243/247 High Street, Hounslow

INVESTMENT SUMMARY

yy Hounslow catchment population is c. 2,361,000 ranking in the top decile of comparison goods trading locations.

yy 100% prime freehold High Street retail parade investment

yy Located on the prime, pedestrianised High Street, between the two entrances to the Treaty Shopping centre.

yy WAULT of 4.47 years

yy Passing rent of £205,500 pax

yy Potential to convert upper floors to residential subject to planning.

yy We are instructed to seek offers in excess of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 6.32%, after allowing for purchaser’s costs of 6.45%.

Û UXBRIDGE HAYES

M25 SHEPHERD’S LOCATION BUSH

M4 The London Borough of Hounslow is one M4 M4 M4 of the capital’s largest boroughs covering CHISWICK approximately 22 miles. The principal town A4 within the borough is Hounslow which is located approximately 10 miles (16km) to the south west HEATHROW AIRPORT of Central London and 3 miles (4.8km) from M25 A316 Heathrow Airport. A30 RICHMOND HOUNSLOW The town sits less than 0.5 miles south of the Great West Road (A4), providing quick and easy A3 access to the M4 Motorway via junctions 2 & 3, FELTHAM TWICKENHAM giving access to the M25 and national motorway A30 A316 network to the west, and Hammersmith and Belgravia to the east. M25 A3

In terms of transport five major bus routes M3 run through the town centre, providing easy transport links and 24 hours services to Heathrow, Twickenham, Teddington, Kingston University, Hampton and Tolworth, as well as regular services to Isleworth, West Middlesex University Hospital, West Thames College, and Syon Lane.

Hounslow Rail Station also provides services on the Hounslow Loop Line and Waterloo to Chertsey Line, providing six 40 minute services per hour to London Waterloo. There are also three tube stations serving the town, which are Hounslow West, Hounslow Central and Hounslow East all of which are on the Piccadilly line.

DEMOGRAPHIC PROFILE

Hounslow’s catchment encompasses a total population of 2,361,000, ranking in the top decile of comparison goods trading locations. The total population within the Hounslow primary catchment area is 345,000, significantly above the Smaller London Centre average. Hounslow is projected to see significantly above average growth in population over the period 2016-21.

The estimated shopping population of Hounslow is 123,000, which is above the average for the Smaller London Centres. The age profile of the Hounslow primary catchment population includes a particularly high proportion of adults aged 25-44, whereas older working age adults aged 45-64 and the retired aged 65 and over are particularly under-represented within the Hounslow area (Promis, 2017)

Hounslow is a thriving economic hub, with employment levels above the national average (PMA), with particular over-representation in the Professional & Business Services Computing, R&D and Telecoms, and Transport & Distribution businesses. The borough has the second highest concentration of ICT & Digital jobs in London.

RETAILING IN HOUNSLOW

The prime retailing in Hounslow is centred on the partly pedestrianised High Street and the Debenhams anchored Treaty Centre. National multiple retailers represented include H&M, TK Maxx, Primark, Boots and Sports Direct.

This retail offer is further supported by the Legal & General owned Blenheim Centre, anchored by a 6,503 sq m (70,000 sq ft) Asda.

Barratt London and Wilson Bowden Developments have been chosen by the London Borough of Hounslow as it’s’ partner to develop the Hounslow High Street Quarter. The development will consist of a mixed use scheme in the centre of Hounslow and will provide over 134,000 sq ft of commercial floor space comprising retail and restaurant use. This will include a 12 screen IMAX cinema anchoring the western entrance, with 19 retail/café/restaurant units surrounding the square and entrance onto the High Street. 525 private and affordable homes will be provided by Barratt London including a 27-storey residential tower.

The scheme is due to open in late 2019/early 2020 and will be a significant boost to the town centre.

HIGH STREET QUARTER

BLENHEIM CENTRE

GADGET DEPOT

NORTH For Identification purposes only

SITUATION

The subject property is situated in a prime trading location on the pedestrianised High Street, adjacent to Costa Coffee, whilst in close proximity to the entrances to the Treaty Shopping centre.

DESCRIPTION

The property comprises three well configured retail units arranged principally over three floors, providing sales accommodation on ground with additional ancillary accommodation on the first and second floors. The units are serviced from the Treaty centre to the rear.

TENURE

The property is held freehold as 3 separate titles.

THE TREATY TENANCY CENTRE

The property is let in accordance with the tenancy schedule set out below, producing a current rental income of £205,500 pax. All three units are let on effectively Full Repairing and Insuring terms.

There is a licence in place relating to rear rights and services at the Treaty Centre, made between The Mayor and Burgess of the London Borough of Hounslow, Mentionland Limited, Taylor Woodrow Property Company Limited and the Prudential Assurance Company Limited. The current licence fee is £3,534 and is increased annually in line with RPI.

The current net rent receivable is therefore £201,966 pax.

