OLD MILL SQUARE SHOPPING CENTRE STORRINGTON WEST SUSSEX, RH20 4NQ

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1 OLD MILL SQUARE SHOPPING CENTRE STORRINGTON WEST SUSSEX, RH20 4NQ Shopping Centre Investment Opportunity Making commercial sense of property

INVESTMENT SUMMARY Established shopping centre located in the centre of Storrington. Good transport links located close to the A283 and adjacent to a car park and bus station.

57% of the income secured on the covenants of Waitrose, Barclays Bank and Costa Coffee franchise. Potential to increase income from letting of vacant units.

2 INVESTMENT SUMMARY Established shopping centre located in the centre of Storrington. Good transport links located close to the A283 and adjacent to a car park and bus station. Purpose built retail precinct anchored by a Waitrose supermarket. 13 ground floor retail units and 10 office units on the first floor totalling 33,341 sq ft. 57% of the income secured on the covenants of Waitrose, Barclays Bank and Costa Coffee franchise. Potential to increase income from letting of vacant units. Potential to expand existing Waitrose Store. Potential to convert the upper parts to residential use, subject to planning. Current gross income 374,980 pa. ERV when fully let 452,730 pa. Price: 4,500,000 (four million five hundred thousand pounds), subject to contract and exclusive of VAT. Initial Yield: 7.04% Reversionary Yield: 9.53% Equivalent Yield: 9.33% Net of purchase costs of 5.5% and current non-recoverable costs on the vacant units. 2 2

3 1

LOCATION The village of Storrington is one of 2 villages in the civil parish of Storrington and Sullington and lies at the foot of the north side of the South Downs in West Sussex.

north east. There are good road communications in the area with the A283 running through the village and providing access to the A24 approximately 3 miles to the east.

4 LOCATION The village of Storrington is one of 2 villages in the civil parish of Storrington and Sullington and lies at the foot of the north side of the South Downs in West Sussex. Storrington is situated some 60 miles to the south of central London, 9 miles north of Worthing and approximately 15 miles south of Horsham; Gatwick Airport is circa 25 miles to the north east. There are good road communications in the area with the A283 running through the village and providing access to the A24 approximately 3 miles to the east. There are railway stations at both Pulborough and Amberley, each within 3.5 miles. Storrington is an affluent village and Waitrose store draws significant custom from the surrounding villages. 4

5 SITUATION DEVELOPMENT POTENTIAL MANAGEMENT POTENTIAL Old Mill Square is located in the centre of Storrington. To the north of the property is the bus station and other commercial property, fronting Old Mill Drive, with residential properties on the western side of the road. The centre of the village is situated to the west of the property and comprises older more traditional units. To the north on Old Mill Drive are further residential properties and south of the property are other retail units including an HSBC Bank. DESCRIPTION The land to the rear of Waitrose is owned by Waitrose and there were advanced plans to expand the supermarket to approximately 34,000 sq ft. However, Waitrose have decided not to proceed at the moment but would be prepared to discuss options with the new owner of Old Mill Square. Some units were deliberately left vacant to facilitate development of the expanded Waitrose unit. The proposed extension was subject to a Section 106 agreement and the grant of planning permission dated There is the opportunity to renew the existing leases and let the vacant units which will produce additional income or convert the offices to residential units, subject to the grant of planning consent. The Shopping Centre has a prominent frontage to Old Mill Drive which is easily visible from the High Street. On the ground floor the property provides 13 retail units which are occupied by 8 tenants. Two of the retail units are currently vacant. The retail units are formed around a central square with predominantly office accommodation at first floor level accessed from two staircases from the ground floor. Access to the ground floor retail units is from either the rear car park or from the front of the property between Barclays Bank and unit 25. There is vehicular access to the property through the public car park which is run by Horsham District Council. The property is of concrete frame construction with rendered elevations under a flat roof. Old Mill Drive frontage 5

