bushmead shopping centre, hancock drive, luton, lu2 …€¦ · bushmead shopping centre, hancock...

BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF

FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

INVESTMENT CONSIDERATIONS ■ A busy neighbourhood scheme comprising 10 shops,

11 flats (sold off on long leases) and 10 garages.

■ Situated within Bushmead, a popular residential suburb of Luton

■ Anchored by a Co-operative convenience store let on a long lease

■ Current Passing Rent of £269,850 pa

■ AWULT of 8.84 years to expiry and 7.73 years to break

■ Car parking for 66 cars

■ Freehold

■ Total site area of 1.465 acres (0.593 ha)

■ Asset Management opportunities include letting the vacant unit, redeveloping the site and breaking up the parade and selling the units off piecemeal.

■ Offers are sought in excess of £3,375,000 (Three Million Three Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.50% after allowing for purchasers costs of 6.49%

Outline for indicative purposes only.

BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

BUSHMEAD PRIMARY SCHOOL BARNFIELD COLLEGE

OLD

BEDFO

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CO

CO

K DRIVE

Barnfield Avenue

Old

Bed

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Roa

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ld Be

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rd R

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Austin Road

Kingsdon Avenue

Bushmead Road

Fairfo

rd A

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ue

Bushm

ead R

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Old Bedford Road Cromer WayLorimer Close

Hancock D

rive

Hancock Drive

Bland

ford

Ave

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Sherb

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Hemingford Drive

Egdon Drive

Wa

terha

ll Lane

Bush

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ad

Roa

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Bushemead Road

Haw

kfields

Muirfield Road

Hancock Drive

Riddy Lane

Pomeroy Grove

A6

A6

Barnfield College

LOCATIONThe town of Luton is located in Bedfordshire within the South East of England, approximately 18 miles (29km) north of Watford, 22 miles (35km) south east of Milton Keynes and 30 miles (48km) north west of Central London.

Luton benefits from excellent road communications being situated adjacent to the M1 Motorway at both Junctions 10 and 11. The M1 provides a direct link to the M25 Motorway, 12 miles (19km) to the south and the M6, 52 miles (83km) to the north west. There are also a number of key roads that serve the town including the A6, A1081 and A505 dual carriageway which leads to the A1(M) east.

Luton Airport Parkway and Luton Railway stations offer direct routes to London St Pancras, with a journey time of 26 minutes. Other direct services include St Albans (14 mins) and Bedford (14 mins).

Luton Airport is situated approximately 2 miles (3km) east of Luton Town Centre offering domestic and international flights to over 70 destinations as well as freight services.

LONDONHeathrow

LondonCity

Gatwick

Stansted

Luton

J27J25J23

J21

J20

J19

J16

J15

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A5

A505

A418

A602A131

A130

A138

A130

A127

A217

A331

A322

A339

A316

A309

A232

A264

A264

A229

A120

A404

A355

A404

A413

A4142

A4010

A414

A414

A414

A1

A2

A3

A3

A41

A34

A40

A31

A24

A22

A21

A20

A10

A10

A12

A12

A13

A26

A21

A23

A23

A420

A303

A34

A34

A44

A40

M1

M4

M4

M2

M3

M3

M10

M40

A404(M)

A329(M)

M25

M25

M25

M25

M23

M26

M20

M20

M11

M11

A1(M)

M1

Bishop’sStortford

EppingPotters Bar

Stevenage

Hatfield

Dartford

Bromley

Croydon

Biggin Hill

Romford

Tonbridge

RoyalTunbridge

Wells

Maidstone

Snodland

StaplehurstPaddock

Wood

East GrinsteadCrawley

Horley

Horsham

Witley

Godalming

Cranleigh

HaywardsHeath

Burgess Hill

DorkingGUILDFORD Reigate

HemelHempstead

Chesham

St Albans

HighWycombe

Thame

Watford

Wembley

BrentCross

Woking

LUTONLUTON

Harefield

Harrow

Enfield

Windsor

Slough

Aldershot

Alton

BASINGSTOKE

Famham

Fleet

Bracknall Egham

Ascot

Sandhurst

READING

OXFORD

Henley-on-Thames

Epsom

Ashford

Southall

ChippingOngar

KingstonUpon Thames

Clapham

Harpenden


SITUATIONThe property is situated within the Luton suburb of Bushmead approximately 2 miles (3km) north of Luton Railway station and Luton town centre.

