West Swindon Shopping Centre Unique Freehold Foodstore Investment Opportunity c. 69 years unexpired to Asda Stores Ltd West Swindon Shopping Centre Tewkesbury Way, Swindon Postcode Grid Reference SN5 7DL SU 11967 84482 05 Executive Summary 06 Location 07 Socio-Economic Profile 08 Situation 09 Swindon Foodstore, Retail & Leisure Provision 10 Description 12 Floorspace 12 Tenure 13 Tenancy 14 Covenant Information 14 Planning 15 Estimated Rental Value 16 Asset Management 16 Environmental Considerations 17 VAT 17 Proposal 17 Acquisition Structure 18 Full Tenancy & Sub-Tenancy Schedule 20 Contacts 2 West Swindon Shopping Centre | SWINDON West Swindon Shopping Centre is anchored by a c. 88,600 sq ft Asda foodstore and offers a further 34,337 sq ft of non food retail and service floorspace. SWINDON | West Swindon Shopping Centre 3 Swindon's food provision has a strong geographical bias to the north and east meaning the subject property benefits from very limited competition within a 15 minute drivetime. 4 West Swindon Shopping Centre | SWINDON Executive Summary ■■ Swindon is a major commercial ■■ The lease is subject to 5 yearly open centre in the county of Wiltshire market reviews and the rent geared to a strategically positioned in the heart of low proportion of ERV (57.2% weighted the M4 corridor approximately 128 km across the income). (80 miles) west of London and 48 km ■■ We consider that the 2006 review (30 miles) east of Bristol. settlement reflecting £18.50 psf on the ■■ The town's primary catchment is foodstore (providing c. 71% of the total estimated to be in the region of 467,000 income) represents a very affordable level people and significant further residential and low base for future rental growth. We development has been targeted for the believe current market value to stand in area in the medium term. the order of £24.00 psf. ■■ The West Swindon Shopping Centre is: ■■ The current lease structure represents –■ held Freehold an excellent opportunity to unlock –■ extends to around 13,038 sq m significant value moving forwards (140,353 sq ft) GIA through negotiations with Asda. –■ is anchored by a c. 88,600 sq ft Asda foodstore ■■ The entire property is let on an over- riding lease to Asda Stores Ltd producing Offers are sought in excess of an annual rent of £1,397,275 pa and has £35,500,000, subject to contract and 69 years remaining on the lease. exclusive of VAT, for the Freehold interest in this property. This reflects an initial capital payment of £28,400,000 together with a further 'top-up' payment at settlement of the forthcoming review in December 2011, based on an initial yield of 4.65% and purchasers costs of 5.8%. SWINDON | West Swindon Shopping Centre 5 Location Swindon is a major commercial centre located in the county of Wiltshire, in south east England. Strategically situated in the M4 Corridor, the town is approximately 21 km (13 miles) south east of Cirencester, 48 km (30 miles) east of Bristol, 64 km (40 miles) west of Reading and 128 km (80 miles) west of London. A429 CHELTENHAM BICESTER A44 M1 The town benefits from excellent communications with Junctions GLOUCESTER A40 15 and 16 of the M4 Motorway located only around 6.5 km (4 miles) M40 A41 A48 M11 to the south and 6 km (3.75 miles) south west of the town centre A417 respectively. Other major arterial routes in the area include the OXFORD A419 CIRENCESTER A419 to Cirencester and Stroud, the A420 to Oxford and the A436 A420 M25 A449 to Marlborough. SWANSEA A433 A420 M25 A429 A419 M48 DIDCOT M40 NEWPORT Swindon benefits from strong rail links with direct services to A470 SWINDON M4 M49 A46 London Paddington and Bristol Templemeads offering fastest A34 A48 SLOUGH M4 journey times of around 56 and 40 minutes respectively. CARDIFF M32 A350 LONDON CHIPPENHAM BRISTOL A346 M4 READING CLEVEDON A4 BRACKNELL Primarily due to these exceptional transport links, Swindon boasts a NEWBURY M3 BATH M5 M25 very strong commercial base with manufacturing and distribution WESTON-SUPER-MARE A38 A339 A33 making up the main employment sectors (nearly half) within the WOKING A3 A338 workforce. Major employers in the town include Honda, BMW/ BASINGSTOKE A37 GUILDFORD Mini, Motorola, Dolby Labs, Zurich Financial Services, Nationwide ANDOVER M23 A361 A303 Building Society, British Telecom, Inland Revenue and WH Smith. A36 A31 A39 M3 BRIDGEWATER BARNSTAPLE SALISBURY WINCHESTER A303 TAUNTON SHAFTTESBURY A36 A361 EASTLEIGH A272 A350 A3 A358 A354 A338 A39 YEOVIL M27 A303 A386 SOUTHAMPTON A377 A31 WATERLOOVILLE A27 