L O N G L E T R E T A I L W A R E H O U S E I N V E S T M E N
T
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
INVESTMENT HIGHLIGHTS • Heywood is located 7 miles north of
Manchester city
centre and forms part of the Greater Manchester urban area.
• The B&M store is located in a prominent and easily accessible
location, adjacent to a dominant and well established Morrisons
foodstore.
• Modern unit totalling 33,713 sq ft, let to the 5A1 covenant of
B&M Retail Limited.
• Open A1 including food planning consent.
• To be sold by way of a sale and leaseback, with a new 15 year
full repairing and insuring lease with 5 yearly upwards only rent
reviews, capped at 12% (2.3% per annum).
• Tenant option to renew for a further 10 years at lease
expiry.
• Affordable rent of £12.50 per sq ft, £421,413 per annum.
• Freehold.
We are instructed to seek offers in the region of £6,080,000 (Six
Million and Eighty Thousand Pounds), subject to contract and
exclusive of VAT. This reflects a net initial yield of 6.50%
(assuming purchaser’s costs of 6.63%).
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
To be
LOCATION Heywood is located between Rochdale and Bury, with
Rochdale 3.5 miles to the east and Bury 4.5 miles to the west. The
town is 7 miles north of Manchester city centre and forms part of
the Greater Manchester urban area.
Heywood benefits from its ease of accessibility, situated close to
Junction 9 of the M62 motorway and Junction 2 of the M66 motorway.
The town is on the East Lancashire Railway line, which links the
town to Bury and Rochdale. A new rail line from Rawtenstall to
Manchester, incorporating Heywood, is proposed as part of further
improvements to connectivity across the north of England.
SITUATION The subject property is located in a prominent and easily
accessible location, adjacent to a 74,335 sq ft, well established
Morrisons foodstore with a petrol filling station. The town centre
is in close proximity to the scheme, and there are a number of
residential dwellings, pubs and restaurants situated close by as
well. Adjacent to the Morrisons are a number of smaller units where
occupiers include Subway and Barnardo’s alongside some local
retailers. The A58 links from the M66 to the town centre, off which
the subject property can be accessed. There is a second customer
access point to the scheme via Bamford Road.
BURY AND ROCHDALE OLD ROAD
A664
ROCHDALE ROAD
A58 A58
ROCHDALE ROAD
WHITTLE LAN E
MANCHESTER
HEYWOOD
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
CATCHMENT & DEMOGRAPHICS
of the subject property
Population growth of 3.48% by 2022 within the
20 minute drive time
3.48% population growth
Heywood is home to one of the UK’s largest single owned industrial
estates where
occupiers include Eddie Stobart, Argos and Shop Direct Group
Greater Manchester has a GVA of
£62.8 billion New £25 million
link road to the M62 motorway, new homes and a new school planned
for the town
GVA
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
Catchment population of Greater Manchester of
2.8 million people
RETAIL WAREHOUSING IN HEYWOOD There is no other retail warehousing
in Heywood itself, with the next closest schemes being in Bury and
Rochdale.
BURY AND ROCHDALE OLD ROAD
COLLEGE ROAD
ROCHDALE ROAD
A58 A58
ROCHDALE ROAD
WHITTLE LAN E
Halfords, Argos, Matalan & Poundstretcher (avg £16.00
psf)
Woodfields Retail Park (152,564 sq ft)
Boots, Next, Sportsdirect, Currys, JD Sports
& McDonald’s (avg £27.50 psf)
Moorgate Retail Park (51,787 sq ft)
Home Bargains, Carpetright, Halfords,
Angouleme Retail Park (76,273 sq ft)
TK Maxx, Argos & Poundstretcher (avg £15.00 psf)
Sandbrook Retail & Leisure Park (82,805 sq ft)
Homebase, PureGym, Tenpin Bowling, Odeon, Pizza Hut,
Frankie & Benny’s, McDonald’s & Subway
Halls Mill Retail Park (35,000 sq ft)
Bensons, Pets at Home & Smyths Toys
(avg £15.00 psf)
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
DESCRIPTION The subject property is a purpose built retail unit of
33,713 sq ft, which will occupied by B&M. The building has an
attractive stone clad frontage, in keeping with the adjacent
Morrisons unit. B&M have recently taken access of the unit and
are currently fitting out in keeping with B&M’s latest format.
