Asset Type: Retail
Address
Homebase, Holt Road, Cromer NR27 9JW
Tenant Information
HHGL Limited, trading as Homebase, was founded in 1979 and is one of the UK’s leading home improvement and garden retailers.
Hilco acquired Homebase from Wesfarmers in May 2018 and have executed a focused turnaround plan, shutting 47 stores and reducing the rent on a further 70 via a Company Voluntary Agreement. This has seen Homebase achieve a £4.1m EBITDA profit with like for like sales up 2.6% and gross margin rate up 2.8% while their share of the DIY market has risen from 2.2% in 208 to 4.6% in 2019.
The retailer recently opened their first new store in 6 years in Cheltenham and is planning to open a significant number of new stores in the next few years, as well as building on its new concepts; DECORATE by Homebase and the Bath store and Kitchens by Homebase showroom.
The subject property is a top performing store for Homebase, as reflected in the Category 1 status (best rating) in the 2018 CVA and has not undergone a rent reduction.
Location
Cromer is a popular coastal town located in North Norfolk, East Anglia, 23 miles north of Norwich, 137 miles north east of London and 77 miles north east of Peterborough.
The town is well connected to the rest of the country via road, rail and air. Main roads providing access to the town include Holt Road (A418) and the Norwich Road (A140) which link directly to Norwich and Kings Lynn.
There is also a railway station providing a connection to Norwich where there are numerous services to the rest of East Anglia, London and other parts of the country.
Property Description
The property was constructed in 2008, and comprises a standalone retail warehouse unit over ground floor level and two mezzanines. The car park with 132 spaces is located in front of the unit and is accessed off Holt Road. To the rear of the property there is a garden centre, conservatory and self contained service yard.
The unit totals 45,779 sq ft (including the mezzanines and garden centre) however, the lease states that an assumed area of 25,000 sqft is to be used for review purposes.
The site comprises 1.383 hectares (3.417 acres).
