NORWICH HOUSE 14-15 NORTH STREET, GUILDFORD

Mixed use investment with exciting development potential NORWICH HOUSE 14-15 North Street, Guildford INVESTMENT SUMMARY

• Guildford is the principal administrative and commercial centre for Surrey and one of the premier retailing locations in the UK.

• The catchment population is one of the most affluent in the UK, ranking 1st of the PROMIS centres on the PMA Affluence Indicator.

• Guildford is a flourishing market town and attracts some of the highest consumer spending per capita nationally. Furthermore, Guildford’s retail expenditure is forecast to grow by 5.70% pa over the period 2018-2023 (PMA).

• North Street benefits from strong levels of footfall and offers an attractive rental discount to High Street (c.£300 ZA) and The Friary Guildford (c.£200 ZA plus service charge).

• The property is situated in a highly prominent position on North Street directly opposite Market Street, which provides a well-trodden cut-through to the pedestrianised High Street.

• The 16,982 sq ft property provides two modern retail units with separate self-contained offices above, accessed via Leapale Road.

• 76% of income is secured against the strong brands of Poundland Limited and C.E.X. Limited.

• Freehold.

• The upper floors provide an exciting development opportunity for the purchaser with the ability to have vacant possession by 03/2022.

• We are instructed to seek offers in excess of £7,800,000 (Seven Million Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this price would reflect an attractive Net Initial Yield of 6.15% and a capital value of £459 per sq ft, assuming standard purchaser’s costs of 6.67%.

02 M1 Hemel 4 Hempstead St Hatfield Harlow 8 Albans 3 Hoddesdon Thame Berkhamsted 7 7 2 Oxford 8 1 7 22 20 Amersham 24 M25 25 26 19 5 Abingdon Faringdon 6 18 5 5 Chigwell Brentwood 17 4 Rickmansworth 28 M40 Beaconsfield M11 4 M12 NORWICH HOUSE Didcot 3 4 2 Wantage 29 Marlow Harrow 1 1 14-15 North Street, Guildford Swindon M25 Uxbridge A40 CITY Henley-on-Thames Maidenhead Slough 7 30 6 Woolwich 4 3 2 1 A4 LONDON 31 Richmond Tilbury Windsor 14 Reading M4 HEATHROW Dartford Gravesend 13 14 13 A20 2 12 A24 10 Staines 1 Kingston 11 Bracknell Swanley Hungerford upon Thames Newbury Croydon 11 M20 Sutton A23 4 3 A24 Camberley M25 Epsom LOCATION M25 2 4 10 3 Kingsclere 4 Woking 9 M26 9 5 M3 Leatherhead 7 A3 M25 Guildford is the principal administrative and commercial centre for Surrey Basingstoke 5 8 6 6 and one of the premier retailing locations in the UK. The town is located Aldershot Dorking Redhill Oxted Whitchurch Reigate Andover 7 Farnham approximately 27 miles southwest of London, adjacent to the Surrey Hills Area M23 Tonbridge of Outstanding National Beauty. 8 Godalming GUILDFORD GATWICK 9 M3 Alton The town has excellent communications with dual carriageway access via Crawley the A3 to the M25 (8 miles to the north) and the South Coast (32 miles to the New Alresford Haslemere 11 south). There are two railway stations offering direct and frequent rail services Liphook Horsham Crowborough to London Waterloo (37 minutes), London Victoria (47 minutes), Portsmouth, 11 Billingshurst Haywards Reading and Gatwick. Heathrow and Gatwick Airports are within a 25 minute Petersfield Heath Romsey Midhurst 12 Uckfield drive time and offer both domestic and international flights. 13 Eastleigh

DEMOGRAPHICS

Guildford boasts 235,000 persons within its Primary Retail Market Area and an estimated shopping population of 212,000 persons. The catchment population is one of the most affluent in the UK, ranking 1st on the PMA Affluence Indicator. 70% of the population are categorised within the most affluent ABC1 social groups and average house prices are twice the national average. In addition, unemployment in Guildford is just 2.4% compared to a national average of 4.2%.

