THE MENAI CENTRE BANGOR, NORTH WALES LL57 1DX PRIME CITY CENTRE RETAIL INVESTMENT OPPORTUNITY

THE MENAI CENTRE BANGOR, NORTH WALES LL57 1DX PRIME CITY CENTRE RETAIL INVESTMENT OPPORTUNITY

THE MENAI CENTRE BANGOR, NORTH WALES SUBJECT PROPERTY COMPRISES 22 MODERN, FULLY FLEXIBLE RETAIL UNITS, WITH THE MAJORITY DEVELOPED IN 2008 AND ANCHORED BY A LONG LET DEBENHAMS DEPARTMENT STORE (57,192 SQ FT).

INVESTMENT CONSIDERATIONS Bangor is a historic University City, attracting significant tourism spend and benefitting from a direct rail service from London (Euston). The Menai Centre is the prime and dominant shopping location within Bangor City. Freehold interest of retail accommodation plus long leasehold interest of multi-storey car park adjacent. Total floor area of approximately 140,000 sq ft. The property comprises 22 modern, fully flexible retail units, with the majority developed in 2008 and anchored by a long let Debenhams department store (57,192 sq ft). Multi-let to a range of excellent High Street names, including Debenhams, River Island, H&M, JD Sports, Superdrug, Poundland and Caffè Nero. Current gross rental income of 1.53m per annum exclusive and net rental income of 1.39m per annum exclusive, after deductions of landlord s shortfalls. 80% of the current rental income is secured against tenants with a minimum risk of business failure based upon D&B rating. 42.6% of the income secured against Debenhams (by gross income, 50.1% by net income), who are subject to 5 yearly fixed increases of 2.5% per annum compound, until April 2038. Highly attractive WAULT to expiry of 11.69 years (11.04 years) to break. Asset management opportunities to let remaining vacants and improve the tenant mix. Strong underlying sales generated from the majority of key occupiers relative to costs.

LOCATION BANGOR Bangor is a historic University City located on the North Wales coast, near the Menai Strait at the foot of the Snowdonia National Park in the County of Gwynedd. COMMUNICATIONS At the heart of the City is the ancient St Deiniol s Cathedral, one of the oldest Cathedral sites in Britain, founded in 525 A.D. Bangor has its own Victorian Pier, which extends into the Menai Strait; across the Menai Strait is the Isle of Anglesey, which is connected to the mainland by two picturesque bridges, the Menai Suspension Bridge and Britannia Bridge. The City benefits from strong road communications, being situated approximately 14.5 kilometres (9 miles) north of Caernarfon and some 96.5 kilometres (60 miles) west of Chester. The City is situated just north of the junction of the A55 and the A5. The A5 links with the M54 to Telford, whilst the A55 links with the M56 and M53 at Chester, providing access to the national motorway network. Bangor benefits from a mainline railway station a short walk from the High Street, which provides regular service to Holyhead to the west (approximately 35 minutes) and Chester to the east (approximately 60 minutes). There is a direct service from Bangor Station to London (Euston), which takes only 3 hours 15 minutes. Bangor has developed as a key University City over the past decade with Bangor University ranked 65th out of 129 UK universities in the 2018 University League Table and 3rd in the top universities in Wales behind Cardiff and Swansea. Bangor University is regarded as one of the most economical locations for a student to study and presently enjoys some 14,000 resident students providing a healthy impact upon the local economy. In addition, the Snowdonian mountain area and numerous beaches on the Llyn peninsular close by, bring tourism to the area on a year-round basis and especially over the summer season.

SOCIO DEMOGRAPHIC PROFILE The County of Gwynedd has a population of approximately 121,900 persons based upon the 2011 Census. The total population within the Bangor primary catchment area is 167,000. The level of car ownership within Bangor is above average with a broadly average proportion of multiple car owning households. In 2010, the service sector accounted for 72% of total employment in Bangor. Between 2000-2010 total employment in Bangor increased at a faster rate than the retail Promis average and growth and total employment to 2016 was also significantly above average. Significant sectors in the local employment market include Universities and Colleges, Hospitals, Call Centres and Telemarketing and Retail and Tourism In 2017, the local authority reported that tourism had its most successful year ever with expenditure in the local economy reaching over 1bn, and over 7m people visiting the County of Gwynedd, an increase of 3.2% on the previous year.

