1 STAINBECK LANE , LS7 3PJ

PRIME LONG LET SUPERMARKET INVESTMENT WITH UNCAPPED RPI LINKED RENT REVIEWS 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

INVESTMENT CONSIDERATION zz Leeds, the commercial heart of West is a thriving retail city with a catchment population of approximately 3 million people. zz Dominant supermarket occupying a large prominent site in an affluent suburb of Leeds often referred to as the ‘Notting Hill Gate of the North’ and voted one of the best places to live in Northern (Sunday Times 2018). zz Let to Co-operative Group Food Limited, guaranteed by Co-operative Group Limited on a full repairing and insuring lease for a term to expire 10th December 2031 (c. 12.5 years unexpired). zz Rent is subject to 5 yearly upward only reviews to the higher of the passing rent, open market or uncapped RPI. Next rent review is in December 2021. zz Proposals to refit in Q4 2019/Q1 2020 zz Strategically located with highly prominent frontage to Stainbeck Lane, close to its junction with Road which forms the centre of Chapel Allerton. zz Well configured store with a GIA of 16,703 sq ft, with the benefit of 70 car parking spaces, giving a parking ratio of 1:239 sq ft. zz The site extends to approximately 1.3 acres (0.52 hectares) with a site coverage of 30% offering the potential for alternative uses, subject to planning. zz Current contracted rent of £323,458 pa which reflects an overall rate of £18.44 per sq ft allowing 5% for the fully fitted assumption. zz Our client is seeking offers in excess of £5,250,000 (Five Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT which reflects a net initial yield of 5.77% increasing to 6.75%* in December 2021, net of normal purchaser’s costs.

* Assuming RPI assumptions to that date. 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

HARROGATE ROAD

STAINBECK LANE

SCHOOL LANE

For identification purposes only 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

LOCATION & COMMUNICATIONS

Leeds is situated at the heart of the Northern Powerhouse, approximately 40 miles east of Manchester and 190 miles North of London. The city lies 7 miles north of the intersection of the M1(J42) and M62 (J29), with direct access to the motorway network from the City Centre via the M621. The Leeds City Region is the largest economy outside of London and one of the most diverse. The city region has a total workforce of almost 1.37m and a £64.6 million economy (Leeds.gov.uk). Over the next ten years the economy is forecast to grow by 21% with financial and business services set to generate over half of GVA growth over that period. Leeds has a historic strength in financial and professional services but also has concentrations of employment in advanced manufacturing, digital industries and education.

Leeds City Railway Station is the UK’s second busiest rail CHAPEL ALLERTON station outside of Central London with over 900 trains A1(M) Chapel Allerton is often referred to as the “Notting Hill Gate of and 50,000 passengers per day. Services to London Kings the North” and is an inner suburb of North East Leeds, West Cross are every 30 minutes with a fastest journey time of 2 Yorkshire. It is located approximately 2.5 miles from the City hours. Leeds is also the regional transport hub for Yorkshire, Centre, just over 7 miles South West of , providing local services and regular trains to Manchester, 2 miles East of and 1.5 miles West of . , Sheffield and Newcastle. Work has started on the

£161m redevelopment of Leeds Station which is part of a The suburb benefits from good transport links, being in close M62 M62 proposed £500m masterplan. Leeds Bradford International proximity to the A61, A58 and A6120 which in turn offers Airport is 8 miles to the north west of the City Centre access to the A1, M1 and M62. and presently caters for 3m passengers a year. This is forecasted to nearly triple by 2030, with £28m currently The nearest railway station is located in Headingley which being invested in improving the airport’s infrastructure. offers services to Leeds, Burley, and York. The airport serves 70 destinations including 4 daily British There are also regular bus services to which Airways flights to London Heathrow. Leeds is planning to take approximately 13 minutes, and its surrounding suburbs. submit a bid to be European capital of culture in 2023. 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

