PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY
ROM VALLEY WAYRETAIL PARK
ROMFORD RM7 0AE
■ Romford is a town located in Greater London, within the London Borough of Havering. The town is located approximately 16 miles north east of Central London and 18 miles south west of Chelmsford.
■ Within a 10 minute drive time of the subject property, CACI estimate thepopulation to be 319,270. This increases to 831,969 within the 20 minute drive time catchment.
■ The property is situated just south of the town centre and shares a road junctionwith the access to Queen’s Hospital. There is also a Morrisons/Residentialdevelopment diagonally opposite.
■ The subject property consists of five units, totalling 67,884 ft² across four retailwarehouse units and a restaurant.
■ The property is fully let on five FRI leases and currently produces a total rent of £1,324,829 pa, reflecting £17.29 – £23.38 per ft² on the retail warehousespace and £23.69 per ft² on the restaurant.
■ The retail park has a weighted average unexpired term of 11.2 years to expiry and 10.6 years to breaks.
■ We are instructed to seek offers in excess of £20,030,000 (Twenty Million andThirty Thousand Pounds) for this freehold interest, subject to contract. A purchase at this level would reflect a net initial yield of 6.25%, assuming purchaser’s costs of 5.80%.
INVESTMENT SUMMARY
ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE01
PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 02
QUEEN’S HOSPITAL
HOMEBASE
TOWN CENTRE
SNOW AND ROCK
THE BREWERY
MORRISONS/RESIDEVELOPMENT
RESIDENTIAL DEVELOPMENT SITE
ROM VALLEY WAYROM VALLEY WAY
RETAIL PARK
A13T
A13T
A501
A205
A100
A102
A202A282
A127
A414
A406
A406
A406
A503
A5
A3
A2
A2
A1
A10
A10
A10
A12
A12
A12
A12
A11
A20
A20
A23
A1203A1020
28
29
30
31
26
1A
1B
A205
27/6
1
2
M25
M25
M25
M11 M25
Dartford
Dagenham
Rainham
Belvedere Thur
LondonCity Airport
Bexleyheath
Sidcup
Bromley
Poplar
EastDulwich
StratfordBarking
Ilford
Woodford
Romford
Upminster
Enfield
LONDON
Chigwell
Loughton
EastBarnet
ROM VALLEY WAY RETAIL PARK
A125
ST EDWARDS W
A118
MAIN ROAD
A
LONDON ROAD
ST
ED
WA
RD
S W
WATE
RLO
O R
D
A1251 T
HURLOE
GD
S
M
ER
CU
RY
GD
S
A124
RUSH GREEN ROAD HORNCHURCH ROAD
ROM
VALLEY WAY
MA
VN
EY
RO
AD
MAVNEY ROAD
CO
LLIER
RO
W L
ANE
B175
PETTITS LANE N
PETT
ITS LA
NE
OW LN
O
LDCHURCH RD
A12
A12
Romford
Romford is a town located in Greater London, within the London Borough of Havering. The town is locatedapproximately 16 miles north east of Central London and18 miles south west of Chelmsford.
The town benefits from excellent road and transport communications. The A12 runs to the north of the town, providing a direct route to central London and Chelmsford. Romford also benefits from easy access to the M25 at Junction 28, located 5 miles to the north east of the town.
Romford is easily accessible via train. Greater Anglia trains provide services from Romford to London LiverpoolStreet in a journey time of approximately 25 minutes.
London City Airport is located 10 miles to the south west of Romford. London City airport provides flights to a number of European destinations, serving approximately 3.3 million passengers a year.
Rom Valley Way Retail Park is located in a prominentposition on the A125 (Rom Valley Way), adjacent to a40,097 ft2 Homebase and a 8,500 ft2 Snow + Rock unit.The property is opposite Queen’s Hospital and afoodstore / residential development site.
The retail park is within walking distance from the towncentre, with the train station being located 800 metres to the north and the main high street approximately onekilometre to the north.
LOCATION
SITUATION
ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE03
Within a 10 minute drive time of the subject property, CACI estimate the population to be 319,270. This increases to 831,969 within the 20 minute drive time catchment. The population is forecast to grow as follows:
Within a 20 minute drive time, gross family income is above average, with 74.5% ofhouseholds earning over £30,000 per annum, compared to a national average of 61.9% (CACI).