RETAILING IN BANGOR Bangor lies 2nd in the hierarchy of North Wales retail centres, ranking only behind Wrexham. In town retail provision The retail floor space in Bangor is estimated at 0.52m sq ft and focused on the prime pedestrianised thoroughfare of High Street and Garth Road. The managed floor space comprises the subject property (The Menai Centre), being the dominant retail destination in the City Centre and the secondary Deiniol Shopping Centre, providing approximately 50,000 sq ft of accommodation situated on the opposite side of Garth Road. The older Deiniol Shopping Centre comprises a covered walkway, accommodating 26 smaller retail units with a value retail offer anchored by an Iceland Frozen Food store. The scheme has an entrance off the High Street and a 2 level basement car park of approximately 120 spaces. Further along the High Street, moving away from prime pitch, there is additional national multiple representation, including New Look and WH Smith. Food store provision Convenience food representation is relatively low in the City Centre, comprising an 18,500 sq ft Marks & Spencer store at the foot of Garth Road adjacent to the subject property multi-storey car park, which attracts significant footfall past the Garth Road frontage as far the Iceland frozen food store at the rear of the Deiniol Shopping Centre. An Aldi supermarket of approximately 12,700 sq ft is located a short distance beyond Marks & Spencer on Garth Road, benefitting from an associated surface car park of approximately 74 spaces. On a site located on the edge of the City Centre, Asda have a 45,000 sq ft supermarket on Farrar Road, which has car park provision for approximately 300 spaces. Towards the railway station, Lidl occupy a 14,000 sq ft supermarket with an associated 73 space surface car park. Out of town provision The out of town retail provision within Bangor is estimated at approximately 400,000 sq ft and is made up principally of two retail warehouse parks along Caernarfon Road, as well as a Tesco Extra food store, together with additional units occupied by Home Bargains, B&Q, Halfords and Dunelm. Both the St David s Retail Park and Bangor Retail Park are located approximately 2 miles from the City Centre upon Caernarfon Road, the former occupying approximately 70,000 sq ft of open A1 non-food accommodation and let to Matalan, DW Sports and PC World. The Bangor Retail Park also benefitting from open A1 non-food planning consent, is let to Next, Argos, Sports Direct and The Range.

SITUATION 1h 13mins (60 miles) 1h 32mins (70 miles) DESTINATION CHESTER LIVERPOOL The Menai Centre 1h 52mins (96 miles) MANCHESTER The Menai Centre is situated on the northern side of the High Street, at it s junction with Garth Road, the main focal point of the City Centre and the prime retail pitch. The Centre s retail front also runs along the High Street and turns into Garth Road, linking into Cathedral Walk, which in turn links into the associated multi-storey car park. Bangor Bus Station is located opposite the property, where regular bus links are provided to local towns and villages, generating footfall for the subject units along Garth Road leading onto the High Street. BANGOR STATION 3mins bus ride away 2h 45mins (153 miles) 4h 55 mins (274 miles) 60mins 2h 2h 22mins 2h 53mins 3h 15mins BIRMINGHAM NEW STREET LONDON CHESTER LIVERPOOL MANCHESTER BIRMINGHAM NEW STREET LONDON See below Birds Eye drone footage of the Menai Centre. PLAY VIDEO YBI ALBERT ST FFORDD Y COLEG THE C RESCENT Y CILA N T GLANRAFON HILL Menai Enterprise Centre COLLEGE ROAD Bangor University LOWER PENRALT RD DEINIOL ROAD SACKVILLE ROAD FFORDD GWYNEDD HIGH STREET GARTH ROAD CAELLEPA P M&S HIGH STREET Car Park WELL STREET THE MENAI CENTRE STRYDD Y DEON HIGH STREET MOUNT ST T LONPOBTY BISHOPS MILL ROA

SITE PLAN First Floor YUGEN COFFEE [MY] DENTIST UNDER OFFER Second Floor

BANGOR UNIVERSITY THE MENAI CENTRE HIGH STREET Aldi MENAI CENTRE CAR PARK M&S BRITISH TELECOM GARTH ROAD DEINIOL SHOPPING CENTRE BANGOR UNIVERSITY

