RETAIL WAREHOUSE INVESTMENT SALE

HITCHCOCK & KING, STANWELL ROAD, ASHFORD, TW15 3DX RETAIL WAREHOUSE INVESTMENT SALE

INVESTMENT SUMMARY

• Well situated, close to Airport and the M3, M25 and M4 motorways.

• Prominent and accessible site, situated close to Ashford town centre and railway station.

• Only retail warehouse in the town, therefore limited retail warehousing competition.

• The property totals 32,178 sq ft on a large site area of over 2.6 acres with car parking for 157 vehicles.

• Let to 2A1 D&B rated covenant of Hitchcock & King with a long unexpired lease term of over 24 years at a rent of £530,000 p.a (£16.47 per sq ft).

• Long term potential redevelopment for foodstore use, subject to planning.

• We are instructed to seek offers for the freehold interest in the above property of £7,420,000 subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.75%, based on purchaser’s costs of 5.80%. RETAIL WAREHOUSE INVESTMENT SALE

Ashford is located in Surrey, 2 miles east of Staines and 2 miles north of Junction 1 of the M3, 5 miles east of Junctions miles west of Sunbury, and forms part of the well-established 13 and 14 of the M25 and 5 miles south of Junction 3 of LOCATION commercial centre located in and around . the M4.

The town directly benefits from its close proximity to Central Ashford also has good rail links to Waterloo with London, which lies 13 miles to the east, with Heathrow a fastest journey time of 38 minutes. Furthermore London Airport situated 3 miles directly to the north. The town has Heathrow Airport provides flights to the majority of excellent road communications, being strategically situated 3 global destinations. RETAIL WAREHOUSE INVESTMENT SALE

CACI predict there are 102,413 and 186,463 people living proportion of the catchment population is employed by the within a 10 and 20 minute drive time of the subject property airport and aviation related businesses. BP International is respectively. We anticipate that, given the unit’s accessibility also a major employer in the area. Many Ashford residents and lack of DIY competition in the vicinity, the catchment also also commute into London and the Thames Valley. CATCHMENT & DEMOGRAPHICS draws upon part of Staines to the west, Feltham to the east, Ashford’s strong communication links and close proximity Stanwell to the north, to the north east and Sunbury to the motorway network has attracted a large number of to the south. affluent commuters residing there. The relative affluence of Given Ashford’s proximity to Heathrow Airport, a large the catchment population is demonstrated as follows:

Social Structure Accommodation

80% 70% 35% 60% 30% 50% 25% 40% 20% 30% 15% 20% 10% 10% 5% 0% 0% Owned (HH) Social Rented (HH) Private Rented (HH) AB C1 C2 D E Ashford Base Ashford Base

Higher than average proportion of the most affluent AB social group Over 70% of homes are owner occupied

Income CACI Group 35% 23% 20 Minutes: Ashford 20% 30% UK 18% 25% 15% 13% 20% 10% 15% 8% 5% 10% 3% 5% 0% 0%

£14k or£15k Less to £19k£20k to £29k£30k to £39k£40k to £49k£50k to £59k£60k to £69k£70k to £99k £100k to £149k£150k or Over Rural Solitude Elderly Needs Alpha Territory Carers and Kids Liberal Opinions ActiveSuburban Retirement MindsetsNew HomemakersClaimantUpper Cultures FloorIndustrial Living Heritage Ashford Base Professional RewardsSmall Town Diversity Ex-Council Community Terraced Melting Pot Significantly more higher earning households in Ashford ‘Suburban Mindsets’ make up the majority of the population RETAIL WAREHOUSE INVESTMENT SALE

The subject property lies immediately north of Ashford Immediately adjacent to the east of the property is a further railway station, and the town centre is situated a short walk unit occupied by the tenant, Hitchcock & King. They own south of the station. the freehold of this unit.

The unit is accessed from Stanwell Road, which links with The remainder of the surrounding area is largely residential. the A30 London Road to the north. The Staines Bypass is SITUATION located a mile south, and provides direct access to Junction 13 of the M25 and the wider motorway network.

M4 M4 M4 A3044 Hammondsworth Moor Hammondsworth

A4 Bath Road

M25

Heathrow Airport London Road

A30

Stanwell Road

M25 A30 A315

Staines A314 Reservoirs Staines Road

Stanwell Rd

A30 B3003 Feltham B376 A30 A312 London Road

Stanwell Rd B378 A316

Ashford Staines-upon-Thames Staines Road West B377 Staines Park A308 A244 M25 RETAIL WAREHOUSE INVESTMENT SALE

The subject property benefits from being the only retail warehouse unit in the town, with the closest DIY retail warehousing being the Homebase at Staines, 2.3 miles west.

Competition from DIY and Builders Merchants nearby is also limited with the closest stores located as follows: A3063 RETAIL WAREHOUSE COMPETITION Heathrow A30 A3113 Airport A315

14

A3044 A315 A312 Feltham B378

A30 13 B3003

B376

B377 A316 A308 Ashford M25 B378 Hanworth Staines-upon-Thames A244 1 B377

A308

B376

A320 A3050

2 A244 M3 B377Sunbury Molesey RETAIL WAREHOUSE INVESTMENT SALE

The subject property comprises a standalone purpose built mezzanine totalling 1,220 sq ft containing staff offices. The retail warehouse unit totalling 32,178 sq ft, which was unit also benefits from a garden centre of circa 5,850 sq ft. originally occupied by Focus and was one of their best The property is served by a demised open tarmacadam performing stores. Following their demise, the property was surfaced car park located at the front, providing 157 taken by the current tenant, Hitchcock & King by way of spaces, equating to an ample car parking ratio of an assignment, (albeit at a lower rent). 1:206 sq ft. The property was constructed in the late 1980s and is of a The dedicated service yard is situated to the side of the unit. standard steel frame construction with the main elevations clad in masonry and blockwork. DESCRIPTION The scheme benefits from a site area of 2.6 acres (1.05 hectares), giving a low site cover of approximately 30%. Internally, the unit is fitted out to the tenant’s specification. The unit is well configured, and would permit subdivision. There is a tenant’s trading mezzanine and a further RETAIL WAREHOUSE INVESTMENT SALE

TENURE The property is held freehold and the site area is delineated below in red.

