West Cornwall Shopping Park, Hayle TR27 5LX · A20 A2 A205 A3 4 A34 7 A3 A34 A5 A10 A505 A508 21 A13 7 A40 A418 A41 0 A413 A41 A43 A5 A509 A6 A1 2 A10 4 A12 A120 A130 A131 A131 A134

West CornWall shopping parkhaYle, tr27 5lX

P r i m e r e ta i l Wa r e h o u s e i n v e s t m e n t enter

investment Considerations

• Hayle is strategically located in Cornwall, lying on the A30 dual carriageway, situated 4 miles south east of St Ives and 8 miles north east of Penzance.

• The town is famed for its beautiful coastline and, as a result, is a popular tourist destination.

• Hayle benefits from a lack of competition from nearby towns; the nearest competing retail centre is Truro, 20 miles east.

• The property is situated in a prominent and accessible location, fronting the A30, the main arterial road through Cornwall.

• The property is the dominant retail scheme for Hayle and the surrounding areas and therefore draws from a large catchment area.

• Total floor space including mezzanines of 78,481 sq ft.

• Open A1 non-food consent and over 6,000 sq ft of food consent.

• Let to the 5A1 D&B rated covenants of Marks & Spencer, Boots, Next and Costa.

• Strong trading location for all of the tenants.

• Passing rents are from £25 per sq ft, with potential reversion particularly on Unit A (Next) in 2016.

• We are instructed to seek offers of £25,800,000 (twenty Five million and eight hundred thousand Pounds), subject to contract and exclusive of VAT, for the above property. This is based on an attractive net initial yield of 5.49% rising to an estimated yield of 5.68% in June 2016 (assuming purchaser’s costs at 5.80%).

West Cornwall shopping park, hayle tr27 5lX prime retail Warehouse investment

home investmentConsiderations

location Catchment and Demographics

retail in hayle andWest Cornwall shopping park

situation,Description and accommodation

tenure tenancyand erv

planning andtenants’ Covenants

vat, investment rationale, proposalContact Details

2

location

Hayle is located in the south west of Cornwall, approximately 4 miles south east of St Ives, 8 miles north east of Penzance and 70 miles south west of Plymouth.

The town benefits from excellent communication links, lying on the A30 dual carriageway, which runs through Cornwall, connecting Land’s End to Exeter and the M5.

Hayle has a mainline railway station with regular direct routes to a number of destinations, including Penzance (16 minutes) and Truro (26 minutes).

Newquay Airport is situated 28 miles north east of the town and serves a number of UK and European destinations. There are 3 daily flights from Newquay Airport to London Gatwick Airport, with a journey time of 1 hour 10 minutes.

HAYLE HAYLE

A30

A30

B330

1 LO

GGAN

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MARSH LN

MARSH LANE

NAN PUSKER RD

HATCH’S HILL

CARWIN RISE

GUILD

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VIADUCT HILL

B3301 HAY LE TR COMMERCIAL RD FORE ST

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KING GEORGE V MEMORIAL WALK

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SUBJECTPROPERTY

CHANNELTUNNELTERMINAL

SECOND SEVERNCROSSING OPEN

SUMMER 1996

LUTON

STANSTED

HEATHROW

GATWICK

SHOREHAM

Lydd/Ashford

CITY

BRISTOL

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A20

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A360

A420

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A1060

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A1307

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A1124

A272

A273

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A3123

A484 A476

A465

A40

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A283

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A272

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A22

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A33

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A34

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Woodbridge

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Burnham-on-Crouch

WestMersea

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New Romney

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Caterham

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Leatherhead

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Salisbury

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Weymouth

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Sidmouth

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EXETER

Torquay

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Harlow

Slough

Watford

Newport

Luton

Bedford

Amersham

HighWycombe

Oxford

Milton Keynes

Gloucester

Swansea

Fareham

Gosport

SOUTHAMPTON

BRISTOLCARDIFF

PLYMOUTH

LONDON









3

Catchment and Demographics

CACI predict the population within a 20 minute drive time of the subject property is 116,073 people. This is anticipated to increase by 4.62% by 2016.

The catchment population is boosted significantly by tourism, particularly in the summer months. In 2011, over 18 million people visited Cornwall, of which 91% were repeat visitors and over 57% had visited within the past 12 months. 96% of all visitors stayed for more than one night. St Ives was the most visited urban destination, with 37% of tourists having visited/intending to visit the town. Penzance was the fourth highest. Both towns are within close proximity to Hayle, accessed via the A30.

