THE MENAI CENTRE BANGOR, NORTH LL57 1DX

PRIME CITY CENTRE RETAIL INVESTMENT OPPORTUNITY SUBJECT PROPERTY COMPRISES 22 MODERN, FULLY FLEXIBLE RETAIL UNITS, WITH THE MAJORITY DEVELOPED IN 2008 AND ANCHORED BY A LONG LET DEBENHAMS DEPARTMENT STORE (57,192 SQ FT).

THE MENAI CENTRE BANGOR, THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

INVESTMENT CONSIDERATIONS

„„ Bangor is a historic University City, attracting significant tourism spend and benefitting from a direct rail service from (Euston). „„ The Menai Centre is the prime and dominant shopping location within Bangor City. „„ Freehold interest of retail accommodation plus long leasehold interest of multi-storey car park adjacent. „„ Total floor area of approximately 140,000 sq ft. „„ The property comprises 22 modern, fully flexible retail units, with the majority developed in 2008 and anchored by a long let Debenhams department store (57,192 sq ft). „„ Multi-let to a range of excellent High Street names, including Debenhams, River Island, H&M, JD Sports, Superdrug, Poundland and Caffè Nero. „„ Current gross rental income of £1.53m per annum exclusive and net rental income of £1.39m per annum exclusive, after deductions of landlord’s shortfalls. „„ 80% of the current rental income is secured against tenants with a minimum risk of business failure based upon D&B rating. „„ 42.6% of the income secured against Debenhams (by gross income, 50.1% by net income), who are subject to 5 yearly fixed increases of 2.5% per annum compound, until April 2038. „„ Highly attractive WAULT to expiry of 11.69 years (11.04 years) to break. „„ Asset management opportunities to let remaining vacants and improve the tenant mix. „„ Strong underlying sales generated from the majority of key occupiers relative to costs. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

LOCATION BANGOR Bangor is a historic University City located on the North Wales coast, near the Menai Strait at the foot of the National Park in the County of . COMMUNICATIONS

At the heart of the City Bangor benefits from a is the ancient St Deiniol’s mainline railway station Cathedral, one of the a short walk from the High oldest Cathedral sites in Street, which provides Britain, founded in 525 regular service to to the west A.D. Bangor has its own Victorian Pier, (approximately 35 minutes) and which extends into the Menai Strait; to the east (approximately 60 minutes). across the Menai Strait is the Isle of There is a direct service from Bangor , which is connected to the Station to London (Euston), which takes mainland by two picturesque , only 3 hours 15 minutes. the Menai Suspension and . Bangor has developed as a key University City over the The City benefits past decade with Bangor from strong road University ranked 65th communications, being out of 129 UK universities in the 2018 situated approximately University League Table and 3rd in 14.5 kilometres (9 miles) north of the top universities in Wales and some 96.5 kilometres behind Cardiff and Swansea. (60 miles) west of Chester. The City is is regarded situated just north of the junction as one of the most economical of the A55 and the A5. The A5 links locations for a student to study with the M54 to Telford, whilst the A55 and presently enjoys some 14,000 links with the M56 and M53 at Chester, resident students providing a healthy providing access to the national impact upon the local economy. In motorway network. addition, the Snowdonian mountain area and numerous beaches on the Llyn peninsular close by, bring tourism to the area on a year-round basis and especially over the summer season. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

SOCIO DEMOGRAPHIC PROFILE

The County of Gwynedd has a population of approximately 121,900 persons based upon the 2011 Census. The total population within the Bangor primary catchment area is 167,000.

The level of car ownership within Bangor is above average with a broadly average proportion of multiple car owning households.

In 2010, the service sector accounted for 72% of total employment in Bangor. Between 2000 - 2010 total employment in Bangor increased at a faster rate than the retail Promis average and growth and total employment to 2016 was also significantly above average.

Significant sectors in the local employment market include Universities and Colleges, Hospitals, Call Centres and Telemarketing and Retail and Tourism

In 2017, the local authority reported that tourism had its most successful year ever with expenditure in the local economy reaching over £1bn, and over 7m people visiting the County of Gwynedd, an increase of 3.2% on the previous year. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

RETAILING IN BANGOR

Bangor lies 2nd in the hierarchy of North Wales retail centres, ranking only behind Wrexham.