DESCRIPTION The property provides highly prominent, modern retail block, totalling approximately 139,218 sq ft (12,933.67 sq m) and offering clear, open plan, fully flexible retail space in the heart of Bangor City Centre. The majority of the Menai Centre was developed in 2008. The accommodation comprises 22 standard retail units and 1 large store over 3 levels, with the benefit of an associated multi-storey car park at the rear (Dean Street Car Park), providing 417 vehicle spaces. The loading facilities are provided by the rear yard area, accessed from the roundabout junction of Deiniol Road and Garth Road. At High Street level (piazza level), The Menai Centre provides an attractive piazza area with 4 smaller retail units let to Caffè Nero, Regis, 3UK and The Body Shop. The main entrance for Debenhams department store is also provided at the piazza level, through an imposing, double height and fully glazed entrance of approximately 45 ft (13.7 m) frontage. There are two other prime retail units fronting the High Street, let to H&M and JD Sports, which is separated from the piazza by 273-279 High Street, which are not included within the ownership. Due to level changes, units 4-17 are positioned below Debenhams, fronting Garth Road and Cathedral Walk, the latter being directly opposite the Marks & Spencer store. Units 4, 5, 6 and 7 are let to Select, BHF, Shop Menai, Superdrug and River Island respectively. Burger King, Poundland, [my] Dentist and Yugen Coffee occupy units 11, 12, 13, 14 & 16. The remaining units along Garth Road are vacant, also with good tenant interest. At first floor level, additional storage and office space is provided for Debenhams (LSU1) and the currently vacant LSU2. Proposals to access LSU2 via an escalator and a lift have been provided for in the construction of the asset. There is demand from both gym and leisure occupiers for this accommodation.

DEAN STREET (MENAI) CAR PARK The property also includes the 4 level 417 space multistorey car park of concrete and steel construction, located immediately to the north of the Centre. Vehicular access is from the north via Dean Street with pedestrians then exiting south, directly towards the Menai Centre via Cathedral Walk. The car park is held long leasehold from Bangor City Council by way of a 150 year term, with effect from 29th January 2007, at a headrent of 82,500 per annum, reviewed five yearly upward only based upon greater of annual indexation of 2.5% per annum and RPI increase. The 2017 review remains outstanding. Following professional advice the vendor installed six new parking machines and commenced charging which began May 2017. The target income of 140,000 per annum was based upon achieving variable tariff rates set out below assuming the use of 225 of the 417 spaces. Monday - Sunday 0.5 / 0-1 hours 1 / 1-2 hours 2 / 2-4 hours 3 / up to 12 hours At this point, the revenue generated from the new regime is on track to achieve the targeted income of 140,000 per annum. Whilst the car park still produces a landlord shortfall (based upon annual costs of 188,777 per annum) it is the view of the vendors car park specialists that over time the shortfall will continue to be eroded and the car park will become a positive income generator. Further information in respect of the breakdown of these figures is available upon request. TENURE The Menai Centre The Menai Centre Car Park Freehold (edged red) Leasehold (edged blue)

TENANCIES & INCOME ANALYSIS The Menai Centre currently produces a total gross rental income of 1.53m per annum (net operating income of 1.30m per annum) from a strong representation of national retailers with 42.6% derived from Debenhams department store by gross income (50.1% by net income), who anchor the asset. 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Lease Contracted Income Scenario (excluding car park) The subject anchor store is let to Debenhams Properties Limited on a lease with effect from 7th April 2008 at a current rent of 652,838 per annum (effective as at 7th April 2018) and expiring on 6th April 2038 (20 years unexpired). Debenhams have been in occupation and paying rent since 2008. 0 1 2 3 4 5 6 7 8 9 10 Year 11 12 13 14 15 16 17 18 19 20 21 The rent is subject to 5 yearly fixed increases, which equate to approximately 2.5% per annum compound throughout the term. UNIT TENANT PERCENTAGE OF INCOME D&B RATING RISK RATING/COMMENTS 07/04/2018-652,838 07/04/2023-738,626 07/04/2028-835,688 07/04/2033-945,504 The remaining premises are multi-let to national retailers of significant covenant strength as set out below. The property has an average weighted unexpired lease term of 11.69 years to expiry and 11.04 years to break. The top 5 tenants by gross income represent 65.5%. 80% of the total gross income is secured against tenants with a minimum risk of business failure. Department store Debenhams Properties Ltd 42.63% 5A1 Minimum Risk 13 Poundland Ltd 9.14% 4A1 Minimum Risk 6 Superdrug Stores Plc 5.22% 5A1 Minimum Risk 281 High Street JD Sports Ltd (JD Sports Fashion PLC) 4.57% 5A1 Minimum Risk 3 The Body Shop International PLC 3.92% 5A1 Minimum Risk 7 River Island Clothing Co. Ltd 3.26% 5A1 Minimum Risk 1 Nero Holdings Ltd 3.26% 5A1 Minimum Risk 20/21 H & M Hennes & Mauritz UK Ltd 2.30% 5A1 Minimum Risk 5 British Heart Foundation 1.96% 5A1 Minimum Risk 2 3 UK Retail Limited (Hutchison 3G UK Ltd) 1.96% (3UK) H2 (Hutchison) 5A1 (3UK) Lower than avergae risk (Hutchison) Minimum Risk 1A Regis UK Limited 1.76% 4A1 Minimum Risk

