WELL LET DEPARTMENT STORE INVESTMENT HOUSE OF FRASER FRESHNEY PLACE SHOPPING CENTRE 19/21 VICTORIA STREET, GRIMSBY DN31 1DW

WELL LET DEPARTMENT STORE INVESTMENT HOUSE OF FRASER FRESHNEY PLACE SHOPPING CENTRE 19/21 VICTORIA STREET, GRIMSBY DN31 1DW

INVESTMENT SUMMARY Grimsby is a busy town and port located in the county of Lincolnshire with a primary catchment of 256,000. The property occupies a highly prominent position within Freshney Place Shopping Centre, which is the dominant retail offer within the town. The store also has the benefit of a frontage onto Victoria Street. The property totals 92,400 sq ft arranged over five floors. Let to House of Fraser (Stores) Limited with an unexpired term of 22 years. House of Fraser reported an annual sales increase of 4.2% on a like-for-like basis in their latest 2016 results as well as a strong Christmas period with a rise of 2.7% in underlying sales. Freehold. Offers are sought in excess of 12,750,000 (Twelve Million Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, for our client s freehold interest. A purchase at this level reflects an attractive net initial yield of 7.25% after purchaser s costs of 6.72%.

HARROGATE YORK A1079 A614 A165 A64 A19 BEVERLEY LOCATION LEEDS CASTLEFORD M62 A19 A614 HULL Grimsby is the principal commercial and retailing centre of north east Lincolnshire. The town is situated approximately 70 miles east of Leeds, 50 miles south east of York and 44 miles north east of Lincoln. BARNSLEY M1 ROTHERHAM SHEFFIELD M1 A61 CHESTERFIELD M18 DONCASTER A1(M) A614 A631 SCUNTHORPE M180 A159 A15 A15 A156 LINCOLN A1 HUMBERSIDE A46 A158 GRIMSBY A16 A18 LINCOLNSHIRE WOLDS AONB HORNCASTLE ROAD Grimsby has strong road communications with the M180 providing links to the M62, M1, A1 (M) and wider national motorway network. TRAIN Town has two train stations, Grimsby Docks and Grimsby Town. There are regular rail services to Doncaster which provides direct links to London in a fastest journey time of 1 hour 37 minutes. There are further services to surrounding centres including Cleethorpes, Scunthorpe, Manchester and Sheffield. AIR Humberside Airport is located 24 minutes west of Grimsby town centre, serving in excess of 500,000 passengers a year. In addition Doncaster Sheffield airport is only an hour s drive away. CATCHMENT The total population within the Grimsby primary catchment area is extensive at 256,000 with an estimated shopping population of 183,000. The catchment population within a 10, 15 and 20 minute drive time are as follows: 10 minute drive - 114,202 15 minute drive - 162,129 20 minute drive - 175,204

LOCAL ECONOMY Grimsby is the UK s largest port in terms of tonnage and meets the needs of a diverse range of industries. It provides a key international gateway to the Northern Powerhouse, the UK and Europe. Grimsby is home to approximately 500 food related businesses ranging from its markets, modernised fish docks and the global headquarters of brands such as Youngs who employ approximately 2,500 people. Other major employers include Seachill, Two Sisters, Country Style Foods and Morrisons. The town has one of the largest concentrations of food manufacturing, research, storage and distribution in Europe. Approximately 70% of the UK s fish processing industry is located within the town. The seafood industry is worth 1.8 billion to North East Lincolnshire. Grimsby has seen a rise in modern industries such as renewable energy and generates more electricity (28%) from solar, wind, biomass and landfill gas than anywhere else in England. Its proximity to the biggest cluster of offshore wind farms in Europe has brought approximately 1,500 jobs to the area with only 300 of the turbines having been installed out a total of 3000. There is future potential expenditure to come with wind farm developers and operators (DONG Energy, EoN, Centrica, MHI Vestas) investing over 30m in the Port of Grimsby. The service sector accounts for 71% of total employment in Grimsby whereas manufacturing supports 12% of employment. GRIMSBY DEVELOPMENT Grimsby is undergoing significant regeneration as part of the Council s 25 year vision for the town, which includes key developments on the docks and various leisure developments in the town centre. The draft Local Plan includes a total of 13,340 new homes to be built by 2032 which will create 8,800 new jobs in addition to the already strong local industrial economy. These developments will help improve the retail offer within the town by increasing its footfall and spend. A number of the projects include: Primark are currently undergoing a 4.3m extension of their store within Freshney Place, increasing its size by 27,000 sq ft, opening in summer 2017. A new 12 million entertainment hub is currently in pre-planning application discussions which is expected to comprise a 9 screen cinema with associated restaurants, as an extension to Freshney Place Shopping Centre. Clee Meadows, on Ladysmith Road, will bring 180 new houses and 80 new apartments to the 11 acre site. Construction is to be phased over the course of four years. Xtreme Leisure have completed a viability assessment and are soon to submit a formal application on a 250 million project to build a 14,000-seater community football stadium for Grimsby Town, a sports and leisure facility including an ice rink, between 1,400-1,600 houses and a 2,000 space car park. GRIMSBY IS THE UK S LARGEST PORT IN TERMS OF TONNAGE

