SUBSTANTIAL TOWN CENTRE RETAIL BLOCK INVESTMENT

SUBSTANTIAL TOWN CENTRE RETAIL BLOCK INVESTMENT

2 INVESTMENT SUMMARY Prominent Town Centre Retail Block 18 Retail units with upper parts Good record of renewals and tenants not exercising break clauses Substantial public realm improvement works just completed Rebased rents Compelling reasons for rental growth 93% national and regional tenants Income 590,855 per annum Offers in the region 5,250,000 Yield 10.55% with potential to quickly increase to 13%+

3 INTRODUCTION We are instructed to seek a purchaser for this prominent retail block of approximately 44,000 sq ft comprising 18 shops and upper parts. The block occupies a strategic location at the southern end of Bolton town centre and is beginning to benefit from huge public realm works many of which are recently completed with more to come. Completed works include repaving and landscaping of the street, smart new frontages and colour schemes to all the shops and relocation of the bus station to form a new integrated rail and bus interchange. As a result, Newport Street now represents the main gateway into the centre with increased pedestrian flows. The block has a very high proportion of national and good regional s and a very good record of retaining tenants at renewal and of tenants not exercising break clauses. Rents are rebased to provide good potential for growth as well as a solid income in the interim. Letting the few currently vacant units will immediately increase yield.

4 BOLTON The town is situated within the Greater Manchester conurbation some 12 miles north-west of Manchester, 19 miles north-east of Warrington and 21 miles south-east of Preston. Resident population is 283,100 (2016 Bolton Council estimate) and this has grown steadily over the previous five years. Total catchment population is estimated at over 500,000. The town has a mixed economy with traditional industries complimented with modern high tech companies, with administration, service industries, education and tourism. Bolton University has over 6,000 students and continues to expand its courses and facilities. 73 A579 Leigh Atherton A577 A572 A579 Wigan 76 A579 A5082 66 BOLTON M61 A5082 Walkden A572 A579 A575 0 A579 Farnworth 65 66 Radcliffe 67 66 Swinton 0 M60 A572 65 M60 Bury A56 65 044 M66 A576 65 A56 044 A56 A576 045 65 M62 046 046 A576 M60 64 144 010 Middleton 64 Blackley 64 64 64 69 Chadderton 63 2 Failsworth Rochdale 27(M) 71 71 73 M60 Oldh 27 Ash Communications are good. The town sits on the M61 with three readily available junctions, whilst the M60 and M66 are within 6 miles to provide good access to the north-west and further afield to the north-east and Midlands. Rail services are available from the busy Bolton station to the north and northwest, with frequent services into Manchester Piccadilly in about 20 minutes. London can be reached in around 2hrs 45 mins. A574 0 GREATER MANCHESTER ER Glazebrook M62 Irlam 144 A57 Barton Moss Carrington A57 M60 02 A576 Trafford Park Salford A5104 A5063 Old Trafford 010 A5103 2 010 Clayton 62 MANCHESTER 010 A34 35 A57 Gorton 62 M60 017 A M67 H Nearest international airport is Manchester and there is a direct rail service taking around 40 minutes. LOCATION A5103 Heaton The shopping centre in Bolton is linear in form with Newport Street at the southern end and the recently reconfigured Market Place shopping centre to the north. Between the two lie Victoria Square, Crompton Place shopping centre, Oxford Street and Deansgate. In common with much of central Bolton, the subject section of Newport Street is fully pedestrianised. Newport Street can be described as the best secondary location within the town. There are a very high proportion of national and good regional s, many of whom are long established service or day to day type retailers. The strength of pitch is perhaps illustrated by there being only 3 charity shops out of a total of 47 on both sides of the street. Newport Street benefits from close proximity to the new 48 million transport interchange. It now represents the main link between it and the remainder of the centre. The Octagon NCP car park is immediately behind the subject property as is the Octagon theatre and historic covered Market. Interchange entrance with Newport Street clearly visable through the open door. Within the Newport Street block is Newport Arcade - providing a direct link to the NCP car park, theatre and covered Market.

Newport Street 5 Town Hall Subject Property Old Bus Station to be re-developed Car Park Bolton Market Institute of Management New Transport Interchange Google Earth 2018