In town retail provision „„ The retail floor space in Bangor is estimated „„ On a site located on the edge of the at 0.52m sq ft and focused on the prime City Centre, Asda have a 45,000 sq ft pedestrianised thoroughfare of High Street supermarket on Farrar Road, which has and Garth Road. The managed floor space car park provision for approximately 300 comprises the subject property (The Menai spaces. Centre), being the dominant retail destination „„ Towards the railway station, Lidl occupy a in the City Centre and the secondary Deiniol 14,000 sq ft supermarket with an associated Shopping Centre, providing approximately 73 space surface car park. 50,000 sq ft of accommodation situated on the opposite side of Garth Road. Out of town provision „„ The older Deiniol Shopping Centre comprises a covered walkway, accommodating 26 „„ The out of town retail provision within smaller retail units with a value retail offer Bangor is estimated at approximately anchored by an Iceland Frozen Food store. 400,000 sq ft and is made up principally The scheme has an entrance off the High of two retail warehouse parks along Street and a 2 level basement car park of Caernarfon Road, as well as a Tesco Extra approximately 120 spaces. food store, together with additional units occupied by Home Bargains, B&Q, Halfords „„ Further along the High Street, moving away and Dunelm. from prime pitch, there is additional national multiple representation, including New Look „„ Both the St David’s Retail Park and Bangor and WH Smith. Retail Park are located approximately 2 miles from the City Centre upon Caernarfon Road, the former occupying approximately Food store provision 70,000 sq ft of open A1 non-food „„ Convenience food representation is relatively accommodation and let to Matalan, DW low in the City Centre, comprising an 18,500 Sports and PC World. sq ft Marks & Spencer store at the foot of „„ The Bangor Retail Park also benefitting from Garth Road adjacent to the subject property open A1 non-food planning consent, is let to multi-storey car park, which attracts Next, Argos, Sports Direct and The Range. significant footfall past the Garth Road frontage as far the Iceland frozen food store at the rear of the Deiniol Shopping Centre. „„ An Aldi supermarket of approximately 12,700 sq ft is located a short distance beyond Marks & Spencer on Garth Road, benefitting from an associated surface car park of approximately 74 spaces. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

DESTINATION

1h 13mins (60 miles) CHESTER SITUATION 1h 32mins (70 miles) LIVERPOOL The Menai Centre 1h 52mins (96 miles) MANCHESTER The Menai Centre is situated on the northern side of the High 2h 45mins (153 miles) BIRMINGHAM NEW STREET Street, at it’s junction with Garth Road, the main focal point of the City Centre and the prime retail pitch. The Centre’s 4h 55 mins (274 miles) LONDON retail front also runs along the High Street and turns into 60mins CHESTER Garth Road, linking into Cathedral Walk, which in turn links into the associated multi-storey car park. 2h LIVERPOOL BANGOR STATION 2h 22mins MANCHESTER Bangor Bus Station is located opposite the property, where 3mins bus ride away regular bus links are provided to local towns and villages, 2h 53mins BIRMINGHAM NEW STREET generating footfall for the subject units along Garth Road leading onto the High Street. 3h 15mins LONDON

D A See below Birds Eye drone footage of the Menai Centre. O Car S R T R E Park Y D G D E Y L Bangor D L F E F O Conway Bay O O T RD C University N E D M&S E R D CA W T A E P E S O R LL H R G ST G S G D Y RT A T I EA B E G R R H T YH I LB LE E S OL A O T ET T H C H N 5 Y U A R O D M I D O R A A O D THE F D N F R PLAY VIDEO E T L MENAI M A

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SITE PLAN

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Second Floor THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

THE BANGOR UNIVERSITY MENAI CENTRE

H IG H S T MENAI CENTRE R EE CAR PARK T Aldi

M&S AD RO RTH GA DEINIOL SHOPPING CENTRE BRITISH TELECOM

BANGOR UNIVERSITY THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

DESCRIPTION

The property provides highly prominent, modern retail block, totalling approximately 139,218 sq ft (12,933.67 sq m) and offering clear, open plan, fully flexible retail space in the heart of Bangor City Centre. The majority of the Menai Centre was developed in 2008.

„„ The accommodation comprises 22 standard retail units and 1 large store over 3 levels, with the benefit of an associated multi-storey car park at the rear (Dean Street Car Park), providing 417 vehicle spaces. The loading facilities are provided by the rear yard area, accessed from the roundabout junction of Deiniol Road and Garth Road.