The unit incorporates a first floor of 4,069 sq ft (included within
the GIA) predominantly used for staff amenities and ancillary
offices. Parking is situated to the front and side of the store,
shared with the adjoining Morrisons. Servicing to the unit is
segregated with separate access to the customer car park via
Foundry Street. The whole site area, including the Morrisons
foodstore and petrol filling station totals 8.91 acres and includes
372 customer car parking spaces and 39 staff car parking
spaces.
Modern retail unit totalling 33,713 sq ft let to the 5A1 covenant
of B&M Retail Limited
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
TENANT COVENANT B&M Retail Limited was formed in 1978 and is
now one of the leading variety retailers in the UK, employing
28,000 staff in over 600 stores. B&M’s strategy is to purchase
directly from factories or to seek over production and bulk buy
opportunities. It is a highly efficient model and is considered to
be “Internet Resistant”. Quite simply, customers cannot buy items
cheaper online, particularly taking into account standard delivery
costs. We set out below the most recent company accounts for
B&M:
Tenant Year Ending
5A1 25/03/2017 £2,252,265 £198,006 £498,412
TENURE The property is held freehold, as per the plan below
delineated in red.
By way of a Deed of Transfer from Morrisons, the freeholder and
tenant have rights to park in 372 car parking spaces to the front
of this property, in common with Morrisons and the adjoining owners
and occupiers, as shown approximately in green on the plan, and
this must be maintained by Morrisons at all times as a surface
level car park.
There is a restrictive covenant in favour of Morrisons preventing
no more than 10% of the GIA of the property to be used for the sale
of food and drink.
Within the Deed of Transfer there are rights to use the common
parts of the Estate and for servicing. There are service charge
provisions in the Deed of Transfer in relation to the repair and
maintenance of the common parts, the cost of which is to be borne
by the tenant. The overall Estate is shown in blue on the
plan.
Further details are available on request. PLANNING Planning
permission was originally granted in 1995 for the wider
development, which included the Morrisons foodstore and petrol
filling station and 6 non-food retail units. Permission was
subsequently granted for the refurbishment of the subject property
in 1997. The subject property benefits from having an unrestricted
open A1 consent.
TENANCY The property will be let, simultaneous to the sale, on a
new 15 year full repairing and insuring lease at a rent of £421,413
per annum, reflecting £12.50 per sq ft. This has been set by the
occupier to ensure it is at an affordable level for the retailer.
Rent reviews are 5 yearly upwards only and to open market rental
value, capped at a maximum of 12% (2.3% per annum) uplift for each
review. The tenant will have the option to renew at lease expiry
for a further 10 years.
A draft lease is available for interested parties.
B&M Times Retail Park, Dawson Street, Heywood, Manchester, OL10
4PN
EPC The property has a “C57” EPC rating.
VAT We understand the property has been elected for VAT and it is
anticipated that the transaction will be treated as a transfer of a
going concern.
PROPOSAL We are instructed to seek offers in the region of
£6,080,000 (Six Million and Eighty Thousand Pounds), subject to
contract and exclusive of VAT. This reflects a net initial yield of
6.50% (assuming purchaser’s costs of 6.63%).
CONTACTS Ellie Kirkby T 020 7317 3790 M 07764 241 898 E
[email protected]
Paul Wilkinson T 020 7317 3799 M 07770 585 313 E
[email protected]
MISREPRESENTATION NOTICE. Avison Young 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. The B&M
logo has been superimposed on the buildings for presentational
purposes. 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. July 2019. Designed and produced by Creativeworld Tel:
01282 858200.
Avison Young 22 Ganton Street London W1F 7FD
avisonyoungretail.co.uk
B&M are taking a new 15 year lease at a rent of £421,413 per
annum, reflecting £12.50 per sq ft