19-26 NORTH STREET, TAUNTON TA1 1LL

PRIME LONG INCOME INVESTMENT

19-26 NORTH STREET, TAUNTON 19-26 NORTH STREET, TAUNTON

INVESTMENT SUMMARY

Taunton is an attractive county town A of 86,911 sq ft Topped-up rent of £763,594 per annum The vendor is seeking offers in excess located 49 miles south west of (8,074.3 sq m) arranged over lower (£8.79 per sq ft). of £11,920,000 (Eleven Million, Nine and 36 miles north east of and ground, ground, first, second and Hundred and Twenty Thousand Pounds), Freehold. has a catchment population in excess of third floors. subject to contract and exclusive of VAT. 340,000 people. Significant asset management A purchase at this level will reflect a Net Let to Retail Plc, expiring opportunities on a break up including Initial Yield of 6.0%, after allowing for Situated in a prominent position on the 24th March 2034 providing an unexpired potential subdivision, reconfiguration usual purchasers costs at 6.8%. west side of North Street close to the term of circa 16.25 years. and residential/hotel accommodation, junction with The Bridge, and opposite St The property benefits from minimum subject to planning. James Street. rental increases, next due in March 2019. County Walk Shopping Centre

Orchard Fore Street Shopping Centre

P

P

North Street

The Museum of Somerset Somerset County Cricket Club P

Morrisons

19-26 NORTH STREET, TAUNTON Aberaeron Warwick Spa Llandrindod Wells Droitwich Spa Redditch Southam Tregaron Kington Leominster Worcester Synod Inn Builth Bromyard Stratford- Lampeter Wells Great Malvern upon-Avon Towcester Cardigan Pumsaint Llanwrtyd Pershore Silverstone Wells Hay- Banbury Goodwick Newcastle on-Wye Hereford Ledbury Emlyn Llandovery Moreton- Milton Fishguard Talgarth in-Marsh Keynes Crymych Brecon Buckingham Cynwyl Llangadog Tewkesbury Stow-on- Elfed Sennybridge Chipping St David’s Llandeilo the-Wold Norton Bicester Carmarthen Ross-on-Wye Haverfordwest St Clears Crickhowell Dunstable Narberth Brynamman Abergavenny Gloucester Northleach Kidlington Merthyr Ammanford Monmouth Hemel Tydfil Ebbw Burford Hempstead Vale Witney Thame Amersham LOCATION M48 M5 Newport Didcot M4 M49 Taunton is the County Town of Somerset and is located 49 miles south west M4 M32 Reading of Bristol, 36 miles north east of Exeter and 153 miles west of . Chippenham Barry Bristol The town benefits from excellent transport links and is located 4 miles Weston-super-Mare Bath Tadley Woking west of junction 25 of the M5 motorway and is connected via the A38 Basingstoke 22 Frome and A358. In addition the town is served by its own railway station, which Wells Andover Ilfracombe M3 23 Alton provides a regular service to London Paddington at a fastest journey time A39 Glastonbury 24 of approximately 1 hour 45 minutes. A396 A37 A358 Barnstaple M5 A372 Somerton 25 A378 Shaftesbury Southampton Bristol International Airport is located approximately 42 miles north of Taunton Romsey

27 Sherborne Taunton and Exeter International Airport is approximately 32 miles to the A361 Yeovil Tiverton Fordingbridge A303 Crewkerne M27 south. Both of these airports provide flights to numerous destinations Bude Chard throughout the UK, Europe and the rest of the world. Ringwood Honiton Bognor Okehampton A35 Regis Bridport Exeter 31 Sidmouth Weymouth Padstow Tavistock NewtonAbbot

Bodmin Saltash AD RO D StAustell OO W RS IO PR A38 St Ives A358 Falmouth Y S A358 EWA T ON A T T M5 (J25) I O

