LONG INCOME FREEHOLD CAR PARK INVESTMENT NCP LEE CIRCLE CAR PARK LEICESTER LE1 3RE INVESTMENT SUMMARY

• Substantial freehold car park investment • Located within the inner ring road in Leicester City Centre • Arranged over 7 decked levels with 1,070 car parking spaces and ancillary retail accommodation at ground floor level • Total site area extending to 1.81 acres (0.73 ha) • Fully let on a overriding lease (including NCP all ancillary retail accommodation) to LEE CIRCLE National Car Parks Limited from 19th CAR PARK June 2002 until 28th May 2037 providing 18 years unexpired • Current passing rent £296,632 per annum reflecting a very low passing rent of £277 per space • The lease benefits from annual rental uplifts in line with RPI (subject to a collar and cap of 1.5% & 5% per annum) with the next uplift due in June 2020 • The large site area provides excellent long term redevelopment opportunities within an area which has seen an increasing residential massing • Offers sought in excess of £5,300,000 (Five Million and Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.25% after allowing for purchaser’s costs of 6.60% A60

LOCATION A6097 A610 A52 A1 Leicester is located in the , approximately 26 miles (42 km) south A6514 of Nottingham, 32 miles (51 km) from and 45 miles (73 km) to the north east of . A46 A515 A38 NOTTINGHAM The city has an estimated population of over 400,000 residents. It is the largest city in the East DERY Midlands and the 11th largest city in the UK. The city attracts over half a million workers on a daily A50 A453 M1 basis and there are over 1.2 million workers within commutable distance. A607 A50 A518 NCP LEE The 2018 Good Growth for Cities Index ranks Leicester as the 10th best city in the UK to live and CIRCLE work, ahead of regional neighbours Birmingham, Nottingham and Derby. The City was also named CAR PARK A606 as the best place in the country for tech start-ups in the Tech Nation Report and came second in STAFFORDSTAFFORD A42 the study completed by Start Up Britain as one of the best places to start a business. A46

A38 A607 A34 A515 A460

A5192 A46 M TOLL LICHFIELD A50 A444

A5 A452 LEICESTER A47 Leicester boasts 3 large universities; There are two successful major sporting clubs; A461 University of Leicester, De Montfort University Leicester City Football Club and Leicester and Loughborough University which Tigers. The former having secured the A34 M A6 combined have a population of approximately premiership title in 2015/16 and the latter 10 M 66,000 students (approximately 50% of times English Rugby Union champions. Both whom live in the city centre). of these clubs have provided major marketing A3 A5 A427 boosts to the city over recent years. M1 A45 A38 A41 M COVENTRY M A426 IRMINGHAM A14 A435 A508 A43

URLEYS AY ORCHARD ST

WHARF ST N NCP LEE ST MATTHES AY CIRCLE CONNECTIVITY CAR PARK

GARDEN ST JUBILEE RD ROAD RAIL

ABBEY ST OLD MILTON ST WHEAT ST Leicester provides the juncture of the north-south Midland BYRON ST Leicester city centre is situated approximately 4 miles north east of Junction 21 of the . J21 is also the Mainline and east-west Cross Country Route.

MANSFIELD ST CRAFTON ST W FLEET ST LEE ST interchange for the M1 and M69 and therefore provides easy The provides direct services to London in access to the , north east and the south east. approximately 1 hour as well as to Derby, Nottingham, GLADSTONE ST Junctions 21a and 22 of the M1 lie to the west and north west and . The cross country route links to Peterborough and ERSKINE ST of the Leicester and provide alternative access routes to the Cambridge to the east and Birmingham to the west.

CLYDE ST WHARF ST S north of the city via the A50. ST JAMES ST

HILL ST

BELGRAVE GATE

CLARENCE ST AIR MORLEDGE ST The A6 to the north of the city provides access to Loughbrough

WIMBLEDON ST ANN ST and Derby to the north west and the A46 links to Nottingham East Midlands Airport is approximately 19 miles north west of

