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Royal Leamington 19-29 Parade | 69-71 Street | 22 Guy Street

PRIME RETAIL INVESTMENT OPPORTUNITY WITH SIGNIFICANT DEVELOPMENT POTENTIAL INVESTMENT SUMMARY

• Royal is one of ’s finest Regency towns located in the heart of in the West region. • The subject property forms a dominant town centre High Street parade of nine retail units with an element of residential & office accommodation above. • Income secured against a variety of national multiple tenants including TSB, Greggs, Argos, Robert Dyas and Millets. • AWULT of 6.65 years • Comprising a significant 0.93 acre site with primary frontage onto Parade – Leamington Spa’s prime retail thoroughfare. • Significant redevelopment opportunity for alternative uses including a potential 68 apartment residential scheme (STTP). • 63,200 sq ft of accommodation. • Freehold • We are instructed by our client to seek offers in of £10,400,000 (Ten Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client’s freehold interest in the property.

A purchase at this level would reflect an attractive net initial yield of 7.02%, and a low capital rate of £165psf, assuming purchaser’s costs of 6.70%.

Town centre retail parade totalling almost an acre in size, strategically located at the busy junction of Parade and Warwick Street at the heart of Leamington’s bustling retail pitch

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY LOCATION

Royal Leamington Spa is an attractive and affluent town located in M6 M42 the county of Warwickshire approximately 2 miles east of Warwick, Corby 8 miles south of and 18 miles south east of . Birmingham A5 M1 A43 Due to its strategic location, The town is also well connected by A45 M6 Royal Leamington Spa benefits rail with a regular, direct service Coventry A14 Kidderminster Kettering from excellent transport links to Marylebone in 1 hour Rugby M42 with direct access to Junction 13 15 minutes. There is also a direct A46 M45 A508 (5 miles/11 minutes) of the M40 train service to Birmingham giving access to the south, and Moor Street and New Street in Royal M5 Leamington Spa Junction 14 (4 miles/10 minutes), 30 minutes as well as a direct giving access to the M42 and the train service to Birmingham north. International, giving access to the Worcester A422 Stratford-upon-avon A43 airport, in 23 minutes. M40 A423

A46 M1

A508 Evesham A429 Milton Keynes A46 A424 Buckingham M40 A421

M5 A5

A44 Cheltenham A41 A4187 A429

A40 Aylesbury

SITUATION

The subject occupies a strong retailing position, just to the north of the prime pitch at the junction of Parade and Warwick Street. The Warwick Street properties are located opposite the entrance to Royal Priors.

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY CATCHMENT & DEMOGRAPHICS Leamington Spa is currently ranked as Royal Leamington Spa’s primary catchment is estimated at 166,000 (Proms) extending to the edge of Coventry the happiest place to to the north and Stratford upon Avon to the south. This catchment is particularly affluent with the centre Retail expenditure within the town is also boosted by live in the UK being within the top 10% of the UK (19th out of 200 and by students - in 2016, more than 5,200 (According to Rightmove) Promis Centres) whilst the AB Social Group has a near Warwick University students lived in Leamington Spa. 60% over-representation. Per Capita retail expenditure Leamington Spa is currently ranked as the happiest is above UK average. This spend is forecast to grow at place to live in the UK with community spirit, feeling 2.9% pa in real terms between 2017 and 2022, above safe, the friendliness of locals, the amenities and the UK average. local services available and earning enough to live Unemployment at 0.5% is under half the UK average of comfortably all factors that were given. (Rightmove) 1.1% (as at December 2017).

