romford rm7 0ae prime greater london retail park...

PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY

ROM VALLEY WAYRETAIL PARK

ROMFORD RM7 0AE

■ Romford is a town located in Greater London, within the London Borough of Havering. The town is located approximately 16 miles north east of Central London and 18 miles south west of Chelmsford.

■ Within a 10 minute drive time of the subject property, CACI estimate thepopulation to be 319,270. This increases to 831,969 within the 20 minute drive time catchment.

■ The property is situated just south of the town centre and shares a road junctionwith the access to Queen’s Hospital. There is also a Morrisons/Residentialdevelopment diagonally opposite.

■ The subject property consists of five units, totalling 67,884 ft² across four retailwarehouse units and a restaurant.

■ The property is fully let on five FRI leases and currently produces a total rent of £1,324,829 pa, reflecting £17.29 – £23.38 per ft² on the retail warehousespace and £23.69 per ft² on the restaurant.

■ The retail park has a weighted average unexpired term of 11.2 years to expiry and 10.6 years to breaks.

■ We are instructed to seek offers in excess of £20,030,000 (Twenty Million andThirty Thousand Pounds) for this freehold interest, subject to contract. A purchase at this level would reflect a net initial yield of 6.25%, assuming purchaser’s costs of 5.80%.

INVESTMENT SUMMARY

ROM VALLEY WAY RETAIL PARK ROMFORD RM7 0AE01

PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 02

QUEEN’S HOSPITAL

HOMEBASE

TOWN CENTRE

SNOW AND ROCK

THE BREWERY

MORRISONS/RESIDEVELOPMENT

RESIDENTIAL DEVELOPMENT SITE

ROM VALLEY WAYROM VALLEY WAY

RETAIL PARK

A13T

A13T

A501

A205

A100

A102

A202A282

A127

A414

A406

A406

A406

A503

A5

A3

A2

A2

A1

A10

A10

A10

A12

A12

A12

A12

A11

A20

A20

A23

A1203A1020

28

29

30

31

26

1A

1B

A205

27/6

1

2

M25

M25

M25

M11 M25

Dartford

Dagenham

Rainham

Belvedere Thur

LondonCity Airport

Bexleyheath

Sidcup

Bromley

Poplar

EastDulwich

StratfordBarking

Ilford

Woodford

Romford

Upminster

Enfield

LONDON

Chigwell

Loughton

EastBarnet

ROM VALLEY WAY RETAIL PARK

A125

ST EDWARDS W

A118

MAIN ROAD

A

LONDON ROAD

ST

ED

WA

RD

S W

WATE

RLO

O R

D

A1251 T

HURLOE

GD

S

M

ER

CU

RY

GD

S

A124

RUSH GREEN ROAD HORNCHURCH ROAD

ROM

VALLEY WAY

MA

VN

EY

RO

AD

MAVNEY ROAD

CO

LLIER

RO

W L

ANE

B175

PETTITS LANE N

PETT

ITS LA

NE

OW LN

O

LDCHURCH RD

A12

A12

Romford

Romford is a town located in Greater London, within the London Borough of Havering. The town is locatedapproximately 16 miles north east of Central London and18 miles south west of Chelmsford.

The town benefits from excellent road and transport communications. The A12 runs to the north of the town, providing a direct route to central London and Chelmsford. Romford also benefits from easy access to the M25 at Junction 28, located 5 miles to the north east of the town.

Romford is easily accessible via train. Greater Anglia trains provide services from Romford to London LiverpoolStreet in a journey time of approximately 25 minutes.

London City Airport is located 10 miles to the south west of Romford. London City airport provides flights to a number of European destinations, serving approximately 3.3 million passengers a year.

Rom Valley Way Retail Park is located in a prominentposition on the A125 (Rom Valley Way), adjacent to a40,097 ft2 Homebase and a 8,500 ft2 Snow + Rock unit.The property is opposite Queen’s Hospital and afoodstore / residential development site.

The retail park is within walking distance from the towncentre, with the train station being located 800 metres to the north and the main high street approximately onekilometre to the north.

LOCATION

SITUATION


Within a 10 minute drive time of the subject property, CACI estimate the population to be 319,270. This increases to 831,969 within the 20 minute drive time catchment. The population is forecast to grow as follows:

Within a 20 minute drive time, gross family income is above average, with 74.5% ofhouseholds earning over £30,000 per annum, compared to a national average of 61.9% (CACI).

