Octagon Retail Park | Stoke-On-Trent 1

Octagon Retail Park | Stoke-on-Trent 1

WELL SECURED RETAIL WAREHOUSE OPPORTUNITY OCTAGON RETAIL PARK

HANLEY, STOKE-ON TRENT CHARTERED SURVEYORS

Octagon Retail Park | Stoke-on-Trent 2 INVESTMENT SUMMARY Etruria Road, Hanley, Stoke on Trent, ST1 5RR

• Highly prominent and accessible retail warehouse and leisure park fronting Etruria Road within Hanley, on the edge of Stoke-on-Trent city centre. • The property comprises four elements providing 8 units with a total floor area of 10,597 sq m (114,067 sq ft). • Car parking ratio of 1:286 sq ft. • Freehold. • Open A1 non-food and D2 leisure consent. STOKE-ON-TRENT • The scheme is well let and benefits from an average weighted unexpired lease term of 11 years and 9.7 years including breaks. • Significant asset management angles. • The total current rent passing is £1,766,248 per annum (£8.52 to Postcode: ST1 5RR £19.47 per sq ft). Grid Reference: SJ 87524 47630

We are instructed to seek offers in excess of £21,520,000 (Twenty One Million Five Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.76%, rising to 8.00% through a fixed increase in July 2013, assuming purchasers costs of 5.80%.

Octagon Retail Park | Stoke-on-Trent 3 LOCATION

Stoke-on-Trent lies within the county of Staffordshire, approximately 64 km (40 miles) north west of Birmingham, 48 km (30 miles) south of Manchester and 257 km (160 miles) north west of London. Stoke-on-Trent provides an extensive urban area population of 260,000 persons (2001 census) extending to 612,000 persons within 20 km of the city centre, ranking the town 26 out of the PROMIS Centres. Stoke-on-Trent has excellent communications being easily accessible from the A500, which runs north to south through the heart of the city, providing a direct link to the M6 motorway. Stoke-on-Trent is also situated at the convergence of the A34, A50, A52 and A53. Direct train services run to London Euston, with a journey time of 1 hour 45 minutes. Octagon Retail Park | Stoke-on-Trent 4 SITUATION M6 CONGLETON

SANDBACH A523 FESTIVAL HEIGHTS RETAIL PARK A530 A533 A34 A53 LEEK ELKSTONES MORRISONS CREWE

KIDSGROVE

A523 PC WORLD CHEDDLETON A500 WESTON A500 A53 FESTIVAL A51 M6 RETAIL PARK

D NEWCASTLE UNDER LYME A NEWCASTLE UNDER LYME O OCTAGON R

E G RETAIL PARK D STOKE ON TRENT A52 I R CENTURY B O C RETAIL PARK A525

DFS RS

T A520 SAINSBURY’S REET ( A525

A53 A ALTON 5006 P

)

T (A5010) T E TRURIA ROAD E R

A53 A51 GENTING CASINO W

(

A50 5

0 A34 ) CHECKLEY FULFORD FESTIVAL A51 LEISURE PARK MORETON WOOD TESCO EXTRA

MARKET DRAYTON STONE M6 UTTOXETER

A51

C H PO F I T E T ER LD STR IES ) The property is situated in an accessible and highly visible location fronting WAY (A5008

E Etruria Road within Hanley, on the edge of Stoke-on-Trent City Centre. ET

Hanley is the principal town and commercial Octagon Retail Park lies in close proximity to centre within the Stoke-on-Trent conurbation Century Retail Park and Festival Retail Park, know as ‘The Potteries’ which provides the main which contain a number of national retailers concentration of retailing, including strong retail including Argos Extra, B&Q, Boots, Mothercare warehouse provisions and the 561,000 sq ft World, Next and Toys R Us. In addition Potteries Shopping Centre. Sainsbury’s, Morrisons and Tesco all have foodstores in the locality. Octagon Retail Park | Stoke-on-Trent 5 DESCRIPTION

Octagon Retail Park was developed by Morrison Developments in 1998. The scheme provides a purpose built retail warehouse and leisure park comprising 8 units totalling a gross internal area of 114,067 sq ft with customer car parking. Units A1 and A2 sit on the western boundary of the site; units B&C provide a standalone unit with excellent prominence onto Etruria Road; Units D1&2, currently a bingo and casino unit, flank the southern boundary of the site also with excellent prominence alongside Etruria Road; Units E to H comprise a linear terrace of three retail warehouse units constructed towards the north east corner of the site. The buildings are of steel frame construction with a mixture of lightweight cladding panels, curtain walling and brickwork/ blockwork elevations with lightweight metal roof cladding. Internally, the units are fitted out to the individual tenant’s specification. All the units, other than Unit E, benefit from mezzanine floors. Unit E has an eaves height of 6 metres sufficient to accommodate the installation of a mezzanine, subject to planning. There is a tarmacadam surface car park, which provides 398 spaces, providing a ratio of 1:286 sq ft. The site area extends to approximately 2.98 hectares (7.35 acres), providing a low site cover of 35%. Octagon Retail Park | Stoke-on-Trent 6 ACCOMMODATION

