High Yielding Mixed-Use Parade With Active Management Opportunities Westgate Street, Ipswich

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1 High Yielding Mixed-Use Parade With Active Management Opportunities Westgate Street, Ipswich +44 (0) I klmproperty.co.uk INVESTMENT LEASING INTERNATIONAL LEASE ADVISORY

2 Investment Considerations Busy pitch Let to national multiple retailers; Bet Fred, Yeomans, Tresspass & Superdrug Potential to grow rents from mainly re-based levels Residential and break-up options Freehold Price: 2,300,000 reflecting a net initial yield of 9% +44 (0) I klmproperty.co.uk 2

3 +44 (0) I klmproperty.co.uk 3 Location Ipswich is the largest town in Suffolk and the administrative centre for the county. The town is one of the most important shopping destinations in East Anglia, located approximately 84 miles north east of London, 58 miles east of Cambridge and 45 miles south of Norwich. The town has excellent road communications being located at the junction of the A12 and A45 trunk roads. There are rail services to London Liverpool Street with the fastest journey time of approximately 1 hour 12 minutes. Norwich International Airport and Stansted Airport are located approximately 47 miles north and 47 miles west of the town respectively. Ipswich s catchment population is approximately 373,000 and an estimated shopping population of 266,000. This is boosted further by tourism in the summer months. Transport and distribution are key sources of employment due to the proximity of the Port of Ipswich and the town s close proximity to the Port of Felixstowe, the UK s busiest container hub. Retailing in Ipswich Ipswich s primary retail is centred along the pedestrianised stretch of Westgate Street and Tavern Street. The town s principle shopping centre, Tower Ramparts, has recently been refurbished and comprises 125,000 sq ft. It is anchored by Boots and new stores for River Island and Pandora. Capital & Regional and Drum Property Group, have recently purchased the Butter Market Shopping Centre and are onsite to provide a 12-screen cinema complex as well as six restaurants and a 20,000 sq ft Pure Gym. This will further enhance Ipswich as a retailing location. Situation The properties have an extensive and prominent frontage to Westgate Street. Major stores include Debenhams, Marks & Spencer and a new Primark store, currently being refitted as a result of acquiring the adjoining premises. Other multiple retailers represented on Westgate Street include WHSmith, Clarks, JD Sports and Card Factory. Description The properties comprise an unbroken parade of 5 retail shops within three buildings. Numbers Westgate Street provide two ground floor units with self-contained offices on the first floor. 41/43 & 45/49 Westgate Street comprise ground floor sales with staff and storage accommodation on the upper floors.

4 +44 (0) I klmproperty.co.uk 4 UNDER OFFER UNDER OFFER North

5 +44 (0) I klmproperty.co.uk 5 Accommodation The properties have been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and the accommodation provides the following net internal areas: Unit Tenant Floor Accommodation Sq ft Sq m Total (Sq ft) /43 45/49 Done Brothers (Cash Betting) Ltd t/a Bet Fred Yeomans Outdoors Ltd t/a Granite Just Recruitment Group Ltd Jacobs & Turner Ltd t/a Tresspass Superdrug Stores Plc ITZA ITZA Kitchen 653 1, , ,600 1,496 Offices Offices 1, ,461 ITZA First Second ITZA First Second Ancillary/ Ancillary Ancillary Ancillary 1,258 2, ,328 2,920 1, ,470 4,975 Total 14,002

