READING 84 BROAD STREET, BERKSHIRE, RG1 2AP

WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY INVESTMENT SUMMARY

●● Reading is an important and affluent, regional retail centre with an extensive primary ●● Let to Footasylum Limited on a 10 year Full Repairing and Insuring Lease from 8th catchment population of 692,000 and total catchment of over 2.3m people March 2016 expiring 7th March 2026 (TBO in year 5)

●● The town continues to experience a ‘retailing renaissance’ with positive occupier and ●● The property provides a total of 3,800 sq ft (353 sq m) investor demand ●● Freehold ●● Located on Broad Street, a prime pedestrianised retailing pitch with established national retailers such as John Lewis, Primark, Marks & Spencer, Sainsbury’s, ●● Annual income of £155,000 pax Pret-A-Manger ●● Offers in excess of £2,650,000 (Subject to Contract & exclusive of VAT) which reflects an initial yield of 5.50%, allowing for usual purchasers costs of 6.43% at this level. READING 84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY

LOCATION Reading is a popular regional retailing destination and a major commercial and passengers will be able to travel into, and beyond Central London without the need to change administrative centre for the Thames Valley Region. The town is strategically located 41 miles at Paddington, providing direct links to the City and West End. (66km) west of Central London, 25 miles (41km) south east of Oxford and 80 miles (130km) east Reading has a very strong local economy. The service sector accounts for 72% of local of Bristol. The town benefits from excellent transport links. employment which is significantly above average for comparable retail centres. The Professional By road, the town is easily accessed via Junctions 10, 11 & 12 of the M4 Motorway which connects & Business Services and Finance sectors together account for nearly 20% of total employment. London to South Wales and gives Reading easy access to the M25 and wider Motorway networks. The town is home to numerous British companies and the UK offices of many foreign multi- By Air, Heathrow Airport is some 29 miles (47km) to the east. nationals such as Deloitte, PwC, EY, Prudential, Huawei, Microsoft, Symantec, Oracle, Jacobs, Mabey, Bang & Olufsen, Pepsico, P&G and Gillette. Reading Railway Station is a 5 minute (0.2 mile) walk from the property and provides services into London Paddington in less than 30 minutes. With the extension of Crossrail to Reading in 2019,

M1 A1 (M) M40 Stevenage

A41 LUTON A10 OXFORD A40 Aylesbury M11

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High Wycombe A34 Slough LONDON M4 READING M4

Newbury Bracknell M3 A34 A339 M25 A3 Andover M23 A303 Basingstoke Guildford

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DEMOGRAPHICS RETAILING IN READING Reading has a total population within its primary catchment of Reading has a total town centre retail floorspace of1.83 multi-storey car park providing approximately 2,300 spaces and 698,000 and an estimated shopping population of 401,000, million sq ft, above the Regional centre average and ranking a leisure element at ground floor level. Restaurants in the ranking the town 17th of PROMIS centres on this measure. the town 19th of PROMIS centres on this measure. There is an scheme include Nando’s, McDonalds, Jamie’s Italian, Reading’s affluence is reflected in the significantly above annual catchment expenditure of £710m ranking 23rd in the UK Giraffe, Cau, All Bar One and Browns. The other scheme of average proportion of the most affluent AB social group and an (CACI 2013). Prime retailing is centred on The Oracle note is the Broad Street Mall, located at the western end of under-representation of the least affluent C2 and D&E Shopping Centre anchored by Debenhams & House of Fraser Broad Street. The 400,000 sq ft scheme is the town’s secondary categories. The catchment s within a 30 minute drive time and and the pedestrianised Broad Street where M&S, John Lewis, shopping centre, split over two levels with occupiers such as it spends circa £4bn on retail and leisure per annum including Primark, Gap and H&M amongst others, are represented. TK Maxx, New Look, Wilko and Metro Bank. pull from competing retail centres such as Swindon, Slough and Broad Street runs from The Oracle at its eastern entrance, west Within close proximity to the subject property, the former Newbury. Reading is projected to see above average growth in to Broad Street Mall. Jackson’s Department Store is currently being reconfigured to population over the period 2015-2020. Reading has two covered shopping centre schemes. The provide further leisure accommodation. We understand that Oracle is a 700,000 sq ft retail and leisure scheme, split Franco Manca, Byron Burger, Wahaca and Busaba Eathai are across two levels. Key tenants include House of Fraser, all secured. Debenhams, Apple, Boots and Zara. The scheme has a STATION HILL DEVELOPMENT

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84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY

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SITUATION STATION HILL DEVELOPMENT The property is located in a strong retailing pitch towards the Reading is one of the South East’s strongest regional centres In addition, the £100m redevelopment of Thames Tower to western end of the pedestrianised Broad Street directly opposite and benefits from excellent transport links to the West End of create 183,000 sq ft of offices with 8,000 sq ft of leisure below is Chlas Olson. Other occupiers in the immediate vicinity include London. July 2014 saw the reopening of the railway station due to complete in Spring 2017. Once the above initiatives are Pret a Manger, Halifax, Next, Shoe Zone and EE. following an £897 million upgrade, while the news of the complete, it is anticipated that over 200 trains a day will run extension of Crossrail to Reading has been a stimulus for between Reading and Central London. We believe the property significant office redevelopment in the Station Hill area. The will benefit hugely from the development given its proximity to scheme has outline planning approval for 930,000 sq ft of both the Station Hill development and the Railway Station. offices, 150,000 sq ft of retail, and 300 residential units. READING 84 BROAD STREET BERKSHIRE RG1 2AP WELL SECURED, PRIME, HIGH STREET RETAIL INVESTMENT OPPORTUNITY

INCOME Current annual income of £155,000 pax.

RENTAL COMMENTARY The passing rent devalues to £126.80 Net Effective Zone A. We believe this to be reversionary.

Prime rental levels on Broad Street currently stand at circa £210 Zone A as evidenced by the recent lettings on 9/10 Broad Street (Tiger) and 35 Broad Street (Itsu) reflecting £212.50 and £208 Zone A respectively.

We understand that the adjoining 83 Broad Street has exchanged to a national multiple retailer on a straight 10 year lease at a rental reflecting a Net Effective rent of £138 Zone A. DESCRIPTION ACCOMMODATION We understand that 85 Broad Street, adjoining the subject The building comprises a 3-storey mid-terraced building, The property provides the following accommodation. property to the left, is under offer to a national multiple A1 arranged over ground (retail) and two upper floors utilised as retailer at a similar level. ancillary space. The property is serviced via Broad Street. There AREAS SQ FT SQ M is a small enclosed yard area to the rear. The unit also benefits Ground Floor Sales 2,812 261 TENANCY from a basement, accessed via a trap door within the retail Ground Floor ITZA 1,012 (Units) N/A The entire property is let to Footasylum Limited on a 10 year sales area, but is not rentalised. First Floor Ancillary 541 50 Full Repairing and Insuring Lease from 8th March 2016 expiring 7th March 2026 (8.5 years to expiry). There is a tenant Second Floor Ancillary 447 42 TENURE only break option on the 8th March 2021 and a rent review on Freehold. Total 3,800 353 the same date. The tenant received 12 months rent-free. COVENANT STRENGTH Footasylum Limited (05535565) has a Dun & Bradstreet of 3A 1 meaning the company has a minimum risk of business failure.

FINANCIAL SUMMARY Financial Year End 28-Feb-16 28-Feb-15 28-Feb-14 Sales Turnover £110,440,452 £78,011,075 £62,230,984 Profit / (Loss) Before Taxes £3,501,285 £307,030 £1,159,564 Tangible Net Worth £13,124,307 £10,444,628 £9,930,204 Net Current Assets (Liabilities) £7,153,515 £5,708,070 £6,053,129

RECENT INVESTMENT COMPARABLES Date Address Tenant Price NIY Under Offer Watford, 126-130 High Steet McDonalds c. £4,100,000 c. 4.50% Under Offer Staines, 60-62 High Street Greggs, McDonalds c. £2,675,000 c. 5.25% May-17 Reading, 61-64 Broad Street Clas Ohlson N/A N/A May-17 Chelmsford, 61 High Street Paperchase £3,575,000 5.00% May-16 Reading, 2 Broad Street Lloyds £4,760,000 4.40% Jun-15 Reading, 107/108 Broad Street Gap £5,825,000 4.50% EPC PROPOSAL The property has an EPC rating of D-94. We have been instructed to seek offers of £2,650,000 (Two VAT Million Six Hundred and Fifty Thousand Pounds), The property has been elected for VAT and any disposal will be Subject to Contract & Exclusive of VAT, which reflects a net initial by way of a Transfer of a Going Concern (TOGC). yield of 5.50% allowing for purchaser’s costs of 6.43%.

For further information or to arrange an inspection please contact:

Ed Smith Patrick Over Simona Malinova 020 7659 4831 020 7659 4832 020 7659 4826 [email protected] [email protected] [email protected]

MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. September 2017. Adrian Gates Photography & Brochures 07710 316 991