186 – 188 HIGH STREET SLOUGH South East High Yielding Investment Opportunity Investment Summary

186 – 188 HIGH STREET SLOUGH South East High Yielding Investment Opportunity Investment summary

• Slough is a major commercial centre within the Thames Valley, located approximately 20 miles west of central London.

• The construction of Crossrail will reinforce Slough’s position as a major commuter town and transform journey times into London’s main employment centres.

• Slough’s town centre regeneration projects includes a £450m new commercial district on a 29 acre site to the north west of the town providing 1,600 new homes by 2020.

• 100% prime pitch directly opposite the entrance to the interlinking Queensmere and Observatory Shopping Centres.

• The property provides two prominent and attractive modern retail units with office accommodation above 186 High Street providing a total of 13,586 sq ft of accommodation with an 8 space car park to the rear.

• 79% of the total income secured against the strong covenants of River Island and LloydsPharmacy.

• Asset management opportunities include: obtaining change of use to residential on the office element, creating additional accommodation above 188 High Street and to the rear of the units on the car park and agreeing terms with a national retailer at a reversionary rent on 186 High Street.

• We are instructed to seek offers in excess of £2,420,000 (Two Million Four Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractiveNet Initial Yield of 8.00%, assuming purchaser’s costs of 5.80%.

186 – 188 HIGH STREET SLOUGH A41 Chelmsford 3 7 7 8 A418 1 2 7 A4010 22 A414 20 Amersham 24 M25 25 26 A12 19 5 6 High Barnet Enfield 5 18 M1 Brentwood 5 Wycombe Watford 4 Chigwell 17 A10 Location M40 M11 28 4 Beaconsfield A12 3 2 A406 4 Slough is a major commercial centre within the Thames Valley. The town 2 29 A127 Marlow A40 Harrow 1 A41 is located 3 miles north of Windsor and 17 miles east of Reading and 1 SLOUGH A13 Henley- Uxbridge A406 M25 approximately 20 miles west of central London. on-Thames Maidenhead CITY A13 LONDON 30 Distance Approx. Drive Time 7 6 Woolwich Destination 4 3 2 1 31 (Miles) (Mins) Windsor A4 1a Tilbury 14 Richmond M4 Reading A329(M) A205 Dartford M4 (J6) 1.5 5 13 HEATHROW A20 A2 2 12 A2 10 1 Kingston Windsor 3 8 Bracknell Staines 1 11 upon Thames Swanley 3 Croydon M25 (J15) 5 10 11 A232 Sutton M20 3 4 Heathrow 7 15 Camberley M25 Epsom M25 2 10 A22 3 4 A33 4 Woking 9 Reading 17 30 A24 A23 M26 9 5 Leatherhead 7 Sevenoaks M25 A228 Central London 20 50 Farnborough A3 5 8 6 A21 6 M3 Slough benefits from excellent road communications being situated Aldershot Guildford Dorking Redhill Oxted Reigate A26 7 between the M4, M40 and the M25 motorways, providing easy access A22 to London and the West Country. The construction of Crossrail will reinforce Slough’s position as a major commuter town and transform journey times. By 2019, Crossrail will provide direct access from Slough to the West End (30 mins) and City of London (37 mins). By 2020, the Western Rail Access to Heathrow (WRAtH) will connect Heathrow Airport to Slough within 6 minutes. Current train services run to London Paddington, with the fastest journey time of 18 minutes. London Heathrow is located approximately 7 miles to the east.

Crossrail Journey Times

35 minutes Forrest Harold 30 minutes Stratford Green IllfordGoodmayes Romford Wood Shenfield Slough Hayes & Ealing Bond Maryland Manor Seven Chadwell Gidea Brentwood Twyford Taplow Iver Harlington Hanwell Broadway Street Farringdon Whitechapel Park Kings Heath Park

Reading Maidenhead Burnham Langley West Southall West Acton PaddingtonTottenham Liverpool Woolwich Drayton Ealing Mainline Court Road Street Surface Underground Heathrow Canary Custom Abbey Airport Wharf House Wood 44 minutes

186 – 188 HIGH STREET SLOUGH Slough Local Economy Slough is home to 4,600 businesses and is the third most productive town in the UK. It has a highly competitive and dynamic business environment that contributes approximately £8 billion to the National economy. Slough’s town centre regeneration projects include the £450 million Heart of Slough project, that will see an entirely new commercial district on a 29 acre site to the north west of the town providing: 1,600 homes, 70,000 sq ft of office space, a bus station, and a new cultural centre for the town known as “The Curve”. The project is due to complete 2019/2020 and will provide major improvements to the local infrastructure and public realm. Pinewood Studios have also won permission for an ambitious £200 million expansion plan that will see over 1 million sq ft of new stages and workshops built over the next 15 years. Constructed by McAlpine, Pinewood’s plan will make it the biggest studio in the UK.

