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H UN TS C ROSS RETAIL PA RK | L IVE R POOL L24 9GB

OPEN A1 RETAIL PARK INVESTMENT


2 Hunts Cross Retail Park Liverpool


i n ve stm e nt s u mm a ry

n Liverpool is the sixth largest city in the UK drawing from an extensive urban catchment of 820,000 people n Situated in a highly accessible location 5 miles from Liverpool City Centre and immediately adjacent to a recently refurbished ASDA foodstore n Open A1 (non-food) planning consent n The park provides 6,550 sq m (70,511 sq ft) of retail warehousing let to national retailers including: Next Clearance, JJB Sports, Matalan and Poundstretcher n A total rental income of £726,894 per annum with low passing rents of between £8.44-£16 per sq ft n Long leasehold – 951 years unexpired n Good asset management opportunities n S  eeking offers in excess of £8,334,000 (Eight Million Three Hundred and Thirty Four Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.25%*, having allowed for purchaser’s costs of 5.725% *Inclusive of a 2 year rent guarantee on Unit B

Hunts Cross Retail Park Liverpool 3


Location Liverpool is the sixth largest city in the United Kingdom and is the commercial and administrative capital of the Merseyside conurbation. Liverpool lies approximately 33 miles (53 km) to the west of Manchester, 98 miles (157 km) north west of Birmingham and 212 miles (340 km) north west of London. Merseyside has excellent motorway connections and Liverpool can be easily reached from the M6 via the M58, M56 and M62. The M62 connects the city centre to Manchester, Leeds and Hull to the east as well as Junction 21 of the M6 at Warrington 18 miles (29 km) away. Birkenhead, Chester, North Wales and the Wirral

lie south west of the River Mersey and are connected to Liverpool by the Birkenhead and Wallasey subterranean tunnels, which link into the A41 and M53 respectively. Liverpool John Lennon International Airport is situated approximately 2.5 miles south of the park via Speke Hall Road. In 2008 Liverpool was the European Capital of Culture which generated renewed interest and investment into the City and its surrounding areas, with more than ÂŁ3bn being invested in major projects.

Hunts cross retail Park

liverpool

New Mersey Shopping Park

Liverpool City Centre

Hunts cross retail Park

liverpool Liverpool Airport

4 Hunts Cross Retail Park Liverpool


RETAILING IN LIVERPOOL Liverpool city centre has recently been the subject of a significant remodelling with Grosvenor’s £900 million Liverpool One scheme. The site covers over 42 acres in the city centre and provides over 1.65 million sq ft of retail and leisure space with 580 residential apartments. Competing out of town retail schemes in south Liverpool are the New Mersey Shopping Park and Speke Retail Park. The New Mersey Shopping Park is situated approximately 1.5 miles to the south west. The park is a modern, prime destination scheme totalling 483,000 sq ft with 37 occupiers including

Marks & Spencer, Boots, Mothercare, Argos, River Island, Burtons and Currys. Rents on the park range between £40 per sq ft and £55 per sq ft. Speke Retail Park, situated approximately 2 miles south east, was completed in 2007 and extends to 134,000 sq ft. The park is anchored by a Wm Morrisons foodstore and is configured in a terraced format with other occupiers including William Hill, TK Maxx, Sayers, Card Warehouse, and Co-op Travel. Rents on the park range from between £18 per sq ft - £20 per sq ft.

CATCHMENT DEMOGRAPHICS Liverpool has a substantial urban population of 487,779 whilst the total primary catchment area is 1,116,000 and is ranked 7th out of the PROMIS Centres. According to CBRE catchment statistics, the shopping population is 545,000 ranking the city 8th out of more than 2,000 trading locations. More specifically there are 120,567 people living within a ten minute drivetime of the park with 488,492 people living within a twenty minute drivetime. The city has a socio-economic profile better than the rest of the UK with 65% of the population classed within the ABC social groups.

Hunts Cross Retail Park Liverpool 5


To Let

PFS

Hunts Cross Shopping Centre

Spek

Hunts cross retail Park

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liverpool

all R o a d (A5 27

Triumph Way

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Hunts Cross and surrounding area 6 Hunts Cross Retail Park Liverpool


SITUATION

DESCRIPTION

The property is situated in a highly accessible and prominent location approximately 5 miles south east of Liverpool City Centre. The park is located at the junction of the A562 Speke Hall Road and Hillfoot Avenue which is a major route connecting the city centre with the residential suburbs of Speke and Woolton.

The property was refurbished in 1997 to provide 6,550 sq m (70,511 sq ft) of retail warehouse accommodation. The property is well configured in an ‘L’ shape terrace which was sub-divided to provide 6 units. Subsequently, units G and H have been combined to provide one unit for Matalan.

Access to the property is served by an entrance on Speke Hall Road which is used in conjunction with adjacent occupiers.