The town benefits from 4 million tourist visits per annum generating £330m of additional spend. Furthermore, there is a significant student population with the University of Surrey accommodating some 16,000 students. Guildford is also a popular commuter town with over 7.95 million people using the principal station in 2017-2018, making it the busiest station in Surrey. The catchment population is one of the most affluent in the UK, ranking 1st on the PMA Affluence Indicator.

03 NORWICH HOUSE 14-15 North Street, Guildford

GUILDFORD RETAIL MARKET

Guildford is a flourishing market town and attracts some of the highest consumer spending in the South East, with retail expenditure in Guildford town centre expected to grow by 5.70% pa over the period 2018-2023 (PMA). The retail offer in Guildford is excellent with the town regarded as the luxury shopping capital of the UK, outside of Central London. Guildford has exceptionally strong occupational demand and it is often the first location in which retailers seek to establish representation having traded successfully in Central London.

The prime retail offer within Guildford is the pedestrianised section of the High Street, North Street and The Friary Guildford. Key multiple retailers on the High Street include M&S, Boots, Next and Sainsbury’s, as well as aspirational GUILDFORD retailers such as Hugo Boss, Massimo Dutti, Joules, Ted Baker, White Stuff OFFICE MARKET and Cos. The Friary Guildford is the principal shopping centre in the town and anchored by Primark, Zara, River Island, Superdry and Urban Outfitters. The Guildford is a thriving commercial centre that has recent development of Tunsgate Quarter has further improved Guildford’s retail developed into a strong and well-established office offer. Tenants include The Ivy, Oka, Cosy Club, Nespresso, Bobbi Brown, Loaf market. The town’s skilled labour force, working and Pho. environment and excellent transport links to Central North Street is strategically located between High Street and The Friary London have led to robust occupier demand from a Guildford, with North Street and High Street being connected via multiple number of national and international occupiers. linking streets. The linking streets provide a good pedestrian flow and house Grade A town centre availability is limited with it key tenants such as French Connection, Costa, Reiss and Fat Face. North currently standing at just 1% of the total office stock for Street benefits from strong levels of footfall and offers an attractive rental both in and out of town. Strong occupational demand discount to High Street (c.£300 ZA) and The Friary Centre (c.£200 ZA plus and limited Grade A stock within the town centre has service charge). Retailers represented on North Street include M&S, House of provided strong rental growth in recent years with prime Fraser, JD Sports, Harris & Hoole, HSBC and Barclays. rents currently standing at £33.50 psf. We therefore The key scheme in the development pipeline for Guildford has been the expect a light refurbishment of the offices here would proposed North Street redevelopment. We understand that M&G Real Estate provide rental growth. and Guildford Borough Council intend to work together to implement a cohesive redevelopment for this part of the town centre which is earmarked for both the extension of The Friary Guildford and a redevelopment at the lower end of North Street. Whilst the extension is on hold for the time being, Guildford is a strong and well-established we believe any redevelopment would strengthen North Street and the subject office market in the South East pitch.

04 Guildford

URBAN OUTFITTERS

05 Experian Goad Plan Created: 22/01/2019 50 metres Created By: Knight Frank Copyright and confidentiality Experian, 2017. © Crown copyright and database For more information on our products and services: rights 2017. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 NORWICH HOUSE 14-15 North Street Guildford, GU1 4AF

SITUATION DESCRIPTION The property is situated in a highly prominent position on North Street, The subject property provides two retail units with separate self-contained offices above, opposite House of Fraser and Market Street and benefits from a side return accessed via Leapale Road. 14 North Street (CEX) provides a ground floor retail unit with along Leapale Road. Market Street provides a well-trodden cut-through to sales and rear ancillary accommodation. 15 North Street (Poundland) provides a ground floor the pedestrianised High Street. Nearby retailers include Caffé Nero, French retail unit with first floor ancillary space. To the rear of 14 North Street is a shared loading bay Connection, Decathlon, HSBC and Barclays. accessed via Leapale Road, and a 64 space Council owned car park.

