FOR SALE

Modern Purpose Built Retail Warehouse Investment – Significant Asset Management Opportunities

INVESTMENT OPPORTUNITY

The Co-operativeMain Road, Ryton, NE40 3RA

INVESTMENT SUMMARY

• Modern purpose built foodstore totalling 2,162.1 sq m (23,273 sq ft) occupying a prominent frontage onto Main Road with an extensive rear yard and car parking

• Single let to Co-operative Foodstores Limited with surety provided by Co-operative Group Limited, a 5A1 covenant

• Dominant convenience food offering in a densely populated area and established commuter location

• Let on a 35 year lease from 29 September 1984 expiring on 28 September 2019 (c. 2.5 years unexpired)

• Passing rent of £270,000 per annum (£11.60 per sq ft)

• Strong asset management opportunities including reletting, reconfiguration and subdivision potential subject to planning

• Offers in excess of £3,498,000 which reflect a Net Initial Yield of 7.25% after standard purchaser’s costs of 6.50%

NEWCASTLE

A69

A696

A18

9A

189

A1056

A70

68

A1172

Hexham

SUNDERLAND

GATESHEAD

NewcastleInternational Airport

SouthGosforth

Killingworth

Crawcrook

BlaydonPrudhoe

Whickham

KingstonPark Retail

Central Station

Silverlink

Ponteland

Wallsend

RIVER TYNE

TYNE TUNNEL

Tynemouth

Whitley Bay

Seaton Sluice

Hospital

North Shields

South Shields

Jarrow

GOSFORTH

RYTON

Washington

CRAMLINGTON

BLYTH

Morp

eth

Otterburn

Conse

tt

Durham& South

Teesside& South

A1018

A1058

A1058

A193

A191

A191

A190

A192

A192

A1231

A184

A184

A184

A692

A1

A1

A1

A1(M

)

A19

A19

A18

9

A19

A19

4(M

)

A694

A695

B6317

A69

0

Metrocentre

EnglandWales

Scotland

A1

A1(M)

M6

M1

A69

A19 A66

A1(M)

A1(M) M1

M4

M40 M11

M1

M1

M6

YORK

ABERDEEN

CARLISLE

MANCHESTER

LIVERPOOL SHEFFIELD

BIRMINGHAM

BRISTOL LONDON

EDINBURGH

LEEDS

GLASGOW

NEWCASTLE

B6317

B631

5

B6317

B6317

A695

Ryton RUFC

Ryton Towers

Hexham Old Road

Main Road Main Road

R Y T O N

Sta

rgat

e Lan

e

LOCATIONLocation

Ryton is an established commuter town situated approximately 7 miles to the west of Newcastle city centre and 8.5 miles north west of Gateshead town centre. The town forms part of the Tyne and Wear conurbation and has a population of circa 1.1 million (2011 census).

The town is well served by road communications via the A695 link road which connects Blaydon and the A1 (M) 3 miles to the south east and Prudhoe and the A68 approximately 8 miles to the west. The closest rail connection is via Blaydon train station approximately 3 miles to the east which has regular connections to Newcastle with a journey time of 12 minutes. Newcastle International Airport is approximately 8.5 miles to the north and provides daily scheduled flights to both domestic and international destinations.

SituationThe property is situated centrally within Ryton with an extensive frontage to Main Road (B6317). Access is provided via Parsons Drive, connecting to the main car park and service yard to the rear. Main Road forms the town’s main high street and provides a linear focal point to the town’s retail provision.

The property provides the dominant food retail provision within the town. The surrounding area is predominantly residential with nearby occupiers on Main Road including national multiples such as Barclay’s Bank and Sainsbury’s Local in addition to local independents such as a bakery and pharmacy.

The property comprises a detached retail warehouse of steel portal frame construction with part brick and part profile metal clad elevations. Following a fire in 1999, the property was entirely rebuilt and as such is modern in specification providing accommodation perfectly suited to current retail requirements. The sales area is set out entirely over the ground floor with ancillary offices, staff accommodation and plant room facilities at first floor level. The rear of the property comprises a store room, refrigeration units and loading bay access.

Externally the property benefits from an extensive shared car park providing 92 delineated spaces to the front and side of the property. In addition to this there is an ample service yard and loading bay to the rear.

DESCRIPTION

RYTON’S DOMINANT RETAIL PROVISION

CATCHMENT ANALYSIS

Population

15,392 within a 5 minute drive time.

49,564 within a 10 minute drive time.

147,784 within a 15 minute drive time.

Weekly Retail Spend

£1,048,888 spend within a 5 minute drive time.

£3,198,174 spend within a 10 minute drive time.

£9,041,721 spend within a 15 minute drive time.

Weekly Convenience Spend

£670,109 spend within a 5 minute drive time.

