WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN STOKE ROAD, GOSPORT HAMPSHIRE, PO12 1SD

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1 WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN STOKE ROAD, GOSPORT HAMPSHIRE, PO12 1SD

INVESTMENT CONSIDERATIONS Gosport is an established Hampshire town located on the south coast with a population of approximately 82,000 people.

2 INVESTMENT CONSIDERATIONS Gosport is an established Hampshire town located on the south coast with a population of approximately 82,000 people. Prominently located on the edge of Gosport town centre serving the affluent Alverstoke suburb and wider area. Large retail unit of 23,975 sq ft with approximately 80 car parking spaces. Waitrose have been in continuous occupation for over 43 years. A reversionary lease was signed by Waitrose starting last year demonstrating commitment to the unit. Freehold. Let to the 5A1 covenant of Waitrose Limited with 8.7 years unexpired. Low passing rent of 220,000 per annum ( 9.18 psf). Significant fixed increase to 250,000 per annum ( psf) in July This is still considered low for a supermarket rent. We are instructed to seek offers in excess of 3,300,000 (Three Million and Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.25%, with a reversion to 7.11% in 2020 assuming purchasers costs of 6.48%. WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD

M3 Petersfield LOCATION Gosport is an established Hampshire town located on the south coast approximately 3 miles (4.8 km) south west of Portsmouth, 6 miles (9.

Portsmouth is linked via a pedestrian ferry that runs throughout the day with a journey time of four minutes.

Rail services to London Waterloo are via Portsmouth with a fastest journey time of 1 hour 40 minutes. Portsmouth town centre and train station are easily accessed via the harbour ferry.

5 miles to the west of Gosport town centre providing excellent access for shoppers travelling from the wider area including the affluent suburb of Alverstoke.

3 M3 Petersfield LOCATION Gosport is an established Hampshire town located on the south coast approximately 3 miles (4.8 km) south west of Portsmouth, 6 miles (9.7 km) south east of Fareham and 15 miles (24.1 km) south east of Southampton. The town is located on a peninsula with the Solent to the west and Portsmouth harbour to the east. Portsmouth is linked via a pedestrian ferry that runs throughout the day with a journey time of four minutes. The (Fareham Road) is the principal arterial route to Gosport providing good access to the M27 at junctions 10 and 11, which links to the M3 at Southampton and the A3 (M) at Havant. Rail services to London Waterloo are via Portsmouth with a fastest journey time of 1 hour 40 minutes. Portsmouth town centre and train station are easily accessed via the harbour ferry. Southampton International airport is located 20 miles (32.2 km) to the north west. SITUATION The property is prominently situated approximately 0.5 miles to the west of Gosport town centre providing excellent access for shoppers travelling from the wider area including the affluent suburb of Alverstoke. The building is located between Stoke Road and South Street with good frontage onto both. It is also within walking distance from the town centre and the high street retail offer as well as other out-of-town retail units including those occupied by Argos, Halfords, Asda, Morrison s and Iceland. The next nearest Waitrose unit by road is located 9.8 miles (15 km) north west in Locks Heath to the south east of Southampton. A3057 M271 M27 North Solent National Nature Reserve Hythe Eastleigh SOUTHAMPTON 6 Blackfield The Solent SOUTHAMPTON AIRPORT B3354 Hedge End Cowes The Solent ISLE OF WIGHT FORTON ROAD M27 A27 Titchfield A334 Wickham Lee-on-the-Solent GOSPORT Droxford Fareham Portchester Alverstoke B2150 Cosham M275 PORTSMOUTH Royal Clarence Marina A3(M) Waterlooville A3 Havant Hayling Island South Downs National Park A27 Chichester Harbour AONB National Museum of the Royal Navy QUEEN ST THE AVENUE ANN S HILL ROAD Gosport War Memorial Hospital B3333 ALVERSTOKE WHITWORTH ROAD GORDON ROAD ANGLESEY ROAD BURY ROAD B3333 SUBJECT PROPERTY SOUTH ROAD PARK ROAD Gosport Park STOKE ROAD SPRING GARDEN LANE B3333 MUMBY ROAD HASLAR ROAD Haslar Lake HIGH STREET Town Centre SOUTH ROAD HASLAR BRIDGE Royal Haslar Luxury Waterfront Residential Village Gosport Marina Haslar Marina The Royal Navy Submarine Museum Gosport Ferry Terminal Portsmouth -Gosport Ferry Terminal Portsmouth IOW Car Ferry Terminal BROAD STREET B2154 GUN WHARF QUAYS GUNWHARF RD WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020

The CACI Lifestyle groups percentage of skilled workers for the area is 36.7% as opposed to the average for Great Britain of 12.8%.

4 CATCHMENT & DEMOGRAPHICS Gosport has a catchment of 360,000 within a 10km radius and a town population of approximately 82,000. The demographic profile of the Gosport area is typically an older, affluent and skilled worker in employment (or now retired). The CACI Lifestyle groups percentage of skilled workers for the area is 36.7% as opposed to the average for Great Britain of 12.8%. This affluent population is highlighted further by 66% of the population owning their homes outright or owning with a mortgage compared to the Great Britain average of 63.5%. Unemployment within Gosport is only 1.1% of the economically active population in comparison to the Great Britain average of 4.9%. Furthermore, 72% of the local population are aged 35 or over. DESCRIPTION The property comprises a large retail unit, which has been occupied continuously by Waitrose for over 43 years since its original construction. The unit totals 23,975 sq ft over ground and first floors and is of concrete frame construction. The store has two main access points, to the front and rear, and is fitted out internally to the modern Waitrose format. Internally the store benefits from 5 main checkouts as well as 4 basket checkouts. The store also has deli and meat counters, a cash machine and full Waitrose services including a click & collect counter. Loading is to the rear of the store where a main goods lift to the first floor is located. There are also two additional staff lifts to each side of the unit. The first floor comprises storage space with a large chilled area and separate freezer area, staff canteen and managers offices. The unit benefits from approximately 80 car parking spaces providing a good ratio of 1:299 sq ft. The property occupies a 0.88 acre (0.357 hectare) site with a low site cover of 36%. ACCOMMODATION The property has been measured on a Gross Internal Area basis (GIA) in accordance with the RICS Code of Measuring Practice (6th Edition). Description Area (sq m) Area (sq ft) Ground Floor Retail 1, ,111 First Floor Ancillary 1, ,864 Total 2, ,975 WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD

Fort Monckton Gosport & Stokes Bay Golf Club Institute of Naval Medicine CLAYHALL RD Royal Haslar Luxury Waterfront Residential Village Gosport Park HASLAR ROAD ALVERSTOKE Haslar Marina BURY ROAD

5 Fort Monckton Gosport & Stokes Bay Golf Club Institute of Naval Medicine CLAYHALL RD Royal Haslar Luxury Waterfront Residential Village Gosport Park HASLAR ROAD ALVERSTOKE Haslar Marina BURY ROAD SOUTH STREET SUBJECT PROPERTY STOKE ROAD Town Centre HIGH STREET TENURE Freehold. TENANCY The property is let on full repairing and insuring terms to Waitrose Limited by way of a reversionary lease to the original lease for a term of 10 years from 17th July 2015 to 16th July 2025 (total of 8.7 years unexpired). The passing rent is 220,000 per annum ( 9.18 psf). There is a fixed uplift on 17th July 2020 to 250,000 per annum ( psf). The original lease to Waitrose dates back to 1973 and they have been in continuous occupation for over 43 years. WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020

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

3% share of the market, making it the sixth-largest grocery retailer in the UK.

trading figures are: 30 Jan 2016 (000 s) 31 Jan 2015 (000 s) 25 Jan 2014 (000 s) Sales Turnover 5,966,600 6,016,700 5,640,900 Profit

6 COVENANT Waitrose is a chain of British supermarkets, which forms the food retail division of Britain s largest employee-owned retailer, the John Lewis Partnership. Waitrose has circa 365 branches across the United Kingdom and a 5.3% share of the market, making it the sixth-largest grocery retailer in the UK. Waitrose Limited has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure and their last 3 years trading figures are: 30 Jan 2016 (000 s) 31 Jan 2015 (000 s) 25 Jan 2014 (000 s) Sales Turnover 5,966,600 6,016,700 5,640,900 Profit Before Tax 66,600 80, ,100 Tangible Net Worth 930, , ,600 EPC The property has an EPC rating of 82 (band D). A copy of the EPC is available in the data room. WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD

LETTING MARKET The passing rent of 9.18 per sq ft is considered low for a supermarket, and remains so even with the fixed increase in 2020 to 10.43 per sq ft.

7 LETTING MARKET The passing rent of 9.18 per sq ft is considered low for a supermarket, and remains so even with the fixed increase in 2020 to per sq ft. Other examples include: VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of a Going Concern (TOGC). Address Area (sq ft) Rent ( psf) Comments Co-Op, Southampton 13, Rent review in September Tesco, Gosport 36, Open market letting in May Waitrose, Waterlooville 42, Rent set prior to 2016 rent review. Waitrose, Dorchester 15, rent review at arbitration. Passing rent stated. DATA ROOM There is a data room for the property with key tenancy information, title documents and EPC certificates. Access can be provided on request. INVESTMENT MARKET Supermarket investments continue to be well sought after in the current market as they provide a defensive income stream. Comparable recent transactions are as follows: Property Waitrose (85%)/Co-op (15%), Brackley Date On Market Unexpired Term (years) Area (sq ft) Price Net Initial Yield Comments 12 50, m 6.00% Fixed increases. M&S Foodhall, Chepstow Oct , m 6.09% Part sublet. OMV reviews. Waitrose, Wellington Sep , m 4.91% Waitrose, Bromsgrove Jul , m 5.15% Co-Op Supermarket, Malmesbury Fixed 2.5% compounded uplift in OMV reviews thereafter. Forward funding. 5 yearly CPI linked reviews with 1-3% collar and cap. Feb , m 6.25% OMV review in WELL LET SUPERMARKET INVESTMENT WITH SIGNIFICANT FIXED RENTAL UPLIFT IN 2020

PROPOSAL We are instructed to seek offers in excess of 3,300,000 (Three Million and Three Hundred Thousand Pounds), subject to contract and exclusive of VAT.

8 PROPOSAL We are instructed to seek offers in excess of 3,300,000 (Three Million and Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.25%, with a reversion to 7.11% in 2020, assuming purchasers cots of 6.48%. FURTHER INFORMATION Should you require further information or wish to view the property please contact either: Matthew Brown Tel: Mob: mbrown@lewisellis.co.uk James Elkington Tel: Mob: jelkington@lewisellis.co.uk WAITROSE 129 STOKE ROAD, GOSPORT, HAMPSHIRE, PO12 1SD Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending 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 in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: November 2016.

129/133 STOKE ROAD, GOSPORT, HAMPSHIRE

FREEHOLD MIXED USE INVESTMENT FOR SALE DAVID BAROUKH ASSOCIATES 129/133 STOKE ROAD, GOSPORT, HAMPSHIRE Summary Purchase price in excess of 3,250,000, subject to contract. Net initial yield of 7.3%. 83%