OCCUPATIONAL GUARANTEES The vendor is proposing to provide a 12 month insurance and service charge only guarantee against vacant units 8& 9 Garth Road. The units have not been assessed for rates and do not carry a rates liability.

TENANCY SCHEDULE ANC = ANCILLARY BSMT = BASEMENT GRND = GROUND ADDRESS & OCCUPIER AREAS (SQ FT) LEASE DETAILS INCOME UNIT TENANT TRADING AS GRND FLOOR SALES ITZA GRND FLOOR ANC FIRST FLOOR SALES FIRST FLOOR ANC BSMT ANC TOTAL AREA LEASE START EXPIRY DATE NEXT REVIEW BREAKS CURRENT RENT PA ZONE A/ PSF RATE RENTAL VALUE PA RENTAL VALUE PA LANDLORD SHORTFALL COMMENTS 1 Nero Holdings Ltd Caffe Nero 1,276 940 - - 300-1,576 16/08/12 15/08/22 50,000 53 47,500 50 1A Regis Uk Limiited Regis Uk Limiited 663 595 - - - - 663 19/09/14 18/09/24 19/09/2019 19/09/20 27,000 45 27,000 45 2 3 UK Retail Ltd 3 Store 649 545 198 - - - 847 03/03/18 02/03/23 30,000 55 28,250 50 Lease renewal in lawyers hands. 3 The Body Shop International Plc The Body Shop 777 674 - - 792-1,569 03/03/08 02/03/18 60,000 86.60 35,300 50 Lease renewal negotiation on going. 4 Genus Uk Limited Select 4,009 1,759 1,708 - - - 5,717 23/04/15 22/04/25 22/04/20 22/04/20 75,000 40 75,000 40 Select have recently entered a CVA. This store is a category 4 store and 75% rent reduction is sought. There is strong interest from loungers. 5 British Heart Foundation British Heart Foundation 1,379 804 214 - - - 1,593 06/01/17 06/01/27 27/12/2021 30,000 36.60 32,700 40 5A D Chubb Shop Menai 494 387 - - - - 494 01/06/16 31/05/26 05/07/21 01/06/21 18,500 47.80 15,480 40 6 Superdrug Stores Plc Superdrug 4,254 1,403 1,606 - - - 5,860 12/05/18 11/05/23 80,000 54 60,135 40 7 River Island Clothing Co. Ltd River Island Clothing Co. Ltd 5,798 1,726 - - 1,515-7,313 25/05/16 24/05/21 50,000 27.20 72,070 40 15,719.49 Rental based upon 7% of gross turn over inclusive. Audited turnover certificate awaited. 8 Vacant 2,988 1,200 - - - - 2,988 48,000 40 Vendor occupational cost guarantee. 9 Vacant 1,915 863 - - - - 1,915 34,500 40 Vendor occupational cost guarantee. 10 Under offer to Regatta Regatta 2,174 1,001 - - - - 2,174 40,000 40 Unit currently under offer on the basis of 2 year lease with occupational costs only. 11 U/O Powerbanks Burger King 2,232 1,284-2,232 11/01/15 10/01/35 11/01/30 35,000 27.25 45,000 35 T/O top up 7% gross sales over 500k.

