INVESTMENT FOR SALE

228 High Street, , EX4 3LR Investment Summary

• Exeter is a Cathedral City with a population of 129,800 and a primary catchment of circa 508,000.

• The city has an affluent catchment and ranks 31st out of the 200 PROMIS centres in terms of the volume of comparison retail spend available in the catchment area.

• Exeter University is a member of the Russell Group with a student population of over 28,000.

• Prime position at the junction of the High Street and Gandy Street.

• Opposite House of Fraser and midway between the Princesshay and Guildhall Shopping Centres.

• Multiple retailers nearby include Marks and Spencer, Lakeland, Urban Outfitters, Tesco Metro, Mountain Warehouse, White Stuff, Burton, Ernest Jones and Vision Express.

• Both Zizzi and Bills have restaurants in Gandy Street.

• Let to the Co-operative Bank by way of an FRI lease expiring on 24 March 2019. Passing rent of £188,500 per annum exc.

• The tenants are not in occupation and there is strong potential for redevelopment of the upper floors for residential use and creating an infill on the second floor, subject to planning.

• Freehold.

• We are seeking offers in excess of £2.05 million. A purchase at this level will reflect a net initial yield of 8.5% after allowance for purchase costs of 6.29%.

228 High Street, Exeter, EX4 3LR Location

The Cathedral City of Exeter has a population of 129,800 and a primary catchment population of circa 508,000. It is the regional and administrative centre for . The City benefits from good communications being served by Junctions, 29, 30 and 31 of the M5 motorway. It is also served by the A389 A377, A30 and A379.

Exeter has a mainline railway station providing regular services to London (with a fastest journey time of 2 hours and 23 minutes), , the Midlands and the north of . Exeter International Airport is 6 miles to the east of the City Centre and provides a range of UK and International flights

Exeter University is a member of the Russell Group of leading research-intensive universities and has over 28,000 students. Major employers in the City include EDF, The Met Office, Flybe, Sitel, The University, British Telecom and Alcoa Howmet.

Situation The subject property is located in a prime position at the junction of the High Street and Gandy Street. It lies directly opposite the large House of Fraser department store and mid-way between the Princesshay Shopping Centre (anchored by a 130,000 sq ft Debenhams) and the John Lewis Department store to the eastern end and the Guildhall Shopping Centre (anchored by Primark, Wilko and Sainsbury’s) and the Marks and Spencer store to the western end.

The adjoining occupiers are Lakeland and Urban Outfitters. Other multiple occupiers close by include Tesco Metro, Mountain Warehouse, White Stuff, Burton, Ernest Jones, Santander and Vision Express. Bills and Zizzi’s have restaurants in Gandy Street. There are a number of other bar and restaurants occupiers close by including Bella Italia, Burger King, Patisserie Valerie, Wagamama, Boston Tea Party and Las Iguanas.

228 High Street, Exeter, EX4 3LR Description The property is of part three/part two storey steel frame construction with brick elevations beneath a flat asphalt covered roof.

The ground floor retail unit is relatively regular in shape. The shop front is set back in line with the two adjoining period properties forming a walkway that wraps round into Gandy Street. It has a generous return frontage and several display windows along the Gandy Street elevation.

The Co-op Bank vacated the property a couple of years ago. A temporary tenant, The Calendar Club, was in occupation of the ground floor only until January 2018.

There is a staircase towards the front of the shop leading to the first floor. The staircase also previously led to the basement but has since been capped so could be re-opened.

The first floor is laid out as offices. On the second floor there are further offices to the front of the building and the lift motor room to the rear. In between is a flat room.

The upper floors were used by the bank for offices and have been vacant since they vacated a couple of years ago. They are in need of refurbishment. Alternatively, they would lend themselves well to a conversion to residential use subject to a suitable change of use.

