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Kittybrewster Retail Park
Prime unrestricted Class 1 (non food) retail warehouse park
Bedford Road, Aberdeen, AB24 3LJ
Kittybrewster Retail Park
2
Kittybrewster Retail Park
3
• Aberdeen benefits from a successful economic base with an unemployment rate of only 1.6%, as opposed to a national average of 4.3% in April 2009.
• Kittybrewster provides a modern, successful and busy retail park of approximately 141,519 sq ft GIA in 13 retail units situated in a prominent and accessible position to the north west of the city centre.
• Occupiers include TK Maxx, Sports Direct, DFS, Harveys, Comet, Carpetright, Halfords, Staples and World of Sofas.
• The scheme is predominantly let to strong national retailers with an average unexpired lease term of approximately 12.36 years. In particular, a number of the ‘anchor’ tenants have long term lease commitments, e.g. DFS (2027), Sports Direct (2020), Carpetright (2028), Halfords (2028) and Staples (2018).
• The scheme has an unrestricted Class 1 (non food) planning consent.
• The scheme offers various ongoing asset management opportunities including letting vacant accommodation, re-gearing leases and developing new accommodation for which, planning consent exists.
• Our clients are seeking a price of £33,767,565, subject to conclusion of missives which with the benefit of a 24 month rent, rates and service charge guarantee in respect of the one unlet unit (Unit 2), will provide a purchaser with an attractive net initial yield of 8.75%, assuming purchaser’s costs of 5.75%.
Investment summary
Aberdeen is a thriving commercial and retail centre which benefits from a large population estimated to be 230,000 within 20 kilometers of the city centre.
Kittybrewster Retail Park
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LocationAberdeen has a population of approximately 184,788 within the urban area, rising to 212,215 within the district area. As with many major Scottish centres, Aberdeen benefits from a large catchment population. It is estimated that the population within 20 kilometres of the town centre is in excess of 251,000. PROMIS estimate the city has a primary retail catchment population of approximately 342,000.
A93A956
A956
A978
A9012
A9011
A90
A90
A90
B944
B947
Aberdeen
Heathcot
Blacktop
Kingswell
Overton
Northfield
Kings Links
Cove Bay
Denmore
Aberdeen is Scotland’s third largest city and is the principal, thriving commercial centre for the north east of Scotland.
The city is situated approximately 105 miles north of Edinburgh, 70 miles north of Dundee and 100 miles east of Inverness and benefits from good road communications being accessible via the A90 west coast road. It is also served by a good rail service on the East Coast Mainline, which provides services to Edinburgh and London. Aberdeen is also served by a busy international airport.
ABERDEEN
Kittybrewster Retail Park
Kittybrewster Retail Park
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Economy/DemographicsAberdeen is the centre of the UK’s North Sea oil and gas industry and this is the area’s major employer. However, the conurbation also has the benefit of two universities and is a major north sea fishing port. Significant employers include BP, University of Aberdeen, John Wood Group plc and Stagecoach Buses.
The economic prosperity of the city is indicated by the fact that in April 2009, the unemployment rate within the travel to work area stood at 1.6%,
Age Structure 1991% District Centre GB
18-29 20.6 18.2
30-44 22.3 21.2
45- pensionable age 18.8 19.3
as opposed to a national average of 4.3%. In addition, Experian categorise 11.56% of the urban population as ‘Symbols of Success’, as opposed to a national average of 9.70%.
The city also benefits from a relatively youthful and therefore likely economically active population, as indicated below:
Kittybrewster Retail Park
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Situation
ST MACHAR DRIVE (A978)
HILTON STREET (A
978)
POWIS TERRACE (A96)
BE
RR
YD
EN RO
AD (B986)
BEDFO
RD R
OAD
(B99
1)
CLIFTON RD EASTKittybrewster Retail Park
Kittybrewster Retail Park is situated in a highly prominent and accessible position fronting Bedford Road, approximately one mile north west of the city centre. Immediately to the south of the retail park Bedford Road joins Powys Terrace (A96), one of the principal carriageways leading from the north of the city into the city centre.
The area surrounding the subject property is occupied by a wide variety of commercial uses, with a significant amount of residential accommodation.
Kittybrewster Retail Park
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Garthdee Retail Park (100,000 sq ft)
To the south of the city, there is a concentration of retail warehousing including a two unit scheme owned by the Prudential and is let to Boots and Currys and there is also a separate B&Q Warehouse.
Bridge of Don Retail Park (75,000 sq ft)
This secondary scheme is situated approximately three miles north of the city centre and is occupied by B&Q and Carpetright with vacant units, which were formerly occupied by MFI and Allied Carpets.
Union Square Developments
Hammerson are developing a new shopping mall, to the west of the city centre, which will include some integrated ‘big box’ retail units, together with leisure accommodation and a hotel. We understand part of the scheme is due to open in October 2009.
