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THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ
TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
INVESTMENT CONSIDERATIONS
■ Attractive prominent Shopping Centre located in the heart of Rochdale town centre
■ 26 retail units and former library
■ The property totals 162,862 sq ft (15,130 sq m)
■ Tenants within the Centre include Wilko, New Look, Peacocks, Argos and Ryman
■ Freehold
■ To adjoin new £100 million “Rochdale Riverside” scheme putting the Wheatsheaf Shopping Centre at the heart of the town’s retail pitch
■ Baillie Street entrance has recently undergone significant refurbishment incorporating new escalators and lifts that serve the Centre
■ Total Gross Current Rent Received £673,343 p.a.
■ Numerous asset management opportunities
■ We are instructed to invite offers for the Freehold interest.
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ
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ROCHDALEEXCHANGE
SHOPPING CENTRE
THE POINTRETAIL PARK
ROCHDALEINTERCHANGE
ROCHDALETOWN CENTRE
TOWNHALL
LOCATIONRochdale is situated approximately 10 miles (16 km) north east of the city of Manchester, 13 miles (21 km) east of Bolton, 5.4 miles (8.7 km) north of Oldham, and 18 miles (29km) west of Halifax.
Situated in the foothills of the South Pennines the market town of Rochdale is the second largest of the 10 Metropolitan Boroughs that make up the conurbation of Greater Manchester. The County of Greater Manchester is the largest sub-regional economy outside of London and the economic engine of the North West.
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THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
COMMUNICATIONSThe town benefits from excellent transport links:
ROAD
Rochdale has strong road communications being located just 2.5 miles (4 km) north of the M62 Motorway connecting the town to the M60 orbital Motorway 5 miles (8km) to the west. The M60 outer ring road is located around the city of Manchester which provides further access to the M66 and M61 to the north, M6 to the west and the M1 and A1(M) to the east.
RAIL
Rochdale benefits from a multi-modal railway station that provides both main line and Metrolink services. The Metrolink provides regular services to Manchester city centre via Oldham (43 minutes), whilst the mainline provides regular services to Manchester Victoria (16 minutes), Leeds (1 hour 8 minutes) and Blackburn (56 minutes) amongst others.
AIR
Manchester International Airport is located 25 miles south of the town, offering flights to over 130 destinations both in Europe and worldwide.
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ
DEMOGRAPHICSRochdale has a primary catchment area of 196,000 with an estimated shopping population of 60,000. The town has a below average retiree population with those retired aged 65 and over particularly under-represented. Circa 51% of Rochdale’s employment is in the service sector, with an above average percentage working in manufacturing. Rochdale’s percentage of home owners and car owners are in line with the national average. The town has experienced an above average growth in house prices between 2015 and 2016.
RETAILING IN ROCHDALETown floor retail floorspace in Rochdale is estimated at 0.93 million sq ft. Almost 50% of this floor space is located within the town’s primary shopping centres Rochdale Exchange and The Wheatsheaf Shopping Centre (subject property). Both are situated off Rochdale’s Prime retailing pitch on the pedestrianised section of Yorkshire Street. Prime rents in Rochdale are currently estimated to be £55 psf Zone A. For the size, Rochdale has an above average volume and quality of retail provision (Source: PROMIS).
TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
© Crown Copyright, ES 100004106. For identification purposes only.
SITUATIONThe Wheatsheaf Shopping Centre is situated on the pedestrianised section on the southern side of Yorkshire Street which forms the primary retail thoroughfare in Rochdale. The property has an additional frontage and access onto Baillie Street opposite the Council office, library and Community Centre employing approximately 2,000 people. The centre benefits from strong pedestrian flow and retailers in close proximity including Marks and Spencer, Lloyds Bank, Specsavers, JD Sports, W H Smith and River Island. Rochdale railway station is located less than a mile walk to the south. The new Rochdale Interchange is located on the doorstep of The Wheatsheaf Shopping Centre providing regular bus and Metro Link tram services.
The Centre is situated immediately to the north of the ‘Rochdale Riverside’ development site which has been designed to link in The Wheatsheaf.
DESCRIPTIONConstructed in 1990 The Wheatsheaf Shopping Centre provides a purpose built Shopping Centre totalling approximately 162,862 sq ft (15,130 sq m) of space, arranged over five levels. The ground and first floors provide retail accommodation consisting of 26 units whilst the third floor provides management accommodation and part of the former Library which extends over two floors onto the fourth level. At lower ground level there is a large service yard with two entry points onto Bell Street, whilst the lower level also provides access to the Shopping Centre by way of its frontage onto Baillie Street. A comprehensive refurbishment of the Baillie Street entrance will link The Wheatsheaf Centre to the new scheme. The works included new escalators and lifts which lead directly into the vacant space within the Centre which would be perfect for a larger format retailer.
The car park is located on the roof of the property which is accessed from Bell Street proving 163 car park spaces. The Shopping Centre has attracted a wide array of national multiples which include Argos, Wilko, New Look, Peacocks, British Heart Foundation, Brighthouse and Ryman Stationery.
