pier street, burnham-on-sea, somerset, ta8 1bt · 2020. 1. 24. · 4 b&m pier street,...
TRANSCRIPT
PIER STREET, BURNHAM-ON-SEA, SOMERSET, TA8 1BT
WELL SECURED RETAIL WAREHOUSE INVESTMENT OPPORTUNITY
/ Burnham-on-Sea is a large seaside town in Somerset within Sedgemoor District Council, located 11 miles south of Weston-super-Mare and 11 miles north of Bridgwater.
/ The subject property is prominently located on the seafront at the junction of South Esplanade and Pier Street.
/ Purpose built retail unit totalling 29,824 sq ft with 313 car parking spaces adjacent, providing a superb ratio of 1:95 sq ft.
/ Total passing rent of £451,500 pa, reflecting a rent of £15.14 per sq ft.
/ Large site area of 3.65 acres, 15% site coverage.
/ Freehold.
/ Open A1 planning consent.
/ The property is let to B&M Retail Ltd (5A1) with in excess of 7 years unexpired.
INVESTMENT SUMMARY
A purchase at this level reflects an attractive 7.00% Net Initial Yield, assuming 6.63% purchase costs.
£6,050,000(SIX MILLION AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT.
Our client is seeking offers in excess of
B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT2
A350
A303
A303A372
A36
A46
A39
A39
A37
A37
A39A39
A39
A358A396
A38
A371
A361
A359
A359
A361
A361
A370
A38
A38
A368
A368
A370
A371
A4
A4
A4
M5
M49
M48
M4
M4M4
M4
M4
M32
M5
M5
BARRY
NAILSEA CORSHAM
CHIPPENHAM
CASTLE COMBE
KEYNSHAMBOX
PORTISHEAD
CLEVEDON
FILTON
PATCHWAY
SIMONSBATH
MOLLAND
WINSFORD
EXFORD
DUNSTER
WIVELISCOMBE
MILVERTON
BISHOP’SLYDEARD
KILVE
WELLINGTON
NORTHPETHERTON
BRIDGWATER
CANNINGTON
HIGHBRIDGE
PURITON
WINSCOMBEBREAN
WOOKEY HOLE
MIDSOMERNORTON
PAULTON
PEASEDOWNST JOHN
FROME
MERE
WARMINSTER
TISBURY
HINDON
SHAFTESBURY
YATTON
CONGRESBURY CHEW MAGNA
LOCKING
BATHAMPTON
BRADFORD-ON-AVON
TROWBRIDGE
GILLINGHAM
CODFORD
LANGPORT
STREET
GLASTONBURY
SPARKFORD
MARTOCK
EVERCREECH
SHAPTON MALLET
WINCANTON
BRUTON
BARRY
NAILSEA CORSHAM
CHIPPENHAM
CASTLE COMBE
KEYNSHAMBOX
PORTISHEAD
CLEVEDON
FILTON
PATCHWAY
SIMONSBATH
MOLLAND
WINSFORD
EXFORD
DUNSTER
WIVELISCOMBE
MILVERTON
BISHOP’SLYDEARD
KILVE
WELLINGTON
NORTHPETHERTON
BRIDGWATER
CANNINGTON
HIGHBRIDGE
PURITON
WINSCOMBEBREAN
WOOKEY HOLE
MIDSOMERNORTON
PAULTON
PEASEDOWNST JOHN
FROME
MERE
WARMINSTER
TISBURY
HINDON
SHAFTESBURY
YATTON
CONGRESBURY CHEW MAGNA
LOCKING
BATHAMPTON
BRADFORD-ON-AVON
TROWBRIDGE
GILLINGHAM
CODFORD
LANGPORT
STREET
GLASTONBURY
SPARKFORD
MARTOCK
EVERCREECH
SHAPTON MALLET
WINCANTON
BRUTON
BURNHAM-ON-SEABURNHAM-ON-SEA
CARDIFF
NEWPORT
BRISTOL
MINEHEAD
TAUNTON
WESTON-SUPER-MARE
BATH
CARDIFF
NEWPORT
BRISTOL
MINEHEAD
TAUNTON
WESTON-SUPER-MARE
BATH
Burnham-on-Sea is a large seaside town in Somerset within Sedgemoor District Council, located 11 miles south of Weston-super-Mare and 11 miles north of Bridgwater. The M5 (junction 22) is located just 2.5 miles east of the town providing direct access to the national motorway network and wider South West region.
