Dunelm Store Shoreham-by-Sea - Avison Young Retail · PMA average of £1,402 million. Per capita...

EASTERN AVENUE, SHOREHAM-BY-SEA, BN43 6PD

Dunelm Store

R E TA I L WA R E H O U S E I N V E S T M E N T

E N T E R

Investment Considerations• Shoreham-by-Sea is well located and easily

accessible via the A259 to Worthing 8 mileswest and Brighton, 6.5 miles east.

• The town benefits from an affluent catchmentwith retail expenditure at £1,402 million,significantly above the PMA average of£924 million.

• Retail warehousing is very limited within thecatchment area, with many of the retailers inthe area trading well here as a result.

• The subject property is located in a prominentposition in close proximity to a B&Q andHalfords unit.

• The unit totals 24,780 sq ft, with 99 carparking spaces.

• The property is well let to the D&B rated 5A1covenant of Dunelm (Soft Furnishings) Limitedwith 6 years unexpired.

• Bulky goods planning consent.

• The current rent is low compared withother rents in the area, at £360,600 perannum, reflecting £14.55 per sq ft, with goodprospects for an uplift at the 2017 rent review.

• Potential to re-gear the lease with Dunelm.

• We are instructed to seek offers for theabove property at £5,015,000 (Five Millionand Fifteen Thousand Pounds), subject tocontract and exclusive of VAT. A purchaseat this level reflects an attractive net initialyield of 6.75%, based on purchaser’s costs of6.59%.

Investment Considerations

DescriptionCatchment Population

ERV, Planning& Covenant

Location & Situation

Tenancy & Tenure

Retail Warehouse Competition

EPC, VAT, Proposal &Further Information

Potential to re-gear the lease with Dunelm

Dunelm Store, Eastern Avenue, Shoreham-by-Sea, BN43 6PD

SituationThe property is situated in a highly visible position on an elevated site overlooking Eastern Avenue, in close proximity to its junction with the A259 Brighton Road, the main route running through the town and linking Shoreham with Worthing, Hove and Brighton. The town centre and train station are located 0.4 miles west of the subject property. On the opposite side of Eastern Avenue is a McDonalds, a 15,155 sq ft Halfords unit and a 36,192 sq ft standalone B&Q unit. This cluster of retail warehousing forms the only retail warehousing in the vicinity.

The Council car park adjacent to the subject property is part of a potential development site, which includes a new Civic Centre. Any redevelopment here is likely to be a mixed use scheme and should further improve the vicinity.

LocationShoreham-by-Sea is an affluent seaside town and port in West Sussex, 8 miles east of Worthing, 6.5 miles west of Brighton and 58 miles south of London.

The town benefits from excellent road links, the A259 links the town to Worthing and Brighton. The A27 runs east west of the town, connecting to the A23 to the east which in turn links to the M23 and to Gatwick Airport. To the west, the A27 connects to the A24 which leads to the M25, and to the A3(M) and the M27, 36 miles west. Shoreham has a mainline railway station with direct trains running regularly to a number of destinations including Brighton (15 minutes), Portsmouth (57 minutes) and London Clapham Junction (1 hour 6 minutes). Gatwick Airport is located 32 miles north and is the second largest airport in the UK, serving over 40.2 million passengers annually.

LUTON

STANSTED

GATWICK

LYNEHAMHEATHROW

87

6

12

43 5

3 54

7

6

3130

4

5

2

8

9

10

11

2 134

14

13

4

3

1

11

10

99

14 1312

67

10

65

7

12

1110

9

8

7

8

5

1314

44

12

1

2 3

91110

12

1615

11

78

9

10

2019

1

32

4

56

1718

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

9

10

9

10

14

13

12

11

10

9

11

2

26

5

3

1

M23

M1

M2

M27

M26

M25

M20

A3(M)

M40

M4

M3M25

M20

M1 A1(M)