£2,114,649 spend within a 10 minute drive time.

£6,156,650 spend within a 15 minute drive time.

NEWCASTLE

A69

A696

A18

9A

189

A1056

A70

68

A1172

Hexham

SUNDERLAND

GATESHEAD

NewcastleInternational Airport

SouthGosforth

Killingworth

Crawcrook

Newburn

ThrockleyHeddon-on-the-Wall

Callerton

Blaydon

High Spen

Burnopfield

Rowlands Gill

Greenside

PrudhoeMickleyMickley

High Mickley

Stocksfield Whickham

KingstonPark Retail

Central Station

Silverlink

Ponteland

Wallsend

RIVER TYNE

TYNE TUNNEL

Tynemouth

Whitley Bay

Seaton Sluice

Hospital

North Shields

South Shields

Jarrow

GOSFORTH

RYTON

Washington

CRAMLINGTON

BLYTH

Morp

eth

Otterburn

Conse

tt

Durham& South

Teesside& South

A1018

A1058

A1058

A193

A191

A191

A190

A192

A192

A1231

A184

A184

A184

A692

A69

A1

A1

A1

A1(M

)

A19

A19

A18

9

A19

A19

4(M

)A694

A695

B6317

A69

0

Metrocentre

5 minute drive time 10 minute drive time 15 minute drive time NE40 3RA

Population of 147,784 within a 15 minute drive time of the property.

Limited retail provision in the

surrounding towns and villages,

particularly to the west and south

of the subject property.

Immobile, convenience focused catchment population with the

number of pensioners exceeding the

UK average and vehicle ownership

below the national average.

Ratio

1:253 sq ft

2,162.12 sq m

23,273 sq ft

ACCOMMODATION

Ground Floor Retail Warehouse

1,893.56 sq m

19,801 sq ft

Car parking spaces

92

First Floor ancillary

322.56 sq m

3,472 sq ft

Total

Parking provision:

RYTON

The passing rent reflects a modest £11.60 psf on an overall basis

TENANCY

The property is let in its entirety to Co-operative Foodstores Limited t/a The Co-operative Food with surety provided by Co-operative Group Limited. The lease is held on a Full Repairing and Insuring basis for a term of 35 years from 29 September 1984 without a break and is subject to five yearly open market rent reviews. The passing rent is £270,000 per annum exclusive as set at the 2015 rent review.

TENUREFreehold.

VATAn option to tax has been made on the property and VAT will therefore be payable on the purchase price. It is anticipated that the sale will be treated as a transfer of going concern (TOGC).

EPCThe buildings has been assessed and has an EPC rating of D (83).

A copy of the Energy Performance Certificate is available upon request.

Indicative Site Boundary Excluded from title but right to park and access Excluded from the ownership

B6317 Main Road

The Co-operative Food Ryton Social Club

COVENANT

Co-operative Foodstores Limited (Tenant)

CRN: 32443R

Co-operative Foodstores Limited is the UK’s fifth largest food retailer with over 2,500 convenience stores. Further information is available at www.co-operativefood.co.uk.

The most recent accounts, for the year ending January 2016, show a Revenue of £284.4m, Pre-tax profit of £12.3m and Net Assets of £403.7m.

Co-operative Group Limited (Surety)

CRN: 525R

The Co-operative Group, established in 1844, is the largest co-operative in the UK with 4.3 million members and provides a variety of retail businesses including foods stores, insurance services, legal services and funeral care. Further information is available at www.coop.co.uk.

The most recent accounts, for the year ending January 2016, show a Revenue of £10.097bn, Pre-tax profit of £81m and Net Assets of £2.954bn.

PROPOSAL

We are instructed to seek offers in excess

of £3,498,000 (Three Million, Four Hundred

and Ninety Eight Thousand pounds) which

reflect a Net Initial Yield of 7.25% after

standard purchaser’s costs of 6.50%.

OUR TEAM

Peter AtkinsonTel: 0191 223 5715Email: peter.atkinson@cushwake.com

Katy PaxtonTel: 0191 223 5752Email: katy.paxton@cushwake.com

Gagan JagpalTel: 0191 223 5709Email: gagan.jagpal@cushwake.com

Richard TurnerTel: 0191 223 5720Email: richard.turner@cushwake.com

DTZ Debenham Tie Leung Limited (the “Agents”) 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 only and do not constitute any part of an offer or contract. (2) Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. (3) The photographs appearing in these particulars show only certain parts and aspects 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. Any areas, measurements or distances referred to herein are approximate only. (4) Where there is reference in these 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 any intending purchaser. (5) No person in the employment of the Agents has any authority to make or give any representation or warranty whatsoever in relation to this property. (6) This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. (7) Unless otherwise stated, no investigations have been made by or on behalf of the Agents regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. March 2017

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