Other retail warehousingIn addition to Kittybrewster Retail Park, the retail warehousing in Aberdeen is summarised below:
Berryden Retail Park (95,000 sq ft)
Centrepoint Retail Park (85,000 sq ft)
Approximately 0.25 miles to the south of the subject property are the Centrepoint and Berryden Retail Parks, together with a Sainsbury’s food store. Centrepoint Retail Park is owned by Orchard Street Investments and is occupied by Mecca Bingo, Rosebys and Toys R Us, whilst Berryden Retail Park is owned by Chancery Gate and is occupied by Next, JJB, Mothercare, Argos and Currys.
Boulevard Retail Park (225,000 sq ft)
This scheme is owned by Standard Life and is situated to the north east of the town centre. It is anchored by an 85,000 sq ft Asda foodstore and other tenants include Brantano, Pets at Home, JBB, Aldi and Dunelm. There are a number of vacant units on this park.
A93A956
A956
A978
A9012
A9011
A90
A90
A90
B944
B947
Aberdeen
Heathcot
Blacktop
Kingswell
Overton
Northfield
Kings Links
Cove Bay
Denmore
21
3
6
4
5
Kittybrewster Retail Park
1
2
3
6
4
5
Kittybrewster Retail Park
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Unit 1bUnit 1a Unit 2 Unit 3a Unit 3b Unit 4a Unit 4b Unit 5
Unit 6a
Unit 6b
Unit 6c
Unit 7a
Unit 7b
Unit Area Frontage1a 4,000 sq ft 371 sq m 45 ft 13 m1b 11,200 sq ft 1,040 sq m 83 ft 25 m2 10,100 sq ft 938 sq m 59 ft 17.9 m
3a 10,200 sq ft 947 sq m 58 ft 17.8 m3b 10,500 sq ft 975 sq m 55 ft 16.8 m4a 10,500 sq ft 975 sq m 55 ft 16.8 m4b 16,300 sq ft 1,514 sq m 70 ft 21.2 m5 15,800 sq ft 1,467 sq m 70 ft 21.2 m
6a 10,000 sq ft 929 sq m 68 ft 20.8 m6b 9,500 sq ft 882 sq m 67 ft 20.5 m6c 22,400 sq ft 2,081 sq m 106 ft 32.4 m7a 5,100 sq ft 473 sq m 60 ft 18.3 m7b 5,100 sq ft 473 sq m 60 ft 18.3 m
Total 140,700 sq ft 13,071 sq m
DescriptionKittybrewster Retail Park comprises an attractive and modern retail park constructed in a classic ‘L’ shape formation, providing approximately 141,519 GIA sq ft of gross internal accommodation within 13 units.
The two principal terraces are divided into 11 individual units. This accommodation is of steel portal frame construction with front elevations clad with microbrib flat panel steel sheeting above attractive masonry and glazing. Each unit also benefits from a modern and prominent entrance feature. There are two adjoining smaller units (7a and 7b) at the south eastern end of the park, which are of a more dated construction.
Customers enter to the scheme is via a dedicated access point directly off Bedford Road leading to a tarmacadamed customer car park, providing approximately 400 customer car parking spaces. There is a separate service road leading
to a service yard to the rear of the units, the north eastern corner of which provides an extensive area providing a further 266 car parking spaces.
The overall scheme benefits from a total of 666 car parking spaces, providing a ratio of 1:212 sq ft, 1:19.70 sq m.
TenureHeritable interest.
Pine Warehouse
World of S
ofas
TO
LET
Kittybrewster Retail Park
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Planning
Mezzanine accommodation
The property benefits from an unrestricted Class 1 (non-food) planning consent, with no restriction on the subdivision of any of the units.
Planning consent has been obtained for the redevelopment of Units 7a and 7b, as described below and the refurbishment of the park, including new entrance features and reconfiguration of the car park.
Planning consent has been obtained for the redevelopment of Units 7a and 7b to provide new retail accommodation extending to approximately 12,500 sq ft, with a full cover mezzanine floor (giving a total area of 21,915 sq ft) together with two storey pod developments, providing a total of 2,411 sq ft of A1 non-food and 5,015 sq ft of A3 accommodation with mezzanine floors.
Mezzanine accommodation exists in the following units:
In addition CLOPUDs have been obtained to secure full cover mezzanine accommodation in respect of units occupied by Carpetright, Staples, Currys, TK Maxx and Comet.
Tenant GIA
Halfords xxxx sq ft
World of Sofas 7,700 sq ft
TK Maxx 6,000 sq ft
Harveys 9,000 sq ft
Sports Direct 6,000 sq ft
Kittybrewster Retail Park
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Tenancies
Description Tenant Name Total Area (sq ft)
Current Rent (p.a.)
