Prime Leisure Investment in Central Croydon M1 A406 Location M25 2 2

GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON M1 A406 LOCATION M25 2 2

M40 HARROW 1 A1

Croydon is London’s largest borough by population, totalling 363,400 (2011 census) and a 1A/16 1 A10 A12 WEMBLEY major commercial centre and considered the most connected urban location in the South East. A406 A5 UXBRIDGE A40 The town is located 10 miles south of Central London and 10 miles north of the M25. LONDON SLOUGH EALING A40 Croydon’s superb transport links to key destinations in London and the South East make it a 7 6 CHISWICK A4 4 M4 HAMMERSMITH SOUTHWARK thriving commercial and retail hub. Rail links between East Croydon and Central London are fast 15 3 2 5 1 CHELSEA FULHAM – only 16 minutes to London Victoria; 12 minutes to London Bridge. Gatwick International Airport WINDSOR 14 A202 HEATHROW HOUNSLOW AIRPORT A205 is just 14 minutes away. A20 RICHMOND DULWICH 13 A316 A205 Croydon has a retail catchment population of over 2.5m making it the 13th biggest centre in the WIMBLEDON A3 A23 UK. The town is expected to provide an additional 19,000 homes by 2026. A308 M25 1 SIDCUP STAINES KINGSTON BECKENHAM MITCHAM BROMLEY 2/12 A24 A309 CROYDON M3 11 SUTTON ORPINGTON 3 million people live within WEYBRIDGE A232 A232

A3 PURLEY a 10 mile radius of Croydon. EPSOM

10 A24 BANSTEAD A237 WOKING 9 A22 24 LIVERPOOL ST A320 MIN LEATHERHEAD M25 A3 CATERHAM

A246 7 INVESTMENT SUMMARY LONDON 8 6 SEVENOAKS VICTORIA WATERLOO BRIDGE CANARY WHARF REDHILL A25 A25 • Central Croydon’s only dedicated leisure scheme. – Lloyds No 1 bar and restaurant • Croydon is an exciting growth location with a proposed 16 20 12 26 GUILDFORD REIGATE MIN MIN MIN MIN A25 capital investment programme of over £5bn, with over A22 • Located on High Street, 50 metres from North End – Nando’s restaurant A3 9,500 new homes expected over the next 5 years. M23 Croydon’s principal pedestrianised shopping street – Vacant restaurant unit and conveniently accessible for numerous bus and • Numerous asset management opportunities to enhance A24 9 tram routes through central Croydon. the scheme. CLAPHAM CROYDON GATWICK • Let to 6 tenants on 7 leases producing an income MIN AIRPORT • Highly accessible location 2-3 minutes’ walk from of £2,830,636 per annum with contracted rental • Excellent provision of local town centre car parks. The Whitgift Centre and Centrale, soon to be Westfield. uplifts in March 2017 to £3,069,836 and March 2022 • Seeking offers in excess of £34,525,000 (thirty four • Prominent modern purpose built 160,840 sq ft leisure to £3,347,134. million five hundred and twenty five thousand pounds), Footfall in Croydon has TRANSPORT KEY FACTS: scheme comprising: • Excellent income security with 82% of rental income subject to contact and exclusive of VAT. increased to 2.4m per • 30 train services an hour to • £30m investment program – Virgin Active Health Club with 20m pool from D&B 5 A1 rated covenants. • Attractive net initial yield of 7.75% with an anticipated central London reversion on letting vacant unit to 7.88% with further fixed • UK’s biggest tram service carrying – 10 Screen Multiplex VUE cinema • Highly attractive long term income with 12.36 years month – up 6.3% against rental increases (VUE fixed uplift) in March 2017 to 8.53% • 11 train services an hour to Gatwick 28m passengers per year AWULT with no break clauses. GATWICK 14 – Tiger Tiger and Reflex bar/nightclub and in March 2022 to 9.29%, after purchasers’ costs of 5.8%. MIN a national 3.5% decline.

2 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 3

Maps not to scale. For indicative purpose only. CROYDON SITUATION

WEST CROYDON STATION Grants Entertainment Centre is located 50 metres from North End which is the prime pedestrianised retail pitch running Croydon is set to North/South through central Croydon. Accordingly there is excellent accessibility to Croydon’s principal shopping centres HOUSE OF FRASER become London‘s being the Whitgift Centre and Centrale (soon to be Westfield) 1,050 SPACES within only 2-3 minutes’ walk away. biggest growth centre Grants Entertainment centre is highly accessible being situated WHITGIFT DEBENHAMS CENTRALE with more than between East and West Croydon stations. 10 local bus routes SHOPPING CENTRE service George Street station which is 75m east of the subject CENTRE £5.25bn worth of property. Additionally the Tramlink has dramatically improved 580 SPACES east-west links through the town and now carries in excess of PRIMARK RUSKIN SQUARE investment expected 28 million passengers a year. The system is the UK’s biggest 685 SPACES NORTH END PARK STREET tram network and connects Croydon to Wimbledon in the East in the next five years. and to Beckenham and New Addington in the West. PARK LANE Croydon town centre has an excellent parking provision with over 2,500 spaces, all within a 10 minute walk from the subject HIGH STREET (Source: Develop Croydon) property. The closest car park, Qpark Multi-storey providing ST GEORGES HOUSE EAST CROYDON STATION 685 spaces is located immediately to the west of the property, linked via a footbridge serving the property. CROYDON COLLEGE TABERNA COLLEGE ROAD OVER THE NEXT 5 YEARS: HOUSE NEW • 2.8m sq ft of Grade A office space. THE CROYDON FLYOVER CIVIC HUB • £1bn Westfield/Hammerson retail scheme – Europe’s largest urban retail destination. 2,500 car parking spaces • 7 new hotels. • 28 new public squares and spaces. within 10 minutes walk • 9,500 new homes. • International business clusters in financial services, engineering, tech & media and government. • A revitalised and vibrant city centre environment.

