THE WATERFRONT, SOVEREIGN HARBOUR, , EAST , BN23 5UZ FREEHOLD/LONG LEASEHOLD RETAIL/LEISURE INVESTMENT FOR SALE

LOCATION ‘The Waterfront’ is within Sovereign Harbour, northern Europe’s largest composite marina complex, and within the built up area of Eastbourne, the second largest town in .

‘The Waterfront’ is 4 miles from the A27 dual carriageway (the main east-west coast road), 27 miles from & Hove and 50 miles (1 hour 10 minutes) from junction 7 of the M25. Eastbourne has a direct mainline railway service to London Victoria (1 hour 22 minutes).

Eastbourne's population is growing; between 2001 and 2011 it increased at twice the national average rate, from 89,800 to 99,412. Additionally, the 2011 census shows that the average age of residents has decreased as the town has attracted students, families and those commuting to London and Brighton.

Sovereign Harbour comprises an area of 330 acres developed since the 1990s to provide marina facilities, over 3,000 dwellings, a retail park and ‘The Waterfront’.

The retail park includes an ASDA superstore of almost 100,000 sq ft, and out-of-town format Next, Sports Direct, Matalan, TK Maxx, Boots, Frankie & Benny’s, Wilko store, gym and 6 screen Cineworld cinema.

DESCRIPTION ‘The Waterfront’ comprises the only commercial buildings with water frontage. Consequently the public house, restaurants, bars, shops and gallery have regional appeal as a leisure destination. The extent of the property being offered for sale is defined by the red line on the attached plan, comprising an area of approximately 7.45 acres.

The buildings are let as 10 restaurants, cafes and bars, together with shops, gallery, dentist, office and hair and beauty services, with a gross internal floor area of approximately 39,676 sq ft (excluding common parts). We have not measured the accommodation and the gross internal floor areas in the attached schedule have been supplied by the vendor and are the areas upon which the service charge contributions are calculated.

The sale also includes the car park that serves ‘The Waterfront’ being a surface car park of over 370 car spaces, along with 18 service bays and 14 unallocated spaces accessed via Atlantic Drive.

Further general information can be found at http://eastbourneharbour.com, including an introductory video, a photograph gallery and even details on the various boat tours starting at ‘The Waterfront’.

ACCOMMODATION AND SCHEDULE OF TENANCIES The free-standing public house is let to Bass Taverns Ltd on a full repairing and insuring lease for a term of 999 years at a peppercorn rent, with the tenant also contributing to other costs by way of a service charge.

The leases of all other units are based upon a standard format, being lettings on effectively full repairing and insuring terms, and subject to upwards only rent reviews.

A tenancy schedule is attached. The current rental income from the leased units is £557,530 per annum. Once the vacant units are let and the outstanding lease renewals completed we estimate that the total income will rise to £606,000 per annum.

TENURE The property for sale is shown outlined in red on the attached plan, and comprises a freehold interest in the area coloured yellow which amounts to 2.43 acres (subject to the schedule of tenancies) and a new 999 year leasehold interest at a peppercorn rent in the area coloured blue (5.02 acres).

The leasehold land is to be used for parking by the general public.

As an alternative the vendor will consider a sale of all shares in Sovereign Harbour Waterfront Holdings Ltd which owns the same interests in the land.

OFFICIAL SENSITIVE DO NOT SCALE FROM THIS DRAWING Copyright in all documents and drawings prepared by TPS Consult Ltd. and in any works executed from those documents and drawings shall remain the property of TPS Consult Ltd. unless otherwise agreed at project inception.

LEGEND

BOUNDARY LINE

LEASEHOLD AREA

FREEHOLD AREA

Project SOVEREIGN HARBOUR NORTH HARBOUR INFRASTRUCTURE

Drawing Title WATERFRONT TRANSFER AREAS

Originating Office TPS Croydon - Interchange 81-85 Station Road CROYDON CR0 2RD

Tel : +44 (0)1902 422431 www.tpsconsult.co.uk

Birmingham : Croydon : Edinburgh : Leeds : Wolverhampton TPS Job Manager S.HAWLEY QA System - Checks Signature Date

Drawn By: A.WILSON 25.09.2017 Checked: M.ORRISS 25.09.2017 Authorised: S.HAWLEY 25.09.2017 TPS Project No. Drawing Status Scale (at A1) (at A3) 104278 INFORMATION 1:1250

Drawing No. Displ Bldg Level Type CiSfb Element Code Seq. No. Revision CL(94)21 - OFFICIAL SENSITIVE

SERVICE CHARGES The combined service charge budget for the tenants for the current year is £260,374 (excluding insurance). Bass Taverns Ltd contributes over 25% of the service charge costs. The balance of the service charge budget amounts to an average of £6.30 psf, with the restaurants paying a greater weighting and office occupiers a lower weighting.

The sale excludes the wall to the water, which will continue to be the responsibility of Premier Marinas, and the purchaser is not responsible for contributing towards its repair.

PRICE Offers are invited in excess of £7,450,000 which shows a net initial yield of 7.02% and a reversionary yield of 7.63% after taking into account standard purchaser’s costs.

VAT VAT will be applicable to the sale price, but our client would welcome a sale by way of a TOGC.

EPCs EPCs for the properties are being organised and will be available upon request.

