Western Way Retail Park Bury St Edmunds • IP33 3SP

LONG DATED INCOME RETAIL PARK INVESTMENT OPPORTUNITY 2 Western Way Retail Park | Bury St Edmunds

Investment Highlights

• Bury St Edmunds is an attractive and growing market • Fully let on FRI terms to 2 occupational tenants, the park town in West Suffolk, established as a dynamic produces a current annual rent of £612,375, reflecting retailing centre, with a current resident population of low rents of £8.65 and £12.72 psf respectively. approximately 41,113 people. (Census 2011) • The income provides an increasingly rare long weighted • The surrounding population is both affluent and mobile. average unexpired term in excess of 17 years. CACI Ltd report a 15 minute catchment population of 57,352 people which increases to 92,525 people within • Secured to the excellent covenants of CDS (Superstores 20 minutes. International) Ltd and B&M Retail Ltd - 49% of the income is subject to 5 yearly 2% pa compounded • Western Way Retail Park comprises a newly redeveloped fixed increases. retail warehouse scheme configured in 2 units, providing approximately 5,501 sq m (59,220 sq ft) of attractive, • The property is held Freehold and benefits from a wide well specified, flexible retail floorspace and parking for bulky goods planning consent. 200 vehicles.

Offers are sought in the region of

£11,480,000 Initial Yield 5.00%

(Eleven Million Four Hundred and Eighty Thousand Guaranteed Uplift November 2022 5.25% pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for Guaranteed Uplift November 2027 5.54% the purchaser’s costs of 6.71% this would reflect the Guaranteed Uplift November 2032 5.85% following yield profile: Western Way Retail Park | Bury St Edmunds 3

THE SCHEME OFFERS A WEIGHTED TERM CERTAIN IN EXCESS OF 17 YEARS 49% OF THE INCOME IS SUBJECT TO 5 YEARLY 2% FIXED INCREASES 4 Western Way Retail Park | Bury St Edmunds

Kings Lynn A606 LocationGreat Yarmouth Leicester A47 A1065 A12 A43 M69 A6 Bury St Edmunds is an attractive and affluent market A11 Lowestoft A605 M1 Corby town which serves as both the retail and cultural centre for West Suffolk. Strategically situated located A141 Coventry A10 Thetford M6 47.6 km (29.6 miles) east of and 70.2 km A14 A1(M) A140 Rugby (43.6 miles) south west of Norwich, the town boasts A43 M45 Bury excellent transport communications serving the A14 A14 surrounding population. Northampton St Edmunds A6 Newmarket Cambridge A134 A12 A423 The A14 links to Cambridge and the M11 motorway to the A11 west and Ipswich to the east. Additionally, the A134 provides M1 access to Norwich in the north east via Thetford the A11. A1 Ipswich M40 M11 A43 Milton Keynes A regular train service runs between Bury St Edmunds and

A5 both Liverpool Street and London Kings Cross, with A131 M1 a travel time of just under 2 hours. A1(M) Braintree Stevenage Luton A41 A12 Clacton-on-Sea M11 Distances to Towns A418 M40 Amersham A10 M25 kilometres miles High Brentwood Cambridge 47.6 29.6 Wycombe M11 A127 Colchester 51 kilometres 31.9 miles Basildon Southend-on-Sea Slough M25 North London Ipswich 44.7 kilometres 27.8 miles Reading M4 Staines Margate A2 Rochester Norwich 70.2 kilometres 43.6 miles M3 M20 A33 Camberley M25 M26 M2 Basingstoke Guildford Maidstone A331 Western Way Retail Park | Bury St Edmunds 5

Drive Time Key Socio March A10 Peterborough 20 Minutes A11 15 Minutes Economic Profile A140 10 Minutes Thetford We have identified CACI Ltd drivetime catchment population figures for the property below: Ely A1066 A11 A134 10 min Drive Time 41,137 people Mildenhall A10 Westhorpe 15 min Drive Time 57,352 people Bury 20 min Drive Time 92,525 people St Edmunds

The catchment boasts an affluent and mobile demographic as demonstrated by the CACI Ltd numbers below, from the 20 minute drivetime catchment: Cambridge Newmarket A134 Stowmarket A14 ACORN Type Description Group Bury St Edmunds UK

Affluent Achievers 24.1% 21.5% M11 Ipswich Sudbury Asset Rich Families 4.2% 2.5%

Career Climbers 7.7% 6.1% Wealthy countryside commuters 3.2% 2.3%

Successful Suburbs 7.3% 5.9%

M11

Car Ownership, two cars Household or more (%) Ownership (%)