Unit Use Ground Floor Ground Floor Mezzanine Mezzanine sq m sq ft sq m sq ft A1 Retail 2,735.80 29,448 410.90 4,423 A2 Retail 725.00 7,804 570.30 6,139 B/C Retail 995.00 10,710 566.90 6,102 D1 Leisure 1,761.50 18,961 278.40 2,997 D2 Leisure 1,104.50 11,889 409.70 4,410 E Retail 937.30 10,089 F Retail 695.30 7,484 120.50 1,297 G/H Retail 1,642.70 17,682 219.60 2,364 Total GIA 10,597.10 114,067

PLANNING

The property has the benefit of an Open A1 non-food planning consent, with the exception of restrictions applied to Unit B&C and units D1&2 which have a D2 use. COBRIDGE ROAD (A53) CENTURY Outline planning for the original scheme was granted by City of RETAIL PARK Stoke on Trent in 1997, for a “leisure, non-food retail, hotel and pub/restaurant development”. Unit B&C is subject to the following use restrictions:

“Not to be used for the sale or storage of food, drink, clothing, NEW CENTURY STREET footwear, books, toys, audio-visual entertainment media or chemists goods; all except where the sale is ancillary to the principal permitted retail use of the premises”. Copies of the relevant consents are available on request. OPEN A1 NON-FOOD OPEN A1 WITH RESTRICTIONS

D2 ETRURIA ROAD (A50)

This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. Octagon Retail Park | Stoke-on-Trent 7 GROUND CONDITIONS TENURE

ENVIRON carried out a Phase 1 Environmental Survey of the Freehold. property in January 2012. The report concluded that the risk of any environmental liability associated with ground conditions at the site is considered to be low whilst it remains in its current use. A copy of the report is available on request.

TENANCY DETAILS

The property benefits from an average weighted unexpired lease term of 11 years to expiries and 9.7 years to breaks. All leases are drawn on full repairing and insuring terms with 5 yearly upward only rent reviews as follows:

Area Unit Tenant GIA sq m sq ft Lease Start Lease Expiry Rent Review Rent (£pa) Rent (£psm) Rent (£psf) Comments

A1 BHS Ltd 2,736 29,448 09 July 2008 08 July 2023 09 July 2013 529,744 193.62 17.99 Fixed increase at 1st RR to £584,880 pa A2 Next Group Plc 725 7,804 02 Nov 2010 01 Nov 2020 02 Nov 2015 139,379 192.25 17.86 RR Capped at £161,578.44 pa Service Charge Cap linked to RPI B/C CS Lounge Suites Ltd 995 10,710 27 Sept 2010 26 Sept 2025 27 Sept 2015 196,000 196.98 18.30 D1/2 Mecca Bingo Ltd 2,866 30,850 25 Mar 1998 24 Mar 2023 25 Mar 2013 263,000 91.77 8.53 Lease permits use D2, A1 or A3 subject to consent. A change from D2 to another approved use triggers an immediate rent review to the higher of existing or new use. E Starplan Furniture Ltd 937 10,089 02 June 2009 01 June 2019 02 June 2014 170,765 182.25 16.93 Tenants break in 2 June 2014 Tenants break option subject to £75,000 penalty. F Mamas & Papas 695 7,484 20 Sept 1999 19 Sept 2024 20 Sept 2014 145,685 209.62 19.47 Tenants break in 19 Sept 2014 (Retail) Ltd G/H JJB Sports Plc 1,643 17,682 24 Mar 2000 24 Mar 2023 25 Mar 2015 321,675 195.79 18.19 Total 10,597 114,067 1,766,248 Octagon Retail Park | Stoke-on-Trent 8 TENANTS FINANCIAL INFORMATION

Unit Tenant Company Number D&B Rating Year End Sales Pre-Tax Profit (loss) Net Worth

A1 BHS Ltd 00229606 2A2 28/08/10 £794,883,000 (£7,238,000) £2,519,000 A2 Next Group Plc 00035161 5A1 29/01/11 £188,400,000 £590,300,000 £1,667,000,000 B&C CS Lounge Suites Ltd 01778734 3A1 31/12/10 £62,302,350 £593,263 £8,556,187 D1&2 Mecca Bingo Ltd 1854120 5A1 31/12/10 £213,466,000 £41,047,000 £398,109,000 E Starplan Furniture Ltd NI017138 3A1 30/04/11 £15,697,075 £438,820 £13,230,103 F Mamas & Papas (Retail) Ltd 1529849 3A1 03/04/11 £99,819,000 (95,000) £8,027,000 G&H JJB Sports Plc 1024895 3A4 30/01/11 £362,894,000 (181,365,000) £10,100,000

