Leeds, The Albions, 50/54 Albion Street, LS1 6AD. Prime Freehold Retail & Leisure Investment

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1 Leeds, The Albions, 50/54 Albion Street, LS1 6AD Prime Freehold Retail & Leisure Investment

2 INVESTMENT SUMMARY Leeds is one of the premier regional shopping centres with a catchment population of 1.5 million people and ranks 3rd in the hierarchy of UK Promis Centres. Prime retail investment sale with consented residential conversion opportunity. Commercial element principally let to the strong covenants of Sainsbury s and Patisserie Valerie with a WAULT of 10+ years. Planning consent obtained for conversion of second and third floors to provide 8 residential units. Offers in excess of 5,640,000 showing an attractive net initial yield of 6% on the commercial element and a site value for the proposed permitted residential accommodation of 350,000 net of Purchaser s costs of 5.8%. Proposed residential entrance LEEDS Leeds is one of the most important retail and commercial centres in the UK, situated approximately 25 miles south west of York, 45 miles east of Manchester and 200 miles north of London. The City is strategically close to the M1, M62 and A1 motorways. Regular train services from London Kings Cross link the City to London in 2 hours and 15 minutes. The retailing provision in Leeds is estimated to be in excess of 2.2 million square feet. This has been further enhanced by the opening of Land Securities Trinity Centre in March 2012, which opened to great acclaim and has brought a significant number of new retailers to the City. In its first year over 22 million people passed through the Centre. The City s primary catchment population is approximately 1,480,000 (PROMIS) ranking the City 3rd nationally by this measure. The primary shopping population is over 660,000 ranking it 4th out of the PROMIS centres. This population is further enhanced by the City s 60,000 resident students. Major stores for Marks and Spencer, Harvey Nichols (their first outside of London), House of Fraser and Debenhams trade in the City Centre and a new flagship store for Primark opened in December sees the proposed opening of the only major department store missing from Leeds when a full range John Lewis is expected to anchor Hammerson s Victoria Gate Shopping Centre. LOCATION The property occupies an extremely prominent corner location at the junction of Albion Street and Albion Place, just off Commercial Street. It sits directly opposite The Pinnacle, a substantial 19 storey mixed use office and retail building home to major retailers such as Next, Superdrug and Joy. Also nearby is a recently extended store occupied by Boots. In addition Albion Place is now a popular leisure destination with Pizza Express, Byron and Bills all represented. THE PROPERTY The property is a Grade II Listed Building and comprises three retail units at ground floor with ancillary storage at first floors. The basement provides a bar/restaurant whilst the second and third floors are vacant. The accommodation is provided as follows:- Address Ground ITZA Basement First Floor Second Floor Third Floor The Basement (The New Conservatory) 50 Albion Street (To be Oliver Bonas) 50A Albion Street (Patisserie Valerie) 54 Albion Street (Sainsbury s Local) Vacant Offices TOTAL 1,750 sq ft 163 sq m 780 sq ft 72.5 sq m 5,518 sq ft 513 sq m (GIA) sq ft 77 sq m 765 sq ft 71 sq m 2,330 sq ft sq m ,840 sq ft 171 sq m 4,860 sq ft (452 sq m) - 5,518 sq ft 513 sq m (GIA) 3,435 sq ft (319 sq m) 2,485 sq ft (231 sq m) (GIA) 2,485 sq ft (231 sq m) (GIA) 1,948 sq ft (181 sq m) (GIA) 1,948 sq ft (181 sq m) (GIA) These areas have been provided by our clients. Copies of plans of each level are available for inspection on our web site.

3 RESIDENTIAL OPPORTUNITY Planning consent has been obtained for the conversion of the second and third floors to provide 7 one bedroom apartments and 1 two bedroom apartment. Copies of the planning permission and plans are available on our web site. We believe that current residential sales values for these types of apartments are in the region of 250 to 300 per square foot. This would show completed sales values of circa 115,000 to 135,000 per apartment. City centre dwelling is a fast growing and attractive concept and we have little doubt that these values will be surpassed by the time the apartments are offered for sale. TENURE Freehold. TENANCIES Terms have been concluded to take a surrender of the Lease of 50 Albion Street from the existing tenant, Mr Simms Sweet Shop. The surrender long stop date is 18th January 2016 or earlier by agreement. An Agreement for Lease has been entered into with Oliver Bonas to take a new lease on the premises. At completion therefore the investment will show the following lease profile. Address Tenant Terms Rent pa The Basement 50 Albion Street Oliver Bonas 50A Albion Street TNC Café Bars & Music Limited (Trading as The New Conservertory) Patisserie Holdings Limited 54 Albion Street Sainsbury s Supermarkets Limited 10 years from 25th October 2012 expiring 24th November 2022 with a rent review due in October New Lease agreed for 10 years from 29th January 2016 with 5 yearly upward only rent reviews. 10 years from 7th May 2010 expiring 6th May 2020 with an outstanding rent review due from May years from 5th June 2015 expiring 4th June 2030 subject to 5 yearly rent reviews in line with RPI capped at 3% and collared at 1.5%. 23,000 or 7% of turnover* 92,500 62, ,500 Total Income 335,500 *For the last year the tenant paid a total rent of 50,000 to include an additional turnover rent of 27,000

