KINGSTHORPE · NN2 7BD

WELL LOCATED FOODSTORE AND CONVENIENCE RETAIL INVESTMENT INVESTMENT SUMMARY We have been instructed to seek offers in the region of £12,500,000, subject to contract and exclusive of VAT. A purchase at this level would reflect an initial yield of 6.45% and a reversionary yield of 7.36% on letting the vacant units, after allowing for standard purchaser’s costs of 6.8%.

• Well located foodstore anchored investment • Prominent roadside location • 3.3 acre site with 220 car spaces • Freehold • Rebased foodtore (£17.00 to £13.60 psf) • 84% of income secured to strong covenants • Low global rents 2 • Sustainable income with longer term growth potential LOCATION & COMMUNICATIONS

A1101

A34 A6 7 la-Zouch A60 A606 6 Coalville A1 A1 Cannock 22 A50 6 12 11 A46 A1

11 A606 A113 M54 3 A112 2 1 Tamworth M42 9 A47 2 LOCATION & COMMUNICATIONS A600 A4 10 21 7 A47 TON 10 Walsall M69 Wigston A43 Peterborough 9 Hinckley March A6 8 7 Northampton is a strong affluent County Town located in the heart of 9 2 M6 Nuneaton 1 Market 1 6 5 8 Corby Harborough 7 41 68 miles north of , 15 miles north of Milton 2Keynes, A42 A605 A444 M1 A1 BIRMINGHAM Bedwoth A6

3 11 30 miles south of Leicester and 28 miles east of Coventry. Birmingham 20 A4304 Stourbridge 3 27) 6 6 2 (A4 Solihull A45 A1 Ely M5 M42 M6 1 5 19 A508 Kettering COVENTRY A14 A43 4 4 The town has excellent communications as it lies only 5 miles north of A1 Huntingdon 2 Rugby 18 4 1 3 A45 M42 2 A46 A45 A448 16 St Ives the M1 (Jct 15-16) and is also well connected by the A43 which runs M45 17 A10 Wellingborough M40 A45 Rushden south to the M40. Leamington Spa A1 5 A5 4 A6 RedditchA441 A435 Warwick NORTHAMPTON 15 14 M5 13 A45 A428 14 Stratford Daventry 16 St Neots 13 A428 Northampton train station provides a fast and regular train6 service to upon Avon 12 A46 12 15 8 9 2 2 A43 11 London and Birmingham with a fastest journey time of 557 minutes and Bedford A4 A4 M1 M11 63 minutes respectively. A508 A509 A46 A5 10 Newport Biggleswade A10 A44 A43 Pagnell A6 Evesham A505 9 11 Banbury 14 A1 Royston Kingsthorpe is an affluent suburb of Northampton that lies 3 miles to the A4 Milton 8 2 1 A44 2 13 Keynes 10 A505 north of the town centre and forms the northern outskirts of the town. A46 Letchworth 9 3 Tewkesbury 9 Kingsthorpe is characterised by low density housing with numerous green A43 Leighton 12 M5 10 A5 Hitchin A44 Buzzard 8 spaces, such as Thornton Park, Kingsthorpe Recreation Ground, Bradlaugh10 M1 M40 Gloucestershire Luton A1(M) Stevenage 11 7 A60 Fields and Kingsthorpe Golf Club. 11 Bicester 8 A41 2 Gloucester 9 Dunstable 10 A10 6 A34 Luton A43 Kidlington Aylesbury 6 Hertford 9 Aiport Ware 9 A40 A41 2 Witney Hemel 5 M11 7 A4 A40 A41Hempstead St 4 OXFORD 8 Hatfield Thame A413 Albans Stroud A40 M10 3 7 7 Hoddesdon 8 A418 Berkhamsted 1 2

A419 7 A 22 4

Cichester 0

1 20 0 Amersham 24 M25 25 26 20 19 5 A4 Abingdon High 6 18 Enfield 5 9 5 Wycombe 2 17 Watford 4 Barnet A4 A419 M40 M11 4 A12 Didcot 3 M1 2 A406 4 Marlow 2 Harrow A40 1 A41 Swindon 1 Maidenhead A406 LONDON 16 Henley- Slough Uxbridge A13 M4 15 on-Thames 17 7 6 4 1 A34 3 2

14 Chippenham A205 14 13 M4 Reading 13 A20 A2 12 Bracknell Kingston DEMOGRAPHICS

Northampton has a population of 497,269 within a 30 minute drivetime and this DEMOGRAPHICS is likely to increase significantly with the various housing developments planned for the area. Most notably, Dallington Grange lies 1 mile to the west and has outline Northampton has developed from it’s shoe manufacturing past into one of permission for 3,000 homes and Buckton Fields just to the north of Kingsthorpe. the UK’s leading distribution hubs, due to it’s central location in the country and the fact that 90% of can be accessed within a 4 hour drive time, Northampton has an affluent catchment with 52% of the catchment in ABC1 including the UK’s main ports that serve mainland Europe. The town is also socio-demographic group. 74% of the catchment is economically active (70% a strong financial centre with Barclaycard and Nationwide both having their UK) and it has a high level of families with dependent children (21% vs UK 19%) headquarters in the town. Other major occupiers include Avon Products, (SOURCE CACI). Panasonic, Travis Perkins, Coca-Cola / Schweppes, National Grid, Texas Instruments and Carlsberg. Companies that have their distributions Drivetime 10 minute 20 minute 30 minute hubs here include Amazon, Clipper, Sainsburys, and Royal Mail. 4 Population 148,460 280,319 497,269 Households 62,861 116,456 207,456 A508 NORTHAMPTON FOODSTORE PROVISION IN

