southway shopping centre southway drive, plymouth …€¦ · axminster bridport ... plymouth is...

FREEHOLD SHOPPING CENTRE INVESTMENT OPPORTUNITY

ON BEHALF OF JOINT FIXED CHARGE RECEIVERS

SOUTHWAY SHOPPING CENTRESOUTHWAY DRIVE, PLYMOUTH

DEVON, PL6 6QR

SOUTHWAY SHOPPING CENTRESOUTHWAY DRIVE, PLYMOUTHDEVON, PL6 6QR

INVESTMENT CONSIDERATIONS• A busy neighbourhood scheme comprising

15 shops, a supermarket and a public library together with 14 maisonettes above.

• Situated within a popular residential suburb of Plymouth.

• Freehold.

• The centre is anchored by Co-op and other tenants include Lloyds Bank, Coral Racing, Martin Newsagents and Well Pharmacy.

• Current passing rent £281,725 pa.

• Successful scheme with an AWULT of 4.89 years to expiry and 2.95 years to break on the retail accommodation.

• Large car park comprising 100 spaces.

• Total site area of 1.85 acres (0.75 ha).

• Asset management opportunities with 10 maisonettes included in the commercial leases, potential to let the vacant units and further site development opportunities.

We are instructed to seek offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 11.8% with a potential reversion of 14.3% after costs of 6.33%.

SOUTHWAY SHOPPING CENTRE SOUTHWAY DRIVE, PLYMOUTH DEVON, PL6 6QR


A377

A395

A390

A380

A385

A386

A386

A361A358

A303

A303

A388

A38

A38

A39

A30A35

A37

A37

A39

A30

M5

M5

EXETER■

Torquay■

TAUNTON■

BRIDGWATER■

Burnham-0n-Sea■

YEOVIL■

Exmouth■

Sidmouth■

■ Teignmouth

Tiverton■

Seaton■

Honiton■ Axminster

■

Bridport■

Ilminster■

Chedder■

Wells■

Minehead■

Lynton■

Ilfracombe■

Bideford■

Bude■

GreatTorrington

■

Barnstable■

Tavistock■

Bodmin■

Saltash■

Yelverton■

Ivybridge■

Launceston■

NewtonAbbot

■

PLYMOUTHBrixham

■

Kingsbridge■

Dartmouth■

Dartmoor National Park

Exmoor National Park

Clittaford Road Clittaford Road

Clittaford Road

Clittaford Road

Clittaford Road

Southway Drive

Southway Drive

Southway Drive

Southway Drive Southway Drive

Longstone Avenue

Longstone Avenue

Goodwin Avenue

Goodwin Avenue

Flam

borough R

oad

Rockfield Avenue

Inchkeith Road

Inchkeith R

oadAlderney Road

Kinnaird Crescent

Langley Crescent

Langley Crescent

Pendeen C

rescent

Pendeen Crescent

Pen

dee

n C

resc

ent

Skerries R

oad

GOODWINPARK

LOCATIONPlymouth is one of the largest commercial centres in the South West of England and is located within the county of Devon, 80 km (50 miles) south west of Exeter, 193 km (120 miles) south west of Bristol and 345 km (215 miles) from Central London.

The town has excellent communication links with the A38 Devon Expressway providing direct and easy access to Exeter and the M5 motorway. Driving time from London is approximately four and a half hours.

Plymouth is served by First Great Western, providing direct rail access to London Paddington (3 hours 15 minutes), Bristol Temple Meads (2 hours) and other South West regional centres.

The city is also classed as a major port offering both passenger and vehicle ferry services currently operated by Brittany Ferries.


SITUATIONThe property occupies a prominent corner within the residential suburb of Southway, 8km (5 miles) north of Plymouth city centre.

The property can be accessed both from Southway Drive and Flamborough Road and lies approximately 0.5km west from the A386 Tavistock Road, which in turn links with the A38 Devon Expressway.

Aldi is preparing plans for a new supermarket across from the subject property on the other side of Flamborough Road. The proposal is for the construction of a new Aldi food store with 103 customer parking spaces. Aldi’s investment in the area will improve Southway’s retail offering and the subject property will benefit from increasing numbers of shoppers being attracted by Aldi’s presence.

DEMOGRAPHICSPlymouth has a primary catchment area of 471,000 and an estimated shopping population of 359,000, which ranks the city 21st in the UK on this measure.

