SUPERMARKET ST ELLI CENTRE LLANELLI SA15 1BX MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY

SUPERMARKET ST ELLI CENTRE LLANELLI SA15 1BX MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY

INVESTMENT CONSIDERATIONS z Llanelli is located on the south coast of West Wales in the county of Carmarthenshire, 12 miles west of Swansea. z Llanelli is at the heart of a large catchment area and the St Elli Centre has an excellent footfall with approximately 7.0 million visitors per annum (135,000 thousand visitors per week). z Llanelli town centre and the surrounding area has undergone significant transformation in the last 6 years with an estimated 60 million being committed to improve the town centre streetscape and various other cultural and regeneration projects. z The Asda supermarket is the dominant town centre food store. It extends to approximately 70,000 sq ft and is the principal anchor of St Elli Centre which was built in 1997 and is the major retail destination within the town centre and surrounding area. The supermarket includes a demised 450-space surface car park, immediately adjacent to the main entrance. z The interest to be sold is a 999 year long leasehold interest at a peppercorn. z The property is let in its entirety to Asda Stores Limited by way 3 occupational leases, all expiring between May and November 2032, subject to 5 yearly open market rent reviews. The aggregate current passing rental is 1,322,735 pa, reflecting a rate of 18 psf overall, excluding the petrol filling station. z Unexpired lease term of approximately 14 years.

The investment offers the following characteristics: z A modern high quality building benefiting from a substantial surface car park. z A long unexpired lease term of approximately 14 years. z Let to the excellent covenant Asda Stores Limited with sales of 22 billion and pre-tax profits of 380 million. z Excellent prospects for securing attractive debt finance given the lease length and covenant strength. z Strong trading store with recent addition of new petrol filling station

LLANELLI LOCATION Llanelli is the largest town in the country of Carmarthenshire, West Wales and situated within the Millennium Coastal Park sitting on the Loughor Estuary on the south coast of Wales. The town is sandwiched between the extremely popular tourist destinations of the Gower peninsular (10 miles to the south) and the Brecon Beacons National Park (20 miles north). The town is located approximately 12 miles west of Swansea, 20 miles east of Carmarthen and 200 miles west of London. Llanelli is linked to the M4 motorway (Junction 48) connecting the town to Cardiff, approximately 55 miles to the east. The M4 motorway provides fast connection to the rest of the UK. Swansea, 12 miles to the south east of Llanelli can be accessed on the A484 and Carmarthen on the A48 via the A476. The town s bus station, neighbouring the subject property provides regular local services to the wider Carmarthenshire towns and villages including Swansea, Carmarthen, Pembrey, Burry Port and Kidwell, as well as National Express services further afield including Cardiff, Bristol and London.

SITUATION The subject foodstore is situated in the centre of the town, with access onto the pedestrianised Stepney Street via Stepney Precinct. The property and adjoining centre are bounded by Upper Robinson Street to the south which provides the main vehicular access into the Centre and connects with the A404. Llanelli railway station is located south of the town centre. Asda PFS Bus Station

CATCHMENT The catchment of Llanelli contains a population of approximately 610,000. From this catchment, Llanelli attracts a regular comparison goods shopping population of 54,273. The extent of Llanelli s significant catchment area can be seen on the map below. Trade Contribution Core: 70% contribution Secondary: 70-100% contribution The catchment population has the potential to spend approximately 1.8 billion per annum on comparison goods, the current spend is in the region of 154 million, demonstrating an opportunity to attract more spend into the town. The core area provides 70% of the total of the shopping population of Llanelli, with the remaining 30% derived from the blue area.

The area around Llanelli and East Carmarthenshire is home to a number of manufacturing companies including Tata Steel at Trostre and Dyfed Steels, many of which service the automotive and engineering industries based in South Wales and the West Midlands. As an incubator for business in the automotive, motor sport and aerospace sectors, the Technium Performance Engineering Centre was developed at Llanelli Gate. Local Government has been successful in attracting additional investment and tourism to Llanelli and the surrounding areas over the past decade and have completed successful developments including: z The Millennium Coastal Park z Machynys Peninsular Golf Course (part of Llanelli Millennium Coastal Park) z Out of town retail parks at Trostre and Pemberton z The 2008 rugby stadium Parc y Scarlets, home to Llanelli Scarlets, one of the most famous rugby union clubs in the world. z The only new national racecourse in the UK in 80 years, the 25 million Ffos Las, near Trimsaran z A further 200 million investment (subject to planning) will be made in the Delta Lake - Llanelli Wellness and Life Science Village which will include a Life Style Institute and Laboratory, state of the art sports and leisure centre, Health and Well-being centre, Wellness Hotel and Assisted Living Village. This project is being pioneered by the Council in partnership Abertawe and Swansea Universities and is predicated to create up to 2,000 high quality jobs and boost economy by 467 million over 15 years. z The local development policy for Carmarthenshire has identified a requirement for approximately 15,000 dwellings included a proposed homes number of 10,799 between April 2017 and April 2021.

