Retail investment

let to Co-Op & Greggs , . SY2 6FG. 2

Investment Summary

· Shrewsbury is the County town and principal administrative centre of Shropshire with a catchment population of approximately 200,000 people.

• Shrewsbury Business Park is the County’s premier office location situated 2 miles from the town centre with immediate access to the A5 (T) leading to the M54.

• The Park currently houses a workforce of about 1,200 people with a further 1,000 expected once Phase 2 is fully developed. There is a significant established residential catchment adjoining with construction underway for a further 750 homes.

• The investment comprises a newly completed development of three shops totalling approximately 511. 5 sq m (5,500 sq ft).

• Freehold subject to two tenancies and one rental guarantee producing actual income from Greggs and the Co-Op of £63,000 pa and anticipated income of a further £22,000 totalling £85,000 pa. 75% of the income is from Greggs and the Co-Op.

• Price: £1,350,000 at a net initial yield of 5.72% after buyers’ costs of 5.6% (when fully let). 3 Location Shrewsbury lies on the River Severn and is a gateway to Mid Wales and has a population of some 72,000 residents. It has a broadly based local economy with strengths in professional and administrative services, health, telecoms and engineering, recently enhanced by the opening of University Centre Shrewsbury. Shrewsbury boasts a largely unaltered medieval street plan with over 660 Listed buildings. As such, modern office development within the town is severely restricted and consequently Shrewsbury Business Park has benefited from strong demand by local professional firms, Shropshire Council, NHS and West Mercia Police administration , etc.

By road, By road, Shrewsbury lies to the east of the Welsh border via the A5 and A458 trunk roads. The A5 bypasses the town centre to the south, with two junctions adjacent to the Park EDINBURGH and also connects it with the A49 (Merseyside/Cardiff) and the at some GLASGOW 12 miles to the east; Chester 47 miles, Birmingham 46 miles. M74

By rail, Shrewsbury provides regular services to Birmingham New Street (fastest journey time 57 minutes) and London Euston (2 ½ hours - direct). In addition there are also good links to Manchester and Cardiff, with the lines from Shrewsbury to Mid and north Wales M6 currently enjoying further investment. LEEDS M62 By air, Birmingham International Airport is approximately 55 miles to the south east. LIVERPOOL Manchester and Liverpool are also readily accessible. MANCHESTER M6 M1 Shrewsbury Business Park is located about 2.5 miles to the south east of Shrewsbury town M54 SHREWSBURY centre fronting the A5 dual carriageway. The Park is a high quality office development on a BIRMINGHAM site of some 12.5 hectares (30 acres), which has been developed by the Alaska Property Group M1 over the last 15 years. The first phase of the development comprised about 14,500 sq m M5 M40 M4 M25 (160,000 sq ft) and the second phase, currently under construction, will provide an additional M4 CARDIFF 14,000 sq m (150,000 sq ft) of commercial offices. BRISTOL LONDON Occupiers on the Park include NFU, Brewin Dolphin, Shropshire Council, Handlesbanken, FBC M5 Manby Bowdler, Whittingham Riddell, NHS, West Mercia Police Authority, Guestline and Jacobs Consulting. The Park benefits from a 70-bed Holiday Inn Express and Busy Bee’s children’s day care nursery. 4 Situation The investment is situated at the western entrance to the Park with a frontage to Wenlock Road. Established and developing housing areas are within walking distance.

Description

The property serves as a leisure and convenience facility for the Business Park as well as the large nearby residential catchment. It comprises three units with the Co-Op and Greggs now trading. The developer chose deliberately not to let the last unit until the first occupiers had become established. Unit 2 has now been put on the market. It is capable of being further split into two. The adjacent plot has planning permission for a restaurant of approx. 510 sq m (5,500 sq ft). Under construction on plot 32 close to the property is an office building of around 930 sq m (10,000 sq ft) pre-let to Berrys Chartered Surveyors for occupation in May 2017.

Unit Tenant Net Internal Area Total Rent

1 Greggs Plc 116.13 sq m /1,250 sq ft £18,000

2 Vacant 142.4 sq m / 1,533 sq ft £22,000

3 Co-Operative Group Food Ltd 280.40 sq m/ 3,018sq ft £45,000

TOTAL 538.93 sq m / 5,800 sq ft £85,000

Site

The site (shown edged red on the plan) is about 0.26 ha (0.64 acres) and provides 24 car parking spaces, in turn to be shared with the proposed restaurant on the adjoining plot (shown blue) with reciprocal parking on the latter giving a total of about 103 spaces.