6 PUBLIC REALM WORK Bolton Council has been very proactive in promoting and regenerating the town centre and has committed 100 million to their long term plans to improve many central areas. The projects completed in 2018 have a directly beneficial effect on the subject property: Regeneration of Newport Street. Work started in February 2016 with the intention of finishing in December that year. In the event the work finished very late in 2017 much to the chagrin of shoppers and retailers who were forced to operate in a building site for nearly two years. The work is now finished with smart new paving and landscaping and all the shops sporting new frontages and colour schemes. The street now looks fresh and fitting as the new gateway into Bolton centre. Traders we have spoken to already report increase in trade. New Transport interchange. The bus station has been relocated to a new site adjacent to the railway station just south of Newport Street. The new transport Interchange cost 48 million and constitutes a modern integrated rail and bus transport hub. A short pedestrian walkway directly links the main entrance of the Interchange to Newport Street - which now represents the direct link between it and the remainder of Bolton centre. Octagon Theatre. The theatre sits just west of Newport Street and has been the subject of a 10 million refurbishment. B6205 B6205 St. George s 76 Moore Lane 76 Deansgate B6204 Knoweley St Bolton Town Hall Market Place Shopping Centre Victoria Square B62 Crompton Place Shopping Centre Bow Street A575 Bank St 76 Bury New Rd 66 St Peter s Way Covered Market. This traditional Market hall also lies west of Newport Street and has been the subject of a 4 million refurbishment. Newport Arcade represents the main link between the Market and Newport Street. Institute of Management. This is part of the University of Bolton and has recently developed a new facility adjacent to the Transport Interchange and Newport Street. Blackhorse St Subject Property Newport St Institute of Management Great Moor St 172 Btadshawgate Old Bus Station. This lies to the west of Newport Street and adjoins the Market. Bolton Council have plans to redevelop the general area and specifically the old bus station site with a residential scheme to include a high proportion of student housing (the main university campus at Deane Road is just to the south). New Rail and Bus Transport Interchange Newport St Bridgeman Place A579 Trinity Street

7 DESCRIPTION The accommodation is arranged over ground and two upper floors with a small basement area. The block has brick and decorative concrete panel elevations under flat roofs. There are 18 retail units having a wide range of sizes and many of them have been subject to rear extensions over the years. Ground floors are used for sales with first floors mainly used for storage or ancillary purposes and the second floors as ancillary. All shops have rear servicing from Coronation Street. TENURE The property is held on two very long leases (2-10 and 12-42 Newport Street) from the local authority. They expire in 2252 (234 years unexpired) at peppercorn rents. LETTINGS The property is let to 14 tenants with 4 current vacancies. Details are summarised in the schedule. Current rental income is 590,855 per annum and when fully let the block may produce 744,855 per annum. WAULT is 5.38 years (3.04 years to breaks). All leases are effectively full repairing and insuring with provision for a service charge. There are a few outstanding rent free periods and one tenant paying half rent for a short period. The vendors will cover these situations for a purchaser. All but one of the tenants are national or regional s well suited to the trading pitch. They include Game Retail, Sayers Bakers, Crawshaw Butchers, Shoe Zone, Heron Foods, William Hill, Ladbrokes and Holland & Barrett. Of the 18 units in the block, 10 are let to national s, three are let to good regional s, one is let to a private company and four are currently vacant.

8 COMMENT ON LETTINGS A few lease expiries, rent reviews or breaks occur most years with the longest leases running until 2028. The property has a good record of tenants renewing leases and not exercising breaks - even during the difficult two year period when the local authority was working on the street. 2 Game Retail Ltd Lease has expired but terms are agreed for renewal. 6 Cancer Research UK 2014 break not exercised 8 Greenhalgh Craft Bakery Ltd 2016 break not exercised 10 Crawshaw Butchers Ltd New letting 2015 14 Sayers the Bakers Ltd 2017 break not exercised 16 Shoe Zone Retail Ltd Lease renewed 2017 18/20 Heron Foods Ltd Lease renewed 2017 ADMIRAL 18/20 Heron Foods Ltd Shop just refitted 22 William Hill Lease renewed 2016 26 Holland & Barrett Retail Ltd Lease renewed 2017 30 Luxury Leisure Lease renewed 2015 34 Ladbrokes Betting & Gaming Ltd 2018 break not exercised 36 Eden Mobility Ltd New letting 2018 38/40 Caversham Trading Ltd 2015 break not exercised 42 Diva Beauty Ltd New lease 2017 The remaining four units are vacant and on the market. We can provide interested parties with a marketing update. No. 24 was used by the contractors as the site office during the upgrade works. BOLTON INTERCHANGE

