Thistle Express Hotel Swindon • Sn1 1Tn

THISTLE EXPRESS HOTEL SWINDON • SN1 1TN

Rare and highly reversionary Guaranteed by £450+ million Over £1.8 billion of inward Located in the new epicentre 43 year income NAV credit investment into the wider of Swindon adjoining the new Swindon area generating Fleming Way Bus Boulevard 17.6% fixed rental increase in All rent and service charge thousands of jobs and boosting and opposite the Kimmerfields December 2023 with uncapped payments up to date the local economy regeneration site CPI inflation linked uplifts Contractual rental obligations thereafter (with a minimum 1% £25 million of government Kimmerfields is anchored by over the 43 year term in excess P.A. compounded increase) funding secured from the the new c.100,000 sq ft Zurich of £10 million (2x guide price) Future High Streets Fund HQ which is due to complete in 2022

Guide Price: £5 million (£96 psf) | Bids due Tuesday 6th July unless otherwise agreed prior (subject to contract) INVESTMENT SUMMARY

4 We are instructed to seek offers in 1 INVESTMENT excess of £5,000,000 (Five Million Pounds) for the benefit of the Virtual Freehold interest, subject SUMMARY to contract and exclusive of VAT. Pricing at this level reflects a low price per bedroom of only £52,632 and a capital value of just £96 per sq ft, equating to a Net Initial Yield Newly created 999-year Low passing rent of £170,000 Low pricing vs of 3.19% (Reversionary Yield of 3.75% Virtual Freehold per annum (£1,789 per bedroom) reinstatement cost rising 17.6% to £200,000 per in 2023), assuming purchaser’s annum (£2,105 per bedroom) costs of 6.6%. in December 2023, with uncapped five yearly reviews Purpose built and recently Excellent transport to CPI thereafter (with 1% refurbished hotel providing connectivity being just compounded per annum 95 bedrooms across 500m from Swindon Train basement, ground and minimum uplifts) Station and in close proximity eight upper floors to J15 and J16 of the M4 Motorway 5A1 guarantor company with Total GIA of 51,918 sq ft an excellent net asset position (4,823.5 sq m) of £451.8 million in 2020 Located in the heart of Swindon adjacent to the retail core and opposite Kimmerfields, a major GLH Hotels Limited (Greater mixed-use regeneration Let to The Wiltshire Hotel London Hospitality) is one of the and the new commercial (Swindon) Limited and RUNNING YIELD ILLUSTRATION largest hotel owner operators centre of Swindon guaranteed by GLH Hotels in London with over 5,000 Limited DATE GROSS ANNUAL GROSS ANNUAL bedrooms and 130 meeting and RENT* RUNNING RENT** RUNNING event spaces, across 14 hotels, YIELD* YIELD** including the iconic Hard Rock Current £170,000 3.19% £170,000 3.19% Swindon has one of the London, The Royal Horseguards Dec-23 £200,000 3.75% £200,000 3.75% highest employment Rare and highly reversionary and The Tower Hotel Dec-28 £220,816 4.14% £231,855 4.35% rates in the UK and is inflation linked FRI lease with Dec-33 £243,799 4.57% £268,783 5.04% home to a range of major Dec-38 £269,174 5.05% £311,593 5.85% 43 years and 4 months corporate businesses Dec-43 £297,189 5.58% £361,222 6.78% unexpired term certain, with a The hotel reopened as Thistle including Zurich, Amazon, Dec-48 £328,121 6.16% £418,756 7.86% tenant option to renew for two Dec-53 £362,272 6.80% £485,452 9.11% Express Swindon in August Nationwide Building further 15 year leases, providing Dec-58 £399,978 7.50% £562,772 10.56% Society, Intel, Capita and a potential term of 73 years and 2017 following a significant£3.5 Dec-63 £441,608 8.29% £652,408 12.24% Aecom 4 months million refurbishment (equating to 70% of the purchase price) *Assumes 2% CPI from 2023 **Assumes 3% CPI from 2023 5 6 LOCATION & SITUATION

