Riverside, Exchange Street, Kidderminster DY10 1BY Multi-let leisure investment with long income

Riverside, Exchange Street, Kidderminster DY10 1BY Multi-let leisure investment with long income

Investment Summary Located in a busy waterside location in the heart of the Worcestershire town of Kidderminster Modern development comprising four leisure units totalling 1,064 sq m (11,453 sq ft) and a refurbished period office building (which has been sold long leasehold) Fully-let with an income-weighted average unexpired lease term of 17 years 9 months to expiry and 11 years 9 months to break Headline rental income of 197,000 per annum exclusive We are instructed to seek offers in excess of 2,750,000 (two million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 6.73% having deducted normal purchaser s costs of 6.42%.

A435 Location Kidderminster is a town of 55,530 people and the principal centre for the largely rural Wyre Forest district in north Worcestershire, located approximately 14 miles north of Worcester, 10 miles south west of Dudley and 16 miles south west of Birmingham. The town became famous for carpet manufacturing after Brintons established itself in the town in 1783 and manufacturing remains important to the local economy, accounting for 15.8% of employment (compared with the national average of 8.8%). Nevertheless, retail is the most important sector overall, accounting for 19.5% of employment; the town has an estimated catchment population of 102,000 people extending across the Wyre Forest district and beyond (PMA, 2018), while the district attracts 700,000 tourists a year (Wyre Forest District Council, 2010). The location of Kidderminster is reflected in its transport links. The town is at the intersection of the A456 (Birmingham-Tenbury Wells road) and the A449 (Worcester-Wolverhampton road), which give access to junction 3 of the M5 (approximately 10 miles to the north east) and to junction 6 of the M5 (approximately 14 miles to the south) respectively. It has a station on the Worcester-Birmingham Snow Hill railway line, served by trains about every 15 minutes at peak periods, with approximate journey times of 20 minutes to Worcester and 40 minutes to Birmingham; the station is also served by some direct Chiltern Railways trains to London Marylebone at peak periods. Bridgnorth A456 A442 West Midlands Safari Park A454 Kidderminster Stourport on Severn A44 A458 A449 A449 Worcester A449 Wolverhampton Stourbridge A456 Severn Valley Railway A448 Droitwich Spa M5 A4123 West Bromwich Dudley Halesowen A422 M5 Bromsgrove Walsall M6 A456 A441 A441 Birmingham M42 Redditch A 4 35 A34 A46 M6 M6 TOLL A45 A41 Solihull M42 M40 Stratford-upon-Avon M42 M6

Situation The property is situated in the heart of Kidderminster town centre, to the west (rear) of the Town Hall and on the northern side of Exchange Street, overlooking the River Stour. Kidderminster Library and Kidderminster College are on the southern side of Exchange Street, while the bus station and Weaver s Wharf shopping park are on the opposite side of the river; Weaver s Wharf is the major managed scheme in the town, totalling approximately 20,530 sq m (221,000 sq ft) with extensive car parking. Riverside fronts a busy walkway along the River Stour. Copyright Experian, 2017. Crown copyright and database rights, 2017. OS licence number 100019885. Not to scale.

Description Riverside is the income-producing element of a larger property, created through the refurbishment and partial redevelopment of the historic Brintons Carpets head office and works. Riverside comprises a terrace of four single-storey retail/ leisure units overlooking the River Stour. The building, which is mainly a new development, is of steel frame construction under a decked flat roof and incorporates the flank walls of former building, while the western (front) elevation has fully-glazed shop fronts with charcoalcoloured cladding panels above. There is a south westfacing hard-paved deck to the front of the units, providing outside seating areas for 200+ covers and walkway, along the full length of the riverside frontage. The end units (1 and 4) incorporate elements of, and are partially over-sailed by, the original building. Now known as Brinton House, the remainder of the property is a three-storey building of masonry construction with stone dressings, which dates to 1876 with later extensions. Brinton House, which faces east, has been refurbished as office accommodation. The whole property is Grade II Listed as such, an Energy Performance Certificate is not required and located within the Vicar Street Conservation Area. Promap, Landmark Information Group. Ordnance Survey Crown Copyright 2018. All rights reserved. Licence number 100022432. Not to scale. For identification purposes only.

Accommodation Riverside the leisure units provides a total of approximately 1,064 sq m (11,453 sq ft); floors areas for individual units are set out in the tenancy schedules overleaf. Tenure The property, comprising both Riverside and Brinton House, is held freehold. Tenancies The property is fully let on five effectively full repairing and insuring leases. Riverside is let to four tenants, as per the tenancy schedule overleaf, with an income-weighted average unexpired lease term of 17 years 11 months to expiry and 11 years 11 months to break. The headline rental income is 197,000 per annum exclusive, with each lease having five-yearly, upwards-only, open market rent reviews. Brinton House is let to the Trustees of the Highlands Pension Fund for 999 years from 29th April 2016 at a peppercorn rent without review; the trustees are directors of TH Baker and Brinton House is the jewellery retailer s head office. Tenant Covenant Information Information on the four tenants of the Riverside units is set out overleaf.