The construction of Crossrail High per capita spend 4.6% Slough is home to 4,600 will reinforce Slough’s position above the Retail PROMIS businesses and is the third most as a major commuter town average at £2,720 per annum productive town in the UK

186 – 188 HIGH STREET SLOUGH PARK STREET

Situation Description Located just 500 metres from Slough Railway Station, the The property provides two prominent and attractive modern The second floor of 186 High Street provides property occupies a 100% prime position on the pedestrianised retail units. 186 High Street is configured over ground, basement recently refurbished office accommodation within the High Street located directly opposite the interlinking and two upper floors whilst 188 High Street is arranged over following specification: Queensmere and Observatory Shopping Centres. The property ground and part first floor. 186 High Street (River Island) is • Self-contained ground floor entrance currently arranged to provide sales accommodation at ground overlooks a busy public square with a strong leisure offer that • Passenger lift leads to the principal entrance to the Queensmere Shopping and first floor and ancillary accommodation at basement • Air cooling system Centre. Anchored by Debenhams and Primark the 595,500 sq level, whilst the second floor provides separately let office ft Shopping Centres provide a 1,400 space car park with ongoing accommodation. 186 High Street (LloydsPharmacy) currently • Kitchenette proposals to re-develop some of the retail accommodation to provides sales accommodation at ground floor and ancillary • EPC: C (75) space at first floor level. The first floor is set back from the High provide a new façade and residential accommodation. Adjacent • Private Male and Female WCs retailers include JD Sports and Boots. Street and provides an excellent opportunity for a purchaser to create additional space at part first and second floor level. • 3 Car Parking spaces accessed via Park Street In addition, there is an opportunity to extend to the rear of the retail units onto the car park, creating additional retail accommodation.

186 – 188 HIGH STREET SLOUGH Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following areas:

Ground Floor Sales ITZA Ground Floor Ancillary Basement Ancillary First Floor Sales First Floor Ancillary 2nd Floor Offices Total Address Tenant Sq m Sq ft Units Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft Sq m Sq ft

186 High Street River Island (Retail) 263.1 2,832 1,227 9.6 103 188.9 2,033 276.9 2,980 738.5 7,948

188 High Street LloydsPharmacy (Retail) 145.1 1,562 738 59.4 639 204.5 2,201

Seymour House Zam Zam (Offices) 322.4 3,437 322.4 3,437

Total 1,265.4 13,586

6 1 Tenure

6 6

1 1 Freehold, as outlined in red on the Ordnance Survey Plan. The property occupies a site of approximately 0.19 acres (0.08 hectares).

4 6 1 30.6m

Town Square

7 1

8 7 1

TCBs

8 1

8 8

1 TCBs

9 1

9 2

1 30.2m 21

9 1

4 8

9 9 1 1

Post Office

4 0 9 2

TCB

C 6

H 1 2

A o

P t

L 6

S 0 TR 2

EET

0 d e 2 i 2 r s

e u

l o o o t

H 7

o 8 1 t 2

5 4

9 8

ESS

1 1

1 4 4 2

15 0

1 6

9 4 Pegasus Court 0m 10m 20m 30m

Lease Expiry Next Rent Rent Passing Address Tenant Lease Start Comments (Break date) Review (pa) £100,000 Outside 1954 Act. Landlord and tenant break option any time during the 186 High Street River Island Clothing Co. Ltd 01/01/2016 31/12/2017 - term with 3 months notice required. Offer from national fashion retailer on (£58.00 ZA) 10 year term (5 year break) at a rent of £120,000 pa (£74 ZA headline). 21/09/2024 £60,000 188 High Street LloydsPharmacy Ltd 22/09/2014 22/09/2019 Tenant break option with 6 months notice required. (22/09/2019) (£79.15 ZA) Zam Zam Educational and £45,000 Second Floor, Seymour House 02/12/2015 01/12/2020 - Outside 1954 Act, with 6 month rent deposit and 6 month rent free. Cultural Academy London (£13.09 psf) Total £205,000 pa

