57/61 ABOVE BAR STREET SOUTHAMPTON PRIME FREEHOLD RETAIL PARADE INVESTMENT INVESTMENT SUMMARY z Southampton is one of the principal commercial shopping centres on the South Coast, with a primary catchment population of 705,000. z Southampton ranks 15th in terms of volume of total retail spend available within the primary retail market area. z Prime retailing position on the west side of the pedestrianised Above Bar Street, close to the main entrance to the West Quay Shopping Centre. z Parade of 3 well configured retail units. z Freehold. z Let to the strong covenants of Santander UK plc until 2020, Game until 2020 and the Co-operative Bank plc until 2026. z Average weighted unexpired lease term of approximately 4.43 years. z Our clients are seeking offers in excess of £8,100,000 (Eight Million One Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 6.37%, assuming standard purchaser’s costs of 6.67%. Keynes Hereford Ledbury Colchester Felixstowe Gloucester Banbury Braintree Cheltenham Stevenage A12 Cheltenham Stansted Walton on the Naze Luton Tiptree Frinton-on-Sea Monmouth Gloucester Clacton-on-Sea M40 Stroud Oxford Chelmsford M25 Cwmbran M25 M5 M4 A46 Newport A34 London Cardiff Reading Bristol Bristol M4 Penarth London-City Margate Heathrow Broadstairs Barry Newbury M25 Croydon Kent Intnl. Ramsgate Weston A338 Super-Mare A37 Bath M20 M2 M3 Sandwich A34 Canterbury Guildford Maidstone Deal Bridgwater A36 Basingstoke M20 Dover Crawley Folkestone A303 Winchester Tunbridge Salisbury Wells A21 Shaftesbury SOUTHAMPTON Wellington A3 M27 A354 A23 Crewkerne Sherborne A27 Brighton Honiton Lyme Regis Dorchester Poole A31 Bournemouth Sidmouth LOCATION Southampton is a major port and one of the South East’s principal commercial Southampton Airport is located 5 miles to the north east of the city centre and and retail centres. Southampton is located approximately 76 miles south west of provides flights to over 40 UK and European destinations, whilst London Heathrow Central London, 30 miles east of Bournemouth and 20 miles west of Portsmouth. Airport is located 67 miles to the north-east. The city benefits from excellent road communications, accessed via the M3 Southampton is the dominant retail destination on the South Coast, with an Motorway, which connects with the M25 Motorway and the M27, providing links to estimated shopping population of approximately 251,000 people. Tourism provides a Portsmouth to the east and Bournemouth to the west. significant boost to the local economy with some 7.5 million visitors to the City each year. The City’s primary catchment population of 705,000 people ranks 17th out of By rail, there are fast and frequent services to London Waterloo, with a journey time the Promis centres. of approximately 1 hour and 20 minutes. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET RETAILING IN SOUTHAMPTON Southampton is one of the UK’s primary retailing centres with an estimated city centre retail floorspace of 2.18 million sq ft, ranking the city 12th of the Promis centres. The prime city centre retailing in Southampton is concentrated within the Hammerson owned West Quay Shopping Centre, which is supported by the pedestrianised section of Above Bar Street. The West Quay Shopping Centre comprises approximately 800,000 sq ft of retail accommodation and is anchored by John Lewis and Marks and Spencer. Westquay South, the schemes dining and leisure extension opened in December 2016 offering a new Cinema De Lux alongside Hollywood Bowl and restaurants including Franca Manca, The Diner, Cau and Five Guys. Above Bar Street is a part pedestrianised linear shopping street, comprising well configured retail units. Major retailers on the street include Primark, TK Maxx, Top Shop/Top Man, Urban Outfitters and Boots the Chemist. River Island are relocating from Westquay into 56/58 Above Bar demonstrating the strength of the pitch. Tellon Capital are redeveloping Bargate Quarter which will open in Autumn 2019, comprising 22 retail units and 5 restaurant units. The more secondary retailing can be found on the non-pedestrianised section of Above Bar Street and the Marlands Shopping Centre, which comprises 250,000 sq ft of retail space, anchored by Peacocks. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET SITUATION The property occupies a prime trading position on the west side of the pedestrianised section of Above Bar Street, just to the north of the primary entrance to the West Quay Shopping Centre. Nearby retailers include Sports Direct, Pret A Manger, HMV and Urban Outfitters. DESCRIPTION The property comprises 3 well configured retail units arranged over ground and two upper floors, which forms part of a larger, post-war constructed retail parade. Servicing is available from Scullards Lane to the rear of the property. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET SECOND CUP COFFEE SHOP NORTH GAME HSBC BANK TO BE WARREN JAMES SPORTS GOODS (2 RETAIL FLOORS) For Identification purposes only BARRHEAD TRAVEL PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET ACCOMMODATION ACCOMMODATION We have not had an opportunity to inspect the subject property but we have been informed by our clients that the property comprises the following We have been informed by our clients that the property comprises the approximate floor areas:- following approximate floor areas:- Address Tenant Ground Floor Sales ITZA Gnd Floor Storage/ First Floor Sales First Floor Anc/ Second Floor Anc Total sq ft Unit Loading sq ft sq ft Offices sq ft sq ft 57 Above Bar Street Santander UK plc 2,660 967.50 235 – 1,231 368 4,494 (247.11 sq m) (21.83 sq m) (114.36 sq m) (34.19 sq m) (417.49 sq m) 59 Above Bar Street Game Retail Ltd 1,773 720 – – 846 431 3,050 (164.71 sq m) (78.59 sq m) (40.04 sq m) (283.34 sq m) 61 Above Bar Street The Co-operative Bank plc 1,944 757 – 2,090 517 2,696 7,247 * (180.60 sq m) (194.16 sq m) (48.03 sq m) (250.46 sq m) (673.24 sq m) TOTAL FLOOR AREA 14,791 sq ft (1,374.08 sq m) *We understand that the unit has basement accommodation of 900 sq ft accessed by a trapdoor. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET TENURE Freehold. TENANCIES The property is let in accordance with the Tenancy Schedule set out below, to Santander UK plc, Game Retail and The Co-operative Bank plc. The total current income is £551,000 pax. The average weighted unexpired lease term is approximately 4.43 years. Address Tenant Term From Expiry Next Rent Current Zone A Comments Review Rent (pa) Analysis 57 Above Bar Street Santander UK plc 25+5 25/03/90 31/12/20 – £201,000 £200 Tenant extended lease for 5 years from 2015 59 Above Bar Street Game Retail Ltd 5 15/12/15 14/12/20 – £150,000 £195 61 Above Bar Street The Co-operative Bank plc 10 21/3/2016 20/3/26 20/3/2021 £200,000 £189 The tenant has removed a sales staircase at the front of a the shop via a licence to carry out works dated 5th December 2007. The tenant regeared in March 2016. TOTAL £551,000 PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET RENTAL VALUE Rental levels outside West Quay reached £230 Zone A in 2008. The most salient evidence on the street is the regear of the Halifax at 63/65 Above Bar Street where the tenant took a new 10-year lease at a rent of £260,330 pax which reflected a headline Zone A of £190 per sq ft and a net Zone A rent of £183 ZA. 48/50 Above Bar Street was let to Holland and Barrett in August 2017 at a rent of £310,000 pax which reflected a net Zone A rent of £190 per sq ft. As of today’s date it is in our opinion that the subject property is rack rented. We understand that the prime net Zone A tone in West Quay is currently £320 Zone A per sq ft. VAT The property has been elected for VAT purposes and therefore it is expected that the investment sale will be treated as a Transfer of a Going Concern (TOGC). EPC Energy Performance Certificates can be provided on request. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET COVENANT STATUS The salient covenant information on the tenants can be set out in the table below:- Address Tenant Date Total Pre-Tax Net Experian Turnover Profits Worth Score (£000) (£000) (£000) 57 Above Bar Santander 31/12/2017 1,222,000,000 1,817,000,000 14,311,000,000 91 Street UK plc Very Low Risk 59 Above Bar Game 29/07/2017 493,112,000 -7,135,000 68,866,000 A – Below 73 Street Retail Ltd Average Risk 61 Above Bar The Co-operative 31/12/2017 – -216,000,000 1,424,000,000 45 - Above Street Bank plc Average Risk PROPOSAL We are instructed to seek offers in excess of £8,100,000 (Eight Million One Hundred Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest in the subject property. A purchase at this level would reflect a net initial yield of 6.37%; after allowing for standard purchasers costs at 6.67%. PRIME FREEHOLD RETAIL PARADE INVESTMENT | 57/61 ABOVE BAR STREET For further information, please contact: PHILIP HAY BROOK WANNOP 020 7637 7100 020 7637 7100 [email protected] [email protected] Messrs.