4 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 5 F R E E M 1 D 1 A S 2 O O A WIND MIL L P L A N S R D C E 1 B R IDG E L 2 O 7 10 152 A E L W E T F I E L D T O N C L O S E N 1 A A N R H P O C N 56 5 54 S A D 2 A ’ 17 R 35 D B R R E I D I Croydon Primary RT D G D E E R O 2 S C AC W OA B R Care Trust L 1 O M Church of Y R O P 2 A AM B E 43 L the Nazarene D D E M R A A O L 33 90 St. Mary’s Catholic 6 O U E R D A G D NH A D S A Lidl E O T High School A A L O N R P H A M E S R YD S O A RO D S O L R 60 L 2 C

CK D 51 Fitness First L 46 O O E D 64 R O A T W I E D A N P N S L A 159 N R I C E CROYDON KEY SCHEMES U B 5 V 17 O W O D W A Lennard Lodge T D 3 R O A Child & Family Clinic P 11O A R R Prospect St. Mary’s RC N St. Mary’s 58 L E S E V E L 69 S D G R O I E G R O N ’S L First Junior School O V E Catholic Church 43 L E S L I E E 135 R I F 2 Montessori 20 M K E 7 C O A E WN Day Nursery A A L O 22 P D A E 134 S R O E N Land Registry Office GROV E D S D West Croydon O N ’ D 81 D S LIE R A A C K S A O Trafalgar House J A C E E 131 G R Methodist Church 8 P L L R O A D S 1 20 W 1 K 13 E

W C R E A 30 R R D St. Mary’s Catholic N TE A L 1 A E OH N’S D 49 P L J L 11 22 West O E L Infant School A A E R S I E L L 38

S S C O L L O E 1 2 3 4 5 6 7 68 1 E N L 142 B RC

Y B E D E K B R R

CCrroydoydon L 5 P L E A Y 5 3 R P L F O 42 S T O O R D O D A 24 O V

Croydon C R OR S 130 1 E N E O I P D A S A E N O DF A E BE R L L S O N Delta D Tabernacle A K R R

T B Point D O R A O A 33 A

4 D A C L E 1 A S H 1 D O L O T 1 83 S C E E B E D F N N E Y C AC S D L O R R O D P R P L A D C E O A 61 O E M West CrCroydoydon S UK Border Agency P T 6 N A . Y R M I Home Office S C H R O 14 A N E L D ’ S R O R ’S A D R M E E Subway A 23 42 A H D O 54 D O A E 3 5 R S O C L O 2 166 A E St. Michael and A S C L V O O OD R O All Angels 12 Ark Oval H D W N C L D O A 87 N with St. James Church O Primary E R O K R D R A 6 L M E 2 Y D A Lunar House A B W H A Academy 1 R O 30 R L A E N E P D R N 62 D 21 P O S Y

L L D Church of A W O A L R A W O V A God 7th Day 8 O 116

I 2 EASTG N 78

81 S N D W I

O D S R T D H N A 123 O R 8 51 R O C L A A 65 A V D L O H

E D 36 A 18 CROYDON 79 O R Apollo A R L R C E D E D House 54 W E R 78 A B

RO W E Y L 37 58 A I N L E N L L E S 38 N SK D 34 U L O D R S E A OA 38 O R O L Y O 3 R E R C EDA R R 30 R Y N D O A C A R E O A O D N A B T C R H 24 I R N W ES H W D 7 P O 28 H O B I A O Mecca S I O N T T D 26 IR W H T Energie D L B REND E S A R C N E O A A R A L B N K K CL E L 2 Fitness KA L O W O D A D C M E P U L AO R O O E R Club R N R L L N DO OR E S O

E O Y N R D

Jurys Inn WESTFIELD CHERRY ORCHARD ROAD / ST GEORGE’S HOUSE & RUSKIN SQUARE COLLEGE ROAD ROYAL MAIL SITE 1 LANSDOWNE ROAD SAFRON SQUARE O O A

R Subway R R D A

2 O O N D 71 N D O AO

A Jobcentre M A 98 A O

D R 1 T D L

D N A O D

Plus I NI

L A Planning Granted MORELLO QUARTER MID CROYDON MASTERPLAN: 1,980,000 sq ft DEVELOPMENT Planning Granted Construction Started, H D L I 2 D Planning Granted D G D B