M11

M40

M3

M1 1

M1 1

A36

A338

A346

A303

A354

A338

A338

A419

A31

A31

A436

A44

A40

A429

A40

A44

A44

A46

A46

A348 A3

38

A303

A31

A26

A23

A4

A41

A406

A10

A12

A13

A2A20A205

A3

A34

A3

A34

A5 A10

A505

A508

A421

A127A127

A40A418

A41

A4010

A413

A41

A43

A5

A509

A6

A1

A602

A10

A414

A12

A120A130 A1

31

A131

A134

A12

A130A420

A34

A43

A422A505

A259

A21

A229

A249

A21

A228

A21

A26

A22

A22

A22

A27

A26

A27

A23

A264

A283

A24

A272

A24

A264

A22

A2

A31

A33

A339

A34

A27

Hertford

WelwynGarden

City Ware

HatfieldHoddesdon

Royston

Biggleswade

Sa�ronWalden

HaverhillNewportPagnell

Sheerness

Chelmsford Maldon

Braintree

Bishop's Stortford

Sittingbourne

Ashford

Tonbridge

Uckfield

Crowborough

Bexhill-on-Sea

SeafordNewhaven

EastGrinstead

HaywardsHeath

LewesHailsham

SevenoaksOxted

Dorking

Horsham

Godalming

Chichester

Haslemere

Littlehampton

Petersfield

Ryde

Newport

FawleyHythe

Lymington

New Milton Cowes

Alton

Winchester

Romsey

Leatherhead

WindsorStaines

CroydonSwanley

Andover

Ringwood

Salisbury

Christchurch

Chippenham

Melksham Newbury

Devizes

Cirencester

Didcot

Dartford

Witney Kidlington

Tilbury

Chigwell

EpsomSutton

Kingston upon Thames

RichmondWoolwich

Barnet Enfield

Beaconsfield

Harrow

Henley-on-Thames

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

BanburyEvesham

Stevenage

Southend-on-Sea

Brentwood

Romford

Colchester

Basildon

Tunbridge Wells

Hastings

Eastbourne

Chatham

Crawley

BrightonHove

Worthing

BognorRegis

Portsmouth

Havant

Eastleigh

Basingstoke

Guildford

Woking

Reading

PooleBournemouth

Swindon

Cheltenham

Harlow

Watford

Luton

Amersham

HighWycombe

Oxford

Fareham

Gosport

SOUTHAMPTON

LONDON

Shoreham-by-Sea

Sand & Mud

MLW

ED & Ward Bdy

CCLW

MLW

River Adur

Shoreham Harbour

West Arm

4.3m

LB

Yard

Builders

Sl ip

wa

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Riverside

Business Centre

B

Surry Court

34

53

24

6

386

39

3

El Sub Sta

50

Pashley

Court

1 to 4

372380

4

1

C

A

3 to 9

10 to 15

Glyndebourne Court

1 2

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Shoreham-by-Sea

Glyndebourne

PH

to

Court

16

Station

370

MercuryHouse

62

384

382

1 to

36

388

ED Bdy

MLW

4.7m

5.4m

6.0m

5.7m

4.5m3.5m

3.7m

4.6m

Conveyor

Conveyor

Tk

Conveyor

WB

Tank

New Wharf

S Gantry

Fn

Free Wharf

LB

LB

WB

Track

HU

MP

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AVENUE

EASTERN CLOSE

EA

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HAM ROAD

ROAD

ROSSLYN ROAD

BRIGHTON ROAD

SL

MP 5.5

LC

El Sub Sta

The HamPlay Area

El Sub Sta

El Sub Sta

Allotment Gardens

Skatepark

24

1

5

87

104

Garage

21

Centre

Ham Business Centre

24

16

12

El Sub Sta

93

Builders Yard

2

130

23

71

40

78

38a38

14

11

8

58

17

57

Shelter

20

2

11

12

7

63

56Warehouse

26

90

8

95

1

85

Dolp

hin

Mew

s

368

18

21

Hall

Garage

1

Hall

1

Miniature

Rifle Range

17

14

Depot

67

15

6

Depot

Works

6

2

12

28

41

101

56a

12

1

15

2

14

66

11

Depot

73 to 75

15

Civic

39 to 41

Coastguard Lookout

24

Army Atc

31

118

6

1

Tank

Tank

1 t

o 3

Shelter

Depot

35

37

69 to 71

4.9m

Lennards Wharf

Travelling Crane

ADELAIDE SQUARE

DO

LP

HIN

WA

Y

Sub

Sta

El

El

Sta

Sub

Sta

Sub

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Superstore

Works

Tank

Tanks

22

73

23

Warehouse

Warehouse

26

59

Factory

Tanks

D1

D5

Depot

33

El Sub Sta

21

45

Tank

Tank

0m 50m 100m 150m

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:2647





Tenancy & Tenure




