LONG INCOME FREEHOLD CAR PARK INVESTMENT NCP LEE CIRCLE CAR PARK LEICESTER LE1 3RE INVESTMENT SUMMARY • Substantial freehold car park investment • Located within the inner ring road in Leicester City Centre • Arranged over 7 decked levels with 1,070 car parking spaces and ancillary retail accommodation at ground floor level • Total site area extending to 1.81 acres (0.73 ha) • Fully let on a overriding lease (including NCP all ancillary retail accommodation) to LEE CIRCLE National Car Parks Limited from 19th CAR PARK June 2002 until 28th May 2037 providing 18 years unexpired • Current passing rent £296,632 per annum reflecting a very low passing rent of £277 per space • The lease benefits from annual rental uplifts in line with RPI (subject to a collar and cap of 1.5% & 5% per annum) with the next uplift due in June 2020 • The large site area provides excellent long term redevelopment opportunities within an area which has seen an increasing residential massing • Offers sought in excess of £5,300,000 (Five Million and Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.25% after allowing for purchaser’s costs of 6.60% A60 LOCATION A6097 A610 A52 A1 Leicester is located in the East Midlands, approximately 26 miles (42 km) south A6514 of Nottingham, 32 miles (51 km) from Derby and 45 miles (73 km) to the north east of Birmingham. A46 A515 A38 NOTTINGHAM The city has an estimated population of over 400,000 residents. It is the largest city in the East DERBY Midlands and the 11th largest city in the UK. The city attracts over half a million workers on a daily A50 A453 M1 basis and there are over 1.2 million workers within commutable distance. A607 A518 A50 NCP LEE The 2018 Good Growth for Cities Index ranks Leicester as the 10th best city in the UK to live and CIRCLE work, ahead of regional neighbours Birmingham, Nottingham and Derby. The City was also named CAR PARK A606 as the best place in the country for tech start-ups in the Tech Nation Report and came second in STAFFORDSTAFFORD A42 the study completed by Start Up Britain as one of the best places to start a business. A46 A38 A607 A34 A515 A460 A5192 A46 M6 TOLL LICHFIELD A50 A444 A5 A452 LEICESTER A47 Leicester boasts 3 large universities; There are two successful major sporting clubs; A461 University of Leicester, De Montfort University Leicester City Football Club and Leicester and Loughborough University which Tigers. The former having secured the A34 M42 A6 combined have a population of approximately premiership title in 2015/16 and the latter 10 M69 66,000 students (approximately 50% of times English Rugby Union champions. Both whom live in the city centre). of these clubs have provided major marketing A38 A5 A427 boosts to the city over recent years. M1 A45 A38 A41 M5 COVENTRY M6 A426 BIRMINGHAM A14 A435 A508 A43 BURLEYS WAY ORCHARD ST WHARF ST N NCP LEE ST MATTHEWS WAY CIRCLE CONNECTIVITY CAR PARK GARDEN ST JUBILEE RD ROAD RAIL ABBEY ST OLD MILTON ST WHEAT ST Leicester provides the juncture of the north-south Midland BYRON ST Leicester city centre is situated approximately 4 miles north east of Junction 21 of the M1 motorway. J21 is also the Mainline and east-west Cross Country Route. MANSFIELD ST CRAFTON ST W FLEET ST LEE ST interchange for the M1 and M69 and therefore provides easy The Midland Main Line provides direct services to London in access to the West Midlands, north east and the south east. approximately 1 hour as well as to Derby, Nottingham, Sheffield GLADSTONE ST Junctions 21a and 22 of the M1 lie to the west and north west and Leeds. The cross country route links to Peterborough and ERSKINE ST of the Leicester and provide alternative access routes to the Cambridge to the east and Birmingham to the west. CLYDE ST CLYDE WHARF ST S north of the city via the A50. ST JAMES ST HILL ST BELGRAVE GATE CLARENCE ST AIR MORLEDGE ST The A6 to the north of the city provides access to Loughbrough WIMBLEDON ST ANN ST and Derby to the north west and the A46 links to Nottingham East Midlands Airport is approximately 19 miles north west of HUMBERSTONE GATE via the A606 and A52 directly to the north. the city. With passenger numbers of approximately 4.5 million (2015), the airport is the 11th busiest airport in the UK by passenger traffic. SITUATION DESCRIPTION The property is situated immediately adjacent to The property comprises a broadly semi-circular site with other car parks within the city which adopt 24 hour rates Leicester’s main shopping district in an area known surface car parking to the front and a 7 level multi-storey car as follows: as St Georges North. park to the