DEMOGRAPHICS

DESCRIPTION

DRIVETIME FROM ROM VALLEY WAY RETAIL PARK

5MINUTES

10MINUTES

15MINUTES

20MINUTES

30MINUTES

GBAVERAGE

5 year Population Growth 2014-2019 5.8% 6.9% 7.3% 7.2% 5.7% 2.8%

10 year Population Growth 2014-2024 11.2% 13.2% 14.0% 13.6% 11.1% 5.1%

UNIT TENANTAREA

M² FT²

1 MOTHERCARE UK LIMITED 2,772.5 29,843

2 CARPETRIGHT PLC 1,079.9 11,624

3 PIZZA HUT (UK) LIMITED 309.8 3,335

4 B&M RETAIL LTD 1,208.8 13,011

5 PETS AT HOME LIMITED 935.6 10,071

TOTAL 6,306.6 67,884

The subject property consists of five units, built over three phases and totals 67,884 ft² of gross internal retail and restaurant floor space. Phase one was built in 1988 and includedunits 1 and 2, phase two was built in 1998 and included units 4 and 5, and phase threeinvolved construction of the Pizza Hut unit in 2005.

B&M are currently fitting out unit 4 and are looking to open for Christmas trading.

The site comprises approximately 4.29 acres (1.73 ha) giving a site cover of 36.3%.

The retail park benefits from 260 car parking spaces, which equates to a car parking ratio of 1:261 ft2.

PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY 04

A118 M

AIN R

OAD

A125 NO

RTH ST

A125 THURLOE

GD

NS

A125 ROM

VALLEY WAY

A124 RUSH GREEN ROAD HORNCHURCH ROAD

L ONDON ROAD

WATE

RLO

O RD

OLD CHURCH RO AD S

OU

TH

ST

BRENTW OOD ROAD

EASTERN RD

CARLTON RD

VICTORIA ROAD

HEATH PARK RD

FAIRHOLME AVE

BA

LGO

RES LN

SLEWINS LN

UP

PR

BR

EN

TW

OO

D R

OA

D

OSBORNE ROAD

CRANHAM ROADRomford

ROM VALLEY WAY RETAIL PARK

8

9

7

6

12

4

5

3

A12RETAIL WAREHOUSE PROVISION IN ROMFORD:Retail warehouse supply in and around the town is estimated at 1.12m ft² (Trevor Wood).

The map opposite illustrates the main retail warehousing schemes in Romford:

■ Rom Valley Way cluster - Immediately to the north of the subject property there is a Homebase and Snow & Rock which total 48,500 ft² of retail warehousing. Rents are £18.35 and £18.25 per ft² respectively.

■ The Brewery - This mixed use retail and leisure development totals some 530,000 sq ft. The retail element benefits from an open A1 non food consent.Occupiers on the scheme include TK Maxx, Hobbycraft, Gap, JD Sports, HomeSense and Boots and it is anchored by a Sainsbury’s foodstore. Rents on 10,000 ft²units are around £30 per ft².

■ Eastern Avenue Retail Park – This bulky goods park comprises some 110,000 sq ft with occupiers including Currys, PC World, Dunelm, CarphoneWarehouse and Poundstretcher. Top rents for the retail warehousing is in the region of £23.00 per ft².

■ Matalan, North Street - This is a stand alone unit on the north side of the town centrecomprising 39,640 ft² let at £16 per ft².

■ Gallows Corner Retail Park - This 92,000 sq ft bulky goods scheme includes Halfords,Furniture Village, DFS, Magnet, Harveys, Next and Argos Extra. Top rents are around£35 per ft².

■ B&Q Warehouse, Gallows Corner – This property sits diagonally opposite GallowsCorner Retail Park on the A12 and comprises 72,000 ft². The passing rent is £18.50 per ft².

■ B&Q Warehouse, Roneo Corner – Just to the south of the subject property onHornchurch Road, and adjacent to a Tesco Extra, this is a standalone B&QWarehouse of 102,000 ft², with a passing rent of £18.25 per ft².


1

2

3

Dunelm

Eastern Avenue Retail Park

Matalan

4

5

6

Gallows Corner Retail Park

Snow + Rock

The Brewery

7

8

9

Homebase

B&Q Warehouse

B&Q Warehouse

The Seedbed Centre

The Seedbed Centre

El Sub Sta

River Rom

Wei

r

THE MALTI

El Sub Sta

PLANNINGUnits 1 and 2 (Mothercare and Carpetright):

These premises shall not be used other than for the retail sale of the following:■ Home improvement products: “Do It Yourself” goods■ Hardware and plumbing, building supplies■ Furniture, furnishings■ Carpets and floor coverings■ Electrical goods■ Motor accessories■ Garden and associated products and ancillary items■ and/or the occupation by Children’s World (now Mothercare) for the sale of any

combination of maternity wear, baby goods, children’s shoes and clothes, toys andeducational crafts, books, party equipment, furniture and furnishings and ancillary uses.

