PRIVATECLIENT 49/52 PYLE STREET & 22 SOUTH STREET NEWPORT ISLE OF WIGHT PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED

PRIVATECLIENT 49/52 PYLE STREET & 22 SOUTH STREET NEWPORT ISLE OF WIGHT PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED

49/52 PYLE STREET & 22 SOUTH STREET, NEWPORT, ISLE OF WIGHT, PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED SUBJECT PROPERTY SOUTH STREET RETAIL BUILDING ST THOMAS SQUARE AND CHURCH ST JAMES STREET NEWPORT BUS STATION APOLLO THEATRE ATS EUROMASTER COPPINS BRIDGE RETAIL PARK Site outline for identification purposes only.

49/52 PYLE STREET & 22 SOUTH STREET, NEWPORT, ISLE OF WIGHT, PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED Site outline for identification purposes only. INVESTMENT CONSIDERATIONS The property is situated in the heart of Newport, the principal town in the Isle of Wight. Let to Co-Operative Group Food Ltd with a guarantee from Co-operative Group Ltd. Lease expires in May 2037 thus providing 19 years unexpired with NO BREAKS. Current rent passing of 500,000pa. The property comprises an extensive building incorporating a supermarket, a large retail unit and a car park with 207 spaces. The whole property extends to c. 59,000 sq ft. Part of the property is sub-let to TJX UK (t/a TK Maxx) until 1st March 2021 at a current rent of 350,000pa. Offers sought in excess of 7,820,000 (Seven Million, Eight Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6% assuming purchaser s costs of 6.67%.

49/52 PYLE STREET & 22 SOUTH STREET, NEWPORT, ISLE OF WIGHT, PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED BROCKENHURST MILFORD ON SEA LYMINGTON NEW FOREST NATIONAL PARK YARMOUTH FRESHWATER TOTLAND NORTON BRIGHTSTONE Cowes to Southampton COWES NORTHWOOD EAST COWES Osborne House NEWPORT Blackgang Chine GODSHILL NITON Fishbourne to Portsmouth FISHBOURNE NEWCHURCH Isle of Wight Airport VENTNO RYDE SHANKLIN OAKFIELD BRADING SANDOWN M27 PORTSMOUTH GOSPORT SOUTHSEA Ryde to Portsmouth Catamaran SEAVIEW ST. HELENS Ryde to Southsea Hovercraft BEMBRIDGE Bembridge Airport LOCATION Newport is the administrative and commercial centre of the Isle of Wight. It is located in the centre of the island, approximately 9 miles south west of Ryde and approximately 5 miles south of Cowes. The Solent divides the Isle of Wight from mainland England. The closest large towns to Newport are Portsmouth approximately 15 miles to the north east and Bournemouth, which is approximately 30 miles west. The Isle of Wight as a whole is well connected to mainland. There is a car ferry from Fishbourne to Portsmouth (40 minutes crossing time), East Cowes to Southampton (55 minutes crossing time) and Yarmouth to Lymington (30 minutes crossing time). In addition, foot passengers also have the choice of using the Hovercraft Service between Ryde Esplande and Southsea (10 minutes crossing time) or two hi-speed catamaran services; the Fast Cat from Ryde Pier Head to Portsmouth Harbour (18 minutes crossing time) or the Red Jet from West Cowes to Southampton (23 minutes crossing time). Being in the centre of the island, Newport is very well connected to all the surrounding towns. The two main dual carriageways converge in Newport with the A3020 running north and south and the A3054 running east and west. Furthermore, Newport bus station offers regular buses to Ryde, Cowes, East Cowes, Allum Bay, Carisbrooke, Yarmouth and Totland amongst others. SITUATION The subject property occupies a prominent position in between two of the main town centre streets, South Street and Pyle Street. Cockrams Yard is a footpath that links both streets and runs past the side of the property The surrounding area has many national occupiers including, Iceland (adjacent), H & M (opposite), Game, Next, McDonalds, Age UK, Pizza Express, Ladbrokes and Lloyds Pharmacy amongst many others. Newport Bus station is situated approximately 25 metres opposite the subject property, set back behind a small parade of shops. Access to the bus station is through Orchard Street which is situated just off South Street

