KT14 7NP Investment Considerations

Byfleet is situated in one of the most affluent areas in the UK, ranked 8 out of 200 on the PMA affluence indicator.

Byfleet benefits from excellent road communications, being close to both the M25 and M3 motorways.

The property is situated in a prominent position fronting the A245.

The scheme comprises 4 units totalling 35,760 sq ft and is well let to Halfords, Pets at Home, Comet and Paul Simon. The Comet lease benefits from fixed uplifts in September 2012 and 2013.

Attractive income weighted unexpired lease term of over 11 years.

The park has a bulky goods consent, with potential for unrestricted A1 consent on 19,864 sq ft, subject to obtaining a Certificate of Lawful Use.

We are instructed to seek offers for the above property at a price of £12.2 million, subject to contract and exclusive of VAT. This is based on an attractive net initial yield of 6.25%, assuming purchaser’s costs at 5.80%. Following the fixed uplifts in the Comet rent, the yield rises to 6.34% in September 2012 and to 6.43% in September 2013, to give an equivalent yield of 6.31%.

1/2 Investment Considerations 2/2 Investment Considerations To Heathrow Airport Ascot M25 To Central Location London 12/2 A30 M3 Byfleet lies 24 miles south west of London, 12 miles north of Guilford and 30 miles south east of Reading. To Reading Weybridge The town lies within a highly affluent residential area, together with neighbouring Weybridge, Cobham and A3050 M3 11 St George’s Estate. A317 Bagshot A244

3 Byfleet benefits from excellent road communications, being situated 4 miles south and 3.5 miles north A320 A319 of Junctions 10 and 11 of the M25 respectively. The M3 is located 6.4 miles north of Byfleet which is A3 A322 A3046 A245 A245 accessible via the M25 and provides access to London to the north east and to to the To Southampton Byfleet Cobham south west. 10 Woking Byfleet and New Haw railway station provides services into London, including Clapham Junction M25 A324 A3 (32 minutes) and Waterloo (42 minutes). Gatwick and Heathrow Airports are situated 27 miles south A247 To Gatwick Airport east and 17 miles north respectively. A322 A320

Catchment & Demographics

Byfleet is situated in one of the most affluent areas of the UK. For PMA, the town forms part of the Woking Guildford area and is ranked 8 out of the top 200 PMA towns in terms of affluence, as demonstrated below:

Key Economic Indicators Woking PMA Major Retail PMA PMA Town Average 200 Centre Rank Average

Social structure: % of adult population AB (most affluent) 37% 26% 25% -

Social structure: % of adult population DE (least affluent) 17% 26% 24% -

Car ownership: % of households 2+ cars 46% 32% 30% -

Total average earnings: gross weekly wages (£) (2009) £468 £412 £400 29

Claimants: % population aged 16 - 64 (June 2011) 1.9% 3.6% 3.7% 21

Home ownership: % of households owner occupiers 78% 71% 70% 17

Per capita in-store comparison expenditure in 2010 in Woking was £2,513, compared to the PMA average of £2,301, ranking it 11 out of the top 200 PMA towns. Similarly, retail warehouse expenditure in 2010 was significantly higher in Woking at £504 per capita, compared with the PMA average of £456 per capita, ranking the town 16.

Location Situation

The subject property is situated in a prominent position just off Junction 11 the A245 Parvis Road, benefiting from good visibility from the A317 A320 Addlestone road. The A245 links to the A3 to the east and West Byfleet to the west.

Access to the property is from Royston Road, which via High Road, connects to a roundabout junction with the A245. Weybridge Ottershaw A319 M25 A318 Retail Warehousing in Byfleet & Woking

There is a very limited supply of retail warehouse floor space Byfleet & New Haw within the vicinity, with the total retail warehouse floor space in Fairoaks A320 the area estimated at 325,000 sq ft. Birch Wood Woodham Paddocks Retail Park

Coupled with this, the provision per household for furniture/ Marks & Spencer furnishing goods and electrical goods is below average, however it Extra should be noted that two of the retail units provide for this on the New Zealand Golf Club West Byfleet IS RD. A245 subject property. PARV A245 The other retail warehousing in the area is as follows:

Sheerwater Paddocks Retail Park, Weybridge A245 West Byfleet Golf Club The only other retail warehouse scheme in the immediate vicinity is this open consented retail park, lying close to a Tesco Extra and A320 Foxwarren Marks & Spencer, 0.8 miles north of the subject property. This M25 Park 3 unit scheme is let to Argos, and Mothercare at rents Lion Retail Park between £31 - £33 per sq ft. Wolsey Place Junction 10 Shopping Centre Lion Retail Park, Woking Wisley Located 3.1 miles south west of the subject property is this Common 77,884 sq ft open consented scheme let to tenants including Woking Pyrford A3 Hoebridge Golf Club Hobbycraft, Pets at Home, Currys, Carpetright, Halfords and Golf Club Argos. The scheme was anchored by Focus but this unit has now been assigned to for a food store. We understand the rent is

£25 per sq ft and a significant premium was paid by Asda. Rents – Location maps not to scale and indicative only on the smaller units are up to £35 per sq ft.

Situation Description

The subject property provides a modern purpose built retail warehouse scheme arranged in a terrace of 4 units totalling 35,760 sq ft gross internal area.