N OA D N W O 5 D A

1 A I N R A M 15 L 4 1

24 O Construction Starts 2015 775,000 sq ft Ph 1 Construction Started Part Completed M Welleslesley W R 2 O U R

RUSK R Planning Granted Planning Granted • 55 storey tower – UK’s tallest 2 O Cennttralrale D Royal Mail • 8 to 21 storeys A D R A R Road Southern D Sorting & A Construction Started Y Y T N O House • New Westfield Shopping Centre • 5 buildings residential tower • 44 storey tower New Life O N T Enquiry Office ING D 69 35 Christian R 1 • St George’s House • 15 and 37 storey tower • Residential (201 units) RR C W 3 O A ROA O 2 E 6 43 J UBILEE Centre D CHA CENTRAL U R L Y 11 E SLE East 57 H N T E • Retail (1,469,835 sq ft) • 4 buildings including • Residential (625 units) • Offices (180,000 sq ft) • Residential (755 units) BRIDG E S L E R O WELL OV G R T E 62 A (formally Nestlé tower) • Hotel (225 rooms) • Retail (20,000 sq ft) Tamworth Road House of A Y D D D D I S O A R F D Croydon C O M E R A AMP B Resource Centre 2 R Fraser O (91,311 sq ft additional from existing) a 55 storey tower • Offices (22,000 sq m) • Residential (397 units) • Commercial (22,389 sq ft) I T R O 1 Lebanon H House No. 1 Croydon • 24 storey tower • Residential (159 units) R New Life 2 O N D 2 W O W EL E S LE Y W R O A D A E Travelodge 2 N E Christian D MM Y N W EL E S LE Y I R O U AV ENU Road • Offices (20,678 sq ft) • Residential (433 units) • Retail (1,000 sq m) • Members health club Developer is Berkeley Homes M CROYDON L A DR A L L W 3 C School E D I NG 2 • Residential (288 units) • Basement car park (55 spaces) Y 3 D A A D D I S C O M B E ’ S RO A R B N Whitgift Subway T. C LAI 69 D R O A D P S T A U T O Shopping Centre 4 R • Residential (up to 600 units) • Hotel 4* (17 storey) • Car Park • 4* hotel (217 rooms) 30 3 A R O R

A N 9 Reeves 3 M E Y O R Baptist W L A 7 R O Waitrose A G O E D L E T R Developer is Legal & General Developer is Phoenix London O R A A W K E Chartis E R C Chapel T Electric D H H T E R S R D • Leisure (176,831 sq ft) • Community Hub (165 suites) • Health club H U 48 Corner T R E E R C P T Building K D

House A H L S 74 T Allders E Developer is Stanhope PLC A United L E D N C G T E Y and Delancey & Regional R S O R Reformed H F E E G I • New car parking • Serviced apartments (22 units) • 127 car spaces R I E R D George Church T O S / Schroders A K I 1 H C A RRI O N Almshouses G A T D EN R Underpass R ES C L P R O C C T H A R E I D • Offices (65,000 sq ft) T 12 E D D Street 68 L O D E T O O E Developer is Westfield Developer is Guildhouse Rosepride Y R STR S T A I F I

B D ’ G E Sainsbury’s OA E S E O R G E R N G 14 E 13 M T R Y C OLL R O 5 100 A First Church of N R U R

16 BOUB D O Christ Scientist K I P and Hammerson Developer is Menta Redrow FAIRFEILDB 2 35 R E E Church E N A L K R A P V E S D R O A E T Z L E D E A N A H A L C O R N E R OH E Unicorn O A D I 77 A N R N 109 M E 18 Z L E D D A K T 12 H A E T E Centre M I P E SChurtreecth S TThe Salvation A TR R A E S G Y House of T 115 D L T R K L R 1 A Croydon 83 26 H U P 48 T T Army R K S Y Reeves 17 E N E L R IL S College H R A H E L L R T 5 E C B

D R R T 262 O

E U Croydon R C OA E K H 34 I N H R T T O E P I K E L U E 7 E TU RN C R C R V S T T A O W H U S C L C R C H County L E U H CE N V I L 76 D A G R P N R R LA D L O I A R E

2 N 15 A YA 15 and 2 D P S Croydon K R Vue I 6 Church E K Croydon D G 6 N Crown E re 8 OL O College Park Hotel Hall L M N Minster E L Courts 9 10 11 12 13 1411 15 Old Palace 5 F Green e 25 11 A of John Whitgift A D

O Subway T O W R School ke Croydon C H E P S 136 First Steps Steps R A M M D E A R C A D E A T H Higher Education O D Day Nursery R D 3 D E A R E L Y College F I F S OA I R O N ’ S Footbridge F A R O 46 20 RT I E S Fairfield V E E O U Croydon is C E E T Croydon L R R R EY HIGH STREET T R Old Palace E S D D E K A T H A R I N Halls A LA O N G Magistrates’ Court R A of John Whitgift HA E War P R E XC A School QU S D Memorial S T L E P Ryland R E I O L D Subway R F A I FA I A 22 Old Palace T R F I House F E L Millets D P of John Whitgift Pumping AT H K R School Croydon Town Hall, D 10 Station U E ROA 28 94 E N Central Library and The Queen’s Y D A V 20 A T H E poised to A L