Catchment Areas Drive Times to Town Centre

Drive Time Population Households Solihull M6 Coventry

10 minutes 53,072 22,982 Rugby 20 minutes 172,659 73,988 M40 30 minutes 482,471 202,704

Royal Source: Retail Consultants Leamington Spa

Whitnash

M40 Stratford- upon-Avon

M40

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY RETAILING IN ROYAL LEAMINGTON SPA

Royal Leamington Spa has approximately 1.16m sq ft of retail accommodation which is primarily focussed on Parade which provides an attractive boulevard CHANDOS STREET of regency style buildings. The town is ranked 43rd based on its Retail Score CAR PARK and 41st on the PMA Fashion Score. Vacancy at 7.6% is significantly below the UK average of 12.2% with little availability in Prime. Prime pitch is relatively tight being covered shopping centre. between Warwick Street and Regent We consider the rental value of the Street and therefore comprises just units fronting the Parade to be in 31 retail units including H&M, M&S, the order of £75 psf ITZA whilst the Superdrug, Joules and Costa Coffee. Warwick Street units have a rental This pitch is complemented by the value in the order of £60psf ITZA. Royal Priors which is accessed from Parade and Warwick Street, providing Evidence can be summarised below: Royal Leamington Spa’s major

Date Address Tenant Trans Rent ZA

Jul-18 30 Parade Savers Re-Gear £75.60

Mar-18 23-25 Parade* Robert Dyas L-Renewal £74.15

Jan-18 74 Parade Pavers OML £132.50

May-18 84 Warwick St Marie Curie OML £62

Oct-17 44-46 Parade Oliver Bonas OML £100.75

Jun-17 78 Warwick St Second Cup OML £83.55 (£69.62 Net)

*Subject property

TENURE

The property is held Freehold.

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY DESCRIPTION The property comprise 0.93 acres in the heart of Royal Leamington Spa town centre providing: • Six well configured retail units fronting Parade, two retail units on Warwick Street and a large format store on Guy Street. Parade • The Parade units provide ground floor sales accommodation and four further storeys above, all behind a classic Regency façade. • Units 19-21 provide retail over ground and 1st floors, with significant underutilised/void upper parts above. • Units 23-29 provide retail over ground, 1st & 2nd floors with four maisonette apartments on the 3rd & 4th floors (accessed via Guy Street). Warwick Street • Two retail units fronting Warwick Street directly opposite the entrance to Royal Priors Shopping Centre. • 69 Warwick Street arranged over ground, 1st & 2nd floors together with a self-contained 2nd floor office (currently used as an escape route) • 71 Warwick Street arranged over ground and 1st floors. Parade Guy Street • The Argos unit fronting Guy Street adjacent to Chandos Street car park, forms a large MSU over ground and 1st floors, totalling 11,454 sq ft. The properties benefit from a service yard accessed from Guy Street which is also owned freehold.

Guy St Warwick St

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY TENANCY AND ACCOMMODATION SCHEDULE