„„ At High Street level (piazza level), The Menai Centre provides an attractive piazza area with 4 smaller retail units let to Caffè Nero, Regis, 3UK and The Body Shop.

„„ The main entrance for Debenhams department store is also provided at the piazza level, through an imposing, double height and fully glazed entrance of approximately 45 ft (13.7 m) frontage.

„„ There are two other prime retail units fronting the High Street, let to H&M and JD Sports, which is separated from the piazza by 273-279 High Street, which are not included within the ownership.

„„ Due to level changes, units 4-17 are positioned below Debenhams, fronting Garth Road and Cathedral Walk, the latter being directly opposite the Marks & Spencer store.

„„ Units 4, 5, 6 and 7 are let to Select, BHF, Shop Menai, Superdrug and River Island respectively.

„„ Burger King, Poundland, [my] Dentist and Yugen Coffee occupy units 11, 12, 13, 14 & 16.

„„ The remaining units along Garth Road are vacant, also with good tenant interest.

„„ At first floor level, additional storage and office space is provided for Debenhams (LSU1) and the currently vacant LSU2. Proposals to access LSU2 via an escalator and a lift have been provided for in the construction of the asset. There is demand from both gym and leisure occupiers for this accommodation. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

DEAN STREET (MENAI) CAR PARK

The property also includes the 4 level 417 space multi- storey car park of concrete and steel construction, located immediately to the north of the Centre.

Vehicular access is from the north via Dean Street with pedestrians then exiting south, directly towards the Menai Centre via Cathedral Walk. The car park is held long leasehold from Bangor City Council by way of a 150 year term, with effect from 29th January 2007, at a headrent of £82,500 per annum, reviewed five yearly upward only based upon greater of annual indexation of 2.5% per annum and RPI increase. The 2017 review remains outstanding.

Following professional advice the vendor installed six new parking machines and commenced charging which began May 2017. The target income of £140,000 per annum was based upon achieving variable tariff rates set out below assuming the use of 225 of the 417 spaces.

Monday - Sunday £0.5 / 0-1 hours £1 / 1-2 hours £2 / 2-4 hours £3 / up to 12 hours

At this point, the revenue generated from the new TENURE regime is on track to achieve the targeted income of £140,000 per annum. Whilst the car park still produces a landlord shortfall (based upon annual costs of The Menai Centre Freehold (edged red) £188,777 per annum) it is the view of the vendors car park specialists that over time the shortfall will continue The Menai Centre to be eroded and the car park will become a positive Leasehold (edged blue) Car Park income generator. Further information in respect of the breakdown of these figures is available upon request. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

TENANCIES & INCOME Lease Contracted Income Scenario ,, (excluding car park) ANALYSIS ,, ,2,

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The Menai Centre currently produces a total gross rental , income of £1.53m per annum (net operating income of 1.30m per annum) from a strong representation of national retailers , with 42.6% derived from Debenhams department store by , gross income (50.1% by net income), who anchor the asset. 2,

The subject anchor store is let to Debenhams Properties Limited 2 5 7 2 5 7 2 2 on a lease with effect from 7th April 2008 at a current rent of ear £652,838 per annum (effective as at 7th April 2018) and expiring on 6th April 2038 (20 years unexpired). Debenhams have been in occupation and paying rent since 2008.

PERCENTAGE OF The rent is subject to 5 yearly fixed increases, which equate to UNIT TENANT D&B RATING RISK RATING/COMMENTS approximately 2.5% per annum compound throughout the term. INCOME

Department Debenhams Properties Ltd 42.63% 5A1 Minimum Risk 07/04/2018 - £652,838 store 07/04/2023 - £738,626 13 Poundland Ltd 9.14% 4A1 Minimum Risk 07/04/2028 - £835,688 07/04/2033 - £945,504 6 Superdrug Stores Plc 5.22% 5A1 Minimum Risk

JD Sports Ltd 281 High Street 4.57% 5A1 Minimum Risk The remaining premises are multi-let to national retailers of (JD Sports Fashion PLC) significant covenant strength as set out below. The property has an average weighted unexpired lease term of 11.69 years 3 The Body Shop International PLC 3.92% 5A1 Minimum Risk to expiry and 11.04 years to break. 7 River Island Clothing Co. Ltd 3.26% 5A1 Minimum Risk The top 5 tenants by gross income represent 65.5%. 80% of the total gross income is secured against tenants with a minimum 1 Nero Holdings Ltd 3.26% 5A1 Minimum Risk risk of business failure. 20/21 H & M Hennes & Mauritz UK Ltd 2.30% 5A1 Minimum Risk

