RETAIL PARK - Cushman & Wakefield€¦ · - Landlord will top up to the year 3 rent. - First 6 months rent free to be topped up by landlord. - 3 months rent free at beginning of year

O P E N A 1 R E TA I L W A R E H O U S E I N V E S T M E N T

TRINITY RETAIL PARKST PETER’S WAY, BOLTON

INVESTMENT SUMMARY• Bolton has an estimated total population within the

primary catchment area of 529,000 people.

• An open A1 non-food retail park comprising 5 retail warehouse units and a drive-thru unit totalling 84,552 sq ft.

• Prominent and highly accessible location adjacent to the town centre and the A666.

• Fully let and income producing.

• Toys R Us have been in occupation since 1994 with significant goodwill attached to the store.

• Opportunity to pursue regears with Toy R Us and Burger King.

• Opportunity to drive rent on Burger King on the back of the new letting to Costa, adjacent to the park entrance.

• New letting to Ninja Nation, building on the success of soft play/leisure activities at the park.

• Freehold.

• Contracted rent of £893,149 per annum, reflecting a low average level of £10.56 psf.

• AWULT of 5.1 years (4.2 years to break).

• We are instructed to seek offers in excess of £9,000,000 (Nine Million Pounds Sterling) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 9.30% after allowing for purchasers costs of 6.68%.

• Option to buy the Isle of Man based SPV company.

TRINITY RETAIL PARKST PETER’S WAY, BOLTON

2 3

TRINITY RETAIL PARKBOLTON, BL2 1HY

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LOCATIONBolton is a major regional centre within Greater Manchester, 14 miles (22.5 km) north west of Manchester. Bury and Rochdale are to the east, along the M60/M62 motorways, about 7 miles (11 km) and 18 miles (19 km) respectively.

Rail services connect the town with central Manchester with a journey time of 20 minutes which provides good rail links to London Euston, with a total journey time of approximately 2 hours 47 minutes. Manchester International Airport is located 20 miles (32 km) to the south east.

The town has good road communications, situated between the M61 and M66 motorways providing access to Junctions 14 and 18 respectively of the M60 motorway, within 2.8 miles (4.5 km).

Bolton has an urban population of 266,500 persons (Source: 2010 ONS Estimate). Bolton is categorised by PROMIS as a Sub Regional Centre, with a total population within the Bolton primary catchment area of 559,000, above the Sub Regional Centre average and ranking the town 26 out of the PROMIS Centres.

Bolton has a household catchment of 76,604 within 10 minutes drive and 276,222 within 20 minutes drive.

Trinity Retail Park is situated in a prominent location fronting St Peter’s Way (A666), approximately 0.5 miles south of Bolton town centre. The site is accessed via Lower Bridgeman Street (A579).

The subject property is within close proximity to a number of major food stores including ASDA, Morrisons, Tesco, and Sainsbury’s.

