PRIME RETAIL RESIDENTIAL DEVELOPMENT OPPORTUNITY

PRIME RETAIL RESIDENTIAL DEVELOPMENT OPPORTUNITY

INVESTMENT SUMMARY z Royal Leamington Spa is an attractive, affluent spa town located in the heart of Warwickshire, with a loyal and affluent catchment population ranked 21st on the PMA Affluence Indicator z The town provides an attractive and strong retail offer, with tenants including Marks and Spencer, House of Fraser, Boots, H&M, Top Shop and River Island. z Located in a prime corner location on the Parade at its junction with Warwick Street. z Freehold. z New letting on a 10 year Full Repairing lease at a re-based rent, secured against the undoubted covenant of Oliver Bonas Limited z Passing rent of 130,000pax z Reversionary rental value given recent open market letting to Pavers at 74 The Parade. z Planning permission granted for residential conversion of the self-contained second/third floors for 5 flats. z We are instructed to seek offers in excess of 2,530,000 (Two Million Five Hundred and Thirty Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 5.50% on the retail income and 100 per sq ft on the residential accommodation, assuming purchaser s costs at 6.40%.

LOCATION M1 M6 Royal Leamington Spa is an attractive and affluent town located in Warwickshire, approximately 2 miles east of Warwick, 8 miles south of Coventry and 18 miles south east of Birmingham. Due to its strategic location, Leamington Spa ROYAL LEAMINGTON SPA M5 A46 A429 M40 M1 M1 A14 benefits from excellent transport links with direct access to Junction 13 (5 miles / 11 M5 minutes), giving access to the South and J14 (4 miles / 10 minutes), giving access to M40 M25 the M42 and the North, via the M40. The town is also well connected by rail, with a regular direct service to London Marylebone in 1 hour 15 minutes. There is a direct train service to Birmingham Moor Street and New Street in 30 minutes, as well as a direct train service to Birmingham International, giving access to the airport in 23 minutes.

DEMOGRAPHICS Royal Leamington Spa has a primary catchment population of 180,000 and is ranked 21st of the PROMIS centres on the affluence indicators. The catchment also benefits from a significant number of tourists visiting Warwick Castle, the Royal Pump Rooms as well as the new Art Gallery and museum. Corresponding spending levels are also well above the national average, with 35% of the population within the most affluent socioeconomic group AB, compared to the national average of 25%. Retail expenditure is high, with the town ranking 13th in the UK, in terms of forecast growth in comparison retail expenditure (2015-2020). Due to it s close proximity to the University of Warwick, Leamington Spa has a student population of around 9,500, significantly above the PMA centres average. Major employers in the town include global organisations such as National Grid, Millward Brown and Wolseley. PRIMARY CATCHMENT POPULATION

RETAILING IN LEAMINGTON SPA Royal Leamington Spa boasts an excellent retail provision, with approximately 1.16m sq ft (107,764 sq m), of retail floorspace, above the Promis average in terms of volume and quality of accommodation. The town is ranked 43rd on the basis of its Retail Score and 41st on the PMA Fashion Score. The prime retailing is focused around The Parade, where many of the town s national retailers are focused, including Marks & Spencer, House of Fraser, H&M and Monsoon. Royal Leamington Spa has two managed shopping centres, The Royal Priors is the town s principle scheme and offers approximately 130,000 sq ft (12,077 sq m) of covered retail accommodation arranged over two floors. The scheme is anchored by Marks & Spencer, GAP, Topshop and New Look. Regent Court is located to the south of the town centre and is an open air scheme, providing 70,000 sq ft of primarily A3 accommodation let to tenants including Travelodge, Côte, Turtle Bay, YO! Sushi, Nando s with retail tenants including L.K. Bennett and Jaeger.

44-46 PARADE & 62-66 WARWICK STREET LEAMINGTON SPA NAS OLIVER BO WEAR OT PAVERS FO NORTH For Identification purposes only

SITUATION The subject property is situated in a 100% prime corner trading location on the Parade at its junction with Warwick Street. Occupiers in the immediate vicinity include WH Smith, H&M and House of Fraser. PRIME TRADING LOCATION DESCRIPTION The subject property comprises an end of terrace, four-story regency property, with retail accommodation arranged over ground and first floor. The second and third floors are currently vacant, with planning permission having been obtained for a 5 flat residential conversion, with self-contained access from Warwick Street. Further details are available from this office. The property is Grade II listed and lies within the conservation area.

ACCOMMODATION The property comprises the following approximate Net Internal floor areas set out in the accommodation schedule below. Retail accommodation Floor Area (sq ft) Area (sq m) Ground sales 2,087 193.9 Ground floor ITZA 1,111 103.2 Bin store 68 6.3 First floor sales 926 86.0 First floor ancillary 926 86.0 Total 4,007 372.25 Residential Proposed Areas Floor Size Area (sq ft) Area (sq m) 2nd Floor 1 bed 405 37.62 2 bed 909 84.45 Bedsit 418 38.83 3rd Floor 2 bed 640 59.46 2 bed duplex 922 85.65 Total 3,294 306.01

PLANNING CONSENT The vendor received planning permission to create 5 residential units on the second and third floors in August 2016. Planning permission was granted for the change of use of part of the ground and first floor from a shop (Use Class A1) to a flexible use, as either a shop or a restaurant (Use Classes A1 or A3) and change of use as part of ground and first floor and all of the second and third floors to residential use, comprising 5 flats, with associated internal and external works to enable the proposed conversion. Further information is available from this office. TENURE The property is held freehold.

TENANCIES The ground and first floor is let to Oliver Bonas Limited on a new 10 year Full Repairing and Insuring lease, from 30th October 2017 at a passing rent of 130,000 pax, with a tenant option to break in the 5th year of the term, subject to a penalty of 32,000. We have analysed the passing rent of 130,000 to reflect 100.75 Zone A, adopting a rate of A/12 on the first-floor sales area and A/20 on the first-floor ancillary area. The transaction was agreed at the end of 2016 and is now reversionary proven by the recent letting of 74 Parade in January 2018 to Pavers, at a rent of 85,000 p.a reflecting a net Zone A rent of 132.50 per sq ft. It is our opinion that the property would currently have a rental value of 155,000 reflecting a Zone A of 120 per sq ft COVENANT Oliver Bonas is an independent British lifestyle store, specialising in fashion and homeware, currently trading from 63 stores across the UK. The company have an Experian score of 100/100. The salient financial summary can be set out below. 31/12/2016 31/12/2015 30/11/2014 Experian GBP GBP GBP Score Turnover 50,098,655 42,555,212 30,265,657 Pre-tax profits 4,069,410 5,176,848 2,199,251 Net Worth 5,829,221 4,637,771 3,700,500 100 VAT 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 The property has an EPC rating of D82 and further information is available on request.

PROPOSAL We are instructed to seek offers in excess of 2,530,000 (Two Million Five Hundred and Thirty Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.50% and a reversionary yield of 6.56% on the retail income. A net capital value of 100 per sq ft has been applied to the residential accommodation, assuming purchaser s costs at 6.40%. We have received advice from a local estate agent who has estimated a current completed residential end value of approximately 1,210,000 reflecting an end capital value of 367 per sq ft. For further information, please contact: PHILIP HAY BROOK WANNOP 020 7637 7100 020 7637 7100 phay@jacksoncriss.co.uk brookw@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. 100410. Designed by TCC 02/18.