SITUATION

H A R R

The subject property occupies an extremely prominent position with O

G

A a substantial frontage to Stainbeck Lane, with vehicular access from T

E

R Soldiers’s School Lane and further one way access via Ingle Row off Harrogate O A Fields

D Road to the East, which leads directly to Leeds City Centre. Harrogate D A Road has an eclectic mix of local and national retailers. O R C E IN A CHAPEL T S ALLERTON OAKWOOD DEMOGRAPHICS

S C HEADINGLEY O T Leeds has a primary catchment population of 1.5 million which ranks it 4th T H A L L out of all the major centres. 642,000 people consider Leeds to be their main R O A shopping destination, showing the dominance of the centre. The population D

H E A is boosted by the 50,700 full-time higher education students in the city. D IN G L E L A

N Of these, 7,245 are post graduates and 43,455 are undergraduates. E

CHAPELTOWN

Chapel Allerton sits within the Chapel Allerton ward of A

A and had a population of 23,536 at the 2011 census. The majority of the HYDE PARK WOODHOUSE population are aged between 18-64 making up 66.2% of its total whilst 22.6% are aged 0-17 and 11.1% at 65+ (UK Office of National Statistics). A Chapel Allerton has an overall average house price of £236,555 which is

T

T E

E E E R

more expensive than nearby Meanwood (£222,674) and Leeds (£196,821). T R

S T

S T T

E Overall, sale prices in Chapel Allerton over the last year were up 23% on T

N C

E E

G the previous year and 9% up on the 2016 level of £216,272 (Right Move

E A R

2019). Chapel Allerton was also listed on the 2018 Sunday Times report

on best places to live in Northern England. LEEDS

A M

OR R As a result, the area is becoming very popular with young professionals OA D A

and families due to the strengths of the area and the period housing stock. For identification purposes only

1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

RETAILING IN CHAPEL ALLERTON

The area is an established centre built around the junction of Stainbeck Lane and Harrogate Road, which acts as a main thoroughfare through Chapel Allerton. The centre contains a variety of local retailers including an art gallery, high end cake shop, boutique fashion, kids shops and delis in addition to a selection of national retailers, including Café Nero, Starbucks and HSBC. The area is also well known for its vibrant food scene, and bars.

The District Centre is located 1.5 miles to the North of Chapel Allerton and includes retailers such as Argos, Homebase and Sainsbury’s.

CHAPEL ALLERTON IS OFTEN REFERRED TO AS THE “NOTTING HILL GATE OF THE NORTH” 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

DESCRIPTION STAINBECK LANE

D OA R E T AG O R R A H E N A L L O O H C S The property comprises a purpose built food store constructed in the late 1980’s offering a well configured and efficient layout (90% at ground floor and 10% first floor), served by a car park to the rear and a separate loading yard.

The property has approximately 70 car parking spaces, giving a parking ratio to 1:239 sq ft.

The site extends to 1.3 acres (0.52 hectares) with a site coverage of 30%.

The store is open 7 days a week and opens 6am on weekdays closing at 11pm Monday to Saturday and opening 10am closing 4pm on Sundays.

The property is situated within a conservation area.

For identification purposes only 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

ACCOMMODATION

The property benefits from the following approximate gross internal floor areas: -

Ground Floor Sales 10,984 sq ft (1,020 sq m) Ground Floor Store 4,026 sq ft (374 sq m) First Floor Office/Ancillary 1,693 sq ft (157 sq m) Total Area 16,703 sq ft (1,551 sq m) LEASE

The property is let to the Co-operative Group Food Limited (with Co-operative Group Limited as guarantor) on a full repairing and insuring lease from 11th December 2006 to expire 10th December 2031, with just over 12.5 years unexpired.

The current rent passing is £323,458 pa and is subject to 5 yearly upwards only rent reviews to the higher of the passing rent, open market rental value or uncapped RPI. The rent passing devalues to an overall rate of £18.44 per sq ft, applying 5% to the fully fitted assumption.

