PORTLAND STREET CAR PARK • GL52 2NX

SECURE LONG INCOME CAR PARK INVESTMENT WITH STRONG UNDERLYING DEVELOPMENT POTENTIAL PORTLAND STREET CAR PARK 02 CHELTENHAM • GL52 2NX

INVESTMENT CONSIDERATIONS

• Cheltenham is an affluent Regency town in the Cotswolds • Situated in the heart of Cheltenham Town Centre only moments away from the Prime retailing pitch • Prominent surface level car park providing 320 car parking spaces • Strong underlying development potential • A well configured site extending to 1.678 acres / 0.679 hectares • Let to the undoubted covenant of National Car Parks Limited (NCP) • New lease with an unexpired term of 35 years, with annual RPI linked rent reviews (2.0% and 4%) • Benefit of a Landlord only break option subject to a “fixed intention to redevelop” • Net passing rent of £419,475 per annum, equating to £1,311 per space • Excellent local demand drivers • Freehold

Offers are sought in excess of £8,000,000 (Eight Million Pounds) which reflects a NIY of 4.91% subject to contract and exclusive of VAT, allowing for purchaser’s costs of 6.68%. Forecasting 3% annual RPI increases the running yield will be as follows: Date Rent Running Yield 2025 £432,148 5.06% 2030 £500,978 5.86% 2035 £580,771 6.80% 2040 £673,273 7.88% 2045 £780,508 9.14% 2050 £904,823 10.59% PORTLAND STREET CAR PARK 03 CHELTENHAM • GL52 2NX

CHELTENHAM RACE COURSE

CHELTENHAM TOWN FC

BEECHWOOD SHOPPING CENTRE UNIVERSITY CHURCHILL OF THE BREWERY RETIREMENT LIVING PREMIER INN LEISURE QUARTER JOHN LEWIS & PARTNERS REGENTS ARCADE HOLLYWOOD HIGH STREET SHOPPING CENTRE HOLIDAY INN BOWL

PROMENADE EVERYMAN THEATRE

ST GREGORY THE GREAT CHURCH ROYAL CRESCENT

CHELTENHAM WAITROSE LADIES COLLEGE M62 M62 A565 M1 M180

A46 A15 A1(M) A16 A6 M53 M56 A49 M6 A55 A55 M1 A1 A158 A515 A5 A494 A41 A6 A17 A16 A5 A487 A483 A515 A52 PORTLAND STREET CAR PARK A46 A148 CHELTENHAM • GL52 2NX M6 A49 A41 A15 A470 A5 04 A38 A1 A140 A1065 A42 A16 A606 A458 M54 A47 A458 A47 A47 A146 M69 A12 LOCATION A487 BIRMINGHAM M1 A10 A11 A140DESCRIPTION SOLIHULL M6 Cheltenham is located in north A1065 The property comprises a well KIDDERMINSTER COVENTRY , a county in the M42 configured rectangular surfaced level M40 A140 South West of England. The town, NORTHAMPTON car park with a prominent frontage WARWICK A12 is well situated less than 100 miles WORCESTER on North Place and Portland Street. BEDFORD A11 west of London, 50A487 miles south of The car park is tarmacked and M5 BANBURY Birmingham and 42 miles north HEREFORD MILTON provides 320 white line marked KEYNES M11 east of Bristol. M50 A131 A12 spaces. CHELTENHAM BUCKINGHAM M1 A10 A40 A40 A40 A429 M40 A1(M) SITUATION GLOUCESTER A40 SITE AREA A417 OXFORD A477 M5 The car park, is situated in a prime M25 A12 A well configured site extending town centre location surrounded by NEWPORT to c. 1.678 acres / 0.679 hectares. SWINDON M11 existing developments. M25 The area outlined in blue currently M25 M4 M4 This site, is accessed via North Place BRISTOL READING houses a toilet block with the CARDIFF or Portland Street. To the south of potential for additional spaces the car park, is a site occupied by The BATH A28- further details on request. M26 M2 Chapel Spa and a physiotherapist. M25 A303 A229 M20 On the northern boundary is a block A24 A2 M3 M23 A39 of flats and Regency townhouses A37 M5 A303 A3 A4019 PRESTBURY ROAD fronting Clarence Road. A22 A361 A4019 A272 The property is just 0.3 miles north A350 PORTLANDA354 STREET A21 A377 A259 A39 A338 M27 of the town centre and is nearA386 the A303 A37 entrance to the Brewery Leisure A27 A354 Quarter and a short walk from A30 HIGH STREET A30 A35 CLARENCE STREET B4633 Cheltenham’s main amenity and A46 ALL SAINTS ROAD A395 retail offerings which includesA386 CHELTENHAM a John LewisA39 A30DepartmentA388 Store. A38 A380 BATH RD CHELTENHAM SPA A38 RAILWAY STATION B4075 A4015 A46 A435 A390 LANSDOWN ROAD A39 COLLEGE ROAD A30 A40

