Prime Retail Warehouse Investment Opportunity TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY INVESTMENT CONSIDERATIONS Easily Prime Flexible Newly location accessible planning in one of the top retail via refurbished New consent warehouse destinations unit of in the country; 15 year Junction 7 permitting lease from of the clothing sales sq ft Hedge End July 2015 45,028 Southampton with a break at M27 G.I.A. year 10 Let to the 5A1 Benefits covenant of Offers are £742,846.50 from the strong TJX UK sought in excess of critical mass the location per annum, provides, with retailers in the reflecting 5.5% net initial yield, vicinity including a relatively low assuming purchaser’s One Marks & Spencer, costs of . This reflects £16.50 of TK Maxx’s 5.8% Sainsbury’s, Currys PC per sq ft new concept £12,766,000 stores to include World Megastore and subject to contract and Next Home & TK Maxx and HomeSense exclusive of VAT. Garden PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY M25 LOCATION M40 SWINDON Southampton is a major retail, leisure and commercial city in the south east of the UK, 76 miles south west of M4 M4 London, 20 miles west of Portsmouth and 30 miles north M25 east of Bournemouth. LONDON Hedge End is a dominant regional out of town retail pitch, M3 located 4.8 miles to the east of Southampton city centre. It A338 A34 BASINGSTOKE is one of the most established retail warehouse locations in M25 the South of England. M3 The retail pitch is immediately located on the M27 A303 M3 A303 motorway at Junction 7, which links to Portsmouth, A3 A31 Southampton and the M3 motorway, 5.5 miles north west. A338 A34 As a result, it is an extremely accessible location, which is A303 A36 SALISBURY A31 A3 one of the reasons for its success as a retailing destination. WINCHESTER A36 M3 Southampton International Airport and Parkway rail station are A272 A272 A272 located 5 miles to the north west, at Junction 5 of the M27. A3 A354 A338 The airport serves almost 50 UK and European destinations, M27 with the passenger numbers approaching 2 million. The SOUTHAMPTON A3 (M) station provides a direct service into London Waterloo with the A31 M27 A27 fastest journey time of 1 hour and 11 minutes. CHICHESTER BRIGHTON A31 A338 PORTSMOUTH BOURNEMOUTH ISLE OF WIGHT PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY CATCHMENT AND DEMOGRAPHICS Southampton has a primary catchment population of 731,000 people and a shopping population of 433,000 people, ranking the city 18th and 17th respectively out of the top 200 PMA Retail Centres. There are 136,186 people living within a 10 minute drivetime of the subject property, extending to 672,224 people within a 20 minute drivetime. Within the 10 minute drivetime, social groups AB, C1 and C2 are represented at an index figure of 99,102 and 112 of the population (with 100 being the average), with the lowest social group; DE, relatively under-represented at 89. As a result of its retail dominance, the catchment population for Hedge End extends much further than a 20 minute drivetime and draws upon areas such as Winchester, Eastleigh, Fareham, parts of Portsmouth and even as far as Salisbury to the north east. Southampton ranks 17th for total in-store comparison retail expenditure available within the catchment area, being £2,008 million in 2015, far exceeding the PMA average of £924 million. Per capita in-store comparison expenditure is also above average at £2,749 compared to the PMA average of £2,600. PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY SITUATION The subject property is located in a prominent position on Tollbar Way, which links to the A3051 Botley Road, one of M3 the main routes leading to Southampton city centre to the A27 EASTLEIGH west. Tollbar Way links to the other retail warehousing in 14 the area to the south and to Junction 7 of the M2 via the 4 A314 Charles Watts Way. Opposite the subject property is M27 A335 Bradbeers Retail Park totalling 70,000 sq ft. Within Hedge End is a total of 750,000 sq ft of retail accommodation, as detailed further below. 