21 ST GEORGES STREET CANTERBURY PRIME SECURELY LET RETAIL INVESTMENT

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1 21 ST GEORGES STREET CANTERBURY PRIME SECURELY LET RETAIL INVESTMENT

INVESTMENT CONSIDERATIONS n Securely let to Poundland for a further 9 years at a rebased rent n Prime trading position opposite the Whitefriars Shopping Centre n Attractive Cathedral

2 INVESTMENT CONSIDERATIONS n Securely let to Poundland for a further 9 years at a rebased rent n Prime trading position opposite the Whitefriars Shopping Centre n Attractive Cathedral City dominating its catchment n Prominent modern building n Excellent prospects for short-medium term rental growth n Offers in excess of 4,120,000 reflecting a net initial yield of 6.0% 1

LOCATION RETAILING IN CANTERBURY Canterbury is a historic and attractive Cathedral city located in the heart of Kent, 62 miles south east of London, 17 miles north west of Dover and 29 miles east of

The high speed rail service from Canterbury West to London provides frequent, direct trains to London St Pancras with a fastest journey time of 56 minutes whereas Canterbury East station offers a

3 LOCATION RETAILING IN CANTERBURY Canterbury is a historic and attractive Cathedral city located in the heart of Kent, 62 miles south east of London, 17 miles north west of Dover and 29 miles east of Maidstone. The city is easily accessible by road via the A2 dual carriage way which connects to the M2 leading to London and the Channel Tunnel Rail Terminal, 30 minutes drive to the south east. The high speed rail service from Canterbury West to London provides frequent, direct trains to London St Pancras with a fastest journey time of 56 minutes whereas Canterbury East station offers a service into London Victoria and mainland Europe via Ashford. Additionally Gatwick Airport is only a 1 hour 10 minutes drive. The city boasts an extremely vibrant tourist economy with attractions such as Canterbury Cathedral attracting over one million visitors annually and the city as a whole drawing 6 million day visitors per annum. Retail is bolstered by the cities significant 40,000 student population from the University of Kent, Christ Church University, Canterbury College and Kent Business School, which all have considerable campuses in close proximity to the city centre. The total population within the Canterbury primary catchment area is 480,000 ranking the city 46 out of the PROMIS Centres and is forecast to see above average percentage growth in available comparison spending from the end of 2015 to The city includes a high proportion of retired aged 65 and over and young adults Canterbury provides approximately 1 million sq ft of retail floor space and draws upon an extensive catchment area in North Kent. The core retailing area is based upon a linear pedestrianised stretch principally along St Georges Street, Parade and High Street. Due to its compact historic core, there is little threat of any new developments within the city centre. The 600,000 sq ft Whitefriars Shopping Centre, which was refurbished and opened in 2004, is anchored by Fenwicks with tenants including Zara, H&M, M&S and Hobbs. The Marlowe Arcade situated between Margaret Street and the Whitefriars Centre opened in 1985 and was refurbished in 2007; anchored by Primark, it also contains a number of upmarket retailers including Phase 8, Karen Millen and Ecco. Longmarket is a small scheme further up the high street including Jack Wills, Café Rouge and Wagamama. Canterbury has over 6 million tourists per annum Hemel Hempstead M25 M25 Chelmsford London HEATHROW AIRPORT M25 GATWICK AIRPORT M23 M26 M20 Maidstone M2 CANTERBURY Crawley M20 Dover 2

4 Canterbury is a dominant retailing centre in the south east 3

5 SITUATION The property occupies a prime retailing pitch on St Georges Street adjacent to WH Smith and Superdrug and opposite Fenwick, Marks & Spencer, Deichmann, Monsoon and Zara. St Georges Street is fully let and benefits from excellent footfall. DESCRIPTION The property is arranged over basement, ground, first and second floors and is trading from the ground floor only with servicing from the rear via Link Lane. The premises are arranged as a large High Street box unit of traditional brick construction offering flexible accommodation rather than other units on George Street which are generally between 800 and 1,200 sq ft. The configuration of the unit offers flexibility for the current retailing requirements. ACCOMMODATION The premises have been measured in accordance with the RICS Code of Measuring Practice 6th Edition as show below: Imperial (sq ft) Metric (sq m) Ground Floor ITZA 2,343 Ground Floor Sales 8, First Floor Storage 7, First Floor Offices Second Floor Ancillary 1, Basement Plant TOTAL 19,630 1,

TENURE RENTAL COMMENTARY The property is held on a 125 year lease from Canterbury City Council commencing on the 15th April 2015 at a current rent of 46,500 per annum and is subject to yearly rent

6 TENURE RENTAL COMMENTARY The property is held on a 125 year lease from Canterbury City Council commencing on the 15th April 2015 at a current rent of 46,500 per annum and is subject to yearly rent reviews to 15% of the passing rent of the sub lease. The long leasehold has recently been re-geared with the council. TENANCY The property is let to Poundland Limited on a full repairing and insuring lease for a term of 15 years from 10th April 2010 at a current rent of 310,000 per annum. The rent is subject to an upwards only review every 5 years to the higher of 310,000 or the Open Market Rental Value. The 2015 rent review remains outstanding. Based on the gross passing rent of 310,000, the head rent payable is 46,500 and therefore the net rent received is 263,500. COVENANT INFORMATION We have analysed the passing rent of 310,000 to reflect a Zone A of 110 psf after applying A/20 on the first floor and A/30 on the second floor. In our opinion the unit has excellent rental growth prospects going forward as Zone A s within the vicinity have historically reached 185 psf prior to the recession. The current passing rent offers a significant discount to historical evidence on this part of the street. Evidence support this current level includes: n 12 St Georges Street is under offer to Linens Direct reflecting a Zone A of 110 psf. n 15 St Georges Street has been let in Jan 2016 to Cards Direct reflecting a Zone A of 116 psf. n 13 The Parade has been let in Sept 2015 to Fitzgerald Jewellers Limited reflecting a Zone A of 131 psf. Excellent prospects for future rental growth Poundland Limited is a variety discount store chain that launched in The company has become an established retailer on the high street with over 450 stores across the UK. Poundland is listed on the London Stock Exchange and is a FTSE 250 Company. They have recently signed a conditional sale and purchase agreement to acquire 99p Stores which will further cement the retailers presence on the high street. The company has the benefit of the following accounts: Date of Accounts 31st March th March th March 2015 Turnover 880,491, ,803,000 1,111,526,000 Pre-tax Profit 34,313,000 41,017,000 45,922,000 Total Net Worth 119,042,000 96,235,000 93,866,000 Experian award Poundland Limited a rating of Very Low Risk (score 100/100) 5

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. EPC An EPC has been conducted and is available upon request.

7 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. EPC An EPC has been conducted and is available upon request. PRICE Our client is seeking offers in excess of 4,120,000 (Four Million One Hundred and Twenty Thousand Pounds) reflecting a net initial yield of 6.0% assuming purchasers costs of 6.56%. CONTACTS Mark Bennett T: M: mbennett@klmproperty.co.uk Simon Harvey T: M: sharvey@klmproperty.co.uk 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. March 2016.

PRIME HIGH STREET INVESTMENT

PRIME HIGH STREET INVESTMENT INVESTMENT CONSIDERATIONS Affluent administrative centre and the county town of Kent. 100% prime pitch on Week Street. Well secured to Marks & Spencer PLC, a 5A1 covenant for