229 High Street & 32-33 Gandy Street Exeter Ex4

229 HIGH STREET & 32-33 GANDY STREET EXETER EX4 3NE

INVESTMENT SUMMARY

• Prime retail and restaurant investment situated in the historic Cathedral and University city of Exeter, the principal commercial centre for Devon.

• Exeter is a dominant retailing centre with an affluent catchment.

• Prime location fronting the High Street in close proximity to the Princesshay Shopping Centre.

• Large retail unit over four floors fronting the High Street let to Urban Outfitters and a prominent restaurant over ground and first floor to the rear, fronting Gandy Street and let to Bill’s.

• Average weighted unexpired lease term of 10.13 years to expiry.

• Our clients are seeking offers in excess of £5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 5.5%, after allowing for purchaser’s cost of 6.62%.

Swansea High Wycombe Southend-on-sea Swindon M4 Cardiff Salisbury M4 LONDON LOCATION Bristol Reading Hastings Ramsgate Bath Weston-Super-Mare Guildford M25 Basingstoke Maidstone

Exeter is an historic Cathedral and University city M5 Royal Dover Exmoor M3 Crawley Folkestone located in the south west of England. The city National Park Tunbridge Wells Barnstaple Winchester is the main commercial centre for Devon and is A303 A39 Taunton located approximately 45 miles (72 km) east of Southampton Plymouth, 81 miles (130 km) south west of Bristol A31 M5 Brighton and 175 miles (280 km) south west of London. Eastbourne EXETER A30 Portsmouth A30 Bournemouth Newport Exeter benefits from excellent transport links Dartmoor A39 Exmouth being located at the southern end of the National Park Weymouth

M5 which links with the M4 and the national A38 motorway network. To the west of Exeter is the Newquay Torquay A38 (Devon expressway) giving direct access St Austell Plymouth A390 to Plymouth and the A30 to Cornwall. The A30 A30 also links the A303 to the east, providing a trunk road connection to the M3 motorway and there Penzance A394 Truro on to London.

The city has a comprehensive rail service which links to the national rail network from both Exeter Central and Exeter St Davids. Fastest journey time to London Paddington is approximately 2.5 hours and to London Waterloo 3.5 hours.

Exeter International Airport is located 6 miles (10 km) to the east of the city with a range of UK and international flights to destinations that include Geneva, Madrid, Munich, Nice, Dublin and Edinburgh.

DEMOGRAPHIC PROFILE

Exeter has an estimated primary catchment population of approximately 508,000 people which is boosted significantly by tourism as well as a large student population. South West Tourism Alliance estimates approximately 500,000 staying visitors and over 1.5 million day visitors each year, spending in excess of £166 million per annum. Additionally, Exeter University is one of the top Russell Group universities in the country which together with Exeter College, attracts in excess of 28,000 students. SUBJECT PROPERTY

Exeter has an affluent catchment ranking 31st out of the 200 PROMIS Centres in terms of the volume of comparison retail spend available in the catchment area. Exeter is forecast to see above average percentage growth in the available pool of comparison spending between 2016 and 2021. Reflecting the demographic profile and spending habits of the catchment population, per capita retail spending levels are significantly above the PROMIS average.

Large scale employers in the city include The Met Office along with the University and Devon County Council. Other major businesses represented include EDF Energy and British Telecom.

RETAILING IN EXETER SITUATION

Exeter is a very established and thriving retail centre providing At the other end of the High Street, and on the opposite side The subject property is situated one of Devon’s primary shopping destinations with a total floor to Princesshay is the Guildhall Shopping Centre which provides in a prime position on the north- space estimated to be in excess of 1.39 million sq ft. The prime retail and restaurant space anchored by Primark, Wilko and west side of the pedestrianised retail pitches are located within the pedestrianised section of Sainsbury’s. Aviva Investors have recently spent approximately High Street within close the High Street between the Guildhall Centre and the John £12 million remodelling the Queen Street restaurant area with proximity to both Princesshay Lewis department store and Princesshay Shopping Centre. occupiers including Gourmet Burger Kitchen, Polpo, Comptoir Shopping Centre and the Libanais and Kupp which has underpinned this location as the Guildhall Shopping Centre. Princessshay Shopping Centre was developed by Land destination for A3 within the city. Other nearby occupiers include Securities Plc and opened in 2007. The Centre extends to Marks & Spencer, House of approximately 530,000 sq ft of retail space, anchored by Fraser, H&M, Russell & Bromley a 130,000 sq ft Debenhams department store with other and Tesco Metro. retailers including Zara, Top Shop, Hollister, Superdry, New Look and Fat Face. The Goad extract plan highlights the subject property in blue.

