Prime Retail Investment Let to Molton Brown Ltd

Home , Davygate, Parliament Street (York), Petergate, Stonegate (York)

York YO1 8QT

PRIME RETAIL INVESTMENT LET TO MOLTON BROWN LTD

• York is an internationally renowned tourist destination and historic cathedral city attracting 6.9million visitors per annum;

• Situated on pedestrianised Davygate in a 100% prime position;

• Davygate and Stonegate are established as York’s prime retail core;

• Good sized unit totalling 1,103 sq ft (102.5 sq m);

• Long leasehold for 999 years from March 1985 at a peppercorn;

• Let to the strong covenant of Molton Brown for a further 5.75 years;

• Valuable rent review in August 2019;

We are instructed to seek offers in excess of £1.75m subject to contract and exclusive of VAT. An offer at this level reflects a net initial yield of 4.8% after deduction of standard purchasers costs at 6.2%;

York is located approximately 25 miles north east of Leeds, 21 miles east of Harrogate and 210 miles north of London. The city is a leading commercial SCOTLAND and administrative centre in North Yorkshire and is home to York Minister and The University of York. The University is part of the prestigious Russell Group of universities with over 16,000 students. Glasgow York benefits from excellent road, rail and air communications. York is located on the East Coast Mainline, providing direct services to London Kings Cross (1 Edinburgh hour 50 minutes) Manchester, Leeds and Edinburgh. The city’s A64 ring road connects to the A1(M) providing access to the national motorway network. Air Newcastle transport is provided by Leeds Bradford International Airport, located approximately 24 miles south west of the city, offering direct flights to Sunderland national, European and international destinations. Carlisle York has an estimated 2017 population of approximately 207,094 (Census 2011) and a primary catchment of 488,000. It is a dominant centre for its York immediate catchment area and also draws significant spend from well beyond its primary catchment. The city is considered to have an affluent demographic Leeds profile. York welcomes 7million visitors per annum who spend approximately Manchester £608million each year in the city. Footfall has increased by 5% year-on-year Liverpool from August 2017.* Nottingham *VisitYork.org Birmingham

ENGLAND WALES Cardiff Bristol London

York city centre has an approximate retail floor space of 1.5m sq ft (139,350 sq m). The prime retail core is established along Davygate and Stonegate, connected by St Helens Square and dominated by York’s finest fashion retailers and restaurants.

The subject property is located in the centre of pedestrianised Davygate in a 100% prime pitch between Parliament Street and Stonegate. Occupiers in the immediate vicinity include Pandora, Superdry, Hobbs, Seasalt, Space NK, Schuh, Caffé Nero along with restaurants Bettys, Carluccio’s and The Ivy.

DESCRIPTION

The property comprises an attractive ground floor retail unit with basement staff and store rooms. The upper floors are in separate ownership and are occupied as part of Browns department store.

Description Sq ft Sq m

Net Frontage 18 ft 3 in 5.6 m

Internal Width 18 ft 3 in 5.6 m

Shop Depth 43 ft 7 in 13.3 m

Ground Floor sales area 724 sq ft 67.3 sq m

ITZA 532 sq ft 49.4 sq m

Basement staff/stores 379 sq ft 35.2 sq m

Total Floor Area 1,103 sq ft 102.5 sq m

TENURE

The property is held on a long leasehold for a term of 999 years from 18th March 1985 at a peppercorn rent without review. The landlord is W H Browns Ltd of Browns of York.

TENANCY

The property is let to Molton Brown Limited on a FRI lease for a term of 10 years from 1st August 2014 at a passing rent of £89,350 per annum, subject to an upwards only market rent review on 1st August 2019.

We have analysed the passing rent to reflect a Zone A rent of £166.50 per sq ft, applying £7.00 per sq ft to the main basement area and £3.50 per sq ft to a raised plinth section used for storage only.

INVESTMENT SALES EVIDENCE

Address Tenant Lease Price/Date Yield

19 years unexpired 47 Low Fiveguys (14 years to break). Asking £2.8m 4.19% Petergate RPI rent reviews

18-20 Jack Wills 8 years unexpired. £2.425m / July 2018 4.46% Stonegate

32 & 34 Cath Kidston WAULT of 3.8 years. £6m / January 2018 3.91% Stonegate & White Stuff

26-30 The White 7 years unexpired £4.269m / December 2017 3.85% Stonegate Company

3-5 St Helen’s Carluccio’s 25 years unexpired £7.2m / January 2017 4.2% MARKET COMMENTARY Square

A good level of demand for well-located and sized units in York is evidenced by recent COVENANT transactions and near full occupation of Davygate and adjoining streets. Recent new occupiers to the street include Carluccio’s, Marchbrae De Montford, The Art (t/a Molton Brown was established in 1973 and has since become a leading retailer in bath, Whitewall Gallery) and Seasalt. body and beauty products. The company is also the brand of choice for many five-star hotels. In 2013, Molton Brown was granted a Royal Warrant in recognition of their status Recent rental transactions are summarised below:- as ‘Supplier of Toiletries’ to HM The Queen. Zone A rent Property Status Date A summary of financial information obtained from Creditsafe is set out below:- per sq ft Pre Tax Shareholder’s Creditsafe Whitewall Gallery, 9 Davygate LR August 2018 £185 Year Turnover Profit Funds Rating Marchbrae De Montford, 5 St Helens Square OML January 2018 £190 74 (A) – Very 31/12/2017 £86.838m £917,000 £33.251m Seasalt, 20 Davygate OML September 2016 £187 Low Risk

Caffé Nero, 16 Davygate LR February 2016 £170 31/12/2016 £79.719m £2.69m £35.158m

Space NK, 13 Davygate OML December 2015 £182 31/12/2015 £70.618m £3.837m £33.946m

The property has an EPC rating of D – 85

VAT

We understand the property is not elected for VAT.

PROPOSAL

We have been instructed to seek offers in excess of £1,750,000 (One Million Seven Hundred and Fifty Thousand pounds) subject to contract and exclusive of VAT. An offer at this level reflects a net initial yield of 4.8% after deduction of standard purchasers’ costs at 6.2%

GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission 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 or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. November 2018.