Leicester and Birmingham

Two purpose built freehold supermarket Investments let to Iceland with 11 years unexpired and a fixed rental uplift in 2025 and significant future development potential Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

The Opportunity

n Two prime freehold supermarket investments in Leicester and Birmingham totalling 15,725 sq ft n Purpose built units constructed in Iceland’s iconic building design n Each property is located in popular residential areas close to the City Centre with significant future development potential (STC) n Fully let to Iceland Foods Limited for 11 years unbroken guaranteed by Iceland Topoco Limited until 2030 n Large cumulative site area of approximately 1 acre (0.4 ha) n Total passing rent of £184,476 pa with a guaranteed fixed uplift in 2025 to £208,718 pa n Opportunity to buy both properties together or on an individual basis n Offers to purchase both properties are sought in excess of £3,465,000 (Three Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a blended net initial yield of 5% and a reversionary yield of 5.68% after allowing for purchaser’s costs of 6.50%.

Summary Schedule

Property Area Sq ft Area Sq m Rent £ psf 2025 rental uplift

197-201 Narborough Road, Leicester 7,046 654.58 £94,953 pa £13.57 £107,431 pa

577 Kingstanding Road, Birmingham 8,679 806 £89,523 pa £10.30 £101,287 pa

Total 15,725 1,460.58 £184,476 pa £208,718 pa Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

197-201 Narborough Road, Leicester, Leicestershire, LE3 0PE

INVESTMENT HIGHLIGHTS

Situated in a densely Very strong covenant with Well located in close Freehold Attractive and prominent Large site area Current rent passing of populated residential area 11 years unexpired proximity to Fullhurst building measuring of 0.52 arces £94,953 pa with a fixed only 1.5 miles south west Community College, approximately 7,046 sq ft uplift to £107,431 pa in 2025 of Leicester City Centre The King Power Stadium and De Montfort University

The vendor would consider selling the property as a single asset and requires offers in excess of £1,900,000 (One Million Nine Hundred Thousand Pounds) which reflects a net initial yield of 4.7% and a reversionary yield of 5.32% after allowing for purchaser’s costs of 6.25%. Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

A38 Stoke-on-Trent A52 Newcastle-under-Lyme

A515 NOTTINGHAM A50 A53 DERBY M1 A49 A518 M6 Burton upon Trent A38 Midlands A6006 A442 A51 Airport

A42 A41 Shrewsbury CANNOCK

Telford M54 Walsall M42 LEICESTER A47 A458 M6 TOLL A5 Peterborough A49 A454 M69 A605 BIRMINGHAM M1 M6 A6116 Birmingham A1(M) M5 International Kidderminster Airport COVENTRY A14 M42 A456 A14 Coventry M45 A4025 M40 Airport A435 Warwick

A423 NORTHAMPTON A1 A422 A46 A428 A49 Worcester Stratford-upon-Avon A5 A44 Bedford A4103 A438 A429 A6 Hereford A422 A46 Milton Keynes M50 M40 A421 M1 A49 M5 A1(M) A5 LUTON GLOUCESTER Luton Airport

0.4 miles

Location Situation

Leicestershire is one of the major commercial and manufacturing centres The property is situated approximately one mile outside of Leicester 0.8 miles in the Midlands and has an estimated population of approximately City Centre on Narborough Road (A5460), the main arterial road 350,000 people. Leicester is the largest city in terms of populous in the into Leicester on the south west quadrant of the city. Narborough East Midlands, the 11th largest in the country and currently has the Road connects Leicester City Centre with Junction 21 of the M1 biggest economy in the East Midlands. The city is located 43 miles north- motorway and The Fosse Shopping Park to the South. east of Birmingham, 31 miles south of Nottingham and 100 miles north- The immediate area is predominantly residential with a number of west of London. national covenants situated along Narborough Road. Located in It has excellent road links being situated east of the M1 motorway close proximity are both Leicester’s King Power Stadium (0.8 miles) between Junctions 21 and 21a which in turn provides access to the and De Montfort University (0.8 miles). Other occupiers in close King Power Stadium M69, M6 and M42. Leicester’s ring road, the A563, offers connections proximity include Wilko, Ladbrokes, Santander, Sainsbury’s Local, 0.8 miles to the nearby towns of Peterborough and Grantham whilst the A6 runs Shell, Lloyds Bank and Dominoes against many others. directly through the city centre to Loughborough to the north and Market Harborough to the south. By rail, London (Kings Cross St Pancras) can be reached in a fastest journey time of 1 hour 8 minutes and East Midlands airport lies approximately 20 miles to the north-west of the City. Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

Description The property comprises a purpose built two storey local Iceland supermarket of brick and block construction measuring approximately 7,046 sq ft (654.58 sq m) arranged over ground and first floor. The property is arranged with the majority of the ground floor as sales space with a small ancillary storage area and goods loading area to the left of the unit. The first floor is accessed through the ground floor ancillary space and comprises the shop’s main warehouse, industrial chiller and freezer units together with further staff accommodation. All deliveries are loaded through a single roller shutter door to the ground floor ancillary space via the property’s loading area to the west side of the building. There is a goods lifts that transfers all deliveries from ground to first floor. The property benefits from a large site area of 0.52 acres with 31 car parking spaces to the front and rear of the building alongside a further bike rack.