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
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■ Rochdale Riverside Scheme
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For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011
Rochdale
Experian Goad Plan Created: 06/04/2017Created By: Allsop
Copyright and confidentiality Experian, 2017. © Crown copyright anddatabase rights 2017. OS 100019885
VACANT
FIRST FLOOR
GROUND FLOOR
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
ROCHDALE – A CHANGING LANDSCAPE
LANDMARK TOWN CENTRE SCHEME GAINS PLANNING APPROVAL AS OF 11/04/2017
Rochdale town centre is undergoing a transformation with over £250 million being invested in the town. The £100 million “Rochdale Riverside” leisure and shopping development is the latest phase of regeneration with the scheme set to contain around 25 shops, restaurants and cafés alongside a new 6 screen cinema. Tenants already committed include Marks & Spencer, Next and Reel Cinemas with other national retailers and leisure occupiers set to join.
The new shopping street will deliberately interlink with the Wheatsheaf Shopping Centre which will help draw the main retail and leisure pitch towards the eastern side of Rochdale town centre. The Council will create a long leasehold wrapper over the development land to itself which will secure the development funding alongside planning consent and pre-lets. Planning consent was approved as of 11/04/2017 with work on the new scheme is set to commence later in 2017 with practical completion expected to be in May 2019.
It is the latest phase of regeneration of the town which has included the opening up of the River Roch, a new bus station, the introduction of the Metrolink and a new council office and library development.
Planning approval has also been given in outline for phase two, which will see further investment into the town centre, with new offices, hotel, apartments and commercial uses.
Further information on the regeneration can be found using the following link:
http://publicaccess.rochdale.gov.uk/online-applications/applicationDetails.do?activeTab=makeComment&keyVal=OGSCIGNB00700
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NEW ENTRANCE TO
THE WHEATSHEAF SHOPPING CENTRE
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
Unit Tenant Floor Floor Area Sq M
Floor Area Sq Ft
Lease Start Next Rent Review
Lease Expiry (Next Break)
Annual Rent ERV Comments
SU1 Ashton Collections Limited (t/a Craze)
3 212.4 2,286 01/09/16 31/08/17 £12,000 £18,000 Rental inclusive of service charge and insurance. New 1 year lease agreed at £12,000 pa. Landlord rolling break option after 6 months.
SU2 Trang Nguyen (t/a Modern Nails)
1 & 3 86.3 929 05/03/07 Monthly £10,862 £9,000 Month to month licence, inclusive of service charge, insurance and rates.
SU3 Samila Kauser (t/a Beauty Zone)
3 84.4 908 30/11/15 29/11/2020 (29/11/2018)
£15,000 £20,000 If tenant break option not exercised, tenant benefits from 3 months rent free. Stepped rental increases: 30/11/15 - 29/11/18 £15,000 pa, 30/11/18 - 29/11/19 - £18,000 pa and 30/11/19 - 29/11/20 - £19,000 pa. Rental deposit of £3,750 plus VAT.
SU4 Solo Fashions Limited (t/a Solo Fashion)
1 & 3 194.5 2,094 25/03/11 25/03/13 £- £22,000 Tenant pays insurance with a capped service charge of £6,000, which is not documented on the lease.
SU5&6 Vacant 1 & 3 404.8 4,357 £- £41,000
SU7 Vacant 3 79.2 852 £- £14,000
SU8 Partners The Stationers Limited (t/a Ryman)
3 209.5 2,255 09/12/02 08/12/17 £35,000 £24,000
SU9 Twodale Limited (t/a Russells Café)
1 & 3 171.1 1,842 11/08/05 10/08/20 £33,000 £21,000 Tenant to remit rates savings by way of additional rent.
SU14 Vacant 1 & 3 287.5 3,095 £- £25,000
SU15/16 Genus UK Limited (t/a Select)
1 & 3 419.8 4,519 24/06/14 24/06/19 23/06/2024 (24/06/2019)
£40,000 £48,000 Stepped rental increases: 24/06/15 - 23/06/17 £20,000 pa, 24/06/17 - 23/06/19 £40,000 pa.
SU17 Briwsers Warrington limited (t/a Browsers)
3 117.0 1,259 19/07/16 18/07/2017 £- £19,000 Tenant pays 25% service charge and monthly insurance instalment paid on the 1st day of each month in advance.
SU18 Riasat Ali (t/a Ecig & Gadget shop)
3 & 4 62.6 674 29/09/15 28/09/2016 £7,200 £8,000 Rental inclusive of service charge and insurance.
SU19 Tariq Pervez (t/a Strawberry Garden)
1a, 3 & 4 405.7 4,367 14/03/16 13/03/2017 £14,400 £31,000 New 1 year lease agreed at £14,000 pa. Mutual break option at 3 months.
SU20 Mohammed Abbas (t/a Swagger)
3 & 4 189.1 2,035 02/11/16 01/11/17 £10,800 £16,000 Rental inclusive of service charge and insurance.
SU22/32/33 New Look Retailers Limited (t/a New Look)
4 773.2 8,323 27/01/03 26/01/18 £110,000 £84,000 Lease requires the landlord to pay the income from the roof level scheme car park into the service charge amount.