Riverside Tenancy Schedule Unit Tenant Floor Area sq m (sq ft) 1 Loungers Limited (T/A Tappeto Lounge) 329 (3,541) 2 Le Bistrot Pierre Limited 325 (3,500) 3 Garcha Entertainments Limited (T/A Veeno) 187 (2,012) 4 Coffee #1 Limited 223 (2,400) Total 1,064 (11,453) Lease Term 15 years from 2/3/2017 25 years from 13/3/2017 15 years from 14/5/2018 20 years from 17/2/2017 Expiry (Break Option) Rent pax Comments 1/3/2032 60,000 1. Half rent ( 30,000pax) payable for first two years of term; the vendor will top up the rent to 60,000pax. 12/3/2042 (13/3/2032) 13/5/2033 (14/5/2028) 16/2/2037 (17/2/2027) (17/2/2033) 2. Service charge capped at 5% of annual rent. 60,000 1. Tenant s option to break on 15th anniversary of term with not less than 6 months prior written notice. 37,500 1. Rent-free period of nine months and then half rent ( 18,750pax) payable for next nine months; the vendor will top up the rent to 37,500pax. 2. Mutual option to break on 10th anniversary of term with not less than 6 months prior written notice. 3. Service charge capped at 5% of annual rent. 4. Rent deposit of 25,000 plus VAT. 39,500 1. Tenant s options to break on the 10th and 16th anniversaries of the lease [ie term] with not less than 6 months prior written notice. 197,000 2. Service charge capped at 5% of annual rent. Tenant Covenant Information Company [registered number] Loungers Limited [04595806] Le Bistrot Pierre Limited [03496444] Garcha Entertainments Limited [11030166] Coffee #1 Limited [04027169] Description of Business Financial Headlines D&B Rating Loungers is a bar and casual dining operator with some 103 Lounges (which are individually named) and 22 Cosy Clubs across the country. Founded in 2002, the business is now owned by Lion Capital. Le Bistrot Pierre, which was founded in 1998, is a casual dining operator, styled on the provincial French bistro, with some 24 outlets across England and Wales. Veeno is an Italian-styled bar, offering Sicilian wines and spuntini appetisers, with 18 bars across the country. The tenant is a franchisee, which was incorporated in 2017 and has yet to file any accounts. Coffee #1 is a coffee shop chain with 90 outlets across South Wales, the South West and middle of the country. Founded in 2001, the business is owned by SA Brain [brewers]. Year ended Turnover Pre-tax Profit/ (Loss) Shareholders Funds 23/4/2017 91,752,588 3,186,658 8,458,107 24/4/2016 68,474,732 1,206,462 5,952,197 26/4/2015 48,015,329 1,700,804 4,733,525 30/6/2017 25,762,307 ( 966,795) 151,413 30/6/2016 19,519,578 74,498 1,048,740 30/6/2015 16,562,199 587,479 1,229,412 30/9/2017 27,164,756 1,555,510 6,274,069 1/10/2016 22,746,946 1,920,613 5,049,943 26/9/2015 17,875,458 1,661,263 3,702,535 3A 3 N 3 O 3 2A 1

Service Charge There is a service charge to cover the maintenance and repair of the common parts, exterior and structure of the property. The budget for the year ending 24th June 2019 is 9,860, which equates to 9.27 per sq m ( 0.86 per sq ft). Further Information For further information, please contact:- Value Added Tax The property is elected to tax for VAT but it is anticipated that the transaction will be treated as a Transfer of a Going Concern ( TOGC ) provided the necessary conditions are met. Kiddermin Proposal We are instructed to seek offers in excess of 2,750,000 (two million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 6.73% having deducted normal purchaser s costs of 6.42%. James Bladon Justin Quibell David Smeeton Associate Associate Partner +44 (0)121 697 7258 +44 (0)121 697 7213 +44 (0)121 710 4657 james.bladon@cushwake.com justin.quibell@cushwake.com david.smeeton@cushwake.com Cushman & Wakefield No 1 Colmore Square Birmingham B4 6AJ Cushman & Wakefield Debenham Tie Leung Limited ( C&W ) gives notice to anyone who may read these particulars as follows: [1] These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property only and do not constitute any part of an offer or contract. [2] Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. [3] The photographs appearing in these particulars show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to herein are approximate only. [4] Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. [5] No person in the employment of C&W has any authority to make or give any representation or warranty whatsoever in relation to this property. [6] This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. [7] Unless otherwise stated, no investigations have been made by or on behalf of C&W regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. Brochure prepared September 2018