Retail Warehouse Investment underpinned by Industrial Use Value

Go Outdoors | Hoo Farm Industrial Estate | Kidderminster | DY11 7RA


subject to contract

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  • Freehold retail warehouse investment

  • Let to Go Outdoors Retail Limited

  • Wholly owned by JD Sports (Market Cap £8.2 billion)

  • Low passing rent of £4.27 per sq ft in comparison to industrial rents in excess of £6.00 per sq ft

  • Next rent review March 2023

  • Established commercial location, surrounded by numerous uses including industrial & trade counter

  • 2.16 acre site with a low site cover of 38%

  • Future alternative use & redevelopment potential, should the current tenant vacate

  • Underpinned by industrial use value

  • £2,500,000, subject to contract

  • 5.73% Net Initial Yield

  • Implied Reversionary Yield based upon industrial values – 8.05%

  • Capital Value £70 per sq ft



Kidderminster is located within Worcestershire, approximately 31 km (19 miles) south-west of Birmingham, 24 km (15 miles) north of Worcester and 23 km (14 miles) south-west of Dudley.

The town benefits from good transport links with several major routes running through the town including the A456 and A449 which provide access to Junction 3 of the M5 Motorway, approximately 18 km (11 miles) to the north-east and Junction 6 of the M5 Motorway approximately 23 km (14 miles) to the south. The town is connected to the national railway network with regular services to London Euston and Birmingham with a fastest journey time of approximately 2 hours 33 minutes and 40 minutes respectively. Birmingham Airport is approximately 51 km (32 miles) to the north-east.

The largest town in the Wyre Forest District, Kidderminster has plenty on offer for visitors with it’s many Victorian buildings, through which flows the River Stour and the Staffordshire and Worcestershire Canal.


The property is situated on the popular and established Hoo Farm Industrial Estate which is directly accessed via the A449 (Worcester Road). Kidderminster town centre is approximately 3.2 km (2 miles) to the north.

The estate comprises a mixture of national and local occupiers with a variety of uses including industrial, manufacturing, trade counter and retail sales. Nearby occupiers include Travis Perkins, City Plumbing, Protektor UK, Eurocell and John Tainton.

The property’s main entrance is accessed via Frederick Road with the rear service yard accessed via Edwin Avenue.



The property comprises a stand-alone retail warehouse unit of steel portal framed construction with an overclad profile sheet roof and an approximate floor-ceiling height of 5.5 metres (18 feet) to the warehouse haunching and 5.9 metres (19.36 feet) to the warehouse eaves.

Internally, the unit has been fitted out by the tenant in their usual corporate style providing a large open plan retail area. At the front of the premises is ancillary accommodation including a staff area, office, male, female, disabled toilets and plant room.

The property benefits from 80 surfaced car parking spaces (including 8 disabled) to the front of the site together with a secure service yard to the rear of the site. The tenant has sectioned off and covered an area of this yard with synthetic grass, forming a ‘tent field’ for the display of outdoor equipment.

In June 2021 a refurbishment of the property was undertaken by the tenant at its own considerable cost. This included a brand new Naylors Equestrian concession store within it, offering a wide range of equestrian and country clothing, footwear and everyday equestrian essentials. (See here)

The building has been constructed in two bays and the configuration of the property should provide for subdivision in the future if required.


The property has been measured by BKR Floor Plans and provides the following Gross Internal Area:

Ground Floor 3,313.28 sq m 35,665 sq ft

A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £695 + VAT.



We estimate the site area to be approximately 0.88 hectares (2.16 acres), providing a low site cover of 38%.

A Site Solutions Assessment by Argyll Environmental was obtained in September 2022 which states that the site has ‘Passed’ for both Contaminated Land and Flood Risk and that “no Liabilities have been identified. No further action is required”. A copy of the report is available to download in the data room.


The property benefits from Open A1 non-food planning consent.

The Permitted Use in the occupational lease is “as a retail shop for the sale and display of tents camping caravanning and outdoor activity equipment and related accessories associated ancillary outdoor insulated/protective clothing and footwear (but provided that the retail area for such clothing and footwear does not cover more than 20% of the net floor area of the retail unit) and items ancillary thereto together with ancillary café offices and storerooms or for the retail sale of such goods (excluding food and drink) within Class A1 (a) of the Schedule to the Town and Country Planning (Use Classes) Order 1987”.





The property is let to Go Outdoors Retail Limited on effectively a full repairing and insuring lease, subject to a Schedule of Condition, for a term of 20 years from 18th March 2013, expiring on 17th March 2033 (in excess of 10 years unexpired lease term).

The current passing rent is £152,396 per annum (£46 per sq m / £4.27 per sq ft). There are five yearly upward only rent reviews with the next being on 18th March 2023, to the greater of the passing rent and the Open Market Value, capped at 3% pa compounded.

The original lease did not include any tenant break options. As a result of the Covid-19 Pandemic the tenant re-negotiated the lease terms across their store portfolio with respective landlords and insisted on break options being inserted into their leases. Therefore, in accordance with a Deed of Variation dated 4th December 2020, there is a tenant’s break option on 29th September 2025 and 29th September 2030, subject to not less than six months’ notice.