Building / Unit Tenant Floor Sq Ft Lease Start Date Next review Lease Expiry Date Passing Rent ERV Comments Ground 3,036 Ground ITZA 1,059 First Ancillary 2,631 11/5/26 £72,500 £90,000 19 Parade TSB Bank Plc Second 268 12/5/16 12/5/21 (TBO: 11/5/21) (£60.56 ZA) (£75.60 ZA) Third Void Fourth Void Total 5,935 Ground 4,736 Ground ITZA 1,839 First Ancillary 4,853 £190,000 £156,000 21 Parade Poundland Ltd Second 936 5/6/13 5/6/18 4/6/23 (£90.26 ZA) (£74.94 ZA) Third Void Fourth Void Total 10,525 Ground 1,901 Ground ITZA 692 First Sales 1,220 First Ancillary 630 21 Parade Greggs Plc 25/12/04 25/12/19 24/12/29 £65,000 £63,500 Second 368 (TBO: 24/12/24) (£76.05 ZA) (£75.10 ZA) Third Void Fourth Void Total 4,119 Ground 2,528 Ground ITZA 1,256 First Sales 1,691 23-25 Parade Robert Dyas Holdings Ltd 25/3/18 24/3/23 £111,000 £112,500 First Ancillary 913 (TBO: 25/3/21) (£74.15 ZA) (£75.16 ZA) Second 1,046 Total 6,178 Ground 1,088 Ground ITZA 562 £44,000 £47,500 Blacks Outdoor currently on a Tenancy at Will. 27 The Parade Blacks Outdoor Retail Ltd First Ancillary 1,032 Tenancy at Will. (£69.38 ZA) (£74.90 ZA) Unit available to let at £55,000 Second 822 Total 2,942 Ground 1,511 Ground ITZA 713 29 The Parade Sportswift Ltd t/a Card Factory 10/10/22 £70,000 £59,000 First Ancillary 1,045 11/1/12 11/10/17 (TBO: 11/10/17) (£89.01 ZA) (£75.02 ZA) Second 848 Total 3,404 Ground 2,074 Ground ITZA 875 £70,000 £60,000 69 Warwick Street Shoe Zone Ltd First Ancillary 1,711 6/11/09 5/11/19 (£70.23 ZA) (£60.20 ZA) Second 1,446 Total 5,231 Ground 3,014 Ground ITZA 1,144 71 Warwick Street Coffee #1 Ltd 4/5/17 4/5/22 3/5/37 £70,000 £78,000 Schedule of Condition. First Ancillary 3,069 (TBO: 3/5/27) (£53.95 ZA) (£60.12 ZA) Further break in 2033. Total 6,083 Rent deposit of £1,200 held. Fixed uplift in Sep 7/9/26 £10,000 £23,250 2020 to £17,436pa, further review in 2023 to Offices, 69 Warwick St Experimental Escape Ltd Second 2,096 8/9/17 (TBO: 7/3/19) (£3.44psf) (£8.00psf) CPI. Further breaks in 2021 and 2024. Outside Act. Ground 4,911 £75,000 £92,000 22 Guy Street Argos Ltd First 6,543 10/3/16 9/3/21 (£6.55psf) (£8.03psf) Total 11,454 Flat 1, 24 Guy Street Kiran Shah & Taroon Shah Third/Fourth 1,143 1/12/13 1/12/2038 30/11/2138 £250 £250 Ground Rent doubles every 25 years. Flat 2, 26 Guy Street Matthew Geddes Third/Fourth 1,095 1/12/13 1/12/2038 30/11/2138 £250 £250 Ground Rent doubles every 25 years. Flat 3, 28 Guy Street Kiran Shah & Taroon Shah Third/Fourth 1,095 1/12/13 1/12/2038 30/11/2138 £250 £250 Ground Rent doubles every 25 years. Flat 4, 30 Guy Street AR Property Ltd Third/Fourth 1,090 1/12/13 1/12/2038 30/11/2138 £250 £250 Ground Rent doubles every 25 years. TOTAL 63,200 £778,500 £781,750

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY REGENT COURT ASSET MANAGEMENT SHOPPING CENTRE & DEVELOPMENT OPPORTUNITIES

The asset, comprising of 0.93 acres, provides a rare core town centre land holding and consequently offers significant redevelopment potential to alternative uses, subject to necessary planning consents. THE ROYAL PRIORS The Parade frontage consists of a five storey building. SHOPPING CENTRE The top two floors comprise of a false façade and SUBJECT the property falls away quickly to the rear to the PROPERTY Argos below, which forms a ground and 1st floor only retail unit of 11,454 sq ft. We believe this “void” space behind the façade of the building provides a significant opportunity to infill and add additional floor space. The site sits adjacent to the council owned 150 space Chandos Street surface car park, which has been highlighted in the Local Plan as an “area for the development of a major addition to the town centre’s retail offer. This may include leisure uses, offices and residential use.” The Local Plan also states that “It is recognised that to deliver a successful development, further land will be required beyond the CHANDOS STREET 150 SPACE confines of the allocated Chandos Street car park area.” SURFACED CAR PARK We have had indicative residential plans drawn up by AHR Architects, as seen on the following page. Further information can be provided on request. Additionally, whilst fully let, the property offers strong asset management opportunities through active occupational lease re-gears and renewals to further enhance the AWULT of the asset, which currently stands at 6.65 years to expiry.