15.8m

carage

Pond TENURE

TENANCY CR m

3 .

8 1 Bdy Ward EFDB&

White ford Retail Warehouse Ash Lodge tation FB S TRAIN STATIONTCB 1

SP LB

3 H C 2

A

7 O 1

R

P

5

o

t P 1

A

7 S N T

O A T Car Park I 9 T h T 4 I e O

A A N

T r c R 21 S

a O

5

El Sub Sta d 3 1 A e D

Works 1

3 Bank

0 1 m TOWN CENTRE 1 5 ts . s 3 1a Works Works Po 7 5 9

5 Bank 11 Works 1

15

4

9 6 1

1 0

D 1 0

TENANCY A a

O 1 E R 2 31 ORP DTH

23 WOO

2 The property is fully let on a full repairing and insuring lease to Hitchcock & King Limited. The lease4 runs from 16 March 29 P ion ara

Stat de 2012, expiring1 to on 15 March 2037 at a rent of £530,000 per annum, equating to £16.475 per sq ft. The next rent review

28 Edison 0m 25m 50m 75m 8 2 is on 25th December 2015, and reviews are 5 yearlyHouse from this date until 2035. ick 6 E Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449. Getmapping plc 2012. Plotted Scale - 1:1124

WW RETAIL WAREHOUSE INVESTMENT SALE

PLANNING

The property was granted a retail planning consent in December 1986, which stipulated that:

• ‘No additional floor space may be formed within the buildings by means of internal horizontal division;

• The retail warehouse may only be used as a DIY retail warehouse, selling items required for the repair, maintenance, alteration and improvement of domestic properties (including cupboards, wardrobes and shelving and kitchen and bathroom fixtures and fitting whether in kit form or not but excluding all other furniture and soft furnishings), and for no other purpose within Class 1 of the 1972 Use Classes Order without the prior consent of the Planning Authority; and

• The builders’ merchants and garden centre open display area may only be used as a builders’ merchants selling building materials and equipment and a garden centre selling products for direct use in the garden and for no other use within Class 1 of the 1972 Use Classes Order without the prior consent of the PLANNING Planning Authority.’

Copies of the planning permission are available on request.

ENVIRONMENTAL

Merebrook Consulting have undertaken a Phase 1 Environmental Review of the property, which is assignable to the purchaser. The report states there is a low risk for ground contamination on the site. A copy of the report is available on request. RETAIL WAREHOUSE INVESTMENT SALE

ASSET MANAGEMENT POTENTIAL

There are potential asset management initiatives on the in the subject property for both the whole site and for a subject property, in the longer term as follows. subdivision of the unit, for a store of circa 13,000 sq ft.

Ashford currently lacks a main foodstore with there only B&Q have also expressed interest in the past, having been being a small Sainsbury’s Local and Londis store in the town, aware that this was one of Focus’ top performing stores, and located on the High Street. There has been foodstore interest we believe they would also be a keen occupier for the unit.

TENANT COVENANT

Hitchcock & King Limited are a London based builders merchants who have been in existence for almost 40 years and operate out of 9 units most of which are owned freehold. The company remains privately owned and family run. The company has a 2A1 D&B rating with a minimum risk of business failure. We set out below a summary of their most recent company accounts:

Year to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010 Turnover £12,760,403 £10,510,827 £8,070,782 Pre Tax Profit / Loss £140,199 £576,807 – £33,504 ASSET MANAGEMENT POTENTIAL Tangible Net Worth £4,400,238 £4,425,840 £4,023,723

TENANT COVENANT The lease is guaranteed by both H&K Holdings Limited and Hitchcock & King Properties Limited which have a D&B rating of 2A2 and 1A1 respectivley. H&K Holdings Limited are the parent company for both Hitchcock & King Properties Limited and Hitchcock & King Limted. We set out below a summary of the respective company accounts.

H&K Holdings Limited

Year to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010 Turnover £12,760,403 £10,525,342 £8,199,525 Pre Tax Profit / Loss -£275,027 -£1,538,999 -£16,819 Tangible Net Worth £5,281,916 £3,594,211 £5,309,605

Hitchcock & King Properties Ltd

Year to 31/03/2012 Year to 31/03/2011 Year to 31/03/2010 Turnover n/a £14,515 n/a Pre Tax Profit / Loss n/a -£2,115,804 n/a Tangible Net Worth £882,766 £1,297,804 £3,415,314 RETAIL WAREHOUSE INVESTMENT SALE NEXT

VAT The property has been elected for VAT purposes.

PROPOSAL We are instructed to seek offers for the freehold interest in the above property at a price of £7,420,000 (Seven Million, Four Hundred & Twenty Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.75%, based on purchaser’s costs of 5.80%.

CONTACTS VAT Paul Wilkinson Tel: 020 7317 3799 PROPOSAL

CONTACTS Heathcoat House Ellie Kirkby 20 Savile Row Tel: 020 7317 3790 London W1S 3PR

It should be noted that some of the Partners of Wilkinson Williams LLP have a financial interest in the subject property.

Wilkinson Williams LLP and their clients give notice that:1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere,either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may bemade in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statementsor representations of fact.2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Wilkinson Williams LLP have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. January 2013.