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A TAUNTON

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A P P W R A W I O O R G

R R K S Y D A358 R I BR C

T A ROVE I R APLEG RD DGE R H LA OAD B R M B

A3038 B H I T R

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H K E I R E A O L

R A R D M SITUATION D C AMIL H TON I W ROAD NSTER ROAD JUNCTION 25 N A O Y R The property occupies a busy and prominent position on the west side of T H

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T North Street close to the junction with The Bridge, and opposite St James B C H

REA L A Street. The rear of the property overlooks the River Tone and Goodland AST

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A38 K Gardens which is home to The Museum of Somerset. T B EE R R D L

T O ST S E IS

F T N A S I O A E V E O I

E E O U R U K ST E Q R X

R S T K W

D Occupiers in close proximity include Next, Monsoon, Topshop/Topman, R County Walk W A A P H Y

Shopping S H A

Orchard G T O Y Centre I M5

River Island, Poundworld Plus, Poundland, White Stuff, TK Maxx and Fat Shopping U R T E L Centre H O Face. Restaurant operators ASK, Nandos and Pizza Express together with S T S T W

A38 R A S E E numerous well-known local restaurants and coffee shops are a short E D T R distance to the property. ST O U H W PP ER HIG

19-26 NORTH STREET, TAUNTON RETAILING IN TAUNTON

One of Taunton’s great strengths is its distance from the nearest competing centres of Exeter and Bristol. Relative isolation has helped create an extensive and loyal catchment. Taunton has not seen the level of retail development other similar towns have received which has had the benefit of maintaining a relative undersupply of shops and therefore a tight pitch with limited vacancies. There has been strong growth in recent years with the town providing a good occupational story particularly for the upmarket lifestyle brands such as Joules, L’Occitane, Smiggle and who are all relatively new entrants to the town.

The town benefits from two shopping centres, the Orchard Shopping Centre (140,000 sq ft) where the Hatchers Department Store, and Iceland are located, and County Walk which is anchored by Sainsbury’s.

There has been significant housing development over the last 10 years and the town is set for a further increase with more housing development planned. Two major developments have outline planning including a 1,600 unit scheme in Staplegrove and a further 2,000 planned by developer Taylor Wimpey in Comeytrowe. 19-26 NORTH STREET, TAUNTON DESCRIPTION Floor sq ft sq m Lower Ground 14,775 1,372.6 The property comprises a well-configured department store with an exceptionally large Ground 22,887 2,126.3 frontage to North Street and is arranged over First 24,026 2,232.1 lower ground, ground, first, second and third floors totalling 86,911 sq ft (8,074.3 sq m). Second 23,533 2,186.3

The property provides the following Third 1,690 157.0 approximate gross internal floor areas: Total 86,911 8,074.3

19-26 NORTH STREET, TAUNTON EET

2

3 Car Park

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Shelter y Bd rd a W &

1 ED Posts R Riverside C 1 6 Tone Bridge Place .4

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T 4 2 Foundry H F E O House U

N B TENURE D RENTAL COMMENTARY

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C A 1 Y I o n D E t s t t R a l e 1 1 g G O y 4 e E Su A D

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Freehold. S The topped-up rent of £763,594 per annum equates to £8.79 per sq ft. We are of the opinion 8 t

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1 1 8a that there is a good basis for rental growth given the recent letting of 41/44 North Street 8 7

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9 to Poundworld at £12.11 per sq ft and the lease regear of 40-42 Fore Street with TK Maxx at 6

4 5 8

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9 £8.94 per sq ft. 9

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In 2 1 TENANCY COVENANT INFORMATION

Well 4 ty 0 The property is let in its entirety to Debenhams Retail Plc for a term of Debenhams is a leading international, multi-channel brand which trades out of 233 stores n t u o

o 4 C Castle 4 30t yearsm from 25th March 2004, expiring 24th March 2034 providing an across 28 countries. The company is the second largest department store chain in the se u r se e u Great Hall FS

unexpiredM term of circa 16.25 years. The lease is held on full repairing and UK and has a top four market share in womenswear and menswear and a top ten share in 7 4 SM 5 insuring terms subject to minimum rental increases as set outBa below.nk The childrenswear. It leads the market in premium health and beauty.