The offices are arranged over three floors providing a total of 7,664 sq ft of multi let accommodation that are accessed by a lift and staircase. The property provides two well configured retail units with separate TENURE self-contained offices above Freehold. 06 NORWICH HOUSE 14-15 North Street, Guildford TENANCIES

Address Tenant Areas Lease From Lease To Next Rent Rent pa Insurance Rates Service Total Comments Review (ZA/£psf) Charge Landlord’s Shortfall

14 North C.E.X. Ground Sales 1,911 sq ft 20/07/2012 19/07/2022 - £150,000 Rent recently increased at rent review Street Limited ITZA 1,514 units (£123.50 ZA) – increase agreed between the parties in February 2019. Analysis reflects 20% discount for frontage to depth. EPC rating C64.

15 North Poundland Ground Sales 4,332 sq ft 27/06/2016 26/06/2026 27/06/2021 £260,000 6 months rent free on 2016 renewal. EPC Street Limited ITZA 1,610.5 units (£147.50 ZA) rating C72. First Floor 3,075 sq ft Ancillary

1st Floor Red Hot Yoga First Floor 1,852 sq ft 14/09/2010 13/09/2020 - £33,000 Rent deposit of £16,450. Additional rent Limited (£17.18 psf) deposit (security for reinstatement of heating works) of £5,934. Inside the 1954 Act. EPC rating C75.

2nd Floor Red Hot Yoga Second Floor 3,147 sq ft 27/08/2013 13/09/2020 27/08/2018 £31,470 Outside the 1954 Act. Rent deposit of Limited (£10.00 psf) £9,441. EPC rating C75.

3rd Floor NGM Surveys Third Floor 495 sq ft 17/12/2018 16/12/2021 - £14,500 £24.95 - £6,010.43 £6,035.38 Rent inclusive of insurance and (Suite 1) LLP (£29.29 psf) service charge. Outside of the 1954 Act. Rent deposit of £2,646. EPC rating E102.

3rd Floor Vacant Third Floor 366 sq ft - - - £10,614 - £2,116.80 £4,593.96 £6,710.76 Rental guarantee provided. (Suite 2) (£29.00 psf) EPC rating E117. 12 month rental guarantee provided.

3rd Floor Global Tax Third Floor 1,248 sq ft 01/08/2017 31/07/2021 - £34,000 £62.83 - £15,581.18 £15,644.01 Rent inclusive of insurance and (Suite 3,4 Network Ltd (£27.24 psf) service charge. & 5) Outside of the 1954 Act. EPC rating D97 & E116.

3rd Floor Cooper and Third Floor 556 sq ft 26/03/2019 25/03/2022 - £16,000 £29.57 £2,995.10 £6,941.98 £9,966.65 Tenant break rights on 26/03/20 and (Suite 6) Withycombe (£28.78 psf) 26/03/21 on giving 3 months notice. Limited Outside 1954 Act. Rent inclusive of insurance, rates and service charge. Rent deposit of £4,260. EPC rating D97.

Total (Gross) 16,982 sq ft £549,584 £38,356.80

Total (Net) £511,227.20

07 NORWICH HOUSE 14-15 North Street, Guildford COVENANTS

Tenant Turnover Profit (Loss) Before Tax Net Tangible Assets (Liabilities) % of Total Income

F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E. F.Y.E.

