INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION 103-105 HIGH STREET, BROMLEY PRIME REVERSIONARY RETAIL INVESTMENT OPPORTUNITY INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION INVESTMENT SUMMARY Bromley is an affluent Greater London borough, only 16 minutes to Central London by rail. 100% prime freehold High Street retail investment, located close to Marks & Spencer, H&M and the entrance to the Glades Shoping Centre. Bromley High Street is one of South London’s premier retailing locations and Bromley is ranked 20th out of all PROMIS Centres in terms of population size. Freehold Let to the multinational covenant GAP at a rent of £170,000 per annum expiring 24th December 2023 with 6.95 years unexpired. Reversionary with a rent review due in December 2018. Potential future residential conversion of upper parts subject to planning. Our clients are seeking offers in excess of £2,775,000 (Two Million, Seven Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT which reflects the following yield profile net of purchases cost at 6.42%. Net Initial yield - 5.76% Reversionary yield - 6.38% Equivalent yield - 6.15% True Equivalent yield - 6.39% 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 2 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION LOCATION Bromley is a popular London suburb located just 11 miles south east of Central London and 6 miles east of Croydon. It is the administrative headquarters of the London Borough of Bromley, the largest of London’s 32 boroughs. Nearby towns include Beckenham to the west (2 miles), Orpington to the south-east (5 miles), Greenwich to the north (6 miles) and Dartford to the east (11 miles). A406 Hornchurch A1 A12 Ilfold Bromley is situated within the M25, London’s orbital Wembley motorway, 9 miles from Junction 3. The A23 and A20 lie A40 Barking Dagenham to the west and east of the town respectively, providing extremely quick access into Central London with a drive Hayes A40 London A13 time of just 30 minutes. A312 A13 M4 Bromley benefits from two mainline railway stations, A102 A4 which provide direct links to both London Victoria and London Blackfriars in fastest journey times of 16 minutes A282 Richmond A205 and 34 minutes respectively. Bexleyheath A214 Dartford Twickenham Bromley also benefits from its convenient access to some A2 of the UK’s busiest airports including London Gatwick A23 Sidcup located 25 miles to the south west and London Heathrow Kingston A20 Upon Thames 55 miles to the north west via the M25. M3 Bromley A24 Croydon Orpington A240 A232 M25 M20 A3 A3 Epsom A243 A217 M25 A23 M26 Leatherhead M25 Caterham M25 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 3 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION DEMOGRAPHIC PROFILE RETAILING IN BROMLEY Bromley’s catchment encompasses a total population of The total retail floorspace in Bromley town centre is Bromley’s second managed centre, the Mall Shopping 2.3 million residents across much of South London and estimated at 1.24 million sq ft (PMA 2016). Bromley’s Centre is a smaller, partially covered scheme totalling the surrounding areas of Kent, with a core catchment considerable retail provision is dominated by two main approximately 116,000 sq ft, providing a secondary, population of around 406,000. The town is ranked 4th pitches, consisting of the High Street and the Alaska value-led retail offer. for shopper population across London centres (excluding Permanent Funds Glades shopping centre, which Central London) and 20th nationally (PMA 2016). combine to provide the vast majority of Bromley’s The High Street is home to retailers such as Primark, retail provision. The Glades Bromley compromises over Next, JD Sports and Topshop and also benefits from The most affluent ACORN categories, ‘Affluent Achievers’ 500,000 sq ft and is anchored by Marks & Spencer a number of convenience stores and banks which sit and ‘Rising Prosperity’, account for 54% of the total (159,992 sq ft) and Debenhams (105,061 sq ft). Other towards the southern end of the pitch. These units catchment population and 64% of the core catchment retailers within the centre include H&M, New Look, combined with Bromley’s thriving leisure sector make population, significantly above that of both the UK and Zara and Boots, as well as a strong mix of key high Bromley High Street one of South London’s busiest London averages and ranking the town 2nd in the top street multiples and first-class shopping brands retailing locations. The High Street also hosts an open 20 London centres for wealth (excluding Central London). including Apple, Massimo Dutti, Karen Millen, Hobbs, air market that operates three days a week significantly Jo Malone and Mac. boosting footfall in the locality. Bromley contains a particularly high proportion of adults of working age (25-44), and is seen as a home for affluent commuters with a high propensity to spend. 