UK Average 32.5% 63%

10 min Drive Time 32% 64.1%

15 min Drive Time 38.3% 66.1%

20 min Drive Time 41% 64.7% A134

6 Western Way Retail Park | Bury St Edmunds

A1101 A143

A14 A134 A1101 Western Way Retail Park A143 Situation A14

Western Way Retail Park is situated approximately 2.25 km A1302 (1.4 miles) west of the town centre, to the south of A14 the A14 Dual Carriageway and adjacent to a 6,967 sq m Bury (75,000 sq ft) Asda superstore and petrol filling station. St Edmunds The surrounding area predominantly comprises retail, trade counter, light industrial and residential uses. West Suffolk College A143 (the University of Suffolk) is found a short distance to the east, A14 towards the town centre, and boasts a student population A1302 A14 of over 10,000.

Access to Bury St Edmunds town centre is provided by both the A1302 to the south and the A14 to the north. A134 A143

North

“ THE COMBINATION OF THE SUBJECT PROPERTY AND THE ADJACENT ASDA REPRESENT THE

DOMINANT RETAIL OFFER TO THE A143 A134 WEST OF THE TOWN CENTRE” Western Way Retail Park | Bury St Edmunds 7

Town Centre Arc Shopping Centre North

West Suffolk College

West Suffolk Council HQ

A14

A1302

Western Way

Skatepark

A14

This aerial is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. 8 Western Way Retail Park | Bury St Edmunds

Out of Town Retail Provision

Bury St Edmunds boasts a well-balanced 1 Robert Boby Way Retail Park 2 St Edmundsbury Retail Park Phase I 3 St Edmundsbury Retail Park Phase II out of town retail provision, as demonstrated (Robert Boby Way, Bury St Edmunds, (Easlea Road, Bury St Edmunds, IP32 7BT) (Easlea Road, Bury St Edmunds, IP32 7BT) by the development of the subject property IP33 3DH) To the south east of the town centre, Adjacent to Phase 2, St Edmundsbury Retail and levels of competition from occupiers for Positioned just to the west of the town St Edmundsbury Retail Park extends to Park Phase II is extends to 2,224.8 sq m the space available. The existing provision centre, the park extends to around around 9,253 sq m (99,600 sq ft). Having (23,948 sq ft) with tenants including Currys/ has enjoyed established and profitable 2824.3 sq m (30,400 sq ft) in 3 units with opened in 1990, today tenants include PC World and Home Bargains. Opened in levels of trading for the retailers which tenants including Halfords and TK Maxx Dunelm, Pets at Home and Homebase. It is 1994, the scheme benefits from a Bulky explains the low levels of vacancy. along with one vacant unit. Current passing notable that this Homebase store is not on Goods planning consent. rents are in the order of £11.00 psf. the identified closure list recently released. We have identified the main components of the out of town provision on the map below:

A134

A1101 4 Asda Superstore 5 Tesco Superstore 6 Sainsbury’s Superstore Western Way, St Saviours Interchange, Bedingfield Way, IP33 3SP – 25,534 sq ft IP32 7JS – 32,475 sq ft IP32 7EJ – 82,798 sq ft

A14 A134 A1101 7 Matalan 8 Aldi 9 B&Q 4 A143 Easlea Rd, Dettingen Way, 43-48 Risbygate Street, A14 5 Western Way IP32 7BY – 31,000 sq ft IP33 3TU – 16,500 sq ft IP33 3AA – 39,905 sq ft Retail Park 8 A1302 A14 9 10 DFS 11 Waitrose 11 Bury 1 St Edmunds Easlea Rd, Robert Boby Way, 7 IP32 7BY – 20,000 sq ft IP33 3DH – 21,104 sq ft A143 6 2 3

A1302 A14 10

A134 A143 North

A134 Western Way Retail Park | Bury St Edmunds 9

Description

The subject property provides approximately 5,501 sq m (59,220 sq ft) of purpose built retail warehouse ground floor accommodation. The west facing terrace comprises 2 units, together with outdoor garden centre, with parking for 200 vehicles (including staff spaces).

Internally the units have been fitted out by each of the tenants to their own individual corporate specification. 6m (19.7 ft) eaves heights allow the installation of mezzanines in both units – currently only The Range have first floor retail space however, which includes a café facility.

