Prime Food Store Investment Opportunity

ALDI, Tarvin Road Boughton, , CH3 5ND ALDI Tarvin Road Boughton, Chester, CH3 5ND

Our clients are seeking offers in excess of Executive £12,100,000 Summary (twelve million, one hundred thousand pounds) which reflects a net initial yield of 4.25%, rising to 4.81% in September 2023 and 5.44% by  Opportunity to purchase a supermarket September 2028, net of costs at 6.71% investment within the affluent and historic cathedral City of Chester

 Limited supply for additional retail schemes within the city

 Let to ALDI (5A1) for 20 years from 2 September 2013 at a current rent of £548,729 pa

 Current rent equates to only £14.37 /sq ft

 Fixed five yearly rent reviews based upon 2.5% pa uplifts with the next uplift September 2023

 Aldi are currently refurbishing their Supermarket 34 MALHAM

LONG PRESTON

33

SKIPTON DUNSOP BRIDGE GISBURN Prime Food Store ALDI Tarvin Road PILLING FLEETWOOD BARNOLDSWICK Boughton, Chester, CH3 5ND GARSTANG Investment Opportunity CHIPPING CLITHEROE COLNE

LONGRIDGE 12 HAWORTH Location WHALEY BLACKPOOL 3 32 1 11 Chester is an attractive and affluent historical 4 10 BURNLEY cathedral city, an important tourist destination and 8 the administrative centre for the county of . 7 LYTHAM 31 Chester is located approximately 45 miles (72km) ST ANNES 6 BLACKBURN HEBDEN BRIDGE

south west of and 13 miles (21 km) south 30

of . RIVER 29 9 RIBBLE 1 2 3 4

LEYLAND RAWTENSTALL It is one of the major retailing centres in the North 28 DARWEN West ranked 27th in the UK having an estimated TARLETON 8 catchment of 326,000 which increases with the influx CHORLEY of tourists which are estimated at over 8 million each SOUTHPORT year. 1 22

ROCHDALE The city’s major attractions include shopping, HORWICH 21 BURY 2 Chester Cathedral, Roman archaeology, Chester 27 1 20 Zoo (currently having a £300m extension), the 6 ORMSKIRK racecourse, the castle and the historic Rows and 5 FORMBY 4 SKELMERSDALE 18 WIGAN Amphitheatre. 17 19 3 26 3 2 21 WALKDEN 15 22 The District of Chester has a very affluent population, 1 SALFORD well above the national average in terms of wealth. 25 12 Over 80% of the City’s working population are 24 1 2 23 3 11 ECCLES involved in the service sector with major employers 23 4 1a being Lloyds Bank, HSBC, Marks and Spencers and ST HELENS 2 9 4 MBNA Europe Bank. BOOTLE 22 3 11 7 2 21a 0 9 10 25 8 Chester benefits from excellent road communication 1 5 0 27 4 1 7 4 2 6 3a 1 3 links, with the accessed via junction 2a 12, situated approximately 3 miles (5 km) to the east. 2 5 In turn the M53 provides direct access to the Wirral to 3 20 8 6 20a TR the north west, to the 9 RIVER RRT PRESTATYN MERSEY 4 10 R 11 and the national Motorway network RRT 12 19 via the M6. In addition, the A55 (coast road) 5 RIVER provides access to North . DEE 8 BODELWYDDAN 14 Manchester nternational Airport is situated 11 approximately 30 miles (48 km) to the east and 15 Liverpool’s John Lennon Airport situated 24 miles (39 km) to the north, both service the City. Rail access HOLMES 12 is via Crewe to London Euston (2 hours 20 minutes), CHAPEL WINSFORD 18 Liverpool Lime Street (45 minutes)DENBIGH and Manchester Oxford Road (1 hour 10 minutes). CONGLETON 17

RUTHIN

CREWE

NANTWICH 16

15 CORWEN LLANGOLLEN WHITCHURCH ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

0 5 15

5 A To Manchester Situation To Ellesmere Port 11 A 4 1

The property is situated in the densely R I N G A 5 R populated residential suburb of 48 O A D Boughton, approximately 1.5 miles

east of the City centre. The property is

A 5 accessed directly off the A51 which is 4 0 P A R the main arterial route out of the city K G A T E

R A54 O connecting to the A41 and A55. In turn 8 S A EA A LA 4 Shotton ND D RO 1 AD R 12 A IN the A55 then connects with the M53 5 G Bache 1 R O Connah’s 1 A 6 Quay Queensferry D and M56 motorways. AY W LE O 4 O 8 H 4 6 A A 5 54 A 8

C S H E E A Chester S LAND ROAD TE R AD R IN RO O TARV A A5115 A5 1 D W CHESTER HI B TCH 5 URC 1 B H 2 51 RO 5 2 3 5 9 9 8 AD 4 A A

Hawarden D A Y

O A R W

S

M S E

A R

P N H Hawarden 0 X L D

A X E 5 R RO B R E 5 E A T S

5 O S R E H E

d 5 1 N C y a A o A W L R W a 1 2 ney 5 M 04 To A W y es 1 e 16 5 Ch A W m Vi L t i m u B g N i c h o Li tf d i t u A e n a o et t ve v 5 s B S r S t e i tr 5 4 a e r eet 1 r r 2 i 0 5 R e p R o o S o a Park tre Chester Rail a o d S d e e l ta n t Broughton t R io Station a n L G o R a o le r a a de d o n d t o La ee H ne Str Buckley WAY e y t ESS A55 nn a Stree PR A feet EX int W ight LES Sa L N WA R le a o y o m 68 Sain G A52 t O H A55 o a sw N W SWAY n rd a 6 ALES EXPRES d e ld n s S L W A4 tr a a e ne y e d t a o e n t R La e y tre t e e S i l g oo Geor C H

t tree S Canal A 52 68

t e e r t King Street S y e F N b b r o d o A Roa r d n A th vi h ar 5 T s t g 1 a 5 6 tree r S a A te m 2 n t u H e hton 8 oug A51 S St 1 B Tarvi A5 n Roa t d S r r G et e e a e ro r e s St e i s t t 68 s n e c 52 v rin A e t P n C M A o 5 T ity 1 r r

a 1 i n P 5 W a r it r t y k a i n l S t R l ee s t r oa s St r R e e at W stg e d o Ea t a a

d y B 8 5 B 6 Grosvenor t r 1 A ee i 2 r dg 5 te St 5 3 A 0 4 rga Park A te e 5 8 Wa S 1 1 a S 5 t n Christl 8 t r eton Ro W a d d S e A54 hall n e y ea mo m t Co L v a e n N t r e u S e re n t t S r r ’ e s e rs pp R ia e e te Fr 8 P t hi 6 o W A52 a

d Earl’s Eye ves rs Gro ria Meadows F he ck T Bla

t e re

reet St St e tle k as u C S D h

ip

g ate

Chester S tr L

ad e o e B

o we Racecourse t 5 R

r 1 r

o 3 B

n r 0 e i v d s g o e r S t G e r iv ee Dr SAT NAV: t le 3 st 8 a 4 C A CH3 5ND ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

Accommodation

The property extends to approximately 38,178 sq ft (3,547 sq m). Out of this total area approximately 8,081 sq ft is sublet to Baycrown Ltd, trading as The Carpet Factory and 12,000 to TJ Morris trading as Home Bargains. ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

DESCRIPTION

The property comprises a detached retail warehouse unit constructed in the mid 1990’s on an island site of 3.6 acres (1.46 hectares).

The property which completely refurbished in 2013 and creates effectively three units, the supermarket occupied by ALDI and 2 other retail warehouse units occupied by Home Bargains and the Carpet Factory.

The property is of a steel portal frame construction under a pitched roof with external part brick and part metal clad elevations.

The unit benefits from approximately 196 car spaces providing an excellent ratio 1:195 sq ft. ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

PLANNING TENURE Planning consent was granted on 5th July 2013. The permission grants an open A1 discount retail food store use on the area to be occupied by Aldi Freehold. with a maximum 15% of net sales floorspace for comparison goods. The area occupied by Home Bargains has the benefit of non food class A1 use with a maximum 30% of floor area for convenience goods and 25% for TENANCY food and drink products. The area occupied by The Carpet Factory has a restriction to electrical goods, home furnishings and motor accessories. The property has been let on an overriding lease to Aldi Stores Limited for a term of 20 years on FRI term from 2 September 2013 subject to five-yearly, upwards-only rent reviews based upon 2.5% per annum compounded.

The current rent passing is £548,729 per annum equating to a low base of £14.37 per sq ft.

The fixed rental uplifts are as follows:

Date Rent Rent Per Sq Ft

Current £548,729 £14.37

Sept 2023 £620,832 £16.26

Sept 2028 £702,409 £18.40

T J Morris Limited trading as Home Bargains have sublet approximately 12,000 sq ft of the total floor space from Aldi Stores Limited on a 20 year sublease at an initial rent of £156,000 pa. Rent reviews are five yearly to 2% pa compound.

