Asda Dock Road, Gosport, Po12 1Sh

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DOCK ROAD, GOSPORT, PO12 1SH ASDA ASDA Supermarket Ground Lease Investment Opportunity with 84 years unexpired ASDA DOCK ROAD, GOSPORT, PO12 1SH

INVESTMENT CONSIDERATIONS ■■ Rare opportunity to acquire a long ■■ Predominantly let to Asda Stores Ltd ■■ Guide Price of £5,250,000 (Five dated ground lease to Asda Stores Ltd on a 125 year ground lease from Million, Two Hundred and Fifty 24 June 1975 on full repairing and Thousand Pounds) reflecting a net ■■ Freehold insuring terms at a current rent initial yield of 4.50% net of purchaser’s ■■ Total site area of 1.74 hectares (4.8 acres) of £249,850 pa (84 years unexpired) costs at 5.75%. ASDA Supermarket Ground Lease Investment Opportunity

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Walpole Rd alpole 333 Soth S B3 treet LOCATION ar d oa e Gosport is a borough town located on the south coast Communications are good with the town being to S i l

t of England approximately 3.2 km (2 miles) south west located on the A32 which in turn links the ee tr o S a of Portsmouth, 8.0 km (5 miles) south east of Fareham town with the M27 and the national motorway th d age o D hor Roa S he Anc ry d o T and 24.1 km (15 miles) south east of Southampton. network. Portsmouth Harbour station is u ry a B 3 c B3333 o 3 s a W d 3 l

3 a o B S o r accessed via ferry from Gosport providing K h d o e a The town has a population of 82,622 (2011 Census) s M a n f t o t o d o si s c l a regular direct services to London Waterloo with A e bu P n k d s and lies on a peninsula on the western side of r l g i v w R n r t c er o y d o e n r R a fastest journey time of 1 hour 39 minutes. A t h R o Portsmouth harbour which is linked via pedestrian l f ranorne oad r a R oa e o d d o a

Southampton International airport is located a d S d ferry that runs all day (journey time 3 minutes). There t d are 341,827 people living within a 5 mile radius of the 32.2 km (20 miles) to the north west. ayfield oad Dolm property. an oad

ar oad ASDA DOCK ROAD, GOSPORT, PO12 1SH

ASDA Gosport

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1 4 SITUATION

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6 D 4 The property is situated within the Cranbourne Industrial Estate

1 K 8 with access to the site coming from the eastern side of Dock Road.

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A The surrounding area is a mixture of both industrial and residential

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4 5 uses. Nearby occupiers include Auto Tyre Centre, Halfords, Iceland

1 4 and Waitrose. 1 2 2 6 DESCRIPTION & ACCOMMODATION The property comprises a site of approximately 1.74 hectares (4.8 acres) on which stands a supermarket developed in the 1970s together with associated car parking. The property provides the following areas (as agreed at the last rent review):

Area (Sqm) Area (Sq ft) Garage

Superstore Main Superstore (GIA) 4,456.2 47,967 Foyer 368.7 3,969

Covered Unloading Area 977.5 10,522

Works The property has been extended by the tenant over the term

r a of the lease to comprise a circa 70,000 sq ft supermarket g

l S with car parking for approximately 275 cars on site. u

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3.7m

KEY:CR A nNB OASDAURNE RO A Dn Car Park Land n Right of Way 1

TENURE EPC VAT Freehold An energy performance certificate We understand the property (EPC) is available upon request. is not elected for VAT.

TENANCY COVENANT The property is held via three leases: Asda was founded in 1949 and became a subsidiary of Wal-Mart, the world’s largest retailer in 1999. Asda are one of the big four UK supermarket chains that 1. The main site is let by way of a 125 year ground lease from 24 dominate the UK grocery market. Wal-Mart, who are a quoted company on the US June 1975 on full repairing and insuring terms to Asda Stores stock market, currently have a market capitalisation in the order of $200 billion. Ltd at a passing rent of £233,000 pa (84 years unexpired). The rent is subject to 5 yearly rent reviews which is reviewed to Asda Stores Limited is the main trading company of Asda being a wholly owned 35.74% of the market rent. The 2015 rent review is outstanding. subsidiary of Wal-Mart Stores Inc. The company currently has a D&B rating of 2. The additional car parking land is let by way of a 99 year lease 5A1 representing minimal risk of business failure. The latest financial figures from 24 June 1977 at a passing rent of £12,750 pa. available for the tenant are shown below: The rent is subject to 5 yearly open market rent reviews. Year Ending Year Ending Year Ending 31 Dec 2014 31 Dec 2013 31 Dec 2012 3. The right of way is let by way of a 96 year lease from 24/06/1980 at a passing rent of £4,100 pa. Sales Turnover £23,156,700,000 £23,299,400,000 £22,813,900,000 The rent is subject to 5 yearly rent reviews which is reviewed Profit/(Loss) Before Taxes £609,900,000 £605,100,000 £483,500,000 to 28% of the ground rent of the adjoining car park land. Tangible Net Worth £5,596,800,000 £5,349,000,000 £5,090,400,000 PROPOSAL For further information or to make arrangements for viewing please contact: We are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and Fifty Thousand Jonathan Butcher 020 7543 6755 Pounds), which reflects a net initial yield of approximately4.50% after purchaser’s costs of 5.8%. [email protected] David Hammond 020 7543 6721 Please note there is a pre-emption agreement in favour of the tenant - please refer to Allsop for further information. [email protected]

We would highlight that the property is to be offered at auction (unless sold prior) Alex Butler 020 7543 6722 on 21 March 2016, at the Berkeley Hotel, Wilton Place, London, SW1X 7RL. [email protected] Further information can be downloaded at www.allsop.co.uk www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 02.16