The social profile of those visitors to Cornwall is heavily skewed towards the upper social grades as demonstrated below:

season visited

socio economic group uk profile* total visitor spring summer autumn/Winter

ABC1 55% 69% 71% 71% 67%

C2DE 45% 30% 29% 29% 33%

Base: all visitors. *Source: National Readership Survey 2010

The total visitor related spend in Cornwall amounted to £1.86 billion in 2012. The total visitor related spend in the Penwith district, which includes Hayle, was £261 million in 2011, of which over £48 million was spent on shopping (source: Visit Cornwall).









4

retail in hayle and the surrounding areas

As a result of its accessibility and distance from competing retail centres (the nearest largest competing centre is Truro 20 miles east), West Cornwall Shopping Park draws from a large catchment area. As a consequence all of the retailers trade well here and prosper from the lack of competition.

At present, there is no other retail warehousing in Hayle and the town centre retail offer mainly comprises local retailers. The town centre is currently undergoing extensive regeneration starting in South Quay, where construction has recently commenced for a new 56,300 sq ft supermarket (pre-let to Asda), 30 homes, a waterfront restaurant and a retail unit on the quay.

In the nearby towns of Penzance, St Ives, Camborne and Redruth, the retail offer is also restricted, with few national retailers represented. It is considered the subject property offers the principal shopping facilities for these towns as well.

As a result of how successfully the retailers trade here, plans are currently being drawn up for a Phase II extension of West Cornwall Shopping Park, situated east of the scheme. Subject to planning, this would further increase the scheme’s dominance, cementing it as the principal shopping park in the south of Cornwall. Further details are available on request.

West Cornwall shopping Park

In 2010, retail consultants, WYG, undertook a household survey of those residing in the areas shown on the map below, which asked respondents whether they visit the West Cornwall Shopping Park. Visitation rates were very high across the entire study area. In total, 53% of all respondents indicated they visit the shopping park at least once a month.

20 MILES

12 MILES

St Ives

Penzance Marazion

56%

49%

61%

75%

47%

18%

48%

31%

Helston

Camborne

Hayle

Redruth

Catchment areas of those Who visit West Cornwall shopping Park at least once a month

visitation rates

At least once a week

At least once a month

At least once a quarter

At least once a year

Less than once a year

Never

Don’t know

1.1%19.5%

33%15.5%

6.1%

3.1%

21.8%

Footfall across the scheme totals 1.64 million per annum including 862,500 cars per annum. This averages at a circulation of 11.8 cars per space, per day.









5

West Cornwall shopping park

situation

The scheme is located in a strategic position fronting the A30 at its junction with the B301 which leads to Hayle town centre. The A30 allows easy access to the scheme from nearby towns including Penzance, Redruth and Camborne.

The scheme is accessed via a roundabout junction from Marsh Lane, which directly connects to the A30. On the opposite side of Marsh Lane is a standalone McDonald’s restaurant unit and in close proximity to this are Premier Inn and Travelodge hotels. To the south east of the scheme is Marsh Lane Industrial Estate. Adjacent to this is land which could become the site of West Cornwall Shopping Park Phase II, subject to planning.

Description and accommodation

The property comprises a modern purpose built shopping park, having been developed in 2006. The scheme totals 49,469 sq ft ground floor GIA, and is arranged in an “L” shaped terrace, with Marks & Spencer anchoring the park in 28,324 sq ft. Units occupied by Boots and Next sandwich the Marks & Spencer, and a 1,095 sq ft Costa Coffee unit is situated adjacent to Next.

Internally, all the units are fitted to the individual tenants’ specifications. The Marks & Spencer unit contains their full range offer, including clothing, furniture and food. Both the Marks & Spencer and Next units benefit from extensive mezzanine floors, and there is the ability to install a larger mezzanine within the Boots unit, subject to planning. The mezzanine floor space across the scheme totals 29,012 sq ft.

Car parking is located to the front of the units, providing 200 spaces, equating to a ratio of 1 : 247 sq ft.

The site extends to approximately 1.35 hectares (3.34 acres), giving a low site cover of 34%.









6

A30 TO PENZANCE


tenure

The site, delineated below, is held freehold.








7

tenancy

The property is let in accordance with the tenancy schedule below:

unit tenant gia (sq ft)

mezzanine(sq ft)

lease start

lease term

(years)

lease expiry Date

next rent review

Current rent (per annum)

Current rent

(per sq ft)

A Next plc 10,025 9,465 24/06/06 15 23/06/21 24/06/16 £250,625 £25.00

B Marks & Spencer plc 7,99017,943

05/12/06 20 04/12/26 25/12/11 £319,600 £40.00*

C/D Marks & Spencer plc 20,334 05/12/06 20 04/12/26 25/12/11 £569,373 £28.00*

E Boots the Chemist Ltd** 10,025 1,604 29/09/06 15 28/09/21 29/09/16 £303,750 £30.30

Pod Costa Coffee*** 1,095 - 18/06/07 10 17/06/17 - £55,865 £51.02

total 49,469 29,012 £1,499,213

* Outstanding rent review.** Tenant break at year 10. Boots have the benefit of an exclusivity covenant whilst in occupation.*** Subject to the unit remaining in A3 or retail coffee shop use, if 14% of turnover is greater than the basic rent, then the difference is paid as turnover rent. The current rent figure comprises of £53,900 pa base rent and £1,964.62 of turnover rent due from the period June 2012 to June 2013.

erv

The most recent set of rent reviews across the scheme were in 2011. There was an uplift at review on the Boots unit of 10,025 sq ft from £22.00 per sq ft to £30.30 per sq ft.