19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA PRIME RETAIL INVESTMENT OPPORTUNITY INDICATIVE RESIDENTIAL SCHEME DRAWN UP BY AHR ARCHITECTS

Level 2 Room Schedule apartment Apartment 2.15 Level Number Department Name Area T REE 2.07 73.75 m² S Apartment 40.82 m² 2.01 LEVEL 2 2.01 2 bed Apartment 69.74 m² 69.74 m²

G UY LEVEL 2 2.02 1 bed Apartment 46.72 m²

Apartment LEVEL 2 2.03 2 bed Apartment 69.33 m² Apartment 2.14 LEVEL 2 2.04 1 bed apartment 41.41 m² 2.06 50.87 m² 47 m² apartment LEVEL 2 2.05 1 bed Apartment 46.28 m² apartment apartment apartment 2.16 Parade 2.08 2.09 2.10 66.6 m² LEVEL 2 2.06 1 bed Apartment 47 m² 53.9 m² 53.9 m² 53.9 m² LEVEL 2 2.07 1 bed Apartment 40.82 m²

Apartment LEVEL 2 2.08 1 bed apartment 53.9 m² NOTE: Survey 2.02 LEVEL 2 2.09 1 bed apartment 53.9 m² Service yard access 46.72 m² 1415 0 required of site to Retail 1 726 1 25 deliveries to for retail LEVEL 2 2.10 1 bed apartment 53.9 m² understand retail 245.64 m² retail? Level Number Department Name Area LEVEL 2 2.11 1 bed apartment 53.9 m² configuration and apartment apartment apartment LEVEL 2 2.12 1 bed apartment 53.9 m² rear access / 2.11 2.12 LEVEL 0 25 Retail Retail 1 245.64 m² 53.9 m² 53.9 m² 2.13 apartment LEVEL 2 2.13 1 bed apartment 53.9 m² plant Apartment 53.9 m² Apartment 2.18 ownership / 33 LEVEL 0 26 Retail Retail 2 200.85 m² 66.65 m² 21.55 m² 2.05 2.17 LEVEL 2 2.14 1 bed Apartment 50.87 m² structure / levels / 46.28 m² 50.47 m² LEVEL 0 27 Retail Retail 3 173.04 m² LEVEL 2 2.15 2 bed apartment 73.75 m² heights existing retail extension at GF in foyer LEVEL 0 28 Retail Retail 4 173.27 m² LEVEL 2 2.16 2 bed apartment 66.6 m² Retail 2 lieu of first and 38 parking apartment entrance LEVEL 0 37 parking service Apartment 26 second floor 89.73 m² LEVEL 2 2.17 1 bed Apartment 50.47 m² 200.85 m² 31 2.03 accommodation? 367.42 m² 69.33 m² apartment LEVEL 2 2.18 2 bed apartment 66.65 m² Grand tota 2.04 765 8 apartment 41.41 m² Chandos Street2.19 LEVEL 2 2.19 2 bed apartment 74.75 m² E 74.75 m²

D Grand total: 19 1067.8 m² stair from A apartments above Car Park R

A existing retail P extension at GF in Retail 3 lieu of first and 27 173.04 m² second floor bikes accommodation? 32 31.98 m² Warwick Street LEVELS 2-4 Car access to

Retail 4 360 0 apartment parking 28 173.27 m² Level Number Department Name Area Guy Street

LEVEL 1 07 1 bed apartment 49.02 m² LEVEL 1 08 1 bed apartment 48.9 m² GROUND FLOOR LEVEL 1 10 1 bed apartment 49.02 m² LEVEL 1 11 1 bed apartment 48.9 m² LEVEL 1 12 2 bed apartment 85.2 m² LEVEL 1 13 2 bed apartment 66.6 m² LEVEL 1 14 2 bed apartment 66.65 m² Level 2 Room Schedule podium garden at level 1 LEVEL 1 15 2 bed apartmenapatrtm86.2ent m² apartment Apartment 2.15 Level Number Department Name Area 12 Grand tot 73.75 m² Level 4 Room schedule Retail 1 85.2 m² 2.07 ApartmenT REE t 40.82 m²

4.06 S penthouse 245.45 m² 2.01 LEVEL 2 2.01 2 bed Apartment 69.74 m² Level Number Department Name Area 69.74 m² 4.01 LEVEL 2 2.02 1 bed Apartment 46.72 m² 107.37 m²

