PRIME FREEHOLD RETAIL INVESTMENT 44/46 PARK STREET, WS1 1NG INVESTMENT SUMMARY

• Two Prime Shops in Park Street • Let to Subway and Footlocker • Let until June 2021 and July 2026 • Rebased rents set in 2016 • Total rent £85,000 per annum • Price £940,000 subject to contract • Net Initial yield 8.5%

WALSALL

Walsall forms part of the conurbation. It is situated 10 miles north-west of , 8 miles east of Wolverhampton, 6 miles north of West Bromwich and 130 miles from London. The town was formally part of but now falls within the Metropolitan Borough of Walsall.

The resident town population is around 70,000 whilst the borough population is 274,000. Over 800,000 people live within 6 miles and 2.3 million within 12 miles.

The town benefits from good communications. Junction 10 of the M6 is just 3 miles to the west whilst two other M6 junctions and the M5/M5 junction are all with 5 miles. Frequent rail services are available to Birmingham with a fastest journey time of around 23 minutes whilst London can be reached in around 2 hrs. Walsall central bus station was rebuilt in recent years and is situated very close to the subject property. The nearest international airport is Birmingham some 24 miles to the south-east.

Walsall has always been popular with shoppers, many of whom travel in by bus. The famous street market has been operating since the 13 th century and trades 5 days a week.

44/46 PARK STREET, WALSALL WS1 1NG 2 LOCATION

Walsall has a vibrant and comprehensive shopping offer arranged along the pedestrianised Park Street/Digbeth axis. There are two covered shopping centres – the Saddlers Centre anchored by TJ Hughes off Park Street and Old Square Centre anchored by Debenhams off Digbeth. Crown Wharf Retail Park anchored by TK Maxx and Next is situated to the north of Park Street. Recent developments include a new Primark store and reconstruction within Digbeth. The subject property is situated in a prime location on the north side of Park Street opposite the Saddlers Centre entrance.. Retailers in the immediate vicinity include Card Factory, H Samuel, WH Smith, KFC and Holland & Barrett.

Walsall railway station and the bus station are situated very close to the subject property with the railway station opposite (approached through the Saddlers Centre) and the bus station immediately behind and approached BRIEF DESCRIPTION through Butlers Passage (the walkway next to Footlocker). The property is arranged over basement, ground and two upper floors within a traditional building having brick elevations under flat and pitched roofs. The .The location is indicated on the Goad plan extract. accommodation is divided between two shops – the left hand facing occupied by Footlocker and the other by Subway.

Footlocker occupy a deep ground floor unit with basement and first floor located under/over the rear of the shop. The ground floor is used for sales with a partitioned area for shoe storage and changing rooms whist the basement and first floors are used for storage and ancillary purposes.

Subway occupy a ground floor unit with double width basement, first and second floors under/over the front of the building. The ground floor is used for sales and kitchen and the first floor is arranged as a customer seating area. The basement and second floor provide good storage accommodation but Subway do not use the basement which has restricted access. This unit was refurbished by the vendor prior to letting.

There is rear access from Footlocker into Butlers Passage for fire escape purposes and external fire escape stairs from the Subway second floor to the first floor of Footlocker.

44/46 PARK STREET, WALSALL WS1 1NG 3 DIMENSIONS

The property has the following approximate dimensions and net internal areas.