NORTH

For Identification purposes only

DESCRIPTION

The existing buildings of 229 High ground and first floor with ancillary Street and 32/34 Gandy Street have accommodation at basement and been extended and amended since their second floor. construction in the 1930s. The original building of 229 High Street includes the The restaurant unit is arranged as reuse of a salvaged Elizabethan shop ground floor sales with part first floor front from North Street. The building sales and part first floor ancillary. also now includes a prominent mural which faces along the High Street. Both units are let in accordance with the attached Tenancy Schedule. The retail accommodation is arranged to provide sales accommodation over ACCOMMODATION

The property comprises 14,264 sq ft in total and is arranged as one retail unit and one restaurant unit.

COVENANT

A summary of the covenant strength of the two occupiers is highlighted.

Experian Credit Tenant Score out of 100 URBN UK Limited 100 Bill’s Produce Store Limited 100

TENANCY SCHEDULE

Lease Info Areas Rent ERV Address Tenant Start Expiry Comments Term R/R GF ITZA BF 1st F 2nd F Date Date

Composite ITZA stated assuming A/12 on the ground URBN UK Ltd £285,000 £265,500 remainder, A/16 on loading bay and A/20 on basement, 229 High Street 15 11.07.11 10.07.26 11.07.21 4,900 1,436 1,492 1,909 1,992 1st and 2nd floor. Set back frontage cancelled out by t/a Urban Outfitters (£198.50 ZA) (£185 ZA) return. Rent capped at no greater than 115% of the previous rent at review. Bills Produce Store Ltd £65,000 £71,500 February 2017 rent review outstanding. 32/33 Gandy Street 20 03.02.12 02.02.32 03.02.17 1,528 2,443 0 t/a Bills (£23.65 psf) (£26 psf) First floor @ half rate, gives WGIA 2,749.

RENTAL COMMENTARY

Retail rents on Exeter High Street have rental tone. We set out below a series of remained stable over recent years with comparable evidence for both the retail and various transactions reinforcing the restaurant unit.

Address Transaction Tenant Date Zone A psf

12/13 High Street OML Goldsmiths June 2016 £180

247/248 High Street RR Specsavers December 2015 £182

11 High St OML Smiggle September 2015 £183 247 High St OML Pret September 2015 £185 U18 Guildhall Centre OML Polpo March 2017 £38 U22 Guildhall Centre OML Kupp August 2016 £31.65 U2 Guildhall Centre OML Comptoir Libanais July 2016 £32.20 U14 Guildhall Centre OML Turtle Bay July 2016 £30.84

We devalue the passing rent upon the We devalue the passing rent on the Bill’s prime Urban Outfitters unit to a Zone A of restaurant to approximately £23.65 psf which £198.50, assuming A/12 on the ground floor we consider to be reversionary. remainder, A/16 on the loading bay and A/20 on the basement, first and second floor stock. We have off set the setback frontage against the benefit of the prominent return.

INVESTMENT COMPARABLES

We consider the subject property offers an excellent opportunity to purchase a prime multi-let commercial freehold investment offering a WAULT in excess of 10 years in a dominant retailing centre and would highlight the following comparable transactions that have taken place.

Address Tenant(s) Expiry Price NIY Date

Various including 235-240 High Street Jones, Office and WAULT of 4.57 years £11.5m 5.25% July 2016 Saltrock

39 & 40 High Street, WAULT 9.3 years 13 Martins Lane, Sketchers USA Ltd to expiry £3.35m 5.25% July 2016 Exeter (4.3 years to break)

VAT EPC

The property has been elected for VAT EPC for the purposes. It is anticipated that the investment property are sale will be treated as a Transfer of a Going available upon Concern (TOGC). request.

PROPOSAL

We are invited to seek offers in excess of £5,970,000 (Five Million, Nine Hundred and Seventy Thousand Pounds), subject to contract and exclusive of VAT, for our client’s freehold interest in the subject property. A purchase at this level will effect a net initial yield of 5.5%, assuming purchaser’s cost of 6.62%.

For further information, please contact the sale agents, Jackson Criss:

Jonathan Milburn 020 7637 7100 [email protected]

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give 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 in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact

DESIGNED BY TCC but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. JC0112 September 2017.

229 HIGH STREET & 32-33 GANDY STREET EX4 3NE PRIME FREEHOLD RETAIL & RESTAURANT INVESTMENT FOR SALE