W 6 E

O H 1 Museum Gardens RC A D A D B R

O 20 K WA L F 13 N C N T 58 M I L L I R E O A H D 2 H

L L 2 C P

13 H A 5 O 2 5 A R T

3 R Access L A O R E

O 54 A S D 74 L L R O A T A

Y E

O W L E Croydon W H E N 3

A S 5

S R D Tudor Arch D

29 L A N D

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1 A

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C E R G

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E R 63 K 6 E S D L H D C become the T A O 2 A A R Games Courts O L A W R A 43

T 80 16 E O D T R E T K T S D D R A A R N R O A O B E D S R O O I E N A R R P M E 58 O F R E TI H R O A D R E G L A A N M E R B A P A C R 7 R N P

A S 4 N 1 A T O B C 11 R O 89 S H B V F M E E D E 13 A O A Subway YE R N

E NA F E L L

R W S

T A Park Hill Infants

100 N C

N T E R E T

E E T R D C S S T T and Junior School

O G I F C R St. Matthew’s L W

T I T Unitarian A H O A O A 9 W N T R D S E G D D Park Hill O A Parish Church E L G E R O L A N D E D R I D Church R economic A E E R D 40 D D R Edridge Road 1 909 S A 55 A D E E T T R O Friends 6 S FAW C V 3 U 56 O Community R 1 I C Y N Jeanette Meeting C L N 51 Health Centre H F E S Wallace House U

Y R (NHS Walk-in A D House A D PARK A C R U S E R O H E C H H O R O D B E E H 1131 ER Centre) RD 26 7 T

3 S N D 3 R OLD H E I S T O P HE R I C H R 2 A IC PAT H I H

O O O W R E N D Netball Court C

R S A D H G EG 1 D H T

powerhouse in T H Y A R R T W N O O R 14 45 O O H VERTEX ALTITUDE 25 INTERCHANGE 101 ST GEORGE’S STREET TABERNER HOUSE AND CIVIC HUB (FORMER BERNARD O A N D L A W

S O N D R T P

E E R T S A 71 L 59 ST ANNE’S HOUSE L E 36 I HILL H C E S A A C 19 R S P T TOWN L E R Tennis Courts O D . B Completed 2009 Completed November 2013 Planning Granted D 6 QUEENS GARDENS SITE WEATHERILL HOUSE) H P O A E T 2 A M T T R E A O E R Construction Underway M E U T S D N A R P L O D R E D U 203 39 U S L A 1 CALAT A R P RE 39 D Construction underway C H L T E I S E S Planning Granted Completed May 2013 T A 1 T P T R O A D S P S T O C K E 13 • 13 storeys • 25 storey tower • 10 storey office building • 17 & 32 storey office buildings 220 W O O D 30 south London M Tennis Court H O E L D O N U 51 T C P 1 I • 13 storeys SH 2 P H A Construction Underway C W E T W L P IN 18 32 R E O • Residential (98 units) • Residential (115 units) • Offices (180,000 sq ft) • Residential (300 Units) • 3 buildings of 5, 8 and 13 storeys D A ST EA L E E 99 M T I C L U D S 2 L A • Hotel (144 rooms) N R O 23 S 23 5 E D 1 53 Leon 19

88 K 38 • Serviced apartments (55 units) • Car parking (400 spaces) • 5 buildings of 6, 9, 9, 13 • Offices (240,000 sq ft occupied 6 A 5 26 E Subway House M Developer is Durkan Developer is Fairfield V I N • Residential (46 units) D

S O U 31 55 L T P E Subway 44 H P C W 1 R and 32 storeys by Croydon Council) 32 R E A Croydon U 3 H E N A 23 A V D S A ’S U O N A S R Developer is CarVal I R N DL M M U L G R A H V E R Fire Station E T O A D I C 1 V I E N

L H Lantern Hall G E 256 L Developer is Bravo Hotel Group L 265 R N S T R E E • Residential (420 units) • Car parking (400 spaces) T O UE R E 12 E Day Centre A H Q Park Hill L Investors/Canmoor R D O A D 6 R Providence M 1

Subway A E R I A L I N C L O S E

O Water Tower C D

R E Chapel S Croydon • Retail (2 units) H St. Andrew’s H 49 T Park Hill S Developer is CCURV E E R T R W E Spiritualist A L P Boris Johnson, Mayor of London Church Halls T O Subway 75 R

W S Church K T E E E S C T E TR E T E S 285 V R A T N EST E E I R A W H 14 R Developer is CCURV D L E 20 E T C T H A N 1081 D L L V D R I A C E 3 R A H O P L A I 1 E S O D R 22 T P A L T T E G S U P Y C O P Waddon N D A 1 E 1 N L E D L E N R I N A P W O A D F E E M E 312 42 R A V I DG St. Andrew’s R N D BR 1 O 42 O TH D U C A Y S O Church O O T R O M B E S T R D H E C E E T L L C 9 92 I 2 O Ruskin H S 40 TA 27 O 127 R N

D M 2 House E H O A B Subway E W P 2 E O O R T R R O A 69 12-32 HIGH STREET CR0 1RE S O INR CENTRAL CROYDON GRANTS ENTERTAINMENT CENTRE CROYDON ’ PRIME LEISURE INVESTMENT 6 D 7 W A E Cambridge E T R D South Croydon A D N 37 W Tutors College A . 40 30 T 17 57 S 1 2 60 55