5 British Heart Foundation 1.96% 5A1 Minimum Risk

3 UK Retail Limited (3UK) Lower than avergae risk 2 1.96% (3UK) H2 (Hutchison) 5A1 (Hutchison 3G UK Ltd) (Hutchison) Minimum Risk

1A Regis UK Limited 1.76% 4A1 Minimum Risk THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

OCCUPATIONAL GUARANTEES

The vendor is proposing to provide a 12 month insurance and service charge only guarantee against vacant units 8& 9 Garth Road. The units have not been assessed for rates and do not carry a rates liability. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

ANC = ANCILLARY BSMT = BASEMENT GRND = GROUND TENANCY SCHEDULE

ADDRESS & OCCUPIER AREAS (SQ FT) LEASE DETAILS INCOME

UNIT TENANT TRADING GRND ITZA GRND FIRST FIRST BSMT TOTAL LEASE EXPIRY NEXT BREAKS CURRENT ZONE RENTAL RENTAL LANDLORD COMMENTS AS FLOOR FLOOR FLOOR FLOOR ANC AREA START DATE REVIEW RENT £ PA A/ PSF VALUE VALUE SHORTFALL SALES ANC SALES ANC RATE £ PA £ PA

1 Nero Caffe Nero 1,276 940 - - 300 - 1,576 16/08/12 15/08/22 £50,000 £53 £47,500 £50 Holdings Ltd

1A Regis Uk Regis Uk 663 595 - - - - 663 19/09/14 18/09/24 19/09/2019 19/09/20 £27,000 £45 £27,000 £45 Limiited Limiited

2 3 UK Retail 3 Store 649 545 198 - - - 847 03/03/18 02/03/23 £30,000 £55 £28,250 £50 Lease renewal in lawyers hands. Ltd

3 The Body The Body 777 674 - - 792 - 1,569 03/03/08 02/03/18 £60,000 £86.60 £35,300 £50 Lease renewal negotiation on going. Shop Shop International Plc

4 Genus Uk Select 4,009 1,759 1,708 - - - 5,717 23/04/15 22/04/25 22/04/20 22/04/20 £75,000 £40 £75,000 £40 Select have recently entered a CVA. Limited This store is a category 4 store and 75% rent reduction is sought. There is strong interest from loungers.

5 British Heart British 1,379 804 214 - - - 1,593 06/01/17 06/01/27 27/12/2021 £30,000 £36.60 £32,700 £40 Foundation Heart Foundation

5A D Chubb Shop Menai 494 387 - - - - 494 01/06/16 31/05/26 05/07/21 01/06/21 £18,500 £47.80 £15,480 £40

6 Superdrug Superdrug 4,254 1,403 1,606 - - - 5,860 12/05/18 11/05/23 £80,000 £54 £60,135 £40 Stores Plc

7 River Island River Island 5,798 1,726 - - 1,515 - 7,313 25/05/16 24/05/21 £50,000 £27.20 £72,070 £40 £15,719.49 Rental based upon 7% of gross turn Clothing Co. Clothing Co. over inclusive. Audited turnover Ltd Ltd certificate awaited.

8 Vacant 2,988 1,200 - - - - 2,988 £48,000 £40 Vendor occupational cost guarantee.

9 Vacant 1,915 863 - - - - 1,915 £34,500 £40 Vendor occupational cost guarantee.

10 Under offer to Regatta 2,174 1,001 - - - - 2,174 £40,000 £40 Unit currently under offer on Regatta the basis of 2 year lease with occupational costs only.

11 U/O Burger King 2,232 1,284 - 2,232 11/01/15 10/01/35 11/01/30 £35,000 £27.25 £45,000 £35 T/O top up 7% gross sales over Powerbanks 500k. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

ADDRESS & OCCUPIER AREAS (SQ FT) LEASE DETAILS INCOME

UNIT TENANT TRADING GRND ITZA GRND FIRST FIRST BSMT TOTAL LEASE EXPIRY NEXT BREAKS CURRENT ZONE RENTAL RENTAL LANDLORD COMMENTS AS FLOOR FLOOR FLOOR FLOOR ANC AREA START DATE REVIEW RENT £ PA A/ PSF VALUE VALUE SHORTFALL SALES ANC SALES ANC RATE £ PA £ PA

12 U/O Burger King 1,421 1,066 185 - - - 1,606 Powerbanks

13 Poundland Poundland 3,467 1,735 1,793 - 5,260 16/06/08 15/06/18 £140,000 £78 £65,200 £35 Renewal discussions ongoing. Ltd

14 Whitecross [my] Dentist 2,722 1,147 840 - - - 3,562 22/04/13 21/04/23 22/04/18 £30,000 £26 £30,000 £26 £3,373 £3,500 + RPI service charge cap. Dental Care Ltd.