4 current passing rent is £744,970 per annum. 6 Debenhams Retail Plc is a wholly owned subsidiary of Debenhams Plc. Debenhams Retail Plc Castle House Well The vendor will provide a rental top up to £763,594 per annum (£8.79 perBank sq reported the following financial results for the last three years: ft) until the fixed rental increase on 25th March 2018.

0m 10m 20m30m 2 5 0

5 1 Date Minimum Rental Uplift 12 months to 12 months to 12 months to 03/09/2016 29/08/2015 30/08/2014 Topped Up Rent £763,594 per annum Turnover £2,105,400,000 £2,099,300,000 £2,085,900,000 25th March 2019 Higher of £782,683 per annum or OMV Pre-Tax Profit £145,200,000 £135,700,000 £165,000,000 25th March 2024 Higher of £868,467 per annum or OMV Net Assets £1,159,100,000 £1,041,900,000 £1,025,800,000 25th March 2029 Higher of £982,590 per annum or OMV

19-26 NORTH STREET, TAUNTON ASSET MANAGEMENT OPPORTUNITIES

The property offers various longer term asset management opportunities, subject to planning, including:

- Due to its prominence, large retail frontage and return frontage to the River Tone, the property would split well into several retail units fronting North Street with restaurants and leisure units at the rear fronting the river, with the potential for outside seating.

- Scope to convert the upper floors of the property to residential and extend with views over the River Tone and Goodland Gardens.

- Change of use of the upper floors to a hotel could be considered due the property’s prominent position on North Street and views at the rear over the River Tone and Goodland Gardens. INVESTMENT COMPARABLES

Property Date Tenant Price Net Initial Yield

Manchester, Current Rylands Buildings, Debenhams £84.5m 5.07% (Exchanged) Market Street

Exeter, 32/35 High Street & Nov-2017 House of Fraser £9.15m 5.03% 3-8 Catherine Street

Nottingham, Jul-2017 Debenhams £25.15m 5.35% 48/52 Long Row

Eastbourne, 158/170 Terminus Apr-2017 Debenhams £14.1m 5.88% Road

Winchester, Apr-2017 Debenhams £15.825m 4.16% 12/15 High Street

Chichester, 12/18 West Street & Apr-2017 House of Fraser £13.4m 5.25% 51/55 Tower Street

19-26 NORTH STREET, TAUNTON 19-26 NORTH STREET, TAUNTON

EPC

Energy Performance Certificate for the property is available upon request.

PROPOSAL

The vendor is seeking offers in excess of £11,920,000 (Eleven Million, Nine Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level will provide the following attractive minimum yield profile, after allowing for usual purchasers costs at 6.8%.

Date Yield Profile Net Initial Yield 6.00% 25th March 2019 6.15% 25th March 2024 6.82% 25th March 2029 7.72%

FURTHER INFORMATION CAPITAL ALLOWANCES For further information please do not hesitate to contact: Greg Meller and Ryan Springer There are no capital allowances available. Springer Nicolas 46 James Street London W1U 1EZ VALUE ADDED TAX Tel: 020 3667 5050 The property has been elected for VAT purposes and therefore VAT will Fax: 020 3370 7868 be payable upon the purchase price. It is anticipated that the sale will be Email: [email protected] treated as a Transfer of a Going Concern (TOGC). [email protected] www.springernicolas.co.uk

Misrepresentation Act 1967. Messrs Springer Nicolas for themselves and for the vendors or lessors of this property for whom they act, give notice that: (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) Messrs Springer Nicolas cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation, and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations, and must satisfy themselves as to their accuracy; (iii) no employee of Messrs Springer Nicolas has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property; (iv) rents, prices, premiums and service charge quoted in these particulars may be subject to VAT in addition; and (v) Messrs Springer Nicolas will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. (vi) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements.

19-26 NORTH STREET, TAUNTON