24 Map not to scale. For indicative purpose only. 5th to 2nd FLOOR 1st FLOOR (indicative) SURREY STREET SURREY STREET

VACANT

VUE

VUE TIGER TIGER

DESCRIPTION 5th to 2nd FLOOR 1st FLOOR ACCOMMODATION (indicative) SURREY STREET SURREY STREET HIGH STREET Grants Entertainment Centre was developed in 2001 The bar/restaurant elements are accessed via the High Street 5th to 2nd FLOOR 1st FLOOR The property provides the following gross internal areas: HIGH STREET (indicative) (eastern grade II listed façade retained) to provide Croydon’s at ground floor and provide 52,136 sq ft of bars/nightclubs SURREY STREET SURREY STREET VACANT only dedicated town centre leisure scheme. The property including Tiger Tiger (1 of 5 in UK) providing 7 uniquely themed FLOOR SQ FT SQ M which totals 160,840 sq ft over 7 floors is divided into 8 bars under one roof, JD Wetherspoon and Reflex. Nando’s FIFTH 3,420 317.7 VUE VACANT separate units, ranging between 3,121 sq ft and 71,006 sq ft. occupy a prominent 3,121 sq ft unit with direct access from GROUND FLOOR BASEMENT FOURTH 27,785 2,581.3 SURREY STREET the High Street. A number of the units utilise outside seating SURREY STREET The Mall which is accessed via the High Street to the front or VUE along the front elevation. THIRD 7,143 663.6 Surrey Street to the rear provides access to a large atrium with SECOND 30,930 2,873.5 escalators and a 13 person (1,000kg) lift up to the 10 screen There is one vacant restaurant unit (4,625 sq ft) which is VUE TIGER VACANT TIGER VIRGIN multiplex VUE Cinema which anchors the scheme. The cinema accessed via the mall and is split over ground and 1st floor FIRST 26,607 2,471.9 ACTIVE has recently been upgraded to digital projection and offers an levels, with internal staircase. VUE TIGER TIGER GROUND 22,543 2,094.3 LOADING exceptional viewing experience. BAY Servicing is provided by a dedicated loading bay accessed BASEMENT 16,168 1,502.1 REFLEX To the rear of the property with access via the Mall or from Surrey from Middle Street, providing dock level access to a goods lift. REFLEX Street is a highly specified Virgin Active Health Centre which MEZZANINE 1,351 125.5 The nearest public car park (Qpark) is located immediately TIGER includes a 20m pool, Spa, Aerobics Studio and V-Cycle Studio. HIGH STREET TIGER to the west of the property provides 685 spaces is accessed HIGH STREET BASEMENT 2 24,893 2,312.6 NANDOS LLOYDS BAR via a link bridge to the subject property. HIGH STREET TOTAL 160,840 14,942.5 HIGH STREET LLOYDS BAR TIGER

Individual tenant demisedNANDOS areas are detailed in the TIGER Central Croydon’s only dedicated leisure scheme GROUND FLOOR BASEMENT tenancy schedule. SURREY STREET SURREY STREET HIGH STREET GROUND FLOOR BASEMENT HIGH STREET SURREY STREET SURREY STREET VACANT VIRGIN BASEMENT 2 ACTIVE VACANT VIRGIN LOADING ACTIVE BAY SURREY STREET REFLEX REFLEX LOADING BAY REFLEX TIGER REFLEX TIGER VIRGIN TIGER NANDOS LLOYDS BAR ACTIVE TIGER LLOYDS BAR TIGER NANDOS LLOYDS BAR

NANDOS TIGER LLOYDS BAR TIGER

NANDOS TIGER HIGH STREET HIGH STREET

HIGH STREET HIGH STREET BASEMENT 2

8 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE BASEMENT 2 PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 9 SURREY STREET

Plans not to scale. For indicative purpose only. SURREY STREET

VIRGIN ACTIVE

VIRGIN ACTIVE TENURE

The property is held Freehold. A copy of the registered title can be provided on request. ital Pursuant to the planning permission for the property,3 there is a turning areaHo swithinp the service

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10 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT 4 IN CENTRAL CROYDON 11 7 PH