8 2LOCATION AND COMMUNICATIONS

Swindon is the principal commercial and recently undergone a 10 year, multi- BIRMINGHAM administrative town within the county of billion pound upgrade to provide route 1 HR 48 MINS Wiltshire, located approximately 30 miles electrification, station improvements and (48 km) south west of Oxford, 40 miles (64 track upgrades. There are on average 165 km) east of Bristol, 40 miles (64 km) west trains per day to London Paddington Station of Reading and 80 miles (129 km) west of with a fastest journey time of 49 minutes Central London. and an average of 46 weekday trains per day to Bristol Temple Meads with a fastest train OXFORD Swindon benefits from excellent 32 MINS journey time of 36 minutes. SWANSEA connections to the national road network, 1 HR 51 MINS with 1.9 million people living within an hour’s Swindon is set to benefit further from a drive. The town is strategically located just proposed Western Rail Link with Heathrow CARDIFF LONDON 54 MINS BRISTOL 49 MINS 5.5 miles (8.8 km) north west of Junction 15 Airport, which will significantly reduce rail 36 MINS READING 24 MINS and 4 miles (6.4 km) north east of Junction journey times and improve connectivity 16 of the M4 Motorway. to Heathrow Airport from the Thames Valley, with an expected journey time of Swindon is located on the Great Western approximately 50 minutes from Swindon. SOUTHAMPTON Railway on the mainline route between 1 HR 45 MINS London and Bristol. The network has EXETER 1 HR 35 MINS

Swindon has excellent access to London Heathrow Airport and Bristol Airport, both located approximately 1 hour by car and provide direct flights to national and international destinations. Swindon is also set to benefit further from a proposed Western Rail Link with Heathrow Airport.

10 3 SITUATION TO LONDON HEATHROW AIRPORT 18 17 OXFORD Thistle Express Swindon is situated serving as Swindon’s main retail offering, AND READING on Fleming Way at the new epicentre with a number of national brands of Swindon town centre, within close including H&M, Metro Bank, Schuh, proximity to a number of major Deichmann, Tesco and Superdrug. 21 businesses, several public car parks, Further retail provision is provided at Swindon’s retail core and the new 9 The Brunel Shopping Centre just 450 13 24 commercial and cultural district of 16 14 metres west, which offers over 100 15 12 the town. 20 shops, restaurants and cafes, along with 10 19 Sheppard St 3 Fleming Way The hotel is strategically situated on a McArthur Glen Designer Outlet Centre, 22 6 highly visible corner site in the town located 1.3km (0.8 miles) west of the hotel. 1 11 4

centre and is just 500 metres (5 minute 2 Princes St Swindon has a rich art and cultural walk) from Swindon Train Station and offering, with the proposedTo Bristol, Walesnew Cultural and the 7 is in close proximity to the central Quarter located withinSouth the West Kimmerfields 5 businesses district which includes a development. Just to the south along number of major businesses such as TO BRISTOL, 25 Islington Street lies the Wyvern Theatre, WALES AND THE Zurich, Aecom, Network Rail and Capita. SOUTH WEST 23 26 the Artiste Complex, the Museum of Commercial Rd Located immediately adjacent to the Computing along with the Town Hall 27 29 Combey St 28 hotel is The Parade Shopping Centre, and Library. 8