DEMOGRAPHICS
DESCRIPTION
DRIVETIME FROM ROM VALLEY WAY RETAIL PARK
5MINUTES
10MINUTES
15MINUTES
20MINUTES
30MINUTES
GBAVERAGE
5 year Population Growth 2014-2019 5.8% 6.9% 7.3% 7.2% 5.7% 2.8%
10 year Population Growth 2014-2024 11.2% 13.2% 14.0% 13.6% 11.1% 5.1%
UNIT TENANTAREA
M² FT²
1 MOTHERCARE UK LIMITED 2,772.5 29,843
2 CARPETRIGHT PLC 1,079.9 11,624
3 PIZZA HUT (UK) LIMITED 309.8 3,335
4 B&M RETAIL LTD 1,208.8 13,011
5 PETS AT HOME LIMITED 935.6 10,071
TOTAL 6,306.6 67,884
The subject property consists of five units, built over three phases and totals 67,884 ft² of gross internal retail and restaurant floor space. Phase one was built in 1988 and includedunits 1 and 2, phase two was built in 1998 and included units 4 and 5, and phase threeinvolved construction of the Pizza Hut unit in 2005.
B&M are currently fitting out unit 4 and are looking to open for Christmas trading.
The site comprises approximately 4.29 acres (1.73 ha) giving a site cover of 36.3%.
The retail park benefits from 260 car parking spaces, which equates to a car parking ratio of 1:261 ft2.
PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 04
A118 M
AIN R
OAD
A125 NO
RTH ST
A125 THURLOE
GD
NS
A125 ROM
VALLEY WAY
A124 RUSH GREEN ROAD HORNCHURCH ROAD
L ONDON ROAD
WATE
RLO
O RD
OLD CHURCH RO AD S
OU
TH
ST
BRENTW OOD ROAD
EASTERN RD
CARLTON RD
VICTORIA ROAD
HEATH PARK RD
FAIRHOLME AVE
BA
LGO
RES LN
SLEWINS LN
UP
PR
BR
EN
TW
OO
D R
OA
D
OSBORNE ROAD
CRANHAM ROADRomford
ROM VALLEY WAY RETAIL PARK
8
9
7
6
12
4
5
3
A12RETAIL WAREHOUSE PROVISION IN ROMFORD:Retail warehouse supply in and around the town is estimated at 1.12m ft² (Trevor Wood).
The map opposite illustrates the main retail warehousing schemes in Romford:
■ Rom Valley Way cluster - Immediately to the north of the subject property there is a Homebase and Snow & Rock which total 48,500 ft² of retail warehousing. Rents are £18.35 and £18.25 per ft² respectively.
■ The Brewery - This mixed use retail and leisure development totals some 530,000 sq ft. The retail element benefits from an open A1 non food consent.Occupiers on the scheme include TK Maxx, Hobbycraft, Gap, JD Sports, HomeSense and Boots and it is anchored by a Sainsbury’s foodstore. Rents on 10,000 ft²units are around £30 per ft².
■ Eastern Avenue Retail Park – This bulky goods park comprises some 110,000 sq ft with occupiers including Currys, PC World, Dunelm, CarphoneWarehouse and Poundstretcher. Top rents for the retail warehousing is in the region of £23.00 per ft².
■ Matalan, North Street - This is a stand alone unit on the north side of the town centrecomprising 39,640 ft² let at £16 per ft².
■ Gallows Corner Retail Park - This 92,000 sq ft bulky goods scheme includes Halfords,Furniture Village, DFS, Magnet, Harveys, Next and Argos Extra. Top rents are around£35 per ft².
■ B&Q Warehouse, Gallows Corner – This property sits diagonally opposite GallowsCorner Retail Park on the A12 and comprises 72,000 ft². The passing rent is £18.50 per ft².
■ B&Q Warehouse, Roneo Corner – Just to the south of the subject property onHornchurch Road, and adjacent to a Tesco Extra, this is a standalone B&QWarehouse of 102,000 ft², with a passing rent of £18.25 per ft².
ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE05
1
2
3
Dunelm
Eastern Avenue Retail Park
Matalan
4
5
6
Gallows Corner Retail Park
Snow + Rock
The Brewery
7
8
9
Homebase
B&Q Warehouse
B&Q Warehouse
The Seedbed Centre
The Seedbed Centre
El Sub Sta
River Rom
Wei
r
THE MALTI
El Sub Sta
PLANNINGUnits 1 and 2 (Mothercare and Carpetright):
These premises shall not be used other than for the retail sale of the following:■ Home improvement products: “Do It Yourself” goods■ Hardware and plumbing, building supplies■ Furniture, furnishings■ Carpets and floor coverings■ Electrical goods■ Motor accessories■ Garden and associated products and ancillary items■ and/or the occupation by Children’s World (now Mothercare) for the sale of any
combination of maternity wear, baby goods, children’s shoes and clothes, toys andeducational crafts, books, party equipment, furniture and furnishings and ancillary uses.
