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LAKESIDERETAIL PARK

WELL-LET SECURE RETAIL WAREHOUSE INVESTMENTLAKESIDE RETAIL PARK | SCUNTHORPE | LINCOLNSHIRE | DN16 3UA

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INVESTMENT SUMMARY

� The property occupies a prominent location on the Lakeside

Retail Park, adjacent to a large format Morrissons supermarket

on the A18.

� The scheme comprises 4 well configured retail warehouse

units totalling 45,407 sq ft (4,218.45 sq m).

� Let to strong national retailers including DSG (Currys & PC

World), Harveys, Halfords and Pets at Home.

� AWULT of 11.2 to expiry and 8.9 to break(s).

� The property produces a total passing rent of £852,340 per

annum equivalent to £18.77 per sq ft overall.

� Open market rent reviews.

� Excellent mass from other adjacent retailers and a new large

scale housing development to the rear of the site.

� Freehold.

� Our clients are seeking offers in excess of £12,400,000

(Twelve Million Four Hundred Thousand Pounds), subject

to contract and exclusive of VAT. A purchase at this level

provides a net initial yield of 6.50% assuming purchasers

costs of 5.80%.


DEMOGRAPHICS

GALLAGHERRETAIL PARK

HIGH STREET(Town Centre)

NORTH LINCOLNSHIRESHOPPING PARK

LOCATIONScunthorpe is a substantial town in North

Lincolnshire. It is the administrative centre of the

North Lincolnshire Unitary Authority and has a

resident population of approximately 73,000.

Scunthorpe is predominantly an industrial town and

is the largest steel processing centre in the United

Kingdom. The town is located some 15 miles south

of the Humber Estuary and 25 miles north of

Lincoln. The town benefits from excellent transport

infrastructure being at the terminus of the M181 &

M180 Motorways which in turn provide fast links to

the M18 (22 miles), M62 (26 miles) and A1(M) (33

miles). Fast train services to the north and south

are provided via Doncaster and Wakefield to the

west. Robin Hood (26 miles) and Leeds Bradford

(68 miles) airports provide European and

transcontinental air services.

SITUATIONThe property is located some 2.5 miles south of

the town centre on the A18 Queensway which acts

as the town’s southern link road, connecting to the

west with the M181 and the M18 to the south

east. Lakeside Retail Park occupies a prominent

site which is clearly visible from the A18 and which

benefits from direct access shared by a large

format Morrissons supermarket.

RETAIL WAREHOUSINGIN SCUNTHORPEAside from the adjoining second phase of Lakeside

Retail Park the competing retail warehouse offer in

Scunthorpe comprises the following schemes. To

the west, adjacent to the M181 lies the 104,000 sq

ft Gallagher Retail Park, currently owned by

Orchard Street and with rents of up to £20.00 per

sq ft key tenants here include Toys r Us, B&Q, TK

Maxx, Next, Pizza Hut, McDonalds and KFC.

Opposite the Gallagher Retail Park lies the new

North Lincolnshire Shopping Park (rents of up to

£22.50 per sq ft) which is currently in a phased

process of opening. Built by Simons Developments

and funded by Cordea Savills Bishopsgate Fund,

key tenants at this 115,975 sq ft scheme include

Marks and Spencer, Debenhams, Boots, Costa

and Subway. This development will be fully trading

by the end of October 2014. Finally to the north of

the town on the A1077 northern ring road is

Scunthorpe Retail Park, owned by Threadneedle,

this 144,274 sq ft scheme has tenants including

Home Bargains, Matalan, Iceland, The Range,

Poundworld & Card Factory.

Total in store comparison retailexpenditure 2013 (£m)

Per capita retail warehouseexpenditure

Per capita in store comparisonexpenditure

Forecast growth

£404m

£463

£2,316

1.3%

£812m

£452

£2,314

1.7%

SCUNTHORPE RETAIL PMA AVERAGETOP 200 CENTRES

LAKESIDERETAIL PARK


Lakeside ParkwayLakeside Parkway

NEW HOME DEVELOPMENTApprox. 1,000 new houses

(Persimmon and Barratts Homes)

PHASE 1

PHASE 2

Lake

side

Par

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Lake

side

Par

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Lake

side

Par

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Lake

side

Par

kway Lakesi de Parkway

A18A18

PUBLIC HOUSEThe Anchor

DESCRIPTIONThe property was constructed in 1996 and

comprises a terrace of four purpose built retail

warehouse units. The building is of steel portal

framed construction beneath a series of pitched

roofs and with a combination of bricks and

composite panels to the elevations. Internally the

units have been fitted out to the tenant’s own

specification including the installation of mezzanine

floors in Units 2 & 4 (Halfords and Currys).

PLANNINGThe property has the benefit of an A1 bulky goods

consent.

TENUREFreehold.


UNIT TENANT GIA: SQ FT LEASE START LEASE EXPIRY REVIEW RENT RENT EPC

(SQ M) (BREAK) ANNUAL £PSF

1 Pets at Home 10,012 (930.14) 14/06/1996 13/06/2031 14/06/2016 £191,400 £19.12 D90

(14/06/2021)*

2 Halfords Limited 10,400 (966.19) 14/06/1996 13/06/2021 14/06/2016 £195,390 £18.79 C62

3 Steinhoff UK Limited 9,980 (927.17) 14/06/1996 13/06/2031 14/06/2016 £190,000 £19.04 D84

(t/a Harveys / Bensons)

4 DSG Retail Limited 15,015 (1,394.94) 14/06/1996 13/06/2021 14/06/2016 £275,550 £18.35 D85

(t/a Currys - PC World)

TOTAL(S) 45,407 (4,218.45) £852,340

TENANCY SCHEDULE

*Tenant required to give not less than 6 months written notice of intention to break lease. Our Clients have been in discussions with Pets at Home regarding their ongoing occupation and thetenant has offered to remove the break in return for a 12 month rent free incentive.


TENANTS COVENANTS

Year to 28/03/13 Year to 29/03/12 Year to 31/03/11

Sales £586,350,000 £536,410,000 £511,576,000

Pre-Tax Profit £77,707,000 £72,864,000 £75,174,000

Net Worth £382,537,000 £308,386,000 £229,976,000

Net Assets £336,227,000 £258,135,000 £166,784,000

The property is let to 4 quality covenants whose recent trading figures and D&B ratings are set out below:

Pets at Home Limited D&B Rating 5A1 Minimum Risk of Failure


Sales £803,100,000 £745,500,000 £752,300,000

Pre-Tax Profit £86,200,000 £75,500,000 £101,300,000

Net Worth £548,000,000 £481,400,000 £425,800,000

Net Assets £676,400,000 £594,000,000 £516,900,000

Halfords Limited D&B Rating 5A1 Minimum Risk of Failure


Sales £71,211,000 £69,803,000 £84,387,000

Pre-Tax Profit £4,658,000 £3,231,000 £429,000

Net Worth £13,247,000 £8,627,000 £5,391,000

Net Assets £7,715,000 £10,984,000 (£4,705,000)

Steinhoff UK Group Properties (t/a Harveys & Bensons D&B Rating 3A1 Minimum Risk of Failure


Sales £3,997,900,000 £3,743,700,000 £3,858,000,000

Pre-Tax Profit £62,300,000 £53,700,000 £18,400,000

Net Worth £301,800,000 £354,700,000 £327,600,000

Net Assets £639,000,000 £525,800,000 £414,100,000

DSG Retail Linmited (t/a Currys/PC World) D&B Rating 5A1 Minimum Risk of Failure

ESTATE SERVICECHARGEThe park runs a small service charge to cover the

cost of maintenance of the car park and other

common areas. The charge to each tenant was

equivalent to £0.83 per sq ft in the year 2013/14.

Full details are available on request.


PROPOSALWe are instructed to seek offers in excess of

£12,400,000 (Twelve Million Four Hundred

Thousand Pounds Sterling) to reflect an attractive

net initial yield of 6.50%, assuming purchasers’

costs of 5.80%, subject to contract and exclusive

of VAT.

VATThe property is elected for VAT and it is therefore

proposed that the sale will be undertaken by way

of a Transfer of a Going Concern (TOGC).

FURTHER INFORMATIONAccess to a data room containing all relevant

documents and supporting information is available

on request.

CONTACTFor further information or to arrange an

inspection please contact either of the

joint agents:

MISREPRESENTATION ACT 1967

Chapman Petrie and Hoddell Stotesbury Morgan forthemselves and for the vendors of the property whoseagents they are give notice that:

1 The particulars are set out as a general outline only forthe guidance of intending purchasers and do notconstitute part of an offer or contract;

2 All descriptions, dimensions, references to conditionand necessary permission for use and occupation, andother details are given without responsibility, and anyintending purchasers or tenants should not rely on themas statements or representations of fact but mustsatisfy themselves by inspection or otherwise as to thecorrectness of each of them;

3 No person in the employment of Chapman Petrie orHoddell Stotesbury Morgan has the authority to makeor give any representation or warranty whatever inrelation to this property;

4 Rents quoted in the above particulars may be subjectto VAT in addition;

Chapman Petrie and Hoddell Stotesbury will not be liable,in negligence or otherwise for any loss arising from theuse of these particulars.

Brochure design by ftadvertising.co.uk

Robert Mortimer

T 020 7518 9415 M 07810 833 227

E [email protected]

Tim Morgan

T 020 7629 2030 M 07775 654 795

E [email protected]


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