Purley Way 230/250 Purley Way Croydon CR0 4XG
Retail Park
Prime Open Non Food Consent Retail Warehouse Investment
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Purley Way Retail Park
investment summary
Purley Way
Situated in the centre of one of the UK’s
The property is let on full repairing and
premier retail warehouse locations on
insuring leases expiring in 2021/22 at
Purley Way in Croydon, which serves a
passing rents between £33.00 and
wide and wealthy catchment.
£35.00 per sq ft.
Situated opposite a J Sainsbury’s
Potential opportunity to merge the estate
superstore with in excess of one million
with the adjoining holding and develop a
sq ft of out of town retail accommodation
new unit of up to 16,000 sq ft.
in the vicinity. The property comprises a purpose built retail park extending to approximately 42,164 sq ft occupied by Harveys, Carpetright, Allied Carpets and Bensons Beds.
We are instructed to seek offers in excess of £22.64 million, subject to contract and exclusive of VAT, which would provide a purchaser with a net initial yield of 6.00%, assuming
The property benefits from an open A1
purchasers costs of 5.7625%.
non food planning consent, with the only restriction being against the sale of DIY goods.
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Purley Way Retail Park
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Thornton Heath
A212 A235
A237
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Broad Green
d Be n gto din
St Ja m
La ne
Croydon is a major commercial and retail centre situated approximately 13 miles (21 kilometres) south of Central London, with an estimated resident population of approximately 350,000. As well as being an established major office location it also benefits from strong “in town retail� offer centred around the Whitgift Centre.
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1.0 location 1.0 location
Purley Way Retail Park
Croydon
A23 A236
h
VALLEY RETAIL PARK
Way
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To the west of Croydon lies the A23 (Purley Way), which forms the major arterial road leading from Junctions 7/8 of the M25 into south and Central London. This carriageway also provides direct access to Brighton and the South Coast.
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Purley Way Retail Park
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Waddon
CROYDON Mitcham
Beddington
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It is estimated that approximately 157,000 people live within 10 minutes drive time of the subject property, this figure increases to approximately 400,000 within a 15 minute drive time contour. As may be expected, the catchment population appears relatively wealthy with 22.1% being classified as educated urbanities, as opposed to a national average of 6.8%.
Croydon Road Duppas Hill Road
A232
h Ploug
A232
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Wallington
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Wallington
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Purley Way Retail Park
12 Selhurst
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Woodside
2.0 situation Purley Way provides a strong out of town retail destination where it is generally known that the majority of retailers trade extremely well.
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Cherry Orc
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Beckenham
Directly opposite the subject property is a very successful J Sainsbury’s foodstore extending to approximately 69,000 sq ft, which provides an excellent anchor to the immediate location. In close proximity to the Sainsbury’s is the Purley Way Centre, which is occupied by TK Maxx, Land of Leather and Argos, whilst to the north of the foodstore is a development occupied by Mothercare World and Carphone Warehouse. To the north of the subject property is a unit occupied by Comet, which is owned by The Prudential, together with a number of small industrial units. This scheme benefits from planning consent to construct up to 16,000 sq ft of retail accommodation adjacent to the subject property.
Purley Way Retail Park CROYDON
A214
A235
The subject property is situated in a highly prominent position at the junction of Purley Way and Commerce Way, at the centre of one of the strongest out of town retail destinations in the country.
To the south of the Purley Way Retail Park are flagship stores occupied by PC World, Toys “R” Us and Currys, whilst to the south of this is the former Uno unit which has been acquired by Castlemore Securities for a retail warehouse development.
A222 A236
Croydon
A232
A2022
Approximately ¼ mile to the north of the subject property is an IKEA together with a B&Q Warehouse and the Valley Retail Park, which extends to approximately 130,000 sq ft with occupiers including DFS, Marks & Spencer, Outfit, Next and Sports World.
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A23
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Undoubtedly, Purley Way provides a strong out of town retail destination where it is generally known that the majority of retailers trade extremely well. We estimate there is in excess of one million sq ft of retail accommodation situated in close proximity to the subject property.
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Purley Way Retail Park
1.0 location 3.0 description
The subject property comprises a purpose built retail warehouse park extending to 42,164 sq ft (3,917 sq m), currently divided into 4 units of between 7,498 sq ft and 14,446 sq ft. The development is of steel portal frame construction under a steel clad pitched roof. Elevations are clad with profile steel sheeting with each unit benefiting from a semi circular entrance feature. Customer access to the site from Purley Way is via an “all ways� traffic light controlled junction onto Commerce Way leading to a tarmacadam surfaced customer car park providing approximately 104 spaces to the front and side of the units. There is a dedicated service road leading from Commerce Way to a concrete surfaced service yard from where there is access to the rear of each of the units.