Units 4 & 5 (B&M and Pets at Home):

These units shall be used for the sale of in any combination (as the retailer or retailers shall chose) of:■ DIY goods■ Furniture and furnishings■ Carpets and floor coverings■ Motor accessories, cycle & cycle parts and accessories■ Gas and electrical goods and appliances■ Pets, pet food and pet products■ Office equipment and other associated products■ Footwear and sports apparatus and other ancillary products

In addition, unit 4 (B&M) has recently been granted permission for the sale of food (excludingfresh or frozen goods) and drink products limited to a gross internal floor area of 120 m2.

Unit 3 (Pizza Hut):

This unit is subject to a Class A3 restaurant consent.

Within any of the relevant consents, there is no upper floor space limit specified for any of the units on the retail park. Furthermore, there is no minimum unit size restriction,so internal subdivision is acceptable without requiring further planning permission.

Copies of the planning permission are available on request.

06PRIME GREATER LONDON RETAIL PARK INVESTMENT OPPORTUNITY


Morrisons is bringing forward plans for redeveloping the current ice rink site off RomValley Way into a new Morrisons foodstore with new homes and a petrol station.

The scheme will comprise a major new modern and bespoke Morrisons foodstore(81,500 sq ft gross) with Customer Café, pharmacy, dry cleaners etc and will include:

■ Approximately 300 new jobs with training■ A new petrol station and car wash■ New homes – current plans are for 65 flats and houses, including a mix

of 1, 2 and 3 bed properties■ Approximately 500 car parking spaces across the site■ Financial investment to enable the Council to build the new ice rink, swimming

pool and leisure centre on the Mercury Gardens site in Romford town centre

The ice rink has subsequently been demolished.

MORRISONS DEVELOPMENTOPPOSITE ROM VALLEY WAY RETAIL PARK

UNIT TENANT AREA FT² PASSING RENT RENT PSF START DATE EXPIRY DATE RENT REVIEW COMMENT

1 MOTHERCARE UK LIMITED 29,843 £581,959 £19.50 06/06/2013 06/06/2028 14/05/2016 Lease extension recently agreed.

2 CARPETRIGHT PLC 11,624 £203,420 £17.50 24/06/2013 20/06/2021 26/06/2016

3 PIZZA HUT (UK) LIMITED 3,335 £79,000 £23.69 04/11/2005 03/11/2030 04/11/2015 Tenant break option 03/11/2020.

4 B&M RETAIL LTD 13,011 £225,000 £17.29 23/10/2014 22/10/2024 23/10/2019New 10 year lease. Tenant fitting out. Vender to top-up 21months rent free. The Rent Review is capped at 2% PAC.

5 PETS AT HOME LIMITED 10,071 £235,450 £23.38 09/02/1998 08/02/2023 09/02/2018

TOTAL 67,884 £1,324,829

The property is subject to five full repairing and insuring leases with a total income of £1,324,829 pa. The average weighted unexpired lease term is 11.2 years to expiry and 10.6 years to breaks.

TENANCIES


TENANTS’ COVENANTSThe property income is secured against five national multiple retailers. We have summarised their most recent accounts below:-

TENUREFreehold.

VATThe property has been elected for VAT and it is anticipated the sale will be treatedas a transfer of a going concern.

TENANT ACCOUNTS YEAR ENDING TURNOVER £000S PRE-TAX PROFIT £ 000S NET WORTH £ 000S D&B RATING

MOTHERCARE UK LIMITED 30/03/2013 570,638 -12,071 27,634 4A1

CARPETRIGHT PLC 26/04/2014 447,700 -7200 2,500 5A1

PIZZA HUT (UK) LIMITED 01/12/2013 230,106 -968 42,085 5A1

B & M RETAIL LIMITED 31/12/2012 935,229 88,323 171,867 5A1

PETS AT HOME LIMITED 28/03/2013 586,350 77,707 382,537 5A1


ComingSoon!

Artist impression of B&M Fascia

COPYRIGHT © JONES LANG LASALLE IP, INC. 2014. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of JonesLang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of anyinaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. October 2014.

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FURTHER INFORMATIONFor further information and in order to arrange an inspection, please contact:-

Jonathan Perkins020 7087 5376 (Direct)07884 186881 (Mobile)[email protected]

Robert Cosslett020 7399 5371 (Direct)07884 184415 (Mobile)[email protected]

PROPOSALWe are instructed to seek offers in excess of £20,030,000 (Twenty Million and Thirty Thousand Pounds) for this freehold interest, subject tocontract. A purchase at this level would reflect a net initial yield of 6.25%,assuming purchaser’s costs of 5.80%.

romford rm7 0ae prime greater london retail park...

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