6 +44 (0) I klmproperty.co.uk 6 Tenure Freehold. Tenancies The properties are let on five individual full repairing and insuring leases producing a net rental income of 220,000 per annum, in accordance with the schedule below: Unit Tenant Lease Start Lease Expiry Passing Rent PA (ZA/ PSF) Rent Review (Break Clause) ERV (ZA/ PSF) Comment 37 Done Brothers (Cash Betting) Ltd t/a Bet Fred 06/02/ /02/ ,500 ( 51.50) 06/02/ ,500 ( 51.50) 37a (1st Floor) Just Recruitment Group Ltd 20/04/ /04/2017 7,500 ( 5) 7,500 ( 5) 39 Yeomans Outdoors Ltd t/a Granite 12/11/ /11/ ,000 ( 54.50) 30,000 ( 54.50) 41/43 Tresspass Europe Limited 14/12/ /12/ ,000 ( 40 ZA) 14/12/2016 (14/12/2016) 62,000 ( 50) The lease is guaranteed by Jacobs & Turner Ltd. 10% reduction to reflect quantum. The lease is subject to a base rent of 50,000 plus a turnover rent capped at 70,000 until 14th December Further details available upon request. 45/49 Superdrug Stores Plc 24/06/ /06/ ,000 ( 78.50) 65,500 ( 50) 10% reduction to reflect quantum Total 220, ,500

7 +44 (0) I klmproperty.co.uk 7 Covenant Bet Fred, is the world biggest owner-operator bookmaker with over 8,500 employees and 1,350 shops since purchasing the Tote in The accounts for Done Brothers (Cash Betting) Limited are as follows: Date of Accounts 25th March st March th September 2014 Turnover 4,479,240, ,918, ,111,000 Pre-tax Profit 16,374,000 26,811,000 13,967,000 Total Net Worth 64,773,000 92,026, ,429,000 Experian gives a credit rating of very low risk Tresspass, established in 1938, are specialist designers and retailers of outdoor clothing, waterproof jackets, hiking footwear and camping equipment with over 150 stores nationwide. The accounts for Jacobs & Turner Limited are as follows: Date of Accounts 24th June th June th June 2014 Turnover 64,856,802 75,276,427 86,168,808 Pre-tax Profit 2,405,049 4,008,001 4,225,933 Total Net Worth 41,263,237 43,827,272 46,591,961 Experian gives a credit rating of very low risk Yeomans Outdoors, established in 1904, are suppliers of outdoor clothing and camping equipment with over 30 stores nationwide. Sports Direct Plc is the parent company who also own a number of brands including Dunlop, Slazenger, Everlast and Lonsdale and fashion brands including JJB Sports and Field & Trek. Superdrug is the UK s second largest health and beauty retailer currently operating from over 900 stores nationwide. They are now part of the Hong Kong based AS Watson Group The accounts for Superdrug Stores Plc are as follows: Date of Accounts 29th Dec th Dec th Dec 2014 Turnover 1,021,021,000 1,010,212,000 1,058,047,000 Just Recruitment is a recruitment company, founded over 30 years ago, with 6 other offices in East Anglia. Pre-tax Profit ( 3,977,000) 28,982,000 38,044,000 Total Net Worth 106,905, ,235, ,513,000 Experian gives a credit rating of very low risk

8 Rental Analysis The passing rents range from 40 to Zone A. We are of the opinion that the tone is in the region of 50 Zone A. which offers a good discount compared to prime Westgate Street at approximately 100 Zone A. Asset Management The property offers various asset management initiatives including: Re-gear leases with existing tenants Redevelop upper floors above Bet Fred and Yeomans Outdoors. There is an existing self-contained entrance on Westgate Street Break up individual freeholds and sell separately There is limited A3 provision in Ipswich and the planners would consider such uses within this pitch The pitch is tightening up with good interest in the former Next, Westgate Street. 38/40 Westgate Street is under offer to a restaurant operator. EPC VAT A full EPC survey has been conducted and is available upon request. The property is VAT registered. It is anticipated that the sale will be dealt with by a Transfer of a Going Concern (TOGC). Proposal Our client is seeking offers in excess of 2,300,000 (Two Million Three Hundred Thousand Pounds) subject to contract. A purchase at this level reflects the following yields after deduction of usual purchaser s costs of 5.8%: Net Initial Yield: 9% Reversionary Yield: 8.1% Equivalent Yield: 7.9% Contacts Ed Gambarini egambarini@klmproperty.co.uk Rupert Guy rguy@klmproperty.co.uk Simon Harvey sharvey@klmproperty.co.uk INVESTMENT LEASING INTERNATIONAL LEASE ADVISORY