Western Way Retail Park

Bury St Edmunds IP33 3SP

Overview

  • Bury St Edmunds is an attractive and growing market town in West Suffolk, established as a dynamic retailing centre, with a current resident population of approximately 41,113 people. (Census 2011)
  • The surrounding population is both affluent and mobile. CACI Ltd report a 15 minute catchment population of 57,352 people which increases to 92,525 people within 20 minutes
  • Western Way Retail Park comprises a newly redeveloped retail warehouse scheme configured in 2 units, providing approximately 5,501 sq m (59,220 sq ft) of attractive, well specified, flexible retail floorspace and parking for 200 vehicles
  • Fully let on FRI terms to 2 occupational tenants, the park produces a current annual rent of £612,375, reflecting low rents of £8.65 and £12.72 psf respectively
  • The income provides an increasingly rare long weighted average unexpired term in excess of 17 years
  • Secured to the excellent covenants of CDS (Superstores International) Ltd and B&M Retail Ltd - 49% of the income is subject to 5 yearly 2% pa compounded fixed increases
  • The property is held Freehold and benefits from a wide bulky goods planning consent
Offers are sought in the region of £11,480,000 (Eleven Million, Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser's costs of 6.71% this would reflect the following yield profile:
Initial Yield - 5.00%
Guaranteed Uplift November 2022 - 5.25%
Guaranteed Uplift November 2027 - 5.54%
Guaranteed Uplift November 2032 - 5.85%

Location

Bury St Edmunds is an attractive and affluent market town which serves as both the retail and cultural centre for West Suffolk. Strategically situated located 47.6 km (29.6 miles) east of Cambridge and 70.2 km (43.6 miles) south west of Norwich, the town boasts excellent transport communications serving the surrounding population.

The A14 links to Cambridge and the M11 motorway to the west and Ipswich to the east. Additionally, the A134 provides access to Norwich in the north east via Thetford and the A11.

A regular train service runs between Bury St Edmunds and both London Liverpool Street and London King's Cross, with a travel time of just under 2 hours.

For information on the Socio Economic Profile of Bury St Edmunds, and its out-of-town retail provision, please see the marketing brochure.

Situation

Western Way Retail Park is situated approximately 2.25 km (1.4 miles) west of the town centre, to the south of the A14 dual carriageway and adjacent to a 6,967 sq m (75,000 sq ft) Asda superstore and petrol filling station.

The surrounding area predominantly comprises retail, trade counter, light industrial and residential uses. West Suffolk College (the University of Suffolk) is found a short distance to the east, towards the town centre, and boasts a student population of over 10,000.

Access to Bury St Edmunds town centre is provided by both the A1302 to the south and the A14 to the north.

Description

The subject property provides approximately 5,501 sq m (59,220 sq ft) of purpose built retail warehouse ground floor accommodation. The west facing terrace comprises 2 units, together with outdoor garden centre, with parking for 200 vehicles (including staff spaces).

Internally the units have been fitted out by each of the tenants to their own individual corporate specification. 6m (19.7 ft) eaves heights allow the installation of mezzanines in both units - currently only The Range has first floor retail space however, which includes a café facility.

Customer access is via a roundabout junction on Western Way, whilst segregated rear servicing is available to both units from Olding Road. Staff parking spaces are included within the service yard.

Tenure

Freehold.

Tenancy

The scheme is let in its entirety on Fully Repairing and Insuring terms to two occupational tenants producing a total annual income of £612,375 pa. Please see the marketing brochure for further information.


Covenant Information

B&M Retail Limited (Company No: 01357507)
B&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. Further details and a summary of their latest accounts can be found in the marketing brochure.

CDS (Superstores International) Limited (Company No: 02699203)
CDS (Superstores International) Ltd, trading as The Range, is now the fastest growing retailer in the UK. With over 140 stores nationwide, they stock more than 65,000 products across 16 different departments, from Homewares and Furniture to DIY and Art Supplies. Further details and a summary of their latest accounts can be found in the marketing brochure.


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.

Environmental Considerations

As part of the development, full remediation of the site was undertaken and signed off by the planning authority. All reports are available upon request.

Planning

Full planning consent was granted by St Edmundsbury Council on the 13 December 2016.

The consent provides for wide bulky goods sales with further specific relaxations and we have identified these in more details below:

Unit 1 - The Range Shall only be used for the sale of: Carpets and floor coverings, household goods and furnishings, furniture and electrical goods and for the sale of DIY maintenance and improvement products for the home, garden and car; camping and bulky leisure goods; and for a maximum of 30% of the floorspace (including the external sales area) for the sale of, hobbies and craft supplies, office supplies, pet food and pet products, Christmas trees and decorations, fireworks and rockets; and ancillary product ranges to all the goods listed above and for use as a café and for no other purpose within Class A1.

Unit 2 - B&M Shall be used for Class A1 purposes only subject to the following conditions/restrictions:
  • No part of the floorspace can be used for the sale of fashion clothing, footwear, watches and jewellery
  • No more than 1,130 sqm (12,163 sq ft) of the net sales area shall be used for the sale of convenience goods
  • No more than 300 sqm (3,229 sq ft) of the net sales area shall be used for the sale of health and beauty products, pharmaceutical and personal products
  • No more than 200 sqm (2,153 sq ft) of the net sales area shall be used for the sale of non-fashion clothing and non-fashion footwear (including sportswear, nightwear, underwear, workman/DIY clothing)
Copies of this document are available on request.

EPC

Energy Performance Certificates have been produced for the units. The ratings are as follows:
  • Unit 1 - Rating A(22)
  • Unit 2 - Rating A(25)

Proposal

Offers are sought in the region of £11,480,000 (Eleven Million, Four Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser's costs of 6.71% this would reflect the following yield profile:
Initial Yield - 5.00%
Guaranteed Uplift November 2022 - 5.25%
Guaranteed Uplift November 2027 - 5.54%
Guaranteed Uplift November 2032 - 5.85%

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NET INITIAL YIELD:
5%
PRICE:
£11,480,000
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