BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF

FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY INVESTMENT CONSIDERATIONS

■■ A busy neighbourhood scheme comprising 10 shops, ■■ Total site area of 1.465 acres (0.593 ha) 11 flats (sold off on long leases) and 10 garages. ■■ Asset Management opportunities include letting the vacant unit, ■■ Situated within Bushmead, a popular residential suburb of Luton redeveloping the site and breaking up the parade and selling the ■■ Anchored by a Co-operative convenience store let on a long lease units off piecemeal. ■ ■■ Current Passing Rent of £269,850 pa ■ Offers are sought in excess of£3,375,000 (Three Million Three Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. ■■ AWULT of 8.84 years to expiry and 7.73 years to break A purchase at this level would reflect anet initial yield of 7.50% after ■■ Car parking for 66 cars allowing for purchasers costs of 6.49% ■■ Freehold BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

OLD BEDFORD ROAD

BUSHMEAD PRIMARY SCHOOL BARNFIELD COLLEGE

HANCOCOK DRIVE

Outline for indicative purposes only. BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

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Luton A120 d Stortford Roa A418 The town of Luton is located in Bedfordshireustin Luton Airport Parkway and Luton Railway A5 A10 A A1(M) A602 within the South East of England, approximately stations offer direct routes to London St Pancras, A44 M1 A131 A130 A34 Harpenden 18 miles (29km) north of Watford, 22 miles with a journey time of 26 minutes. Other direct A40 (35km) south east of Milton Keynes and 30 miles services include St Albans (14 mins) and Bedford A414 M11 OXFORD A41 Hemel A12 (48km) north west of Central London. (14 mins). Hempstead St Albans Hatfield A4142 Thame M10 A414 A138 Luton benefits from excellent road Luton Airport is situated approximately 2 miles A420 J21 Potters Bar A414 A404 Epping Chipping communications being situated adjacent (3km) east of Luton Town Centre offering A4010 Chesham J20 J23 Ongar J25 to the M1 Motorway at both Junctions 10 and domestic and international flights to over J19 M25 J27 11. The M1 provides a direct link to the M25 70 destinations as well as freight services. M25 Watford Enfield High A1 M1 M11 A130 Motorway, 12 miles (19km) to the south Wycombe A355 A413 Harefield Brent J28 and the M6, 52 miles (83km) to the north west. M40 Cross Harrow A10 A127 There are also a number of key roads that A12 J29 A404 J16 Wembley Romford serve the town including the A6, A1081 A40 A34 Henley-on-Thames and A505 dual carriageway which leads Slough A13 to the A1(M) east. A404(M) Southall LONDONLondon J15 M4 City READING Windsor Clapham A2 M4 Heathrow A316 Dartford M25 ( ) A329 M Bracknall Egham Ashford Kingston A20 J2 Ascot Upon Thames J12 Bromley M3 A309 A3 A23 A322 J3 Croydon A232 A21 M2 M20 Sandhurst Epsom Snodland J10 Woking A217 Biggin Hill A339 A22 J9 J5 M26 M20 M3 BASINGSTOKE Fleet M25 A331 A3 Maidstone J8 J7 J6 A34 Aldershot Reigate A26 GUILDFORD Dorking Famham A21 A24 Tonbridge A303 Godalming M23 Horley Paddock Royal Wood Staplehurst Alton Witley Gatwick Tunbridge Cranleigh A264 Wells A229 A31 Crawley A264 East Grinstead

Horsham

A23 Haywards Heath

Burgess Hill BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

DEMOGRAPHICS Luton has a primary catchment area of 265,000 with an estimated shopping population of 210,000. The town is projected to see significantly above average growth in population over the next 5 years.

SITUATION The property is situated within the Luton suburb of Bushmead approximately 2 miles (3km) north of Luton Railway station and Luton town centre. The property is positioned fronting Hancock Drive, which also encircles the shopping centre and site. Opposite the property is Bushmead Retirement Centre, which has 41 apartments over two floors. Directly adjacent to the property is a church, a community centre, and a pub, highlighting the importance of this shopping centre to the local community. The surrounding area can be characterised as being a densely populated residential neighbourhood, located within a countryside backdrop. The area is renowned for its beautiful countryside, popular hiking paths and impressive horse riding tracks. Barnfield College and Bushmead Primary School are both within close proximity to the property. BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

DESCRIPTION The property occupies a large site to the east of Hancock Drive and comprises a purpose built neighbourhood shopping centre constructed in 1990. The property provides a terrace of ten units of part brick construction under a pitched tiled roof. Internally the property provides 10 retail units and 11 flats which have been sold on long leases. The property also benefits from 10 garages as well as car parking to the front for 66 cars.

Hancock Drive Luton

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VE 0m 10m 20m 30m 9 El DRI 1 2 Sub HANCOCK 2 Sta 10 K © Crown Copyright, ES 100004106. For identification purposes only. Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

TENANCY SCHEDULE

Unit Tenant Trading As Area sq ft (GIA) Area sq m (GIA) Lease Start Next Review Break Lease End Rent (£pa) Rent psf Comments

RETAIL INCOME

Units 1-3 Co-Operative Group Food Ltd Co-op 5,838 542.4 24/8/2018 24/8/2023 24/8/2033 £85,000 £14.56

