RETAIL PARK. Freehold Retail Warehouse Investment OUT OF TOWN

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1 RETAIL PARK Freehold Retail Warehouse Investment OUT OF TOWN

2 Investment Summary Halifax is a major commercial centre in West Yorkshire with a district population of 192,405. The town benefits from good road communications being located 4 miles north of junction 24 of the M62. The property is prominently situated fronting Pellon Lane just north of its junction with the A58 Burdock Way, the inner ring road. A three unit retail park totalling 33,612 sq. ft. (3, sq.m) with 123 car parking spaces. Open A1 non-food planning permission. Currently producing an income of 353,125 pa. AWULT is 8.53 years or 7.86 years if tenant operates break on Unit 2. Freehold. Offers sought in the region of 3,800,000 (Three Million, Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT for the freehold interest. An acquisition at this level would reflect an attractive net initial yield of 8.78% assuming purchaser s costs of 5.80%. Page 2 Halifax Retail Park Halifax HX1 5BE

3 Location Halifax is located in the county of West Yorkshire approximately 16 miles south west of Leeds, 8 miles south west of Bradford and 30 miles north east of Manchester. The town benefits from good road communications being connected via the A629 to junction 24 of the M62 motorway approximately 4 miles to the south. The M62 is the main Trans Pennine route linking Manchester with Leeds providing access to the M621, M1 and the wider national motorway network. Regular rail services operate from Halifax to Leeds (35 minutes), Bradford (13 minutes) and Manchester (48 minutes) with rail access to London provided via Leeds. Leeds Bradford International Airport is the closest international airport approximately 16 miles to the north east of Halifax. Manchester Airport is within relatively easy reach less than 1 hours drive to the south west. Catchment and Demographics The district population of Halifax is 192,405 comprising 81,000 households. Within 6 miles (10 km) of the town the population rises to 400,000 and within 12 miles (20 km) to over 1.2 million. The socio-economic profile of Halifax generally compares favourably with national averages. Page 3 Halifax Retail Park Halifax HX1 5BE

4 Retail Warehouse Provision in Halifax Pellon Lane Directly opposite the subject property The Range occupy a unit comprising 46,515 sq ft and immediately adjoining the Staples unit Dunelm occupy a unit comprising approximately 15,000 sq ft. Greenmount Retail Park is located just to the north of the subject property and includes units occupied by TK Maxx and Argos Extra. Crossley Retail Park is approximately 200 metres further up Pellon Lane where the tenants include Aldi, Halfords, Pets at Home, Iceland and Home Bargains. Shroggs Road Victoria Retail Park This park is located approximately 2 miles north east of the subject property and the occupiers currently include B&Q and Jollyes. Situation The property is situated in a prominent position fronting Pellon Lane approximately 200 metres from its junction with the main A58 Burdock Way (the inner ring road). The park has good visibility and easy access and egress directly to and from Pellon Lane. Halifax town centre is located approximately ½ mile to the south east. Charleston Road Located just east of the town centre is a small retail park occupied by Next, Currys, DW Sports & Fitness and Pizza Hut. Wade Street Wickes occupy a 35,000 sq ft unit located just east of the town centre. