4-24 HOWARDSGATE 6-8 WIGMORE SOUTH WELWYN GARDEN CITY, AL8 6BQ. Prime Pitch Retail Parade

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1 4-24 HOWARDSGATE & 6-8 WIGMORE SOUTH WELWYN GARDEN CITY, AL8 6BQ Prime Pitch Retail Parade

INVESTMENT SUMMARY Prime pitch retail parade located in the centre of Welwyn Garden City. Welwyn Garden City is an affluent, well-connected South East commuter town.

2 INVESTMENT SUMMARY Prime pitch retail parade located in the centre of Welwyn Garden City. Welwyn Garden City is an affluent, well-connected South East commuter town. Prominent position on, Welwyn Garden City s dominant high street retail pitch. Excellent footfall location, with Sainsbury s supermarket and car park to the rear, accessed via Wigmore South. Nearby occupiers include Cote Brasserie, Bills, Pizza Express, Halifax, Costa and Prezzo. Currently configured as 8 retail units and 4 residential apartments. The retail is multi let to eight tenants including Superdrug, Zizzi s Restaurant, Martins & Co, Cancer Research and The Salvation Army. Attractive Average Weighted Unexpired Lease Term of 8.2 years to expiries and 5.9 years to breaks. Total passing rent of 406,450 per annum. Reversionary potential to 413,171 per annum. Highly secure income with 93% rated by Creditsafe as Low Risk or Very Low Risk covenants. Strong trading pitch with recent lease regears demonstrating tenant commitment to the location and only two unlet units on. Virtual freehold year interest at a peppercorn rent. Asset management opportunities to regear leases with existing occupiers, convert the office space to residential. Seeking offers in excess of 5,600,000. Allowing for 1,100,000 for the residential element and Purchaser s costs of 6.61% this reflects an attractive Net Initial Yield 7.36% & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 3

3 LOCATION Welwyn Garden City is an affluent commuter town in Hertfordshire located 22 miles (35 km) north of Central London. Welwyn Garden City benefits from strong transport links. Junctions 4, 5 and 6 of the A1(M) are all within 2 miles (3 km) of the town centre, which provides a north to south arterial route between London and the north east of England. WELWYN GARDEN CITY LUTON AIRPORT 13 MILES CONNECTS TO 70 DESTINATIONS The town benefits from an excellent position within London s northern commuter belt. Junction 23 of the M25 Motorway intersects with Junction 1 of the A1(M) just 8 miles (13 km) to the south. STEVENAGE 9 MILES KINGS CROSS 28 MINS MOORGATE 46 MINS Regular direct rail services to London (Kings Cross and Moorgate) are provided from Welwyn Garden City with fastest journey times of 28 and 46 minutes respectively making the town desirable for London commuters. Luton Airport is conveniently located 13 miles (20 km) north west of the town, which connects to 70 national and international destinations. LUTON 13 MILES N LUTON STEVENAGE ST ALBANS 8 MILES WELWYN GARDEN CITY HATFIELD 4 MILES Aylesbury A4010 A413 Berkhamsted Amersham Hemel Hempstead A41 M1 LUTON ST ALBANS A1(M) WELWYN GARDEN CITY HATFIELD M25 High Wycombe Watford M1 Barnet Enfield CENTRAL LONDON M40 Beaconsfield M25 Harrow 22 MILES Maidenhead Slough Uxbridge Wembley A40 CENTRAL LONDON M4 A & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 5

WELWYN GARDEN CITY RETAIL OFFER Welwyn Garden City has an estimated shopping population of approximately 90,000 with the area expected to

Welwyn Garden City is one of the most affluent PROMIS catchments, with a significantly above average proportion of adults categorised within

The town centre s retail provision extends to approximately 520,000 sq ft which is anchored by Land Securities Howard Centre.

restaurant and convenience retail offer is centred around, an attractive square with central landscaped gardens, which fronts The Howard

is anchored by a Sainsbury s supermarket which is adjacent to the subject property alongside John Lewis and Debenhams department stores.

4 WELWYN GARDEN CITY RETAIL OFFER Welwyn Garden City has an estimated shopping population of approximately 90,000 with the area expected to benefit from significantly above average population growth in the next 5 years. Welwyn Garden City is one of the most affluent PROMIS catchments, with a significantly above average proportion of adults categorised within the most affluent AB social group (which includes those in managerial and professional occupations). The town centre s retail provision extends to approximately 520,000 sq ft which is anchored by Land Securities Howard Centre. The Howard Centre provides 58 units across 240,000 sq ft and is the town s fashion retail focus with key occupiers below: The town s prime restaurant and convenience retail offer is centred around, an attractive square with central landscaped gardens, which fronts The Howard Centre to the east. is anchored by a Sainsbury s supermarket which is adjacent to the subject property alongside John Lewis and Debenhams department stores. s strength as a retail location is reflected in there being almost no unit availability. Key restaurants on include: in addition to Boots, Halford s, Holland & Barrett and Superdrug. N BRIDGE ROAD PARKWAY PARKWAY HOWARDSGATE STONEHILLS BRIDGE ROAD HOWARDSGATE 10 MIN WALK FRETHERNE ROAD THE HOWARD CENTRE SHREDDED WHEAT DEVELOPMENT SITE BROADWATER ROAD & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 7

380 space car park for the Sainsbury s supermarket which is immediately to the rear of the Property.

5 N SITUATION The Property is prominently located on the southern side of at its corner with Wigmore South and Parkway. In addition to the footfall generated from, Wigmore South is a busy link to the entrance and c.380 space car park for the Sainsbury s supermarket which is immediately to the rear of the Property. THE HOWARD CENTRE VACANT IVORY DENTAL CLINIC ENT TO ADECCO BACKHOUSE BETTING OFFICE & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 9

KEY DEVELOPMENT Welwyn Garden City has seen a sustained increase in residential accommodation through the conversion of offices under Permitted Development Rights.

The former Shredded Wheat site at Broadwater Road, a 10 minutes walk from, is the town s largest development with resolution to grant planning being achieved in December 2018 for the development of a

6 KEY DEVELOPMENT Welwyn Garden City has seen a sustained increase in residential accommodation through the conversion of offices under Permitted Development Rights. Approximately 500,000 sq ft of offices are understood to have been converted, which has led to an increase in the density of the town s shopping population. The former Shredded Wheat site at Broadwater Road, a 10 minutes walk from, is the town s largest development with resolution to grant planning being achieved in December 2018 for the development of a residential led mixed use scheme, comprising 1 million sq ft including c.1,454 apartments. This should further boost retail spend within the town. Plans are also being trialled by the Council along and Stonehills for a reduced speed limit and part pedestrianisation to further enhance the retail experience. APPROX. 500,000 SQ FT OF OFFICE SPACE CONVERTED TO RESIDENTIAL ACCOMMODATION NEW RESIDENTIAL SCHEME 10 MINS WALK FROM HOWARDSGATE CGI of the proposed scheme for former Shredded Wheat factory & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 11

The Property forms half of an island block with frontage to and benefits from rear service access.

7 DESCRIPTION The Property comprises an attractive retail parade configured as eight units. Two of these are capable of subdivision, while independent units can equally be amalgamated. The Property forms half of an island block with frontage to and benefits from rear service access. The upper parts in the main comprise residential accommodation which has been sold off. Unit 10 and 22/24 are the only units to include first floor accommodation. There is basement accommodation accessed via Parkway. SOLD OFF INTEREST SOLD OFF INTEREST For indication purposes only & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 13

TENANCY TENURE The Property is let in accordance with the below tenancy schedule and provides an Average Weighted Unexpired Lease Term of 8.2 years to expiries and 5.9 years to breaks.

Unit 4/6 10 12/14 16 18 20 22/24 6/8 Wigmore South York House Wigmore South Denmark House Parkway Tenant (Trading As) Azzurri Restaurants Ltd (Zizzi s) Individuals (Ivory Dental Clinic) Floor GIA (Sq

03 Ground 1,426 First 560 849.92 12-Mar-15 11-Mar-40-12-Mar-20 26,000 29.00 26,000 29.00 Quacar Investments Corp.

Sold off on 999 year lease. Occupied by HSBC. Ground 990 599.08 23-Dec-16 22-Dec-26 23-Dec-22 23-Dec-21 33,000 55.08 33,000 55.08 Lease guaranteed by Mr S. Dooley. Ground 918 587.

