Ravenside Retail Park Edmonton
Prime London retail park
Ravenside Retail Park Contents 05 Executive Summary 06 Location 06 Socio Economic Profile 08 Situation 10 Description 11 Tenure 11 Tenant Trading 12 Tenancies 12 Service Charge 13 Planning 13 Covenant Information 14 Asset Management Opportunities 14 Outstanding Rent Review 14 Environmental Considerations 15 Proposal
Based on the excellent performance of the two anchor tenants we would anticipate very successful trading when these stores open. The adjacency of a regional anchor in IKEA and a large Tesco Extra clearly underpins the location and trading.
Edmonton Ravenside Retail Park
03
Whilst Wickes and Mothercare are the only tenants currently trading from the scheme we understand that these are amongst the top stores in their respective portfolios from a trading perspective.
Postcode
N18 3HA
Grid reference
TQ356920
Executive Summary ■■ The Maplin Electronics lease incorporates a fixed uplift in 2011 whilst the Wickes and Argos leases incorporate fixed uplifts in 2012.
centre on the A406, London’s North Circular dual carriageway, towards the southern boundary of the London Borough of Enfield benefiting from
■■ Whilst Wickes and Mothercare are the only tenants currently trading from the scheme we understand
exposure to a significant and extensive catchment.
that these are amongst the top stores in their respective portfolios from a trading perspective.
■■ The Ravenside Retail Park forms part of a significant retail offer including a Tesco Extra, IKEA Superstore, Costco and further retail clusters, providing in the
■■ The approaching lease expiry on the Mothercare unit (June 2013) offers an excellent opportunity to regear given the
order of 82,125 sq m (884,000 sq ft) of floorspace.
store’s trading figures and the fact that this is Mothercare’s only
Furthermore there is also a J Sainsbury foodstore of
unit in the immediate area. Subject to planning a downsize
around 8,918 sq m (96,000 sq ft) approximately 4 km
and subdivision of the unit could also be implemented.
(2.5 miles) to the east of the subject property. ■■ The park benefits from a wide Bulky Goods planning consent with further relaxations, offering modern, well configured retail space extending to approximately 11,943 sq m (128,551 sq ft) together with 381 car parking spaces. ■■ The scheme is currently let to two tenants with a further five retailers having signed Agreements for Lease and taken occupation to commence fitting out of their respective units. The average unexpired term for those tenants in the main terrace stands in the order of 14 years.
Offers are sought in the region of £35,700,000, subject to contract and exclusive of VAT, for the Freehold interest in this
05
property. Based on an annual income of £3,303,126, assuming settlement of the outstanding Mothercare review and the vendor topping up the Maplin Electronics income to the level of the fixed uplift in 2011, this will show the following yield profile: Initial Yield
8.75%
Reversionary Yield Feb 2012 (Wickes guaranteed uplift)
9.40%
Reversionary Yield Mar 2012 (Argos guaranteed uplift)
9.45%
Edmonton Ravenside Retail Park
■■ Edmonton is a strategically positioned commercial
Location
Socio-Economic Profile A414
A414
Essendon Edmonton boasts a resident population of around 96,492
Edmonton is situated in the London Borough of Enfield,
Hemel approximatelyHempstead 14.5 km (9 miles) north of the Capital’s
St Albans
A10 people (2001 Census). According to CACI approximately
centre. Surrounding centres include Wood Green
159,409Wildhill people within a 10 minute drive time of the subject
around 7 km (4 miles) to the south west, Walthamstow
property and this figure increases to around 435,216 people
A41
around 6.9 km (4.2 miles) to the south east and Enfield
London Colney
M25
The area benefits from excellent communication links
ensures that the immediate locality draws upon a much
10 minutes
wider catchment, covering much of north east London.
15 minutes
Abbots
Cheshunt Waltham Cross
Cuffey
with the A406 North Circular providing access both east Langley and west across northern London. To the east the North A41
Ridge
Circular links with Woodford, Walthamstow, the M11 (and M1 M25) and A12. To the west is the A10 (M25 and the north),
M25
Radlett
Haringey, Friern M25 Barnet, Brent Cross and the M1 Motorway.
Aldeham
Forty Hill A1
The closest train station is Angel Road, situated just
Borehamwood
Chorleywood to the north of the North Circular and this provides Watford
Cockfosters
Edmonton
A410
Stanmore
Edgware
Harrow Ruislip
Chigwell
M1
Harefield
Brent Cross
Woodford Upper M11 Edmonton A406 North Circular A406 Muswell Hill Wood Green Walthamstow Crouch End A1400 Finchley A1
Hampstead
A40
Uxbridge M25
Sewardstone
A10
Southgate
A41
South Oxney
M40
M25
Loughton
a fastest journey time of around 27 minutes. Rickmansworth
Denham
Waltham Abbey
Enfield
a direct link with London’s Liverpool Street offering
M25
5 minutes
within a 15 minute drivetime. The presence of the IKEA
A414
itself around 5.8 km (3.6 miles) to the north.