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M61

M6

M62

M62

M66

M60Leigh

Rawtenstall

Chorley

Darwen

Standish

Wigan

Leyland

Sale

Bury

Worsley

Eccles

SwintonPrestwich

Whitefield

Heywood

Rochdale

Middleton

Oldham

Salford

BOLTON

StockportWarrington

MANCHESTER

SUBJECTPROPERTY

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M61

M6

M62

M62

M66

M60

Leigh

Chorley

Leyland

Skelmersdale

Sale

Bury

Radcli�e

Little Hulton

Worsley

Eccles

SwintonPrestwich

Whitefield

Heywood

Rochdale

Middleton

Salford

BOLTON

StockportWarrington

BOLTON

MANCHESTER

Trinity Retail Park prominently situated fronting St Peter’s Way (A666),

0.5 miles south of Bolton town centre

Bolton

A676

DEANE ROAD

MO

OR

LAN

E

TO

PP WAY

TRINITY STREET

A579 BURY ROAD

A58

CROM

PTON

WAY

BLA

CKB

URN

RD

A666

ST PETER’S WAY

A666

ST PETER’S WAY

CHORLEY OLD ROAD

B6226

CHORLEY NEW ROAD A673

B6202 M

AYOR ST

B6204

A6099

TURTON ST

B6206

A67

6

TONG

E M

OO

R R

OA

D

A67

6

B6208 THICKETFORD RD

B6208

A579

ST HELE

N’S ROAD

A579

MANCHESTER ROAD

B6209

RADCLIFFE ROA

D

B6209

LON

G L

AN

E

BOLTONBOLTONSUBJECT

PROPERTY

CATCHMENT

Subject Property

10 minutes

20 minutes

BURGER KINGCOSTA

CENTRAL RETAIL PARK

BOLTON RAILWAY STATION

BOLTON GATE RETAIL PARK

BURNDEN RETAIL PARK

BOLTON SHOPPING PARK

MORRISONS

BOLTON TOWN CENTRE

A666

A666

TOYS R US

OFFICE OUTLET

JUMP XTREME

NINJA NATION

A579

A575

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PLANNINGThe scheme benefits from an Open A1 (non-food) planning consent.

Planning permission was granted in January 1994 for the ‘erection of buildings comprising non-food retail with car parking/servicing/loading/turning facilities and new vehicular access’.

Further permission was granted in May 1994 to provide for a drive-thru fast food unit with associated car parking areas.

There were no restrictions on sub-division within the original consent.

DESCRIPTIONThe park comprises five retail warehouse units and a drive-thru unit totalling approximately 84,552 sq ft (7,855 sq m) with an excellent parking provision of 377 car spaces plus 2 for ‘pick-up’ at Toys R Us, reflecting a ratio of 1:223 sq ft.

Toys R Us – 133 spaces plus 2 for ‘pick-up’Burger King – 37 spacesOther Units – 207 spaces

There is additional staff parking.The site area is approximately 4.96 heactares (12.24 acres), which equates to a low site cover of c.16%. This provides the potential to consider the development of a further leisure pod, subject to planning.

TENANCIESLet to 5 occupiers, with substation lease to Norweb.

Current contracted rent of £893,149 pa.

Unit Tenant Lease Nature Area (sq. ft)

Lease Start Date

Lease Expiry Date

Rent Review Dates

Break Clause Dates

Annual Rental Income

Rent /sq.ft Comments

1 Ninja Nation Ltd Full repairing 10,046 04/08/2017 03/08/2022 £90,414 £9.00 - Step rent: Yr 1: £80,369 /Yr 2: £85,391 /Yr 3: £90,414 /Yr 4: £95,437 /Yr 5: £100,460. - Landlord will top up to the year 3 rent.- First 6 months rent free to be topped up by landlord.- 3 months rent free at beginning of year 2 to be topped up by landlord. - Subject to a schedule of condition.- Tenant exempt from major individual service charge items in excess of £30,000.- Rent deposit of £24,000.- Tenant to install 7,000 sq ft mezzanine.

2&3 Jump Xtreme Limited Full Repairing 20,080 13/11/2015 12/11/2025 13/11/2017 £201,350 £10.03 - Rent topped up for step between 13/11/2017 and 26/03/2018.- Rent deposit of £241,200.- 20/09/2017 side letter to permit rent payment on a monthly basis at half rent.- 50% of rent payment to be covered by draw down on rent deposit.

4 SUK Retail Ltd (ex-Staples Europe Ltd)

Full Repairing 17,150 24/08/2017 23/08/2027 24/08/2022 24/08/2022 £171,500 £10.00 - Break option: tenant only / 6 month notice.- 12 months half rent free from term commencement to be topped up.- If tenant does not exercise the break, it will be awarded a 50% reduction in rent for 6 months.

5 Toys R Us Limited Full Repairing 34,822 29/09/1994 28/09/2019 29/09/2014 £370,000 £10.63 - Service charge cap on management fees, current shortfall of £2,428.16 pa.

6 Burger King Limited Full Repairing 2,454 24/06/1994 23/06/2019 £59,885 £24.40

Substation Norweb Pic Full Repairing 30/11/1994 29/11/2019 £0 Easement.

Total 84,552 £893,149

River Croal

WAYHERON'S

BACK MANCHESTER

DUNLIN CLOSE

Sloping masonrySloping masonry

Play Area

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17

20

Trinity Retail Park

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25

39

33

14

6

Boro Const & Ward Bdy

River Croal

89.0m

83.5m

Pipeline

Path

BACK HILDEN STREET

WAY

HERON'S

HILDEN STREET

ST PETER'S WAY

HILDEN STREET

WESTBR

OO

K STREET

SELWYN STREET

BACK HILDEN STREET

BACK

STREET WEST

HILDEN

Sloping masonry

SM

Sloping masonry

SPRINGFIELD

Trinity Retail Park

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St Peters Court

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Superstore

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Old Coach House

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Tank

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87.2m

BIRCH STREET

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0m 25m 50m 75m

NINJANATIONFITTING

OUT

TENUREFreehold.