4 Croyd

5 For indicative purpose only.

Library

Surrey 5 TENANCIES

• The property is let to 6 tenants on 7 leases. UNIT TENANT AREA SQ FT LEASE START LEASE EXPIRY NEXT RENT CURRENT INCOME RENT £ COMMENTS • The current passing rent is £2,830,636 per annum. On letting the vacant units the income REVIEW PER ANNUM PER SQ FT increases to £2,876,886 with contracted rental uplifts in March 2017 to £3,116,086 and GF: 2,009 March 2022 to £3,393,384. Unit A Nando’s Chickenland Ltd BST: 1,112 25-Mar-02 24-Mar-27 25-Mar-17 £65,000.00 £20.83 Assumed term at review is unexpired term or 15 years, whichever is greater. Assumed area for rent review purposes is 3,144 sq ft. Total: 3,121 • The average weighted unexpired term is 12.36 years term certain (no break options). JD Wetherspoon plc Unit A1 BST: 3,564 24-Jun-02 23-Jun-27 24-Jun-17 £55,380.00 £15.54 Rent review based on 90% of the psf uplift determined under the ‘Principal Lease’ namely (revised rental over 7,830 x 90%) multiplied by 3,356 sq ft. • The leases are held on effective FRI terms. (T/a Lloyds No1) Stonegate Pub Company Ltd GF: 6,946 • Excellent tenant covenant profiles with 82% of rental income from D&B 5 A1 rated covenants. Rent deposit of £111,500 + VAT. Assumed term at review 15 years or unexpired residue, whichever is greater. GIA GF assumed 6,900 sq ft Unit B (T/a Reflex) BST: 2,585 01-Aug-02 31-Jul-27 01-Aug-17 £223,000.00 £23.40 and BST 2,500 sq ft. Tenant paying rental monthly. • Individual tenancy details are summarised in the tenancy schedule. (AGA: Mitchells & Butlers Retail Ltd) Total: 9,531 JD Wetherspoon plc GF: 4,081 Unit C (T/a Lloyds No1) BST: 3,870 24-Jun-02 23-Jun-27 24-Jun-17 £156,600.00 £19.70 At rent review the assumed term is the unexpired term. Total area is assumed at 7,830 sq ft. (AGA: Scottish & Newcastle Ltd) Total: 7,951 GF: 7,399 A3D2 Limited BST: 1,329 Units D/E/J (T/a Tiger Tiger) 25-Dec-01 24-Dec-26 25-Dec-16 £498,000.00 £16.02 Assumed term at rent review is for 25 years. (Surety – Novus Leisure Ltd) 1F: 22,362 Total: 31,090 BST: 3,708 Virgin Active Health Clubs Ltd BST2: 24,893 Assumed area for rent review purposes is 28,500 sq ft. Assumed term at review 25 years. Tenant is not obliged to remove the swimming pool Unit F 15-Mar-02 14-Mar-27 15-Mar-17 £327,750.00 £10.94 (Surety: Virgin Active Holdings Ltd) MEZZ 1,351 and tiling on expiry. Total: 29,952 1F: 1,728 2F: 30,930 Rent reviews are based on the higher of ‘Market Rental’ (assumed term 15 years) or 3% pa compound applied to the original rental of £1,117,492.50 pa. Vue Entertainment Ltd 3F: 7,143 Multiplex Cinema (Surety: Vue Entertainment Holdings 01-Mar-02 28-Feb-27 01-Mar-17 £1,501,816.20 £21.15 Minimum uplifts March 2017: £1,741,016, March 2022: £2,018,314. Marketing Fund Contribution Cap of £8,000 per annum and a cap of £1,200 per annum (UK) Ltd) 4F: 27,785 towards the Management Suite. Assumed area of the first floor for rent review is 1,896 sq ft. 5F: 3,420 Total: 71,006 1F: 2,517 Unit K & L Vacant GF: 2,108 Total: 4,625 Management Suite £3,090.00 Reclaimable under the service charge. TOTAL 160,840 £2,830,636.20 Let vacant units (£10 psf) £2,876,886.20 March 2017 Vue Fixed Uplift £3,116,086.00 The Landlord contributes 50% towards marketing budget. All tenants contribute to a service charge which is administered by our client. March 2022 Vue Fixed Uplift Further information is available on request. Various tenants have machinery on the roof. £3,393,384.00

12 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 13 COVENANT SUMMARY

The rental income at Grants Entertainment Centre is secured against an excellent tenant covenant profile. 82% of the income is secured to D&B 5 A1 rated covenants offering excellent income security.

TENANT/GUARANTOR YEAR TO TURNOVER OPERATING PRE TAX POINTS SHAREHOLDERS' D&B RATING % RENTAL PROFIT FUNDS (CURRENT) INCOME Nando's Chickenland Limited 24/02/2013 431,369,000 78,145,000 71,297,000 55,822,000 5 A1 2.30% UNIT A 26/02/2012 373,869,000 60,798,000 53,859,000 34,385,000 JD Wetherspoon plc 28/07/2013 1,280,929,000 111,310,000 76,943,000 214,915,000 5 A1 29/07/2012 1,197,129,000 107,318,000 72,363,000 169,644,000 7.49% Scottish & Newcastle Ltd 31/12/2013 – – 59,000,000 3,125,020,000 UNIT A1 & C (Guarantor to JD Weaterspoon plc for Unit C only) 5 A1 31/12/2012 – (6,800,000) 65,100,000 3,061,700,000 Stonegate Pub Company Limited 29/09/2013 470,272,000 16,373,000 (10,172,000) 153,638,000 5 A – 30/09/2012 484,263,000 22,202,000 14,573,000 180,404,000 7.88% UNIT B Mitchells & Butlers Retail Limited 28/09/2013 1,611,000,000 248,000,000 119,000,000 2,978,000,000 (Guarantor to Stonegate Pub Company Limited) 5 A1 01/07/2012 1,631,000,000 218,000,000 84,000,000 2,872,000,000 A3D2 Limited 30/06/2013 125,253,000 (5,654,000) (5,824,000) (12,012,000) N2 01/07/2012 133,758,000 4,493,000 3,601,000 (6,115,000) 17.59% Novus Leisure Ltd 30/06/2013 – – (7,660,000) (15,332,000) N2 UNITS D,E & J (Guarantor to A3D2 Limited) 01/07/2012 133,758,000 4,650,000 656,000 (5,459,000) Virgin Active Health Clubs Limited 31/12/2012 120,240,000 2,626,000 (3,089,000) 46,534,000 5 A1 31/12/2011 117,063,000 16,993,000 11,167,000 35,999,000 11.58% UNIT F Virgin Active Holdings Limited 31/12/2013 - 500,000 (4,354,000) 163,852,000 (Surety to Virgin Active Health Clubs Ltd) 5 A1 31/12/2012 - 500,000 (6,130,000) 168,206,000 Vue Entertainment Limited 28/11/2013 258,111,000 29,948,000 28,034,000 188,736,000 5 A1 28/11/2012 257,952,000 31,057,000 28,893,000 168,258,000 53.06% Vue Entertainment Holdings (UK) Limited 28/11/2013 – – – 100,971,000 (Surety: to Vue Entertainment Ltd) 5 A1