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 4 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION N For illustrative purposes only 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 5 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION SITUATION The subject property is situated in a prime trading location on the pedestrianised High Street, adjacent to Clark’s shoes whilst in close proximity to H&M, HMV and Tiger. DESCRIPTION The property comprises a well configured retail unit arranged over four floors, providing sales accommodation on ground, basement and first floors served by a passenger lift and sales staircase, with additional ancillary accommodation on the second floor. The property is serviced from the rear. ACCOMMODATION The floor areas are detailed within the lease and can be set out as follows:- Accommodation Area (sq ft) Area (sq m) Ground Floor Sales 2,156 sq ft 200.3 sq m Ground Floor ITZA 1,246 units Basement Sales 2,159 sq ft 200.6 sq m First Floor Sales 2,420 sq ft 224.8 sq m Second Floor Storage 979 sq ft 91.0 sq m Total 7,714 sq ft 716.7 sq m 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 6 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING IN BROMLEY GOAD SITUATION DESCRIPTION ACCOMMODATION TENURE TENANCY COVENANT RENTAL VALUE VAT EPC PROPOSAL FURTHER INFORMATION RENTAL VALUE The rent passing of £170,000 per annum devalues to a Zone A rent of £108 per sq ft, allowing for A/12 on the First Floor sales, A/14 on the basement sales and A/30 on the second floor, as well as a -5% allowance on ground floor for shape. The composite ITZA is 1,572 Units. It is our opinion that the estimated rental value as of today’s date would lie in the region of £188,500 per annum exclusive. This reflects a Zone A rent of £120 per sq ft taking into account the above analysis. The most salient comparable rental evidence can be set out as follows:- 1. 139-141 High St – (Thomas Cook) Thomas Cook agreed to a lease renewal for a 5 year term, effective from July 2016 at a rent of £112,500 p.a. This rent reflected a headline Zone A rate of £123 per sq ft and net Zone A rate of £116.70 per sq ft. TENURE COVENANT 2. 140 High St – (Deichmann) The property is held freehold. GPS (Great Britain) Limited trading as GAP, operates as an Open market letting to Deichmann in September 2016 apparel retail store in the United Kingdom. It offers apparel, for a 10 year term, at a rent of £225,000 per annum. This accessories, and personal care products for men, women, reflected a headline Zone A rate of £135 per sq ft and a and children. GPS (Great Britain) Limited was established in net Zone A rate of £118 per sq ft. TENANCY 1988 operates as a subsidiary of The Gap, Inc. The summary accounts information can be set out as follows:- VAT The subject property is let to GPS (GREAT BRITAIN) LIMITED, on a 10 year Full Repairing & Insuring lease GPS(Great 30/01/2016 31/01/2015 01/02/2014 The property has been elected for VAT purposes. It is from 25th December 2013 with a tenant break option on Britain) Limited GBP 000 GBP 000 GBP 000 anticipated that the investment sale will be treated as a 25th December 2019, at a current rent of £170,000 per Turnover 306,797 324,546 332,942 Transfer of a Going Concern (TOGC). annum exclusive. Pre Tax Profit -19,409 -12,395 -11,230 The property is subject to an upward only rent review in Net Worth 131,244 67,458 83,334 the 5th year of the term, being 25th December 2018. EPC Experian give GPS (Great Britain) Limited a rating of 60, The tenant renewed the lease in 2014 and we understand which reflects a lower than average risk of business failure. The property has an EPC rating of B42 and further trade well from the premises. information is available on request. 103-105 HIGH STREET, BROMLEY PRIME RETAIL INVESTMENT OPPORTUNITY 7 INVESTMENT SUMMARY LOCATION DEMOGRAPHICS RETAILING