G UY LEVEL 4 4.01 3 bed penthouse 107.37 m² Apartment LEVEL 2 2.03 2 bed Apartment 69.33 m² Apartment 2.14 LEVEL 2 2.04 1 bed apartment 41.41 m² LEVEL 4 4.02 3 bed penthouse 118.11 m² 2.06 50.87 m² 47 m² apartment LEVEL 2 2.05 1 bed Apartment 46.28 m² LEVEL 4 4.03 3 bed penthouse 107.99 m² apartment apartment apartment apartment apartment apartment 2.16 Retail 2 07 08 13 2.08 2.09 2.10 66.6 m² LEVEL 2 2.06 1 bed Apartment 47 m² Grand total: 3 333.47 m² 4.07 49.02 m² 48.9 m² 66.6 m² 53.9 m² 53.9 m² 53.9 m² 169.91 m² LEVEL 2 2.07 1 bed Apartment 40.82 m²

Apartment LEVEL 2 2.08 1 bed apartment 53.9 m² 2.02 LEVEL 2 2.09 1 bed apartment 53.9 m² penthouse

46.72 m² 1415 0 4.02 1415 0 118.11 m² E LEVEL 2 2.10 1 bed apartment 53.9 m² D

A LEVEL 2 2.11 1 bed apartment 53.9 m²

R apartment apartment apartment LEVEL 2 2.12 1 bed apartment 53.9 m² A apartment apartment 2.11 2.12 apartment P 10 11 53.9 m² 53.9 m² 2.13 apartment LEVEL 2 2.13 1 bed apartment 53.9 m² Retail 3 49.02 m² 48.9 m² Apartment 53.9 m² Apartment 2.18 14 66.65 m² 4.08 66.65 m² 2.05 2.17 LEVEL 2 2.14 1 bed Apartment 50.87 m² 196.76 m² 46.28 m² 50.47 m² LEVEL 2 2.15 2 bed apartment 73.75 m² LEVEL 2 2.16 2 bed apartment 66.6 m² Apartment LEVEL 2 2.17 1 bed Apartment 50.47 m² 2.03 69.33 m² apartment LEVEL 2 2.18 2 bed apartment 66.65 m² penthouse 765 8 Retail 4 765 8 apartment 2.04 apartment 4.03 41.41 m² LEVEL 2 2.19 2 bed apartment 74.75 m² 4.09 podium garden at level 1 15 2.19 107.99 m² 173.27 m² 86.2 m² 74.75 m² Grand total: 19 1067.8 m²

LEVEL 1 LEVELS 2-4 LEVEL 5 LEVEL 5 LEVELS 2-4

Level 4 Room schedule penthouse Level Number Department Name Area 4.01 107.37 m² LEVEL 4 4.01 3 bed penthouse 107.37 m² LEVEL 4 4.02 3 bed penthouse 118.11 m² LEVEL 4 4.03 3 bed penthouse 107.99 m² 19-29 PARADE | 69-71 WARWICK STREET | 22 GUY STREET ROYAL LEAMINGTON SPA Grand totPRIMEal: 3 RETAIL INVESTMENT333.47 m² OPPORTUNITY

penthouse 4.02 118.11 m²

penthouse 4.03 107.99 m²

LEVEL 5 VAT The property is elected for VAT and it is assumed that the transaction will take place by way of a TOGC.

EPC’s Copies of EPC’s available on request.

PROPOSAL We are instructed by our client to seek offers in of £10,400,000 (Ten Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client’s freehold interest in the property. A purchase at this level would reflect an attractive net initial yield of 7.02%, and a low capital rate of £165psf, assuming purchaser’s costs of 6.70%.

FURTHER INFORMATION For Further information please contact:

43-45 Portman Square 18 Savile Row London W1A 3BG London W1S 3PW Fraser Ramage Peter Pain 0207 152 5963 0207 465 5124 [email protected] [email protected] Chris Lewis Hassan Abdalla 0207 152 5991 020 7465 5122 [email protected] [email protected]

MISREPRESENTATION ACT: Cushman & Wakefield and AGL gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield and AGL as any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property. October 2018. Designed and Produced by Creativeworld Tel 01282 858200.