Tenure

Freehold subject to the tenancies as listed below. 5 Tenancies

Each unit is let on a tenant’s apportioned full repairing and insuring basis recoverable by way of a service charge. The latter includes maintenance and other charges levied on owners of buildings on Shrewsbury Business Park and administered by Shrewsbury Business Park Management Ltd.

Unit 1 is let to Greggs Plc for a term of 10 years from 1st December 2016 with a tenant’s break clause at the end of the fifth year (tenant break penalty £13,500 +vat). The commencing rent is £18,000 pa (£14.40 per sq. ft.) and subject to an upward only review at the end of the fifth year. There is a rent-free period until 10th August 2017.

Unit 2 is currently vacant. This has been held back to create an enhanced rental tone. Nevertheless there is occupier interest which could be capitalised on to create two smaller units and produce an immediate income from sale completion. The estimated rent is £22,000 per annum (£14.68 per sq. ft.). The developer will place two year’s rent as a guarantee until such time as the last unit is let.

Unit 3 is let to Co-operative Group Food Limited, for a term of 15 years from 21st September 2016 without break. There is a tenant’s option to renew for a further 10 years. The commencing rent is £45,000 per annum (£14.91 per sq ft), with 5 yearly RPI-linked rent reviews, having a collar and cap of between 1% - 4% per annum. 6 Covenant Co-Operative Group Food Limited

The company is a wholly owned subsidiary of The Co-Operative Group which was established in 1844. For the year ending January 2014, The Co-Operative Group reported total revenue of £9.3 billion. Co-Operative Group Food Ltd is one of the UK’s largest food retailer with about 2,000 stores generating over £7 billion in sales and profit of £250 million in 2015.

Greggs Plc

Greggs Plc has about 1,700 outlets across the UK and trade as “the country’s leading bakery food on the go” retailer. For the year ending January 2015, Greggs reported sales of £836 million with pre-tax profit of around £73 million. The October 2016 trading update shows total sales up 5.6% on the previous quarter with an expectation to open an additional 70 shops for the forthcoming year.

Developer

Alaska Property Group founded Shrewsbury Business Park and has been its developer, in partnership with Shropshire Council, since its inception. This plot has been developed by SBP phase 2 Ltd, a company within the Alaska group.

VAT

All prices and rents mentioned in these particulars are exclusive of VAT if applicable. The property is elected for VAT and it is anticipated the transaction will be treated as a transfer of a going concern (TOGC) however prospective purchasers should rely on their own enquiries before submitting any offer.

EPC/Warranties

Energy Performance Certificates and full construction and design warranties are available from the seller’s construction team. 7

Proposal

We are instructed to seek offers around £1,350,000 (one million three hundred and fifty thousand pounds) subject to contract and exclusive of VAT, for the freehold interest and

Shrewsbury College of subject to the tenancies and guarantee as listed. R Arts & Technology i v e r

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o n e E a v m A d age s hor tr Anc e y Ba Halls Commercial Cooper Green Pooks B4380 nk Bowmen Way, Battlefield, 3 Barker Street A5 B4380 B4380 Shrewsbury, SY4 3DR Shrewsbury, SY1 1QF Tel. 01743 450 700 Tel. 01743 276 666 The property Rebecca Welch Charles Howell A5 A458 [email protected] [email protected] SY2 6FG 07908 425 525 07802 351 214

IMPORTANT NOTICE: Cooper Green Pooks and Halls Commercial for themselves and for the lessors or vendors of this property whose agents they are give notice that: 1 No appliances, services or service installations have been tested and no warranty as to suitability or serviceability is implied. Any prospective purchaser or lessee is advised to obtain verification from their surveyor or solicitor. 2. The particulars are set out as a general outline only for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract. 3. All descriptions, reference 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 lessees should not rely on them as statements or representation of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 4. No person in the employment of Cooper Green Pooks has any authority to make or give any representation or warranty whatsoever in relation to this property. 5. All rentals and prices are quoted exclusive of Stamp Duty, legal and surveyors fees and any other associated purchasers or lessees costs. 6. Floor plans are indicative only and should not be relied on. 7. The plan showing the boundary of the property is indicative only and has not been checked against the legal title so should not be relied on. 8. All dimensions, floor areas and site areas are only approximate and should not be relied on. Dimensions are generally maximum room dimensions.