Tenancy The property is let to Iceland Foods Limited on a full repairing and insuring lease for a term of 25 years from 28th February 2005 with a further guarantee from Iceland Topco Limited. The current passing rent is £83,295 pa rising to £94,953 pa in February 2020 – the Vendor will top up the rent to the next fixed uplift from completion. The lease provides for a fixed rental increase in February 2025 to £107,431 pa.

Tenant’s Improvement The tenant carried out an extension in 2014 increasing the ground floor by approximately 86.03 sq m (926 sq ft) further confirming their commitment to the unit. This area is not rentalised. Site Area Tenure 0.52 acres (0.21 hectares). Freehold. Accommodation*

Floor Sq ft Sq m Planning Ground 4,859 451.41 The Vendor has commissioned a feasibility study for the development First 2,187 203.17 of up to 75 student bedroom spaces retaining much of the existing Total 7,046 654.58 store. Further details available on request and in the data room.

*Measurements have been provided by the vendor, any interested party should carry out their own measured survey. © Crown Copyright, ES 100004106. For identification purposes only. Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

577 Kingstanding Road, Kingstanding, Birmingham, West Midlands, B44 9TA

INVESTMENT HIGHLIGHTS

Situated in the Highly prominent Very strong covenant At the focal point Freehold Attractive purpose Low rental level of Large site area of Current rent passing Birmingham suburb and visible position with 11 years for both retail and built building just over £10 psf 0.465 acres of £89,523 pa with of Kingstanding just in a very densely unexpired leisure offerings in measuring a fixed uplift to 4.5 miles (7.3km) populated residential Kingstanding approximately £101,287 pa in 2025 to the south of area 8,679 sq ft Birmingham City Centre The vendor would consider selling the property as a single asset and requires offers in excess of £1,565,000 (One Million Five Hundred and Sixty Five Thousand Pounds) which reflects a net initial yield of 5.39% and a reversionary yield of 6.10% after allowing for purchaser’s costs of 6.13%. Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

A38 Stoke-on-Trent A52 Newcastle-under-Lyme

A515 NOTTINGHAM A50 A53 DERBY M1 A49 A518 M6 Burton upon Trent A38 Midlands A6006 A442 A51 Airport

A42 A41 Shrewsbury CANNOCK

A423 NORTHAMPTON A1 A422 A46 A428 A49 Worcester A L D Stratford-upon-AvonR A5 A44 ID Bedford A4103 G A438 E R D 1 A429 04

Hereford 4 A6

B A A422

E A46 Milton

A C Keynes

M50O M40 A421 M1

N M5 Sutton Park

A49 R

O Sutton Coldﬁeld Sutton Park A1(M) A Kia A5

D 1 D A LUTON 4 A 4 GLOUCESTER 0 5 4 O 2 R A Luton G Airport N I Pheasy D N

A T S MO NM G O U N T I H D K A D RO R IV GH E OU B41 R 49

A Queslett 4 5 2 Princess Alice

Retail Park B41 1 49 K 4 IN K G 0 A S R IN O Tesco Extra 4 D AD M A R G

ID S

6 G A E N

Old Oscott 3

R D 45

I New Oscott O N A

A G

D Boldmere

A Kingstanding D A 3 45 A45 2

Location Situation Birmingham is situated in the heart of the UK, approximately The property is located in the Birmingham suburb of Kingstanding 115 miles (185 km) north west of London, 88 miles (142 km) north approximately 4.5 miles (7.3km) to the south of Birmingham City east of Bristol and 85 miles (136 miles) south east of Manchester. Centre just south of Sutton Coldfield. It has a highly prominent Classed as Britain’s ‘Second City’, Birmingham is a prominent and visible position to the south of Kingstanding Island on the east player in the financial and administration sector within the UK. side of Kingstanding Road (A5127) dual carriageway, adjacent to Birmingham has a growing population with an estimated 1,137,100 Lloyds Bank and opposite the Circle Community Day Centre. residents and has one of Europes ‘youngest’ populations with 40% The immediate area is predominantly residential and is extremely being under 40. The city employs over 100,000 in the city centre densely populated after significant housing development and 350,000 in the wider region. post 1930. The suburb currently has a population density of Birmingham’s central location places it at the heart of the M1, M6 5,410 people per km² compared with 3,649 people per km² for and M42 motorways, with the A38M creating direct connections Birmingham. The subject property and surrounding commercial from the city to the national road network. offerings to the north provide the focal point for both retail and leisure offerings in Kingstanding and include national occupiers such as Greggs, Halifax, Boots, Coral, Dominos and Mega Bingo. Two purpose built freehold supermarket Investments let to Iceland for 11 years Leicester and Birmingham unexpired with fixed uplifts in 2025 and significant future development potential