MULTIPLEX CINEMA MULTIPLEX 28/11/2012 – – – 100,971,000

14 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 15 TENANT COVENANTS

NANDO’S CHICKENLAND LTD: T/A NANDO’S JD WETHERSPOON PLC: T/A THE MILAN BAR (LLOYDS NO 1) STONEGATE PUB COMPANY LTD: T/A REFLEX A3D2 LIMITED: T/A TIGER TIGER VIRGIN ACTIVE HEALTH CLUBS LTD: T/A VIRGIN ACTIVE VUE ENTERTAINMENT LTD: T/A VUE (GUARANTOR MITCHELLS & BUTLERS RETAIL LIMITED) (GUARANTOR NOVUS LEISURE LIMITED) (SURETY: VIRGIN ACTIVE HOLDINGS LIMITED) (SURETY: VUE ENTERTAINMENT (UK) LIMITED) Nando’s is a highly popular South African casual dining restaurant J D Wetherspoon plc is a FTSE 250 company and one of the group with a Mozambican/Portuguese theme. Founded in 1987, UK’s largest pub operators with in excess of 900 pubs and Stonegate operates over 620 pubs and bars, across the UK, A3D2 Ltd and Novus Leisure operates four well-known brands Virgin Active is a chain of health clubs in South Africa, Vue Entertainment Limited is a multiple award winning Nando’s operates about 1,000 outlets in 30 countries. hotels nationwide. The company was founded in 1979 and and operate a wide variety of formats: from high-street pubs Balls Brothers, Tiger Tiger, Lewis & Clarke and Night Life Namibia, Italy, Spain, Portugal, Australia, Singapore, Thailand operator of modern multiplex cinemas with 82 cinemas and employs 33,000 staff. and traditional country inns to local community pubs, student which represent 47 unique bars, restaurants and late night and the United Kingdom. The company launched in 1998 779 screens in the United Kingdom attracting over 35 million In the UK Nando’s operate over 280 branches and employ pubs and late-night bars and venues. They operate a number experiences in the UK. The company employs approximately customers per annum. around 8,000 staff. Trading in the subject property commences Wetherspoons has announced plans to open 250 pubs over In 2011 Virgin Active announced the takeover of UK gym operator of well-known brands including Yates, Slug and Lettuce, 2,500 people. 11.30 am daily providing a constant food offer throughout the the next five years. As part of this plan they have opened 12 Esporta’s 55 clubs increasing the UK business to 124 clubs. The company was formed in 2003 with the acquisition of Missoula Montana, The Living Room and Scream. day and evenings up to 11 pm (midnight Friday/Saturday). new pubs in the last 3 months. The subject unit which has a The subject property is one of seven Tiger Tiger branded Warner Village Cinemas in the UK and has since expanded Virgin has approximately 2,200 members of this branch, with capacity of approximately 800 is branded The Milan Bar and The lease is guaranteed by Mitchells & Butlers Retail Limited units within the UK, others being London, Cardiff, Leeds, aggressively across the continent, opening cinemas in The subject unit provides approximately 120 seats and the a total capacity membership in the order of 2,500. The pricing operates under the Lloyds No. 1 chain. The unit is open from who are the largest operator of restaurants, pubs and bars in Manchester, Newcastle and Portsmouth. Germany, Denmark and other European countries. Over the option for takeaway orders. at Grants is in the mid-tier at approximately £59 per month 8am until midnight Mon-Wed and Sunday, and until 2 am the UK. last three years, it has doubled the number of cinemas under The company is owned by LGV Capital and Hutton Collins, assuming a 12 month contract. Thursdays and 3am Friday and Saturdays. its ownership from 70 to 146 and nearly doubled its screens who purchased Novus for £100m in 2012 from 678 to 1,321 including in October 2013 the acquisition of Multikino, one of Poland’s biggest cinema chains, for €48m. In June 2013, Vue was acquired by OMERS Private Equity. OMERS is one of Canada’s largest pension funds with over $60bn in net assets and $6 bn under management through the Private Equity brand. The entire Vue executive team, including Tim Richards (CEO), reinvested in the transaction.

