ALDI, TARVIN ROAD BOUGHTON, CHESTER, CHESHIRE CH3 5NDdocs.novaloca.com/26_8983_635730677144910000.pdf · ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

ALDI, TARVIN ROAD BOUGHTON, CHESTER, CHESHIRE CH3 5ND

PRIME FOOD STORE INVESTMENT OPPORTUNITY

gva.co.uk/8983

ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY

EXECUTIVE SUMMARY

- Opportunity to purchase a supermarket investment within the affluent and historic cathedral City of Chester

- Limited supply for additional retail schemes within the city which was reflected by ALDI being prepared to take overriding lease to secure the property and then sublet to Home Bargains and Carpet Factory

- The site obtained substantial other interest from food operators and residential developers when last marketed

- Let to ALDI (5A1) for 20 years from 2 September 2013 at a current rent of £485,000 pa

- Current rent equates to only £12.70 /sq ft

- Fixed five yearly rent reviews based upon 2.5% pa uplifts with the next uplift September 2018

- Offers in excess of £9,650,000 (nine million, six hundred and fifty thousand pounds) which reflects a net initial yield of 4.75%, rising to 5.37% in September 2018 and 6.881% by September 2028, net of costs at 5.8%


1115

61

1021A

121

115

41

10 14M56

M53

M6

M6

M6

M61

M66

M58

M57

M60

M62

M62

12

11

11

10

7

10

5

23

4

4 45

5

6

6

7

1

3

9

9

1011

14

1617

19

19

20

20

20

21

22

23

24

25

26

27

19

18

17

16

8 7 6

65

54

3 3

3

3

2

3

2

2 2

12

98

765

3

2

1

M56

BOLTONBURY

Radcliffe

WalkdenWardley

SALFORDEccles

Horwich

Ormskirk

MANCHESTER

Widnes

Ellesmere Port

Birkenhead

Bootle

Speke

ST HELENS

Congleton

Nantwich

NORTHWICHNORTHWICH

LIVERPOOL

Flint

River Mersey LiverpoolJohn Lennon

Airport

ManchesterAirport

CHESTER

Prestatyn

A5117

A55

A41

A41

A557

A533

A533

A562

A5058

A580

A580

A58

A6

A58

A6010

A5300

A56

A56

A556A537

A537

A34

A34

A34

A34A534A530A51

A534

A500

A54

A41

A51

A54

A540

A553

A49

A49

A556

A494

A494

A548

A50

LOCATION

Chester is an attractive and affluent historical cathedral city, an important tourist destination and the administrative centre for the county of Cheshire. Chester is located approximately 45 miles (72km) south west of Manchester and 13 miles (21 km) south of Liverpool.

It is one of the major retailing centres in the North West ranked 27th in the UK having an estimated catchment of 326,000 which increases with the influx of tourists which are estimated at over 8 million each year.

The city’s major attractions include shopping, Chester Cathedral, Roman archaeology, Chester Zoo (currently having a £300m extension), the racecourse, the castle and the historic Rows and Amphitheatre.

The District of Chester has a very affluent population, well above the national average in terms of wealth. Over 80% of the City’s working population are involved in the service sector with major employers being Lloyds Bank, HSBC, Marks and Spencers and MBNA Europe Bank.

Chester benefits from excellent road communication links, with the M53 Motorway accessed via junction 12, situated approximately 3 miles (5 km) to the east. In turn the M53 provides direct access to the Wirral to the north west, to the M56 Motorway and the national Motorway network via the M6. In addition, the A55 (coast road) provides access to North Wales.

Manchester International Airport is situated approximately 30 miles (48 km) to the east and Liverpool’s John Lennon Airport situated 24 miles (39 km) to the north, both service the City. Rail access is via Crewe to London Euston (2 hours 20 minutes), Liverpool Lime Street (45 minutes) and Manchester Oxford Road (1 hour 10 minutes).

THE PROPERTY

Belfast

Dublin

Glasgow Edinburgh

Leeds

Newcastle

LondonBristol

Liverpool

Cardiff

ENGLAND

IRELAND

NORTHERNIRELAND

WALES

Birmingham

Manchester

CHESTER

SCOTLAND


SITUATION

The property is situated in the densely populated residential suburb of Boughton, approximately 1.5 miles east of the City centre. The property is accessed directly off the A51 which is the main arterial route out of the city connecting to the A41 and A55. In turn the A55 then connects with the M53 and M56 motorways.

BRIDGE ST

Castle Drive

ST M

AR

TIN’S

WAY

N

ICH

OLA

S S

T

GROS

VENO

R

RD

GRO

SVEN

OR RD

PEPPER ST LIT. S

T JOHN ST

ST OSWALD’S WAY

A483

P

WATERGATE ST EASTGATE ST

City Wall

City Walls Road

Nuns Road

Cathedral

CountyHall

R I VE

R

DE

E

Grosvenor Park

Amphitheater

Grosvenor Bridge

Old Dee Bridge

CHESTERGENERALSTATION

CityWalls

A483 Wrexham 12mls

Grey Friars

Black Friars

A5116 Birkenhead 15mls

NORTHGATE ST

A51 BOUGHTON

A5115 CHRISTLETON ROAD

B5130 SANDY LANE

CITY

ROA

D

A548 NEW CRANE STREET

BRIDGE ST

LOW

ER

CASTLE ST

HOOLE W

AY

Roodee

ChesterRacecourse

TARVIN ROAD

A546 Queensferry 6mls

BLACK DIAMOND ST.