A30 M5 A259 BRIGHTON A37 PORTSMOUTH BOGNOR REGIS A35 A348 A30 LYME REGIS A35 EXETER DORCHESTER BOURNEMOUTH NEWPORT A376 A354 LAUNCESTON A386 EXMOUTH SwindonWEYMOUTH boasts an extensive primary A39 A388 A38 A30 catchment population in the region WADEBRIDGE TORBAY of 467,000 people and has been NEWQUAY A38 PLYMOUTH identified by the Government as a ST AUSTELL A390 major population growth area. KINGSBRIDGE TRURO REDRUTH 6 West Swindon Shopping Centre | SWINDON A30 A394 FALMOUTH PENZANCE 2009 HOUSEHOLDS BY ACORN GROUP 9.4 Flourishing Families 8.0 15.1 Secure Families 14.0 18.7 Blue Collar Roots 8.1 Socio-Economic Profile 5 10 15 20 2009 HOUSEHOLDS BY ACORN GROUP CARS OR VANS BY HOUSEHOLD (2001 CENSUS) Swindon has an urban population in the region of 9.4 155,000 people (Focus) and an extensive primary Flourishing Families 8.0 1 car or van catchment estimated to be in the region of 467,000 15.1 Secure Families 2 cars or vans people (Promis). The town has been identified by 14.0 18.7 the Government as a major population growth area Blue Collar Roots 0 10 20 30 40 50 and in 2007 a target of at least 35,000 new homes to 8.1 5 10 15 20 UK Swindon be constructed before 2027 was set. CARS OR VANS BY HOUSEHOLD (2001 CENSUS) Indeed based on this proposed development it has been forecast that there will be a significant increase in Swindon's urban population over 1 car or van A419 Swindon 5 minute contour this period to around 250,000 people (Gov UK). Swindon 10 minute contour 2 cars or vans GROUNDWELL INDUSTRIAL Swindon 15 minute contour Currently, according to CACI, approximately 77,953 people live within a PURTON 0 10 20 30 40 50 10 drivetime of the subject property and this figure increases to around HAYDON WICK SOUTH MARSTON GREENMEADOW UPPER STRATTON 166,802 people within a 15 minute drivetime. The statistics shown above UK Swindon A4311 give an indication as to the affluence and make-up of these inhabitants A420 SPARCELLS STRATTON ST MARGARET (10 minute drivetime). PEATMOOR CHENEY MANOR HILLMEAD LYDIARD MILLICENT SWINDON MIDDLELEAZE HAWKESWORTH TRADING ESTATE SHAW WESTMEAD WESTLEA DORCAN M4 BRIDGEMEAD GRANGE PARK A3102 A419 FRESHBROOK A4259 WOOTTON BASSETT BROOME MANOR A3102 WROUGHTON M4 A4361 CHISELDON A346 SWINDON | West Swindon Shopping Centre 7 Situation The West Swindon Shopping Centre is positioned approximately 3.2 km (2 miles) to the west of Swindon town centre, at the junction of Whitehill Way and Tewkesbury Way amongst the heavily populated residential suburbs of Toothill, Westlea, Eastleaze, Grange Park, Freshbrook, Shaw, Ramleaze, Middleaze and The Prinnels. The location has exceptional road communications with Junction 16 of the M4 only 2.4 km (1.5 miles) to the south west via the B4534 Whitehill Way and A3102 Great Western Way and the town centre easily accessible via Tewkesbury Way A3102 to the east. D A 4534 O B R E G Y A D I W Immediately adjacent to the subject R L B IL N H O E R IT R H A W property, on the western side of the N C Orbital Shopping Park C 5 L site, is the Local Authority owned SHAWRIDGE A N A419 G LEISURE CENTRE S T T E C W OR O Link Centre which incorporates K N Y T E A E O S W W B L N U IL A R H C Y E R Y T W I E 4 H S sports halls, a swimming pool, A C W Y E N 4 3 T 5 E 4 V B I Haydon Wick R theatre and library. To the north, on D A E L Upper Stratton W the other side of Whitehill Way, is the CORTON CRESCENT Stratton L Shawridge Leisure Park comprising IL EH IT St Margaret WHITEHALL WAY H W Moredon 34 a 6 screen Cineworld Multiplex 45 B RIV ENHALL ROAD B4 A 55 S Pinehurst 3 H I A4311 T N Cinema, Tenpin Bowling Alley, EW G KE T SB O Lower Stratton A420 UR N Y W W THE LINK CENTRE AY A ‘Village’ Hotel (DeVere) and three Y 6 restaurant units. Greenbridge Roughmoor Retail & Leisure Park B45 53 AY TEWKE TH W SBUR HEA Y WAY TON The food and non food offer at ROW B West Swindon Shopping Centre, TE A419 WKESBURY Shaw E RIV 3 together with the community and Y D ESA TOK W S AY BRUNEL leisure facilities combine to provide Westmead SHOPPING CENTRE WEST SWINDON an excellent District Centre and the SHOPPING CENTRE A 2 principal retail and leisure offer for 1 the area. 7 A3102 A4259 SWINDON M4 Toothill 16 A3102 8 A4361 M4 8 West Swindon Shopping Centre | SWINDON Swindon Foodstore, Retail & Leisure Provision Swindon’s catchment currently incorporates 8 foodstores of over 3,251 sq m (35,000 sq ft). The nearest store and only one within a 5 minute drivetime of the subject property is the J Sainsburys at Bridgemead around 1.2 km (0.75 miles) to the east.