16 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 17 LEISURE COMMENTARY INVESTMENT MARKET COMMENT ASSET MANAGEMENT VAT EPC

The leisure industry has seen a seen a continued improvement throughout 2013 and 2014 given Throughout the last 18 months there has been a marketed increase in transactional activity • Let the vacant A3 unit (4,625 sq ft) to increase the income The property has been elected for VAT purposes therefore VAT The property has an EPC rating of E. Unit E and K/L have been the sustained recovery in the economy. in the Leisure investment sector. Approximately £675 million was transacted in 2013 showing by £46,250 per annum. will be payable on the purchase price. It is intended that the sale separately assessed at a rating of C and B respectively. Further a 30% increase to the circa £450 million transacted in 2012. will be treated as the Transfer of a Going Concern (TOGC). information is available on request. Over the course of the economic downturn consumers demonstrated strong fiscal responsibility • Consider changing the tenant mix towards family A3 dining – paying down debt, seeking greater value for money for everything they bought, and reducing The increasing investor appetite has been driven by the sectors resilience throughout the uses to improve the family offer at the scheme and boost their debt levels and increasing savings. In 2013, they increased their spending above inflation recession and consistently low vacancy/void rates. The leisure sector has outperformed the footfall to the Mall area and Cinema. for the first time in three years. core asset classes, including retail, office and industrial, with an IPD total return of 8.42% • Improve branding of the scheme, which is currently dated. CAPITAL ALLOWANCES DATAROOM from Q2 2003 to Q2 2014. The entertainment sector experienced the highest year-on-year spend growth, up by +9.3%, • Let the ground floor lighting boards in Mall area to tenants as extra spending went mainly on enjoying ourselves and treating the family. This strong demand has led to a lack of quality stock for well-located and configured assets. to improve signage. No capital allowances are available to a purchaser on Access to a legal dataroom can be provided on request. Land Securities acquisition of the remaining share in X-Leisure in Q4 2013 for £112 million As consumers felt more confident about spending money on taking the family to restaurants, this transaction. was testament to the sector’s strong fundamentals and reflected their desire to gain further • Work with Croydon Council to enhance the street scene or going to see the latest blockbuster with friends, spending at restaurants grew +11.8% in exposure to the sector to improve the approach to the building. 2013 compared to last and spending on trips to the cinema and theatre was up +6.9%. Grants Entertainment Centre is the only dedicated leisure scheme in the heart of Croydon and • Consider surrender of part of Cinema demise, to allow for Tenant demand for the best leisure schemes and locations has continued to be strong, is expected to benefit significantly from the substantial growth of Croydon as a major retail alternative uses such as Casino or bowling type uses. especially within London and key regional city centres. Further expansion in the cinema sector and residential hub within London. (over 60 cinema developments scheduled to open between 2014 and 2017), combined with • Potential to generate revenue from an improved website. an increasing number of active restaurant and Health & Fitness operators should continue • Raise profile and increase identity of the scheme. throughout 2014. Date Town Anchor Tenants Purchaser Sale Price Net Initial Yield Aug-2014 Colchester Odeon & Orchid CBREGi £13.65 m 6.1% Odeon Aug-2014 Stoke on Trent Tenpin Ltd, Odeon N/A £14.5m 7.0% Jul-2014 Swindon Cineworld, Morrisons, IGNIS £40.0 m 4.95% Regent Circus Prezzo, Nando’s Eating out is the UK’s No1 leisure activity Jul-2014 Birmingham Cineworld, Pure Gym, Valad £33.0 m 8.0% Five Ways Grosvenor Casinos – 50% of the UK population eats out May-2014 Llanelli Odeon, Travelodge, Green King IGNIS £14.0 m 7.4% monthly or more frequently. Mar-2014 Middlesbrough Cineworld , DW Sports, Nando’s Legal & General £21.25 m 6.9%

18 GRANTS ENTERTAINMENT CENTRE 12-32 HIGH STREET CROYDON CR0 1RE PRIME LEISURE INVESTMENT IN CENTRAL CROYDON 19 PRICE

Our client is seeking offers in excess of £34,525,000 (Thirty four million, five hundred and twenty five thousand pounds), subject to contact and exclusive of VAT. A purchase at this level will provide the following yield profile after purchasers’ costs of 5.80%.

Net Initial Yield 7.75% Let vacant unit K&L 7.88% March 2017 Vue fixed uplift 8.53% March 2022 Vue fixed uplift 9.29%

INVESTMENT CONSIDERATIONS

• The only dedicated leisure scheme in central Croydon. • Located in the heart of Croydon, one of London’s biggest growth areas with over 9,500 new homes planned. • The immediate area is benefiting from significant infrastructure improvements. • Excellent transport links and parking provision in central Croydon. • Modern 2001 built building specifically for leisure type uses. • Highly attractive long term income, with 12.36 years AWULT. FURTHER DETAILS • Excellent tenant diversity from strong tenant covenants. 82% of the income is secured from D&B 5 A1 rated covenants. PETER FLANDERS JOHN BLACKWELL SIMON MARTIN • Deliverable asset management opportunities to enhance [email protected] [email protected] [email protected] scheme profile and income. • Attractive income profile. TEL 020 7409 7828 FAX 020 7491 9121

Disclaimer Notice Messrs Joiner Cummings for themselves (and their joint agents where applicable) and for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection. (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is October 2014.

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