For the 33-week period ending 29th January 2022, Go Outdoors Retail Limited (Co. No. 12659342) reported the following figures:

Turnover £316,320,000
Pre-Tax Profits £21,494,000
Shareholders’ Funds £45,704,000

Go Outdoors mission is to inspire and equip everyone for life outdoors. Go Outdoors is the UK’s leading outdoor specialist retailer, having the widest in-store range of outdoor clothing, footwear and equipment while serving a broad range of outdoor activities including walking, camping, caravanning, cycling, fishing, running and equestrian. For further information see

The company is a wholly owned subsidiary of JD Sports Fashion Plc.

Established in 1981, the JD Group is a leading global omnichannel retailer of Sports, Fashion and Outdoor brands. The Group now has approximately 3,400 stores across 32 territories, with a strong presence in the UK, Europe, North America and Asia Pacific. For the year ending 29th January 2022, JD Sports Fashion Plc reported a Revenue of £8.6 billion, Pre-Tax Profits of £654.7 million and Total Equity of £2.4 billion.

The accounts state that “our Outdoor businesses had a much improved year with an elevated demand for holidays in the UK and a general recognition of the physical and mental health benefits of spending time outdoors combining to drive a strong demand for outdoor living and cycling categories in particular”…..“we are confident that people will look to maintain a more active lifestyle and that the welcoming and engaging atmosphere in all of our stores will continue to inspire people to spend time outdoors”.

The positive progress in the Outdoor businesses is reflected in the fact that, even though the majority of stores were closed through the first quarter, there were record revenues in Outdoor in the year with total sales of £513.4 million (2021: £359.3 million). Outdoor also returned to profitability in the period with Pre-Tax Profits of £25.9 million.

Following a sharp downturn in sales due to the Covid-19 pandemic, in June 2020 Go Outdoors appointed Deloitte as its administrator to review the business and oversee a restructuring process which involved a sale of the business back to JD Sports for £56.5 million. As part of the agreement, Go Outdoors was granted a licence to occupy the 67 stores at the date of Administration for a period until October 2021 to enable the Company the opportunity to negotiate new leases with the respective landlords. As a result, many stores have been retained at rebased rental levels.

Underlying Value Opportunities

Should the tenant exercise their break option in September 2025 and vacate the property, we suggest there is significant potential to seek change of use for industrial, subject to planning.

There has been exponential take-up and sustained growth in all aspects of the industrial market. A dearth of available stock has driven up rents and capital values to benchmarking levels. 2021 saw average rental growth to over 25%, some way over independent forecasts pre-Covid-19 of 3-5%, that in itself was a strong prediction. Rents have been increased to such a degree that secondary industrial premises are attracting rents over and above new build deals of but 12-18 months prior. The lack of speculatively built property is not only allowing record rental growth in secondary premises, but also offering opportunities for developers to drive rent further still in the delivery of Grade A space.

The Worcestershire industrial market has seen significant activity with exceptionally strong demand and take up and a critically weak immediate supply and insignificant pipeline of development. A result is that developers have decided to speculatively build, for example at St Modwen’s Nunnery Park scheme on the eastern edge of Worcester where buildings of 19,000 sq ft, 27,500 sq ft and 48,000 sq ft completed in 2020 were let almost immediately post lockdown at rents between £6.50 – 6.75 per sq ft on 10-year leases, that are now considered highly reversionary.

St Modwen committed further speculative build at Broomhall Business Park on the southern edge of Worcester with the developer quoting £7.25 per sq ft on a 30,000 sq ft unit. It is understood that a deal has since concluded off a headline rent of £8.00 per sq ft. (Source: Harris Lamb).

With regards to the subject property, if one were to seek change the use to industrial then we are advised that there is a distinct lack of supply of units of a similar size, with strong local/regional demand. The configuration of the unit is such that it should also allow for subdivision if required.

We are advised that the property is likely to command a rent of circa £6.00 per sq ft. Hence, an implied rental value of £213,990 per annum based on industrial values.

Alternatively, the low-density site offers considerable re-development potential for a variety of uses, subject to planning.



The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).


We are instructed to seek offers of £2,500,000 (Two Million, Five Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 5.73%, assuming standard purchaser’s costs of 6.38%.

Please note that a purchaser will be re-charged the costs of the measured survey (£695 + VAT) and searches (£2,032.07) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of £10,000 plus VAT.


Investment Considerations

  1. An opportunity to acquire a freehold retail warehouse investment;

  2. Let to Go Outdoors Retail Limited, a wholly owned subsidiary of JD Sports (Market Cap £8.2 billion);

  3. Low passing rent of £4.27 per sq ft in comparison to industrial rents in excess of £6.00 per sq ft. Next rent review in March 2023;

  4. Situated in an established commercial location, surrounded by numerous uses including industrial and trade-counter;

  5. The property sits on a 2.16 acre site with a low site cover of 38%;

  6. Future alternative use and redevelopment potential;

  7. The property is underpinned by industrial use value;

  8. A purchase at the asking price reflects an attractive net initial yield;

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Singer Vielle   +44 (0) 207 935 7200
Dale Henry +44 (0) 203 701 1356
Daniel Elia +44 (0) 203 701 1353

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Mishcon de Reya LLP +44 (0) 203 321 6519
Henrietta Garner
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