INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW

REVERSIONARY LONDON RETAIL INVESTMENT FOR SALE

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 1 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

INVESTMENT CONSIDERATIONS

„„ Dominant south east London covered shopping centre investment.

„„ Prime retailing position.

„„ 91% of the income is secured against the undoubted covenants of Wilko, Card Factory, Peacocks and Iceland.

„„ Asset management opportunities to reconfigure/extend units, including „ a current offer from a leisure operator.

„„ Potential to consider residential development above the scheme, subject to planning.

„„ Average weighted unexpired lease term of approximately 6.68 years.

„„ We are instructed to seek offers in excess of £6,000,000 (Six Million Pounds), subject to contract and exclusive of VAT, which reflects „ a contracted net initial yield of 6.98% and deemed net initial yield of 7.42% based on our opinion of rental value.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 2 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

A501 A11 A13 RAINHAM AME CITY OF A13 TH S LOCATION LONDON LONDON RIVER A13

SOUTHWARK THE O2 Penge is located in the Borough of Bromley, „ A4 WESTMINSTER in south-east London, and lies approximately M4 A202 3 miles (5 kilometres) west of Bromley, „ WOOLWICH BELVEDERE PURFLEET 4 miles (6.5 kilometres) north of Croydon „ GREENWICH and 9 miles (14.5 kilometres) south of „ A202 A2 A207 Central London. A3 LEWISHAM A207 A20 WELLING The area has excellent communications with A3 A23 A24 EAST DULWICH A2 Junction 6 of the M25 approximately 9 miles BEXLEYHEATH A226 (14.5 kilometres) to the south, and the A205 DARTFORD (south circular road) 3 miles (5 kilometres) „ A3 BEXLEY to the north. A2 WEST NORWOOD The town benefits from two mainline railway DOWNHAM A20 A24 stations within half a mile of the subject A23 KINGSTON property, which connects to London Victoria UPON THAMES PENGE CHISLEHURST M25 and London Bridge with an average journey BECKENHAM BROMLEY time of approximately 20 minutes. A3 Penge has a catchment population of „ 227,679 people. M20 CROYDON A232

RETAILING IN PENGE

Retailing in Penge is centred along the High Street (A234), with secondary retail „ on the northern section of the High Street and Maple Road to the north. The south of the High Street extends past Croydon Road, where there is further secondary retailing including representation of both Sainsbury’s and Lidl.

Blenheim Shopping Centre is located in the centre of Penge on the west side „ of the High Street, close to its junction with Croydon Road. The frontage to the scheme is set back from the High Street, accessed via a partially covered pedestrianised walkway.

Multiple traders in Penge include Sainsbury’s, Lidl, Greggs, Superdrug, „ HSBC and McDonald’s.

There is a lack of good quality retailing in Penge and a large number of outstanding requirements including Home Bargains, Argos, Poundland and The Gym.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 3 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

SITUATION NORTH

The property occupies a prime trading position on the west side of the High Street. Nearby retailers include McDonald’s, Superdrug, Sainsbury’s and Lidl.

DESCRIPTION

The property comprises a four storey shopping centre of concrete frame construction, providing four retail stores and a kiosk on the ground floor with ancillary accommodation on part of the first floor. The remainder of the first, second and third floors comprise a multi-storey car park, providing 216 spaces, accessed from Evelina Road to the south, with egress from the car park in Burnham Close to the north.

Servicing is from a dedicated service yard to the rear of each of the units, which provides good access directly into the unit’s ancillary accommodation.

For illustrative purposes only.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 4 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

ACCOMMODATION

The Centre provides a total of 45,756 sq ft (4,250.72 sq m) of retail/ancillary accommodation, as set out in the accommodation schedule below:-

Address Tenant Accommodation Sq Ft Sq M

Ground Floor (GIA) 7,144 663.67 Unit 1 Iceland First Floor (GIA) 3,128 290.31 Total GIA 10,272 954.27

Unit 2 Peacocks Ground Floor (GIA) 8,613 800.15

Ground (NIA) 936„ 86.95 „ Unit 3 Card Factory ITZA„ „ 638 units 59.27units

Ground Floor Sales (GIA) 17,136 1591.93 „ Unit 4 Wilkinson First Floor Ancillary (GIA) 8,717 809.81 Total GIA 25,853 2,401.74

Kiosk Robert Guy Carney t/a Heel Bar Ground Floor (NIA) 193 17.93

Car Park Creative Car Parking 216 spaces (10,750)

Total Retail Area 45,867 4,261.03

CAR PARKING TENURE

The Blenheim Centre benefits from a „ The property is held long leasehold from the 216 space car park situated over three levels and Mayor and Burgess of the London Borough of operates on a phone and pay basis. The pricing Bromley for a term of 125 years from 12th August tariff is as follows:- 2010 at a Peppercorn rent.

The tenant can make structural alterations and Up to 2 hours £1 erect new buildings, subject to the consent of Up to 3 hours £2 the landlord, not to be unreasonably withheld. A copy of the headlease is available on the Up to 4 hours £3 marketing website. 4 hours+ £8

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 5 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

TENANCIES

The property is let in accordance with the Tenancy Schedule set out below. The current total gross income is £491,000 per annum exclusive, which nets down to £443,067 per annum exclusive after deduction of shortfalls. The average weighted unexpired lease term is approximately 6.68 years.

All of the leases are let on standard effectively Full Repairing and Insuring terms. Outgoings are recovered by way of a comprehensive service charge.