The scheme presents well, being of steel frame construction with the main elevations clad in attractive masonry below ‘microrib’ cladding panels. There are canopy entrance features on each of the units with the tenant signage displayed above. The development is well laid out, providing 4 good sized units of between 6,000 sq ft – 12,000 sq ft with a minimum eaves height of 6 metres. Internally, the units are fitted out to the individual tenants specification. Units 3 and 4, occupied by Halfords and Paul Simon respectively, benefit from having trading mezzanine floors. Unit 1a benefits from a mezzanine floor located to the rear of the unit which is used for storage purposes and staff facilities. Unit 1b currently does not have a mezzanine but there is sufficient eaves height to allow for the installation of this, subject to planning.

There is a tarmacadam surfaced customer car park to the front of the units which provides 114 spaces, giving a car parking ratio of 1:314 sq ft.

There is a dedicated service yard situated to the rear of the units which is segregated from the car parking. We calculate the site area extends to approximately 2.2 acres (0.89 hectares) giving the site cover of 37%.

Description Tenure

Freehold. The demise is edged in red on the site plan overleaf.

Tenancy Schedule

The property is let on full repairing and insuring leases as follows:

Unit Tenant GIA Lease Term Expiry Next Rent Current Rent Rent Comment (sq ft) Start Date Review (p.a.) (per sq ft)

1a Comet Group Plc 11,603 20/09/2010 10 19/09/2020 20/09/2015 £208,854 £18.00 Stepped rent rising to £220,457 pa 20/09/2012 and £232,060 pa 20/09/2013. Area capped at 11,603 sq ft for rental purposes. Actual area 12,026 sq ft.

1b Pets at Home Ltd 7,838 15/02/2010 15 14/02/2025 15/02/2015 £176,373 £22.50

3 Paul Simon (London) Ltd 10,016 24/09/2004 20 23/09/2024 24/09/2014 £280,448 £28.00 Concession to Carpetright.

4 Halfords Ltd 5,880 19/03/1999 20 18/03/2019 19/03/2014 £141,120 £24.00

TOTAL 35,760 (based on Comet actual area) £806,795 £22.56 (average)

Planning

The scheme was originally granted planning permission in December 1997 for the erection of 2 retail warehouses for the sale of non-food products including ‘DIY, hardware and building products, furniture and furnishings, floor coverings, electrical and computer products, car spares and accessories, pets and pet products, office equipment, stationery and business furniture and any products that are ancillary to these main ranges and for no other purpose’.

In 2009 permission was applied for to split Unit 1 into 2 units, now occupied by Comet and Pets at Home (Units 1a and 1b). The Council attached certain conditions to the consent but did not reiterate the condition stating the use of the units. Our clients have taken planning advice on this. We understand case law has recently confirmed that, in such circumstances, there is effectively a ‘new chapter’ in the planning history and previous conditions and restrictions affecting the use of the property are no longer valid. Our client’s planning consultants therefore believe there is an unrestricted consent on Units 1a and 1b totalling 19,864 sq ft and a Certificate of Lawful Use has been applied for to document this. Further information is available upon request.

1/2 Tenancy Tenants Covenants Site Plan

The scheme is well let to predominately Dunn & Bradstreet 5A1 rated covenants.

Economic conditions have led to the majority of retailer sales slowing. However, Pets at Home, owned by Bridgepoint Capital, are performing well and are currently expanding and aim to open over 25 stores in 2011. Halfords have experienced increased sales of cycling and leisure goods this year, and we understand Paul Simon is still trading well.

Kesa, the parent company of Comet have recently confirmed that the business is up for sale following disappointing trading results for the year ending 2011, which have not yet been fully published. As part of a cost cutting exercise, 24 stores are on the market and are due to close, although we can confirm this store is not one of those. Comet have also begun to undertake a re-branding exercise and have re-fitted several stores in line with their new trading format, including their store on the subject property. We also understand that trading in the re-branded units has improved. It has been reported that Kesa have sought assurances from prospective buyers of Comet that they will run the business as a going concern. We believe that Comet will remain an important player in the electrical market and, in particular, in the white goods market.

We set out below a summary of the most recent tenant accounts:

Unit Tenant Year Sales Turnover Profit / Loss Net Worth D&B Ending (000s) Pre Taxes (000s) Rating 1a (000s) 1b

04/30/2010 £1,586,368 -£2,951 £58,837 2 1a Comet Group Plc 5A1 04/30/2009 £1,594,240 -£7,837 £75,422 3

Pets at Home 03/25/2010 £462,646 £68,853 £162,401 1b 5A1 Limited 03/26/2009 £399,899 £58,377 £104,437

Paul Simon 05/31/2010 £54,508 £809 £7,021 2 3A2 (London) Limited 05/31/2009 £41,387 £567 £6,478 04/02/2010 £817,600 £109,200 £261,500 3 Halfords Limited 5A1 04/03/2009 £809,200 £101,400 £229,800

2/2 Tenancy Print Save Close

VAT Further Information

The property has been elected for VAT purposes. Paul Wilkinson e: [email protected] Proposal ddi: 020 7317 3799 m: 07770 585313 We are instructed to seek offers for the above property at a price of £12.2 million, subject to contract and exclusive of VAT. This is based on an attractive net initial yield of 6.25%, Ellie Kirkby assuming purchasers costs at 5.80%. At this level, the running yield based on the fixed e: [email protected] Heathcoat House uplifts in the Comet rent is 6.34% in September 2012, rising to 6.43% in September ddi: 020 7317 3790 20 Savile Row London 2013, to give an equivalent yield of 6.31%. m: 07764 241898 W1S 3PR

MISREPRESENTATION NOTICE Wilkinson Williams LLP give 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 fair and overall descriptions of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied up on as being a statement of representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good working condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts 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 part of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein area approximate only. 6. Where there is reference in the 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 an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. September 2011.

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