HUMBERSTONE GATE via the A606 and A52 directly to the north. the city. With passenger numbers of approximately 4.5 million (2015), the airport is the 11th busiest airport in the UK by passenger traffic. SITUATION DESCRIPTION The property is situated immediately adjacent to The property comprises a broadly semi-circular site with other car parks within the city which adopt 24 hour rates Leicester’s main shopping district in an area known surface car parking to the front and a 7 level multi-storey car as follows: as St Georges North. park to the rear. The multi-storey element is arranged as a full Granby Halls - £15 ramped deck system providing a single point of access and Haymarket Shopping Centre and Bus Station are within a exit. In total there are 1,070 car parking spaces. Haymarket - £18 (2 x 12 hour stays) 2 minute walk to the east of the property and Highcross shopping centre is accessible on foot in under 5 minutes. Within the multi-storey element there is a range of ancillary St Nicholas Circle - £20 accommodation including a vacant former supermarket. All of Distances to key city locations are as follows: Highcross Shopping Centre - £20 the accommodation (including vacant accommodation) falls within the tenant’s demise. Welford Road - £22 1. 0.2 MILES from Haymarket Shopping Centre Parking within Lee Circle NCP costs £3.00 for up to 24 hours Rutland Centre - £25 2. 0.3 MILES from Highcross Shopping Centre within the multi storey element and £8.00 for 24 hours within the surface element. This represents a substantial discount to East Street - £25 3. 0.6 MILES from Leicester Railway Station

6 4. 1.0 MILES from Leicester Tigers Rugby Club 5 4 5. 1.4 MILES from the King Power Stadium

3 6. 1.6 MILES from the University of Leicester

2

1 TENANCY TENURE COVENANT The property is let in its entirety to National Car Parks Freehold. NATIONAL CAR PARKS LIMITED Limited on full repairing and insuring terms from 19th June 2002 to 28th May 2037 with no break options. NCP is the UK’s largest and longest standing car park This provides approximately 18 years unexpired term. SITE operator with over 150,000 spaces across more than 500 car The current passing rent is £296,632 per annum reflecting a parks in towns, cities, airports and railway stations. very low rent of £277 per space. The site extends approximately 1.81 acres (0.73 ha). The company was founded in 1931 and the NCP name was The lease is subject to annual rental uplifts in line with RPI The following plan shows the approximate site boundaries. adopted in 1999. In August 2017, the business was sold to (subject to a collar and cap of 1.5% & 5% per annum). The Park 24, a listed Japanese strategic buyer and Development 2019 uplift has already been agreed (and is reflected in the Bank of Japan Inc., a Japanese government-owned financial quoted passing rent), next uplift is due on 29th June 2020. institution. The Development Bank of Japan is 100% owned The entire site including all ancillary accommodation is by the Government of Japan. demised to the tenant. The tenant has an option to renew at expiry for a term of 20 years. Prior to the NCP acquisition, Park24 was already a major parking operator with 1,043,570 spaces in over 19,000 sites, The tenant has sub-let a ground floor suite, comprising across 8 countries in the southern hemisphere. It is widely 4,940 sq ft, to Fabric Warehouse for £17,000 per annum reported that the acquisition of NCP was to enable Park 24 from 4th December 2004 until 3rd December 2024 with a to continue its international growth by expanding into the review and break option on 4th December 2019. European market.

National Car Parks Limited’s last three years accounts are summarised as follows:

Individual Individual Individual 31/03/2017 25/03/2016 27/03/2015 (000’s) (000’s) (000’s)

Map is for indicative purposes only Turnover £211,461 £202,703 £198,736

Profit / (Loss) Before £24,793 £28,001 £14,859 Taxes

Tangible Net Worth £210,138 £186,897 £156,973

Net Current Assets £190,832 £169,489 £157,852 (Liabilities) DEVELOPMENT In recent years, Leicester has seen a number of major Other major developments in the near vicinity include Charles • At least 50,000 sq m of office development Street Buildings’ £47m development of hotels and offices at a development projects completed as well as significant local • 54% of residential development within the city will take infrastructure improvements. site on Vaughan Way (approximately 0.8 miles south west of the subject property) on the opposite side of Vaughan Way to place within the Strategic Regeneration Area To the east of the city centre (approximately 0.8 miles east the John Lewis store in High Cross Shopping Centre. • Potential for leisure uses within the St George’s North of the subject property), a significant regeneration project is area of the city underway known as Leicester Waterside which ultimately will In addition, Developers LCL have plans for a significant see 150 acres of poor quality industrial transformed into a residential led development opposite the subject property Outlined below is a plan showing the significant residential residential led neighbourhood. which would see investment of c. £50m. The site is allocated massing which has taken place within the local vicinity of the within the SHLAA and is expected to deliver in the order of property over recent years. The first phase has seen total investment of £50m by the 155 units. local authority to acquire a 17 acre site which will deliver 350 The subject property provides a total site area of new homes and almost 5,500 sq m of offices, green space Lee Circle falls within an area identified within the Core approximately 1.81 acres and could provide a substantial and public realm. The area has since attracted over £200m of Strategy as a Strategic Regeneration Area (policy CS4 within residential development opportunity in the long term (subject private sector investment. the 2014 Core Strategy). The Strategic Regeneration Area to planning). will be the focus of major housing development and physical change, the strategy includes:

