BELLE VALE SHOPPING CENTRE, LIVERPOOL, L25 2RF

Investment Considerations

  • A covered shopping centre providing 257,165 sq ft of retail and leisure accommodation
  • Belle Vale Shopping Centre is the only scheme in the town
  • Strong community and neighbourhood convenience led scheme
  • Key retailers including Wilko, B&M, Home Bargains, Boots and Iceland
  • McDonalds drive-thru restaurant is prominently situated on Childwall Valley Road
  • Adjacent to a 73,000 sq ft Morrisons food store
  • Benefits from three leisure anchors
  • The scheme benefits from positive tenant trading with 12 lease renewals and re-gears in the last 12 months
  • Long leasehold of 999 years from May 2002 at a fixed base rent of £165,000 per annum
  • Annual footfall of approximately 3 million per annum
  • Weighted Unexpired Lease term of 4.17 years to expiry and 3.37 years to break
  • Re-based rents of £25-30 Zone A and affordable all in unit costs
  • 78% of the income secured to national multiple tenants
  • Secure and well diversified income play

Proposal

Seeking offers of £13,000,000 subject to contact and exclusive of VAT.

Net Initial Yield 10.04%
Equivalent Yield 11.22%
Capital Value per sq ft £43.82

Description

Belle Vale shopping centre provides 257,165 sq ft of retail and leisure accommodation trading over ground floor only. The mall is arranged in a linear configuration with one principle mall running south to north to Childwall Valley Road.

The shopping centre has 57 retail units, 3 leisure units and a drive thru-restaurant. The scheme is anchored on a 41,432 sq ft Wilko and 26,127 sq ft B&M, and also benefits from being located directly adjacent a 73,000 sq ft Morrisons food store which provides the principle supermarket for the town centre.

Key national multiple retailers include Home Bargains, Superdrug, Iceland, Farmfoods, Boots, Holland & Barratt, Argos and New Look. Food and beverage operators are represented by Greggs and a prominently located McDonalds drive-thru restaurant. In addition the upper level of the scheme provides three large units with a 33,000 gym, indoor children’s play area and Laser Quest.

The scheme provides the principle retail provision for the district driving the consistent footfall of approximately 3 million per annum.

The scheme benefits from adjacency to Belle Vales principle surface car park, as well as the schemes own roof top providing a total of over 1,000 spaces, and offering free shopper spaces.  

Location

Belle Vale is a residential suburb located 6.6 miles (11 km) from Liverpool city centre.

The town has a primary catchment population of 74,399 and a shopper population of 18,884 people within a 10 minute drive time.

Tenure

Belle Vale Shopping Centre is held long leasehold from Liverpool City Council for a term of 999 years from 17th May 2002 to 16th May 3001.

The ground rent is calculated as the higher of 12.39% of net rents received less permitted deductions or the base rent of £165,000 per annum.

INCOME ANALYSIS

  • A strong and diversified income profile with 78% of the income secured against national multiple tenants.
  • The scheme benefits from a low vacancy rate of 10%, and positive tenant trading with 12 lease renewals and regears in the last 12 months.
  • Re-based rents of between £25 - 30 Zone A providing affordable all in unit costs for retailers.
  • Average weighted unexpired lease term of 4.17 years to expiry and 3.37 years to breaks.

The income breakdown is as follows:

Gross Rent £1,977,116
Landlord Non-Recoverables £417,567
Head Rent £165,000
Net Operating Income £1,394,549
Gross Rental Value £1,774,104
Belle Vale top 5 tenants by income
 

Asset Management

  1. Stabilise Net Operating Income: Drive income by removing landlord irrecoverables on vacant units.
  2. Complete lease renewals and new lettings: There are currently 8 lease renewals in discussion across the scheme and a new letting to Five Pound World which will further drive and stabilise the income.   
  3.  

Further Information

For further information please contact:

Giles Roberts

020 7487 1834
giles.roberts@colliers.com

Becky Hance

020 7344 6841
becky.hance@colliers.com

Hannah Greenland

020 7344 6559
hannah.greenland@colliers.com


Colliers International

Colliers International

50 George Street,
London

W1U 7GA

www.colliersretailcapitalmarkets.com


Misrepresentation Act
Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an off er or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. Colliers International is the licensed trading name of Colliers International Property Consultants Limited. Company registered in England & Wales no. 7996509. Registered offi ce: 50 George Street, London W1U 7GA. October 2019.

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