Matalan, Bristol Road

Bridgwater, Somerset TA6 4BH

Overview

  • Bridgwater is the principal industrial and distribution town of Somerset, with excellent communications, being well served by two junctions of the M5 Motorway (23 & 24). The town is approximately 38 miles south west of Bristol, 16.6 miles south of Weston-super-Mare and 11.6 miles to the north east of Taunton.
  • According to CACI Limited, an estimated 66,633 people live within a 15 minute drive-time increasing to over 127,000 people within a 20 minute drive-time.
  • The subject property is situated 1.2 miles north of the town centre and 1 mile north of Bridgwater railway station.
  • The property is held Freehold, has open A1 non-food planning consent and extends to 25,215 sq ft (GIA). The site has a parking provision of 127 spaces (equates to a ratio of 1:198 sq ft).
  • The site extends 1.7 acres (0.7 hectares) and is accessed via Allerton Road with a separate dedicated yard for servicing.
  • Let to Matalan Retail Limited until 3 December 2030, with a tenant only break option in December 2025 and as such the unexpired term to break is 6.4 years and 11.4 years to expiry. The current passing rent totals £203,000 p.a. (£8.05 psf) and there is a fixed increase in December 2020 to £228,375 p.a.
Offers are are sought in excess of £2,544,000 (Two Million, Five Hundred and Forty-Four Thousand Pounds) representing 7.50% IY based on purchaser's costs of 6.39%. The fixed increase at review in December 2020 will provide a reversionary yield of 8.43% and an equivalent yield of 7.76%.

Location

Strategic Location

  • Bridgwater is a historic market town in Somerset situated in the south west of England.
  • An established industrial centre, Bridgwater is located approximately 38 miles south west of Bristol, 16.6 miles south of Weston-Super-Mare and 11.6 miles to the north east of Taunton.
Road
Bridgwater benefits from excellent road communications, with Junctions 23 and 24 of the M5 being within 1 mile to the north and south of the town respectively. Additionally, the A38 and A39 intersect in the town and provide easy access into the wider catchment.

Rail
Bridgwater Rail Station is located 1 mile south of the property and provides regular services to Bristol and London Paddington, via Taunton, with a fastest journey time of 1 hour and 6 minutes and 2 hours 30 minutes respectively.

Bus
The bus station is situated in the heart of the town centre adjacent to the ASDA and provides bus services to the surrounding area.

Catchment and Demographic Profile

  • According to CACI Limited, an estimated 66,633 people live within a 15 minute drive-time increasing to over 127,000 people within a 20 minute drive-time of the subject property. An increase of 7.1% is estimated by 2023 for the 20 minute drive-time catchment and 3.0% by 2028.
  • The catchment boasts an affluent and mobile demographic.
Further information can be found within the marketing particulars.

Situation

Bridgwater Retailing Provision

Bridgwater's non-food out of town provision comprises one main retail park, together with two smaller cluster developments, as well as the subject property. We have summarised these below.

Bridgwater Retail Park
Situated to the south of the subject property, the 98,000 sq ft scheme anchored by Next and M&S Food Hall includes a range of national operators, namely Pets at Home, Currys/PC World, and Argos. Current rents range between £14.00 psf and £18.00 psf.

Leggar Retail Park
Completed in 2018, the LaSalle IM owned development spans 72,000 sq ft anchored by Lidl. Other occupiers include The Food Warehouse and Home Bargains.

The Clink Retail Park
Located adjacent to Bridgwater Retail Park, The Clink Retail Park encompasses c.17,000 sq ft of retail warehouse accommodation. Benefitting from Open A1 Non-Food consent, occupiers consist of Halfords and Pure Gym, with rental levels of £15.00 psf.

Description

The property is a purpose-built unit retail warehouse unit originally constructed in the 1980s and totals 25,215 sq ft GIA over the ground and first floor. It comprises steel portal frame construction with brick and steel cladding elevations. The unit benefits from a pitched, insulated steel clad roof with translucent roof lights.

Customer access to the property is afforded via Allerton Road, which runs directly from Bristol Road. Separate servicing access is situated to the end of Allerton Road.

Onsite customer car parking is situated to the front of the property with a total of 127 spaces, including 5 disabled spaces and 5 parent and child spaces, providing a ratio of 1:198 space per sq ft.

Floor Areas

Further information can be found within the schedule link below.


Tenure

Freehold site extending to approximately 1.7 acres (0.7 hectares).

Tenancy

The property was originally let for a term of 35 years to B&Q from 4th December 1985, so expiring on 3rd December 2020.

Matalan Retail Ltd took assignment of the lease on 23rd March 2010, and a reversionary lease was documented in March 2016, extending the expiry to 3rd December 2030 with a tenant only break option on 3rd December 2025.

The current passing rent of £203,000 p.a. equates to £8.05 per sq ft and there is a fixed increase on 4th December 2020 to £228,375 p.a. (£9.06 psf). Should the December 2025 break not be optioned, there is a further review to the higher of OMV as non food retail use or, OMV for use as a warehouse plus 30%.

The unexpired term certain to break is 6.4 years and 11.4 years to expiry.

Covenant Information

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. Matalan Retail Limited (02103564) has a Dun & Bradstreet rating of 5A1 with a 'minimum risk of business failure'. For 13 weeks to 24 November 2018, the company reported a 'total revenue increase of 4.9% (£308.3m vs 2018 £293.8m)'.

The table in the link below sets out recent account information.


VAT

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.

PLANNING

Planning consent was originally granted by Sedgemoor District Council on 24th April 1985 for the erection of a 'non-food retail warehouse (class 1)' on the former Coates Fencing Site at Bristol Road Bridgwater.

FLOODING

A Flood Risk Assessment Report has been produced by Ambiental dated 18th June 2019, confirming 'the site is located within tidal flood zone 3 but is located within an area benefitting from flood defences. The property therefore has a low present day tidal flood risk, as well as a low surface water flood risk, low groundwater flood risk and low sewer flood risk'. A copy of this report is available on request.

EPC

The property has an EPC of C (86) issued in October 2010 and valid until October 2020. A copy is available on request.

Proposal

Offers are sought in excess of £2,544,000 (Two Million, Five Hundred and Forty-Four Thousand Pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a 7.50% IY based on purchaser's costs of 6.39%. The fixed increase at review in December 2020 will provide a reversionary yield of 8.43% and an equivalent yield of 7.76%.

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NET INITIAL YIELD:
7.5%
PRICE:
£2,544,000
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