Customer access is via a roundabout junction on Western Way, whilst segregated rear servicing is available to both units from Olding Road. Staff parking spaces are included within the service yard. PFS

Garden Centre

Olding Road

Western Way

North North

This plan and aerial is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. 10 Western Way Retail Park | Bury St Edmunds

Tenancies

The scheme is let in its entirety on Fully Repairing and Insuring terms to two occupational tenants producing a total annual income of £612,375 pa, as detailed in accordance with the schedule below:

Unit Tenant Trading Fascia GIA MEZZ Term Lease Lease Next RR Passing Rent Passing Rent Comments (sq ft) (sq ft) (Yrs) Start Expiry Date (£ pa) (£ psf)

CDS (Superstores 5 yearly reviews - reflecting fixed increases to 1 The Range 34,660 19,375 20 27/11/2017 26/11/2037 27/11/2022 £300,000 £8.66 International) Ltd 2% pa compound

5 yrly upward only OMV reviews. Subject to a cap B&M 24,560 - 15 05/03/2018 04/03/2033 05/03/2023 £312,375 £12.72 2 B&M Retail Ltd at each review of 112% of previous passing rent

59,220 19,375 £612,375

Western Way Retail Environmental Park Income Split Considerations Tenure B&M The property is held Freehold. 51% 49% As part of the development full remediation of the site was The Range undertaken and signed off by the planning authority. All reports are available upon request. Western Way Retail Park | Bury St Edmunds 11

Planning EPCs

Full planning consent was granted by St Edmundsbury Council on the Energy Performance Certificates have been produced for the units. 13 December 2016. The ratings are identified below:

The consent provides for wide bulky goods sales with further specific relaxations and we have identified these in more details below: Unit 1 Unit 2

Rating A (22) A (25) Unit 1 – The Range Shall only be used for the sale of:

Carpets and floor coverings, household goods and furnishings, furniture and electrical goods and for the sale of DIY maintenance and improvement products for the home, garden and car; camping and bulky leisure goods; and for a maximum of 30% of the floorspace (including the external sales area) for the sale of, hobbies and craft supplies, office supplies, pet food and pet products, Christmas trees and decorations, fireworks and rockets; and ancillary product ranges to all the goods listed above and for use as a café and for no other purpose within Class A1.

Unit 2 – B&M Shall be used for Class A1 purposes only subject to the following conditions/restrictions:

No part of the floorspace can be used for the sale of fashion clothing, footwear, watches and jewellery.

• No more than 1,130 sqm (12,163 sq ft) of the net sales area shall be used for the sale of convenience goods.

• No more than 300 sqm (3,229 sq ft) of the net sales area shall be used for the sale of health and beauty products, pharmaceutical and personal products

• No more than 200 sqm (2,153 sq ft) of the net sales area shall be used for the sale of non-fashion clothing and non-fashion footwear (including sportswear, nightwear, underwear, workman/DIY clothing). “ THE FRI INCOME PROFILE DELIVERS A WEIGHTED Copies of this document are available on request. UNEXPIRED TERM IN EXCESS OF 17 YEARS ” 12 Western Way Retail Park | Bury St Edmunds

Covenant Information

B&M Retail Limited Company No: 01357507

B&M Retail Ltd is a 5A1-rated covenant (Dun & Bradstreet) with a UK network of 576 retail stores and a total of 47 new store openings in the last financial year. A summary of their latest accounts are shown below:

Pre-Tax Tangible D&B Year to Date Turnover Profit Net Worth Rating

Mar-18 £2,629,145,000 £236,006,000 £600,542,000 “B&M HAS DELIVERED ANOTHER SET OF STRONG Mar-17 £2,252,265,000 £198,006,000 £498,412,000 5 A1 RESULTS BY DOING WHAT WE DO BEST, WHICH IS PROVIDING GREAT VALUE WEEK-IN, WEEK-OUT Mar-16 £1,902,557,000 £168,121,000 £440,372,000 ON THE THINGS CUSTOMERS BUY REGULARLY FOR THEIR HOMES AND FAMILIES. NONE OF OUR SUCCESS COULD HAVE BEEN ACHIEVED WITHOUT In February 2015, parent company B&M European Value Retail S.A entered the FSTE 250 for the first time, after a THE HARD WORK AND DEDICATION OF THE 12% share sell off. THOUSANDS OF B&M COLLEAGUES ACROSS THE GROUP AND ON BEHALF OF THE BOARD I WOULD LIKE TO THANK THEM FOR ALL THEIR EFFORTS. Parent Company: B&M European Value Retail S.A

