Anchored Retail & Office Investment

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Jonah Bates
5 years ago
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1 TESCO CURRENTLY FITTING OUT BEHIND HOARDINGS Anchored Retail & Office Investment NORTHAMPTON HOUSE, 1-3 HIGH STREET & POPLAR ROAD, SOLIHULL B91 3AP

INVESTMENT SUMMARY Prime retail location in affluent Midlands town Ground floor convenience store with separate upper floor offices New letting to Tesco on new 20 year lease (TOB Year 10) 82% of rent

75% LOCATION Solihull is one of the UK s most affluent towns located 9 miles south east of Birmingham.

2 INVESTMENT SUMMARY Prime retail location in affluent Midlands town Ground floor convenience store with separate upper floor offices New letting to Tesco on new 20 year lease (TOB Year 10) 82% of rent secured to Tesco Stores Ltd Overall rent of 189,532 per annum AWULT of 17.6 years to expiries and 8.9 years to breaks Offers in excess of 3,095,000 (Three million and ninety five thousand pounds) 5.75% LOCATION Solihull is one of the UK s most affluent towns located 9 miles south east of Birmingham. Solihull s population is over 200,000 and is regularly named in the best places to live in the UK. The town is located 2 miles west of J5 of M42. The A41 provides access directly in to Birmingham to the north west. Birmingham Airport is 6 miles to the north of the town, as is the NEC and Birmingham International Railway Station. The town centre railway station is on the Birmingham Snowhill to Marylebone line. Travel time into Birmingham is about 10 minutes and to London 1 hour 45 minutes. Solihull s major employers include Jaguar LandRover, National Grid, Paragon Finance and npower. Solihull s average house price in 2018 is 360,000, as reported by Zoopla. High Street & Entrance to Touchwood Shopping Centre

RETAILING IN SOLIHULL The town s retail provision is anchored by Touchwood Shopping Centre which is a 540,000 qft scheme anchored by a 265,000 sqft John Lewis and other retailers such as H&M, Apple,

The subject property is located opposite the Poplar Arcade entrance into Touchwood on the corner of High Street and Poplar Road. High Street links to Mell Square.

3 RETAILING IN SOLIHULL The town s retail provision is anchored by Touchwood Shopping Centre which is a 540,000 qft scheme anchored by a 265,000 sqft John Lewis and other retailers such as H&M, Apple, Hollister and Superdry. The town is ranked 38th in the PROMIS retail centres. The subject property is located opposite the Poplar Arcade entrance into Touchwood on the corner of High Street and Poplar Road. High Street links to Mell Square. Poplar Road is the main bus stop destination for the town centre. Nearby occupiers include Caffe Nero, Starbucks, McDonalds, Loungers, The Works and various national banks. DESCRIPTION The subject property is a highly prominent building arranged over basement, ground and two upper floors. After recent landlord works the ground floor and part first floor is now a single retail unit let to Tesco, having previously been three separate shops. There has been a goods lift installed serving ground and 1st floors. Tesco are currently fitting out and are due to be open and trading by mid November. Part of the upper floors provides small office suites from 336 sqft, these can be combined to create larger suites. The offices have a separate entrance foyer accessed from Poplar Road. There is currently one suite of 621 sqft currently vacant. Indicative Ground Floor Layout

ACCOMMODATION Overall the property provides 575 sqm (6,184 sqft) of accommodation on a net internal area basis. Individual floor areas are detailed in the tenancy schedule. TENURE Freehold.

4 ACCOMMODATION Overall the property provides 575 sqm (6,184 sqft) of accommodation on a net internal area basis. Individual floor areas are detailed in the tenancy schedule. TENURE Freehold. TENANCIES The property is currently let on four leases with 17.6 years to expire and AWULT of 8.9 years to breaks. The basement, ground & part 1st floor have just been let to Tesco Stores Ltd on a 20 year term at 155,000 per annum, they provide 82% of the overall rental income. Tesco do have a break option at Year 10. There are five yearly rent reviews to RPI, with a collar and cap of 0-2.5%. The offices are let on more flexible terms with an average rent of only per sqft. There is a stepped rental increase due in one of the leases in The total rent is 189,532 per annum. There is a service charge across the whole property, currently budgeted at 20,000 per annum and is split on a pro rata basis. Floor Tenant Floor Area (sq ft) (ITZA) Ground Tesco Stores Ltd G -2,003 (1,087 ITZA) 1st -1,593 Rent ( pa) Lease Start Lease Expiry (Break) 155,000 29/09/ /09/2038 (29/09/2028) Comments 5 yearly reviews to RPI (with collar & cap of 0-2.5%). Initial rent free of 6 months granted, this will be covered by the vendor. First K Lone 336 3,000 29/09/ /09/2022 Rent to increase to 3,300 on 29/09/2020. s provisions of the L&T Act 54 are excluded. Tenant has been in occupation since First & Second Cunningtons LLP 1,153 17,500 25/08/ /08/2020 Tenant has been in occupation since Second D N Whiting & N Purches 478 4,032 29/09/ /03/2021 (Quarterly break options) Break option requires a minimum of 3 months notice. s provisions of the L&T Act 54 are excluded. Tenant has been in occupation since Second Vendor Guarantee , months Vendor to provide a 12 month rental guarantee. Total 6, ,532

COVENANT Tesco is the UK s largest supermarket with reported 2018 Group sales of 51 billion, up 2.3% on 2017. Pre-tax profits of 1.298 billion were reported, up 795% on 2017 figures.

5 COVENANT Tesco is the UK s largest supermarket with reported 2018 Group sales of 51 billion, up 2.3% on Pre-tax profits of billion were reported, up 795% on 2017 figures. The comapny have a 5A1 D&B rating. Cunningtons LLP are a law firm that have been in practice over 260 years and specialise in residential conveyancing. There are 8 offices around the UK. The Solihull branch was opened in Whiting & Purches is an established law firm specialising in criminal law, they set up in K Lone is also a lawyer who has been in Northampton House since PROPOSAL We are instructed to seek offers in excess of 3,095,000 (Three million and ninety five thousand pounds). A purchase at this level would show an initial yield of 5.75%, after allowing for purchaser s costs of VAT VAT will be applicable on the purchase. It is intended that the purchase will be treated as a TOGC. EPC The property has a single EPC rating of D-85. The certificate is available on request. FURTHER INFORMATION Should you require further information or wish to arrange an inspection please contact: ANDREW PRICE andrew.price@fspproperty.co.uk ANDREW FRANCK-STEIER andrew.franck-steier@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House Colmore Row, Birmingham, B3 3BD Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Retail, Office & Healthcare Investment Long Row & 77/ 77A Upper Parliament Street, Nottingham NG1 6JE

Retail, Office & Healthcare Investment 62-64 Long Row & 77/ 77A Upper Parliament Street, Nottingham NG1 6JE INVESTMENT SUMMARY n Large mixed use building in central Nottingham with frontages onto both