SU23 Vacant 4 71.4 769 £- £15,000
TENANCY SCHEDULE
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
Unit Tenant Floor Floor Area Sq M
Floor Area Sq Ft
Lease Start Next Rent Review
Lease Expiry (Next Break)
Annual Rent ERV Comments
SU23A Harvey & Thompson Limited (t/a Harvey & Thompson)
4 116.7 1,256 25/12/16 25/12/21 24/12/2026 (25/12/2019) (25/12/2023)
£20,000 £18,000
SU24 Vacant 4 280.3 3,017 £- £25,000
SU31 Caversham Finance Limited (t/a Brighthouse)
4 329.1 3,542 22.02.2017 21.02.2020 £25,000 £22,000 Service charge capped at £10,000.
SU34 Rochdale Town Centre Management Limited
4 95.8 1,031 29/11/16 28/11/19 £4,200 Rental inclusive of service charge and insurance.
LSU1 Peacocks Stores Limited (t/a Peacocks)
3 730.7 7,865 03/09/12 31/12/18 £60,000 £69,000 No service charge is paid.
LSU2/5 (level 1 & 3) & SU10
Wilko Retail Limited (t/a Wilko)
1 & 3 1955.6 21,050 09/10/15 08/10/18 £172,231 £150,000 Stepped rental increases: 09/10/16 - 08/10/17 -£172,231 and 09/10/17 - 08/10/18 - £197,231. Tenant to pay 50% of any reduction achieved on rates payable below £52,769.20 from date of reduction. Rental inclusive of service charge and insurance.
LSU2/5 (level 4)
Vacant 4 924.5 9,951 £- £2,785
LSU3 British Heart Foundation (t/a British Heart)
1 & 4 638.0 6,867 10/07/09 09/07/19 £55,000 £61,000 Service charge capped at £10,000 pa.
LSU4 & (part) rear LSU1
Argos Limited (t/a Argos)
3 & 4 990.4 10,661 24/06/16 23/06/17 £- £106,000 Landlord to receive 50% on any savings on the current £29,174 rates payable. Rental inclusive of service charge and insurance.
LSU6/7 Vacant 1, 3 & 4 2546.9 27,415 £- £168,000
Former Library Vacant 5 & 6 2497.7 26,885 £- £50,000
Management Offices
Bedell Corporate Trustees Ltd 5 101.7 1,095 09/05/09 08/05/24 £- £- No rental charged at present.
Mall Income Shoppertainment Management Limited
0.0 22/12/15 21/12/18 £35,000 £35,000 Estimated 2017 net 25% of commission.
Car Park Spaces Rochdale Borough Council (t/a RDA)
0.0 £2,250 £2,250 9 spaces at £20.83 plus VAT per space, per month.
Car Park 163 Spaces
Car Park 0.0 £1,400 £1,400 Projected net Income 2017.
80 Yorkshire Street
Newride Limited (t/a iSmokeKing.com)
154.5 1,663 16/12/16 15/12/19 £10,000 £10,000 In the event of the break clause 16/12/2017 not being exercised the Tenant will benefit from a rent free period 16/12/2017 - 15/01/2018 and 16/12/2018 -15/01/2019.
Total 15,130.4 162,862 £673,343 £1,135,435
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ TOWN CENTRE SHOPPING CENTRE WITH ASSET MANAGEMENT OPPORTUNITIES
LANDLORDS SHORTFALL
The Landlord’s current net operating income is -£151,964.In addition, the empty rates payable by the Landlord equates to £187,031 pa.Further information can be found within the dataroom.
TENUREFreehold
ASSET MANAGEMENTThere are a number of opportunities to enhance the existing property and maximise the current income that a potential purchaser could pursue both in the short and medium term once the “Rochdale Riverside” scheme is complete.
SHORT TERM
• Letting the vacant units and therefore immediately reducing the rates and service charge liabilities
• Introducing a rates mitigation scheme to reduce liabilities
• Letting the former library space to a gym or other leisure occupier
MEDIUM TERM
• Various internal reconfiguration and refurbishment options including creating an anchor unit (proposed initiatives can be found within the dataroom)
• Working further with the local council to complement the Wheatsheaf Centre further into the new leisure scheme
• Regearing with key retailers within the centre
• Improve the tenant line up within the centre
• Growing the rents from the current rental level
• Formalising the service charge and insurance arrangements to negate shortfalls
PROPOSED GROUND FLOOR PROPOSED FIRST FLOOR
THE WHEATSHEAF SHOPPING CENTRE, ROCHDALE, OL16 1JZ
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 04.17
PROPOSALWe are instructed to invite offers for the Freehold interest.
EPCEPCs are available upon request.
VATIt is anticipated that the transaction will be treated as a transfer of going concern (TOGC).
DATAROOMFor access to the Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/rochdale
For further information or to make arrangements for viewing please contact:
www.allsop.co.uk
Alex Butler020 7543 [email protected]
Liam Stray020 7543 [email protected]
Jonathan Butcher020 7543 [email protected]