229 HIGH STREET & GANDY STREET EXETER EX4 3NE PRIME FREEHOLD RETAIL & RESTAURANT INVESTMENT FOR SALE

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1 229 HIGH STREET & GANDY STREET EXETER EX4 3NE PRIME FREEHOLD RETAIL & RESTAURANT INVESTMENT FOR SALE

2 INVESTMENT SUMMARY Prime retail and restaurant investment situated in the historic Cathedral and University city of Exeter, the principal commercial centre for Devon. Exeter is a dominant retailing centre with an affluent catchment. Prime location fronting the High Street in close proximity to the Princesshay Shopping Centre. Large retail unit over four floors fronting the High Street let to Urban Outfitters and a prominent restaurant over ground and first floor to the rear, fronting Gandy Street and let to Bill s. Average weighted unexpired lease term of years to expiry. Our clients are seeking offers in excess of 5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.5%, after allowing for purchaser s cost of 6.62%.

3 LOCATION Swansea Cardiff Weston-Super-Mare Bristol Bath M4 High Wycombe Swindon Salisbury Reading M4 Guildford Basingstoke LONDON M25 Exeter is an historic Cathedral and University city located in the south west of England. The city is the main commercial centre for Devon and is located approximately 45 miles (72 km) east of Plymouth, 81 miles (130 km) south west of Bristol and 175 miles (280 km) south west of London. Exeter benefits from excellent transport links being located at the southern end of the M5 which links with the M4 and the national motorway network. To the west of Exeter is the A38 (Devon expressway) giving direct access to Plymouth and the A30 to Cornwall. The A30 also links the A303 to the east, providing a trunk road connection to the M3 motorway and there on to London. A30 A394 Newquay Truro A390 A39 St Austell Barnstaple A30 Dartmoor National Park Plymouth A39 Exmoor National Park Taunton EXETER A38 M5 Torquay A30 Exmouth M5 A303 Weymouth A31 Bournemouth Winchester M3 Southampton Portsmouth Newport Crawley Brighton The city has a comprehensive rail service which links to the national rail network from both Exeter Central and Exeter St Davids. Fastest journey time to London Paddington is approximately 2.5 hours and to London Waterloo 3.5 hours. Exeter International Airport is located 6 miles (10 km) to the east of the city with a range of UK and international flights to destinations that include Geneva, Madrid, Munich, Nice, Dublin and Edinburgh.

4 DEMOGRAPHIC PROFILE Exeter has an estimated primary catchment population of approximately 508,000 people which is boosted significantly by tourism as well as a large student population. South West Tourism Alliance estimates approximately 500,000 staying visitors and over 1.5 million day visitors each year, spending in excess of 166 million per annum. Additionally, Exeter University is one of the top Russell Group universities in the country which together with Exeter College, attracts in excess of 28,000 students. SUBJECT PROPERTY Exeter has an affluent catchment ranking 31st out of the 200 PROMIS Centres in terms of the volume of comparison retail spend available in the catchment area. Exeter is forecast to see above average percentage growth in the available pool of comparison spending between 2016 and Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are significantly above the PROMIS average. Large scale employers in the city include The Met Office along with the University and Devon County Council. Other major businesses represented include EDF Energy and British Telecom.

5 RETAILING IN EXETER SITUATION Exeter is a very established and thriving retail centre providing one of Devon s primary shopping destinations with a total floor space estimated to be in excess of 1.39 million sq ft. The prime retail pitches are located within the pedestrianised section of the High Street between the Guildhall Centre and the John Lewis department store and Princesshay Shopping Centre. Princessshay Shopping Centre was developed by Land Securities Plc and opened in The Centre extends to approximately 530,000 sq ft of retail space, anchored by a 130,000 sq ft Debenhams department store with other retailers including Zara, Top Shop, Hollister, Superdry, New Look and Fat Face. At the other end of the High Street, and on the opposite side to Princesshay is the Guildhall Shopping Centre which provides retail and restaurant space anchored by Primark, Wilko and Sainsbury s. Aviva Investors have recently spent approximately 12 million remodelling the Queen Street restaurant area with occupiers including Gourmet Burger Kitchen, Polpo, Comptoir Libanais and Kupp which has underpinned this location as the destination for A3 within the city. The subject property is situated in a prime position on the northwest side of the pedestrianised High Street within close proximity to both Princesshay Shopping Centre and the Guildhall Shopping Centre. Other nearby occupiers include Marks & Spencer, House of Fraser, H&M, Russell & Bromley and Tesco Metro. The Goad extract plan highlights the subject property in blue.