ADDRESS & OCCUPIER AREAS (SQ FT) LEASE DETAILS INCOME UNIT TENANT TRADING AS GRND FLOOR SALES ITZA GRND FLOOR ANC FIRST FLOOR SALES FIRST FLOOR ANC BSMT ANC TOTAL AREA LEASE START EXPIRY DATE NEXT REVIEW BREAKS CURRENT RENT PA ZONE A/ PSF RATE RENTAL VALUE PA RENTAL VALUE PA LANDLORD SHORTFALL COMMENTS 12 U/O Powerbanks Burger King 1,421 1,066 185 - - - 1,606 13 Poundland Ltd Poundland 3,467 1,735 1,793-5,260 16/06/08 15/06/18 140,000 78 65,200 35 Renewal discussions ongoing. 14 Whitecross Dental Care Ltd. [my] Dentist 2,722 1,147 840 - - - 3,562 22/04/13 21/04/23 22/04/18 30,000 26 30,000 26 3,373 3,500 + RPI service charge cap. 15 Vacant Vacant 1,457 737-1,139 - - 2,596 0 12,500 5,274 16 Mr G Linn Yugen Coffee 442 442 - - - - 442 20/10/17 19/10/22 8,000 11 8,000 Coffee / Deli Operator 17 Vacant Vacant 304 304 - - - - 304 0 16 6,000 20 946 20 & 21 H & M Hennes & Mauritz UK Ltd H & M Hennes 4,523 1,840-2,861 1,444-8,828 02/12/10 01/12/20 02/12/15 35,230 76,500 40 18,476 4,582.23 service charge cap. Rent calculated on 5% of gross turn over 704,604.88 for FYE 2017. LSU 1, Menai Centre Debenhams Properties Ltd Debenhams 46,564 - - - 10,628-57,192 07/04/08 06/04/38 07/04/18 652,838 11.40 458,000 8 Fixed uplifts 07/04/2018: 652,838 07/04/2023: 738,626 07/04/2028: 835,688 07/04/2033: 945,504 LSU 2, Menai Centre Vacant Vacant 232 - - 21,024 - - 21,256 17/05/22 16/05/27 0 0 0 48,806 Interest from Anytime Fitness 281 High Street JD Sports Ltd JD Sports 2,013 962 448 - - 770 3,231 10/03/12 09/03/22 70,000 71 40,000 40 Car Park Car Park 140,000 140,000 47,482 Held leasehold at a head rent of 82,500 for 150 years from 29/01/2007. Current annual running costs of the car park of 187,482, generating a 47,482 landlord shortfall based upon income of 140,000 and assuming the 2017 head rent review settles at 92,045.74 pa. Further information available upon request. Total 91,753 139,218 1,531,568 1,397,842 141,076 Landlord Shortfall 141,076 Net Operating Income 1,390,492

RENTAL TONE The property has been substantially rebased to a defensive rental tone in the order of 40 ZA on the Garth Road frontage. In addition to a low service charge, we consider the rents to be highly affordable and capable of medium term improvement. SERVICE CHARGE & SHORTFALLS The estimated total service charge budget for 2018/2019 is 287,736, representing an overall rate per sq ft of 2.07. There are presently a small number of landlord s service charge shortfalls which are highlighted in the tenancy schedule. CAPITAL ALLOWANCES Any unclaimed capital allowances will be passed on to the purchaser, subject to further verification.

ASSET MANAGEMENT INITIATIVES The asset presents an excellent opportunity to acquire a significant, modern, prime retail holding in the heart of the City of Bangor with excellent underlying income secured against national retailers, with the anchor store benefitting from fixed rental uplifts and an unexpired lease of 20 years, providing 50.1% of the current total net operating income. Additionally, the asset provides the opportunity to:- Let the remaining vacant accommodation along Garth Road, ideally to further A3 occupiers, to compliment the success of Burger King and benefit from the strong student and tourism footfall. Conclude a letting upon LSU2, which will further enhance the occupational mix from the subject property and assist the A1 and A3 retailers alike. Improve the operational efficiency of the subject property multi-storey car park (the prime car park within the City Centre) and reduce the landlord s irrecoverability in this respect, thus improving the NOI position (further information in relation to the car park available upon request). EPC Energy Performance Certificates (EPC) are available upon request.

VAT It is proposed the sale will be treated as a Transfer of a Going Concern (TOGC). MARKETING LINK See below Birds Eye drone footage of the Menai Centre. https://www.birdseyeviewpro.co.uk/our-work/ menai-centre-bangor/ CONTACT For further information please contact Jonathan Milburn 020 7637 7100 jonm@jacksoncriss.co.uk 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. 100399. Designed by TCC. 03/18.