Currys/PC World - CBRE

Currys/PC World 153 Hillsborough Road, Sprucefield, Lisburn, BT27 5UN

Prime Retail Warehouse Investment On the instruction of Andrew Dolliver and Luke Charleton acting as Fixed Charge Receivers

Prime Retail Warehouse Investment

Investment Summary • Located at Sprucefield Regional Centre, 2.5 miles South of Lisburn City Centre which is one of the constituent cities that make up the Dublin-Belfast corridor region with a population of just under 3 million. • Prime single let retail warehouse investment situated in Sprucefield which is regarded as one of the strongest out of town retail locations in Northern Ireland. • The property adjoins the largest Marks and Spencer store in Ireland (220,000 sq ft) and is positioned on the junction with the M1/A1. • Let to DSG Retail Limited t/a Currys/PC World on a full repairing and insuring lease from 11th November 2010 at a rent of £1,149,500 pa until 10th November 2025.

• DSG Retail Limited has an Experian Credit rating of 100/100 and is deemed to be ‘very low risk’. • The unit extends to 52,635 sq ft (4,890 sq m) GIA with 154 car parking spaces and was comprehensively refurbished in 2010. • Site measures 3.21 acres (1.30 hectares). • Held virtual freehold. • We are instructed to seek offers in excess of £14,000,000 (Fourteen Million Pounds) for our client’s virtual freehold interest excluding VAT. A purchase at this level would reflect a net initial yield of 7.70% assuming purchasers costs of 6.73%.

• Unexpired term of 9.25 years.

“ The best out of

town Shopping Park in Northern Ireland ”

Lisa B, Customer Review

Currys/PC World Sprucefield, BT27 5UN

Sprucefield Park

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Sprucefield is located on the Dublin-Belfast corridor with a population of just under 3 million. Currys/PC World Sprucefield, BT27 5UN

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Location Lisburn is Northern Ireland’s third largest city with a population of 71,465 people (2011 Census) and the seventh largest on the Island of Ireland. Lisburn is one of the constituent cities that make up the DublinBelfast corridor region which has a population of just under 3 million. The city also forms part of the Belfast Metropolitan Area which accounts for 37% of the total population in Northern Ireland with 672,522 persons (2011 Census) and is the main employment centre within the Province. Lisburn has excellent communication links being located on the main motorway network. The M1 is the main arterial route between Belfast and the central and western areas of Northern Ireland while the A1 provides motorway access to Dublin.


Communications ROAD

Road Communications to the property are excellent. The property is located 0.3 miles (0.48 km) east of the M1/A1 motorway junction which is the main road linking Belfast (15 minute drive time) to Dublin (1 hour 30 minutes’ drive time) and the West of Northern Ireland. RAIL

The property is 2.6 miles (4.2 km) south of Lisburn Railway Station providing direct links to Dublin city Centre (journey time of 1 hour 45 minutes), Belfast city Centre (journey time of 20 minutes) and the Northern Ireland Railway Network. AIRPORT

The property is well positioned for airports. Belfast City Airport is located 14 miles (22.5 km) to the northeast, Belfast International Airport 16 miles (25.7 km) to the northwest and Dublin Airport 88 miles (141.6 km) to the South. The airports provide regular direct flights to Great Britain, Europe, America and further afield. BUS

The property and immediate area are well serviced by several bus routes. In addition there is a Park and Ride located at Sprucefield Park.

Belfast Metropolitan Area accounts for 37% of the total population in Northern Ireland

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Situation

BALLYCASTLE COLERAINE BALLYMONEY LETTERKENNY

L/DERRY

N13

The property forms part of Sprucefield Regional Centre which is situated 2.5 miles (4.0 km) south of Lisburn city centre with a 5 minute drive time and 10 miles (16.0 km) due south of Belfast city centre with a 15 minute drive time at the junction of the M1 and A1 motorways.

DUNGIVEN

N13

A6 M2 BALLYMENA

N15

A36

LARNE

A26

A6

M2

The Sprucefield Regional Centre includes Sprucefield Park which is located to the north and Sprucefield Centre which is located to the south. The Currys site adjoins the Sprucefield Centre with a gateway connecting the two parks internally.

M22

A5 A31 OMAGH

M2 BANGOR

COOKSTOWN

M5

A32

A2

BELFAST

A29

LISBURN

A4

A55

NEWTOWNARDS

A standalone Frankie & Benny’s restaurant is located beside the Currys unit which shares an access road.

M1

DUNGANNON

A28

CRAIGAVON

ENNISKILLEN

A3

PORTADOWN

A7 A24

A27

ARMAGH

A1

A28 N12

A1

M1 lls bo ro ug

h

Ro

ad

NEWRY

Hi

M1

DUNDALK


DROGHEDA

15 30 45

Sprucefield Park Sprucefield Centre

A1

Sprucefield Plan M1 Sprucefield Park & Ride

West of N. Ireland

M1

A1

Sprucefield Park

Sprucefield Centre Dublin (88 Miles)

Not to scale This plan is published for convenience of identification only and although believed to be correct, its accuracy is not guaranteed and does not form any part of a contract.

