WELL LET INVESTMENT FRESHNEY PLACE SHOPPING CENTRE 19/21 VICTORIA STREET, DN31 1DW INVESTMENT SUMMARY n Grimsby is a busy town and port located in the n The property totals 92,400 sq ft arranged n Freehold. county of Lincolnshire with a primary catchment of over five floors. 256,000. n Offers are sought in excess of £12,750,000 n Let to House of Fraser (Stores) Limited with (Twelve Million Seven Hundred and Fifty n The property occupies a highly prominent an unexpired term of 22 years. Thousand Pounds), subject to contract and position within Freshney Place Shopping Centre, exclusive of VAT, for our client’s freehold interest. which is the dominant offer within the town. n House of Fraser reported an annual sales increase The store also has the benefit of a frontage onto of 4.2% on a like-for-like basis in their latest 2016 A purchase at this level reflects an attractive Victoria Street. results as well as a strong Christmas period with a net initial yield of 7.25% after purchaser’s rise of 2.7% in underlying sales. costs of 6.72%. GRIMSBY

A64 A19

A166

HARROGATE YORK A614 A165 A1079 A64 A19 LOCATION M65 A614 A59 BURNLEY Grimsby is the principal commercial and retailing HULL centre of north east Lincolnshire. The town is BLACKBURN A646 CASTLEFORD situated approximately 70 miles east of Leeds, 50 A56 HALIFAX M65 M62 M62 miles south east of York and 44 miles north east of Lincoln. A19 A666 M66 M61 ROAD M62 GRIMSBY BARNSLEY M18 Grimsby has strong road communications with the M180 HUMBERSIDE M180 providing links to the M62, M1, A1 (M) and A16 M1 A46 wider national motorway network. A628 A18 A159 A15 M62 A1(M) TRAIN M60 ROTHERHAM A631 LINCOLNSHIRE Town has two train stations, Grimsby Docks and WOLDS AONB PEAK DISTRICT Grimsby Town. There are regular rail services to NATIONAL PARK A15 A156 Doncaster which provides direct links to M1 M56 in a fastest journey time of 1 hour 37 minutes. A623 A61 A158 There are further services to surrounding centres NORTHWICH MACCLESFIELD A614 including Cleethorpes, Scunthorpe, Manchester and CHESTERFIELD LINCOLN HORNCASTLE Sheffield. A1 A53 SKEGNESS A523 AIR A15 A6 A34 A16 Humberside Airport is located 24 minutes west of A515 NEWARK-ON-TRENT Grimsby town centre, serving in excess of 500,000 M6 passengers a year. In addition Doncaster Sheffield A385 A46 airport is only an hour’s drive away. STOKE-ON-TRENT A52 A17 A15 BOSTON A515 DERBY CATCHMENT A453 A50 The total population within the Grimsby primary catchment area is extensive at 256,000 with an A46 MELTON MOWBRAY estimated shopping population of 183,000.

The catchment population within a 10, 15 and 20 minute drive time are as follows: 10 minute drive - 114,202 15 minute drive - 162,129 20 minute drive - 175,204 LOCAL ECONOMY GRIMSBY DEVELOPMENT

Grimsby is the UK’s largest port in terms of tonnage and meets the needs of a Grimsby is undergoing significant regeneration as part of the Council’s 25 year vision for the diverse range of industries. It provides a key international gateway to the Northern town, which includes key developments on the docks and various leisure developments in the Powerhouse, the UK and Europe. town centre. The draft Local Plan includes a total of 13,340 new homes to be built by 2032 which will create 8,800 new jobs in addition to the already strong local industrial economy. Grimsby is home to approximately 500 food related businesses ranging from its These developments will help improve the retail offer within the town by increasing its markets, modernised fish docks and the global headquarters of brands such as Youngs footfall and spend. who employ approximately 2,500 people. Other major employers include Seachill, Two Sisters, Country Style Foods and Morrisons. The town has one of the largest A number of the projects include: concentrations of food manufacturing, research, storage and distribution in Europe. n Primark are currently undergoing a £4.3m extension of their store within Freshney Place, Approximately 70% of the UK’s fish processing industry is located within the town. increasing its size by 27,000 sq ft, opening in summer 2017. The seafood industry is worth £1.8 billion to North East Lincolnshire. n A new £12 million “entertainment hub” is currently in pre-planning application discussions Grimsby has seen a rise in modern industries such as renewable energy and generates which is expected to comprise a 9 screen cinema with associated restaurants, as an more electricity (28%) from solar, wind, biomass and landfill gas than anywhere else extension to Freshney Place Shopping Centre. in . Its proximity to the biggest cluster of offshore wind farms in Europe has brought approximately 1,500 jobs to the area with only 300 of the turbines having n Clee Meadows, on Ladysmith Road, will bring 180 new houses and 80 new apartments to been installed out a total of 3000. There is future potential expenditure to come the 11 acre site. Construction is to be phased over the course of four years. with wind farm developers and operators (DONG Energy, EoN, Centrica, MHI Vestas) n Xtreme Leisure have completed a viability assessment and are soon to submit a formal investing over £30m in the Port of Grimsby. application on a £250 million project to build a 14,000-seater community football stadium for Grimsby Town, a sports and leisure facility including an ice rink, between 1,400-1,600 The service sector accounts for 71% of total employment in Grimsby whereas houses and a 2,000 space car park. manufacturing supports 12% of employment.