Description The property comprises a purpose built two storey steel framed Iceland Supermarket of approximately 806 sq m (8,679 sq ft) with brick elevations and a pitched tiled roof. The property benefits from a large site area of 0.465 acres with a prominent frontage onto Kingstanding Road. The majority of the ground floor comprises a large well configured sales space along with ancillary storage space used for deliveries to the rear of the unit. Deliveries are taken to the right side of the property through a roller shutter door; this is accessed through the car park. The first floor is accessed through the ground floor ancillary space and comprises a large storage area, an industrial chiller and freezer, along with staff accommodation. The property benefits from 28 parking spaces to the side of the building alongside a further bike rack.

Tenancy The property is let to Iceland Foods Limited on a full repairing and insuring lease for a term of 25 years from 28th February 2005 with a further guarantee from Iceland Topco Limited. The current passing rent is £79,125 pa rising to £89,523 pa in February 2020 – the Vendor will top up to the rent to the next fixed uplift from completion. The lease provides for a fixed rental increase in February 2025 to £101,287 pa.

Planning In November 2018 Birmingham City Council granted conditional planning permission for the erection of additional retail space to the ground floor and further ancillary space to the first floor (Planning Application No 2018/02635/PA). Iceland has expressed a desire to expand the unit into this extra space. Accommodation*

Site Area Tenure Floor Sq ft Sq m Ground 5,186 482 0.465 acres (0.118 hectares). Freehold. First 2,756 256 Total 8,679 806

Covenant Information

Iceland Foods Limited is a leading chain of British food retailers founded in 1970 specialising in the sale of frozen foods. In February 2018 Iceland was ranked No 8 in the annual Sunday Times Best Companies survey of the “Best Big Companies to Work for in the UK”. This is an award Iceland has featured in for the last 12 consecutive years and was ranked No 1 in 2012 and 2014. The business has shown significant growth and now operates in over 860 stores and employs over 23,000 members of staff. In terms of their business plan, Iceland is taking a longer term Kingstanding unit view and is continuing to invest into the future, this includes expanding store footprints, enhancing the appeal of existing stores through an impressive £63.5m capital expenditure programme, growing their award winning Online business, continuing to roll out new food lines that are unique to Iceland, and developing their supply chain to support the growth of their real estate. Iceland enjoyed rising sales throughout 2018 posting a 7.3% rise in sales to £2,972.9m (52 weeks to 24 March 2017: £2,770.5m) but reported a drop in profits due to major investments in marketing, prices and store refurbishments. Iceland Foods Limited has an Experian Credit Rating of 96 - which indicates a ‘Very Low Risk’. Iceland Food Limited’s financial results for the last 3 years are summarized below:-

Year Ending Turnover Pre Tax Profit Net Worth

25/03/2018 £ 2,972,900,000 £ 32,800,000 £774,900,000

24/03/2017 £ 2,770,500,000 £ 67,300,000 £784,100,000

25/03/2016 £ 2,658,332,000 £ 58,172,000 £740,354,000

Iceland have a guarantor from Iceland Topco Limited who operate as a wholesale and retail grocers in the United Kingdom and internationally. It also engages in property rental and management and warehouse storage activities, as well as the import and export of food. In addition, the company produces food; underwrites insurance; and provides financial services. As of March 24, 2018, it operated 932 stores under the Food Warehouse Fascia brand. The company also offers its products online. Iceland Topco Limited is based in Flintshire, Wales.

Iceland Topco Limited has an Experian Credit Rating of 96 - which indicates a ‘Very Low Risk’.

Leicester unit EPC The EPCs are available in the Data room

VAT The property has been elected for VAT and as such the transaction will be treated as a TOGC.

Dataroom For access to the Allsop Data Rooms, please use the following links: https://datarooms.allsop.co.uk/register/Leicester https://datarooms.allsop.co.uk/register/Birmingham

Proposal Offers to purchase both properties are sought in excess of £3,465,000 (Three Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a blended net initial yield of 5% and a reversionary yield of 5.68% after allowing for purchaser’s costs of 6.50%.

For further information or to make arrangements for viewing please contact:

Liam Stray Alex Butler Andrew Lister 020 7543 6769 020 7543 6722 020 7543 6726 [email protected] [email protected] [email protected] allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 01.19