Columbus Quarter, Walworth Business Park

Andover, Hampshire SP10 5NT

Overview

  • Prominent and highly accessible location adjacent to the A3093, which provides direct access into Andover town centre 3.5km (2.2 miles) to the south west.
  • The purpose built scheme will provide 2,484 sq m (26,733 sq ft) of retail accommodation, including a 2,084 sq m (22,433 sq ft) Lidl which will represent the dominant food offer on the eastern side of Andover.
  • Held on a new 150 year long geared leasehold interest, the scheme will be let to three tenants: Lidl, Starbucks and Greggs.
  • The contracted income will provide an attractive weighted average unexpired term in excess of 23.4 years to expiry and 15.9 years to break.
  • 87% of the income benefits from 5 yearly 2% per annum compounded rent reviews.
  • Total annual rent of £495,625, equating to an average rent psf of £18.54.
  • Construction has started on site and practical completion is anticipated for June 2019.
Offers are invited on a Forward Commitment basis at a price in excess of £8,400,000 (Eight Million, Four Hundred Thousand Pounds) reflecting a net initial yield of 5.25%, assuming purchaser's costs of 6.68% and a net rent of £470,844 pa.

* Rent pa assumes 2% fixed increases on Starbucks and Lidl.

Location

The town of Andover is situated in the county of Hampshire, occupying a strategic location in central southern England. It is located on the A303 trunk road which links to the M3 and serves as one of the main routes from the capital to the West Country. The A34, 11.3km (7 miles) to the east of Andover, connects the south coast ports with the Midlands via the M40 to the north.

Further information on Andover's catchment area and demographics can be found in the marketing brochure.

Situation

Colombus Quarter lies 3.1km (2 miles) to the east of Andover town centre, adjacent to the A3093 which connects directly to the A303 dual carriageway 1.6km (1 mile) to the south.

Andover main line railway station lies 3.1km (2 miles) west of Columbus Quarter.

Columbus Quarter is situated adjacent to Walworth Business Park, which totals approximately 80.9 hectares (200 acres), providing a combination of industrial/distribution, retail and office facilities. The wider surroundings are predominantly residential with a number of significant developments under way which will further grow the catchment to the east of the town.

  • East Anton - 2,500 dwellings planned, c.1600 completed to date
  • Mixed Taylor Wimpey development of residential, retail and community services including a new secondary school
  • Whole development expected to complete by 2027

  • Picket Twenty - 1,200 dwellings
  • Constructed by Persimmon Homes
  • Expected completion by mid 2023

  • Picket Piece - 900 dwellings
  • Constructed by David Wilson Homes
  • Expected completion by spring 2020

  • Harewood Farm - 242 dwellings
  • Applied for planning permission in December 2017
Further information on the existing foodstore provision above 10,000 sq ft within Andover can be found in the marketing brochure.

Description

The development is being undertaken by Kier and will comprise a purpose built stand-alone foodstore of approximately 2,084 sq m (22,432 sq ft), a two unit A3 terrace of around 232 sq m (2,500 sq ft) and a drive thru unit extending to approximately 167 sq m (1,800 sq ft).

Primary customer access will be located on Colombus Way, along the south-eastern boundary of the site. A secondary access will also serve the site to the north west, from Magellan Close. Forecourt parking around the units will provide 176 spaces (1:153 sq ft). The site itself extends to approximately 3.5 acres (1.4 hectares).

Construction has started on site (1st October 2018) and practical completion is due in June 2019.

Tenure

A new 150 year leasehold interest will be granted by Test Valley Borough Council on practical completion of the development.

The lease will be subject to an initial annual pay away to the council of £24,781, thereafter reviewed 10 yearly to the higher of the current passing rent or 5% of the market rent.

Tenancy

Upon completion, the development will be let on FRI terms providing an average weighted unexpired lease term of 23.4 years to expiry (14.9 years to break). 87% of the income (Lidl & Starbucks) benefits from 5 yearly 2% per annum compounded rent reviews. We have detailed the tenancies in the table below:


Covenant Information

  • Founded in 1973, Lidl has risen to become one of the largest discount supermarkets in Europe.
  • Lidl is the seventh largest chain of supermarkets in the UK with a share of the UK supermarket sector of 5.5% (as at 12/08/2018).
  • Of the discount supermarkets, Lidl has performed well, recording a 9.7% rise in like-for-like sales over the 12 weeks ending 15th July 2018.
  • On 15th February 2018, Lidl opened its 700th UK store with its UK portfolio now standing at 710 stores.
  • In 2017-18, parent company Schwarz Gruppe generated global retail sales of 96.9 billion Euros, making it the fourth largest retailer in the world by revenue (Deloitte).
Further financial information for these tenants is available on request.


VAT

The property has been elected for VAT purposes and it is anticipated that the investment sale will be treated as a TOGC.

PLANNING

Planning consent was granted on 5 July 2018 for the erection of a food store (use class A1), drive through café (use class A3) and two additional units shops/food and drink/hot food and takeaway (use classes A1/A3/A5) with associated access, parking and landscaping. Copies of this document are available on request. (Application Ref 17/02995/FULLN).

ENVIRONMENTAL

A Phase I & II Geo-Environmental survey was undertaken by Delta Simons in January 2017 and is available upon request.

Proposal

Offers are invited on a Forward Commitment basis at a price in excess of £8,400,000 (Eight Million, Four Hundred Thousand Pounds) reflecting a net initial yield of 5.25%, assuming purchaser's costs of 6.68% and a net rent of £470,844 pa.

* Rent pa assumes 2% fixed increases on Starbucks and Lidl.

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NET INITIAL YIELD:
5.25%
PRICE:
£8,400,000
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