Units 4 & 5 (B&M and Pets at Home):
These units shall be used for the sale of in any combination (as the retailer or retailers shall chose) of:■ DIY goods■ Furniture and furnishings■ Carpets and floor coverings■ Motor accessories, cycle & cycle parts and accessories■ Gas and electrical goods and appliances■ Pets, pet food and pet products■ Office equipment and other associated products■ Footwear and sports apparatus and other ancillary products
In addition, unit 4 (B&M) has recently been granted permission for the sale of food (excludingfresh or frozen goods) and drink products limited to a gross internal floor area of 120 m2.
Unit 3 (Pizza Hut):
This unit is subject to a Class A3 restaurant consent.
Within any of the relevant consents, there is no upper floor space limit specified for any of the units on the retail park. Furthermore, there is no minimum unit size restriction,so internal subdivision is acceptable without requiring further planning permission.
Copies of the planning permission are available on request.
06PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY
ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE07
Morrisons is bringing forward plans for redeveloping the current ice rink site off RomValley Way into a new Morrisons foodstore with new homes and a petrol station.
The scheme will comprise a major new modern and bespoke Morrisons foodstore(81,500 sq ft gross) with Customer Café, pharmacy, dry cleaners etc and will include:
■ Approximately 300 new jobs with training■ A new petrol station and car wash■ New homes – current plans are for 65 flats and houses, including a mix
of 1, 2 and 3 bed properties■ Approximately 500 car parking spaces across the site■ Financial investment to enable the Council to build the new ice rink, swimming
pool and leisure centre on the Mercury Gardens site in Romford town centre
The ice rink has subsequently been demolished.
MORRISONS DEVELOPMENTOPPOSITE ROM VALLEY WAY RETAIL PARK
UNIT TENANT AREA FT² PASSING RENT RENT PSF START DATE EXPIRY DATE RENT REVIEW COMMENT
1 MOTHERCARE UK LIMITED 29,843 £581,959 £19.50 06/06/2013 06/06/2028 14/05/2016 Lease extension recently agreed.
2 CARPETRIGHT PLC 11,624 £203,420 £17.50 24/06/2013 20/06/2021 26/06/2016
3 PIZZA HUT (UK) LIMITED 3,335 £79,000 £23.69 04/11/2005 03/11/2030 04/11/2015 Tenant break option 03/11/2020.
4 B&M RETAIL LTD 13,011 £225,000 £17.29 23/10/2014 22/10/2024 23/10/2019New 10 year lease. Tenant fitting out. Vender to top-up 21months rent free. The Rent Review is capped at 2% PAC.
5 PETS AT HOME LIMITED 10,071 £235,450 £23.38 09/02/1998 08/02/2023 09/02/2018
TOTAL 67,884 £1,324,829
The property is subject to five full repairing and insuring leases with a total income of £1,324,829 pa. The average weighted unexpired lease term is 11.2 years to expiry and 10.6 years to breaks.
TENANCIES
08PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY
TENANTS’ COVENANTSThe property income is secured against five national multiple retailers. We have summarised their most recent accounts below:-
TENUREFreehold.
VATThe property has been elected for VAT and it is anticipated the sale will be treatedas a transfer of a going concern.
TENANT ACCOUNTS YEAR ENDING TURNOVER £000S PRE-TAX PROFIT £ 000S NET WORTH £ 000S D&B RATING
MOTHERCARE UK LIMITED 30/03/2013 570,638 -12,071 27,634 4A1
CARPETRIGHT PLC 26/04/2014 447,700 -7200 2,500 5A1
PIZZA HUT (UK) LIMITED 01/12/2013 230,106 -968 42,085 5A1
B & M RETAIL LIMITED 31/12/2012 935,229 88,323 171,867 5A1
PETS AT HOME LIMITED 28/03/2013 586,350 77,707 382,537 5A1
ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE09
ComingSoon!
Artist impression of B&M Fascia
010PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY
COPYRIGHT © JONES LANG LASALLE IP, INC. 2014. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of JonesLang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of anyinaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. October 2014.
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FURTHER INFORMATIONFor further information and in order to arrange an inspection, please contact:-
Jonathan Perkins020 7087 5376 (Direct)07884 186881 (Mobile)[email protected]
Robert Cosslett020 7399 5371 (Direct)07884 184415 (Mobile)[email protected]
PROPOSALWe are instructed to seek offers in excess of £20,030,000 (Twenty Million and Thirty Thousand Pounds) for this freehold interest, subject tocontract. A purchase at this level would reflect a net initial yield of 6.25%,assuming purchaser’s costs of 5.80%.