The park provides 222 car spaces, a ratio of 1:319 sq ft. The units are serviced by a covered and enclosed service road to the rear of the retail terrace.

The park benefits from being adjacent to the Hunts Cross Shopping centre which is anchored by the recently refurbished and extended ASDA food store. There is also a standalone McDonalds, Wickes and Petrol Filling Station operated by ASDA. Hunts Cross train station is situated within 1.1 miles of the park, and provides regular services to Liverpool City centre.

SITE To Let

The site totals approximately 3.45 acres (1.39 hectares) with a site cover of approximately 47%.

Planning The park benefits from an Open A1 (non food) planning consent. This is by virtue of a general permission granted when the site was included in the Speke Enterprise Zone No1 (August 1981 - August 1991) and subsequent consents. There is a provision that the property may be used as a food supermarket specialising in the sale of frozen food. Further details are available upon request.

Hunts Cross Retail Park Liverpool 7


TENANCIES AND ACCOMMODATION The property produces a current total income of £703,644 per annum. All leases are drafted on institutional full repairing and insuring terms with 5 year upwards only rent reviews. Whilst negotiations for the letting of unit 2 are on-going, the vendor will provide a two year rental guarantee at £23,250 per annum (£10 per sq ft). This will therefore produce a total income of £726,894 per annum. The park is let in accordance with the tenancy schedule below:

Unit/s Tenant Name Trading As Total Area Term Start Next Rent Review Lease Expiry (sq m) (sq ft)

Current Rent (p.a.) (psf)

Comment

Unit A

Poundstretcher Limited

Poundstretcher

845

9,100

22-Sep-07

23-Sep-12

21-Sep-17

£82,200

£9.03

Unit B

Vacant

-

216

2,325

-

-

-

£23,250

£10.00

921

9,909

8-Jan-07

8-Jan-12

7-Jan-22

£158,544

£16.00

1,734

18,660

4-Mar-97

-

3-Mar-12

£157,500

£8.44

Unit G* Matalan Retail Limited Matalan

2,236

24,071

5-Feb-97

5-Feb-12

4-Feb-22

£240,700

£10.00

Tenant break 05/02/2012

Unit H* Matalan Retail Limited Matalan

599

6,446

27-Feb-97

5-Feb-12

4-Feb-22

£64,700

£10.04

Tenant break 05/12/2012

Unit C Next Group Plc Next Clearance Unit D,E,F JJB Sports Plc

JJB Sports

Total

6,550

70,511

Units G and H have been combined to provide one large unit.

*

TENURE The property is held by way of a long leasehold interest for 999 years from 1 August 1961 at a peppercorn rent.

8 Hunts Cross Retail Park Liverpool

£726,894

2 year rental guarantee


COVENANTS The park is well let to national retailers and a summary of the tenants latest accounts is set out below:

Tenant

Year Turnover

Pre tax profit

Delphi Score / Risk

% of income

Poundstretcher Ltd

Feb 09

£295,826,000

-£9,288,000

60/100 - Below Average

11.30%

Next Plc

Jan 09

£3,271,500,000

£428,000,000

96/100 - Very Low

21.80%

JJB Sports Plc May 08

£718,281,000

-£189,242,000

-/100 - High

21.67%

Feb 09

£1,020,000,000

£53,800,000

100/100 - Very Low

42.00%

96.77%

Matalan Retail Ltd

ASSET MANAGEMENT

VAT

• Remove Matalan breaks. Negotiations are ongoing and further information is available upon request.

The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated that the sale be by way of transfer of a going concern.

• Improve the tenant mix by letting vacant Unit B. Discussions with potential occupiers are ongoing with further details available upon request. • Potential to downsize the JJB unit and relet to another occupier, whilst at the same time re-gearing the JJB lease. • Undertake a refurbishment programme with particular emphasis on improved signage. • Increase revenue by approximately £5,000 per annum from advertising.

Hunts Cross Retail Park Liverpool 9


H UNTS CRO SS R E TAI L PA RK PROPOSAL Seeking offers in excess of £8,334,000 (Eight Million Three Hundred and Thirty Four Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.25%*, having allowed for purchaser’s costs of 5.725% *inclusive of a two year rental guarantee on Unit B.

for further information, please contact:

James Hurst Direct line: 020 7182 2659 Mobile: 0788 195 2247 Email: james.hurst@cbre.com

Rob Woods Direct line: 0151 471 4948 Mobile: 0782 627 8439 Email: robert.woods@cbre.com

Sale on behalf of:

SUBJECT TO CONTRACT MISREPRESENTATION NOTICE CBRE 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 no guaranteed and they do not form part of any contract.

Ref: 106012.001 | November 2009

10 Hunts Cross Retail Park Liverpool

10pp 106039.001_Liverpool_Hunts_Cross_RP_AW  

OPEN A1 RETAIL PARK INVESTMENT L24 9GB 2 Hunts Cross retail Park LIVERPOOL

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