CAR PARKING MAJOR DEVELOPMENTS 1. Whalebridge Car Park – 110m (840 spaces) 19. Kimmerfields Regeneration and 2. Fleming Way Car Park – 170m (654 spaces) new Zurich HQ – opposite 3. The Parade Multi Storey Car Park - 220m 20. Fleming Way Bus Boulevard – adjoining The hotel is strategically (112 spaces) 21. Swindon Station / Swindon Arrival – 500m situated in Swindon town 4. Spring Gardens Car Park – 270m (662 spaces) 22. The Carriage Works – 700m centre adjacent to the central 5. Princes Street Car Park/Wyvern Theatre – 23. Aspen House & Granville Street – 700m 350m (112 spaces) business district and just CULTURAL QUARTER moments from an extensive RETAIL & LEISURE 24. New Cultural Quarter – 300m retail and leisure offering. 6. The Parade Shopping Centre – adjacent 25. Wyvern Theatre – 300m 7. The Brunel Shopping Centre – 450m 26. Artiste Complex – 500m 8. Regent Circus – 600m 27. Museum of Computing – 500m 9. Swindon Town Football Club – 850m 28. Swindon Town Hall / Library / Dance – 550m 10. STEAM, The Museum of the GWR – 1.2km 29. MECA Events Venue – 550m 11. Swindon Designer Outlet – 1.3km MAJOR BUSINESSES 12. Zurich – 300m 13. Aecom – 400m 14. Network Rail – 400m 15. Historic England – 1.0km 16. English Heritage – 1.0km 17. Space Agency UK – 1.1km 18. Medical Research Council – 1.1km 12 4 DEMAND DRIVERS- THRIVING BUSINESS HUB

Swindon is a major commercial and The latest Good Growth for Cities Index industrial hub in the south west of by PwC 2021 suggests that Swindon is England given its strategic position at one of the most resilient cities/towns Swindon has a long heritage with Swindon is also home to a number of the heart of the M4 corridor and Great in the UK. The analysis highlights that transport and manufacturing industries, major distribution centres for some of Western main line. as result of Swindon’s sectoral mix from the GWR rail works to the BMW/ the UK’s best known firms including and historically strong economic and A new UK Powerhouse Report (2021) Mini factories. Today, the town serves Aldi, DHL and Royal Mail. The town is social performance, the town has been by Irwin Mitchell and the Centre for as a more diverse business hub for a also the chosen location for a number relatively less economically impacted Economic and Business Research range of sectors including advanced of established national headquarters, by the Covid-19 pandemic than other indicates that Swindon will have one of manufacturing and engineering, including the UK Space Agency, UK cities. the fastest employment rates and Gross insurance and finance, health and Research Councils UK and National Trust Value Add (GVA) this year. The report life sciences, electronics, energy and and the British Computer Society. estimates 2,400 new jobs will be created logistics. Major occupiers in the town The new 2.3m sq ft Amazon distribution by Q4 2021 representing a 7.4% increase. include Zurich, Nationwide Building centre in Swindon, which is due for Society, Intel, WHSmith, Npower, Aecom, practical completion at the end of 2021, Capita and Network Rail. Zurich, one is set to create a further 1,300 new jobs of Swindon’s biggest employers, has for the town. announced its plans to develop a new flagship headquarters opening in 2022 immediately opposite the hotel, which will act as a further catalyst for regeneration within the town.

14 5 DEVELOPMENT PIPELINE & LOCAL LANDMARKS

Regent’s Brunel Tower STEAM New College Swindon Aspen House The The Whalebridge Fleming North Star Circus Cultural Islington & Brunel Museum National Carriage Zurich Swindon, UK Space Town Amazon / & Granville Parade Mechanics Practice and Way Bus Kimmerfields Leisure Shopping Quarter Street Shopping of Great Trust Works HQ North Star Agency Football Pannatoni Street Swindon Institute Car Park Boulevard Complex Centre Centre Western Campus Club

THISTLE EXPRESS HOTEL SWINDON • SN1 1TN Swindon Train Station To Bristol, Wales & the South West

To London, Heathrow Airport, Reading and Oxford

16 Swindon is benefiting from a number of major regeneration 6 projects that are currently under construction and proposed in the MAJOR PROPOSED town centre, including a new central business district, transport interchange and a variety of high quality new leisure and retail DEVELOPMENTS offerings.