For Identification purposes only

TENANCY SCHEDULE

Tenant Trading Rent Passing Rent £ pa Rental Value Description Areas sq ft sq m Lease Start Expiry Date Break date Comments Name as Review (Zone A/ sq ft) (Zone A/ sq ft)

Ground Floor Sales 1,539 142.98

Ground Floor Storage 155 14.40 Shoe 243 High Zone Shoe Ground Floor ITZA 791.8 units £65,000 £70,100 20/09/2010 19/09/2020 Street Retail Zone First Floor Ancillary 434 40.32 (£78.85) (£85) Limited Second Floor ancillary 435 40.41

Total 2,563 238.1

Ground Floor Sales 1,588 147.52

Ground Floor ITZA 783.75 units Ann 245 High Ann £78,000 £69,300 Summers First Floor Ancillary 478 44.41 08/10/2003 29/09/2018 Street Summers (£95.71) (£85) Ltd Second Floor ancillary 292 27.13

Total 2,358 219.06

Ground Floor Sales 1,155 107.3 There is a basement area Ground Floor ITZA 672.6 units accessed by a hatch. 247 High CEX First Floor Ancillary 917 85.19 £62,500 £62,500 CEX 13/01/2017 12/01/2027 13/01/2022 12/01/2022 (T) Street Limited (£85) (£85) Tenant must Second Floor ancillary 479 44.50 pay penalty of £31,250 if Total 2,551 236.99 break option is exercised Total 7,472 694 £205,500 pa £201,900 pa

COVENANT

Shoe Zone Retail is a footwear retailer in the United Kingdom and Ireland which sells CeX Ltd is a second hand goods chain based in the United Kingdom specialising in shoes at low prices. It has over 500 stores throughout the UK and Ireland and employs technology, computing and video games. It was established in 1992 in London, and over 4,000 people. has since grown to have more than 350 stores in the UK.

The summary accounts information can be set out as follows:- The summary accounts information can be set out as follows:-

01/10/2016 03/10/2015 04/10/2014 30/06/2016 30/06/2015 30/06/2014 Shoe Zone Experian Score CEX Limited Experian Score Retail Limited GBP GBP GBP GBP GBP GBP

Turnover £159,834,000 £166,819,000 £172,861,000 Turnover £141,644,952 £135,787,157 £119,462,711

Pre-tax profit £10,410,000 £12,723,000 £11,677,000 97 Pre-tax profit £1,251,804 £833,137 £137,811 69

Net Worth £30,145,000 £36,809,000 £29,677,000 Net Worth £569,430 £142,390 £173,417

Ann Summers is a British multinational retailer company specialising in lingerie, with over 140 high street stores in the UK, Ireland, and the Channel Islands.

The summary accounts information can be set out as follows:-

25/06/2016 27/06/2015 28/06/2014 AnnSummers Experian Score Limited GBP GBP GBP

Turnover £101,542,868 £104,818,310 £101,212,066

Pre-tax profit £1,041,385 £1,025,990 - £3,928,273 94

Net Worth £46,751,496 £47,844,808 £46,975,132

RENTAL VALUE

The recent letting in the subject block at 247 High Street (CEX) in January 2017, at a rent of £62,500 pa, devalued to reflect a net Zone A rent of c. £81.05 per sq ft.

Savers acquired Unit 1, Cavendish Parade, 147/161 High Street in January 2017 at a rent of £100,000 pa, which reflected a Zone A rent of £83 per sq ft.

We understand that the State Bank of India took a new lease over 196 High Street in 2016, which is believed to break back to £100 Zone A. It is our opinion that immediate rental growth prospects for this location are excellent off the current tone.

It is our opinion that the estimated rental value of the subject property as of today’s date would lie in the region of £201,900 per annum exclusive, which reflects a Zone A rent of £85 per sq ft, applying A/20 to the first floor and A/40 to the second floor.

VAT

The property has been elected for VAT purposes. It is anticipated that the investment sale will be treated as a Transfer of a Going Concern (TOGC).

EPC

An EPC for the property can be provided upon request.

PROPOSAL

We are instructed to seek offers in excess of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT which reflects the following yield profile, net of purchases cost at 6.45%:-

Net Initial yield - 6.32% Reversionary yield - 6.21% Equivalent yield - 6.20% True Equivalent yield - 6.45%

The most salient comparable investment evidence can be set out as follows:-

i) 193-199 High Street, Hounslow Prime freehold retail investment let to Boots and Sports Direct, was purchased by Sports Direct in September 2016 for £8.175m, reflecting a net initial yield of 6.12% and an equivalent yield of 5.75%.

ii) 1-10 Trinity Parade, Hounslow The Freehold parade consisting of six retail units was sold in September 2016 for £7.5m reflecting a net initial yield of 6.97% and an equivalent yield of approximately 6.25%.

iii) 103/105, High Street Bromley Freehold retail investment let to the Gap on a lease to expire December 2023 with a tenant break clause in December 2019, sold in May 2017 for £2.775m, which reflected a net initial yield of 5.76% and an equivalent yield of 6.15%.

For further information, please contact the sale agents, Jackson Criss:

Philip Hay Brook Wannop 020 7637 7100 020 7637 7100 [email protected] [email protected]

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact

DESIGNED BY TCC but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0105. June 2017.

243/247 HIGH STREET, HOUNSLOW UNBROKEN RETAIL PARADE INVESTMENT OPPORTUNITY