4 RENTAL COMMENTARY The two recent lettings to Sainsbury s and Oliver Bonas show headline rents equating to 110 psf Zone A and 107 psf Zone A respectively. Premises in an inferior location on Bond Street were let in May 2015 at a rent equating to over 130 Zone A. In addition we understand the quoting rent on the vacant unit on the market opposite the property equates to over 160 Zone A and the landlord s agents report positive interest. A letting at or close to this figure will show a substantial reversion on the subject premises. INVESTMENT COMMENTARY Most recently (May 2015) the adjoining unit occupied by Starbucks has been sold at a net initial yield of 4.75% showing exceptional demand for prime investments in the City. The passing rent of this property equated to approximately 230 zone A. THE TENANTS Sainsbury s Supermarkets Limited (Company Number ) Sainsbury s is one of the UK s leading food store operators currently accounting for approximately 17% of the UK s total grocery market. The company was founded in 1869 and currently trades from over 1,200 supermarkets and convenience stores throughout the country and employs around 161,000 people. Sainsbury s Supermarkets Limited have been given a Creditsafe rating of 73 Very Low Risk and have reported the last three years results:- 15/03/ /03/ /03/2012 Sales turnover 23,919,000,000 23,290,000,000 22,288,000,000 Pre Tax Profit 810,000, ,000,000 1,114,000,000 Shareholder Funds 4,860,000,000 4,771,000,000 4,659,000,000 Patisserie Holdings Limited (Company Number ) Patisserie Valerie is a leading branded café and casual dining restaurant offering cakes, pastries, snacks and meals from its 138 stores throughout the UK. Its first café was opened in The Group has operated as Patisserie Acquisition Limited (formerly Patisserie Holdings Limited) since 2006 and grown from 8 stores generating revenues of 5m in 2006 to 148 stores generating 76m in In that year, a new holding company was incorporated, Patisserie Holdings plc which then merged with the Group and listed on the Alternative Investment Market (AIM). More information on the company can be found on their web site Patisserie Holdings Limited have been given a Creditsafe rating of 53 Low Risk and have reported the last three years results: 30/09/ /09/ /09/2012 Sales turnover 76,000,000 60,112,000 49,511,000 Pre Tax Profit 12,100,000 4,707,000 5,895,000 Shareholder Funds 27,212,000 9,453,000 6,173,000

5 Oliver Bonas Limited (Company Number ) Oliver Bonas make and sell an eclectic range of fashion, jewellery, homewares and gifts. Their first shop opened in Fulham in 1993 and there are now 42 stores in major locations across the UK including Bristol, Brighton, Cambridge, Oxford, Reading, Tunbridge Wells and numerous stores in affluent London locations, as well as their online store. More information on the company can be found on their web site Oliver Bonas Limited have been given a Creditsafe rating of 46 Moderate Risk and have reported the last three years results:- 30/11/ /11/ /11/2012 Sales turnover 30,265,000 23,263,000 18,697,000 Pre Tax Profit 2,199,000 1,183,000 1,114,000 Shareholder Funds 3,700,000 2,750,000 1,884,000 TNC Café Bars & Music Limited (Company number ) The New Conservatory Club has been long established in Leeds and is a favourite venue for locals to enjoy good food and live music. More information on them can be found on their web site TNC Café Bars & Music Limited have been given a Creditsafe rating of 57 Low Risk however, no further financial information is available. VAT It is anticipated the sale will be treated as a Transfer of a Going Concern (TOGC). However should this not be the case, the property has been elected for VAT and therefore VAT will be payable on the purchase price. EPC As the building is Listed there is no requirement for EPCs. INVESTMENT HIGHLIGHTS The property offers a number of unique features:- An opportunity to purchase an entire block of properties in an extremely prominent and busy location in the heart of what will become the Northern Powerhouse. The opportunity to undertake a consented city centre residential scheme at a time when this concept is showing huge growth potential. Secure rental income from Oliver Bonas and Sainsbury s Supermarkets Limited for over 10 years term certain. Patisserie Valerie are trading well and have indicated a willingness to consider a re-gear of their lease to take a longer term. The New Conservatory Bar is clearly trading extremely well, having paid our clients significant turnover rent during each of the last three years.

6 Leeds, The Albions, 50/54 Albion Street, LS1 6AD Prime Freehold Retail & Leisure Investment We are seeking offers in excess of 5,640,000 for the freehold interest, subject to and with the benefit of the leases as set out above and allowing a percentage of the end sale value for the residential accommodation. After normal Purchaser s costs of 5.8% this will show a net initial yield of 6% on the commercial element. CONTACTS For more information concerning the sale please visit our web site Otherwise please contact: Andrew Hoffbrand andrew@hrh.uk.com T: M: Richard Ward richard@hrh.uk.com T: M: Jeremy Lovell Jeremy@hrh.uk.com T: M: HRH, 3rd Floor, Portland House 4 Great Portland Street, London W1W 8QJ T: F: DISCLAIMER NOTICE: Whilst every care is taken in the preparation of these particulars Harmer Ray Hoffbrand LLP, any joint agents involved and the vendor take no responsibility for any error, mis-statement or omission in these details. Measurements are approximate and for guidance only. These particulars do not constitute an offer or contract and members of the Agent s firm have no authority to make any representation or warranty in relation to the property. November BILLS RESTAURANT PROPOSAL