NUNEATON – 5/6 MARKET PLACE LET TO POUNDLAND LTD UNTIL AUGUST 2022 Sat Nav Ref: CV11 4EA
Retail property expertise2 | Fawcett Mead Nuneaton – 5/6 Market Place
INVESTMENT SUMMARY
• Nuneaton is the largest municipality within Warwickshire county with a catchment population of approximately 165,000
• The property occupies a 100% prime trading position on the pedestrianised section of Market Place, adjacent to Boots and opposite Debenhams
• The property comprises 29,051 sq ft (2,699.0 sq m) of well configured and flexible retail accommodation
• Let to Poundland Ltd until August 2022
• Freehold
• Total current income: £190,000 per annum
• Price: £2,233,000
• Attractive Net Initial Yield: 8.00%
Retail property expertise3 | Fawcett Mead Nuneaton – 5/6 Market Place
RETAILING IN NUNEATON
Nuneaton is a distinguished regional centre with over 980,000 sq ft (91,000 sq m) of retail floor space, above the small town average (Source: PROMIS). Nuneaton displays a strong retail provision within an attractive centre, characterised by low vacancy rates which highlight the vitality of the town. The total in-store comparison retail expenditure in 2016 was £423,000,000, well above the small town average (Source: PROMIS).
Prime retailing in Nuneaton is focused on the pedestrianised Market Place and Bridge Street, which accommodate a number of popular national multiple retailers including Debenhams, Boots The Chemist, Holland & Barrett and Superdrug. The strength of this retail location is supported by the close proximity to the two managed shopping centres: Abbeygate Shopping Centre and Ropewalk Shopping Centre.
LOCATION
Nuneaton is an historic market town and the largest municipality within Warwickshire. With a large primary catchment population of approximately 165,000 it is an important retailing centre in The Midlands. The town is located approximately 9 miles north of Coventry and 20 miles east of Birmingham.
Nuneaton is well connected to the national motorway network, with the town centre situated just 4 miles north of Junction 3 of the M6, connecting the town to Birmingham to the west and London to the south, via the M1.
Nuneaton railway station provides frequent services into London Euston with a fastest journey time of approximately 1 hour, and Birmingham in only 30 minutes.
The nearest international airport is Birmingham Airport, situated some 13 miles south west of the town centre.
NuneatonBirmingham
Northampton
NottinghamA41
A41
A49
A51A50
A42
A50
A52
A515
A515
A518
A42
A43A454
A442
A456
A34 A45
A38
A458
A46
A5
A34
A43
A422
A417A46
A426
A423
A429
A508
A508
A44
A4103
A4123
A46
A15
A52
A15
A607
A606A1
A17
A1175
A47
A605
A605A43
A6116
A1
A14
A421
A6
A17
A49
A49
A449A438
Retail property expertise4 | Fawcett Mead Nuneaton – 5/6 Market Place
SITUATION
The property occupies a 100% prime trading position on the pedestrianised Market Place, at the junction with Bridge Street. Retailers in the immediate vicinity include:
Immediately to the south of the property is a 45 space car park located on Mill Walk which serves the store.
The property is serviced from the rear of the property.
DESCRIPTION
The property provides one of the best large retail floorplates within Nuneaton and enjoys frontage onto Market Place. Built of concrete framed construction with a semi-glazed frontage, the property offers well configured and flexible retail accommodation.
The property is arranged to provide well configured retail sales accommodation at ground floor, with ancillary accommodation over first and second floors.
ACCOMMODATION
Based upon a measured survey undertaken by Plowman Craven in 2016, the subject property provides the following approximate Gross Internal Areas:
Floor Use sq ft sq m
Ground Sales 14,421 1,339.80
First Storage 13,880 1,289.50
Second Plant 750 69.7
29,051 2,699.00
The property comprises one of the best large retail floorplates within Nuneaton
Retail property expertise5 | Fawcett Mead Nuneaton – 5/6 Market Place
INVESTMENT COMPARABLES
We consider that the subject property offers an attractive opportunity to purchase a highly secure, five and a half year income stream in a dominant retailing centre at a price which compares favourably with similar recent market transactions. These include:
Town Tenant Expiry Price NIY Date
East GrinsteadPoundland 2024 £2,700,000 6.44% Available
Poundstretcher 2020
DerbyPoundland 2027 £3,300,000 7.69% Dec 2016
Kieran Mullin 2018
Clacton-on-Sea Poundland 2026 £2,460,000 6.50% Oct 2016
Newcastle-under-Lyme Poundland 2026 £1,800,000 7.30% Sep 2016
Gillingham Poundland 2024 £1,400,000 6.75% Aug 2016
TENURE
Freehold
TENANCY
The property is let in its entirety to Poundland Ltd on a full repairing and insuring lease for a term of 10 years, commencing on 3rd August 2012 and expiring on 2nd August 2022. The lease is subject to an upward only rent review on 3rd August 2017.
The current rent is £190,000 per annum.
Retail property expertise6 | Fawcett Mead Nuneaton – 5/6 Market Place
COVENANT INFORMATION
Poundland Limited is a British variety store chain founded in 1990. Today the company operates from over 800 stores and employs approximately 10,000 members of staff. Poundland Limited has reported the following figures in their annual accounts:
27/03/2016 29/03/2015 30/03/2014
Turnover £1,214,818,000 £1,111,526,000 £997,803,000
Pre-Tax Profit £34,653,000 £45,922,000 £41,017,000
Net Worth £20,520,000 £93,866,000 £96,235,000
RENTAL COMMENTARY
We have analysed the passing rent in respect of 5/6 Market Place to reflect a low overall rate of £6.54 per sq ft.
It is our opinion that this compares favourably with other large stores both within Nuneaton and within competing retail centres. A full schedule of comparable evidence is available upon request.
50 metres
For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011
Nuneaton
Copyright and confidentiality Experian, 2015. © Crown copyright and database rights2015. Ordnance Survey 100017316
Experian Goad Plan Created: 31/01/2017Created By: Fawcettmead
Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 | SUBJECT TO CONTRACT
www.fawcettmead.co.uk
Joe Baio+44 (0)20 7182 7489+44 (0)7515 889 [email protected]
EPCA full copy of the EPC is available upon request.
VAT
The property has been elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
PROPOSAL
We are instructed to seek offers in excess of £2,233,000 (Two Million Two Hundred and Thirty Three Thousand Pounds) subject to contract and exclusive of VAT, for our clients freehold interest in the subject property. A purchase at this level would reflect an attractive net initial yield of 8.00%, assuming purchasers costs of 6.33%.
FURTHER INFORMATIONFor further information or to arrange an inspection, please contact the sole agent:
Jonathan Mills+44 (0)20 7182 7483+44 (0)7795 333 [email protected]
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