8 TENANCY TENURE The Property is let in accordance with the below tenancy schedule and provides an Average Weighted Unexpired Lease Term of 8.2 years to expiries and 5.9 years to breaks. 999 year long leasehold interest less 10 days, from 3 December 2015 at a peppercorn rent. Unit 4/ / /24 6/8 Wigmore South York House Wigmore South Denmark House Parkway Tenant (Trading As) Azzurri Restaurants Ltd (Zizzi s) Individuals (Ivory Dental Clinic) Floor GIA (Sq Ft) ITZA Lease Start Lease Expiry Break Date Rent Review Rent ( Pa) Rent ( ZA) ERV ( Pa) ERV ( Psf / ZA) Ground 3, Feb Feb Feb-22 75, , Ground 1,426 First Mar Mar Mar-20 26, , Quacar Investments Corp Jun Jun ECP Lettings Ltd (Martins & Co) Salvation Army Trading Company Ltd Comments Lease guaranteed by Azzurri Central Ltd. D2 consent. Rent deposit in place. Sold off on 999 year lease. Occupied by HSBC. Ground Dec Dec Dec Dec-21 33, , Lease guaranteed by Mr S. Dooley. Ground Feb Feb , , Cancer Research UK Ground Mar Mar Mar Mar-20 30, , Superdrug Stores Plc H. Backhouse (Baker Street) Ltd (Backhouse Bookmakers) Ground 4,176 First 560 1, Sep Sep Sep Sep-23 95, , Ground 1, Nov Nov-22-35, , Adecco UK Ltd First 1, Aug Aug Aug-21 25, , Vacant Basement 2, , Commercial Sub Total 15, , , Wigmore South 4 Wigmore South Rent increased at Feb-18 review by 1,500 pa. Feb-18 break not exercised. Vendor to top up stepped rent to year 5 level. See Note 1. Tenant break option subject to 23,750 penalty. Lease surety from Office Angels Ltd. PDR consent for two flats. See Note 2. Private Individual Flat Nov-19 15,300 15,300 2 bedroom, 2 bathroom. Private Individual Flat Nov-19 12,600 12,600 2 bedroom, 1 bathroom. Private Individual Flat Sep-19 15,300 15,300 2 bedroom, 1 bathroom. Private Individual Flat Mar-19 10,500 10,500 1 bedroom, 1 bathroom. Residential Sub Total 2,745 53,700 53,700 Totals 18, , ,171 Notes: 1. Rent subject to stepped rents as part of lease renewal. Year 1 75,000 pa, Year 2 80,000 pa, Year 3 85,000 pa, Year 4 90,000 pa, Year 5 95,000 pa. 2. Permitted Development Rights for 840 sq ft / 78sq m 2 bedroom, 1 bathroom flat and 484 sq ft / 45 sq m 1 bedroom 1 bathroom flat & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 15

PERMITTED DEVELOPMENT The office accommodation currently let to Adecco provides future potential for conversion to residential use via Permitted Development Rights.

The vendor has obtained consent under PDR for the conversion of this space to two residential units, as shown in the below table and layout plan.

Recent evidence supports Permitted Development apartment pricing of 400 per sq ft plus.

9 PERMITTED DEVELOPMENT The office accommodation currently let to Adecco provides future potential for conversion to residential use via Permitted Development Rights. RETAIL MARKET Welwyn Garden City benefits from a well trading, compact high street retail pitch, reflected in the lack of available space. The vendor has obtained consent under PDR for the conversion of this space to two residential units, as shown in the below table and layout plan. Welwyn s strong commuter links render it a desirable residential location, as evidenced by the strength of demand for apartments in particular. Recent evidence supports Permitted Development apartment pricing of 400 per sq ft plus. The Property and the surrounding retail offer benefit from strong tenant retention levels and limited available space. Retail rental levels remain at a significant discount to surrounding major centres. Welwyn therefore provides very sustainable rental tone with future rental growth potential. Superdrug have recently demonstrated their commitment to the town, renewing their lease at 60 Zone A, reflecting the prime position and prominence of their unit. PROPOSED FIRST FLOOR PLAN Snappy Snaps renewed their lease in December 2018 at an understood rent in excess of 55 Zone A. We consider Snappy Snaps premises to an occupy inferior trading position to the Property. Flat Type GIA Sq M GIA Sq Ft 1 1 Bed Bed Totals 123 1, & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 17

COVENANT HIGHLIGHTS 93% of the commercial income is rated by Creditsafe as Low Risk or better.

200 in store pharmacies. Superdrug forms part of the A.S. Watson Group, the world s largest international health and beauty retailer.

30-Dec-17 31-Dec-16 26-Dec-15 Sales Turnover 1,241,783,000 1,213,600,000 1,099,223,000 BACKHOUSE BOOKMAKERS 9% Profit Before Tax 92,934,000

10% 21% QUACAR INVESTMENTS AZZURRI RESTAURANTS LTD The Azzurri Group is one of the UK s best known Italian casual dining restaurateurs,

Zizzi is the Group s largest concept, totalling 156 restaurants, 8 of which opened in 2018.