1 SHLAA site 2017 7 SHLAA site 2016 Site No. 409 Site No. 232 Name: Lee Circle Fleet House Name: Lower Lee Street - Car Park 11 Area: 0.24ha Area: 0.07ha Dwellings: 155 Dwellings: 54 Planning Status: Prior Approval Planning Status: Under construction Deliverable Deliverable

SHLAA site 2017 Name: Cery Court 10 2 8 Site No. 248 Dwellings: 52 12 Name: 80 Wharf Street South Built: 2010 Area: 0.13ha Dwellings: 72 SHLAA site 2017 (and 2016) 9 Planning Status: Other identified Site No. 241 brownfield capacity Name: Lee Street - Lee Circle 13 Developable Area: 0.16ha 3 4 Dwellings: 72 Name: The Exchange Planning Status: Other identified 3 Dwellings: 129 brownfield capacity Built: 2011 Developable

5 Name: Metropolitan Apartments Name: Clyde Court 4 10 6 Dwellings: 85 Dwellings: Student Accommodation Built: 2013 155 beds Built: 2013 5 Name: E1 Living 2 Dwellings: 51 11 Name: St Georges Mill 7 Built: 2018 Dwellings: Student accommodation 101 beds 8 6 SHLAA site 2016 Built: 2001 Site No. 74 Name: Epic House - Lower Hill Street Name: 3 St James Street 12 1 Area: 0.05ha Dwellings: 41 Dwellings: 48 Built: 2017 9 Planning Status: Under construction Deliverable 13 Name: The Boat House Dwellings: Residential Care Home Built: Under Construction No of Rent per Price per Address Rent pa Price NIY Date Comments spaces space space

NCP, Lee Circle, INVESTMENT 1,070 £296,632 £5,300,000 5.25% £277 £4,953 Available Subject property Leicester MARKET NCP, Welford Road, 550 £639,414 £12,625,000 4.75% £1,163 £22,955 Available On the market COMMENTARY Leicester

Set out on the right are some recent NCP, Church Street, Under 243 £177,804 £3,880,000 4.30% £732 £15,967 Surface car park investment transactions of relevance to Kings Lynn offer this opportunity. NCP, North Street, Surface car park. 83 £98,376 £1,900,000 5.02% £1,185 £22,892 Mar-19 Newport Sold at auction

VAT Multi storey car NCP, Rutland Centre, 526 £847,964 £16,700,000 4.75% £1,612 £31,749 Dec-18 park. Purchased The asset is elected for VAT purposes. Leicester It is anticipated that the transaction Pickering Trust. will not be capable of being treated Multi storey car NCP, Mount Street, as a TOGC and therefore VAT will be 514 £961,453 £22,450,000 4.20% £1,871 £43,677 Jul-18 park. Purchased by Nottingham payable on the purchase price. Colliers Capital

NCP, Browns Yard, 75 £176,821 £4,000,000 4.01% £2,358 £53,333 Jul-18 Surface car park DATA ROOM Chester Surface car park. NCP, Spinning School A data room is available via 146 £110,000 £2,500,000 4.14% £753 £17,123 Jun-18 Purchased by Lane, Tamworth the following web link Tamworth Council www.ncpabbeystreet.com. NCP, Montgomery Multi storey 472 £815,000 £18,393,915 4.18% £1,727 £38,970 Dec-17 Street, Belfast car park

NCP, Rumbold Street, 240 £147,786 £3,260,000 4.26% £616 £13,583 Sep-17 Surface car park Lincoln

NCP, Brayford Street, 60 £168,374 £3,320,000 4.76% £2,806 £55,333 Sep-17 Surface car park Lincoln

NCP, Carliol Square, 159 £157,712 £3,400,000 4.36% £992 £21,384 May-17 Surface car park

NCP, Union Place, 178 £288,751 £5,700,000 4.76% £1,622 £32,022 May-17 Surface car park Worthing

NCP, Mitchell Street, 220 £482,566 £10,600,000 4.40% £2,193 £48,182 Mar-17 Surface car park Glasgow CONTACT DETAILS

Matt Jenns E [email protected] T 0121 634 8447 M 07968 550 351

Jasper Davies E [email protected] T 0121 634 8476 M 07870 183 401

PROPOSAL Will Elphinstone E [email protected] Offers sought in excess of £5,300,000 (Five Million T 020 3904 3573 and Three Hundred Thousand Pounds), subject to M 07876 131 346 contract and exclusive of VAT. This reflects an attractive Jamie Baruch net initial yield of 5.25% after allowing for purchaser’s E [email protected] costs of 6.60% T 020 3903 7310 M 07889 085 112

Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. June 2019