& REGENERATION SWINDON CULTURAL QUARTER Details: Plans for a new cultural quarter at Kimmerfields and the surrounding area are being developed, including Swindon is currently experiencing an immediately opposite the hotel. Further redeveloping the Wyvern theatre, creating a new investment boom, with over £1.8 billion developments include the Fleming museum and art gallery, dance centre and media hub. being invested in the town by both Way Bus Boulevard, Station Arrival, The Plans include improved public realm along Islington private and public bodies. Carriage Works, Swindon Institute of Street adjoining the hotel. Technology, Symmetry Park and South Developer: Swindon Borough Council / Local & National The Kimmerfields regeneration project, Marston Industrial Estate. Stakeholders which is anchored by the new c.100,000 Distance from hotel: Adjacent and surrounding areas sq ft Zurich headquarters, is located Status: Plans in consultation

Thistle Express Zurich HQ Swindon

50 metres

Kimmerfields KIMMERFIELDS

Details: A major new £350m, 20 acre, mixed- New Bus Boulevard use scheme creating a new central business SOUTH MARSTON INDUSTRIAL ESTATE SYMMETRY PARK / AMAZON district for the town comprising 60,000 sqm Indicative CGI of new office space, 450 residential units, an FLEMING WAY BUS BOULEVARD Details: In March 2021 Panattoni, Europe’s Details: In October 2020 Panattoni sold the 850 space multi-storey car park and a new largest developer of new build industrial 2.3 million sq. ft. storage and distribution bus interchange. The project will include the Details: A new £33 million bus interchange and logistics facilities, purchased South facility let to Amazon at Symmetry Park to relocation of insurance firm Zurich to a new on Fleming Way adjacent to the hotel, with Marston Industrial Estate. The group have Legal & General Investment Management c.100,000 sq ft flagship headquarters. £25m in government funding secured from pledged £700 million of investment in order for £200m. The wider Symmetry Park the Future High Streets Fund, providing new Developer: Swindon Borough Council / HCA to bring the 370-acre site into operational project represents a £400m investment into pedestrian and cycle routes, a new public / Muse Developments JV use. Swindon and construction is expected to space and green corridor along the street. complete at the end of 2021. Distance from hotel: Opposite Developer: Panattoni Developer: Swindon Borough Council Developer: Panattoni Status: The Zurich headquarters is due to Distance from hotel: 6.5km (4.0 miles) open in 2022 with the rest of the masterplan Distance from hotel: Adjoining Distance from hotel: 6.0km (3.7 miles) expected to complete by 2027 Status: Decommissioning underway Status: Funding secured and works to commence in Q3/Q4 2021 Status: Under Construction

Source: Swindon24 Source: Swindon Borough Council 18 PROPERTY & PROPOSAL

20 7 HOTEL DESCRIPTION

The purpose-built 95 bedroom hotel ground floor consists of the reception occupies a prominent corner position area and breakfast bar, along with a on Fleming Way. The tenant undertook small kitchen and servicing facilities, an extensive refurbishment totalling with the entrance accessed from £3.5m (equating to c.£37k per key) Islington Street. The second through and rebranded as a Thistle Express, to eighth floors contain the hotel reopening in August 2017. Following bedrooms. Various plant and storage this program of capital expenditure, the rooms are situated in the basement and hotel’s EPC rating improved from E(105) on the ninth floor. to C(75). At the time of the refurbishment, The hotel is arranged over basement, all areas were refurbished with the ground and eight upper floors (including exception of the ground and first floor plant room on the ninth), across a total bar areas, kitchen and events hall, which GIA of 51,918 sq ft (4,823.5 sq m). The were left in situ.

For illustrative purposes only

(Scale - 1:750) Ordnance Survey © Crown Copyright 2020. All Rights Reserved. Licence number 100022432 22 Plotted Scale - 1:750. Paper Size - A4 8 TENURE 10GUARANTOR TENURE COVENANT Newly created 999-year virtual freehold at a peppercorn rent. The virtual freehold will GLHGUARANTOR Hotels Limited, (Great London investments in hotel management allow for the usual flexibility. Hospitality), is one of the largest and operations, oil and gas, property owner-operator of hotels in London development and other areas in the withCOVENANT over 5,000 bedrooms and 130+ leisure and tourism industry. meeting and event spaces, operating The company has a 5A1 covenant under four core brands including; and a strong net asset position of Amba Hotels, Guoman hotels, Thistle the Group, which increased by 1.8% and Thistle Express. It also operates between 2018 and 2019 from £567.5 Hard Rock London under a third million to £577.9 million. Despite the party brand. impacts of Covid-19, the company GLH is owned by GL Limited, (Guoco reported a strong position in June Leisure) a Singaporean based 2020 with a group net asset value of investment holding company £451.8 million. listed on the Main Board of the Singapore Exchange, with principal

