Waitrose Cheadle Hulme Page 1 Cheadle Hulme A rare opportunity to acquire a prime UK foodstore investment Page 2 Waitrose Cheadle Hulme Investment Summary ■■ A rare opportunity to acquire a prime UK foodstore investment. ■■ Cheadle Hulme is an extremely affluent suburban area, located just to the south of Central Manchester. ■■ The property comprises a modern purpose built foodstore for Waitrose, part of the John Lewis Partnership, and extends to approximately 3,850 sq m (41,443 sq ft) with parking for 202 cars. ■■ The property is held Freehold. ■■ Let to Waitrose Ltd for a term of 25 years from 19 July 2007, the lease provides an unexpired term of around 22.75 years. ■■ The current rent passing of £759,050 pa equates to approximately £18.32 psf which in our opinion offers a significant reversion in 2012, in the order of £953,200 pa (£23.00 psf). ■■ Offers are sought in excess of £13,300,000 subject to contract and exclusive of VAT. A purchase at this level would show the following yield profile based upon our estimate of current rental value and costs at 5.725%. Initial Yield 5.40% Reversionary Yield 6.78% Nominal Equivalent Yield 6.54% True Equivalent Yield 6.81% Waitrose Cheadle Hulme Page 3 Location A673 Ainsworth Bolton A579 Breightmet A56 Shaw Hey Nook Cheadle Hulme is located in the Greater Manchester Lostock M62 A676 conurbation, approximately 8.4 km (5.2 miles) A58 Hollins M66 Royton Delph to the south of the city centre. Stockport is Little Lever Radclie situated approximately 3.7 km (2.3 miles) to M61 Unsworth Saddleworth Middleton A6 Whiteeld the north east, Wilmslow approximately 8.4 km A663 Uppermill A41 Over Hulton Farnworth Westhoughton M60 Chadderton (5.2 miles) to the south west and Altrincham Oldham around 13.5 km (8.4 miles) to the north west. M60 A663 Lees Little Hulton A666 A62 Greeneld M61 Prestwich The town benefits from extremely strong communication links to both Atherton Walkden A6104 Drive time contoures Manchester City Centre and the surrounding area. The A34 is situated Crumpsall Blackley 5 minutes A579 Tyldesley Mossley just to the west of the town and acts as one of the main arterial routes Swinton A627 Pendlebury M60 Worsley A665 Failsworth 10 minutes connecting with junction 3 of the M60 and Manchester to the north and Higher Boothstown Folds A580 15 minutes Wilmslow, Congleton, Newcastle-under-Lyme and the M6 to the south. A580 Leigh A6 A56 A664 Astley Crowden Cheadle Hulme Train Station provides a direct link with Manchester M60 Salford A6042 Green M602 Ashton-under-Lyne City Centre with a fastest journey time of 19 minutes, as well as an Lowton Eccles A6010 Stalybridge Common Manchester Torside indirect service to London via Wilmslow, which runs every hour. A576 A5063 Dukineld Landside A635 A6018 Tintwistle Traord A5103 Traord A57 Park Hollingworth A57 Kenyon M67 Culcheth Mosside Denton A57 M62 Urmston A34 A6 Hyde M6 Stretford A6017 A560 Gamesley Flixton Falloweld Reddish Glossop Croft Irlam M62 Charlesworth Houghton A56 Green M60 Green Sale Chunal Bredbury Partington Heaton Compstall Mersey Romiley Feamhead Stockport Dunham A5103 Little Northenden M60 Hayeld A49 Massey Wythenshawe Rowarth M56 Woolston Heatley Cheadle Marple Warrington Gatley Altrincham A50 Lymm Birch Vale Bowdon Hale Hawel Grove A56 Little Heald Broomedge A6 Broomedge Bollington Green A34Cheadle High Lane New Mills M56 M6 Hulme Disley M56 MANCHESTER AIRPORT Poyton A556 Handforth Higher Appleton A538 Poyton Bucklow Hill A49 M56 Chinley Morley Green Lyme Lower A6 Mere Dean Row A523 Handley Stretton Tatton Whaley Bridge Arley Newton Chapel-en-le-Frith Wilmslow A49 Mobberley Page 4 Waitrose Cheadle Hulme Socio – Economic Profile 1 Parrs Wood Cheadle Hulme has established itself as one of Manchester’s most affluent commuter suburbs. It has Northenden B5095 an excellent provision of some of Manchester’s better M60 M60 Royal Oark 2 B5465 Industrial Estate 4 schools and the average house price is well above the 3 A560 B5465 City’s average. 