The city is extremely dominant within its catchment, due to the distance to competing retail centres and it is ranked 1st in the PMA Competition Index (i.e. it has the least competition of any retail centre in the UK).

Consumer spending in Plymouth is aided by tourism and its student population. In 2013 “Destination Plymouth” estimated that 5.5 million people visit Plymouth annually, spending £314 million. In addition Plymouth has a student population of approximately 26,000 which adds to the city’s retail economy annually.

DESCRIPTIONThe property was constructed in the late 1960s and comprises a neighbourhood shopping centre with a substantial car park which is strategically located to serve the densely populated surrounding residential areas.

The centre comprises a supermarket and 15 shops arranged on ground floor with 14 maisonettes arranged on the first and second floors.

There is a public library above 3 of the shop units which has been sold off on a long lease.

TOTAL SITE AREAThe property has a total site area of 1.85 acres (0.75 ha).

TENUREFreehold. 116.4m

114.0m

LB

TCB

SOUTHWAY DRIVE

268

280

31

2

258

8

43

284

270

33

PCs

355353 359

365325

327

321

361

Clinic ESS

Shelters

39

109.1m

Posts

INC

HK

EIT

H R

OA

D

FLA

MB

OR

OU

GH

RO

AD

Car Park

62

333

49

to

69

42

70

64

335

The Church

373

48to

Holy Spirit

387

40

46

56

59

Surgery

Library

66

44

56

389351

375337

331

385347

371

367

379341

349

369329

339

377

383345

381343

of the

PO

Shelter

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2016. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1250

© Crown Copyright, ES 100004106. For identification purposes only.

DEVELOPMENT POTENTIALOwing to the large site area and the current low site coverage, there is the potential to increase the density of buildings on the site. Alternatively, a cleared site may suit a much larger development including alternative uses. All the above is subject to the necessary planning consents (Plymouth City Council – www.plymouth.gov.uk)


TENANCY SCHEDULE

Unit Tenant Use Area (sqm)

Area (sqft)

Lease Start Next Review/ Reversion

Lease End (Lease Break)

Current Rent pa

ERV Comments

321 Vacant Retail 55.6 599 £12,200

323 M Johnson Retail 55.4 597 20/06/2011 19/06/2016 19/06/2021 £12,700 £12,700 Tenants option to determine not exercised. Internal Repairing with contribution clause.

325 and 327, 365 and 367

Martin the Newsagent Ltd Retail/Residential 120.3 1,294 24/06/2013 23/06/2018 23/06/2023 (23/06/2018)

£28,400 £28,400 Tenants option to determine. Repairing plus service charge.

329 Kishor GC Retail 56.7 610(1) 08/10/2012 08/10/2017 07/10/2027 (08/10/2017) (08/10/2022)

£12,850 £12,850 Rent review every 5 years. Tenants option to determine. Internal Repairing plus service charge.

331 and 371 Bestway National Chemists Ltd Retail/Residential 58.9 634 29/09/2014 29/09/2019 29/09/2024 (29/09/2019)

£14,600 £14,600 Tenants option to determine. FR&I

333 and 335 Vacant Retail £3,000 Units not inspected by Allsop.

337 and 375 Ivor Dewdney's Pasties Ltd Retail/Residential 58.6 630 13/12/2012 12/12/2017 12/12/2017 £14,000 £14,000 Internal repairing plus service charge.

339 and 377 Lloyds Bank Plc Retail/Residential 58.3 627 24/06/2013 23/06/2018 23/06/2018 £14,600 £14,600 Internal repairing plus service charge.

341 and 379 Coral Racing Ltd Retail/Residential 63.6 685 24/06/2013 23/06/2018 23/06/2023 (23/06/2018)

£14,500 £14,500 FR&I

343 and 381 Friary Mill Bakery Ltd Retail/Residential 57.2 615 06/04/2011 05/04/2021 05/04/2026 (06/04/2021)

£16,600 £16,600 Tenants option to determine. Internal Repairing, Schedule of condition, plus service charge.

345 and 383 P Chan Retail/Residential 56.0 603 01/09/2012 31/08/2017 31/08/2022 (31/08/2017)


347 and 385 M Law Retail/Residential 60.5 652 15/02/2011 14/02/2021 14/02/2031 £16,000 £16,000 Rent review every 5 years. FR&I

349, 351, 387, 389 Co-Operative Stores Ltd Ground Floor Shop Upper parts Ancillary/Residential

782.0 68.5

8,418 737

25/12/2004 24/12/2019 24/12/2019 £106,825 £106,825 FR&I Lease includes maisonette (No. 387) Guarantee from Co-operative Group Food Ltd.

353 Vacant Retail 79.9 860(1) £13,000

355 and 357 The British Red Cross Society Retail 75.0 808 25/03/2015 25/03/2020 24/03/2025 (25/03/2020)


359 Plymouth City CouncilFirst Floor Library Extension to Library

25/12/1969 10/03/2005

24/12/1994 24/12/2094

24/12/1994 24/12/2094

Peppercorn Peppercorn

359a Vacant Retail 117.2 1,262(1) £20,000

373 Vacant Residential £3,900


363 Individual ResidentialAST from

28/01/2015£3,900 £3,900 No copy of the tenancy held.


Total 973.2 10,476 £281,725 £341,625

*Areas are of commercial accommodation only. (1) Areas taken from building survey.

COVENANTMcColl’s was founded in 1973 and acquired the Martin’s chain of newsagents in 1998. McColl’s operate in the newsagent sector under the Martin brand name and have over 500 UK stores. The ultimate holding company of Martins the Newsagent Ltd is McColl’s Retail Group plc which in November 2015 reported a turnover of £932,227,000, a pre-tax profit of £21,111,000 and a total net worth of -£19,951,000.

The Bestway Group acquired The Co-operative Group’s pharmacy business in 2014 for £620 million rebranding all their sites as Well. It is currently the third largest pharmacy business in the UK with over 770 branches across the UK. Bestway National Chemists Ltd in July 2015 reported a turnover of £346,074,000, a pre-tax profit of £14,107,000 and a total net worth of -£29,854,000.

Ivor Dewdney was founded in 1935 and has established itself as a leading pasty retailer in the Plymouth area. It currently trades from 9 locations. Ivor Dewdney’s Pasties Ltd in March 2015 reported a total net worth of £1,703,784.

Lloyds Bank was founded in June 1765 and is the leading British retail and commercial bank with nearly 1,300 branches across England and Wales. The bank is the principal subsidiary of Lloyds Banking Group with over 11 million customers. Lloyds Bank Plc in December 2015 reported a turnover of £31,031,000,000, a pre-tax profit of £1,372,000,000 and a total net worth of £43,108,000.

Coral is part of the Gala Coral Group with over 1,700 betting shops across the UK. Coral Racing Ltd in September 2015 reported a turnover of £667,786,000, a pre-tax profit of £81,106,000 and a total net worth of £264,149,000.

Friary Mill was established in 1988 and has grown to trade from ten shops and bakeries across Plymouth. Friary Mill Bakery Ltd in January 2015 reported a total net worth of £452,614.

The Co-operative Group acquired Somerfields in 2009 helping it to become the fifth largest food retailer in the UK trading from over 2,800 stores. The Co-operative Group Food Ltd in January 2016 reported a turnover of £6,475,500,000, a pre-tax loss of £429 and a total net worth of £1,940,000,000.


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. 08.16

Jonathan Butcher020 7543 [email protected]

Liam Stray020 7543 [email protected]

For further information or to make arrangements to viewing please contact:

www.allsop.co.uk

On behalf of Joint Fixed Charge ReceiversThis property is being marketed for sale on behalf of Joint Fixed Charge Receivers and therefore no warranties or guarantees in any respect, including VAT, can be given. The information in these particulars has been provided by the Joint Fixed Charge Receivers to the best of their knowledge, but the purchaser must rely solely on their own enquiries. The Fixed Charge Receivers are not bound to accept the highest or any offer and are acting in respect of the sale without personal liability.

Alex Butler020 7543 [email protected]

PROPOSALWe are instructed to seek offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 11.8% with a potential reversion of 14.3% after costs of 6.33%.

AWULT4.89 years to expiry and 2.95 years to break.

EPCAvailable upon request.

VATThe property is elected for VAT.

SERVICE CHARGEFor the year ended 31/03/2016 the service charge for the centre totalled £40,330.

Further information is available in the legal pack.

southway shopping centre southway drive, plymouth …€¦ · axminster bridport ... plymouth is...

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