A further part of the property (approximately 8,081 sq ft) has been sub let to Baycrown Ltd, trading as The Carpet Factory on FRI terms for 15 years from 25 March 2010 at £72,000 pa subject to five yearly rent reviews. ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

Covenant Information

Aldi is a leading global discount supermarket chain established in Germany in 1913 with over 9000 stores in 18 countries with an estimated combined turnover Years End 31 Dec 2016 31 Dec 2015 31 Dec 2014 in excess of €50 billion. Further information on the company can be found at www.aldi.com. Sales Turnover £8,744,385,000 £7,705,140,000 £6,893,256,000 Aldi is now the fifth largest supermarket in the UK having doubled its market share to 7.5% since 2010 (Kantar). With a current portfolio of 700 stores within the UK, Profit Before Tax £214,795,000 £212,621,000 £250,584,000 Aldi is looking to expand to over 1,000 stores by 2022. Globally, Aldi currently has 10,000 stores worldwide across 18 countries within Europe and the United States. Tangible Net Worth £2,321,983,000 £2,073,988,000 £1,948,445,000 Aldi Stores Limited has a Dun & Bradstreet rating of 5A1, representing a minimum risk of business failure. Their most recent accounts are shown in the table below. ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

Rental Commentary

We understand the store has a strong Property Transaction Date GIA (sq ft) Rent (psf) trading profile and we consider there would be significant competition for this Aldi, Old Trafford Manchester Letting 2017 19,890 £19.00 site if it was available to let, with upside Aldi, Newton Le Willows Manchester Letting 2017 18,557 £15.25 over the passing rental level of £14.37 per sq ft. Aldi, Ormskirk Letting 2017 17,000 £15.00

In terms of rental value, we would Aldi Coventry Letting 2016 20,128 £17.75 highlight the following comparable evidence: Aldi, Sale Manchester Letting 2014 19,132 £18.00 ALDI Tarvin Road Prime Food Store Boughton, Chester, CH3 5ND Investment Opportunity

Investment Market

Property Date Initial Yield /NIY Lease Term (Break) Rent Review Comments

Lidl, Acton U/o Quoting 4.25% 25 (20) 5 yearly RPI (1-2.5%) Under offer ahead of quoting terms

Aldi, Romford Oct 2018 Sub 3.5% 24.5 5 yearly RPI Understood other interest at similar levels

Aldi, Sale Aug 2018 4.5% 15.5 5 yearly (2.5% fixed) Upper floors sold off for residential flats

Aldi, Hasting Aug 2018 4.2% 20 5 yearly RPI (1-2.5%) Forward commitment

Aldi, Leigh May 2018 4.2% 13.5 5 yearly RPI (1-2.5%) Purchased with adjoining B+M split analysis

Aldi, Bedford (Clapham Road) May 2018 4% 20 5 yearly RPI (1-3%) -

Aldi, Royston Apr 2018 4.25% 15 5 year RPI (1-3%) Forward funding. Purchased with M&S split analysis

Aldi, Hull Feb 2018 4.22% 20 5 yearly RPI (1-3%) Forward commitment

Aldi, Bedford (Ampthill) May 2017 4.3% 20 5 year RPI (1-3%) ALDI Tarvin Road Boughton, Chester, CH3 5ND

EPC Proposal The property has an EPC rating of B. Our clients are seeking offers in excess of A full copy can be downloaded at gva.co.uk/14662

VAT £12,100,000 We are advised that the property is elected for VAT purposes and therefore the sale of the property will attract VAT. It is anticipated that the sale will be treated as a transfer of a going concern. (twelve million, one hundred thousand pounds) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level would show the following yield profile:

Initial 4.25% Sept 2023 4.81% Sept 2028 5.44%

Net of costs at 6.71%.

Further Information

Should you wish to inspect the property or require additional information, please contact:

David Winterbottom 0161 956 4103 07836 225 552 [email protected]

Adam Wildig 0161 956 4029 07739 325 666 [email protected]

Matt Jones 0161 956 4105 0161 834 7187 Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the 07904 629 605 agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any gva.co.uk/14662 authority to make or give any representation or warranty whatsoever in relation to the property. October 2018. RB&Co 0161 833 0555. www.richardbarber.co.uk [email protected]