City Centre Retail Investment Castlegate House 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX Castlegate House, 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX

Investment Considerations • On behalf of LPA Receivers • Approximate site area of 0.442 hectares (1.092 acres) • Entirely let to BHS Properties Limited until 2065 and Frozen Value Limited until 2023 • Future redevelopment potential (subject to consents and gaining vacant possession) • Producing a total current rent of £531,000 p.a.x • Offers in excess of £2,750,000 subject to contract and exclusive of VAT. • Occupied by B & M Retail Limited, Frozen Value Limited & Ladbrokes Betting & Gaming Limited • Net Initial Yield of 18.25% after purchase costs of 5.8%. • Situated in the ci ty centre with nearby occupiers including Primark, Wilko, Savers and Co-op Castlegate House, 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX

Location Sheffield is the commercial centre for South Yorkshire and a major retailing destination for the region. The city is located approximately 33 miles south of , 22 miles west of Doncaster, 38 miles east of Manchester and 175 miles north of London. Communications to Sheffield are excellent, with the M1 motorway providing direct access to Leeds in the north and Nottingham in the south. By rail, the city is served by a mainline railway station with regular trains to London St Pancras, with a travel time of approximately 2 hours. Sheffield also benefits from a light rail tram network which has three main routes into the city centre. The Property Sheffield has a primary catchment of 637,000 ( PROMIS), with an estimated shopping population of 322,000. Sheffield’s catchment population is boosted by the presence of two large universities, which are home to more than 45,000 students.

Situation The property is situated in a prominent position on the corner of Haymarket and Dixon Lane. The area is home to a number of discount retailers including Savers, Heron Foods and Wilko, with the Co- operative , Primark, Argos and 99p Stores all nearby.

The area forms part of the Castlegate Master Plan and Vision approved at Cabinet. The plan provides a vision for the quarter, and will be used by Sheffield Council to guide future development. Castlegate will become a new destination for offices, homes, leisure, entertainment and retail uses, with a high quality public realm of riverside terraces and public spaces celebrating Sheffield’s history. For further information, please refer to the Castlegate Masterplan available from Sheffield Council’s website www. sheffield. gov.uk

Extract reproduced from the Ordnance Survey mapping with the permission of The Controller of Her Majesty’s Stationery Office ©Crown Copyright 100020449 Castlegate House, 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX

Tenancy & Accommodation Floor Areas (Approx) Unit Floor Use Tenant Term Rent p.a.x. Reviews (NIA ) 12-18 Lower Ground (B & M) Storage 1,312.0 sq m (14,122 sq ft) BHS PROPERTIES LIMITED 99 years from £430,000 25/12/2029 Haymarket Ground (B & M) Retail 1,208.9 sq m (13,013 sq ft) (1) 25/12/1966 until 25/12/2050 First Retail 1,242.6 sq m (13,375 sq ft) 24/12/2065 on a Second Storage 1,242.6 sq m (13,375 sq ft) full repairing and Third Ancillary 1,242.6 sq m (13,375 sq ft) insuring lease Fourth Plant 490.7 sq m (5,282 sq ft) 20-22 Ground ( Fultons Foods) Retail 217.2 sq m (2,338 sq ft) FROZEN VALUE LIMITED 10 years from £101,000 28/12/2018 Haymarket Ground ( Fultons Foods) Storage 21.6 sq m (232 sq ft) (t/a Fultons Foods) 28/06/2013 until First ( Fultons Foods) Ancillary/Storage 245.7 sq m (2,645 sq ft) guaranteed by Viewtone 27/06/2023 Second Storage Not Measured Trading Group Limited (2) Lower Ground (Ladbrokes) Retail 233.1 sq m (2,509 sq ft)

Totals 7,457 sq m (80,266 sq ft) £531,000

(1) Entirely sublet to BHS Limited for 35 years from 25th December 1987 until 24th December 2022. The lower ground and ground floor has been sub-underlet to B&M Retail Limited for 10 years from 28th June 2010 until 27th June 2020. The entrance area is also sub-underlet to B&M Retail Limited at a peppercorn rent until 27th June 2020. The total current sub- under rent from B&M Retail Limited is understood to be £180,000 p.a.x. For the year ending 28th March 2015, B&M Retail Limited reported a turnover of £1,526,181,000, pre-tax profits of £151,063,000 and a net worth of £333,599,000. (Source: Experian Group 16/12/2015) (2) The lower ground has been sublet to Ladbrokes Betting & Gaming Limited for a term of 10 years less 3 days from 28th June 2013 until 24th June 2023. The current sub rent is £26,000 p.a.x. For the year ending 31st December 2014, Ladbrokes Betting & Gaming Limited reported a turnover of £824,322,000, pre-tax profits of £57,141,000 and a net worth of £1,096,567,000. (Source: Experian Group 16/12/2015)