The property is next subject to a rent review on the 11th December 2021. It is our opinion that the passing rent at that date will increase to a level in the region of £378,000 pa, which is based on the UK Retail Price Index published rates for 2017/2018 and applying assumed rates for the remaining 3 years based on research provided by the vendor and Oxford Economics.

We understand that the tenant trades well from the store and have proposals to refit in Q4 2019 / Q1 2020.

TENURE

Freehold under title number WYK331253. 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

CO-OP GROUP IS THE UK’S LARGEST COVENANT STATUS CO-OP FOOD HAD AN EXCELLENT CONSUMER COOPERATIVE WITH YEAR WITH THE BEST GROWTH 4.6M ACTIVE MEMBERS AND A IN 7 YEARS. UNDERLYING PROFIT PRESENCE IN EVERY POSTAL Co-operative Food Group Limited (Company No. IP26715R) is a wholly WAS UP 12% TO £204 MILLION. DISTRICT IN THE COUNTRY. owned subsidiary of the Co-operative Group Limited which was established in 1844 and now operates 4,500 outlets with almost 90,000 employees and has an annual turnover of £10.5 billion. 2019 MARKS THE 175 ANNIVERSARY OPENED 417 NEW STORES OF THE CONSUMER CO-OPERATIVE Co-operative Food Group is the UK’s 5th largest food retailer with IN THE LAST 4 YEARS. MOVEMENT IN THE UK. almost 2,582 Co-Op Group food stores employing over 69,000 people. A summary of Co-operative Food Group Limited and the guarantor Co- operative Group Limited (Company No. IP00525R) are set out below: -

Co-operative Group Limited

06/01/2018 31/12/2016

Turnover £9,470,000,000 £9,472,000,000

Pre-tax Profit £72,000,000 -£132,000,000*

Net Worth £2,191,000,000 £2,006,000,000

*The Co-operative Group wrote down their investment in the Co-operative bank to £nil which led to a £185m exceptional cost in the financial year. The underlying profit before tax was £59m.

Co-operative Food Group Limited

02/01/2016 03/01/2015

Turnover £6,475,500,000 £6,327,800,000

Pre-tax Profit -£429,600,000 £199,100,000 RESPONSIBLE RETAILER WHO STRENGTHEN DURING 2018 THE CO-OP COMMUNITIES THROUGH THEIR LOCAL INVESTED £75M IN OPENING Net Worth £1,385,500,000 £1,805,400,000 COMMUNITY FUND, WHICH IN 2018 102 NEW FOOD STORES AND RETURNED MORE THAN £19M TO 4,087 CARRIED OUT 138 REFITS OF LOCAL CAUSES ACROSS THE COUNTRY. EXISTING STORES. The Experian, Delphi rating is 100 out of 100 reflecting very low risk. 1 STAINBECK LANE | CHAPEL ALLERTON | LEEDS

VAT

The property has been elected for VAT purposes and the sale is intended to be treated as a Transfer Of A Going Concern (TOGC). EPC

The property has an EPC rating of C64. A copy of the certificate is available on request. PROPOSAL

We have been instructed to seek offers in excess of £5,250,000 (Five Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT for the benefit of our client’s freehold interest in the subject property. A purchase at this level reflects the For further information or to arrange an inspection please do not hesitate to contact: following yield profile after deduction of purchaser’s costs at 6.60%. PHILIP HAY MIKE JAMESON Net Initial Yield 5.77% BSC (HONS) MRICS BSC MRICS

Reversionary Yield (12/2021) 6.75% 020 7637 7100 020 7637 7100 [email protected] Reversionary Yield (12/2026) 7.92% [email protected] Equivalent Yield 6.35%

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice We have adopted assumed RPI rates based on research provided by 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 the vendor and Oxford Economics which averages out at 3.17% pa, 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 but satisfy themselves by inspection or as an estimate of future rental growth and yield performance from 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. 101627. Designed by TCC 06/19. 2019 onwards.