Red border denotes Freshney Place Shopping Centre

RETAILING IN GRIMSBY The 445,000 sq ft Freshney Place Shopping Centre dominates the town s retail offer. The scheme is anchored by the subject House of Fraser with other principal tenants including Marks & Spencer, Primark, New Look, Next and TK Maxx. Adjoining the centre is the popular indoor market which trades on Tuesday, Thursday, Friday and Saturday. The pedestrianised Victoria Street provides the town s main retail pitch outside of Freshney Place with retailers including Argos, Wilkinsons, Sepcsavers, McDonalds and BrightHouse. South Mary s Gate and Osborne Street, running parallel to Victoria Street, is the secondary pitch in the town with a mix of national retailers such as Iceland, Poundland and Co-Operative Bank and local occupiers. SITUATION The property is situated in a prime and prominent position in the town, within Freshney Place Shopping Centre with a rear frontage on to Victoria Street West. Occupiers nearby include Marks & Spencer, Primark, Next, River Island, Boots, JD Sports and Monsoon. DESCRIPTION The property comprises a 92,400 sq ft modern department store arranged over 5 floors with sales accommodation on the ground, first and second floors and ancillary on the small remaining floors. Servicing is from the first floor service deck. LOCATED IN AN EXCELLENT POSITION WITHIN FRESHNEY PLACE SHOPPING CENTRE, THE TOWN S DOMINANT RETAIL OFFER House of Fraser is the only department store representation in Grimsby. Concessions within the store include Calvin Klein, Guess, Ted Baker, Barbour, Diesel, Fred Perry and DKNY. The property has House of Fraser s full range of services including suit hire, click and collect, a restaurant and a Caffé Nero.

ACCOMMODATION The property provides the following gross internal (GIA) floor areas: Floor Area Sq m Area Sq ft Ground 3,262 35,115 First 2,634 28,356 Second 2,246 24,178 Third 227 2,448 Fourth 214 2,303 Total 8,584 92,400 TENURE Freehold. TENANCY The property is let to House of Fraser Ltd on a 40 year lease from 30th July 1999 at a current rent of 986,423 per annum, subject to 5 yearly upwards only open market rent reviews. The property is sublet to House of Fraser (Stores) Ltd for a term of 40 years less 7 days commencing 30th July 1999 on identical terms to the head lease. The property includes a 125 year long leasehold interest in the Freshney Place Shopping Centre s car parking spaces from 25th March 1974 at a peppercorn rent. This is underlet to House of Fraser PLC and then further sub-underlet to House of Fraser (Stores) Limited as above. COVENANT House of Fraser (Stores) Ltd has a minimum risk of business failure rating by Dun & Bradstreet. They are one of the leading premium, multi-branded retailers in the UK and Ireland and trade from 59 locations and employ 6,000 people. In April 2014 an 89% stake of the business was sold to the Chinese conglomerate Sanpower Group. The group s total assets are in excess of 13.8 billion with a 100,000 global workforce and over 100 subsidiaries. House of Fraser is trading well with like-for-like sales increasing by 2.7% over the Christmas period and record sales figures in the two weeks leading up to December 31st 2016. The most recent financial accounts for House of Fraser (Stores) Ltd are summarised below: Year Ending 30/01/2016 31/01/2015 25/01/2014 Turnover 814,700,000 772,000,000 717,200,000 Profit Before Tax 13,100,000 23,100,000 25,700,000 Net Worth 110,900,000 ( 20,200,000) ( 27,700,000) INVESTMENT COMPARABLES Address Tenant Date Unexpired Term GIA (sq ft) Price Net Initial Yield Chichester House of Fraser Under Offer 22 years 69,313 14,100,000 5.25% Hull House of Fraser Under Offer 22 years 188,427 16,000,000 7.75% Southampton Debenhams Under Offer 17 years 285,000 31,250,000 5.75% Swansea Debenhams Under Offer 61 years 158,135 16,000,000 6.03% Leamington Spa House of Fraser Sep-16 23 years 102,411 18,150,000 6.25% Darlington House of Fraser Aug-15 24 years 145,000 22,500,000 6.62% The current rent reflects 10.68 per sq ft. EPC The property has an Energy Performance Rating of C (52). HOUSE OF FRASER REPORTED AN ANNUAL SALES INCREASE OF 4.2% ON A LIKE-FOR-LIKE BASIS IN THEIR LATEST 2016 RESULTS

VAT The property is registered for VAT and therefore VAT will be payable on the purchase price or dealt with by way of a TOGC. PRICE Offers are sought in excess of 12,750,000 (Twelve Million Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, for our client s freehold interest. A purchase at this level reflects an attractive net initial yield of 7.25% after purchaser s costs of 6.72%. CONTACTS Rupert Guy rguy@klmretail.com 020 7317 3710 Rob Dales rdales@klmretail.com 020 7317 3705 Simon Harvey sharvey@klmretail.com 020 7317 3719 Langham House 302-308 Regent Street London W1B 3AT +44 (0)20 7317 3700 enquiries@klmretail.com The agents for themselves and for vendors or lessors of properties on this site whose agents they are give notice that: 1: The particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute part of an offer or contract; 2: All descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3: No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this site or properties to be built on this site. KLM: April 2017 Produced by Barbican Studio 020 7634 9573