Kingsthorpe SPP INNEY HILLLL Centre

DALLINGGTTOO N

ABBBIINGTTOONN

Northampton A45

A5076 A428

A508

WEW ESST HUNSUN BUB RYR Y FOODSTORE PROVISION The main foodstore provision in KingsthorpeW isOO providedTTO N by M1 Waitrose and the adjoining , which provides a quality and discount offer respectively.

In addition, there is an just to the south on the A508 Kingsthrope Road and a Morrisons on A5128 Kettering Road to the east.

We are therefore of the opinion that the area is ‘right-sized’ 5 in terms of foodstore provision and Waitrose are in a good position providing the only quality offer. DESCRIPTION & ACCOMMODATION

ACCOMMODATION The property comprises a total floor area of 62,653 sq ft (5,821 sq m) on a gross internal basis. We have been provided with individual floor areas which we set out in the following tenancy schedule.

The site comprises 3.3 acres.

DESCRIPTION The property comprises a 44,121 sq ft (4,099 sq m) supermarket with 8 small shops located either side of the entrance, which forms an attractive retail parade under a modern canopy. The supermarket has a ground floor of 28,237 sq ft (2,623 sq m) and a first floor of 15,884 sq ft (1,476 sq m).The first floor of the supermarket comprises storage and ancillary areas such as staff changing, canteen, offices and WCs. Loading is provided at the rear with 2 dock levellers and goods lifts to access the first floor storage. Waitrose have also recently started ‘Drive through click and collect’. Units 12, 13 and 14 also have rear servicing facilities.

Waitrose’s opening times are as follows: 2 hour free car parking is provided to the front for shoppers 6 with 195 marked car spaces and there is additional staff Monday to Friday 8am to 9pm parking at the rear (25 spaces). Saturday 8am to 9pm Sunday 10am to 4pm TENURE & TENANCIES TENANCIES The property is let on effective FRI leases with a service charge. The 2020/21 service charge budget is £88,150 / £1.40 psf.

Unit Tenant Area (sq ft GIA) Lease Start Lease Expiry Rent Review Rent Rent psf Comments Rent review capped at Supermarket Waitrose Ltd 44,121 24/06/2005 23/12/2029 25/12/2024 £600,000 £13.60 £662,448 pa (2% pa comp). O/S rent free will be topped up. Astrapet Ltd Unit A 3,326 22/09/2014 21/09/2024 £53,000 £15.94 t/a Pet Superstore Unit B Costa Ltd 1,260 16/12/2015 15/12/2025 16/12/2020 £35,000 £27.77 TOB 16/12/21 Shortfalls £11,668. Offer Unit C Vacant 1,024 received from Card Factory Optics 2000 Ltd Unit D 809 24/06/2004 23/06/2024 £21,650 £26.76 t/a Kingsthorpe Eyecare Shortfalls £16,951, Unit E Vacant 948 Mezzanine level 912 sq ft Shortfalls £2,858. In rates holiday Unit F Vacant 2,035 at present. RP = £18,837 Martin Retail Group Ltd Units 11/12 3,143 11/02/2014 10/02/2024 £51,500 £16.39 t/a Martin’s Wallgreen Ltd Unit 13 2,138 06/09/2015 05/09/2025 06/09/2020 £65,000 £30.40 t/a Touchwood Pharmacy Unit 14 Heron Foods Ltd 3,849 04/07/2017 03/07/2027 04/07/2022 £66,500 £17.28 TOB 4/7/22 Elec Sub Stn East Mids Elec 08/01/2004 07/01/2073 TOTAL 62,653 £892,650

The net rent after allowing for shortfalls on the vacant units is £861,173 per annum.

TENURE The majority of the property is held freehold.

There is a small parcel of land adjacent to the northern car park entrance that is held long leasehold from Northamptonshire County Council at a peppercorn. This land 7 was originally held for road widening purposes but is now surplus to requirements and could be bought back in. Further information available on request. Northampton - Kingsthorpe PLANNING

PLANNING The property was granted planning permission on 24 May 1970 for the ‘erection of a shopping centre and parking area’. The property lies within Kingsthorpe District Centre as defined in Northampton Borough Council Local Plan. As such we understand that the property has an A1 retail permission.

Further information available on request.