Catchment PopulationShoreham-by-Sea forms part of the Brighton conurbation, along with Hove. Brighton’s primary catchment area comprises 511,000 people, with an estimated shopping population of 329,000 people ranking it 29th out of the top 200 PMA Retail Centres. CACI estimate there are 86,379 people living within a 10 minute drive time of the subject property, extending to 310,842 people within a 20 minute drive time. Brighton is a seaside resort of considerable character, an important tourist destination, retirement town and conference centre. The area attracts over 8 million visitors each year with total tourism expenditure being £780 million in 2012. It is also the most popular UK seaside destination for foreign tourists with 409,000 visitors in 2013.

The Brighton catchment population has above average affluence with retail expenditure being significantly above the PMA average of £1,402 million. Per capita in-store comparison expenditure in 2015 was £2,742 compared with the PMA average of £2,600. Retail warehouse expenditure per capita in 2015 was also substantially above average at £576 in Brighton compared with £543. The financial sector is an important source of employment in Brighton reflecting the presence of large organisations including Lloyds, Legal & General and American Express, which has its European headquarters in the city. Warranty provider, Domestic & General, has an office in the city. In November 2014, the company announced plans to recruit 110 additional staff at its insurance call centre.

Major employers in the Public Sector include the University of Brighton, University of Sussex, Brighton and Sussex University Hospitals NHS Trust, Sussex Police and the City Council.

Brighton also plays host to a sizeable creative industry. In particular, the city’s New Media cluster (digital, computerised or networked information and technology) has the highest concentration of digital companies in the UK; Disney operates two of its companies - Club Penguin and Black Rock Studio - from the city. Brighton has one of the highest rates of business start ups in the country. The Greater Brighton City Deal was signed in March 2014 with the aim of driving growth through investment in infrastructure and training to attract creative and technological businesses to the area. The deal aims to deliver more than 20,000 jobs over the next few years.





Tenancy & Tenure




Retail Warehouse CompetitionRetail warehousing is very limited in Shoreham-by-Sea with the subject property being in one of the only 2 retail warehouse pitches for the town. The surrounding retail warehousing comprises standalone units let to Halfords and B&Q. 1.4 miles north of the subject property, close to the A27, is the Holmbush Centre which is owned by Tesco Stores. It comprises a 61,500 sq ft Tesco Extra unit and a 106,300 sq ft Marks & Spencer GM store. In close proximity is a 36,417 sq ft Next Home and Garden store, the first of its kind, and it was due to the success here that the retailer has rolled out the format across the country.

Retail warehousing in the general Brighton and Hove area is also limited, with overall provision per household of retail warehouse floorspace below the PMA average. Brighton itself has 2 main retail parks, Pavilion Retail Park and Brighton Retail Park. Pavilion Retail Park is located north of Brighton on the A270 with an open A1 consent and occupied by Halfords and B&Q. The scheme is being redeveloped to include 22,500 sq ft of space which is under offer to national retailers. Brighton Retail Park totals 42,432 sq ft of open A1 non-food consented space, let to M&S Simply Food, Next and Argos. Adjacent to this is Hollingbury Retail Park, a 2 unit scheme occupied by Matalan and Brantano. In Hove, located on the Old Shoreham Road, is Goldstone Retail Park, totalling 79,000 sq ft of open A1 non-food consented space with occupiers including Toys R Us, Pets at Home, DFS and TK Maxx. There are a number of solus units in the vicinity. A plan of the retail warehousing in the area is shown opposite.

A270 OLD SHOREHAM ROAD A270

A270

A27

S

HOREHAM

BYP

ASS

A27

SHOREHAM BYPASS

A27

A27

A27

A27

LONDON

RD

LONDO

N RD

LON

DON RD

MARINE PARADE A259

UPPER SHOREHAM RD

A259 BRIGHTON ROAD ALBION STREET

KINGSWAY KINGSWAY A259

SACK

VILL

E RO

AD

NEVILL ROAD

HANGLET ON ROADA293

DEVIL’S DYKE RD

DYKE ROAD AVENUE

WES

T ST

A270

LEW

ES R

OAD

LEW

ES R

OA

D

B&Q, Halfords

Dunelm

Marks & Spencer,Tesco

Homebase &Carpetright

FurnitureVillage

NEXT Home & Garden

Currys PC WorldOak

FurnitureLand

Barker & Stonehouse

Goldstone RP:81,300 sq ftTK Maxx, DFS, Toys R Us, Harveys, Pets at Home, Burger King, Nando’s, Wickes & Staples

Pavilion RP:72,459 sq ftB&Q and Halfords

Brighton RP:42,365 sq ftM&S Simply Food,Argos & Next

Hollingbury RP:35,000 sq ftMatalan & Brantano

SHOREHAM - BY - SEA

HOVE BRIGHTON





Tenancy & Tenure




DescriptionThe subject property provides a standalone unit of 24,780 sq ft GIA. Internally, the unit is fitted out to Dunelm’s specification and benefits from a trading mezzanine floor. The store is being refitted next year and will include a coffee shop which proves popular with Dunelm’s customers and helps increase dwell time. The store serves a large catchment area, incorporating Hove, Brighton and parts of Worthing, and extending as far north as Crawley and East Grinstead. Dunelm have limited stores in the area; Rustington is their next closest store to the west, located 13.2 miles away. Eastbourne is the closest store to the east at 31.8 miles and there is a long drive time between the subject property and the Dunelm to the north in Croydon; 44 miles. Car parking is located to the front of the subject property providing approximately 99 spaces, equating to a ratio of 1 : 250 sq ft.

Servicing is situated at the front of the unit on the far western elevation. Both vehicular and servicing access and egress to the scheme is off Eastern Avenue. The total site area is 1.56 acres, providing a low site cover of 36.5%.

The subject property provides a standalone unit of 24,780 sq ft GIA.

LUTON

STANSTED

LYNEHAMHEATHROW

87

6

2

43 5

3 54

7

6

3130

4

5

2

8

9

10

2 134

14

13

4

3

1

11

10

99

14 1312

67

10

65

7

12

1110

9

8

7

8

5

1314

44

12

1

2 3

91110

12

1615

11

78

9

10

2019

1

32

4

56

1718

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

9

10

9

10

14

13

12

11

10

9

11

2

26

5

3

1

M23

M1

M2

M27

M26

M25

M20

A3(M)

M40

M4

M3M25

M20

M1 A1(M)

M11

M40

M3

M1 1

M1 1

Hertford

WelwynGarden

City Ware

HatfieldHoddesdon

Royston

Biggleswade

Sa�ronWalden

HaverhillNewportPagnell

Sheerness

Chelmsford Maldon

Braintree

Bishop's Stortford

Sittingbourne

Ashford

Tonbridge

Uckfield

Crowborough

Bexhill-on-Sea

EastGrinstead

HaywardsHeath

LewesHailsham

SevenoaksOxted

Dorking

Horsham

Godalming

Haslemere

Rustington

Petersfield

Ryde

Newport

FawleyHythe

Lymington

New Milton Cowes

Alton

Winchester

Romsey

Leatherhead

Windsor

Croydon

Andover

Ringwood

Salisbury

Christchurch

Chippenham

Melksham Newbury

Devizes

Cirencester

Didcot

Dartford

Witney Kidlington

Tilbury

Chigwell

RichmondWoolwich

Barnet Enfield

Beaconsfield

Harrow

Henley-on-Thames

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

BanburyEvesham

Stevenage

Southend-on-Sea

Brentwood

Romford

Colchester

Basildon

Tunbridge Wells

Hastings

Eastbourne

Chatham

Portsmouth

Havant

Eastleigh

Basingstoke

Guildford

Woking

Reading

PooleBournemouth

Swindon

Cheltenham

Harlow

Watford

Luton

Amersham

HighWycombe

Oxford

Fareham

Gosport

SOUTHAMPTON

LONDON

Shoreham-by-Sea13.2 MILES 31.8 MILES

44 M

ILES





Tenancy & Tenure




TenancyThe property is let to Dunelm (Soft Furnishings) Limited on a full repairing and insuring lease from 18 June 2007 for a term of 15 years, expiring 17 June 2022. The current rent per annum is £360,600, reflecting £14.55 per sq ft. Rent reviews are 5 yearly with the next review on 18 June 2017. The review is upwards only but to the lower of open market rent and £407,985 per annum, (£16.46 per sq ft).