Rent (per sq ft)
Lease Start Next Review Expiry Date Comments
1a CARPETRIGHT 7,500 £225,000 £30.00 28/07/08 28/07/13 27/07/28
1b HALFORDS 7,500 £206,250 £27.50 25/07/08 25/07/13 24/07/28
2 TO LET 10,135 £152,025 £15.00 - - -Vendor to provide 24 month rent, rates and service charge guarantee.
3 STAPLES 10,208 £230,310 £22.56 10/10/03 10/10/08 28/03/27 Tenant’s option to determine 10/10/18.
4a CURRYS 10,461 £272,000 £26.00 18/11/92 29/09/12 28/09/15
4b WORLD OF SOFAS 10,510 £157,650 £15.00 13/08/09 13/08/11 12/08/19 Rent payable at £10 psf in year 2, £12 psf in year 3 and £15 psf in years 4 and 5. Vendor to step up rent to £15 psf until commencement of year 4. If turnaround exceeds £2.75m pa then additional rent of 7% of the excess is payable. If turnover is over £2.75m pa, rent will revert to 7% of turnover only.
5a TK MAXX 16,319 £403,079 £24.70 20/08/01 20/08/11 20/08/16Tenant’s option to determine within 7 months from settlement of their second rent review.
5b COMET 15,821 £390,779 £24.70 10/04/92 25/03/12 28/09/15
6a HARVEYS 10,021 £201,000 £20.06 09/06/03 09/06/08 09/06/23 Tenants option to determine 04/06/18.
6b SPORTS DIRECT 9,563 £262,982 £27.50 11/08/05 11/08/10 10/08/20
6c DFS 23,367 £536,613 £22.96 26/12/02 25/12/12 25/12/27
7a PINE WAREHOUSE 5,046 £50,000 £9.90 18/08/09 - 17/08/14 Landlord’s option to determine 01/01/13. Initial rent of £25k pa rising to £50k pa on first anniversary of the term. Vendor to top-up income to £50k pa until first anniversary of term.
7b BED SHED 5,068 £31,250 £6.17 27/05/09 01/01/12 26/05/14 Landlords option to determine 01/01/13.
Catering Van JEFF EVANS £5,617 01/01/09 31/12/09
141,519 £3,124,555
The property is let in accordance with the tenancy schedule set out below:
Kittybrewster Retail Park
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Tenants covenantsThe most recent summary accounts Dunn and Bradstreet ratings are set out below:
Unit Tenant Name Accounts Year Ending
Turnover (000’s)
Pre tax profits (000’s)
Net worth (000’s)
D&B Rating
1a CARPETRIGHT PLC
1b HALFORDS LTD 03/04/09 £809,200 £101,400 £229,800 5A1
28/03/08 £797,400 £111,300 £194,700
2 TO LET
3 STAPLES UK RETAIL LTD 31/01/09 £353,101 -£8.537 -£3,901 N2
02/02/08 £359,707 £17,125 £2,149
4a DSG RETAIL LTD 03/05/08 £4,657,189 £140,141 £763,720 5A1
27/01/07 £4,500,903 £219,527 £861,108
4b WORLD OF SOFAS LTD 0-
5a NBC APPAREL GROUP PLC 26/01/08 £75,164,900 £127,600 £3,643,900 2A2
27/01/07 £75,272,000 £162,500 £3,579,600
5b COMET GROUP PLC 30/04/08 £2,003,334 £24,928 £67,114 5A1
31/01/07 £1,607,546 £55,588 £47,275
6a HOMESTYLE OPERATIONS LTD 28/06/08 £387,560 £23,299 £26,055 4A1
30/06/07 £383,560 -£21,108 £3,601
6b SPORTS WORLD INTERNATIONAL LTD O4
6c DFS FURNITURE COMPANY LTD 02/08/08 £3,100 -£7,800 £172,200 5A2
28/07/07 £50,900 £185,100
7a THE PINE WAREHOUSE LTD
7b STIENHOFF UK GROUP PROPERTIES LTD
Kittybrewster Retail Park
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Asset managementWe would highlight that this is a successful retail environment, which benefits from a number of strong anchor tenants. These are retailers in the furniture sector (e.g DFS), the more open sector (e.g TK Maxx/Sports Direct) and more traditional bulky retailers (e.g Carpetright, Halfords, and Comet). We believe that these provide an important draw to both consumers and therefore other retailers, and will provide the basis to allow the landlord to implement an ongoing programme of asset management initiatives to improve the tenant mix and income profile of the park. These include:
a) Let vacant Unit 2.
b) Surrender of the lease on unit 4a (let to Currys) who are not in occupation and re-let this accommodation.
c) Undertake re-gearing/lease extensions with those tenants with shorter lease commitments (e.g. Comet).
d) Instigate the redevelopment of Units 7a and b in accordance with the planning consent that has already been obtained.
VATWe understand the property has been elected for VAT purposes.
Kittybrewster Retail Park
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Proposal
Our client is seeking a price of £33,767,565,
which, with a 24 month rental guarantee in respect of
Unit 2 at £15.00 per sq ft, will provide the purchaser with
an attractive net initial yield of 8.75%, assuming purchasers
costs of 5.75%.
MISREPRESENTATION NOTICE
Wilkinson 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 no guaranteed and they do not form part of any contract.
For further information
please contact:
Miles Marten
Tel: 020 7317 3777
Mob: 07770 748 290
Wilkinson Williams
Heathcoat House
20 Savile Row
London W1S 3PR
www.wilkinsonwilliams.co.uk
| Kittybrewster RP | November 09 | Ref: 106023