15 Vacant Vacant 1,457 737 - 1,139 - - 2,596 £0 £12,500 £5,274

16 Mr G Linn Yugen 442 442 - - - - 442 20/10/17 19/10/22 £8,000 £11 £8,000 Coffee / Deli Operator Coffee

17 Vacant Vacant 304 304 - - - - 304 £0 £16 £6,000 £20 £946

20 & H & M H & M 4,523 1,840 - 2,861 1,444 - 8,828 02/12/10 01/12/20 02/12/15 £35,230 £76,500 £40 £18,476 £4,582.23 service 21 Hennes & Hennes charge cap. Rent calculated on 5% Mauritz UK of gross turn over £704,604.88 for Ltd FYE 2017.

LSU 1, Debenhams Debenhams 46,564 - - - 10,628 - 57,192 07/04/08 06/04/38 07/04/18 £652,838 £11.40 £458,000 £8 Fixed uplifts Menai Properties Ltd 07/04/2018: £652,838 Centre 07/04/2023: £738,626 07/04/2028: £835,688 07/04/2033: £945,504

LSU 2, Vacant Vacant 232 - - 21,024 - - 21,256 17/05/22 16/05/27 £0 £0 £0 £48,806 Interest from Menai Anytime Fitness Centre

281 JD Sports Ltd JD Sports 2,013 962 448 - - 770 3,231 10/03/12 09/03/22 £70,000 £71 £40,000 £40 High Street

Car Car £140,000 £140,000 £47,482 Held leasehold at a head rent Park Park of £82,500 for 150 years from 29/01/2007. Current annual running costs of the car park of 187,482, generating a 47,482 landlord shortfall based upon income of 140,000 and assuming the 2017 head rent review settles at 92,045.74 pa. Further information available upon request.

Total 91,753 139,218 £1,531,568 £1,397,842 £141,076

Landlord Shortfall £141,076 Net Operating Income £1,390,492 THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

RENTAL TONE

The property has been substantially rebased to a defensive rental tone in the order of £40 ZA on the Garth Road frontage. In addition to a low service charge, we consider the rents to be highly affordable and capable of medium term improvement.

SERVICE CHARGE & SHORTFALLS

The estimated total service charge budget for 2018/2019 is £287,736, representing an overall rate per sq ft of £2.07.

There are presently a small number of landlord’s service charge shortfalls which are highlighted in the tenancy schedule.

CAPITAL ALLOWANCES

Any unclaimed capital allowances will be passed on to the purchaser, subject to further verification. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

ASSET MANAGEMENT INITIATIVES

The asset presents an excellent opportunity to acquire a significant, modern, prime retail holding in the heart of the City of Bangor with excellent underlying income secured against national retailers, with the anchor store benefitting from fixed rental uplifts and an unexpired lease of 20 years, providing 50.1% of the current total net operating income. Additionally, the asset provides the opportunity to:-

„„ Let the remaining vacant accommodation along Garth Road, ideally to further A3 occupiers, to compliment the success of Burger King and benefit from the strong student and tourism footfall. „„ Conclude a letting upon LSU2, which will further enhance the occupational mix from the subject property and assist the A1 and A3 retailers alike. „„ Improve the operational efficiency of the subject property multi-storey car park (the prime car park within the City Centre) and reduce the landlord’s irrecoverability in this respect, thus improving the NOI position (further information in relation to the car park available upon request). EPC

Energy Performance Certificates (EPC) are available upon request. THE MENAI CENTRE | BANGOR | NORTH WALES | LL57 1DX

VAT

It is proposed the sale will be treated as a Transfer of a Going Concern (TOGC).

MARKETING LINK

See below Birds Eye drone footage of the Menai Centre.

https://www.birdseyeviewpro.co.uk/our-work/ menai-centre-bangor/ CONTACT

For further information please contact

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 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. 100399. Designed by TCC. 03/18.