Covenant

River Island Clothing Co. Limited LloydsPharmacy Ltd Zam Zam Educational and Cultural Academy London River Island Clothing Co. Limited (00636095) is one of the LloydsPharmacy Ltd (00758153) is a British pharmacy company Zam Zam Education is a charity (Charity No. 1161635) with a head leading high street fashion brands, which operates in a number with over 1,600 pharmacies, employing over 17,000 staff and office in Maidenhead. The company offers educational courses of worldwide markets. Established in 1948, River Island operates dispensing over 150 million prescription items every year. in maths, languages, IT and business management. 350 stores across the UK, Ireland and internationally throughout The company are an undoubted covenant and have a D&B rating Asia, the Middle East and Europe. The retailer has one of of 5A1. the best multi-platform retail offers, which are increasingly LloydsPharmacy Ltd was formed in 1998 and is a wholly owned integrated with the in-store offer. subsidiary of Celesio AG, a leading healthcare provider with River Island announced a 69.4% increase in pre-tax profits to business across Europe and Brazil. As of July 2015, Lloyd’s £149.1m for the year to December 2014, as turnover increased (Celesio AG) announced the purchase of all 281 Sainsbury’s 10.4% to £925.8m. River Island Clothing Company has a D&B pharmacies for £125 million in a deal that transferred all 2,500 financial strength rating of 5A1 based on tangible net worth of Sainsbury’s pharmacy employees to the company. The deal £279,600,000 (Dec 014) which represents a minimum risk of is expected to complete by the end of February 2016. Their business failure. Their accounts are summarised below: accounts are summarised below:

31/12/2014 31/12/2013 28/12/2012 31/03/2015* 31/03/2013 28/12/2012 £ (000’s) £ (000’s) £ (000’s) £ (000’s) £ (000’s) £ (000’s) Turnover 890,400 809,500 739,700 Turnover 2,332,635 1,784,978 1,720,857 Profit (Loss) Profit (Loss) Before 145,800 86,100 93,300 Before 29,852 14,489 17,967 Taxation Taxation Net Assets 290,600 243,700 269,700 Net Assets 126,198 92,981 82,093

* Extended year end from 31/12/2014 to 31/3/2015.

186 – 188 HIGH STREET SLOUGH Asset Management VAT Further Information Opportunities The property has been elected for VAT purposes. It is the For further information or to arrange an intention of the vendor to treat this transaction as a Transfer of inspection please contact: The property provides the following asset management opportunities a Going Concern (TOGC). to enhance value: Alastair Bird 020 7861 1232 • Create additional accommodation at part 1st and 2nd floor EPC [email protected] above 188 High Street (LloydsPharmacy) subject to necessary 188 High Street has an EPC rating of D (80). planning consents. Victoria Prew 186 High Street has an EPC rating of C (51). 020 7861 5447 • Extend to the rear of the units and create additional retail Seymour House (Offices) has an EPC Rating of C (75). [email protected] accommodation. Full copies of the EPC is available upon request. Knight Frank • Obtain change of use on the office accommodation to residential 55 Baker Street use. Factoring in the impact of Crossrail, house price growth in Proposal London Slough is forecasted to increase by 45% between 2014 – 2020. W1U 8AN We are instructed to seek offers in excess of £2,420,000 United Kingdom • Re-gear the River Island lease. (Two Million Four Hundred and Twenty Thousand Pounds) • The River Island lease is outside the 1954 Act. Our client has subject to contract and exclusive of VAT. A purchase at this www.KnightFrank.com received an attractive offer on 186 High Street from a national level reflects an attractiveNet Initial Yield of 8.00%, assuming fashion retailer on a new 10 year lease (5 year break) at a rent purchaser’s costs of 5.80%. of £120,000 pa (£74 ZA headline). Further information can be provided upon request.

MISREPRESENTATION ACT: 1. No description or information given by Knight Frank whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. Knight Frank have no authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller(s) or lessor(s). 2. These particulars do not constitute, nor constitute part of, an offer or contract,nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3. The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to, or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. These matters must be verified by any intending buyer or lessee. 5. Any buyer or lessee must satisfy himself by inspection or otherwise as to the correctness of any information given. March 2016. Designed & Produced by Creativeworld. Tel: 01282 858200.