Drive timeNazeing contours
A41 A40
Finsbury
A10
A503
Camden
A406 A12
A1
Hackney
Stratford
Ilford
London Colney
M25
A414
Abbots Langley
Cheshunt Waltham Cross
Cuffey
A41
Ridge Radlett
M1 M25
Potters Bar
Waltham Abbey
M25
Aldeham
Forty Hill
Sewardstone
A1
Chorleywood
Borehamwood
Watford
Cockfosters
Barnet
M25
Enfield Loughton
Stanmore
Edgware
Upper Edmonton
A406 North Circular
Muswell Hill
Harrow M40
Denham
Brent Cross
Finchley
A10
A1
A12
A12
A503
A41
Perivale
A40
Southall
A40
Hanwell A406 North Circular
Plaistow
Kensington
A406
London A302
A316 A307
A3216
A13
A1211
M25
A102
A117
Woolwich
Peckham A2211
A202
T Blackheath
Wandsworth
A2
A210
Forest Hill
The presenceA205of the IKEA ensures that theNew Eltham A20 Streatham locality draws upon a much wider A24 immediate catchment, covering much of northChislehurst east London. A23
Rainham
A2203
Lambeth A3
A13
Beckton
A100
Chelsea A4
Stepney
Holborn
A4
M4 A4
Dagenham
A10
A4201
Cowley
M4
Stratford
Hackney
A1
Camden Town
Ilford
Leyton
A406 North Circular M25
M11
A406 North Circular
A1400
Finsbury
Hampstead
Woodford
Walthamstow
Crouch End Ruislip
Chigwell Chigwell Row
M1
Harefield
M25
Edmonton
A410
07
Bexleyheath
A282
Dartford Crayford
North Cray
Beckenham Swanley
Edmonton Ravenside Retail Park
A41
South Oxney
A10
Southgate
A2
Situation The Ravenside Retail Park is situated on the southern side of the A406 North Circular, just to the west of the Cooks
8
Ferry roundabout. The site which offers excellent frontage and visibility to and from the dual carriageway is bordered to the east by the River Lea, to the south by the Orbital
6
Business Park and by IKEA (300,000 sq ft) and Tesco (100,000
7
sq ft) superstores to west. We estimate that the combined retail offer in the immediate vicinity provides a critical mass of space in the order of 91,044 sq m (980,000 sq ft). The majority of customers visiting IKEA and Tesco have to pass
5
by the subject property, ensuring significant traffic flow. The aerial photo adjacent shows the positioning
1
of the subject property in the context of the A406
Subject Property
3
North Circular and the surrounding retail provision. We have provided further information in regard to these schemes and stores on the next page.
4 2
We consider that the subject property offers significantly superior specification and quality retail warehouse floorspace than the surrounding provision and this has been demonstrated by a number of tenants relocating from this ‘older’ space (Allied Carpets and Paul Simon).
This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds.
1 Subject Property Ravenside Retail Park. 2 Tesco Extra c. 9,290 sq m (100,000 sq ft). 3 IKEA Superstore 27,870 sq m (300,000 sq ft). Eley Retail Park 4 c. 8,351 sq m (89,900 sq ft). Developed around 1984 current tenants include Magnet, Bensons Beds and Joysleep. 5 Cork Tree Retail Park c. 8,639 sq m (93,000 sq ft). Developed around 1989, current tenants include Currys, Pets at Home, Harveys and Halfords. 6 Cabinet Way Development c. 8,527 sq m (91,790 sq ft). tenants include Carpets 4 Less, Kwik Fit, Topps Tiles and B&Q. 7 Costco Superstore c. 9,290 sq m (100,000 sq ft). 8 J Sainsbury 8,918 sq m (96,000 sq ft).
09 Edmonton Ravenside Retail Park
Developed around 1983, current
Description The subject property is effectively split into two physical
demonstrated by those set out in the Tenancy Section,
elements by the access roundabout from Argon Road A10
together with required ancillary and staff facilities.
and Ravenside Close acting as a ‘spine road’ running into the scheme. The western ‘half’ of the site comprises an east facing stand alone retail warehouse unit occupied by Mothercare extending to around 2,797 sq m (30,107 sq ft) with a main forecourt car parking provision (101 spaces) and further smaller parking provision (32 spaces) to the south east corner, effectively adjacent to the servicing area.