Unit 4 MAA Catering Ltd Fusion 1,550 144 25/10/2004 25/10/2019 24/10/2024 £28,000 £18.06 Rent Deposit - £16,800. AGA in place Unit 5 CJ & JG Ltd CJ’s Café 1,175 109.2 22/12/2017 22/12/2022 22/12/2022 22/12/2027 £20,000 £17.02 Tenant Break Option Guarantors in place Unit 6a Fiona Terrington The Head Shed 490 45.5 24/6/2015 24/6/2020 23/6/2030 £10,000 £20.41 Mr Mustafizur Rahman Unit 6b Bushmead News 674 62.6 13/7/2016 13/7/2021 12/7/2019 12/7/2026 £9,000 £13.35 Tenant Break Option Chowdury Unit 7a Mr Sheikh MD Nural Alam Bushmead Fish Bar 620 57.6 8/10/2015 8/10/2020 7/10/2025 £11,500 £18.55 Unit 7b Gurveer Kaur 1,091 101.4 9/11/2015 9/11/2020 8/11/2030 £21,820 £20.00 Rent Deposit - £9,350 plus VAT AGA in place Unit 8 Vacant Vacant 1,250 116.1 £25,000 £20.00 Vendor to provide 12 month Rental Guarantee Unit 9 R & N Healthcare Ltd Acorn Pharmacy 1,450 134.7 6/1/2017 6/1/2022 6/1/2022 5/1/2027 £25,200 £17.38 Tenant Break Option Guarantors in place Rent Deposit - £30,240 Unit 10 Harrison Murray Ltd Harrison Murray Estate Agents 1,800 167.2 27/9/2012 26/9/2022 £26,250 £14.58

£261,770

Unit Tenant Lease Start Next Review Lease End Rent (£pa) Unit Tenant Lease Start Next Review Lease End Rent (£pa)

RESIDENTIAL INCOME GARAGE INCOME

Flat 1a Private 12/5/2017 31/12/2032 11/5/2116 £250 Garage 1 Private 1/5/2017 30/4/2018 £600

Flat 1b Private 10/3/2017 31/12/2032 9/3/2116 £250 Garage 2 Private 18/7/2014 17/7/2015 £780 Flat 2 Private 19/12/2014 18/12/2113 £100 Garage 3 Private 1/5/2017 30/4/2018 £600 Flat 3 Private 1/2/2016 1/2/2031 31/1/2115 £250 Garage 4 Private 8/9/2009 7/3/2010 £500 Flat 4 Private 19/12/2014 18/12/2113 £100 Garage 5 Private 25/9/2010 24/9/2011 £500 Flat 5 Private 6/6/2016 1/1/2032 6/6/2115 £250 Garage 6 Private 5/6/2017 4/6/2018 £600 Flat 6 Private 27/1/2015 26/1/2114 £100 Garage 7 Private 31/1/2017 31/7/2017 £700 Flat 7 Private 2/9/2016 2/9/2031 1/9/2115 £250 Garage 8 Private 29/9/2015 28/3/2016 £600 Flat 8 Private 2/9/2016 1/1/2032 1/9/2115 £250

Flat 9 Private 19/12/2014 18/12/2113 £100 Garage 9 Private 10/7/2009 9/7/2010 £600

Flat 10 Private 19/12/2014 18/12/2113 £100 Garage 10 Private 7/7/2017 6/1/2018 £600

£2,000 £6,080

AWULT (RETAIL) OVERALL INCOME £269,850 8.84 years to expiry and 7.73 years to break. BUSHMEAD SHOPPING CENTRE, HANCOCK DRIVE, LUTON, LU2 7SF FREEHOLD NEIGHBOURHOOD SHOPPING CENTRE INVESTMENT OPPORTUNITY

COVENANT CO-OPERATIVE GROUP FOOD LIMITED Operating profit was £40m, in line with last year. Profits are shown The Group is undergoing rapid expansion in the wholesale market The Co-Operative Group is the fifth largest food retailer in after deducting the amount members have earned through the 5% following the recent acquisition of Nisa and five-year commercial the UK, operating from over 2,800 local, convenience and medium and 1% member rewards, which totalled £35m in the first half of the deal to supply Costcutter Supermarkets Group. When combined sized stores. The group is also the largest UK funeral services provider, year (2017: £35m). with independent co-operative societies, The Co-Operative Group a major general insurer and a growing legal services business. In the first half of 2018, The Co-Operative Group opened 45 new now supply over 7,700 stores nationwide. The Group employs over 70,000 people across the various business food stores and 10 new funeral homes creating over 600 new jobs. A summary of Co-operative Group Food Limited’s accounts lines with over 4.65 million active members, accounting for 33.5% of They also acquired Simplify Probate to expand the probate business are below: total food turnover. In H1 2018, sales increased to £5bn, an increase and increase existing support for bereaved families, making Co-Op of 10% compared to 2017 sales of £4.5bn. This reflects a strong the largest provider of probate services in the UK. 06/01/2018 31/12/2016 performance within the Food business as well as accounting the acquisition of Nisa’s wholesaling operations. In the second half of 2018, the group has significantly increased the Turnover £7,159,600,000 6,933,400,000 The profit before tax for the period was £26m, up from £14m in 2017. rate of expansion, opening 60 new food stores and 15 new funeral Pre Tax Profits £195,400,000 £154,200,000 Underlying profit before tax, the core trading performance of the homes in addition to introducing a revised product base within the Shareholder Funds £1,875,100,000 £1,805,400,000 businesses less underlying interest, was £10m, up £7m from 2017. Insurance business. VAT PROPOSAL We understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Offers are sought in excess of £3,375,000 (Three Million Three Hundred and Seventy Five Concern (TOGC). Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level EPC would reflect a net initial yield of 7.50% after allowing for purchasers costs of 6.49% EPCs are available in the dataroom.

DATAROOM For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/bushmead For further information or to make arrangements for viewing please contact:

Jonathan Butcher Alex Butler Ronnie Morgan 020 7543 6755 020 7543 6722 020 7543 6808 [email protected] [email protected] [email protected] allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 03.19