29% 30% 18%

Income by Income by D&B Rating Unexpired Term

18% 23% 82%

5A1 5-10 years 3A1 10-15 years 3A4 2A2 Octagon Retail Park | Stoke-on-Trent 9 ASSET MANAGEMENT

The introduction of BHS and Next has seen Octagon Retail Park significantly improve as a trading location and it is considered that in the medium term the scheme will continue to strengthen with the introduction of further open A1 non food retailers. The following angles are identified as key opportunities: • Enhance tenant mix through reletting of units E to H to open A1 non-food retailers. • Pod/A3 Development on car park, subject to planning. • Change of use on units D1&D2 to Class A1 retail use providing significant reversion, subject to planning. • Improve profile of retail park through re-orientation and inclusion of DFS unit. • New A1 unit adjacent to Unit E, subject to planning.

VALUE ADDED TAX

The property has been elected for VAT purposes. It is anticipated any sale will be treated as a Transfer of a Going Concern. FESTIVAL HEIGHTS RETAIL PARK

FESTIVAL PARK FESTIVAL LEISURE SCHEME RETAIL PARK

OCTAGON RETAIL PARK

CENTURY RETAIL PARK

GENTING CASINO

STOKE ON TRENT CITY CENTRE Octagon Retail Park | Stoke-on-Trent 11 RETAIL WAREHOUSE PROVISION PROPOSAL WITHIN THE LOCALITY

Hanley forms the main retailing location within Stoke-on-Trent. In particular, the retail warehousing We are instructed to seek offers in surrounding the roundabout junction between the A53 and the A5010 totals approximately excess of £21,520,000 (Twenty One 500,000 sq ft. Million Five Hundred and Twenty Thousand Pounds), subject to contract Retail Warehouse provision within the locality Century Retail Park (owned by Standard and exclusive of VAT. A purchase at includes; Life) is located opposite the entrance to this level reflects a net initial yield Octagon Retail Park and provides approximately Festival Retail Park (owned by PRUPIM) of 7.76%, rising to 8.00% through a 45,500 sq ft of Open A1 retail warehousing. comprises approximately 208,500 sq ft of Staples occupy 12,866 sq ft and are currently fixed increase in July 2013, assuming Open A1 non-food accommodation. Principal paying £19.50 per sq ft. occupiers include Next, New Look, Outfit, purchasers costs of 5.80%. Mothercare World, Argos, Boots, B&Q and PC World occupies a solus unit opposite Toys R Us. Festival Park is considered a ‘quasi Festival Retail Park. The unit which fashion park’ which is reflected in the rents that totals 18,777 sq ft of Open A1 non-food have been achieved: In 2009 Brantano agreed accommodation, is owned by clients of £32.50 per sq ft at rent review and new lettings Cushman & Wakefield Investors. to both The Outfit and New Look were agreed DFS occupy a 20,000 sq ft unit next to Octagon on turnover rents thought to be in the region of Retail Park. £36.00 per sq ft. In 2007 Next took the former Apollo 2000 unit paying £38.00 per sq ft. Sainsbury’s, Morrisons and Tesco all occupy large format stores within the locality. Festival Heights Retail Park (owned by Legal & General) adjoins Festival Retail Park, comprises approximately 90,000 sq ft. The park has predominantly a bulky goods consent. Tenants include Esporta, Currys, Halfords, Harveys and Pets at Home. The rental tone for the park is currently £19.00 per sq ft although historically rents agreed in 2006 reached £22.75 per sq ft. Octagon Retail Park | Stoke-on-Trent 12

Further Information: For further information please contact the vendor’s sole selling agents;

CHARTERED SURVEYORS Jonnie Ray Tim Cuzens James Welch Cortex Partners, 7 Cork Street, London W1S 3LH. T: 020 7534 0994 T: 020 7534 0992 T: 020 7534 0993 E: [email protected] E: [email protected] E: [email protected]

Misrepresentation Act 1967 Cortex Partners, for themselves and the vendors of the property whose agents they are, give notice that: 4. Rents and prices quoted may be subject to VAT in addition: 1. These particulars are a general outline only for the guidance of prospective purchasers and do not constitute the whole 5. Cortex Partners will not be liable in negligence or otherwise for any loss arising from the use of these particulars: or any part of an offer or contract: 6. No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which 2. Cortex Partners cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary have been sold or withdrawn: permissions of use and occupation and other details contained herein and therefore prospective purchasers must not 7. Cortex Partners have not made any investigations into the existence or otherwise of any issues concerning pollution, rely on them as statements of factor representations and must satisfy themselves as to accuracy: potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. 3. Cortex Partners or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property:

107231.001 March 2012