Segregated servicing facilities for all the units are available via Ravenside Close whilst primary customer access to the scheme from the A406 North Circular is available from the Cooks Ferry roundabout via Harbet
A1055
Road and Argon Road. This is also the main customer access route to the adjacent Tesco and IKEA stores.
A1010
To the east of Ravenside Close is a north facing stand alone DIY store occupied by Wickes extending to approximately 5,625 A10
sq m (60,550 sq ft) and a further north west facing terrace of
A1037
5 units which has recently been completed and extends to approximately 3,520 sq m (37,894 sq ft). These units benefit
A1055 A112
from a forecourt parking provision of around 248 spaces.
A1010
A406 North Circular
The combined car parking areas offer an overall provision for the scheme of circa 381 spaces and a ratio of 1: 31.3 sq m (337 sq ft).
A1009 A406 North Circular
Practical Completion of the new terrace was achieved in March and the tenants have taken occupation and are currently fitting out their respective units. The units are of steel portal frame construction A10incorporating a modern and attractive combination of brickwork and
D ROA
ARG
A10 A1010
Ravenside Retail Park
cladding around glazed entrance features. Internally the units offer a minimum eaves heights of 5.5 m (18
ON
ARG
D ROA ON
A1010
A406 North Circular
A1055
ft), and comfortably accommodate mezzanine floors as The arrows depict the access route from the A406 North Circular in both directions.
Tenure The property is held Freehold.
East Bound
AD ULAR RO NORTH CIRC
West Bound
Tenant Trading The Mothercare store is their only representation in the immediate area, Wood Green and Enfield being the nearest other stores (4.8 km and 5.3 km respectively) and we understand that this is one of the top trading stores in their UK Portfolio. The Wickes store is also one of the top performing stores in the UK portfolio, clearly benefiting from the excellent strategic position on the A406 North Circular and a lack of decent competition in the area. Clearly it is not possible to obtain trading feedback for those tenants fitting out however based on the excellent performance of the two anchor tenants we would anticipate very successful trading when these stores open. The adjacency of a regional anchor in IKEA and a large Tesco Extra clearly underpins the location and trading.
11 Edmonton Ravenside Retail Park
This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds.
VE R RI
SERVICE YARD
LE E
CA
NA
L
CL RAVENSIDE
OSE
ARGON ROAD
Tenancies
Service charge
The property is currently let to two occupational
Whilst there is a service charge regime in place on the scheme
Budget 2009/2010
Budget 2008/2009 Actual 2007/2008
tenants with a further five Agreements for
given the significant changes that have taken place on the
Total
£63,681 (£0.49 psf )
£79,901
Lease in place, in accordance with the Tenancy
park in recent years, arguably the most relevant information
Schedule set out below. We have also set out the
is the Budget Forecast for the 2009-2010 financial year and
This forecast for the forthcoming financial year shows a 20.1%
relevant incentives for the more recent lettings.
we have set summary information for this period out below
decrease over the budget for the year ending 31st March 2009.
together with the previous two years:
More detailed information is available on request.
Property Tenant Trading As Term Lease Lease Next GIA Mezz Address Start Expiry Review (sq ft) (sq ft) (Unit)
Current Rent (£ pa)
Current Rent (£ psf)
1A Next Group Plc Next Home
£256,500
£28.50
10 yrs
25/03/09
11/08/19
12/08/14
9,000
8,400
£50,797
Comments
Reviewed to lower of Open Market Value or gearing to Consumer Price Index.
1B Argos Ltd Argos
15 yrs
09/03/09
08/03/24
09/03/14
10,000
10,000
£280,000
£28.00 Stepped rent (March 2012) to £30.00 psf. OM reviews are capped at 2.5% pa compound growth on passing rent. Mezzanine space is storage only.
1C Allied Carpets Properties Ltd Allied Carpets
15 yrs
25/12/08
24/12/23
25/12/13
7,500
6,000
£225,000
£30.00
1D
15 yrs
25/12/08
24/12/23
25/12/13
5,500
2,000
£166,950
£30.35
1E Maplin Electronics Ltd Maplin
15 yrs
16/03/09
15/03/24
16/03/14
5,500
–
£151,250
£27.50 Stepped rent (March 2011) to £30.00 psf (£165,000 pa).
