Blackwater Retail Park

Maldon, Essex CM9 4DY

Overview

  • Maldon is a highly affluent Essex town, strategically located 14 km (8.7 miles) east of Chelmsford, 24 km (15 miles) south of Colchester and 79 km (49 miles) north-east of London. The town boasts a 15 minute catchment population of 53,781 people which increases to 94,293 people within 20 minutes (CACI Ltd).
  • The contracted income provides a long weighted average unexpired term of 17.8 years to expiry (15 years to breaks), of which 42.5% is subject to 5 yearly RPI linked reviews (1%-3% pa compounded).
  • Let on FRI terms to 5 occupational tenants namely Aldi, Next, Home Bargains, SportsDirect and Costa Coffee with vendor rental guarantees on 3 vacant units (two deals in solicitors hands), the park will provide a total Day 1 annual rent of £1,008,965, reflecting rents psf between £13.15 and £28.28 psf.
  • The park is situated just to the north of Maldon town centre in Fullbridge, adjacent to the town's largest foodstore in the form of a 9,754 sq m (105,000 sq ft) Tesco Extra. These combine, together with the adjacent Lidl, to create the dominant retail offer in Maldon.
  • Blackwater Retail Park achieved practical completion in September this year and comprises a purpose-built retail warehouse scheme configured across 8 units, providing approximately 5,753 sq m (61,933 sq ft) of highly specified, flexible retail floorspace and parking for 285 vehicles.
  • The property is held Freehold and benefits from an open A1 planning consent with conditions relating to the sale of food and fashion.
Offers are sought in the region of £17,190,000 (Seventeen million one hundred and ninety thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Based on a Day 1 income of £1,008,965 pa a purchase at this level would show the following yield profile, allowing for purchaser's costs of 6.74%.

Initial Yield - 5.50%
Running Yield (Aug 2023) - 5.79%
Running Yield (Aug 2028) - 6.13%
Running Yield (Aug 2033) - 6.52%
Running Yield (Aug 2038) - 6.97%
The running yields above assume average RPI of 3.00% pa is achieved on the Aldi review.

Location

Maldon is an attractive and affluent coastal town, situated 14 km (8.7 miles) east of Chelmsford, 24 km (15 miles) south of Colchester and 79 km (49 miles) north-east of London.

Strong road communications connect to and provide access for the surrounding population including Great Totham, Purleigh, Witham and Tollshunt DArcy. The A414 links directly to Chelmsford in the west, whilst the B1019 provides access into London, via the A12 to the south.

The closest train station is Hatfield Peverel, 8.3 km (5.2 miles) from the town centre, with direct routes into London Liverpool Street, Ipswich and Colchester with fastest journey times of 40 minutes, 45 minutes and 15 minutes respectively.

Socio Economic Profile

Further information can be found within the marketing particulars.

Situation

Blackwater Retail Park is situated in Fullbridge, approximately 0.5 km (0.3 miles) north-east of Maldon town centre, adjacent to the roundabout junction of the A414 and the B1018.

To the west, immediately opposite is a Tesco Extra (Maldon's largest foodstore) together with a petrol filling station and McDonald's, whilst there is a Lidl foodstore adjacent to the south. This critical mass of retail, totalling approximately 18,580 sq m (200,000 sq ft) represents the largest and most dominant in the catchment.

In addition, planning consent has been granted on the island site adjacent to the retail park for a 60 Bed Hotel and 158 sq m (1,700 sq ft) A3 unit at ground floor, for which Travelodge and Greggs have signed Agreements for Lease respectively. This element is anticipated to PC in Q3 2019.

Maldon town centre is situated only a short distance to the south via the B1018, whilst there is an Asda (also known as the Bentalls Shopping Centre) at Heybridge, on the roundabout junction of the B1018 and B1022, 1 km (0.6 miles) to the north.

Retail Provision

Maldon's existing in town retail offer comprises a traditional High Street which provides very limited non-food alternatives. Existing occupiers include WH Smith, Specsavers, Iceland, Poundstretcher, M&S, Costcutter and M&Co.

The out of town provision is focused around the town's three foodstores - Tesco (and the subject property) at Fullbridge, Asda just a short distance further north-east in the Heybridge area and Morrisons, together with Pets at Home & Wickes at Wycke Hill around 3.4 km (2.1 miles) to the south-west.