The property is positioned fronting Hancock Drive, which also encircles the shopping centre and site. Opposite the property is Bushmead Retirement Centre, which has 41 apartments over two floors. Directly adjacent to the property is a church, a community centre, and a pub, highlighting the importance of this shopping centre to the local community.

The surrounding area can be characterised as being a densely populated residential neighbourhood, located within a countryside backdrop. The area is renowned for its beautiful countryside, popular hiking paths and impressive horse riding tracks.

Barnfield College and Bushmead Primary School are both within close proximity to the property.

DEMOGRAPHICSLuton has a primary catchment area of 265,000 with an estimated shopping population of 210,000. The town is projected to see significantly above average growth in population over the next 5 years.


DESCRIPTIONThe property occupies a large site to the east of Hancock Drive and comprises a purpose built neighbourhood shopping centre constructed in 1990. The property provides a terrace of ten units of part brick construction under a pitched tiled roof. Internally the property provides 10 retail units and 11 flats which have been sold on long leases.

The property also benefits from 10 garages as well as car parking to the front for 66 cars.

SITE AREATotal site area of 1.47 acres (0.59 ha).

TENUREFreehold.

© Crown Copyright, ES 100004106. For identification purposes only.

DRIVE

K

HANCOCK

GLENEAGLES DRIVE

El Sub Sta

PH

10

10

15

12

16

21

11

13

4

10

4

17

2

5

29

1

15

18

4027

61

28

51 Bushmead Court

6264

14 to 16

41

31

6317

29

46 to 50

42 to 45

Shelter

TCB

DRIVE

HANCOCK

24

17

1John Dony

18

1

1 to 3

7

23

12

12

Field Centre

18

73

20

19

5

16

Community Centre

17

11

19 to 26

(PW)Christchurch

The P

arad

e

32 to 39

0m 10m 20m 30m

Hancock Drive Luton

Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250


TENANCY SCHEDULE

Unit Tenant Lease Start Next Review Lease End Rent (£pa)

RESIDENTIAL INCOME

Flat 1a Private 12/5/2017 31/12/2032 11/5/2116 £250

Flat 1b Private 10/3/2017 31/12/2032 9/3/2116 £250

Flat 2 Private 19/12/2014 18/12/2113 £100

Flat 3 Private 1/2/2016 1/2/2031 31/1/2115 £250

Flat 4 Private 19/12/2014 18/12/2113 £100

Flat 5 Private 6/6/2016 1/1/2032 6/6/2115 £250

Flat 6 Private 27/1/2015 26/1/2114 £100

Flat 7 Private 2/9/2016 2/9/2031 1/9/2115 £250

Flat 8 Private 2/9/2016 1/1/2032 1/9/2115 £250

Flat 9 Private 19/12/2014 18/12/2113 £100

Flat 10 Private 19/12/2014 18/12/2113 £100

£2,000

Unit Tenant Lease Start Next Review Lease End Rent (£pa)

GARAGE INCOME

Garage 1 Private 1/5/2017 30/4/2018 £600

Garage 2 Private 18/7/2014 17/7/2015 £780

Garage 3 Private 1/5/2017 30/4/2018 £600

Garage 4 Private 8/9/2009 7/3/2010 £500

Garage 5 Private 25/9/2010 24/9/2011 £500

Garage 6 Private 5/6/2017 4/6/2018 £600

Garage 7 Private 31/1/2017 31/7/2017 £700

Garage 8 Private 29/9/2015 28/3/2016 £600

Garage 9 Private 10/7/2009 9/7/2010 £600

Garage 10 Private 7/7/2017 6/1/2018 £600

£6,080

Unit Tenant Trading As Area sq ft (GIA) Area sq m (GIA) Lease Start Next Review Break Lease End Rent (£pa) Rent psf Comments

RETAIL INCOME

Units 1-3 Co-Operative Group Food Ltd Co-op 5,838 542.4 24/8/2018 24/8/2023 24/8/2033 £85,000 £14.56

