Secure Convenience Store Investment Opportunity

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SECURE CONVENIENCE STORE INVESTMENT OPPORTUNITY TESCO, SILVERDALE ROAD, EARLEY, READING, BERKSHIRE RG6 7NG SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

INVESTMENT SUMMARY • Secure convenience store investment • Freehold site of c 0.54 acres • 5 yearly upward only RPI reviews opportunity • Let to Tesco Stores Limited (0% & 4% collar and cap) • Well presented, recently converted and • 20 year FRI lease from 8 August 2014 • Offers in excess of £1,450,000 (STC) refurbished c-store subject to TOB on 7 August 2029 • Representing a Net Initial Yield of 5.51% • Provides a total of 3,929 sq ft • 14.8 years to expiry, 9.8 years to break • Estimated reversionary yield of 6.39% • Excellent location adjacent to two large • Initial rent of £84,814 per annum in August 2024 and 7.41% RY in August schools and the nearby University of (£21.59 psf) 2029 Reading campus NORTHAMPTON Stratford- CAMBRIDGE Upon-Avon M40 WORCESTER Bedford

HEREFORD BANBURY SECURE CONVENIENCE STORE Chipping Campden TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY M50 READING, BERKSHIRE RG6 7NG M1 Chipping Norton

LUTON GLOUCESTER LOCATION M5 OXFORD Hoddesdon CHELMSFORD HEMEL HEMPSTEAD Cirencester M40 Reading is a popular regional retailing destination and a major M25 Faringdon M1 Watford M11 commercial and administrative centre for the Thames Valley Region. Rickmansworth Didcot Malmesbury The town is strategically located 41 miles (66km) west of CentralNEWPORT Hornchurch SWINDON M25

Royal London, 25 miles (41km) south east of Oxford and 80 miles (130km) SLOUGH MOUTH OF THE THAMES M4 Wootton LONDON Bassett M4 M4 east of Bristol. BRISTOL M4 READING Marlborough Hungerford BATH M3 M25 Reading’s primary retail catchment had a total population of 338,000 Devizes M2 Weston-Super-Mare M25 M26 at the end of 2018. The town’s affluence is reflected in the significantly Trowbridge Sevenoaks M25 MAIDSTONE Dorking REDHILL Oxted above average proportion of the most affluent AB social group and an GUILDFORD Tonbridge M20 Warminster WELLS M3 M23 under-representation of the least affluent, C2 and DE categories. ROYAL Glastonbury TUNBRIDGE WELLS Crawley Tenterden WINCHESTER Horsham SALISBURY

SITUATION Haywards Heath Rye

Yeovil Early is a densely populated residential suburb of Reading, lying SOUTHAMPTON South Downs Lewes Hastings approximately 3 miles south east of the town centre. The property occupies CHICHESTER Bexhill New Forest BRIGHTON PORTSMOUTH a highly prominent corner position on Silverdale Road, a key trunk road for Newhaven Eastbourne the area, alongside other complimentary neighbourhood retail shops which DORCHESTER Poole together form a local convenience hub. BOURNEMOUTH

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a D s ay B El Lan wer Earl A32 y hive Ro Elm he n W o SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

READING ALDRINGTON MAIDEN ERLEGH SILVERDALE PRIMARY SCHOOL SCHOOL COMMUNITY CENTRE UNIVERSITY OF READING

EARLEY, READING

TO READING

SILVERDALE ROAD

TO LOWER EARLEY SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

Report any errors to A3 the designer. Site Boundary Do not scale, work to PLANT figured dimensions only. 0.42 Acres CHILLED COPYRIGHT © STORAGE Details of this drawing are the copyright of Inspire Design Ltd and must not be reproduced or copied without prior written DESCRIPTION & ACCOMMODATION Soil consent. Any errors or omissions are to be reported to the Architect immediately. All proposed road and junction alterations subject to highways engineers detailed design.