Poundland Limited 01/10/2017 27/03/2016 29/03/2015 01/10/2017 27/03/2016 29/03/2015 01/10/2017 27/03/2016 29/03/2015 48%

£2,245,804,000 £1,214,818,000 £1,111,526,000 -£127,838,000 £34,653,000 £45,992,000 -£5,437,000 £46,687,000 £101,927,000

C.E.X. Limited 30/06/2017 30/06/2016 30/06/2015 30/06/2017 30/06/2016 30/06/2015 30/06/2017 30/06/2016 30/06/2015 28%

£146,318,189 £141,644,952 £135,787,157 £3,008,897 £1,251,804 £833,137 £8,812,086 £6,347,455 £5,541,783

Red Hot Yoga 30/04/2018 30/04/2017 30/04/2016 30/04/2018 30/04/2017 30/04/2016 30/04/2018 30/04/2017 30/04/2016 12%

£378,482 £329,128 £346,037 -£8,732 -£68,936 -£31,914 -£252,572 -£243,840 -£174,904

Global Tax Network Ltd 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 6%

------£183,471 £160,235 £140,261

NGM Surveys LLP 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 31/03/2018 31/03/2017 31/03/2016 3%

£305,759 £340,477 - £53,023 £37,932 - £13,706 £22,862 £68,727

Cooper and Withycombe 31/12/2017 31/12/2016 31/12/2015 31/12/2017 31/12/2016 31/12/2015 31/12/2017 31/12/2016 31/12/2015 3% Limited

------£56,941 £79,027 £61,070

08 PROPOSED FIRST NORWICH HOUSE FLOOR 14-15 North Street, Guildford

RESIDENTIAL DEVELOPMENT OPPORTUNITY

Potential to reorganise core N Guildford has a buoyant residential market underpinned by its 0 2 8m APPROXIMATE excellent local schooling, strong transport links, extensive amenities Scale 1:200 NORTH and charming town centre. Current prime residential values are 1:200 estimated at £525 - £550 per sq ft and offer a conservative base for future growth.

The upper floors provide an excellent opportunity for a purchaser to secure a change of use (subject to planning) and convert/extend the offices as residential accommodation. A feasibility study has been undertaken, which highlights the potential for up to 24 flats, as per the adjacent plans. Further information is available upon request.

PROPOSED NUMBER OF APARTMENTS & AREAS

Unit No. Style Area (Sq M) Area (Sq Ft) Unit No. Style Area (Sq M) Area (Sq Ft)

Unit 1 1 Bed 57 616 Unit 13 Studio 40 430

Unit 2 1 Bed 57 616 Unit 14 2 Bed 71 764

Unit 3 1 Bed 57 616 Unit 15 1 Bed 57 616

Unit 4 2 Bed 80 861 Unit 16 1 Bed 57 616 Unit 5 Studio 40 430 Unit 17 1 Bed 57 616

Unit 6 Studio 40 430 Unit 18 2 Bed 80 861

Unit 7 2 Bed 71 764 Unit 19 Studio 40 430

Unit 8 1 Bed 57 616 Unit 20 Studio 40 430

Unit 9 1 Bed 57 616 Unit 21 2 Bed 71 764

Unit 10 1 Bed 57 616 Unit 22 2 Bed 92 990 (includes corridor) Unit 11 2 Bed 80 861 Unit 23 1 Bed 50 538 Unit 12 Studio 40 430 Unit 24 2 Bed 77 828 09 NORWICH HOUSE 14-15 North Street, Guildford

VAT

The property is elected for VAT and it is anticipated that the sale will be treated as a TOGC.

EPC

Energy Performance Certificate ratings are included in the tenancy schedule on page 7.

PROPOSAL

We are instructed to seek offers in excess of £7,800,000 (Seven Million Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this price would reflect an attractiveNet Initial Yield of 6.15% and a capital value of £459 per sq ft, assuming standard purchaser’s costs of 6.67%.

CONTACT

Alastair Bird [email protected] T: 020 7861 1232 M: 07768 257 316

Sam Waterworth IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements [email protected] by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, T: 020 3909 6821 its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any M: 07801 657 744 information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that Tim Traynor any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or Guildford Residential Development in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered [email protected] number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of T: 0148 361 7929 members’ names. April 2019. Designed and produced by Creativeworld. Tel: 01282 858200. M: 07970 829 819 10