4.0 accommodation
The property provides the following approximate gross internal floor areas: Unit
Tenant
GIA sq ft
GIA sq m
1
Bensons Beds
14,446
1,342
2
Allied Carpets
10,128
941
3
Carpetright
10,092
938
4
Harveys
7,498
697
42,164
3,918
Total
The development benefits from approximately 104 customer car parking spaces, equating to a ratio of one per 405 sq ft (37.67 sq m).
There is an extensive trading mezzanine within Unit 4 occupied by Bensons Beds. We would highlight the developments attractive range of unit sizes and the potential to subdivide Unit 4 to provide two smaller units.
The property benefits from an open A1 non food planning consent, with the only restriction being against the sale of DIY goods.
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Purley Way Retail Park
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5.0 planning The property benefits from a planning consent which allows the sale of non food goods, save for DIY products. There are no specific restriction against the installation of mezzanine floors or in respect of further subdivision.
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6.0 tenure
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Harveys
Carpetright
Allied
Furnitureland
The site as outlined in orange is held freehold.
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Purley Way Retail Park
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7.0 schedule of tenancies The property is let on essentially full repairing and insuring leases in accordance with the following: Unit
Tenant
Area sq ft
Rent pa
Rent psf
ERV pa
ERV psf
Lease start
Lease expiry
Next rent review
1
Homestyle Group Properties plc
14,446
£476,700
£33.00
£476,700
£33.00
24/06/06
23/06/21
24/06/11
2
Allied Carpets Properties plc
10,128
£349,416
£34.50
£349,416
£34.50
10/04/07
09/04/22
10/04/12
3
Carpetright plc
10,092
£348,174
£34.50
£348,174
£34.50
22/12/06
21/12/21
22/12/11
4
Homestyle Group Properties plc
7,498
£262,430
£35.00
£262,430
£35.00
24/06/06
23/06/21
24/06/11
42,164
£1,436,720
Total
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Purley Way Retail Park
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8.0 tenants’ covenant We summarise the most recent accounts in respect of each of the occupying tenants. Tenant
Date
Turnover (£’000s)
Pre Tax Profit (Loss) (£’000s)
Net Worth (£’000s)
D&B Rating
Homestyle Group Properties plc
01/02/06
112,148
(1,693)
10,868
3A3
01/05/05
-
(2,908)
12,561
28/01/07
475,900
67,000
29,100
29/04/07
451,400
64,200
21,700
30/12/06
53,015
3,167
20,746
31/12/05
51,119
(14,628)
18,581
Carpetright plc
Allied Carpets Properties Ltd
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Purley Way Retail Park
9.0 rental value/asset management
The tone of the rents on the subject property were set by way of a number of regearings and lettings agreed between 2006 and 2007. The most recent was the letting of Unit 4 of 14,446 sq ft to Bensons Beds at a rent of £33.00 per sq ft. This tone of rent is supported by historical evidence in the location. Most specifically the letting in May in 2004 on the TK Maxx (32,400 sq ft) at the Purley Way Centre, which was agreed at £32.00 per sq ft. The more historic rent review on the Mothercare World unit, extending to approximately 30,000 sq ft from May 2004 at an effective rate of £30.00 per sq ft also supports the rents on the subject property, as does the settlement on the adjacent Comet unit of 23,230 sq ft, which was agreed at a similar figure from March 2004.
Other than the intrinsic strength of the location as a retail destination, we believe there are a number of specific considerations which should lead to rental growth in the future.
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We understand Mothercare World are in the process of considering downsizing their unit. It is rumoured that there is tenant demand at a rent in excess of £35.00 per sq ft. We do not consider this location to be as good as the subject premises and therefore this should demonstrate immediate reversion. Castlemore Securities recently purchased the former Uno store to the south of the subject property. It is understood they are proposing a new retail warehouse development and we anticipate they will achieve lettings, which will demonstrate a reversion from the passing rents on the subject property. The owners of the adjacent holding, which includes the Comet store, have planning consent for additional retail accommodation of up to approximately 16,000 sq ft. This could be developed in conjunction with the subject property to provide direct customer access between the two parks, which may provide a further stimulus for rental growth. There was previous interest in this accommodation from SCS.
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10.0 proposal
Our clients are seeking offers in excess of ÂŁ22.64 million subject to contract and exclusive of VAT, which would reflect a net initial yield to the purchaser of 6.00%, assuming purchase costs of 5.7625%.
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9.0 rentalinformation value / asset management 1.0 location for more please contact Wilkinson Williams Mellier House 26a Albemarle Street London, W1S 4HY
Miles Marten 020 7317 3777 m.marten@wilkinsonwilliams.co.uk
020 7495 4321
wwww.wilkinsonwilliams.co.uk
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.
8.
Plans are published for convenience of identification only and although believed to be correct, their accuracy is no guaranteed and they do not form part of any contract.
Purley Way Retail Park | Croydon | April 08 | Ref: 104973
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