10 COVENANT HIGHLIGHTS 93% of the commercial income is rated by Creditsafe as Low Risk or better. SUPERDRUG STORES PLC Superdrug is the UK s second largest health and beauty retailer, operating across 800 stores, with c.200 in store pharmacies. Superdrug forms part of the A.S. Watson Group, the world s largest international health and beauty retailer. SUPERDRUG STORES AZZURRI RESTAURANTS 7% 7% 27% Superdrug Stores Plc are rated by Creditsafe as 78A reflecting Very Low Risk. 30-Dec Dec Dec-15 Sales Turnover 1,241,783,000 1,213,600,000 1,099,223,000 BACKHOUSE BOOKMAKERS 9% Profit Before Tax 92,934,000 80,385,000 56,842,000 Net Worth 115,296,000 86,291,000 50,149,000 MARTINS & CO SALVATION ARMY 9% CANCER RESEARCH IVORY DENTAL CLINIC ADECCO 9% 10% 21% QUACAR INVESTMENTS AZZURRI RESTAURANTS LTD The Azzurri Group is one of the UK s best known Italian casual dining restaurateurs, operating the Zizzi, ASK Italian, Coco Di Mama and Radio Alice brands. The Group employs 6,000 people and operates 260 restaurants. Zizzi is the Group s largest concept, totalling 156 restaurants, 8 of which opened in Azzurri Restaurants Ltd are rated by Creditsafe as 76A reflecting Very Low Risk. 02-Jul Jun Jun-15 Sales Turnover 249,250, ,636, ,670,000 Profit Before Tax 19,289,000 17,627,000 17,095,000 Net Worth 76,115,000 60,446,000 45,330, & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 19

INVESTMENT CONSIDERATIONS SOLD OFF INTEREST Prime pitch restaurant and convenience retail offer in an affluent South East commuter town. Reversionary potential with an ERV of 413,171 per annum.

Located adjacent to Sainsbury s supermarket and close to The Howard Shopping Centre which are key footfall drivers. Let to a range established tenants who have shown commitment to the location.

11 INVESTMENT CONSIDERATIONS SOLD OFF INTEREST Prime pitch restaurant and convenience retail offer in an affluent South East commuter town. Reversionary potential with an ERV of 413,171 per annum. Ongoing residential development is increasing the town s population density and therefore increasing the retail catchment. Located adjacent to Sainsbury s supermarket and close to The Howard Shopping Centre which are key footfall drivers. Let to a range established tenants who have shown commitment to the location. Very limited availability within, demonstrating the strength of retailer trading performance. Opportunity to regear leases, amalgamate units and enhance tenant mix. PROPOSAL For indication purposes only We are instructed to seek offers in excess of 5,600,000 (Five Million, Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. SOLD OFF INTEREST SOLD OFF INTEREST A purchase at this level reflects the following attractive profile, allowing for Purchaser s costs of 6.61%: Residential Element 1,100,000 Net Initial Yield 7.36% VAT The Property is elected for VAT which will therefore be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer Of a Going Concern (TOGC). EPC Further information is available upon request. For indication purposes only & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 21

INFORMATION For further information please contact: DATAROOM A dataroom has been set up for prospective purchasers due diligence. Further information is available on request.

12 INFORMATION For further information please contact: DATAROOM A dataroom has been set up for prospective purchasers due diligence. Further information is available on request. Simeon Cohen George Collins simeon@adsre.co.uk george@adsre.co.uk ADS Real Estate Advisors 6 Brook Street, London W1S 1BB Tel: Web: Alex Butler Jonathan Butcher alex.butler@allsop.co.uk jonathan.butcher@allsop.co.uk Allsop 33 Wigmore Street, London W1U 1BZ Tel: Web: Disclaimer: ADS RE Ltd (ADS RE) and Allsop on their own behalf and on behalf of the vendors / lessors of the properties whose agent ADS RE is, gives notice that: 1 (a) All particulars provided are given as a general outline only for the guidance of the intending purchaser, lessee or tenant, and do not constitute in whole or in part, an offer of contract for sale or lease; (b) Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility. None of the statements contained in these particulars as to the property are to be relied upon as statements or representations of fact; (c) The vendor / lessor does not make or give, and neither ADS RE, Allsop nor any of their members or any person in their employment has any authority to make or give any representation or warranty whatsoever in relation to any properties. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor / lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor / lessor and a purchaser or tenant. 2 Prospective purchasers / lessees or tenants should not rely on any particulars provided and are strongly advised to; (a) Satisfy themselves by inspection or otherwise as to the correctness of each statement contained in these particulars; (b) Inspect the property and the neighbouring area; ensure that any items expressed to be included are available and in working order; (c) Arrange a full measured, structural (and where appropriate environmental) survey of the property; and (d) Carry out all necessary searches and enquirie FEBRUARY & 6-8 Wigmore South, Welwyn Garden City, AL8 6BQ 23

ST NICHOLAS HOUSE, GEORGE STREET, LUTON, LU1 2AF

ST NICHOLAS HOUSE, GEORGE STREET, LUTON, LU1 2AF PRIVATECLIENT ST NICHOLAS HOUSE, 15-17 GEORGE STREET, LUTON, LU1 2AF TOWN CENTRE INVESTMENT OPPORTUNITY WITH DEVELOPMENT POTENTIAL INVESTMENT CONSIDERATIONS Prominent investment opportunity in Luton town