SECURE CONVENIENCE STORE INVESTMENT OPPORTUNITY CO-OP CONVENIENCE STORE, 1 HOLBOROUGH ROAD, SNODLAND, KENT ME6 5DQ Investment Summary

• Secure convenience store investment opportunity

• Well-presented, recently extended and refurbished unit

• Co-op entered into the lease in 2014 with full planning risk, received permission in 2017 and opened in 2018

• Co-op closed their two other sites in the town amalgamating into this unit together with the Post Office

• Provides a total of 6,951 sq ft

• Freehold site of c 0.4 acres

• Let to Co-operative Group Food Limited with surety from Co-operative Group Limited

• 15 year FRI lease from 22 September 2014 expiring 21 September 2029 but with an option to renew for a further 15 years

• 9.6 years to expiry

• Low initial rent, £86,261 per annum, (£12.41 psf)

• 5 yearly upward only RPI reviews (1% & 4% collar and cap)

• Offers in excess of £1,550,000 (STC)

• Representing a Net Initial Yield of 5.24% with a further increase to 6.08% in September 2024 assuming RPI growth of 3% pa. Rugby

Royal Leamington Spa Bury St Edmunds Daventry Newmarket

NORTHAMPTON Stowmarket Stratford- CAMBRIDGE Upon-Avon M40

Bedford

CO-OP CONVENIENCEIPSWICH STORE, SECURE CONVENIENCE STORE BANBURY Chipping Campden Saffron INVESTMENT OPPORTUNITY 1 HOLBOROUGHWalden ROAD, SNODLAND, KENT ME6 5DQ Felixstowe

M1 Chipping Norton Leighton Buzzard COLCHESTER LUTON Bishop's Stortford Braintree Location Dunstable Hertford

OXFORD Hoddesdon CHELMSFORD Snodland is a commuter town (population 10,200) HEMEL HEMPSTEAD M40 in northern Kent that lies in between Rochester and M25 Faringdon M1 Watford M11 Billericay Rickmansworth Maidstone some 27 miles south east of central London. Didcot Basildon Hornchurch Southend-On-Sea It sits on the A228 which connects the townSWINDON to the M20 M25 Canvey Island SLOUGH LONDON MOUTH OF THE THAMES M4 (junction 4, 2 miles to the south) and the M2 (junction M4 M4 READING 2, 4 miles to the north) motorways and thereafterHungerford to the Gillingham M3 M25 M25 or the Channel Ports. M2 Faversham M25 M26 CANTERBURY Sevenoaks Kent is a wealthy and desirable county. According to the latest figures, M25 MAIDSTONE Dorking REDHILL Oxted net disposal income in Kent is 64% higher than the national average, GUILDFORD Tonbridge M20 and Snodlands average house price of £308,753 compares favourably M3 M23 Ashford ROYAL DOVER to the national average of £234,742. TUNBRIDGE Lane M20 WELLS l Folkestone la d Crawley g dlan Tenterden e o R

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HOLBOROUGH ROAD SECURE CONVENIENCE STORE CO-OP CONVENIENCE STORE, INVESTMENT OPPORTUNITY 1 HOLBOROUGH ROAD, SNODLAND, KENT ME6 5DQ

Description & Accommodation The property comprises a detached convenience store converted from a former public house, which was extensively refurbished and extended in 2014, with brick elevations under a pitched tiled roof.

The property extends to a total of 6,951 sq ft and provides ground floor sales space of 4,623 sq ft with delivery, ambient and refrigerated stock areas, and staff room/WC to the rear. Further back of house space is provided at first floor.

The property sits on a site of 0.4 acres (0.16 hectares) which includes a delivery yard as part of the car park to the rear that provides spaces for 17 vehicles.

Tenancy The property is let to Co-operative Group Food Ltd with surety from Co-operative Group Limited on a full repairing and insuring lease for a term of 15 years from 22 September 2014, expiring 21 September 2029. The lease contains an option to renew on expiry for a further 15 years.

The current rent of £86,261 per annum (£12.41 psf) is to be reviewed every 5 years in line with the retail price index (collared and capped at 1% & 4%), the next occurring on 22 September 2024.

Tenure The property is held Freehold as outlined in red below (Title number: K299019). SECURE CONVENIENCE STORE THE CO-OPERATIVE,CO-OP 58 CONVENIENCE TOWN GREEN STORE, LANE, INVESTMENT OPPORTUNITY 1 HOLBOROUGHAUGHTON, ROAD, ORMSKIRK, SNODLAND, LANCASHIRE KENT ME6 L39 5DQ 6SF

Covenant Status

Co-operative Group Food Limited (Company Number: 26715R) is a wholly owned subsidiary of The Co-operative Group Limited which was established in 1844 and now operates 4,500 outlets with almost 90,000 employees and has an annual turnover of £10.50 billion. Co-operative Group Food is the UK’s 5th largest food retailer with almost 2,800 local, convenience and medium sized stores employing over 69,000 people. Furthermore, existing arrangements with independent co-operative societies means they supply more than 7,700 stores. A summary of Co-operative Group Food Limited accounts is set out below.

Co-operative Group 5th Jan 2019 6th Jan 2018 31st Dec 2016 Food Limited

Turnover £7,185,200,000 £6,940,200,000 £6,933,400,000

Pre Tax Profits £207,900,000 £232,500,000 £154,200,000

Shareholder Funds £1,970,500,000 £1,875,100,000 £1,805,400,000

A summary of Co-operative Group Limited accounts is set out below. Interior image is an example of standard Co-op fitout Co-operative Group 5th Jan 2019 6th Jan 2018 31st Dec 2016 Food Limited

Turnover £10,162,000 £8,943,0900,000 £9,472,000,000

Pre Tax Profits £93,000,000 £73,000,000 (£132,000,000

Shareholder Funds £3,069,000,000 £3,015,000,000 £3,241,000,000

Interior image is an example of standard Co-op fitout SECURE CONVENIENCE STORE CO-OP CONVENIENCE STORE, INVESTMENT OPPORTUNITY 1 HOLBOROUGH ROAD, SNODLAND, KENT ME6 5DQ

Anti-Money Laundering Regulations VAT EPC In accordance with Anti-Money Laundering Regulations, two forms The property is elected for VAT and therefore VAT will be A copy of the energy performance certificate of identification and confirmation of the source of funding will be payable on the purchase price although we anticipate can be provided upon request. required from the successful purchaser. the sale will be able to be dealt with as a TOGC. SECURE CONVENIENCE STORE CO-OP CONVENIENCE STORE, INVESTMENT OPPORTUNITY 1 HOLBOROUGH ROAD, SNODLAND, KENT ME6 5DQ

Proposal Further Information For further information or to arrange an inspection, please contact: We are instructed to quote offers in excess of exclusive of VAT James Kinsler £1,550,000 Tel: 07825 870 209 and subject to contract. A purchase at Email: [email protected] this level reflects a5.24% net initial yield Chris Bathurst after deducting standard purchase costs. Tel: 07957 138 003 Email: [email protected]

Assuming an average RPI rate of 3% per Mark Powell Tel: 07825 077 724 annum as an estimate of future rental Email: [email protected] growth we calculate the rent will rise to £100,000 per annum in September 2024, Christopher Dee: 40 Peter Street, Manchester M2 5GP improving the running yield to 6.08%.

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 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 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. April 2020.