CHESTERBOUGHTON

THE PROPERTY

To Ellesmere PortTo Manchester

To North Wales

A56 HOOLE WAY

N WALES EXPRESSWAY A55

N WALES EXPRESSWAY A55

N WALES EX

PRES

SWAY

A

55

A484

A550

A548

S EALAND ROAD

A548 SEALAND ROAD

A5104 C HESTER ROAD

WR

EXH

AM R

OAD

A483

A55

0

A540 PARKGATE ROAD

A5116

A548

B5129

MANOR LN

B5125

B5 125

CHESTER ROAD B5129Chester

Chester

Bache

Hawarden

Buckley

Hawarden Bridge

Shotton

QueensferryConnah’sQuay

Hawarden

Broughton

M56

M53

11

12

15

A51 TARVIN ROADA5115 WHITCHURCH ROAD

A41 RING ROA D

A41 RING ROAD

CHESTER

THE PROPERTY


ACCOMMODATION

The property extends to approximately 38,178 sq ft (3,547 sq m). Out of this total area approximately 8,081 sq ft is sublet to Baycrown Ltd, trading as The Carpet Factory and 12,000 to TJ Morris trading as Home Bargains.


DESCRIPTION

The property comprises a detached retail warehouse unit constructed in the mid 1990’s on an island site of 3.6 acres (1.46 hectares).

The property which was formally occupied by Focus was refurbished in 2013. The property now creates effectively three units, the supermarket occupied by ALDI and 2 other retail warehouse units occupied by Home Bargains and the Carpet Factory.

The property is of a steel portal frame construction under a pitched roof with external part brick and partmetal clad elevations. The unit benefits from approximately 196 car spaces providing an excellent ratio 1:195 sq ft.


TENURE

Freehold.

TENANCY

The property has been let on an overriding lease to Aldi Stores Limited for a term of 20 years on FRI term from 2 September 2013 subject to five-yearly, upwards-only rent reviews based upon 2.5% per annum compounded.

The current rent passing is £485,000 per annum equating to a low base of £12.70 per sq ft.

The fixed rental uplifts are as follows:

Date Rent Rent Per Sq Ft

Current £485,000 £12.70

Sept 2018 £548,729 £14.37

Sept 2023 £620,832 £16.26

Sept 2028 £702,409 £18.40

T J Morris Limited trading as Home Bargains have sublet approximately 12,000 sq ft of the total floor space from Aldi Stores Limited on a 20 year sublease at an initial rent of £156,000 pa subject to obtaining a satisfactory planning consent. Rent reviews are five yearly to 2% pa compound.

A further part of the property (approximately 8,081 sq ft) has been sub let to Baycrown Ltd, trading as The Carpet Factory on FRI terms for 15 years from 25 March 2010 at £72,000 pa subject to five yearly rent reviews.

PLANNING

Planning consent was granted on 5th July 2013. The permission grants an open A1 discount retail food store use on the area to be occupied by Aldi with a maximum 15% of net sales floorspace for comparison goods. The area occupied by Home Bargains has the benefit of non food class A1 use

with a maximum 30% of floor area for convenience goods and 25% for food and drink products. The area occupied by The Carpet Factory has a restriction to electrical goods, home furnishings and motor accessories.


COVENANT INFORMATION

Aldi is a leading global discount supermarket chain established in Germany in 1913 with over 9000 stores in 18 countries with an estimated combined turnover in excess of €50 billion. Further information on the company can be found at www.aldi.com.

Aldi Stores Ltd is a private limited company incorporated in 1988. Following the opening of its first supermarket in 1990 in the UK the company now trades from over 500 stores and has ambitious growth programme in the UK looking to have over 1000 stores by 2021.

A summary overview of their latest filed accounts is as follows:

31/12/13 £ (000’s)

31/12/12 £ (000’s)

31/12/11 £ (000’s)

Sales Turnover 5,271,852,605 3,885,277,530 2,762,561,383

Profit/(Loss) Before Taxes

260,893,847 157,900,416 70,518,793

Tangible Net Worth

1,817,950,230 1,607,814,660 1,510,238,658

The company currently have a D&B rating of 5A1 which represents a minimum risk of business failure.


EPC

The property has an EPC rating of B. A full copy can be downloaded at gva.co.uk/8983

VAT

The property is elected for VAT.

FURTHER INFORMATION

Should you wish to inspect the property or require additional information, please contact:

PROPOSAL

We are instructed to seek offers in excess of £9,650,000 (nine million, six hundred and fifty thousand pound) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level would show the following yield profile:

Initial 4.75%

September 2018 5.37%



This shows an equivalent yield of 6.07% and a true equivalent of 6.29%. Net of costs at 5.8%.

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. July 2015.

RB&Co 0161 833 0555. www.richardbarber.co.uk

David Winterbottom0161 956 [email protected]

Gurminder Manak0161 956 [email protected]

Bilfinger GVANorfolk House7 Norfolk StreetManchesterM2 1DW

/8983

Documents

ALDI, TARVIN ROAD BOUGHTON, CHESTER, CHESHIRE CH3 5NDdocs.novaloca.com/26_8983_635730677144910000.pdf · ALDI, TARVIN ROAD BOUGHTON, CHESTER, CH3 5ND PRIME FOOD STORE INVESTMENT OPPORTUNITY