
ad
LOCATION
Communications are good with the town being
located on the A32 which in turn links the
town with the M27 and the national motorway
network. Portsmouth Harbour station is
accessed via ferry from Gosport providing
regular direct services to London Waterloo with
a fastest journey time of 1 hour 39 minutes.
Southampton International airport is located
32.2 km (20 miles) to the north west.
Brighton
High Street
Walpole Rd
Gosport is a borough town located on the south coast
of England approximately 3.2 km (2 miles) south west
of Portsmouth, 8.0 km (5 miles) south east of Fareham
and 24.1 km (15 miles) south east of Southampton.
M
Worthingu
y Ro
mb
Weymouth
Leesland
Park
Bognor Regis
Road
Spring Garden Lane
GOSPORT
Bournemouth
A3
2
A27
Clarence
Portsmouth
Southsea
Bournemouth
e
Lan
Southampton
A31
A37
A22
A23
We
A338
A24
A264
A272
Southampton
A35
M23
A3
M27 Eastleigh
A354
Dorchester
M25
Guildford
M3
A31
A350
Woking
Gatwick
Winchester
A32Salisbury
Forton
R d
A36 oaM271
Yeovil
A35
A33
A339
Andover
A303
A39
A358
Heathrow
Newbury
A34
A303
LONDON
READING
M4
A350
A36
A37
M11
A34
Swindon
M32
M25
M40
A419
Road
ASDA DOCK ROAD, GOSPORT, PO12 1SH
E
RAG
1 to 15
solu
Ho tion
use
37
O
NCH
Re
GE
CHORA
THE AN
NYR
SITUATION
Depot
2
14
A
THE
1 to 15
ASDA Gosport
Works
The property is situated within the Cranbourne Industrial Estate
with access to the site coming from the eastern side of Dock Road.
The surrounding area is a mixture of both industrial and residential
uses. Nearby occupiers include Auto Tyre Centre, Halfords, Iceland
and Waitrose.
4
16
6
18
R
DOCK
3
OAD
2
5
4
7
1
DESCRIPTION & ACCOMMODATION
12
24
26
The property comprises a site of approximately 1.74 hectares
(4.8 acres) on which stands a supermarket developed in the
1970s together with associated car parking. The property
provides the following areas (as agreed at the last rent review):
Garage
Main Superstore (GIA)
Superstore
Works
e
Garag
El Sub
Sta
3.7m
KEY: n ASDA n Car Park Land n Right of Way
18
Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1396
Area (Sq ft)
4,456.2
47,967
Foyer
368.7
3,969
Covered Unloading Area
977.5
10,522
The property has been extended by the tenant over the term
of the lease to comprise a circa 70,000 sq ft supermarket
with car parking for approximately 275 cars on site.
CRANBOURNE ROAD
©0m
Crown Copyright,
ES 100004106.50m
For identification75m
purposes only.
25m
House
Gerard
Area (Sqm)
Depot
ASDA Supermarket Ground Lease Investment Opportunity
TENURE
EPC
VAT
Freehold
An energy performance certificate
(EPC) is available upon request.
We understand the property
is not elected for VAT.
TENANCY
COVENANT
The property is held via three leases:
Asda was founded in 1949 and became a subsidiary of Wal-Mart, the world’s
largest retailer in 1999. Asda are one of the big four UK supermarket chains that
dominate the UK grocery market. Wal-Mart, who are a quoted company on the US
stock market, currently have a market capitalisation in the order of $200 billion.
1.The main site is let by way of a 125 year ground lease from 24
June 1975 on full repairing and insuring terms to Asda Stores
Ltd at a passing rent of £233,000 pa (84 years unexpired). The
rent is subject to 5 yearly rent reviews which is reviewed to
35.74% of the market rent. The 2015 rent review is outstanding.
2.The additional car parking land is let by way of a 99 year lease
from 24 June 1977 at a passing rent of £12,750 pa.
Asda Stores Limited is the main trading company of Asda being a wholly owned
subsidiary of Wal-Mart Stores Inc. The company currently has a D&B rating of
5A1 representing minimal risk of business failure. The latest financial figures
available for the tenant are shown below:
The rent is subject to 5 yearly open market rent reviews.
3.The right of way is let by way of a 96 year lease from
24/06/1980 at a passing rent of £4,100 pa.
The rent is subject to 5 yearly rent reviews which is reviewed
to 28% of the ground rent of the adjoining car park land.
Sales Turnover
Profit/(Loss) Before Taxes
Tangible Net Worth
Year Ending
31 Dec 2014
Year Ending
31 Dec 2013
Year Ending
31 Dec 2012
£23,156,700,000
£23,299,400,000
£22,813,900,000
£609,900,000
£605,100,000
£483,500,000
£5,596,800,000
£5,349,000,000
£5,090,400,000
PROPOSAL
For further information or to make arrangements for viewing please contact:
We are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and Fifty Thousand
Pounds), which reflects a net initial yield of approximately 4.50% after purchaser’s costs of 5.8%.
Please note there is a pre-emption agreement in favour of the tenant - please refer to Allsop for further information.
Jonathan Butcher 020 7543 6755
We would highlight that the property is to be offered at auction (unless sold prior)
on 21 March 2016, at the Berkeley Hotel, Wilton Place, London, SW1X 7RL.
Further information can be downloaded at www.allsop.co.uk
[email protected]
David Hammond 020 7543 6721
[email protected]
Alex Butler 020 7543 6722
[email protected]
www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as
to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property.
The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers
or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where
appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 02.16