Removal of any existing tree and landscaped areas subject negotiations with Local Authority Planning department and other statutory controls. Tarmac All drawings to be read in conjunction with structural engineers M.O.E BULKSTORE M.O.E +49.81 drawings, all related Architects and consultant drawings and The property comprises a large convenience store converted from a former other relevant information. FFL = 50.00 Grade up to Any changes to the drawn design during construction work entrance 1:21 should be recorded and reported to the Architect immediately. Inspire Design Ltd will not take responsibility for any variation made by a design and build contractor to the design and public house, which was extensively refurbished and extended in 2014, with CBF AC construction detail contained within this drawing. REVISIONS Rev Description Date A: COORDINATED WITH 14.07.14 brick elevations under a pitched tiled roof. AC RETAIL PLAN. B: ANNOTATION. 20.08.15 +49.83 C: PARKING UPDATED. 10.09.15 D: INTERNALS. 16.09.15 2M Close boarded timber fence AC IRF Concrete yard Chute The property extends to a total of 3,929 sq ft and provides ground floor Fit Mark sales space with delivery, ambient and refrigerated stock areas, and staff Canopy over Storage Under Stairs room/WC to the rear. The first floor is unused. Tarmac BRW Conc

The property sits on a site of 0.54 acres (0.22 hectares) and includes a IRF Landscaped area to receive weed delivery area with the remainder providing car parking for 19 vehicles. control membrane Concrete path

SALES AREA New cellar access hatch

2M Close boarded timber fence 2M Close boarded 8 TENURE GPO timber fence 9

The property is held Freehold as outlined in red below Ceiling height 2.4m Tarmac HOIST FFL = 50.00 10 Status PLANNING ISSUE (Title number: BK29966). Fit Mark STAIRS insp re d e s i g n

ATM 11 SILVERDALE ROAD JH

The area highlighted in red forms the effective ownership. Project READING RG6 7NG

GROUND FLOOR Drawn By:- 6 7 b. b. b. SCALE 1:100 PROPOSED GROUND FLOOR PLAN

274 sq.m. (2,949 sq ft) DB

1 0 1 2 3 4 5 Draw Title Checked By:-

Tarmac 20.08.15 1:100 @ A3 LENGTH IN METRES Date 12 Scale(s)

Type 11 Job No

132066 AL Dwg No Revision D TENANCY The property is let to Tesco Stores Limited on a full repairing and insuring lease for a term of 20 years from 8th August 2014, expiring 7th August 2034 subject to a tenant’s option to determine on 7th August 2029 on 6 months’ notice.

The current rent of £84,814 per annum (£21.59 psf) is to be reviewed every 5 years in line with the retail price index (collared and capped at 0% & 4%), the next being on 8th August 2024. SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

COVENANT STATUS

Tesco Stores Limited (Company Number: 519500) is a wholly owned subsidiary of Tesco PLC which was founded in 1919.

It has become the UK’s largest retailer and the third largest grocery retailer in the world operating 7,000 outlets nationwide with almost 275,000 employees and an annual turnover of £42 billion.

Tesco Stores Limited’s parent company, Tesco PLC, is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalization of approximately £18.1 billion as of 22 April 2015, the 28th-largest of any company with a primary listing on the London Stock Exchange.

A summary of Tesco Stores Limited recent accounts is set out below.

TESCO STORES LIMITED 23 FEB 2019 24 FEB 2018 25 FEB 2017

TURNOVER £42,219,000,000 £41,367,000,000 £40,134,000,000

PRE-TAX PROFIT £737,000,000 £417,000,000 £266,000,000

SHAREHOLDER FUNDS £5,623,000,000 £4,568,000,000 £1,265,000,000 SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

ANTI-MONEY LAUNDERING REGULATIONS VAT EPC In accordance with Anti-Money Laundering Regulations, The property is elected for VAT and therefore VAT will The property has an energy performance two forms of identification and confirmation of the source be payable on the purchase price. It is anticipated rating of D-76. A copy of the certificate of funding will be required from the successful purchaser. the transaction will be dealt with as a transfer of a can be provided upon request. going concern. SECURE CONVENIENCE STORE TESCO, SILVERDALE ROAD, EARLEY INVESTMENT OPPORTUNITY READING, BERKSHIRE RG6 7NG

PROPOSAL FURTHER INFORMATION

We are instructed to quote offers in excess For further information or to arrange an inspection, please contact: of £1,450,000 exclusive of VAT and subject Daniel Campbell Mark Powell to contract. A purchase at this level reflects a Tel: 07741 593 968 Tel: 07825 077 724 5.51% net initial yield after deducting standard Email: [email protected] Email: [email protected] purchase costs. Christopher Dee 40 Peter Street Manchester YEAR RENT PER ANNUM RUNNING YIELD M2 5GP

INITIAL RENT £84,814 5.51%

AUGUST 2024 £98,323 6.39% MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee nor any of its AUGUST 2029 £113,983 7.41% employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or We have applied an average CPI rate of 3% as an estimate of future rental growth and yield performance: condition or that it is capable or fulfilling its intended function. Prospective tenants/ purchasers should satisfy themselves as to the fitness of such equipment for their requirements. November 2019.