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COVENANT ANALYSISNinja Nation Ltd have a D&B rating of O3

Jump Xtreme Limited have a D&B rating of 1A2Jump Xtreme have trampoline parks across the UK in Bolton, Bury and Tamworth. The parks are amongst the largest in the UK and each include over 100 interlinked trampolines.

Non Consolidated GBP 30 Oct 2016

Tangible Net Worth £914,976

Net Current Assets (Liabilities) (£517,861)

SUK Retail Ltd have a D&B rating of N4Office Outlet rebranded from Staples in February 2017. The US-based stationery specialist agreed to sell its UK retail business and operations, which employs 1,100 people, to Hilco Capital in November 2016. Hilco has also moved to streamline its property, by attempting to shed up to 285,000 sq ft from its store portfolio by sub-letting space in 35 larger stores. The Trinity Retail Park Store was unaffected by this strategy.

Fiscal Non Consolidated GBP

30 Jan 2016 (£000’s)


30 Jan 2015 (£000’s)


01 Feb 2014 (£000’s)

Sales Turnover 198,090 219,622 227,367

Profit / (loss) Before Taxes (21,713) (4,985) (7,061)

Tangible Net Worth (35,123) (62,812) (57,765)

Toys R Us Limited have a D&B rating of 5A1Toys R Us is an American toy and juvenile-products retailer founded in 1948 and headquartered in New York. The company owns or licenses 866 Toys “R” Us and Babies “R” Us stores in the United States and Puerto Rico, more than 750 international stores and more than 245 licensed stores in 37 countries and jurisdictions.

The US arm filed for bankruptcy in September 2017, however the European business, which includes 110 stores and more than 2,500 staff in the UK, is separate from the US. The retailer, which arrived in the UK in 1985, is still planning to open four more stores in Britain before Christmas.


28 Jan 2017 (£000’s)


30 Jan 2016 (£000’s)


31 Jan 2015 (£000’s)

Sales Turnover 418,251 435,948 437,966

Profit / (loss) Before Taxes 23,510 5,360 928

Tangible Net Worth 319,513 311,468 301,713

Burger King Limited have a D&B rating of N1Burger King, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. The company began in 1953 as Insta-Burger King, a Jacksonville, Florida-based restaurant chain.


31 Dec 2015 (£000’s)


31 Dec 2014 (£000’s)


31 Dec 2013 (£000’s)

Profit / (loss) Before Taxes (1,479) (4,285) (2,966)

Tangible Net Worth (739) (28,475) (24,172)

There is a 2012 Underlease to Karali Limited who have a D&B rating of 3A1.The Karali Group is one of the largest franchisees and was the winner of the AB Award’s Franchisee of the year in 2014.


31 Dec 2016


31 Dec 2015


31 Dec 2014

Sales Turnover £56,460,017 £53,375,115 £49,449,037

Profit / (loss) Before Taxes £2,709,537 £2,911,180 £1,330,232

Tangible Net Worth £8,581,495 £6,438,960 £3,669,621

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EPCFull EPC reports can be provided on request.

ESTATE’S CHARGEFurther information on request.

VATThe property has been elected for VAT and therefore VAT will be payable on the purchase price.

PROPOSALWe are instructed to seek offers in excess of £9,000,000 (Nine Million Pounds Sterling) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 9.30% after allowing for purchasers costs of 6.68%.

Option to acquire the Isle of Man based SPV company.

FOR VIEWINGS & ENQUIRIESFor further information or to arrange a viewing please contact

Simon [email protected] 0161 235 7641

Craig [email protected] 0161 455 3712

Giovanni [email protected] 235 7672

RETAIL WAREHOUSING PROVISION IN BOLTONBolton’s retail warehouse provision (non food) includes the subject property, Middlebrook Retail Park, Bolton Gate Retail Park, Bolton Shopping Park, Burnden Park and Central Retail Park.

We summarise the main non food and food provision within Bolton below and the map above.