Belfast (10 Miles)

Lisburn (2.6 Miles)


Retailing at Sprucefield The Sprucefield Regional Centre is regarded as one of the strongest out of town retail locations in Northern Ireland. Sprucefield comprises two elements, to the south of the Sprucefield roundabout is the Sprucefield Centre which is owner occupied by Marks & Spencers and was opened in 1989. The Marks & Spencer store is the largest in Ireland measuring 220,000 sq ft. The store was extensively renovated and extended in 2007 to provide a major Marks & Spencer food and clothing store with a further furniture store and restaurant. Adjacent to the Marks & Spencers is a retail parade occupied by Boots, Mothercare, Next and Pets at Home. In addition, located within the car park area, is a stand-alone McDonalds drive through restaurant.

The centre provides 1,500 free car parking spaces. To the north of the Sprucefield roundabout is Sprucefield Park (230,000 sq ft) which is owned by Intu and was opened in 2003. This is occupied by a major B&Q store, with units also let to Toys ‘R Us, Argos, Next Home, PC Worldand a major Sainsbury food store. The Park includes 15 acres of development land and long term development plans include a John Lewis Store and 19 additional units comprising a total 540,000 sq ft of retail accommodation.

Sprucefield Centre

Sprucefield Centre


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Planning

Property Description

Site

The unit was developed under planning consent S/1993/0666 granted on the 18th October 1993 and was refurbished in 2010 under planning reference S/2010/0133/F granted on the 19th April 2010.

The property was originally constructed in 1994 as two purpose built retail warehouse units however the building was comprehensively refurbished in 2010 and merged into one single unit. The property measures 52,165 sq ft (4,846.29 sq m) with 154 car parking spaces provided to the front and side of the unit.

The site extends to 3.21 acres (1.30 hectares). The site is generally square in shape and flat in topography.

Planning currently permits the retail sale and ancillary storage of the following types of goods: (a) DIY materials, products and equipment; (b) Garden materials, plant and equipment; (c) Furniture and soft furnishings, carpets and floor coverings and electrical goods; (d) Such other items as may be determined in writing by the Department as generally falling within the category of “bulky goods”.

The unit is of steel frame construction with a concrete floor and half brick/ half-clad external walls with double height double glazing to the front entrance. All the retail accommodation is provided at ground level and internally the accommodation has been fitted out to an excellent standard to incorporate Currys / PC Worlds shop fitting and branding. There are two vehicular and pedestrian access points to the property, one from the Hillsborough Road leading from the Sprucefield Centre roundabout and the other connecting the Currys / PC Worlds car park to the Sprucefield Centre car park.

Y

RWA

OTO

M1 M

EIP

The entrances have the benefit of a security gate and a barrier. In addition the perimeter of the site is surrounded in security fencing. To the rear of the unit is located a service yard for all deliveries.

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Area: Not to scale


Use

Sq Ft

Sq M

Retail Warehouse

52,635

4,890

Car Parking

154 spaces

Not to scale: This plan is published for convenience of identification only and although believed to be correct, its accuracy is not guaranteed and does not form any part of a contract. The landlord has access rights over the access road (shaded green) which is shared with Frankie & Benny’s.


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Tenancy

Covenant Strength

Title

The property is let in its entirety to DSG Retail Limited (No. 504877) on a Full Repairing and Insuring lease for a term of 15 years from 11th November 2010.

Dixon Carphone is one of the largest consumer electronics retailers in Europe employing over 40,000 people in 9 countries. In the UK and Ireland the company operates Currys, PC World, Carphone Warehouse, Knowhow, Geek Squad and Dixons Travel across 1,300 stores.

The property is held by way of a long leasehold of 10,000 years from 9th July 1993 at a ground rent of 5p per annum.

The current passing rent is £1,149,500 per annum.

DSG Retail Limited (No. 504877) has an Experian Credit Rating of 100/100 representing a ‘Very Low Risk.’ Their accounts over the last three years may be summerised as follows:

The lease therefore provides an unexpired term of 9.25 years. The next rent review is due on the 11th November 2020.

DSG Retail Limited (No. 504877)

Year Ending 02/05/2015



Net Worth

£395,900,000

£377,500,000

£301,800,000

Turnover

£4,314,000,000

£4,078,300,000

£3,997,900,000

Pre-tax Profit

£116,800,000

£94,100,000

£62,300,000

Further information is available within the purchasers pack.

VAT The property has been elected for VAT. It is envisaged the transaction will be treated as a TOGC.

Purchasers Pack

EPC

A Purchaser Pack has been produced for prospective purchasers to review due diligence relating to the property.

The building has been rated (B47) under EPC regulations.

A Vendor’s Building and M&E Survey is available and will be transferable to the purchaser upon completion.


The property benefits from a right of way connecting the site to the Sprucefield centre roundabout.

The pack is available upon request or at www.sprucefieldcurrys.com


Proposal We are instructed to seek offers over £14,000,000 (Fourteen Million Pounds) for our clients virtual freehold interest, excluding VAT. A purchase at this level would reflect an attractive net initial yield of 7.70% assuming purchasers costs of 6.73%.

Contact Gavin Elliott Capital Markets

Robert Ditty Capital Markets

T: 028 9043 6750 M: 077 9626 2382 E: [email protected]

T: 028 9043 6917 M: 077 6213 7534 E: [email protected]

CBRE The Linenhall, 32-38 Linenhall Street, Belfast, BT2 8BG


Disclaimer: CBRE These particulars are issued by CBRE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. September 2016.

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