HUNTS CROSS RETAIL PARK | Speke, Liverpool L24 9GB

Open A1 Retail Park Investment HUNTS CROSS RETAIL PARK | Speke, Liverpool L24 9GB

ENTER Open A1 Retail Park Investment HUNTS CROSS RETAIL PARK | Speke, Liverpool L24 9GB

Investment Considerations

> Liverpool is one of the largest > The scheme has an open A1 non- cities in the UK and is a major food planning consent. retail destination. > The total rent is £701,144 per > The subject property is situated annum equating to low rents in a highly accessible location, off averaging £10 per sq ft. the A562, the main arterial route connectingSpeketothecitycentre. > We are instructed to seek offers for the long leasehold interest in > The scheme sits adjacent to the above property based on an Hunts Cross Shopping Centre, attractive net initial yield of 8% anchored by a dominant ASDA. (assuming purchaser’s costs of 5.80%). This equates to a > The scheme totals 70,973 sq ft purchase price of £8,284,000 with demised car parking for 222 (Eight Million,Two Hundred and vehicles. Eighty FourThousand Pounds), > The property is held on a subject to contract and exclusive headlease with 946 years of VAT. unexpired at a peppercorn. > The property benefits from a long average income weighted unexpired lease term of 9.6 years, let to Matalan, Poundstretcher, Xercise4Less and Next.

Investment Location Catchment Population Situation & Description Tenancies, Tenure and Asset Management & VAT, Proposal & Considerations & Retail Warehousing Title & Planning Tenants’ Covenants Contacts < > in Liverpool B

Oldham M58 M61

M6 Open A1 Retail Park Investment MANCHESTER HUNTS CROSS RETAIL PARK | Speke, Liverpool L24 9GB

A580 A580 St. Helens M60 M57 M62 Bootle M60 Sale M62 A57 LIVERPOOL HUNTS CROSS Warrington Stockport RETAIL PARK A557 Location Widnes M56 M53 Liverpool is the 6th largest city in the UK, a major regional centre and the Speke Runcorn principal retail focus for the metropolitan county of Merseyside. A523 The city is located approximately 36 miles west of Manchester, 22 miles north of M56 A34 Chester and 36 miles south of Preston. It beneﬁts from excellent transport links, A537 Ellesmere Port A533 being served primarily by the M62 motorway, connecting it to Manchester, Leeds and Hull. The city is also served by the M57, M58 and M53 motorways. M6 Macclesfield M53 A556 Liverpool’s main ra ilway station is Lime Street Station, providing direct services A536 to London Euston with a fastest journey time of approximately 2 hours and 8 Chester minutes. Other direct routes include to Birmingham, Manchester, Sheﬃeld and A49 A54 A51 Nottingham. A55 Hunts Cross train station is situated 1.1 miles east of the subject property and A41 A530 provides regular services to Liverpool city centre.

A49 A51 A34 Liverpool John Lennon International Airport is situated approximately 2.5 miles Crewe Leek south of the subject property via Speke Hall Road. The airport has ﬂights to A534 national and international destinations and served over 4.46 million passengers A500 Nantwich in 2012. M6 Wrexham A49

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L EK M O E R O OAD T O R W O A Catchment Population D AD RO Liverpool has a primary catchment population of 1,130,000 people and a HUNTS CROSS D OO W shopping population of 636,000 people, ranking the city 7th and 5th HIG respectively out of the top 200 PMA Centres. Experian calculate there are HUNTS CROSS HER ROA V D RETAIL PARK T A 138,098 people living within a 10 minute drive time of the subject property, OO ILLF increasing to 700,865 people within a 20 minute drive time. SOUTH PARKWAY H In addition, Liverpool is likely to draw shoppers and retail spend from beyond its primary catchment area due to the strength of its retail oﬀer. W O O Liverpool is a major destination for tourists; in 2013 it was the 5th most popular D D A L destination in the UK for international visitors and was 6th for business tourism. O A R N