8

Experian Goad Plan Created: 14/08/2020 50 metres Created By: Kitchen LaFrenais Morgan For more information on our products and services: Copyright and confidentiality Experian, 2020. © Crown www.experian.co.uk/goad | [email protected] | 0845 601 copyright and database rights 2020. OS 100019885 6011 COVENANT INFORMATION

COVENANT INFORMATION We set out below the latest covenant information on the tenants below : Martin Retail Group PLC Martins Newsagents are part of McColl’s Retail Group PLC who are Waitrose Ltd listed in the UK with an approximate market capitalisation of £50 million. Waitrose are the UK’s leading high quality supermarket operator with a The company operates 1,400 convenience stores across the UK. 5% share of the UK Grocery market and 349 stores nationwide.

Year Ending 27/01/18 26/01/19 25/01/20 Year Ending 27/11/16 26/01/19 25/01/20

Turnover £6,226,100,000 £6,296,700,000 £6,235,000,000 Turnover £294,305,000 £287,242,000 £277,982,000

Pre-Tax Profit £100,500,000 £84,800,000 £44,900,000 Pre-Tax Profit £6,316,000 £6,209,000 (£2,713,000)

Net Worth £718,000,000 £763,800,000 £790,100,000 Net Worth £58,701,000 £65,946,000 £64,939,000

Heron Foods Ltd Costa Limited Heron Foods Ltd are well known UK frozen food / discount retailer Costa Coffee is the largest coffee shop operator in the UK with over that operate in the Midlands and the North of England with 290 stores 2,000 outlets. In was recently bought by Coca Cola in a £3.9 Bn deal. nationwide. They are owned by the £4Bn B&M Group.

Year Ending 02/03/17 01/03/18 28/02/19 Year Ending 27/11/16 26/01/19 25/01/20

Turnover £886,336,000 £951,684,000 £1,344,138,000 Turnover £274,440,000 £393,820,000 £372,077,000

Pre-Tax Profit £103,387,000 £105,215,000 £139,523,000 Pre-Tax Profit £8,727,000 £8,078,000 £7,457,000

Net Worth £616,894,000 £521,738,000 £422,802,000 Net Worth £34,544,000 £41,865,000 £47,503,000

The remaining tenants, Astrapet (Pet Superstore), Optics 2000 These companies represent 84% of the income and provide a strong (Kingsthorpe Eye Care) and Wallgreens (Touchwood Pharmacy) are backbone to the centre. 9 smaller companies that provide a local convenience offer. FOODSTORE MARKET

FOODSTORE MARKET Over the ‘lockdown’ period (12 weeks to 12 July 2020) take-home grocery sales rose 16.9%, which is the fastest growth since 1994. Total sales reached a record £31.6 Bn as restaurants were closed and people worked (and ate) more from home. The figures are likely to continue to be robust as we emerge from lockdown into the new norm where people enjoy greater work flexibility. Waitrose’s sales increased by 10.9% over this period and now has a market share of approximately 5%.

The latest rental evidence comes from the Waitrose sale and leasebacks where rents were agreed in the region of £17.50 to £18.50 psf. The recent regear of the subject property at £13.60 psf is of course reflective of current market conditions and the FOODSTORE INVESTMENT MARKET premium required to commit to a longer lease, but this level does provide an opportunity for future rental During these unprecedented times of forced ‘lockdown’, the foodstore market has shown growth and an economic basis from which Waitrose exceptional resilience due to it’s essential nature and ability to trade throughout the period. can trade profitably. In addition to this other ‘essential services’ such as pharmacies and pet shops have also been ‘lockdown winners’. The smaller retail units are let at £16-£30 psf and the current negotiations with Card Factory at £25,000 / This strong trading combined with a business rates holiday have seen most foodstores’ P&Ls £24 psf demonstrate that these units are broadly rack- improve significantly. Against this backdrop we have seen a strong investment market for rented and the low global rents are affordable for these foodstore investments with £500 million of transactions for the half year Jan to June 2020. 10 convenience retailers. VAT PRICING The property is elected for VAT. We have been instructed to seek offers in the region of It is, however, intended for the £12,500,000, subject to contract and exclusive of VAT. transaction to be concluded by way of a ‘TOGC’. A purchase at this level would reflect an initial yield of 6.45% and a reversionary yield of 7.36% on letting the vacant units, after allowing EPC for standard purchaser’s costs of 6.8%. Energy Performance Certificates have been produced for the property, which can be provided on request.

AML / KYC In order to comply with Anti- Money Laundering legislation the purchaser will be required to provide satisfactory identification documentation to the vendor and their agents.

For further information please do not hesitate to contact:

Rob Dales Mark Bennett Will Andrews 33 Foley Street [email protected] [email protected] [email protected] London 11 07740 535395 07795 010198 07970 467505 W1W 7TL

MISREPRESENTATION ACT: KLM Retail, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (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 as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by KLM Retail, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of KLM Retail or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to KLM Retail include any joint agents acting with KLM Retail. Designed by BRAND+OUTLINES Ltd. 2020