Description Covenant The property comprises a 1960s former BHS department store. BHS Properties Limited Viewtone Trading Group Limited The ground and part lower ground floors of 12-18 Haymarket are 25th August 2012 31st August 2013 30th August 2014 31st January 2013 31st January 2014 31st January 2015 now occupied by B & M Bargains and used for retail and storage Turnover £12,902,000 £22,456,000 £20,371,000 Turnover £63,987,000 £66,393,000 £64,112,000 respectively. The remainder of the lower ground floor and the upper floors of 12-18 Haymarket are not currently in use. There is a Pre-Tax Profits £1,151,000 £2,060,000 £1,409,000 Pre-Tax Profits £2,928,000 £2,649,000 £1,155,000 former store entrance to the side of the unit, opening on to Dixon Total Net Worth £41,780,000 £43,140,000 £44,016,000 Total Net Worth £1,244,000 £-300,000 £351,000 Lane, which is secured by a roller shutter door. There is also a loading bay accessed from Dixon Lane, which is shared with 20-22 BHS Properties Limited and BHS Limited are subsidiaries of BHS Group Limited. BHS has a portfolio of over 171 store sites throughout the UK. In addition BHS.co.uk has 5 Haymarket. There is a staircase to either side of the property million unique users per month and hosts 15,000 product lines with approximately providing access to the upper floors, roof and fire escape at 200,000 orders a month delivered throughout the UK. BHS employs 11,000 staff (Source: basement level. There are two goods lifts which provide access www.arcadiagroup.co.uk). between the loading bay, lower ground and ground floors and a Frozen Value Limited former passenger lift (decommissioned). 31st January 2013 31st January 2014 31st January 2015

20-22 Haymarket comprises a ground and lower ground floor retail Turnover £63,987,000 £66,393,000 £64,112,000 unit with first floor staff and storage accommodation. The second Pre-Tax Profits £3,490,000 £3,407,000 £1,726,000 floor is not currently in use. The ground and first floor are currently occupied by F ultons Foods with storage to the rear. A Total Net Worth £11,074,000 £8,810,000 £10,205,000 rear door provides access to the loading bay shared with 12-18 Frozen Value Ltd trades as Fultons Foods and Jack Fulton and was founded in 1960. The Haymarket. The lower ground floor is accessed from an entrance company was sold in 1997 and is 100% privately owned. The company trades from over fronting Haymarket with stairs leading down to the sales area and 100 stores and has continuing growth plans. They currently employ over 1,000 staff. currently used by Ladbrokes as a betting office. There is a (Source: http://www.fultonsfoods.co.uk) secondary entrance from Dixon Lane. Castlegate House, 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX

Tenure Majority freehold and part leasehold.

NB. The leasehold interest is described as a part of an electricity substation on the south side of Dixon Lane and is held for a term of 150 years from 29th September 1964. Landlord’s consent is not required to assign this leasehold interest by virtue of S.19 (2) (b) of the Landlord and Tenant 1927 A ct.

VAT VAT is applicable to this property. It is however anticipated that the sale will be treated as a transfer of a going concern ( TOGC).

Proposal We are seeking offers in excess of £2,750,000 subject to contract and exclusive of VAT. A purchase at this level will reflect a net initial yield of 18.25% after purchase costs of 5.8%.

This property is being marketed for sale on behalf of Joint Law of Property Act Receivers and therefore no warranties or guarantees in any respect, including VAT, can be given. The information in these particulars has been provided by the Joint Law of Property Act Receivers to the best of their knowledge but the purchaser must rely solely upon their own enquiries. The Joint Law of Property Act Receivers are not bound to accept the highest or any offer and are acting in respect of this sale without personal liability.

EPC The EPC ratings for the property are as follows: 12-18 Haymarket –E 20-22 Haymarket (Lower Ground Floor) –C 20-22 Haymarket (Ground & First Floors) –E 20-22 Haymarket (Second Floor) –G 22 Haymarket –D

Full copies of the EPC’s are available upon request.

Finance Terms Finance terms have been confirmed on the following basis: • 60% loan to value • 3% over Bank of base rate • 15 year repayment loan

For further information please speak to: Stuart Buchanan of Acuitus Finance E: stuart. [email protected] T: 07879 432 868 Castlegate House, 12-18 and 20-22 Haymarket, 4-12 Dixon Lane, Sheffield S1 2AX

Jo Seth-Smith Will Moore 14 St Christopher’s Place DD: +44 (0)20 7034 4854 DD: +44 (0)20 7034 4858 London jo.seth-smith @acuitus.co.uk will.moore @acuitus.co.uk W1U 1NH www.acuitus.co.uk

Misrepresentation Act : Acuitus Limited, for themselves and for the vendors of this property, whose agents they are, give notice that ( i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) 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 as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by Acuitus Limited, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Acuitus Limited or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to Acuitus Limited include any joint agents acting with Acuitus Limited. December 2015