Highbridge and Burnham rail station is located to the south-east of the town centre providing direct services to Bristol and Exeter with fastest journey times of 50 minutes and 40 minutes, respectively.
Bristol Airport is located 18.5 miles to the north-east.
LOCATION
CATCHMENT & DEMOGRAPHICSDrive time population
The catchment is moderately affluent with 71.9% classified within the ABC social groups (Oxford Retail Consultants).
The town is a popular tourist destination attracting a significant number of day trips and extended visitor trips, particularly in the summer months. In 2014, over 1 million visitor trips were recorded with a total visitor spend of £45.2 million (SWRC).
Burnham-on-Sea was identified recently as the fourth highest town for house price growth in the UK with average house prices rising by 9.9% from 2016 to 2017 (Rightmove).
Burnham-on-Sea is a popular commuting town for Bristol due to its proximity and strong rail connections. Sedgemoor District Council’s emerging Local Plan has therefore identified the requirement for 850 new homes in Highbridge and Burnham between 2015 and 2032. This is additional to the 918 homes that are in the planning stages or that are currently being developed.
10 minute drive time23,961
15 minute drive time30,890
B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT3
A38
A38
M5
M5
M5
BER
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W R
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BER
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W R
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WESTFIELD RD
ALLANDALE RD
RECTORY RD
PLAYERS LN
TRINITY RISE
STODDENS RD
BR
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LMO
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CAERNARVON WAY
CONWAY CRES
BRANT BREAD
GOLF LINKS RD
SHELLEY DR
THE G
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GROVE RD
LOVE LN
MANOR RD
ST PAUL’S RD GLO
UCESTER R
DW
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LOV
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STODDENS RD
SOU
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AXBRIDGE CL
WESTMERE CRES
PALMERS CL
CRO
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STODDENS LN
STODDENS LN
BEATTY WAY
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OLD STATION APPROACH
ABINGDON ST
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WALLACE WELLS RD
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LAWRENCE CL
ISLEPORT LN
PILLMORE LN
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BURNHAM MOOR LN
EDITHMEAD LN
BRENT ST
BATTLEBOROUGH LN
HARP RD
CHURCH LN
MARKET ST
MARK RD
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ALLANDALE RD
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TRINITY RI SE
STODDENS RD
BR
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LMO
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CAERNARVON WAY
CONWAY CRES
BRANT BREAD
GOLF LINKS RD
SHELLEY DR
THE G
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GROVE RD
LOVE LN
MANOR RD
ST PAUL’S RD GLO
UCESTER RD
WIN
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STODDENS RD
SOU
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PALMERS CL
CRO
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STODDENS LN
STODDENS LN
BEATTY WAY
ROSEWOO
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KILLA
RN
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WORSTON LN
THE FRAN
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BEN
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PRIORY GARDENS
JAYCROFT RD
ADAM STHERN LN
HIG
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PLA
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STEART AVE
OLD STATION APPROACH
ABINGDON ST
LYNTON ST
MEN
DIP
WAY
VICTO
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MAPLE DR
LUN
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R WILLIS CT
MARINE DR
HIGHBURN
CT APEX D
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NORTH AVE
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EAST
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PEPP
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PADD
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OLD WAY PL CLOVER WAY
WO
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WORSTON RD
DONS TAN RD
WALLACE WELLS RD
LAWR
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CL
THE FRANK FOLEY PKW
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POPLES ROW
BENN
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LAWRENCE CL
ISLEPORT LN
PILLMORE LN
BURNH
AM M
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BURNHAM MOOR LN
EDITHMEAD LN
BRENT ST
BATTLEBOROUGH LN
HARP RD
CHURCH LN
MARKET ST
MARK RD
BRISTOL R
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BRISTOL R
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BRISTOL R
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BRISTOL R
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HIGHBRIDGE & BURNHAM-ON-SEA
B3140B3140
B3139B3139
OXFO
RD
STREET
OXFO
RD
STREET
M5 J22
M5 J22
HIGHBRIDGE
WALROW
HIGHBRIDGE
WALROW
BURNHAM-ON-SEABURNHAM-ON-SEA
400 HOMES
270HOMES
The subject property is prominently located on the seafront at the junction of South Esplanade and Pier Street. The main town High Street is located immediately north and the subject property car park forms one of the primary parking facilities for the town ensuring a high level of footfall.