6 SCHEDULE OF AREAS Unit Tenant GIA Sq Ft NIA Sq Ft NIA Sq M ITZA Sq Ft Service Charge Units Ground Floor - Retail 1 & 2 Barclays Bank plc 1, ,148 2 Barclays Store & Strong Room Barclays 1st Floor St Barnabas Hospice P&R Tomsett Martin Steels Ltd Geet Yeung CM & IT Hanwell CM & IT Hanwell a CM & IT Hanwell Sep Premiere Coffee Ltd 1, , Vacant & 13 Waitrose Ltd 7,525 3 Waitrose Ltd 1st Floor 5, Vacant First Floor - Offices 14 Colin Buck Vacant Vacant P Reed Vacant Anderson Rowntree 3, Vacant A Step Ahead Ltd Vacant Vacant 1, Total 12,606 20,735 1, Note on floor areas: Ground floor shop units 3, 4, 5, 6, 7-8 all include rear extensions.

SERVICE CHARGE The leases are drawn on equivalent full repairing and insuring terms.

7 RENTS The current gross rent is 374,980 pa and the net rent is currently 334,530 pa allowing for non recoverable costs such as service charge and empty rates on the vacant units. The estimated rental value of the centre when fully let is 452,730 pa. SERVICE CHARGE The leases are drawn on equivalent full repairing and insuring terms. There is a service charge for the maintenance of the common areas which equates to a circa 1,200 pa service charge cost per unit as indicated in the Schedule of Areas. A copy of the service charge is available in the dataroom. TENURE Freehold. 67

8 TENANCIES - RETAIL UNIT TENANT LEASE RENT REVIEW (BREAK) RENT PA ERV ( ) ITZA RENT PSF COMMENTS Ground Floor - Retail 1 & 2 Barclays Bank plc 5 yrs from St Barnabas Hospice (Sussex) Ltd 20 yrs from P and R Tomsett 20 yrs from Martin Steels Ltd 10 yrs from Geet Yeung 19 yrs from CM and IT Hanwell 21 yrs from CM and IT Hanwell 21 yrs from a CM and IT Hanwell 21 yrs from Premiere Coffee Ltd 10 yrs from , Tenant renewed lease in , Tenant holding over. 17, T/A Truffles. Tenant holding over , Tenant relocated from Unit and 5 yearly (Break ) 16, T/A The Plaice. 8,000 rent deposit. 17, T/A Hanwells Hardware. Tenant holding over. 14, Tenant holding over. 16, Tenant holding over 29, T/A Costa Coffee Rent free until Vacant To Let 14, & 13 Waitrose Ltd 15 yrs from , Supermarket 25 Kiosk Vacant To Let 12,500 8

06.2020) (17.06.2025) 21 Vacant to let 9,000 9,650 10.05 Dental Surgery relocation from Unit 21. Lease to be completed. 7,000 10.60 Hairdressers. Tenant holding over. Lease awaited. 31,830 10.

9 TENANCIES - OFFICES UNIT TENANT LEASE RENT REVIEW (BREAK) RENT PA ERV ( ) RENT PSF COMMENTS First Floor - Offices 14 C.G. Buck 15 yrs from Sept Vacant to let 12, P Reed 10 yrs from Vacant to let 7, CJD Wise & W J Stisted 15 yrs from ( ) ( ) 21 Vacant to let 9,000 9, Dental Surgery relocation from Unit 21. Lease to be completed. 7, Hairdressers. Tenant holding over. Lease awaited. 31, T/A Anderson Rowntree Solicitors. Rent free until A Step Ahead Ltd 3 yrs 6, Under offer. 3 year lease. 3 months rent free. Outside the 1954 Act regarding security of tenure. Mutual option to determine after 2 years. 23 Vacant to let 6, Vacant to let 16,000 Total 374,980 77,750 9

WAITROSE Waitrose is a chain of British supermarkets, which forms the food retail division of Britain s largest employee-owned retailer, the

As of February 2015, Waitrose has 322 branches across the United Kingdom, including 30 little Waitrose convenience stores, and a 5% share of

6 million and an operational profit of 310.1 million in 2014/15. BARCLAYS BANK Reported a profit of 2.28 billion and a turnover of 25.