There is a caged service lift to the rear of the property that has been redundant for some years. There is a wooden staircase wrapping the second floor. around the lift shaft that provides access to the basement, first floor offices and lift plant room and flat roof on

Accommodation Sq ft Sq m

The property provides the following Basement 1,642 152.54 approximate net internal floor areas: Ground Floor sales 2,343 217.66

ITZA 833

First Floor 2,208 205.18

Second Floor 1,453 134.98

Total 7,646 710.36

228 High Street, Exeter, EX4 3LR Property Date Tenant Rent (ITZA)

Exeter Retail Market 205 High Street Aug 2017 Dr Martens £147.50

Demand for presence in Exeter High Street remains strong and the completion of the 530,000 53/54 High Street Sept 2016 Santander £141 sq ft Princesshay Shopping Centre in 2007 enhanced the City as a retail destination. The centre fronts onto the High Street close to the subject property. The City has an affluent catchment 39-40 High Street Sept 2016 Sketchers £145 and ranks 31st out of the 200 PROMIS centres in terms of the volume of comparison retail spend available in the catchment area. 12-13 High Street June 2016 Goldsmiths £180 247/248 High Street Dec 2015 Specsavers £182 Recent lettings in the High Street are included in the table on the right hand side. 11 High Street Sept 2015 Smiggle £183

247 High Street Sept 2015 Pret a Manger £185

Investment Summary We are aware of the following recent investment sales in Exeter City Centre:

Property Date Tenants Leases Price/Yield Comments

229 High St. and 31-33 Gandy Dec Urban Outfitters and Bills Restaurant Urban outfitters until July 2016 and £6.193m/ Urban Outfitters account for 78.9% of rent and front the High Street. Street, Exeter 2017 Bills until Feb 2032 (AWULT of 10 5.30% Their rent equates to an ITZA of £198.50. Adjacent to the subject years) property.

235-240 High St. Exeter July EE (sub-let to Jessops), Saltrock, Virgin EE (sub-let to Jessops), £11.38m/ Parade of 5 shops with offices over. 2017 Media and Office Saltrock, Virgin Media and Office 5.32%

32/35 High St. Exeter Jan House of Fraser Let until 2038 £9.15m/ Opposite the subject property 2017 5%

39/40 High St. and 13 Martins July Sketchers USA Limited 9.3 years to expiry (4.3 years to £3.35m/ 5.25% Lane, Exeter 2016 break)

21-22 Gandy Street, Exeter Aug Zizzi (Restaurant) Let until Nov 2029 £2.85m/ 2017 5.5%

228 High Street, Exeter, EX4 3LR Tenure

The property is freehold

Tenancy

The property is let to Bristol and West Plc by way of a full repairing and insuring lease expiring on 24 March 2019. The passing rent is £188,500 per annum exc. The tenants are not in occupation. This property last traded under the Co-op Bank brand

Covenant Information

We have carried out a credit search on Bristol and West Plc with Creditsafe and obtained the following information (figures in brackets denote the previous year’s accounts):

To 31 December 2016 the business reported a turnover of £3.827 million (£3.865 million), a pre-tax profit of £387,000 (£1.313 million) and shareholders funds of £2.813 million (£2.353 million). Creditsafe give them a rating of 57 out of 100 (low risk), a credit limit of £200,000 and a contract limit of £300,000.

In 1997 Bristol & West demutualised and was sold to Bank of Ireland, becoming a division of the bank, but maintaining its operations and branch network under the Bristol & West brand.

In 2005, Bristol & West sold its savings and investment business, along with its branch network, to the Britannia Building Society. In 2009 the bank merged with Co-operative Bank.

EPC

The property has an EPC rating of D97.

Asking Price

We are seeking offers in excess of £2.05 million. A purchase at this level will reflect a net initial yield of Further Information 8.5% after allowance for purchase costs of 6.29%. David Ferris VAT 0117 338 1817 The property is not registered for VAT and the tax will not therefore be chargeable. [email protected]

30 Queen Square, Bristol, BS1 4ND

228 High Street, Exeter, EX4 3LR