Within the Next lease, there was a stipulation that the 2011 review was to ‘the lower of open market rental value or £25.00 per sq ft’. As the Boots review demonstrated the rental value was circa £30.00 per sq ft, therefore the lower rent of £25.00 per sq ft was applied at the 2011 Next review. We consider at the 2016 review, the Next rent is reversionary to a minimum of £30.00 per sq ft.









8

tenants’ Covenants

The scheme benefits from being fully let to D&B rated 5A1 covenants. We set below the most recent company accounts for each tenant:

tenant Year ending sales turnover (000s)

pre tax profit/loss

(000s)

net Worth (000s)

D&B rating

Next plc 26/01/13 £3,562,800 £666,500 £230,900 5A1

28/01/12 £3,441,100 £579,500 £177,100

Marks & Spencer plc

31/03/12 £9,934,300 £658,000 £4,787,800 5A1

02/04/11 £9,740,300 £780,600 £4,767,400

Boots UK Ltd 31/03/12 £6,354,000 £240,000 £234,000 5A1

31/03/11 £6,372,000 £220,000 £217,000

Costa Coffee Ltd 01/03/12 £458,596 £62,624 £173,052 5A1

03/03/11 £377,284 £49,468 £127,214

Planning

Planning consent for the development was originally granted in January 2005, effectively granting consent for an open A1 non-food scheme, not to exceed 68,157 sq ft of total retail floor space (gross internal).

This was subsequently amended to allow:

• The retail sale of food of no more than 6,006 sq ft of ground floor sales area from Unit C/D.

• The sale of health and dietary foods, baby foods, sandwiches and snacks from a maximum of 5% of the sales floorspace from Unit E.

• Installation of mezzanine floor space in Units B, C/D increasing the total allowed floorspace across the scheme to a gross internal area of 72,958 sq ft. In addition, 6,135 sq ft of ancillary mezzanine floorspace was permitted not to be used for the retail sale of goods.

• Change of use from A1 to A3 for the Costa pod unit, allowing the sale of food and drink consumed on the premises as well as ancillary take away sales.









9

vat

The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction to be treated by way of a TOGC.

investment rationale

• Dominant and only shopping park for Cornwall.

• Furthermore there are no substantial existing or proposed retail developments in any of the nearby towns.

• Easily accessible fronting the A30 dual carriageway; the main route through Cornwall.

• Captive catchment enhanced by a significant tourist population.

• Over half of shoppers in a 20 mile catchment area visit at least once a month.

• Strong trading location for all of the tenants.

• This would be the only destination for prime retailers seeking representation in the area.

• Next rent is reversionary to circa £30.00 per sq ft in 2016, giving a reversionary yield of 5.68%.

• With the attractions of this scheme for existing and prospective new retailers, there should be the potential for good rental growth here in the medium term.

Proposal

We are instructed to seek offers of £25,800,000 (twenty Five million and eight hundred thousand Pounds), subject to contract and exclusive of VAT, for the above property. This is based on an attractive net initial yield of 5.49% rising to an estimated yield of 5.68% in June 2016 (assuming purchaser’s costs at 5.80%).

MISREPRESENTATION NOTICEWilkinson 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. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. September 2013. Designed and produced by Creativeworld Tel: 01282 858200

Contact Details

Paul WilkinsonT: 020 7317 3799M: 07770 585313E: [email protected]

Wilkinson WilliamsHeathcoat House20 Savile RowLondon W1S 3PR

www.wilkinsonwilliams.co.uk

ellie KirkbyT: 020 7317 3790M: 07764 241898E: [email protected]









10

mailto:[email protected]?subject=West Cornwall iBro Enquiry

http://www.wilkinsonwilliams.co.uk

mailto:[email protected]?subject=West Cornwall iBro Enquiry

Documents

West Cornwall Shopping Park, Hayle TR27 5LX · A20 A2 A205 A3 4 A34 7 A3 A34 A5 A10 A505 A508 21 A13 7 A40 A418 A41 0 A413 A41 A43 A5 A509 A6 A1 2 A10 4 A12 A120 A130 A131 A131 A134