2
20 yrs
07/02/07
06/02/27
07/12/12
60,550
3,157
£1,541,751
£24.80 The first floor space is valued at 50% of the OMV psf of the ground
Paul Simon (London) Ltd
Wickes Building Supplies Ltd
Paul Simon
Wickes
floor. Fixed uplift on 07/02/12 to £1,787,311 pa. 3
Childrens World Ltd Mothercare
25 yrs
24/06/88
23/06/13
24/06/08
30,107
10,000
£647,300
£21.50 The 2008 Rent Review is now outstanding. The rent stated is the anticipated settlement level. The current rent payable is £565,000 pa (£18.77 psf).
Advert.
Excited Limited N/A
3 yrs
01/06/08
31/05/11
–
–
–
£26,250
–
50% of this income is offset against Service Charge
Burger Van Andrea Lafave N/A
3 yrs
01/04/09
31/03/12
–
–
–
£15,000
– Licence relating to 2 car park spaces. 50% of this income is offset against Service Charge.
1. The vendor will make-up any shortfall in the initial annual income stream as a result of any rent free periods. 2. 50% of the income derived from the Advertising Board and Burger Van (non permanent trading units) is to be credited towards the service charge account under the terms of the Allied Carpets Properties lease. Consequently we have deducted this from the Total Annual Income figure.
128,157
39,557
£3,289,376
3. Next, Argos and Paul Simon have consent to pay their rents monthly under agreed side letters. 4. The floor areas set out for units 1A, 1B, 1C, 1D and 2 are ‘capped’ areas and are to be assumed at future reviews. Slightly larger areas for some of the units were recorded at Practical Completion and details of these are available on request – actual scheme total area – 128,551 sq ft.
Planning
Covenant Information
The scheme has seen significant change and redevelopment
We have set out below some recent account information together with Dun & Bradstreet ratings for the primary tenants:
alone Wickes, Courts and Mothercare units between 1988 and 2005. The original Wickes unit was positioned where the recently completed terrace currently stands, with Courts occupying the unit that Wickes now occupy (having relocated there in 2006). Full copies of the relevant planning consents are available on request though we have summarised the main conditions below: Units 1A-1E: ■■ Non food wide bulky goods planning consent allowing sale of DIY/hardware, furniture, furnishings, carpets, floor coverings, household textiles, motor vehicles and/ or cycle goods, electrical goods including computers. ■■ Minimum unit size of 510 sq m (5,489 sq ft) ■■ Total Gross Mezz. floor area of 2,575 sq m (27,717 sq ft), of which 1,599 sq m (17,211 sq ft) can be used for retail and 975 sq m (10,494 sq ft) for storage ■■ The Argos unit can be used as a Catalogue Showroom, no larger than 1,858 sq m (19,999 sq ft) of non bulky electrical items from the unit occupied by Maplin.
Tenant Date for Sales Tangible Total D&B accounts turnover net worth current assets rating
% of current income
Next Group Plc
26/01/2008 27/01/2007 28/06/2006
£158,600,000 £150,900,000 £130,800,000
£227,400,000 £188,200,000 £291,800,000
£1,812,600,000 5A2 £1,553,200,000 £1,336,900,000
8.1%
Argos Ltd
01/03/2008 03/03/2007 31/03/2006
£4,099,777,000 £3,726,054,000 £3,654,835,000
£1,381,659,000 £969,435,000 £903,168,000
£1,698,625,000 5A1 £1,673,478,000 £1,568,936,000
8.8%
Allied Carpets Properties Ltd
29/12/2007 30/12/2006 31/12/2005
£55,114,000 £53,015,000 £51,119,000
£23,089,000 £20,746,000 £18,581,000
£16,343,000 4A3 £13,443,000 £11,104,000
7.0%
Paul Simon (London) Ltd
31/05/2008 31/05/2007 31/05/2006
£35,062,883 £33,607,714 £20,047,043
£6,264,941 £5,889,795 £5,242,768
£5,109,842 2A2 £5,602,990 £4,502,213
5.2%
Maplin Electronics Ltd
29/12/2007 30/12/2006 31/12/2005
£179,778,000 £149,466,000 £128,285,000
£52,275,000 £36,855,000 £22,320,000
£78,312,000 5A1 £53,477,000 £35,094,000
4.7%
Wickes Building Supplies Ltd
29/12/2007 30/12/2006 31/12/2005
£929,171,000 £847,466,000 £964,414,000
£119,457,000 £82,822,000 £24,131,000
£364,264,000 5A1 £345,539,000 £353,949,000
48.5%
Childrens World Ltd
29/03/2008 31/03/2007 01/04/2006
- - -
£63,700 £63,700 £63,700
£63,700 5A3 £63,700 £63,700
17.7%
NB: the ‘% of current income figures’ are based on a total income figure of £3,184,501 pa so do not include advertising or burger van income.