L D In 2012, there were over 57 million visitors to the Liverpool City Region, adding L A A V in excess of £3.4 billion to the local economy and supporting over 45,900 jobs. H NEW MERSEY E K S E £812 million was spent on shopping, representing 24% of the total 2012 visitor PEK SHOPPING PARK P E S RO spend. AD

SPEKE ROAD The city’s tourism board’s aim is to increase tourist spend to £4.2 billion by 2020, A56 1 SPEKE B creating an additional 13,000 new jobs in the area. OULIVARD

SPEKE Retail Warehousing in Speke and South Liverpool RETAIL PARK The prime scheme in the area is New Mersey Shopping Park in Speke, located V approximately 1.5 miles south west of the subject property. The scheme totals SPE A KE H N AL R 500,000 sq ft of space arranged across 37 units. B&Q, DSG, Next and M&S anchor L AV E T

S the scheme, with other retailers including Boots, DFS, Pets at Home, Bank, River E W Island and New Look. Rents are around £45 per sq ft for 10,000 sq ft units. SPEKE Located 2 miles south east of the subject property is Speke Retail Park, which is a District Centre development but anchored by an 82,500 sq ft Morrisons foodstore. Further occupiers include TK Maxx, Poundworld, and Iceland. There are also smaller shop units here let to occupiers including William Hill, Barnados, HALE DRIVE Ladbrokes and Card Factory.

JOHN LENNON AIRPORT

Situation The property is situated in a highly accessible and prominent location, in the suburb of Speke, approximately 5 miles south east of Liverpool city centre. The scheme is located at the junction of Speke Hall Road and the A562 Hillfoot Avenue, which is a major route connecting the area to the city centre. Access to the property is served by an entrance on Speke Hall Road, which also provides access to the surrounding retailers. Adjacent to the scheme is Hunts Cross Shopping Centre, anchored by a 130,000 sq ft ASDA foodstore. Further retailers here include Boots Opticians, Subway, Timpson and Card Factory as well as a McDonald’s restaurant unit, and a petrol ﬁlling station operated by ASDA. B&M occupy a standalone 29,631 sq ft unit, which they trade under their‘Home Store’format.

SL Description Hunts Cross Retail Park provides 70,973 sq ft of ground floor retail accommodation arranged across 5 units, well configured in an‘L’shape terrace. New signage has recently been erected close to the subject property, which can be seen from the entrance to the wider scheme. Internally, the units are fitted out to the individual tenant’s specification, with Units C and D-F benefiting from trading mezzanine floors. The recent addition of the gym; Xercise4Less, adds a leisure element to the park T and helps to further increase footfall. Despite having been open for only a short O period of time, they are targeting over 10,000 members. LE

T The demised car park for the subject property is located to the front of the units and provides 222 car spaces, equating to a ratio of 1 : 320 sq ft.

M The units are serviced by a covered and enclosed service road to the rear of the

A Y retail terrace. F R

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O N W O The total site area is 3.45 acres, providing a site cover of 47%.

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Tenancies The property is let to the tenants as follows, providing a long average income weighted lease term of 9.6 years.

Unit Tenant GIA Lease Lease Lease Next Rent Rent Rent EPC Comments (sq ft) Start Term Expiry Review (per annum) (per sq ft) Rating (years) A Poundstretcher 9,634 22/09/07 10 21/09/17 - £82,200 £8.53 D (98) B Vacant 2,300 -- - - £0 £0 C (71) Unit currently vacant. A service charge shortfall exists. C Next Clearance 9,909 08/01/07 15 07/01/22 08/01/17 £158,544 £16.00 C (70) There is a mezzanine of circa 9,182 sq ft, which is considered to be a landlord’s improvement, but it is not rentalised at review.