SITUATION
Construction has also commenced on a new 19,419 sq ft Aldi store at Isleport Business Park in Highbridge.
Areas defined by Sedgemoor District Council’s emerging Local Plan for residential development.
There is no other retail warehouse provision within the 15 minute catchment. Other foodstore provision within the 15 minute catchment includes:
RETAIL WAREHOUSE PROVISION
Retailer GIA (sq ft) NSA (sq ft)
Lidl, Oxford Street, Burnham, TA8 1EL
14,884 9,548
Tesco, Ben Travers Way, Burnham, TA8 1EZ
46,787 28,761
Asda, Caxton Road, Highbridge, TA9 3BX
46,166 26,924
Co-operative, Southwell Crescent, Highbridge TA9 3BN
10,742 8,100
B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT4
The property comprises a purpose built supermarket constructed in 1990, which has since been re-fitted for the current tenant’s use. The property totals 29,824 sq ft arranged as follows:
There is a substantial demised car park to the west and south of the store that is sublet to the council who operate it on a pay and display basis. There are 313 spaces, which provides a superb ratio of 1:95 sq ft. In addition, there is a further area of car parking to the east of the store owned and operated by the council that sits outside of the ownership.
This site extends to approximately 3.65 acres, reflecting a low site coverage of 15%.
DESCRIPTION
PLANNINGThe planning consent provides for an Open A1 (including food) consent.
TENUREFreehold.
CAR PARK SPACES
CAR PARK SPACES
PIER STREET
STEART STREET
Floor Sq Ft Sq M
Ground Floor 23,796 2,210.65
First Floor 5,625 522.59
First Floor Plant 403 37.47
Total 29,824 2,770.71
B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT5
GBP (000’s) 25/03/2017 26/03/2016 28/03/2015
Turnover £2,252,265 £1,902,557 £1,526,181
Pre-Tax Profit £198,006 £168,121 £151,063
Net Worth £498,412 £440,372 £333,599
The parent group’s most recent accounts to 31st March 2018 showed a 22% rise in group turnover to £2,976.3 million and a 25% jump in pre-tax profits to £229.3 million. Within these accounts, B&M reported a +4.7% increase in like-for-like revenues in the UK.
TENANT COVENANTB&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below.
TENANCYThe property is let to B&M Retail for a term of 35 years from 30th August 1990, providing in excess of 7 years unexpired. The lease was assigned to B&M in September 2016 from previous tenant WM Morrison Supermarkets Plc. Privity of contract applies.
The passing rent is £451,500 pa, reflecting £15.14 psf. There are 5 yearly rent reviews to OMV with the next review due in August 2020.
The demised car park is sub-let to Sedgemoor District Council for a term of 60 years from 23rd August 1990, expiring 22nd August 2050. The tenant must charge no more in tariffs than usual in respect of public car parks within the tenant’s area of jurisdiction.
B&M PIER STREET, BURNHAM-ON-SEA, TA8 1BT6
Misrepresentation Act 1967
Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that : (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. June 2018.
The property is elected for VAT.
An environmental and ground conditions report is available upon request, which concludes a low risk rating. A detailed Flood Risk Assessment has been undertaken that concludes the property is at very low risk of flooding equivalent to an annual chance less than 1 in 1000 (0.1%).
EPC Rating of C – 75.
VAT
EPC & ENVIRONMENTAL
16250.001 / June 2018 Designed and produced by THE GROUP www.completelygroup.com
PROPOSAL
A purchase at this level reflects an attractive 7.00% Net Initial Yield, assuming 6.63% purchase costs
£6,050,000 (SIX MILLION AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT.
Our client is seeking offers in excess of
FURTHER INFORMATION
Nick RichardsonT: 020 7312 7420 E: [email protected]
Will CollinsT: 020 7312 7405 E: [email protected]