4 HORTON HEATH ROWNHAMS 5 SOUTHAMPTON AIRPORT M27 A35 TK Maxx/ HomeSense A3057 A27 A35 A33 CITY OF SOUTHAMPTON A35 A3057 A3024 7 HEDGE END A33 A27 M27 A3024 8 A3025 PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY M A UN SE LL W HEDGE END AY Y RETAIL WAREHOUSING IN HEDGE END A W R M27 A B L L H O T T U Hedge End is an established and substantial retail O S E WH N ITE LA warehouse destination comprising approximately 750,000 S WA T Y S R TK MAXX / U H sq ft of retail accommodation. It is anchored by a 130,000 E L HOME SENSE B D M A MOORGREEN A H sq ft Marks & Spencer and a 105,000 sq ft Sainsbury’s O BRADBEERS S HOSPITAL R T Y O RETAIL PARK A situated adjacent to one another located off the A334 O W F R L L A E B Charles Watts Way. S BO N TLE U Y A ROA D M Y A W DR Hedge End Retail Park comprises 86,000 sq ft of bulky goods H U R MM T O A ND U B B RO O L AD TL L O E S accommodation occupied by DFS, Oak Furniture Land Y R O OA T WICKES E D N A L and SCS. There is a former Kiddicare unit which Ultimate T HEDGE END S R Y BO U Outdoors have taken a lease on and this unit totals 35,000 A T H PARK LE W Y E R O L R AD A B sq ft. Helping the critical mass of the location is a new Next B M L A L H O S T D Home & Garden of 86,500 sq ft, which is configured across OA R E K C 3 floors and a garden centre. Other retail warehousing O L includes a 39,500 sq ft Homebase and a Currys PC World HEDGE END TRADE PARK A334 AY Megastore of 45,033 sq ft adjacent to Marks & Spencer. W TS AT W S E L R A H Opposite the subject property is Bradbeers Retail Park where C tenants include Harveys, Carpetright, Bradbeers (the owners M27 B&Q of the scheme) and Burger King. This scheme totals 70,000 WAREHOUSE sq ft and has a bulky goods planning consent. There is also A334 a 105,000 sq ft B&Q on the A334 Charles Watts Way. SAINSBURY’S AND M&S 7 NEXT HEDGE END RETAIL PARK PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY DESCRIPTION The subject property comprises a former Wickes store, which The ground floor area is of 45,028 sq ft G.I.A. with a sales Car parking is located to the front of the unit and provides has been fully refurbished by the landlord to an effective shell area of 36,893 sq ft. Internally the unit has been fitted out 249 spaces, giving a ratio of 1 : 210 sq ft. As part of the and TK Maxx have fitted it out to their specification. It is one to TK Maxx’s specification, with the clothing range making refurbishment works, the landscaping has been reduced of the first few combined TK Maxx and HomeSense stores up circa 60% of the sales area and HomeSense; 40%. TK allowing excellent visibility from Tollbar Way. selling both the clothing and home ranges, which are divided Maxx occupy the left side of the unit, with HomeSense on the The total site area is 4.88 acres, giving a low site cover of 21.5%. separately internally. The refurbishment works incorporated: right of the customer entrance. Trading across the ground floor only, but there is sufficient eaves height to install a Access to the unit is via Tollbar Way and the property benefits ■ Overcladding of the roof and walls. For the roof, there is mezzanine, subject to planning. from separate access to the servicing area, which is located an Ashgrid system, 150 mm insulation quilt and 0.7 mm to the rear of the unit. thick outer steel panel, Plasticol coated. The external walls are clad with Kingspan Long Span KS1000LS, fully insulated to satisfy the minimum “U” valve requirement of the building regulations. ■ New glazed shop fronts and door sets to the south and west elevations. ■ Making good of existing floor and application of new screed. ■ The unit is fully sprinklered, with the existing sprinkler installation tank and all apparatus repaired, serviced, adapted and tested to suit the tenant’s requirement. ■ Car park reconfiguration, resurfacing and new car park lighting. ■ “Ram raid” bollards to the front entrance glazed screens. ■ New pedestrian footway to Tollbar Way. ■ Relandscaped. PRIME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY TENURE PLANNING The property is held freehold, as delineated below in red. The property was granted planning consent in October 2014 allowing TK Maxx to trade from the unit.