D, E & F Xercise4Less 18,582 31/10/14 20 30/10/34 - £155,000 £8.34 C (61) Stepped rent: October 2017-2019 £155,000 pa , 2019-2024 £179,687 pa , 2024 - 2029 £208,307 pa, 2029-2034 £241,486 pa. Rent is topped up to 2017 level. G & H Matalan 30,548 23/08/10 11.5 04/02/22 23/08/15 £305,400 £10.00 C (55) Total 70,973 £701,144 £9.88

All the leases are on eﬀective full repairing and insuring terms. Matalan and S Poundstretcher are not obliged to clean the exterior of the building excluding MP .5 the shop, front doors, glass and masonry below the canopy or decorate such Gantry

ry parts of the building above the canopy. These works are undertaken by the Gant landlord and recovered through the service charge. Xercise4Less’s repairing liability is limited by a schedule of condition. ol Petr

SL Tenure and Title S CROSS The property is held on a long leasehold basis at a peppercorn. The headlease is HUNT SHOPPING for 999 years from 1 August 1961, giving just under 946 years unexpired. The CENTRE

T current landlord is Liverpool City Council. The long leasehold interest is O

LE delineated in red opposite. T

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A AD E Y N Planning U E

RO The property beneﬁts from an open A1 non-food consent.

HALL There is a restrictive covenant in place preventing the property from being used Tanks as a food supermarket, except for one specialising in the sale of frozen food, or SPEKE as a butcher, baker, and greengrocer or for the sale of alcohol.

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Further details are available upon request. El Sub Sta

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Asset Management There are number of short and medium term asset management initiatives available to an incoming purchaser as follows: > The scheme currently has a vacant unit of 2,300 sq ft, located between the Poundstretcher and Next units. We believe this unit would suit a local operator or a coﬀee shop, subject to planning. > There is the opportunity to develop a further unit adjacent to the Matalan unit, subject to planning and the freeholder’s consent. This would give t he opportunity to extend and diversify the tenant mix further. > Poundstretcher have a lease expiry in September 2017 and there is the opportunity to agree a re-gear with them.

Tenants’ Covenants The park is well let, with the majority of the income being secured against D&B‘5A1’ rated covenants. We set out below the most recent tenant accounts:

Unit Tenant Year Sales Pre Tax Net D&B Ending Turnover Pro@t / Loss Worth Rating (000’s) (000’s) (000’s) A Poundstretcher Ltd 31/03/2013 £367,984 -£3,685 -£4,708 N2 31/03/2012 £248,446 £1,585 -£1,023 C Next Group Plc 25/01/2014 £197,700 £53,000 £1,296,600 5A1 26/01/2013 £212,300 £322,500 £1,747,900 D, E & F Wrights Leisure 31/07/2013 £7,056 £490 £344 B3 (T/A Xercise4Less) 31/07/2012 £3,362 £423 £411 G & H Matalan Retail Ltd 01/03/2014 £1,122,900 £11,400 £234,300 5A1 23/02/2013 £1,125,400 £17,600 £273,400

VAT The property has been elected for VAT purposes.

Proposal We are instructed to seek oﬀers for the long leasehold interest in the above property based on an attractive net initial yield of 8% (assuming purchaser’s costs of 5.80%.) This equates to a purchase price of £8,284,000 (Eight Million, Two Hundred and Eighty Four Thousand Pounds), subject to contract and exclusive of VAT.

By virtue of the ﬁxed uplifts in the Xercise4Less lease, the investment provides the following running yield:

Date Yield October 2019 8.28% October 2024 8.61% October 2029 8.99%

Contacts

Ellie Kirkby Paul Wilkinson Wilkinson Williams T: 020 7317 3790 T: 020 7317 3799 Heathcoat House M: 07764 241 898 M: 07770 585 313 20 Savile Row E: [email protected] E: [email protected] London W1S 3PR www.wilkinsonwilliams.co.uk

MISREPRESENTATION NOTICE. Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an oﬀer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be veriﬁed by an intending purchaser. 7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convy and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. October 2014. Designed and produced by BOWMANS 0113 272 0088