Well Secured, City Centre, Retail Investment

WELL SECURED, CITY CENTRE, RETAIL INVESTMENT 2a, 2b & 2c Wulfrun Square, Wolverhampton Well Secured, City Centre, Retail Investment 2A, 2B & 2C WULFRUN SQUARE, WOLVERHAMPTON

INVESTMENT SUMMARY ■■ Wolverhampton is a dynamic, thriving city in the West Midlands benefitting from a primary ■■ Well configured, substantial Poundland store comprising56,464sq.ft. catchment population of over 430,000. ■■ Re-based rents. Only 26,262sq.ft. rentalised. ■■ The property occupies a strong retailing pitch within the covered Wulfrun Centre, linking Dudley ■■ Covered shopping centre location with minimal service charge Street to the Mander Centre. Strategically located opposite Primark & the newly opened Pandora and within close proximity to Argos, Marks & Spencer and River Island. ■■ £3,880,000 (Subject to Contract & Exclusive of VAT) ■■ Circa 80% of the income secured to the long established, strong covenant of Poundland Ltd ■■ Attractive 8% net initial yield for a further 12.6 years term certain. ■■ Low capital value of circa £64.50psf. ■■ Predominantly Freehold

LOCATION Wolverhampton is a large, thriving commercial and administrative centre situated in the core of the West Midlands some 29km (18 miles) north-west of Birmingham, 53km (33 miles) south of Stoke-on Trent and 68km (42 miles) south-west of Derby.

The city benefits from excellent road communications with easy access to the national motorway network with Junctions 9 and 10 of the M6 situated 9.6km (6 miles) to the east, Junction 2 of the M54, 6.4km (4 miles) to the north and the M5 within 16km (10 miles) to the south-east. The city is connected by fast, direct train services to Birmingham (20 minutes) and to London (98 minutes).

Locally, the Midland Metro runs from Wolverhampton (St George’s) directly Wulfrun Square into central Birmingham (Snow Hill). A further £10m is to be invested connecting the Metro to Wolverhampton’s rail station. A local bus service, operated by National Express West Midlands, connects the city with Wolverhampton neighbouring towns. The city’s bus station was re-opened in July 2011 following a £22.5m refurbishment.

DEMOGRAPHICS & LOCAL ECONOMY Wolverhampton has a large, densely populated, loyal catchment which incorporates a number of more affluent boroughs to the north and west of the city. The primary catchment population of 430,000 people ranks it the 54th largest of the UK Promis Centres.

There are 353,700 people located within a 15 minute drive time of the city centre and 1,731,300 people within a 30 minute drive time. This large catchment generates a strong in store expenditure of £902m, ranking Wolverhampton 61st of the Promis Centres. The city population is further boosted by the expanding University population which now attracts circa over 23,000 students per annum. £115m has been invested in the campus over the last decade with a further £45m planned.

Wolverhampton has a strong and diverse economy with a highly skilled workforce of 144,000 people supporting 8500 companies. The service sector is dominant although there is an established broad manufacturing base. Halifax Bank & Birmingham Midshire’s Building Society both have HQ’s in the city and other major employers represented include GE Aviation, Carillion and UTC Aerospace Systems, Moog Aircraft Group and Jaguar Land Rover. RETAILING IN WOLVERHAMPTON The town’s retail provision is centred on pedestrianised Dudley Street, the Mander and Wulfrun Shopping Centres. The city’s retailing provision comprises circa 1.5m sqft although this will be improved with the partial re-development and refurbishment of the Mander Centre where Debenhams has recently signed an Agreement to Lease for a new 90,000sqft department store. H&M are also in discussions to potentially lease a new 24,000sqft store.

Plans for a proposed new shopping centre on Summer Row have now been abandoned. Consequently retailers, both represented and currently unrepresented in the city are able to plan their future space requirements with confidence within the existing retail core. This should have a positive impact upon the subject property.