1 M56 3A B6171 According to CACI approximately 18,664 people live within a 5 minute 2 Cheadle 3 Demmings drivetime of the property and this figure increases significantly to A560 3 Gatley Industrial Estate A6 106,463 within a 10 minute drivetime. More detailed figures reveal exceptionally positive profiles for both catchments: M6 A34 2008 Households 5 Minute 10 Minute UK Benchill B5102 by ACORN Group Cheadle Hulme Cheadle Hulme B5149 4 Wealthy Executives 22.5 19.1 7.8 Cheadle Flourishing families 19.3 11.9 8.0 Hulme 5 Prosperous Professionals 5.3 3.7 2.1 B5166 CHEADLE HULME Secure Families 15.9 24.4 14.0 RAILWAY STATION Struggling Families 1.2 7.0 12.3 1 Burdened Singles 0.0 2.2 4.9 Heald B5102 M6 Green B5358 B5143 A34 MANCHESTER AIRPORT Furthermore, car/van and property ownership statistics are significantlyRAILWAY STATION above the UK average: Car/Van Ownership 5 Minute 10 Minute UK Cheadle6 Hulme Cheadle Hulme B5094 B5094 Bramhall 2 cars or vans 35.8 31.9 23.1 A555 MANCHESTER 3 cars or vans 6.6 5.7 AIRPORT 4.4 B5358 B5166 Poynton A555 Property Ownership 5 Minute 10 Minute UK Handforth B5102 B5149 Cheadle Hulme Cheadle Hulme Styal 2 A523 Owner occupied 88.3 82.3 68.3 Owned outright 41.3 35.5 28.9 More detailed demographic information is available on request. Woodford Drive time contours A34 B5358 5 minutes 10 minutes A538 B5102 Wilmslow B5166 Dean Row B5358 A34 Waitrose Cheadle Hulme Page 5 Situation The property is well located on the western side of Station Road (A5149), which acts as the town’s main A5149 A5149 Other Foodstore thoroughfare, just to the north of Cheadle Hulme CHEADLE HULME B5095 RAILWAY STATION Station. As a consequence the store benefits from good B5358 S TA Provision T IO A34 N visibility and frontage to the road and passing traffic. RO AD There are some larger foodstores in the surrounding conurbations of The predominant surrounding land uses are commercial Cheadle, Hazel Grove, Stockport and Wilmslow. However only three fall and residential, with the site bounded to the south by within a 10 minute drivetime of the subject property. We have provided the railway line, to the west by residential properties, to further information on these below, through would emphasise that these B5095 BIRMINGHAM the north by a small area of parkland and to the east by AIRPORT A5149 stores draw upon a different core catchment to the subject property, with Station Road. A34 B5095 the customer base predominantly more local. B5358 1 Cheadle – Wilmslow Road SK8 3BB J Sainsbury (c. 72,500 sq ft) situated around 2 km (1.3 miles) Description A5149 to the west of the subject property. The property comprises a modern purpose built food store, together 2 Wilmslow – Kiln Croft Lane SK9 3PA with decked car parking and rear servicing facilities, completed in Tesco (c. 70,000 sq ft) situated c. 5.8 km (3.6 miles) from the 2007. The site comprises around 1 hectare (2.39 acres) whilst the store subject property. itself extends to approximately 3,850 sq m (41,443 sq ft), comprising 2,438 sq m (26,238 sq ft) of ground floor space, together with 1,412 sq m 3 Cheadle Heath – Edgley Road SK3 0RJ (15,205 sq ft) of office and storage space at first floor level. The decked WM Morrisons (c. 79,750 sq ft) situated c. 3.8 km (2.4 miles) car park provides 202 spaces (1:205 sq ft) and offers easy pedestrian from the subject property. Built in 1997. access to the store from both the ground and first floor levels. Primary customer access is directly from Station Road whilst separate access to the segregated rear servicing area is also from Station Road, just to the north of the main customer entrance. Internally, the store is fitted out in the tenant’s standard corporate format whilst lifts provide access for customers entering from the car park at first floor level. Page 6 Waitrose Cheadle Hulme Planning Planning consent was granted by Stockport Metropolitan Borough Council on the 27th July 2006 for the: ‘Demolition of office building and erection of single/two storey foodstore with decked car park and new vehicular accesses to Station Road.’ Further documents are available on request. Tenure The property is held Freehold. Tenancy The entire property is let on a full repairing and insuring lease to Waitrose Ltd for a term of 25 years from 19th July 2007, at a current passing rent of £759,050 pa which reflects £18.32 psf based on a GIA of 41,443 sq ft (3,850 sq m). Covenant Dun & Bradstreet consider that Waitrose Ltd has a D&B Rating of 5A1 which represents a ‘minimal risk of business failure.’ We have set out summary account information below: 27 January 2008 27 January 2007 27 January 2006 Sales Turnover £3,737,200,000 £3,497,300,000 £3,158,900,000 Profit/(Loss) Before Taxes £120,300,000 £87,800,000 £96,100,000 Equity Shareholders Funds £722,500,000 £690,000,000 £598,900,000 Total Assets £1,939,300,000 £1,892,800,000 £1,707,100,000 More detailed account information is available on request. This plan is published for convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds only and should be checked against indicative boundaries are site Any only. of identification convenience plan is published for This Waitrose Cheadle Hulme Page 7 Estimated Rental Value The lease terms were agreed with Waitrose in early 2005 with the development agreement signed on the 3rd Foodstore Market August 2005.