The property is a modern purpose built two unit retail
warehouse scheme totaling 43,378 sq ft GIA which
was constructed in 2004.
It comprises steel portal frame construction with brick, panel elevations and partially glazed frontages. Both units have external canopies overhanging the glazed entrance points.
Unit 1 is let to Matalan totaling 34,975 sq ft and Unit 2 to Sports Direct totaling 8,403 sq ft. Internally, both units are fitted out to each retailer's standard specification and benefit from mezzanine accommodation. The Sports Direct mezzanine is used for both trading and ancillary purposes.
On-site customer car parking is situated to the front and side of the units with a total of 168 spaces providing a ratio of 1:258 spaces per sq ft. The car park is subject to pay & display operated by Smart Parking.
Servicing of the property is via a separate side road to the west of the site.
Freehold site extending to approximately 2.93 acres (1.19 hectares).
The property comprises a modern purpose built scheme totalling 43,378 sq ft GIA across two units which are occupied by Matalan and Sports Direct.
The property is let to Matalan and Sports Direct producing a total income of £563,000 pa.
From completion of the sale, Unit 2 is to be let to Sportsdirect.com Retail Limited on a 10 year term at an initial rent passing of £138,650 per annum (£16.50 per sq ft) subject to a rent review at the end of Year 5 to the higher of Open Market Value or RPI compounded subject to C&C of 1-3%. Assuming a minimum of 2.5% pa RPI indexation the rent per annum will reach £156,870 (£18.67 psf) at the 2023 review.
Based on the above, the property has a weighted average unexpired lease term of 11 years.
Matalan was founded in 1985 and is one of the leading
fashion and homeware retailers in the UK. The company
trades from 227 stores throughout the UK.
In July 2018, Matalan released strong results for the weeks ending May 26, as total revenues grew 5% to £265.9m and online sales rose by 39%. EBITDA was up 11% to £24.8m.
Matalan Retail Limited (02103564) has a Dun & Bradstreet rating of 5A1 with a minimum risk of business failure.
Sports Direct is today the UK's largest sporting goods retailer, and operates a diversified portfolio of sports, fitness, fashion and lifestyle facias and brands.
They operate approximately 700 stores across the UK and continental Europe. Preliminary results were announced in July 2018 with group revenue up by 3.5%
Sportsdirect.com Retail Limited (03406347) has a Dun & Bradstreet rating of 5A1 with a minimum risk of business failure.
We understand the property has been elected for VAT and it is anticipated that the transaction will be treated as a transfer of a going concern.
We are instructed to seek offers in excess of £8,440,000 (Eight Million, Four Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. An acquisition at this level reflects an Net Initial Yield of 6.25% off the Day 1 income rising to an estimated 6.45% in September 2023 assuming 2.5% pa RPI indexation on Sports Direct. Purchaser's costs of 6.68% assumed.