SITUATION The property is situated within The Wulfrun Shopping Centre which is an established covered shopping centre incorporating a 570 space NCP car park and anchored by Primark, Argos, Poundland and Iceland. It is a busy pedestrianised link between Dudley Street and the Mander Shopping Centre. The average monthly footfall is in excess of 800,000 (LCP). PROPERTY The property comprises a former department store (previously C&A and TK Maxx) arranged over basement, ground and two upper floors with a third floor plant room comprising circa 5,246 m² (56,464 sq. ft.). Whilst the whole store is demised to Poundland the tenant only occupies the basement and ground floors and only these areas are to be rentalised at rent review (personal to Poundland whilst the tenant).

The property includes two smaller, adjacent retail units, 2a & 2b Wulfrun Square comprising 337.5m² (3,633 sq. ft.) which are arranged over ground and basement floors.

VACANT

VACANT F HINDS

TENURE Predominantly Freehold.

There is a small element of long leasehold within the ownership (Unit 28 – the secondary store entrance with access to the Wulfrun Centre’s Piazza). The long leasehold expires on 28th September 2093 (79 years approx.) at a peppercorn rental. TENANCIES & ACCOMMODATION

Unexpired Next Rent Unit Tenant Areas (sq ft) Lease Start Lease Expiry Term Rent pax Review Comments 2c Wulfrun Square & Unit 28 Wulfrun Centre Poundland Limited Basement 9,469 14/05/2012 13/05/2027 12.64 years £260,000 14/05/2017 Only ground and basement rentalised at review - personal to Poundland whilst they hold the lease Ground 16,793 1st Floor 14,811 2nd Floor 14,452 3rd Floor 939

2b Wulfrun Square Peter Martin (t/a Card Tree) Basement 922 25/12/2009 24/12/2014 0.25 years £32,000 Lease expiry in Dec 2014. If the tenant vacates the vendor to provide a rent, rates and service charge guarantee for 12 months Ground 1,007 from completion or until the unit is let, whichever is sooner. ITZA units 562 units

2a Wulfrun Square Card Express Limited Basement 610 30/08/2014 29/08/2024 9.94 years £37,500 30/08/2019 Guaranteed by Card & Party Store (Cash & Carry) Limited. Ground 1,094 TBO 30/08/2019 with 6 months prior written notice. Next review 30/08/2019. Tenant receives 6 months rent free until ITZA 599 units 30/02/3015. To be topped up by the vendor from completion

Total 60,097 AWULT 11.13 TOTAL RENT £329,500

TENANT COVENANTS Date of Tenant D&B Rating Accounts Turnover Pre-tax Profit/Loss Net Worth Poundland Ltd (02495645) 5A 1 31/03/2013 £880,491,000 £34,313,000 £119,042,000 Card Express Limited (06899320) N 4 30/06/2013 N/A N/A (£56,960) Card & Party Store (Cash & Carry) Ltd (03338435) 1A 1 30/06/2013 N/A N/A £997,589

Poundland is the UK’s leading discount retailer. They have recently reported a total sales increase by 13%. The company has also reported a rise in pre-tax profits for the year of £36.8m.

Poundland opened 70 new stores in the last year, taking its total to 528 stores across the UK. In March this year Poundland listed on the London stock market, significantly increasing its market value from £750million to circa £900million in early trading. They are rated “Very Low Risk” by Experian with a Delphi Score of 100/100.

NET CURRENT INCOME PAX £329,500 per annum exclusive.

Circa 80% of the income is secured to Poundland for a further 12.6 years term certain.

SERVICE CHARGE There is a minimal service charge payable to the freeholder of the Wulfrun Centre. The current amount payable is £420 pax. Further information is available on request.

EPC A copy of the EPC’s is available on request.

VAT The property has been elected for VAT and thus VAT will be payable on the purchase price.

PROPOSAL £3,880,000 (Three Million, Eight Hundred and Eighty Thousand Pounds). Subject to Contract and Exclusive of VAT, reflecting an attractive net initial yield of 8% and a low capital value of £64.50 psf.

FURTHER INFORMATION

For further information please contact:

David Freeman Ed Smith Patrick Over James Baillie 020 7659 4830 020 7659 4831 020 7659 4832 020 7659 4839 [email protected] [email protected] [email protected] [email protected]

MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. September 2014.

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