GLH HOTELS LIMITED - FINANCIAL PERFORMANCE

2020 2019 2018 9 FINANCIAL POSITION TENANCY (£Ms) (£Ms) (£Ms) Turnover 183.2 245.0 234.6 Profit Before Tax (21.9) 11.8 48.5 The Property is let to The Wiltshire Hotel on 25th December 2023. The rent will Profit After Tax (16.7*) 14.6* 40.1 (Swindon) Limited and guaranteed by then benefit from 5 yearly upwards only Company Net Assets 462.5 479.0 491.4 GLH Hotels Limited, for a term of 50.8 uncapped rent reviews linked to CPI, with Group Net Assets 451.8 575.9 565.5

years from 24th December 2013 until 1% per annum compounded minimum *net profit exceeds pre-tax profit as a result of adjusted tax credits in respect of previous years 27th September 2064, providing a rare uplifts, the first of which is on the 25th and IFRS 16 long unexpired term of 43 years and 4 December 2028. months. The lease provides a tenant option to The current passing rent is £170,000 per renew for two further 15 year extension “One of the largest owner annum (£1,789 per bedroom per annum), options, providing a potential term of increasing by 17.6% to £200,000 per 73 years and 4 months. operators of hotels in London” annum (£2,105 per bedroom per annum)

24 11 PROPOSAL 13 FURTHER We are instructed to seek offers in excess of £5,000,000 (Five Million Pounds) for INFORMATION the benefit of the Virtual Freehold interest, subject to contract and exclusive of VAT. Pricing at this level reflects a low price per bedroom of only£52,632 and capital value of just £96 per sq ft, equating to a Net Initial Yield of 3.19% (Reversionary Yield of 3.75% VAT SITE AREA in 2023), assuming purchaser’s costs of 6.6%. The Property is elected for VAT. Approximately 0.1 hectares (0.26 acres).

RUNNING YIELD ILLUSTRATION EPC VIEWINGS The Property has an EPC Rating of C(75). Hotel inspections upon request. DATE GROSS RENT* ANNUAL GROSS RENT** ANNUAL RUNNING YIELD* RUNNING YIELD **

Current £170,000 3.19% £170,000 3.19% Dec-23 £200,000 3.75% £200,000 3.75% Dec-28 £220,816 4.14% £231,855 4.35% Dec-33 £243,799 4.57% £268,783 5.04% Dec-38 £269,174 5.05% £311,593 5.85% Dec-43 £297,189 5.58% £361,222 6.78% 14 CONTACTS Dec-48 £328,121 6.16% £418,756 7.86% Dec-53 £362,272 6.80% £485,452 9.11% Dec-58 £399,978 7.50% £562,772 10.56% Dec-63 £441,608 8.29% £652,408 12.24% For more information please contact:

*Assumes 2% CPI from 2023 **Assumes 3% CPI from 2023 RICHARD DAWES FRANKIE WOOD RACHEL GEORGE +44 (0) 207 409 8106 +44 (0) 207 877 4778 +44 (0) 203 107 5413 +44 (0) 7580 789 978 +44 (0) 7976 743 759 +44 (0) 797 703 0170 [email protected] [email protected] [email protected] 12 CALL FOR OFFERS

Bids are due on Tuesday 6th July at 4pm BST unless otherwise agreed prior (subject to contract).

DISCLAIMER Savills, for themselves and for the vendors or lessors of this property whose agents they are given notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Savills has any authority to make or give any representation or warranty whatever in relation to this property. June 2021. In accordance with Anti-Money Laundering Regulations, a successful bidder will be required to provide evidence of identity and source of funding prior to instructing solicitors

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