Freehold Reversionary Retail Investment. 54, 55 and 56 South Street Dorchester Dorset DT1 1DQ. September 2012

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1 54, 55 and 56 South Street Dorchester Dorset DT1 1DQ September 2012 Somerset House 18 Canynge Road Clifton Bristol BS8 3JX F Hartnell Taylor Cook LLP is a Limited Liability Partnership registered in England and Wales OC Offices in London, Bristol, Plymouth Hartnell Taylor Cook LLP is Regulated by RICS

2 INVESTMENT SUMMARY LOCATION Freehold multi-let retail investment. Dorchester benefits from an affluent residential population. Prime pedestrianised pitch. Let to three strong national multiple retailers. New letting to Phones 4U Limited establishes reversionary rental evidence. Asset management opportunities. We are instructed to seek offers of 2,050,000 (Two Million and Fifty Thousand Pounds), representing a net initial yield of 6.5% and a reversionary yield of 7.22%. Dorchester is the administrative centre for the County of Dorset, situated some 20 miles west of Poole and 8 miles north of Weymouth. Dorchester is an attractive historic market town with literary connections, making it an important tourist destination. The town s economy is further improved from an affluent catchment population of over 120,000 within 20 km of the centre (1994 estimate). Dorchester benefits from good road communications situated on the A35 trunk road which links Bridport to the west with Poole and Bournemouth to the east. The A37 links with Yeovil to the north and the A354 provides direct access to Weymouth to the south, and Salisbury to the north east. The Weymouth Relief Road, the southern section of the A354 opened in March 2011 and provides much improved access and journey times between Weymouth and Dorchester. The centre of Dorchester will also benefit from Brewery Square. The former Eldridge Pope Brewery is being developed by Resolution Property in joint venture with Waterhouse to provide a 100m mixed use scheme comprising 600 homes, 192,000 sq ft of shops, two hotels, a cinema, health club and spa, art centre and theatre and a new train station. The 11.5 acre site is located to the south of the main retailing pitch with tenants already including Hobbs, Café Rouge, Pizza Express, Premier Inn, Wagamama, Odeon and more recent lettings have been agreed with Carluccio s and Zizzi. The Co-operative Estates Page 1

3 In addition, the redevelopment of the Charles Street car park to the south of South Street will improve the retail offer, and attractiveness of Dorchester as a retailing destination. Phase I has commenced with the construction of district council offices, county council library and adult learning centre. The proposed mixed use retail development, Phase 2 has yet to commence and the developer is currently seeking funding. SITUATION The subject property occupies a prominent site on the prime west side of South Street, Dorchester s main pedestrianised retailing pitch. Dorchester is a strong retail destination which is supported by a wealth of major retailers including Marks & Spencer, Boots, New Look, H Samuel, Monsoon, W H Smith, White Stuff, Trespass and Tudor Arcade almost opposite the subject property is anchored by a Waitrose Supermarket. DESCRIPTION The property comprises a mid-terrace block of traditional brick construction arranged as three retail units on ground floor with ancillary space at first floor above under a flat roof. The property sits between Boots and Robert Dyas, with nearby occupiers including The Works, Costa Coffee, The Carphone Warehouse, Whittard of Chelsea, Clarks Shoes and W H Smith. The Co-operative Estates Page 2

4 TENANCY SCHEDULE Address Tenant GF Sales ITZA Term From Reviews Expiry Break Rent ERV 54 South Street Holland & Barrett Retail Group * 1, yrs 20-Jan yrs 19-Jan ,000 49, South Street Phones 4U Ltd yrs 02-Jul yrs 01-Jul Jul ,000 51, South Street Everything Everywhere Ltd 1, yrs 30-Apr yrs 29-Apr Apr ,000 54,500 Property Total 1, , ,800 * On assignment from Clinton Cards (Essex) Limited. TENURE Freehold. The Co-operative Estates Page 3

5 COVENANTS Holland & Barrett Holland & Barrett is the UK s leading retailer of vitamins, minerals and Herbal supplements and trades from over 620 outlets throughout the United Kingdom. More information can be found on their website Phones 4U Limited Phones 4U began trading in 1996, when it was part of the Caudwell Group, founded in Currently owned by private equity firm BC Partners, who acquired the business in Phones 4U is now one of the leading independent mobile phone retailers on the high street. More information can be found on their website Everything Everywhere Everything Everywhere is the UK s largest communications company, providing mobile and fixed broadband communications services to more than 27 million customers through the Orange and T-Mobile brands. Everything Everywhere employs more than 15,000 people and operates over 720 retail stores across the UK. More information can be found on their website Experian credit check gives all the above tenants a rating of A - very low risk (confidence). The Co-operative Estates Page 4

6 Holland & Barrett Retail Group Clinton Cards (Essex) Limited 30/09/10 30/09/09 30/09/08 01/08/10 02/08/09 03/08/ Turnover 275, , ,303 Turnover 336, , ,450 Pre-tax Profit 47,716 41,161 46,284 Pre-tax Profit 12,239 13,335 (22,273) Net Worth 91,532 93,441 75,736 Net Worth 19,610 10,508 37,720 Phones 4U Limited Everything Everywhere Limited 31/12/10 31/12/09 31/12/08 31/12/11 31/12/10 31/12/ Turnover 746, , ,441 Turnover 6,784,000 5,298,000 3,020,381 Pre-tax Profit 87, ,867 Pre-tax Profit -113,000-72, ,765 Net Worth 205, ,076 64,303 Net Worth 2, ,000-38,692 RENTAL VALUE Phones 4U Limited has signed a new lease and recently taken occupation of their unit, and are paying a rent equating to ITZA. The unit was not formally marketed, there were two national retailer under-bidders, and Phones 4U Limited received only a 3 month rent free as incentive. Accordingly our ERV is based on a Zone A of The Co-operative Estates Page 5

7 PROPOSAL We are instructed to secure offers of 2,050,000 (Two Million and Fifty Thousand Pounds) representing a net initial yield of 6.5% after costs of 5.8% and a reversionary yield of 7.13% based on our ERV of 154,800 per annum. VAT The property is registered for VAT and VAT is payable on the purchase price. PROPERTY CONSIDERATIONS Affluent residential population. Attractive market town. Multi-let freehold retail investment. Open market letting establishes reversionary rental evidence. Opportunity to regear leases and negotiate out break clause. Chance to break up and sell individual properties. The Co-operative Estates Page 6

8 VIEWINGS AND ENQUIRIES For further information or to arrange an inspection of this property, please contact. Ian Lambert BSc MRICS Partner Tel: Hartnell Taylor Cook LLP Somerset House 18 Canynge Road Clifton Bristol BS8 3JX Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, 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 intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn; Hartnell Taylor Cook LLP is a Limited Liability Partnership registered in England and Wales OC The Co-operative Estates Page 7

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