Unit 4 MAA Catering Ltd Fusion 1,550 144 25/10/2004 25/10/2019 24/10/2024 £28,000 £18.06 Rent Deposit - £16,800. AGA in place

Unit 5 CJ & JG Ltd CJ’s Café 1,175 109.2 22/12/2017 22/12/2022 22/12/2022 22/12/2027 £20,000 £17.02 Tenant Break Option Guarantors in place

Unit 6a Fiona Terrington The Head Shed 490 45.5 24/6/2015 24/6/2020 23/6/2030 £10,000 £20.41

Unit 6b Mr Mustafizur Rahman Chowdury Bushmead News 674 62.6 13/7/2016 13/7/2021 12/7/2019 12/7/2026 £9,000 £13.35 Tenant Break Option

Unit 7a Mr Sheikh MD Nural Alam Bushmead Fish Bar 620 57.6 8/10/2015 8/10/2020 7/10/2025 £11,500 £18.55

Unit 7b Gurveer Kaur 1,091 101.4 9/11/2015 9/11/2020 8/11/2030 £21,820 £20.00 Rent Deposit - £9,350 plus VAT AGA in place

Unit 8 Vacant Vacant 1,250 116.1 £25,000 £20.00 Vendor to provide 12 month Rental Guarantee

Unit 9 R & N Healthcare Ltd Acorn Pharmacy 1,450 134.7 6/1/2017 6/1/2022 6/1/2022 5/1/2027 £25,200 £17.38 Tenant Break Option Guarantors in place Rent Deposit - £30,240

Unit 10 Harrison Murray Ltd Harrison Murray Estate Agents 1,800 167.2 27/9/2012 26/9/2022 £26,250 £14.58

£261,770

AWULT (RETAIL)8.84 years to expiry and 7.73 years to break. OVERALL INCOME £269,850


COVENANTCO-OPERATIVE GROUP FOOD LIMITED

The Co-Operative Group is the fifth largest food retailer in the UK, operating from over 2,800 local, convenience and medium sized stores. The group is also the largest UK funeral services provider, a major general insurer and a growing legal services business.

The Group employs over 70,000 people across the various business lines with over 4.65 million active members, accounting for 33.5% of total food turnover. In H1 2018, sales increased to £5bn, an increase of 10% compared to 2017 sales of £4.5bn. This reflects a strong performance within the Food business as well as accounting the acquisition of Nisa’s wholesaling operations.

The profit before tax for the period was £26m, up from £14m in 2017. Underlying profit before tax, the core trading performance of the businesses less underlying interest, was £10m, up £7m from 2017.

Operating profit was £40m, in line with last year. Profits are shown after deducting the amount members have earned through the 5% and 1% member rewards, which totalled £35m in the first half of the year (2017: £35m).

In the first half of 2018, The Co-Operative Group opened 45 new food stores and 10 new funeral homes creating over 600 new jobs. They also acquired Simplify Probate to expand the probate business and increase existing support for bereaved families, making Co-Op the largest provider of probate services in the UK.

In the second half of 2018, the group has significantly increased the rate of expansion, opening 60 new food stores and 15 new funeral homes in addition to introducing a revised product base within the Insurance business.

The Group is undergoing rapid expansion in the wholesale market following the recent acquisition of Nisa and five-year commercial deal to supply Costcutter Supermarkets Group. When combined with independent co-operative societies, The Co-Operative Group now supply over 7,700 stores nationwide.

A summary of Co-operative Group Food Limited’s accounts are below:

06/01/2018 31/12/2016

Turnover £7,159,600,000 6,933,400,000

Pre Tax Profits £195,400,000 £154,200,000

Shareholder Funds £1,875,100,000 £1,805,400,000


PROPOSALOffers are sought in excess of £3,375,000 (Three Million Three Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.50% after allowing for purchasers costs of 6.49%

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 03.19

allsop.co.uk

For further information or to make arrangements for viewing please contact:

Jonathan Butcher020 7543 [email protected]

Alex Butler020 7543 [email protected]

Ronnie Morgan020 7543 [email protected]

VATWe understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

EPCEPCs are available in the dataroom.

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/bushmead

bushmead shopping centre, hancock drive, luton, lu2 …€¦ · bushmead shopping centre, hancock...

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