M25

GATWICK

BRIGHTON

& HOVE

VIEWINGS Strictly by appointment with sole agents Nick Bradbeer 01273 876220 [email protected] Charles Bramly 01273 876219 [email protected]

SUBJECT TO CONTRACT.

THE WATERFRONT, SOVEREIGN HARBOUR TENANCY SCHEDULE

Unit Tenant Use Gross Current Rent Estimated £psf Next Rent Lease Lease Expiry Date Comments Internal Passing as at Rental Value of Review date Length Floor 13/10/2017 the Vacant (Years) Areas (£pa) units (£pa) 1 Marina Bridal Limited Retail 587 15,000 25.55 30/09/2019 5 30/09/2019 Rent Deposit £4,125 Bright Ideas Studio Ltd T/A Administrator for tenant appointed and business sold to 4 Seasons (Eastbourne) 2 Restaurant 502 14,000 27.89 Seasons Ltd who occupy on a 4 month licence from 29/9/2017 Bright Ideas Studio Ltd T/A Administrator for tenant appointed and business sold to 4 Seasons (Eastbourne) 3 Restaurant 1,325 23,856 18.00 Seasons Ltd who occupy on a 4 month licence from 29/9/2017 Bright Ideas Studios Ltd T/A Administrator for tenant appointed and business sold to 4 Seasons (Eastbourne) 4 Restaurant 1,500 37,000 24.67 Seasons/Art Gallery Ltd who occupy on a 4 month licence from 29/9/2017 S Daramola & B Gashi T/A The 5 Restaurant 2,223 65,000 29.24 01/10/2020 15 05/10/2025 Chippy/Gringos 6 The Ranch Ltd T/A Pablos Restaurant 1,871 63,504 33.94 29/05/2018 25 28/05/2028 S Daramola & S Heknoun as Guarantors 7 Vacant Retail 1,039 0 18,000 0.00 N/A Robert Falconer T/A Seamoors 8 Restaurant 1,061 25,428 23.97 16/08/2019 25 15/08/2024 M Venditto, L Venditto & Trinity Street Ltd as Guarantors Wine Bar Ground Floor 9 Bruno Mario Di Lieto Coffee Shop 827 24,531 29.66 01/10/2019 25 30/09/2024 P French & M Berry T/A Simply M Venditto, L Venditto & Italian Way Ltd as Guarantors. Renewal in hand on basis 10 Restaurant 1,072 30,360 28.32 Expired N/A Italian of a new 15 year lease at the current passing rent. P French & M Berry T/A Simply Simply Italian as Guarantor. Renewal in hand on basis of a new 15 year lease at the 11 Restaurant 1,264 28,640 22.66 Expired N/A Italian current passing rent. L Venditto and italian Way as Guarantors. Renewal in hand on basis of a new 15 12 Simply Italian Ltd Restaurant 1,059 27,160 25.65 Expired N/A year lease at the current passing rent. 13 Thai Marina Ltd Restaurant 1,990 45,680 22.95 01/11/2019 25 31/10/2024 S Bhanubandh & P David as Guarantors 14 Waterfront (Eastbourne) Ltd Bar 26,000 3/10/2021 19 02/10/2031 R Slatcher as Guarantor & T/A Garden Bar 4,363 11.92 15 Rakhi Kumar T/A Ganges Restaurant 26,000 4/5/2022 25 02/05/2037 Top Knots Hair Design 16 Hairdresser 1,483 20,171 13.60 30/05/2020 25 29/05/2025 (Eastbourne) Ltd V Dixon and E Dixon T/A 17 Dentist 1,274 21,000 16.48 30/09/2020 15 29/09/2032 Break 30/9/2020 Harbour Orthodontics V Dixon and E Dixon T/A 18 Dentist 922 19,000 20.60 30/09/2020 15 29/09/2032 Break 30/9/2020 Harbour Orthodontics J L Beal & S L Vella-Andrade 19 Beauty Salon 644 13,000 20.19 30/01/2020 15 29/01/2030 Stepped rent to £15,000 in 2020. Rent Deposit. Break Option January 2020 T/A Inner Beauty Retail / 20 Vacant 1,412 0 15,000 0.00 N/A Hairdresser

First First Floor 21 Sovereign Harbour Ltd Office 470 4,700 10.00 3 TBA New 3 year lease to be signed by the vendor. Sovereign Financial Planning 22 Office 326 6,000 18.40 15 30/04/2029 Break option May 2019 & 2024 Ltd 23 Hearing Link Office 463 7,700 16.63 12/09/2018 10 11/09/2024 Break option September 2018 24 Vacant Office 796 0 7,960 0.00 N/A 25 Vacant Office 764 0 7,640 0.00 N/A 26 Bruno Di Lieto Office 618 4,300 6.96 12/09/2018 10 01/09/2024 Break option September 2018 & 2021. Assigned from Hearing Link 27 & HML Andertons Ltd Office 833 9,500 11.40 31/3/2022 10 30/03/2027 Break option March 2022 28

SUB-TOTALS 30,688 £557,530

Bass Taverns Ltd Public House 8,988 Peppercorn 999 27/11/2997

TOTALS 39,676 £557,530

The floor areas in this schedule have been supplied by the vendor and are the areas upon which the service charge contributions are calculated.