A394 A40 A40 PORTLAND STREET CAR PARK 05 CHELTENHAM • GL52 2NX

CONNECTIVITY POST COVID CAR USE

The town benefits from excellent transport links via road, rail and air: Increase in Car use compared to Public Transport Public transport use has remained very low whereas vehicle use has ROAD AIR returned to c.90% of pre-Covid levels. Junctions 10 and 11 of the , lie circa 3.5 miles Cheltenham is served by Gloucestershire Airport, which north west and west of the town centre, providing direct is just under four miles from the town centre. Both Bristol Government Guidance to use cars access to Birmingham, Bristol and the rest of the UK’s and Birmingham airports are also accessible. The Government has stated that all other form of transport should be motorway network. considered over public transport and has implemented a number of SAT NAV: GL52 2NX driver friendly measures to encourage car use during Covid. RAIL Brewery Leisure Quarter 0.1 miles The public want to drive Cheltenham Spa station is approximately one mile away John Lewis 0.2 miles 46% of respondents said they are more likely to drive than use public and provides regular services to London Paddington, University of Gloucester Campus 0.4miles transport with only 1 in 5 happy to use public transport in the future. with a journey time of circa 2 hours. Regular services also Waitrose Supermarket 0.4 miles operate to Bristol, Birmingham, Manchester, Newcastle Cheltenham High Street 0.3 miles Transport usage by type and Glasgow. The Promenade 0.4 miles (index comparing useage to pre-Covid periods) Cheltenham Spa Station 1.0 miles 120

100

80

60

40

20

0 9-Mar 29-Mar 18-Apr 9-May 28-May 17-Jun

Vehicles Rail Bus (exc.London)

Can social distancing be observed outside of a car? 92% of respondents don’t think social distancing on public transport will be feasible and will continue to stay away from public transport unless social distancing is in place.

Public interest in purchasing cars has spiked On the day Prime Minister’s easing of lockdown measures traffic on Autotrader peaked at more than 1m views, the highest since the lockdown began in march. PORTLAND STREET CAR PARK 06 CHELTENHAM • GL52 2NX

HIGH STREET CHELTENHAM

Cheltenham has an affluent and The town is an established major A4019 loyal local catchment population commercial centre in the South of circa 388,000 people and an West, particularly in the Defence additional shopping population sector, which has seen the strong of 248,000 people. employment growth. Key occupiers HIGH STREET within the Cheltenham market Cheltenham is well renowned for include: GCHQ (Government its sporting and cultural events, Communications Headquarters), including the world famous flagship Vertex Data Science, Endsleigh steeplechase race, the Gold Cup, held Insurance and Investec. at Cheltenham Racecourse in March MONSON AVENUE each year. Cheltenham Literature Total retail floor space within A4019 Festival, Cheltenham Jazz Festival, Cheltenham amounts to the Cheltenham Music Festival and approximately 1.3 million sq ft. with the Food & Drink Festival are also the prime retail pitch centred on NORTH STREET major annual events. The County the High Street and Promenade. Council estimate over 460,000 The Promenade is the location of staying visitors and 5.6m day trippers choice for many of the UK’s top visiting each year contributing over fashion retailers including Jigsaw, £235m to the local economy and Hobbs, The White Company, The NORTH PLACE sustaining over 8,000 jobs (2011 Kooples, Phase Eight and LK Bennett. GCC Data). The retail offering was enhanced by A4019 CLARENCE ROAD the arrival of the new 115,000 sq ft. John Lewis department store on the former Beechwood Shopping Centre. PORTLAND STREET