FOODSTORE PROVISION The subject property is the dominant foodstore within Llanelli town centre. A476 Within a 5 minute Drive time the competing foodstore provision is as follows:- A484 CAPEL ISAF ROAD A4138 Tesco Extra Parc Trostre Retail Park A484 Morrisons Pemberton Retail Park Aldi Swanfield Pace ST ELLI CENTRE A484 A484 The nearest Sainsbury s is located in Swansea, 12.5 miles away (approximately a 35 minute drive). B4304 LLANELLILI A484 A4138 B4304 PARC TROSTRE RETAIL PARK B4304

ST ELLI CENTRE The St Elli Centre is the dominant shopping provision within Llanelli and is the only indoor centre west of Swansea. Other national retailers present in the town include Wilkinson, Poundland, Peacocks and Argos. The total Centre extends to approximately 160,000 sq ft (including the foodstore) and is anchored by the 72,460 sq ft subject property with a further 24 retail units situated within the covered mall under a distinctive glass roof creating a light and airy shopping environment for customers. Benefiting from a footfall of 7 million per annum the Centre links directly with the popular and busy Council operated indoor market and two further pedestrianised entrances onto Stepney Street and the town s bus station, located adjacent. In total the Centre benefits from 980 car parking spaces, of which 530 spaces are contained within a multi-storey car park above the adjoining indoor market.

THE SUBJECT PROPERTY The Asda foodstore is a purpose-built supermarket extending to 72,460 sq ft. The foodstore fronts the demised 450-space surface car park which is accessed directly off Upper Robinson Street. The surface car park which is demised to Asda operated on the basis of 2 hours free parking, refundable on customers spending over 5 in the foodstore. Servicing for the foodstore is via Murray Street into a demised covered loading bay.

STEAMIN MUGS NORTH within the green line on the URBAN VACANT VAPING MISS LABE peppercorn) - as higlighted BAGZ LTD Long leashold (999 at YANKEE CANDLE VACANT ROMAN ORIGINALS YOURS CLOTHING VODAFONE CARD CENTRE BURGER KING TENURE adjacent plan. Petrol Station For Identification purposes only

TENANCY The property is leased to Asda Stores Limited by way 3 occupational leases outlined below: UNIT 21: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a passing rental of 29,450 per annum. Reviewed 5 yearly to OMV. UNIT 22: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a current passing rental of 28,285 per annum. Reviewed 5 yearly to OMV. SUPERSTORE AND PETROL FILLING STATION: Let by way of a 35 year FRI lease with effect from 27th May 1997 expiring 26th May 2032 at a passing rental of 1,265,000 per annum. Reviewed 5 yearly to OMV. There are therefore approximately 14 years unexpired. The aggregate current passing rental is 1,322,735 per annum, reflecting a rate of approximately 18 per sq ft, excluding the petrol filling station, and based upon a total floor area of 72,460 sq ft.

TENANT COVENANT Asda Stores Limited (Company Number 464777) is one of the big four supermarkets in the UK and has a market share in the order of 16%. The company has approximately 630 stores as at December 2016 and employs circa 180,000 people. Asda s ultimate parent company is Walmart Stores Inc, which according to Forbes Global 500 List, is the world s largest company by revenue. Asda Stores Limited Year Ending 31/12/2015 000 s Year Ending 31/12/2016 000 s Year Ending 31/12/2017 000 s Turnover 22,066,000 21,408,500 21,951,800 Pre-Tax Profit 633,300 477,200 379,000 Total Net Worth 5,332,000 5,196,700 5,007,300 D&B Rating 5A1 based upon a tangible net worth of 5.007 billion and a minimum risk of business failure.

EPC Available on request. VAT The subject property has been elected for the purposes of VAT and it is anticipated that the sale will be treated as a Transfer of Going Concern. PROPOSAL My clients are seeking offers for their freehold interest in excess of 20,450,000 (TWENTY MILLION, FOUR HUNDRED AND FIFTY THOUSAND POUNDS), subject to contract and exclusive of VAT, reflecting an attractive net initial yield of 6%, after allowing for standard purchaser s costs of 7.8%. For further information, please contact: JONATHAN MILBURN 020 7637 7100 jonm@jacksoncriss.co.uk Jackson Criss, West End House, 11 Hills Place, London W1F 7SE 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. 100796. Designed by TCC 06/18.