GRIMSBY IS THE UK’S LARGEST PORT IN TERMS OF TONNAGE Grimsby - Victoria Street

Red border denotes Freshney Place Shopping Centre

Experian Goad Plan Created: 27/01/2017 50 metres Created By: Kitchen LaFrenais Morgan Copyright and confidentiality Experian, 2017. © Crown copyright and database For more information on our products and services: rights 2017. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 RETAILING IN GRIMSBY

The 445,000 sq ft Freshney Place Shopping Centre dominates the town’s retail offer. The scheme is anchored by the subject House of Fraser with other principal tenants including Marks & Spencer, Primark, New Look, Next and TK Maxx. Adjoining the centre is the popular indoor market which trades on Tuesday, Thursday, Friday and Saturday.

The pedestrianised Victoria Street provides the town’s main retail pitch outside of Freshney Place with retailers including Argos, Wilkinsons, Sepcsavers, McDonalds and BrightHouse. South Mary’s Gate and Osborne Street, running parallel to Victoria Street, is the secondary pitch in the town with a mix of national retailers such as Iceland, Poundland and Co-Operative Bank and local occupiers.

SITUATION

The property is situated in a prime and prominent position in the town, within Freshney Place Shopping Centre with a rear frontage on to Victoria Street West.

Occupiers nearby include Marks & Spencer, Primark, Next, River Island, , JD Sports and Monsoon.

DESCRIPTION

The property comprises a 92,400 sq ft modern department store arranged over 5 floors with sales accommodation on the ground, first and second floors and ancillary on the small remaining floors. Servicing is from the first floor service deck.

House of Fraser is the only department store representation in Grimsby. Concessions within the store include Calvin Klein, Guess, , Barbour, Diesel, Fred Perry and DKNY. The property has House of Fraser’s full range of services including suit LOCATED IN AN EXCELLENT hire, click and collect, a restaurant and a Caffé Nero. POSITION WITHIN FRESHNEY PLACE SHOPPING CENTRE, THE TOWN’S DOMINANT RETAIL OFFER ACCOMMODATION COVENANT

The property provides the following gross internal House of Fraser (Stores) Ltd has a ‘minimum risk of business failure’ rating by Dun & (GIA) floor areas: Bradstreet. They are one of the leading premium, multi-branded retailers in the UK and and trade from 59 locations and employ 6,000 people. Floor Area Sq m Area Sq ft Ground 3,262 35,115 In April 2014 an 89% stake of the business was sold to the Chinese conglomerate Sanpower First 2,634 28,356 Group. The group’s total assets are in excess of £13.8 billion with a 100,000 global workforce and over 100 subsidiaries. Second 2,246 24,178 Third 227 2,448 House of Fraser is trading well with like-for-like sales increasing by 2.7% over the Christmas Fourth 214 2,303 period and record sales figures in the two weeks leading up to December 31st 2016. Total 8,584 92,400 The most recent financial accounts for House of Fraser (Stores) Ltd are summarised below: TENURE Year Ending 30/01/2016 31/01/2015 25/01/2014 Turnover £814,700,000 £772,000,000 £717,200,000 Freehold. Profit Before Tax £13,100,000 £23,100,000 £25,700,000 TENANCY Net Worth £110,900,000 (£20,200,000) (£27,700,000)

The property is let to House of Fraser Ltd on a 40 year lease from 30th July 1999 at a current rent of INVESTMENT COMPARABLES £986,423 per annum, subject to 5 yearly upwards Net only open market rent reviews. The property is Unexpired GIA Initial sublet to House of Fraser (Stores) Ltd for a term of Address Tenant Date Term (sq ft) Price Yield 40 years less 7 days commencing 30th July 1999 on House of Fraser Under Offer 22 years 69,313 £14,100,000 5.25% identical terms to the head lease. Hull House of Fraser Under Offer 22 years 188,427 £16,000,000 7.75% Under Offer 17 years 285,000 £31,250,000 5.75% The property includes a 125 year long leasehold Debenhams Under Offer 61 years 158,135 £16,000,000 6.03% interest in the Freshney Place Shopping Centre’s House of Fraser Sep-16 23 years 102,411 £18,150,000 6.25% car parking spaces from 25th March 1974 at a peppercorn rent. This is underlet to House of Fraser Darlington House of Fraser Aug-15 24 years 145,000 £22,500,000 6.62% PLC and then further sub-underlet to House of Fraser (Stores) Limited as above.

The current rent reflects £10.68 per sq ft. EPC

The property has an Energy Performance HOUSE OF FRASER REPORTED AN ANNUAL SALES Rating of C (52). INCREASE OF 4.2% ON A LIKE-FOR-LIKE BASIS IN THEIR LATEST 2016 RESULTS VAT CONTACTS

The property is registered for VAT and therefore VAT will be Rupert Guy payable on the purchase price or dealt with by way of a TOGC. [email protected] 020 7317 3710

PRICE Rob Dales [email protected] Offers are sought in excess of £12,750,000 (Twelve Million 020 7317 3705 Langham House Seven Hundred and Fifty Thousand Pounds), subject to 302-308 contract and exclusive of VAT, for our client’s freehold interest. Simon Harvey London W1B 3AT A purchase at this level reflects an attractive net initial yield [email protected] +44 (0)20 7317 3700 of 7.25% after purchaser’s costs of 6.72%. 020 7317 3719 [email protected]

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