Maldon has a proud coastal heritage with the town being home to numerous yachting and boating clubs as well as the last remaining Thames Barges, a major local tourist attraction.

Fullbridge
  • Blackwater Retail Park:
    5,768 sq m (62,087 sq ft)
    - Aldi, Next, Home Bargains, SportsDirect, Costa Coffee
  • Tesco Extra:
    9,754 sq m (105,000 sq ft) and Petrol Filling Station

  • McDonald's: 214 sq m (2,300 sq ft)

  • Lidl: 2,322 sq m (25,000 sq ft)
Wycke Hill
  • Morrisons: 4,732 sq m (50,942 sq ft)
  • Wickes: 2,043 sq m (22,000 sq ft)
  • Pets at Home: 625 sq m (6,725 sq ft)
Heybridge
  • Asda: 2,327 sq m (25,000 sq ft)
Further information can be found within the marketing particulars.

Description

The recently completed Blackwater Retail Park provides approximately 5,753 sq m (61,933 sq ft) of purpose built retail warehouse accommodation, on a site totalling approximately 2.6 hectares (6.4 acres).

Arranged in a north facing terrace of 6 units and a west facing terrace of 2 units, around forecourt parking for 285 vehicles (including 12 family and 19 disabled), the scheme provides modern, flexible retail floorplates. With the exception of Aldi all units benefit from 7.5 m (24.6 ft) eaves heights comfortably capable of incorporating mezzanine floors either trading or storage.

Customer access is via the roundabout junction of the A414 and B1018, to the western boundary of the site.

Tenants are currently on-site fitting out their respective units with target opening dates ranging from 11 October to 22 November 2018.

Tenure

The property is held Freehold.

SERVICE CHARGE

A service charge budget has been prepared reflecting costs of £1.50 psf. Further information available on request.

Tenancy

Leases/Agreements for lease have been signed by 5 tenants who are currently fitting out their respective units, whilst Heads of terms have been agreed and solicitors instructed in relation to two of the three remaining units.

We propose that any unit remaining vacant at the point of sale will have a two-year vendor rental, rates and service charge guarantee in place. The total income from the park will stand at £1,008,965 pa, in accordance with the Tenancy Schedule.

Further information in relation to the remaining units and retailers in negotiation is available on request.


Covenant Information

Further information can be found within the schedule below.


VAT

The property has been elected for VAT and it is anticipated that the transaction will be treated as the Transfer of a Going Concern.

PLANNING

Maldon District Council granted consent in November 2017 for the Hybrid application (part full/part outline) comprising demolition of existing buildings and redevelopment of site to provide foodstore, non-food retail units incorporating A1/A3 component, together with hotel; access, servicing, vehicle and cycle parking, hard and soft landscaping and associated works.

Blackwater Retail Park comprises the retail element of the consent which permits Open A1 sales with conditions relating to the sale of food and fashion.

We have identified these conditions below:
  • Unit 1 should have no more than 1,394 sq m (15,005 sq ft) sales floorspace, with no more than 279 sq m (3,003 sq ft) shall be used for the display and sale of comparison goods.
  • No more than 350 sq m (3,767 sq ft) of floorspace in Unit 2 shall be used for the display and sale of food and drink.
  • Units 3-6 only to be used for the sale of non-food goodsexcept for ancillary food and drink sales in up to 10% of one units sale space.
  • No more than 2,060 sq m (22,713 sq ft) floorspace can be occupied by retailers whose operation is predominantly the sale of clothing and footwear goods (but not so as to restrict the sale of sports clothing and sports footwear).
Copies of these documents are available on request.

EPCS

All of the units have Energy Performance Certificates confirming a rating of A.
Copies are available on request.

Proposal

Offers are sought in the region of £17,190,000 (Seventeen million one hundred and ninety thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property.

Based on a Day 1 income of £1,008,965 pa a purchase at this level would show the following yield profile, allowing for purchaser's costs of 6.74%.

Initial Yield - 5.50%
Running Yield (Aug 2023) - 5.79%
Running Yield (Aug 2028) - 6.13%
Running Yield (Aug 2033) - 6.52%
Running Yield (Aug 2038) - 6.97%
The running yields above assume average RPI of 3.00% pa is achieved on the Aldi review.

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NET INITIAL YIELD:
5.5%
PRICE:
£17,190,000
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