No.44 Subway

Gross Frontage 19’ 00” 5.79 m

Net Frontage 16’ 08” 5.08 m

Shop Depth 40’ 08” 12.39 m

Ground Floor Sales Area 614 sq.ft. 57.04 m²

ITZA 486 units

Basement - Storage 994 sq.ft. 92.34 m²

First Floor - Sales 902 sq.ft. 83.79 m²

Second Floor - Storage 950 sq.ft. 88.25 m²

No.46 Footlocker

Gross Frontage 20’ 09” 6.32 m

Net Frontage 16’ 08” 5.08 m

Shop Depth 84’ 04” 25.71 m

Ground Floor Sales Area 1,715 sq.ft. 159.32 m²

ITZA 729 units

Basement - Storage 844 sq.ft. 78.41 m²

First Floor - Ancillary 1,136 sq.ft. 105.53 m²

44/46 PARK STREET, WALSALL WS1 1NG TENURE COMMENT ON RENTS

The property is freehold . 44 Park Street was let to Subway on the open market in 2016. We devalue the rent to a zone A rate of £59.85 per sq ft with A/12 on the first floor sales and 44 Park Street – Subway £1.50 per sq ft on the second floor. Whilst the basement provides good storage The property is let to Subway Realty Ltd on for a term of 10 years from 14 th we have not valued in view of the restricted access. th July 2016 expiring on 13 July 2026 subject to upwards only rent review on 46 Park Street was the subject of a new reversionary lease negotiated in th 14 July 2021 at a rent of £35,000 per annum exclusive. There is a tenant 2015. We devalue the rent to a zone A rate of £61.80 per sq ft with £2.50 per only break in July 2021. The lease is full repairing and insuring save that sq ft on the first floor ancillary and £2.50 per sq ft on the basement storage. there is a photographic schedule of condition (which mostly confirms the recent refurbishment work). Both rents represent rebased levels substantially reduced from previous levels. Best ever zone A rents in Park Street approached £130 per sq ft. 46 Park Street – Footlocker The property is let to Freedom Sportsline Ltd trading as Footlocker on a full EPC th repairing and insuring basis for a term of 5 years from 24 June 2016 and EPC certificates and reports are available on request. expiring on 23 rd June 2021 at a rent of £50,000 per annum exclusive. There are no rent reviews or breaks in the lease. Total income is £85,000 per annum.

TENANT COVENANTS

Subway Realty Ltd (04174473) are a wholly owned subsidiary of Subway International Holdings BV and are a holding company arranging leases with landlords and sub-leases with Subway franchisees. They are responsible for over 1,440 Subway branches. For the year ended 31 st December 2017 the company had a turnover of £35.4 million, pre-tax profit of £1,741,628 and shareholders funds of £4.3 million. Experian rate them as ‘Below Average Risk’. Freedom Sportsline Ltd (01779106) are a subsidiary of Foot Locker UK Ltd and their ultimate parent is Foot Locker Inc. The sell sports and leisure clothing, footwear and accessories from some 75 branches nationwide. For the year ended 31 st December 2016 the company had a turnover of £120.5 million, pre-tax profit of £949,000 and shareholders funds of £25.2 million. Experian rate them as ‘Very Low Risk’.

44/46 PARK STREET, WALSALL WS1 1NG 5 Walsall

Experian Goad Plan Created: 30/08/2018 Created By: Smith Price 50 metres For more information on our products and services: Copyright and confidentiality Experian, 2017. © Crown copyright and www.experian.co.uk/goad | [email protected] | 0845 601 6011 database rights 2017. OS 100019885

Poweredby TCPDF (www.tcpdf.org) PRIME FREEHOLD RETAIL INVESTMENT 44/46 PARK STREET, WALSALL WS1 1NG

PROPOSAL

For the freehold interest subject to the lettings, we seek a price of £940,000 subject to contract to show a net initial yield of 8.5% allowing for costs at 5.68%.

This is an opportunity to purchase a pair of prime shops with basements and upper parts in a strong trading location in Walsall. They are let to strong national multiples at rebased rents.

The property is registered for VAT and a sale is expected to be by TOGC.

MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to FURTHER INFORMATION decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor We can provide further information including copy lease and floor plans. Please contact: the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way Stephen Powell John Loveday interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents 020 7318 5751 020 7409 2100 supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given [email protected] [email protected] on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract.

Smith Price LLP is a limited liability partnership registered in England and Wales. Smith Price LLP | 5-7 John Princes Street | London, W1G 0JN Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN

SUBJECT TO CONTRACT