rear. The multi-storey element is arranged as a full Granby Halls - £15 ramped deck system providing a single point of access and Haymarket Shopping Centre and Bus Station are within a exit. In total there are 1,070 car parking spaces. Haymarket - £18 (2 x 12 hour stays) 2 minute walk to the east of the property and Highcross shopping centre is accessible on foot in under 5 minutes. Within the multi-storey element there is a range of ancillary St Nicholas Circle - £20 accommodation including a vacant former supermarket. All of Distances to key city locations are as follows: Highcross Shopping Centre - £20 the accommodation (including vacant accommodation) falls within the tenant’s demise. Welford Road - £22 1. 0.2 MILES from Haymarket Shopping Centre Parking within Lee Circle NCP costs £3.00 for up to 24 hours Rutland Centre - £25 2. 0.3 MILES from Highcross Shopping Centre within the multi storey element and £8.00 for 24 hours within the surface element. This represents a substantial discount to East Street - £25 3. 0.6 MILES from Leicester Railway Station 6 4. 1.0 MILES from Leicester Tigers Rugby Club 5 4 5. 1.4 MILES from the King Power Stadium 3 6. 1.6 MILES from the University of Leicester 2 1 TENANCY TENURE COVENANT The property is let in its entirety to National Car Parks Freehold. NATIONAL CAR PARKS LIMITED Limited on full repairing and insuring terms from 19th June 2002 to 28th May 2037 with no break options. NCP is the UK’s largest and longest standing car park This provides approximately 18 years unexpired term. SITE operator with over 150,000 spaces across more than 500 car The current passing rent is £296,632 per annum reflecting a parks in towns, cities, airports and railway stations. very low rent of £277 per space. The site extends approximately 1.81 acres (0.73 ha). The company was founded in 1931 and the NCP name was The lease is subject to annual rental uplifts in line with RPI The following plan shows the approximate site boundaries. adopted in 1999. In August 2017, the business was sold to (subject to a collar and cap of 1.5% & 5% per annum). The Park 24, a listed Japanese strategic buyer and Development 2019 uplift has already been agreed (and is reflected in the Bank of Japan Inc., a Japanese government-owned financial quoted passing rent), next uplift is due on 29th June 2020. institution. The Development Bank of Japan is 100% owned The entire site including all ancillary accommodation is by the Government of Japan. demised to the tenant. The tenant has an option to renew at expiry for a term of 20 years. Prior to the NCP acquisition, Park24 was already a major parking operator with 1,043,570 spaces in over 19,000 sites, The tenant has sub-let a ground floor suite, comprising across 8 countries in the southern hemisphere. It is widely 4,940 sq ft, to Fabric Warehouse for £17,000 per annum reported that the acquisition of NCP was to enable Park 24 from 4th December 2004 until 3rd December 2024 with a to continue its international growth by expanding into the review and break option on 4th December 2019. European market. National Car Parks Limited’s last three years accounts are summarised as follows: Individual Individual Individual 31/03/2017 25/03/2016 27/03/2015 (000’s) (000’s) (000’s) Map is for indicative purposes only Turnover £211,461 £202,703 £198,736 Profit / (Loss) Before £24,793 £28,001 £14,859 Taxes Tangible Net Worth £210,138 £186,897 £156,973 Net Current Assets £190,832 £169,489 £157,852 (Liabilities) DEVELOPMENT In recent years, Leicester has seen a number of major Other major developments in the near vicinity include Charles • At least 50,000 sq m of office development Street Buildings’ £47m development of hotels and offices at a development projects completed as well as significant local • 54% of residential development within the city will take infrastructure improvements. site on Vaughan Way (approximately 0.8 miles south west of the subject property) on the opposite side of Vaughan Way to place within the Strategic Regeneration Area To the east of the city centre (approximately 0.8 miles east the John Lewis store in High Cross Shopping Centre. • Potential for leisure uses within the St George’s North of the subject property), a significant regeneration project is area of the city underway known as Leicester Waterside which ultimately will In addition, Developers LCL have plans for a significant see 150 acres of poor quality industrial transformed into a residential led development opposite the subject property Outlined below is a plan showing the significant residential residential led neighbourhood.