6 Home Investment Summary Covenant Tenancy Schedule Location Demographics Retailing Situation Rental Investment Comparables VAT EPC Goad Description Proposal Contact Accomodation NORTH For Identification purposes only 229 HIGH STREET & GANDY STREET EX4 3NE PRIME FREEHOLD RETAIL & RESTAURANT INVESTMENT FOR SALE

7 DESCRIPTION The existing buildings of 229 High Street and 32/34 Gandy Street have been extended and amended since their construction in the 1930s. The original building of 229 High Street includes the reuse of a salvaged Elizabethan shop front from North Street. The building also now includes a prominent mural which faces along the High Street. The retail accommodation is arranged to provide sales accommodation over ground and first floor with ancillary accommodation at basement and second floor. The restaurant unit is arranged as ground floor sales with part first floor sales and part first floor ancillary. Both units are let in accordance with the attached Tenancy Schedule. ACCOMMODATION The property comprises 14,264 sq ft in total and is arranged as one retail unit and one restaurant unit. COVENANT A summary of the covenant strength of the two occupiers is highlighted. Tenant Experian Credit Score out of 100 URBN UK Limited 100 Bill s Produce Store Limited 100

8 TENANCY SCHEDULE Address Tenant Term Start Date Lease Info Areas Rent ERV Expiry Date R/R GF ITZA BF 1st F 2nd F Comments 229 High Street URBN UK Ltd t/a Urban Outfitters ,900 1,436 1,492 1,909 1, ,000 ( ZA) 265,500 ( 185 ZA) Composite ITZA stated assuming A/12 on the ground remainder, A/16 on loading bay and A/20 on basement, 1st and 2nd floor. Set back frontage cancelled out by return. Rent capped at no greater than 115% of the previous rent at review. 32/33 Gandy Street Bills Produce Store Ltd t/a Bills ,528 2, ,000 ( psf) 71,500 ( 26 psf) February 2017 rent review outstanding. First half rate, gives WGIA 2,749. RENTAL COMMENTARY Retail rents on Exeter High Street have remained stable over recent years with various transactions reinforcing the rental tone. We set out below a series of comparable evidence for both the retail and restaurant unit. Address Transaction Tenant Date Zone A psf 12/13 High Street OML Goldsmiths June /248 High Street RR Specsavers December High St OML Smiggle September High St OML Pret September U18 Guildhall Centre OML Polpo March U22 Guildhall Centre OML Kupp August U2 Guildhall Centre OML Comptoir Libanais July U14 Guildhall Centre OML Turtle Bay July We devalue the passing rent upon the prime Urban Outfitters unit to a Zone A of , assuming A/12 on the ground floor remainder, A/16 on the loading bay and A/20 on the basement, first and second floor stock. We have off set the setback frontage against the benefit of the prominent return. We devalue the passing rent on the Bill s restaurant to approximately psf which we consider to be reversionary.

9 INVESTMENT COMPARABLES We consider the subject property offers an excellent opportunity to purchase a prime multi-let commercial freehold investment offering a WAULT in excess of 10 years in a dominant retailing centre and would highlight the following comparable transactions that have taken place. Address Tenant(s) Expiry Price NIY Date High Street Various including Jones, Office and Saltrock WAULT of 4.57 years 11.5m 5.25% July & 40 High Street, 13 Martins Lane, Exeter Sketchers USA Ltd WAULT 9.3 years to expiry (4.3 years to break) 3.35m 5.25% July 2016 VAT EPC The property has been elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer of a Going Concern (TOGC). EPC for the property are available upon request. PROPOSAL We are invited to seek offers in excess of 5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT, for our client s freehold interest in the subject property. A purchase at this level will effect a net initial yield of 5.5%, assuming purchaser s cost of 6.62%.

10 For further information, please contact the sale agents, Jackson Criss: DESIGNED BY TCC Jonathan Milburn Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) 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 purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0112 September 2017.