Tenant Date for accounts
Revenue Total net D&B (£’000s) assets (£’000s) rating
Mothercare plc (Global Parent Company)
£676,800,000 £498,500,000
29/03/2008 31/03/2007
£198,000,000 £151,000,000
% of current income
5A1 N/A
■■ The consent also allows 511 sq m (5,500 sq ft) of floor space for sales of non bulky electrical
jewellery, watches, clocks, toys or sports goods,
newspapers, clothing & footwear, chemists goods,
items from the unit occupied by Maplin
stationary, leather goods and general fancy goods.
jewellery, watches, clocks, toys or sports goods,
Unit 2:
■■ Minimum unit size of 1,400 sq m (15,068 sq ft).
■■ Non food retail warehouse with the following further
Unit 3:
exclusions: alcoholic drinks, tobacco, books, magazines, newspapers, clothing & footwear, chemists goods,
■■ Non food retail warehouse with the following further exclusions: alcoholic drinks, tobacco, books, magazines,
stationary, leather goods and general fancy goods. ■■ Further allowance for Childrens World (Mothercare) to sell books, maternity wear, children’s clothes, shoes, baby goods, toys, educational crafts and party equipment.
13 Edmonton Ravenside Retail Park
in the last few years with the site previously comprising a stand
Asset Management Opportunities
Outstanding Rent Review
All the leases/Agreements for Lease in place offer minimum
The Childrens World rent review is outstanding from June
unexpired terms in excess of 15 years, with the exception
2008. The current passing rent of £565,000 pa equates to
of the Mothercare which is due to expire in June 2013. The
£18.77 psf and a settlement in the order of £647,300 pa
rent review from 2008 remains outstanding and given the
(£21.50 psf ) is anticipated. Following this we consider
performance of the store and its positioning within their
the property to be rack-rented as set out in the Tenancy
portfolio there is little doubt that Mothercare will seek to retain
Schedule on page 13. This would equate to a Net Total
representation here beyond the approaching lease expiry.
Annual Income from the park of circa £3,289,376.
Initial discussions have taken place in regard to regearing the
5,000 – 10,000 sq ft for use by another retailer. Indeed there is a
Environmental Considerations
historic consent allowing sub-division which has now expired.
Waterman undertook a Phase 1 Property Due Diligence
It is anticipated that given the age of the unit and
Assessment of the Ravenside Retail Park in April 2009
trading levels to date, Mothercare will look to refurbish
and confirmed that ‘the site is considered to represent
existing lease together with the possibility of a downsize of the unit to create separate accommodation in the order of
their store both internally and externally in the next
a low to medium risk with respect to contaminative
few years and this will certainly be the case should
liabilities or costs…. Furthermore the site currently used
a downsize take place in some form or other.
for commercial purposes, a less sensitive end-use, and is predominantly covered in hard standing, limiting the risk for site users to come into contact with any contamination. Consequently the site is considered suitable for current use.’ The Environmental Health Officer (EHO) for Enfield Council has confirmed that the site is not recorded as potentially contaminated land and is consequently not registered as such. A full copy of this report is available on request.
Proposal Offers are sought in the region of ÂŁ35,700,000, subject to contract and exclusive of VAT, for the Freehold interest in this property. Based on an annual income of ÂŁ3,303,126, assuming settlement of the outstanding Mothercare review and the vendor topping up the Maplin Electronics income to the level of the fixed uplift in 2011, this will show the following yield profile: 8.75%
Reversionary Yield Feb 2012 (Wickes guaranteed uplift)
9.40%
Reversionary Yield Mar 2012 (Argos guaranteed uplift)
9.45%
15 Edmonton Ravenside Retail Park
Initial Yield
Contacts For further information please contact: Patrick Knapman T: 020 7152 5019 F: 020 7152 5382 E: patrick.knapman@eur.cushwake.com
Justin Houlihan T: 020 7152 5670 F: 020 7152 5382 E: justin.houlihan@eur.cushwake.com
www.cushmanwakefield.com
Misrepresentation Act 1967 and Property Misdescriptions Act Cushman & Wakefield LLP for themselves and for vendors or lessors of this property whose agents they are, give notice that : 1 The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. 2 No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. 3 This property is offered subject to contract and, Floor areas, measurements or distances given are approximate and unless otherwise stated, all rents are quoted exclusive of VAT. 4 Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. 5 Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.
Edmonton | Ravenside Retail Park | May 09 | Ref: 105785