Homebase 5 Brooks Road, Lewes, BN7 2BY For a Further 15 years

Homebase
5 Brooks Road, Lewes, BN7 2BY
East Sussex CC
Highly Reversionary and Securely Let Retail Warehouse Let
For a Further 15 years
Harveys
Tesco
Caffyns Range Rover
Tesco Petrol
Station
A26
Homebase, 5 Malling Industrial Estate, Brooks Road, Lewes
LOCATION
Lewes is the county capital of East Sussex and located 13.6 km (8.5 miles) east of Brighton. Located off the A27, the main coastal road linking the major conurbations along
the south coast, connecting to the A259 providing access to Folkestone and the Eurotunnel.
Lewes is a popular and historic market town, CACI reports a catchment population of 23,849 within a 10 minute drive time radius of the premises. Affluence indicators are
strong with those defined as Affluent Achievers comprising 32.5% against a national average of 22.7%.
The premises are located on Brooks Road, approximately 150 metres from its junction with Malling Street (A26), Lewes’s principle arterial route. The position provides
convenient access from the town centre and A27 to the south. Surrounding occupiers include Tesco, Aldi, Harveys, Carpetright, Topps Tiles, Caffyns Land Rover and East
Sussex County Council.
DESCRIPTION
Comprising 23,697 sq ft, the unit is of steel portal framed construction with part brick and profile steel cladding under a pitched roof. Customer parking is provided for
approximately 55 vehicles in addition to ample street parking.
TENURE - Freehold
TENANCY
The property is entirely let to Homebase Ltd who took a reversionary lease from 27th October 2008 for a term of 21 years expiring 28/09/2029 (c.15 years unexpired). The
passing rent is £234,630 per annum reflecting £9.90 psf and is subject to 5 yearly upward only rent reviews with an outstanding review effective 29th September 2014,
which is currently being negotiated. The property is reviewed to an Open A1 non-food planning consent.
REVIEW & MARKET RENTAL VALUE
A number of recent transactions support rental growth on the subject property. In particular, the recent East Grinstead Wickes letting for a unit comprising 21,987 sq ft,
with bulky goods planning consent at £15.50 per sq ft.
There are outstanding reviews at the Newhaven Retail Park which has an open A1 non-food planning consent. The most recent letting on the park was the November 2010
letting to Pets at Home at £16.00 per sq ft and the landlord intends to push rents across the park up to this level.
MICHAEL ELLIOTT
Homebase, 5 Malling Industrial Estate, Brooks Road, Lewes
COVENANT
Homebase is a leading home enhancement retailer with more than 340 large, out-of-town stores throughout the UK and Republic of Ireland serving around 64 million
customers a year with more than 17,000 employees. The company is part of Home Retail Group which also owns Argos.
The DIY chain is reported to be closing a quarter of its stores over the next three years through lease expirations and sales to better economise the business and create the
right store estate. Lewes is a top performing unit and is not part of that list so will not be closed.
Homebase Ltd has a D&B rating of 5A1 and for the year ending 01/03/2014 reported a sales turnover of £1.4bn, a net loss of £20.2m and a tangible net worth of £377m.
Like-for-like sales grew by 4.1% over the six-month period to August this year while its improved website helped multi-channel sales rise 12%.
Home Retail Group has a D&B rating of 5A1 and for the year ending 01/03/2014 reported a sales turnover of £5.6bn, a profit before tax of £71.2m and a tangible net worth
of £936m.
PLANNING
The unit has bulky goods consent but is reviewed to Open A1 consent.
PRICE
£5,000,000 reflecting a net initial yield of 4.44% and a reversionary yield of 7.17%, once the September 2014 review has been settled, assuming £16 per sq ft.
FURTHER INFORMATION
For further information or to arrange an inspection, please contact:
Dominic Rowe - 020 7529 5706 / dominicrowe@michaelelliott.co.uk
David Harrison - 020 7529 5705 / davidharrison@michaelelliott.co.uk
Misrepresentations Act 1967 & Declaration:
Michael Elliott LLP for themselves and for the vendors of this property whose agents they are given notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor
constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending
purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Michael Elliott LLP has any
authority to make or give any representations or warranty whatever in relation to this property.
November 2014
MICHAEL ELLIOTT