49/52 PYLE STREET & 22 SOUTH STREET, NEWPORT, ISLE OF WIGHT, PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED DEMOGRAPHIC As of 2015, Isle of Wight has an estimated population of 140,000 (Isle of Wight Council), with the average age of the population being 44. More specifically, Newport itself is estimated to have a population approximately 25,500. However, even more impressive is that according to Visit Isle of Wight data, the yearly amount of visitors to the island stands at 2.36 million. This doesn t include those arriving by private yacht or boat which is approximately a supplementary 300,000. RETAILING IN NEWPORT Being the premier retailing location in the Isle of Wight, Newport is very popular with national retailers. These retailers are primarily situated along three parallel roads, South Street, Pyle Street and High Street. These include retailers such as McDonalds, Next, Clinton Cards, Waterstones, Claire s Accessories, Betfred, Iceland, H&M, Game, Age UK, Pizza Express, Ladbrokes and Lloyds Pharmacy amongst many others. Furthermore, in the town centre, there is a popular traditional Farmers Market on Fridays, as well as a multi-screen cinema, two theatres in the Quay Arts Centre. The vast amount of tourists that visit the Isle of Wight has had a significant impact on the Island s economy. Spending has increased by 17 per cent on last year and this upward surge doesn t look like stopping as first time visitors to the Island have also gone up 16 per cent. Crown Copyright, ES 100004106. For identification purposes only.

49/52 PYLE STREET & 22 SOUTH STREET, NEWPORT, ISLE OF WIGHT, PO30 1JB PRIME RETAIL INVESTMENT OPPORTUNITY WITH 19 YEARS UNEXPIRED DESCRIPTION The property was constructed as a supermarket arranged over ground and first floor, which has been split in to a supermarket, a large retail unit which both have frontages to Pyle Street and South Street, together with a car park on the upper levels. The car park is accessed from Pyle Street and provides approximately 207 spaces. The car park serves the Co-Op Supermarket and is run on a pay and display basis. In addition, there is a small unit above the Co-op with separate access from South Street which was recently trading as a tattoo parlour though it is understood they have recently vacated. ACCOMMODATION TENANCIES 49-52 Pyle Street is entirely let to Co-Operative Group Foods Ltd for a term of 35 years from 6th May 2002 (expiring 2037) at a current rent of 500,000 pa. There are currently approximately 19 years unexpired with no breaks. Rent reviews are upwards only every 5 years and the May 2016 review is still outstanding. The lease is guaranteed by Co-operative Group Limited. The Co-op have sublet 31,587 sq ft to TJX UK (t/a TK Maxx) on a 15 year FRI lease expiring March 2026 at a rent of 350,000 pa. The sub-tenant has an option to break in March 2021. 22 South Street is currently vacant, however, it was trading as a tattoo parlour at a rent of 4,950 per annum until recently. Address Tenant Floor Sq m Sq ft Use 49-52 Pyle Street The Co-Operative & TK Maxx Total 5,481 59,000 Sales/ Ancillary 22 South Street Vacant First 61.62 663 Sales COVENANT Guarantor: 02 Jan 2016 31 Dec 2016 06 Jan 2018 Total 5,542.62 59,663 TENURE Freehold. Turnover 9,301,000,000 9,472,000,000 9,470,000,000 Pre Tax Profit 23,000,000-132,000,000 72,000,000 Total Net Worth 2,006,000,000 2,298,000,000 2,191,000,000

EPC The EPCs are available within the dataroom. VAT We understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC). SPV There is the opportunity to purchase the single asset owning company by way of a UK registered Special-Purpose Vehicle (SPV). DATAROOM For access to the Allsop dataroom please use the following link: http://datarooms.allsop.co.uk/register/iownewport PROPOSAL Offers sought in excess of 7,820,000 (Seven Million, Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6% assuming purchaser s costs of 6.67%. For further information or to make arrangements for viewing please contact: PRIVATE CLIENT TEAM Liam Stray 020 7543 6769 liam stray@allsop.co.uk Alex Butler 020 7543 6722 alex.butler@allsop.co.uk www.allsop.co.uk PRIVATECLIENT Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandhq.co.uk 05.18