Current Rent Rental Value Tenant Name Lease Start Expiry Date Next Review Break Clause (pax) (pax) EPC Rating Comments

£133,500„ Iceland Foods Limited 14/01/2008 13/01/2023 14/01/2018 £125,000 (£13) D80

No notice served from L/L due to Peacock Stores Limited „ 25/08/2000 24/08/2015 . . £85,000 £112,000 C67 (Guaranteed by Peacocks Stores Ltd) (£13 per sq ff) potential development options.

Rent is inclusive of service charge (£4,653) and insurance (£380). Rolling Sportswift Ltd t/a Card Factory 14/05/2013 13/05/2016 . . £12,000 £22,000 C69 (£35 Zone A) mutual breaks on 1 months notice. The lease is excluded from the L&T Act 1954.

£225,000 Wilko Retail Limited 30/05/2008 29/05/2023 30/05/2018 £225,000 (£8.70) C67

Rent review is currently outstanding and Robert Guy Carney 01/03/2010 28/02/2030 01/03/2015 01/03/2017 (T) £6,000 £7,000 F145 the likely settlement will be at £7,000.

Rent is inclusive of service charge Star Park Management (No 2) If 25% of floor (£42,900). A turnover rent is payable 29/04/2014 29/04/2029 29/04/2019 £38,000 £38,000 Limited space not trading of 50% of the sum by which the gross annual turnover exceeds £80,000.

Totals £491,000 £537,500

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 6 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

RENTAL VALUE

It is our opinion that the estimated rental value as of today’s date would lie in the region of £536,500 per annum exclusive, based on the rental values set out in the tenancy table.

Our client has received a rental offer from a national operator of „ £15 per sq ft for an amalgamation of the Peacocks and Card Factory demise, which would result in a substantial increase to the rent passing and rental tone.

In terms of Zone A evidence, Unit 2 Colman House has been let to an independent restaurant operator on a new 20 year lease from January 2015 at a rent of £20,000 pax, devaluing to a Zone A rent of £39 per sq ft.

157 High Street (Shoe Zone) was subject to a rent review from August 2014, where the agreed rent of £24,000 pax devalued to £40 Zone A.

116 High Street (Ladbrokes) was a lease renewal effective March 2015 at „ a rent of £27,000 pax, which reflected a Zone A rent of £34.50 per sq ft.

SERVICE CHARGE

In accordance with the lease terms, a detailed service charge is in place with the service charge year ending in August.

The budget for the year ending 31/08/2016 is £269,308.92. The service charge is apportioned on a weighted area basis. Audited accounts for year ending 2014 and 2015, together with the budget for 2016 are available from this office.

The current shortfall relates to the Car Park lease where the service charge shortfall is currently £42,900.59 pa. A number of repairs have been carried out on the car park over 2015 and 2016 and further details are available on request. In addition, the lease of Unit 3 (Card Factory) is inclusive of service charge and insurance resulting in a shortfall of £5,033.

PLANNING

The property has an open A1 retail consent including food.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 7 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

ASSET MANAGEMENT INITIATIVES

It is our opinion that the asset offers a number of initiatives to increase value as follows:-

The ability exists to amalgamate Peacocks and Card Factory and extend backwards to create an 11,500 sq ft store, „ or alternatively, create two large units. Offers and expressions of interest have been received, and further details are available from this office. This would serve to increase the rental value and rental tone across the scheme, given the paucity of large units.

Investigate car park development and potential to add lightweight floors for a residential development. Initial surveys suggest that the structure is capable of accepting the increased loads generated by a lightweight, vertical extension above the top deck. This is subject to further investigation and a report is available to view on the data site.

COVENANT STATUS

The salient covenant information on the tenants can be set out in the table below:-

Tenant Date Total Turnover Pre-Tax Profits Net Worth Equifax 2015 (£000) (£000) (£000) Score

Iceland Foods Ltd 27/03/2015 £2,682,000 £159,000 £710,000 A - Excellent

Peacocks Stores Limited 01/03/2014 £324,874 £58,471 £90,545 A - Excellent

(Peacocks Stores Limited is now a wholly owned subsidiary of The Edinburgh Woollen Mill Group).

Wilko Retail Limited 31/01/2015 £1,444,563 £5,496 £160,898 B – Very good

Sportswift Limited t/a 31/01/2015 £336,676 £62,320 £58,862 A - Excellent Card Factory

Star Park Management 30/03/2014 N/A N/A N/A F – Very poor (No 2) Limited

VAT EPC

The property is elected for VAT purposes and it is Energy Performance Certificates can be provided anticipated that the sale will be treated as a Transfer of on request. The ratings are set out in the tenancy a Going Concern (TOGC). schedule.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 8 INVESTMENT CAR RENTAL SERVICE ASSET MANAGEMENT COVENANT FURTHER CONDITIONS LOCATION RETAILING GOAD SITUATION DESCRIPTION ACCOMMODATION PARKING TENURE TENANCIES VALUE CHARGE PLANNING INITIATIVES STATUS VAT EPC PROPOSAL INFORMATION

PROPOSAL

We are instructed to seek offers in excess of £6,000,000 (six million pounds), subject to contract and exclusive of „ VAT for the benefit of the long leasehold interest in the „ subject property.

A purchase at this level would reflect the following yield „ profile after allowing for purchaser’s costs of 5.8%:-

Contracted net initial yield 6.98% Deemed net initial yield 7.42% assuming our opinion of rental value on the Peacocks Reversionary yield 8.47% Equivalent yield 7.95% True equivalent yield 8.35%

CONTACT Philip Hay Matthew Coates 020 7637 7100 020 3716 0501 [email protected] [email protected]

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation

DESIGNED BY TCC to this property. JC0070. September 2015.

BLENHEIM CENTRE, PENGE, LONDON SE20 8RW LONDON RETAIL INVESTMENT FOR SALE 9