9 TENANCY & ACCOMMODATION Unit 2/4 Tenant Game Retail Ltd Ground Floor (NIA) Floor (ITZA) Rear (NIA) Area (sq ft) First Floor (NIA) Second Floor (NIA) Basement (NIA) Lease Start Lease Expiry Next Review Break Options Rent (per annum) 1,841 1,115-543 342 940 29/09/2012 28/09/2017 - - 80,000 67.90 6 Cancer Research UK 643 480-386 526-24/07/2009 23/07/2019 - - 38,200 72.00 8 10 Greenhalgh Craft Bakery Ltd Crawshaw Butchers Ltd 596 433-457 - - 25/08/2006 24/08/2021 - - 35,000 77.50 Rent (ITZA) 988 682-795 - - 27/03/2015 26/03/2025 27/03/2020 27/03/2020 40,000 55.00 12 Vacant 1,075 562-362 432 - - - - - - 65.50 14 16 Sayers The Bakers Ltd Shoe Zone Retail Ltd 834 491-196 243-28/11/2012 27/11/2022 - - 30,000 59.00 1,395 605 77 1,195-28/03/2017 27/03/2022 - - 35,000 50.00 18/20 Heron Foods Ltd 2,605 1,279 589 2,386 506-22/03/2017 21/03/2027 22/03/2022 22/03/2022 69,000 50.00 ARCADE 22 ARCADE ACCESS TO CAR PARK AND MARKET BEYOND William Hill Organization Ltd 1,748 773 211 915 545-31/01/2016 30/01/2026 31/01/2021 31/01/2021 45,000 52.00 24 Vacant 1,661 786-560 305 - - - - - - 53.00 26 Holland & Barrett Retail Ltd Comments New lease agreed at reduced rent 2014 break not exercised 2016 break not exercised Quoting figure 40,000 pax 2017 break not exercised Rent agreed from 03/2017 Rent agreed from 03/2017 Rent agreed from 01/2016 Quoting figure 44,000 pax 1,824 756-497 208-23/06/2017 22/06/2027 23/06/2022 23/06/2024 40,000 50.40 Break penalty 28 Vacant 1,052 585-384 188 - - - - - - 49.00 30 Luxury Leisure t/a Nobles 1,298 609-492 186-16/12/2015 15/12/2025 16/12/2020-28,650 44.00 32 Vacant 1,302 676-1,613 332 - - - - - - 51.00 34 Ladbrokes Betting & Gaming Ltd 1,518 658-442 256-14/03/2013 13/03/2023 - - 40,000 58.00 36 Eden Mobility Ltd 617 462-388 211-05/01/2018 04/01/2028 05/01/2023 04/01/2023 25,000 50.60 38/40 Caversham Trading Ltd t/a BrightHouse 1,948 1,165 299 797 454-29/9/2010 28/09/2020 - - 60,000 50.00 42 Diva Beauty Ltd 826 525-863 208-31/08/2017 30/08/2022 - - 25,000 42.00 Electricity Substation The NorthWestern Electricity Board Quoting figure 30,000 pax Quoting figure 40,000 pax 2018 break not exercised 12 month rent free period. Break penalty 2015 break not exercised Half rent until 30/05/2020 - - - - - - 25/12/1959 24/12/2019 - - 5 Rent not demanded TOTAL 23,965 12,716 1,184 13,496 5,268 TOTAL 590,855

10 COMMENT ON RENTS Passing zone A rents are included on the schedule. They are generally in the range 50 55 per sq ft and have been set at rebased levels in recent years. They compare with zone A rents in excess of 80 per sq ft at the height of the market. Following two very difficult years with Newport Street effectively being a building site, the street is probably now the smartest in Bolton. The way is now clear for tenants to benefit from a fresh new street and improved pedestrian flows to drive modest rents forward. TENANT COVENANTS Financial information for the tenants is summarised on the schedule. Nearly all tenants are national or regional s. In respect of the only private company, since this is reletivly new a rent deposit is held. Unit Tenant Company Number 2/4 Game Retail Ltd 7837246 6 Cancer Research UK 4325234 8 Greenhalgh Craft Bakery Ltd 580014 10 Crawshaw Butchers Ltd 2399681 14 Sayers The Bakers Ltd 6582290 16 Shoe Zone Retail Ltd 00148038 18/20 Heron Foods Ltd 1392197 22 William Hill Organization Ltd 278208 26 Holland & Barrett Retail Ltd 2758955 30 Luxury Leisure t/a Nobles 2448035 34 Ladbrokes Betting & Gaming Ltd 775667 36 Eden Mobility Ltd 5108932 38/40 Caversham Trading Ltd t/a BrightHouse 5396147 42 Diva Beauty Ltd 9014316 Lease Start Year ending Turnover Pre-Tax Profit Regional Regional Regional Private Ltd company Shareholders Funds Experian Rating 30/07/2016 583.9 million 6.86 million 106.9 million Below Average Risk 31/03/2017 n/a 32.9 million 383.5 million Very Low Risk 21/01/2017 25.1 million - 398,900 16.3 million Very Low Risk 29/01/2017 43.5 million - 1,335,000 3.7 million Below Average Risk 30/09/2016 48.5 million - 114,000 73,000 Above Average Risk 01/10/2016 159.8 million 10.4 million 30.1 million Below Average Risk 31/12/2016 274 million 8.7 million 36.9 million Low Risk 27/12/2016 879 million 223.5 million 134.3 million Low Risk 30/09/2016 444 million 112.8 million 252.2 million Very Low Risk 31/12/2016 60.3 million 7.4 million 17.5 million Low Risk 31/12/2015 830.6 million 49.9 million 1.95 billion Very Low Risk 31/01/2017 11 million 938,638 1,758,930 Very Low Risk 31/03/2017 63.36 million - 817,000 74.69 million Very Low Risk n/a n/a n/a n/a n/a

PROPOSAL For the long-leasehold interests subject to the lettings we seek offers in the region 5,250,000 subject to contract to show an initial yield of 10.55% with potential to achieve 13%+ when the four vacant units are let (costs at 6.6%). The property is registered for VAT and the sale is expected to be by TOGC. FURTHER INFORMATION We can provide further information including EPCs, Legal documentation and marketing updates for the vacancies. Please contact: Stephen Powell 020 7409 2100 020 7318 5751 stephenpowell@smithprice.co.uk John Loveday 020 7409 2100 020 7318 5753 johnloveday@smithprice.co.uk MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract. October 2018 Smith Price LLP is a limited liability partnership registered in England and Wales. Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G