10 WAITROSE Waitrose is a chain of British supermarkets, which forms the food retail division of Britain s largest employee-owned retailer, the John Lewis Partnership. Its head office is located in Bracknell, Berkshire, England. As of February 2015, Waitrose has 322 branches across the United Kingdom, including 30 little Waitrose convenience stores, and a 5% share of the market, making it the sixth-largest grocery retailer in the UK. Turnover of 6 billion a Pre tax profit of million and an operational profit of million in 2014/15. BARCLAYS BANK Reported a profit of 2.28 billion and a turnover of billion in 2014/15. PREMIERE COFFEE LTD Premiere Coffee Ltd are franchisees for Costa Coffee with over 25 coffee shops. Reported a pre tax profit of million on a turnover of 14.4 million for the period ending

PROPOSAL EPC CONTACT Price 4,500,000 (four million five hundred thousand pounds) subject to contract and exclusive of VAT. This shows a net initial yield of 7.04% rising to 9.

Any rent free periods outstanding on completion will be covered by way of a price adjustment.

11 PROPOSAL EPC CONTACT Price 4,500,000 (four million five hundred thousand pounds) subject to contract and exclusive of VAT. This shows a net initial yield of 7.04% rising to 9.53% on the lettings of the vacant units. The overall equivalent yield being 9.33% net of purchase costs and non-recoverable service charge/rates on the vacant units of 40,450. Any rent free periods outstanding on completion will be covered by way of a price adjustment. VAT We understand the property is registered for VAT and therefore VAT will be payable on the purchase price unless acquired by way of a Transfer of a Going Concern. EPC s relating to the property are available in the Dataroom access available on request. DATAROOM Lease and other documentation relating to the property are available in the Dataroom access available on request. VIEWING Strictly by appointment through the sole agents. Julian Walker Tel: +44 (0) Mobile: +44 (0) jwalker@vailwilliams.com Ian Froome Tel: +44 (0) Mobile: +44 (0) ifroome@vailwilliams.com Toby Yates Tel: +44 (0) Mobile: tyates@vailwilliams.com Liz Dixon (Dataroom access) ldixon@vailwilliams.com Vail Williams LLP Meridians House 7 Ocean Way, Ocean Village Southampton, SO14 3TJ Bus area to the north of Waitrose Car Park 11

Our offices Birmingham Four Brindleyplace Birmingham B1 2JB Tel: +44 (0)121 654 1065 Camberley 4A Priory Court Tuscam Way Camberley Surrey GU15 3YX Tel: +44 (0)1276 682501 Crawley Unit 4 Peveril

12 Our offices Birmingham Four Brindleyplace Birmingham B1 2JB Tel: +44 (0) Camberley 4A Priory Court Tuscam Way Camberley Surrey GU15 3YX Tel: +44 (0) Crawley Unit 4 Peveril Court 6-8 London Road Crawley West Sussex RH10 8JE Tel: +44 (0) Guildford Carriage House Walnut Tree Close Guildford Surrey GU1 4TX Tel: +44 (0) Heathrow 450 Bath Road West Drayton UB7 0EB Tel: +44 (0) London 7-10 Chandos Street Cavendish Square London W1G 9AJ Tel: +44 (0) Portsmouth 1000 Lakeside North Harbour Western Road Portsmouth PO6 3EN Tel: +44 (0) Southampton Meridians House 7 Ocean Way Ocean Village Southampton SO14 3TJ Tel: +44 (0) Thames Valley 540 Thames Valley Park Reading Berkshire RG6 1RA Tel: +44 (0) Birmingham Thames Valley London Camberley Heathrow Guildford Crawley Southampton Portsmouth Misrepresentation Act 1967 Vail Williams for themselves and for the vendors or lessors of this property, 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 nor constitute part of an offer or contract. 2. All descriptions, dimensions, reference 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 Vail Williams has any authority to make any representation or warranty whatsoever in relation to this property. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction. Vail Williams LLP, a Limited Liability Partnership, registered in England (number OC319702). Registered office: 540 Thames Valley Park, Reading, Berkshire RG6 1RA. Any reference to a Partner means a Member of Vail Williams LLP or an employee or consultant with equivalent standing and qualifications. A full list of Members is open for inspection at the registered office. Regulated by RICS VIA.WIL.025 Making commercial sense of property July2015

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