Bolton is ranked 19 out of the PROMIS Centres in the UK in terms of Retail Warehouse supply.

NON-FOOD

Scheme Area (sq ft) Main Tenants Rental Tone Comments

Middlebrook Retail & Leisure Park

551,761 Boots, Next Home, Sports Direct £30 psf Bolton’s largest retail park developed in 1998 by Orbit Developments. Predominantly bulky goods with the exception of anchor stores.

Bolton Gate Retail Park

131,200 PC World, Dunelm Mill, Jysk, Bensons

£18 psf (small) £15 psf (large)

Developed in 1998, the park has a part open and part bulky goods consent.

Trinity Retail Park 84,798 Toys R Us, Staples, Jump Extreme, Burger King, Ninja Nation

c.£10 psf Open A1 (non-food) planning consent.

Bolton Shopping Park

105,000 TK Maxx, TJ Hughes, Peacocks, Decathlon, Boots and Next


Developed in 2006 Part Open A1 food and part non food planning consent together with an A3 pod and two storage units with planning consent for B8 use.

Burnden Park 64,492 Home Bargains, DW Sports, Poundstretcher

£15 psf Developed in 2001 by Orbit Developments, the scheme benefits from Open A1 consent.

Central Retail Park

82,105 Pets at Home, Iceland, B&M Maplin, Exercise 4 Less


Developed in 1985 the park has an Open A1 planning consent.

FOOD

Scheme Area (sq ft) Food Stores

Bolton Shopping Park 78,825 Sainsbury’s

Blackhorse Street 72,376 Morrisons

Trinity Way 12,000 Aldi

Burnden Park 85,508 AsdaMISREPRESENTATION ACTCushman and Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents and is free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. October 2017. Designed and produced by Creativeworld Tel: 01282 858200

INVESTMENT MARKETUK retail warehouses transaction volumes have rocketed in 2017 with competition for space driven by online shopping.Volumes to date in 2017 reflect the confidence and impetus in the market. Consumer confidence remains relatively robustwhich is filtering through into positive investor appetite across the sector.

New buyers are appearing alongside local authorities and the traditional institutional investor base, placing downward pressure on yields across the board for better quality assets. 2017 is expected to finish strongly as the sector continues to compare favourably to alternative sub-sectors.

Location Tenants Size (Sq Ft)

Price Unexpired Term (Years)

NIY Date

Moorgate Retail Park, Bury

Home Bargains, Carpetright, Halfords, Farmfoods and Kfc

51,765 £8,000,000 7.0 7.70% Marketing

Central Retail Park, Rochdale

Halfords, Argos, Matalan and Poundstretcher

68,768 £14,155,000 8.3 7.50% Marketing

Clough Road Retail Park, Hull

Currys Pc World, Go Outdoors, Halfords, Staples, Costa and Smyths Toys

88,500 £11,200,000 C.9.0 7.1% Aug 17

Wells Green Retail Park, Birmingham

Dreams, Pets At Home, Halfords 23,007 £5,100,000 7.5 6.64% Jun 17

A676 DEANE ROAD

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PP WAY

TRINITY STREET

A579

A58

CROM

PTON

WAY

BLA

CKB

URN

RD

ST PETER’S WAY

A666 ST PETER’S W

AY

CHORLEY OLD ROAD B6226

CHORLEY NEW ROAD A673

B6202

A6099

T

ONG

E MO OR RO

AD

A

676

B6208

B6208

A579

ST HELEN’S ROAD

A579

MANCHESTER ROAD

B6209 RADCLIFFE R

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A673

CHORLEY NEW ROAD

A673

BEA

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T RO

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VICTO

RIA

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A58

A58

DE HAVILAND WAY

A6

CHORLEY ROAD

A6

6

5

M61

BOLTONBOLTONTRINITY

RETAIL PARK

BURNDENRETAIL PARK

CENTRALRETAIL PARK

BOLTON GATERETAIL PARK

BOLTON SHOPPING PARK

MIDDLEBROOKRETAIL & LEISURE PARK

Bolton is ranked 19 out of the PROMIS Centres in

the UK in terms of Retail Warehouse supply

RETAIL PARK - Cushman & Wakefield€¦ · - Landlord will top up to the year 3 rent. - First 6 months rent free to be topped up by landlord. - 3 months rent free at beginning of year

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