This official copy is incomplete without the preceding notes page.

Tenure The property is held freehold with the site area delineated in red on the plan above.





Tenancy & Tenure




Planning The property was originally granted permission for a retail warehouse unit in 1985, with the permitted use being for the sale of non-food durable goods, with the exception of DIY products. The original permission stated a maximum floorspace of 23,681 sq ft, however this was subsequently varied to allow a further 700 sq ft in 1996. Further details are available on request.

Tenant CovenantDunelm was established over 30 years ago by Bill and Jean Adderley, and the company still remains partially owned and run by the family today. Dunelm is now one of the UK’s leading home furnishing retailers, with over 130 stores across the UK employing in excess of 4,500 members of staff. The retailer benefits from a 5A1 covenant, as rated by Dun & Bradstreet. We set out below a summary of their most recent company accounts:

Tenant Year Ending Sales Turnover(000’S)

Pre Tax Profit (000’S)

Net Worth(000’S) D&B Rating

Dunelm (Soft Furnishings) Ltd04/07/2015 £835,805 £118,442 £88,072

5A128/06/2014 £730,152 £114,471 £31,018

ERV Dunelm are paying a rent reflecting £14.55 per sq ft with the next review due in June 2017. We believe the current rent looks low when compared to other properties in Shoreham, Brighton and Hove. Furthermore this is one of the few places in the country where, due to the limited supply coupled with high tenant demand, rents have increased over the past few years, and there have been uplifts achieved at rent review, as demonstrated below:

Address Tenant Transaction GIA (sq ft) Effective Date Rent (per sq ft) Comments

The Pavilion Centre, Hove Halfords New Letting 7,500 Jun-16 £32.00 Re-location to a new unit on the scheme.

184-186 Shoreham Road, Hove Barker & Stonehouse Assignment & lease re-gear

20,000 Feb-16 £26.00 Former DSG assigned to Barker & Stonehouse and the lease re-geared

Old Shoreham Road, Hove Currys PC World New letting of extended building

28,280 Oct-15 £27.50 Existing unit is being refurbished and extended. The new lease was agreed October 2015 with occupation to occur in circa December 2016.

Brighton Road, Shoreham B&Q Lease renewal 36,192 Jul-15 £15.06 New 10 year lease with 5 year break clause

Hollingbury Retail Park, Brighton Brantano Rent Review 10,000 Jun-14 £23.50 Previous rent reflected £22.50 per sq ft.

Hollingbury Retail Park, Brighton Matalan Rent Review 25,000 Jun-14 £20.00 Previous rent reflected £17 per sq ft.

Goldstone Retail Park, Hove TK Maxx New Letting 10,000 Nov-13 £34.00 New letting netting back to £28.05 per sq ft.

Upper Shoreham Road, Shoreham Next Home & Garden New Letting 36,417 Sep-10 £35.70 New letting of former Homebase. First Home & Garden store.





Tenancy & Tenure




EPC The unit has an EPC rating of B47.

VATThe property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction will be treated as a ‘TOGC’.

ProposalWe are instructed to seek offers for the above property at £5,015,000 (Five Million and Fifteen Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.75%, based on purchaser’s costs of 6.59%.

Further InformationEllie Kirkby Tel: 020 7317 3790Mob: 07764 241898Email: [email protected]

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

Wilkinson WIlliamsHeathcoat House, 20 Savile Row,London, W1S 3PR

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 not guaranteed and they do not form part of any contract. June 2016. Designed and produced by Creativeworld Tel: 01282 858200.





Tenancy & Tenure




mailto:[email protected]?subject=Dunelm Store Enquiry

mailto:[email protected]?subject=Dunelm Store Enquiry

Dunelm Store Shoreham-by-Sea - Avison Young Retail · PMA average of £1,402 million. Per capita...

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Transcript of Dunelm Store Shoreham-by-Sea - Avison Young Retail · PMA average of £1,402 million. Per capita...