A46

A435 CLARENCE ROAD ROAD PORTLAND STREET CAR PARK 07 CHELTENHAM • GL52 2NX

DRIVER DEMANDS

Local demand drivers for this car park are compelling for the motorist as the car park offers direct access to the town centre and the Brewery Leisure scheme close by. The car park is predominantly used by local residents, shoppers and tourists. Demand is also driven by commuters and students The extent of demand is such that NCP and other operators are actively seeking additional car parking provision in the town.

NO. 1 BEST PLACE PLACE IN THE UK TO LIVE IN THE TO RAISE A FAMILY SOUTH WEST THE TELEGRAPH THE SUNDAY TIMES MARCH 2014 2020

AN NO. 1 INTERNATIONALLY SOUTH WEST’S RETAIL TOWN RECOGNISED JAVELIN GROUP CENTRE OF CYBER VENUESCORE 2017 SECURITY EXCELLENCE

TOP THREE HOST TO THE SAFEST CHELTENHAM PLACE TO LIVE IN THE UK FESTIVAL ONS PORTLAND STREET CAR PARK 08 CHELTENHAM • GL52 2NX

TENANCY NCP COVENANT

The property is let in its entirety to National Car Parks Limited on a new

full repairing and insuring lease for a NCP, the UK’s largest parking operator, was purchased by term of 35 years from 22/05/2020 to a JV between Park24 and Development Bank of Japan in and including 21/05/2055 (35 years August 2017, significantly enhancing the Tenant’s credit unexpired). There is a Landlord’s quality and operational knowledge base. Park24 is an only break option with 3 months investment grade company based in Tokyo and is a major prior notice. parking operator with over 1 million spaces in 19,000 sites The base rent is £372,775 per annum, across 8 countries. DBJ, a Japanese government owned with a topped-up rent for the first financial institution that carries an S&P “A” rating, is a five years of £46,699 per annum. The sophisticated private equity investor which has a strong current passing rent is £419,475 per track record in infrastructure and real estate investments annum, reflecting £1,311 per space. alongside Japanese outbound investors. The base rent benefits from annual NCP was founded in 1931 and operates across the UK at Retail Price Index linked rent reviews, over 500 sites with c. 150,000 spaces representing 30% with a collar of 2.0% and a cap of 4%. of the market. This is a rolling landlord only break 30/09/2018 31/03/2017 25/03/2016 option staring on 20th November Year Ending (£000’s) (£000’s) (£000’s) 2020 and running until the end of the lease. The Landlord must give three Turnover £326,490 £211,461 £202,703 months written notice subject to Pre Tax Profit (£24,697) £24,793 £28,001 a “fixed intention to redevelop” to exercise the break. Net Worth £139,922 £210,138 £186,896

TENURE

Freehold.

There are several restrictive covenants in relation to future development, and further information is available upon request. PORTLAND STREET CAR PARK 09 CHELTENHAM • GL52 2NX

PLANNING UNDERLYING DEVELOPMENT VALUE

North Place lies within the jurisdiction of Cheltenham Borough Council, and the site is now The property offers strong alternative use potential (subject to the necessary consents) for residential / build to rent earmarked for residential development in the latest local plan. The subject property was granted apartments, offices, hotel or senior living due to the wealth of amenities nearby and proximity to Cheltenham’s town detailed planning consent for 125 residential units in 2013, this was part of the wider consent for centre. The site is allocated for a £3 million Housing Infrastructure Fund (HIF) grant from Homes England that is the re-development of North Place to include further residential units, a food store, a bus node administered by Cheltenham Borough Council, further details are available upon request. and an enhanced public realm as outlined in the CGI image below. Further information is available upon request. RESIDENTIAL / BUILD OFFICE MARKET HOTEL TO RENT Cheltenham has seen a continued Whilst Cheltenham already has There is significant opportunity to enhance and update the existing consent. Demand for residential lack of Grade A supply in recent reasonable hotel provision at the accommodation in Cheltenham years, making it a particularly top end (with upmarket brands is still very strong and there constrained market within the including Malmasion, Gallery continues to be a lack of modern South West and the UK. A large by Sofitel and Hotel du Vin) and housing. Price growth in the prime amount of office stock has been budget segment (Premier Inn, South West housing market is converted through Permitted Holiday Inn Express) there is a being driven by the continued Development Rights to residential, notable gap of midmarket hotels. demand for properties in key reducing supply in the town Given the market has historically town and city markets with relative to its continuing demand. performed very well and the central good schools, transport links Office vacancy rates in location of the site, we would and amenities. Cheltenham are now only 4.5% (Q1 expect major hotel groups such as Since the easing of lockdown 2020) and whilst prime office rents Hilton and Marriott to have good agents are reporting significant have increased dramatically in the levels of interest in operating hotels demand for housing Cheltenham last few years to £30 psf. Rents still in Cheltenham. as many buyers look to move to remain low in comparison to towns that are commutable to surrounding centres such as Bristol London. Residential prices in (£36 psf), Birmingham (£34 psf) and Cheltenham are now in excess Oxford (£40 psf). As a result, there of £450+ per sq ft for higher is significant pent up demand for specification schemes. modern offices in Cheltenham, and with the lack of supply we predict that rents will continue to rise for the foreseeable future. PORTLAND STREET CAR PARK 10 CHELTENHAM • GL52 2NX

VAT CONTACT

The property has been elected for For further information contact: VAT and it is anticipated that the transaction will be treated as a TOGC. DATAROOM Richard Howell Full dataroom access is available 0117 988 5210 • 07984 962 968 upon request. [email protected] PROPOSAL Mark Frampton 020 7911 2181 • 07769 931 761 Offers are sought in excess of [email protected] £8,000,000 (Eight Million Pounds) which reflects a NIY of 4.91% subject to contract and exclusive of VAT, allowing for purchaser’s costs of 6.68%. KnightFrank.co.uk Forecasting 3% annual RPI increases James Mason the running yield will be as follows: 020 7861 1214 • 07920 087 969 [email protected] Date Rent Running Yield Hector Ahern 2025 £432,148 5.06% 020 7861 1749 • 07976 577 214 2030 £500,978 5.86% [email protected]

2035 £580,771 6.80% IMPORTANT NOTICE (1) Particulars: These particulars are not an offer, an invitation or a contract, nor part of one. Any information about price or value contained in the particulars 2040 £673,273 7.88% is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. You should not rely on statements by Knight Frank in the particulars or by word of mouth or in writing (“information”) as being factually accurate 2045 £780,508 9.14% about the property, its condition or its value. Knight Frank has no authority to make any representations about the property. No responsibility or liability is or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness 2050 £904,823 10.59% or reasonableness of the information, notice or document supplied or otherwise made available to any interested party or its advisers in connection with the Proposed Transaction. All and any such responsibility and liability is expressly disclaimed. (2) Images: Photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations: Any reference ANTI-MONEY to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must LAUNDERING find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. (5) Financial Crime: In accordance with the Money Laundering, Terrorist A successful purchaser will be Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and source required to provide the usual of funds of all parties to property transactions. Knight Frank is the trading name of Knight Frank LLP. Knight Frank LLP is a member of an international network of independent firms information to satisfy AML which may use the “Knight Frank” name and/or logos as part of their business name and operate in jurisdictions outside the . No “Knight Frank” entity acts as agent requirements when Head of for, or has any authority to represent, bind or obligate in any way, any other “Knight Frank” entity. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U Terms are agreed. 8AN, where you may look at a list of members’ names (this can also be found at http:// www.knightfrank.co.uk/about-us). September 2020. carve-design.co.uk 14832/6