THE B&M MODEL IS HIGHLY RELEVANT FOR THE • In preliminary results announced in March 2018 – • Group Adjusted Profit Before Tax increased by CURRENT DIFFICULT ECONOMIC ENVIRONMENT, B&M European Value Retail S.A stated that sales 16.5% to £221.5m (2017: £190.2m), diluted WITH ITS STRONG POSITION IN THE VALUE AND were up 22.4% to £2,976.3m (2017: £2,430.7m) earnings per share 18.6p (2017: £14.3p). CONVENIENCE AREAS OF RETAILING WHERE • Group profit before tax increased by 25.4% to • 47 new B&M UK stores opened in the period and PHYSICAL STORES ARE WIN-NING. THE BUSINESS £229.3 million during the same period. at least a further 45 new stores are planned for this IS WELL PLACED FOR CONTINUED PROFITABLE, financial year as “we benefit from the availability • UK B&M store fascia Adjusted EBITDA growth of LONG-TERM GROWTH. IN A RETAIL SECTOR BESET of attractive new store opportunities”. BY STRUCTURAL CHALLENGES B&M’S UNIQUE, 17.2% to £261.7m (2017: £223.2m), with a 29bps DISRUPTIVE MODEL STANDS OUT AS A increase in margin to 10.2% of revenue. SUCCESS STORY.” • UK B&M store fascia Like-for-Like revenue growth of 4.7% for the year. SIMON ARORA, CHIEF EXECUTIVE MAY 2018 Western Way Retail Park | Bury St Edmunds 13

CDS (Superstores International) Limited Company No: 02699203

CDS (Superstores International) Ltd trading as “The Range” is now the fastest growing retailer in the UK. With over 140 stores nationwide, they stock more than 65,000 products across 16 different departments, from Homewares and Furniture to DIY and Art Supplies.

In August 2018, The Range announced an agreement with Iceland to allow the sale of Iceland’s food products in its stores- creating a ‘one stop shop’ for customers.

A summary of the latest accounts are shown below:

Pre-Tax Tangible D&B “GROSS PROFIT INCREASED BY 10 PERCENT AS A Year to Date Turnover Profit Net Worth Rating RESULT OF THE INCREASE IN TURNOVER, ACHIEVED BY INCREASING THE TURNOVER IN EXISTING STORES Jan-17 £761,287,000 £67,543,000 £144,727,000 AND INCREASING THE NUMBER OF TRADING STORES BUT MAINTAINING THE LEVEL OF FIXED COSTS. Jan-16 £674,203,000 £57,032,000 £190,245,000 5A1 THE GROUP IS OPTIMISTIC ABOUT THE FUTURE GIVEN THE CONTINUED GROWTH AND ASSOCIATED Jan-15 £565,064,000 £57,299,000 £166,972,000 ECONOMIES AS WELL AS THE STRENGTH OF THE CONCEPT”.

The most recent accounts submitted reveal that turnover in the 12 months to 29th January 2017 increased 13% to £761.3m from £674.m in 2015/16. Pre-tax profit increased 18% from £57m the previous year to £67.5m last year. A STATEMENT FROM During the trading period, the retailer opened 16 new stores, including a store in Limerick, Ireland in August 2016. THE DIRECTORS JANUARY 2017

“PRE-TAX PROFIT INCREASED 18% IN THE FINANCIAL YEAR TO 29 JANUARY 2017” 14 Western Way Retail Park | Bury St Edmunds

A RARE OPPORTUNITY TO ACQUIRE A NEWLY DEVELOPED RETAIL PARK DELIVERING DEFENSIVE LONG DATED INCOME FROM MARKET LEADING TENANTS WITH THE BENEFIT OF FIXED INCREASES Western Way Retail Park | Bury St Edmunds 15

VAT

The property has been elected for VAT and it is anticipated that the transaction will be treated as the Transfer of a Going Concern.

Proposal

Offers are sought in the region of £11,480,000 (Eleven Million Four Hundred and Eighty Thousand pounds), subject to contract and exclusive of VAT for the Freehold interest in this property. Allowing for the purchaser’s costs of 6.71% this would reflect the following yield profile:

Initial Yield 5.00%

Guaranteed Uplift November 2022 5.25%

Guaranteed Uplift November 2027 5.54%

Guaranteed Uplift November 2032 5.85% Contacts

For further information please contact:

Justin Houlihan T: 020 7152 5670 M: 07855 792 294 E: [email protected]

Tamsin Layton T: 020 7152 5158 M: 07903 054 706 E: [email protected]

Disclaimer Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they are, give notice that: (1) The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract. (2) No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing within this information should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (September 2018)

JN 16372.001 / Bury St Edmunds Retail Park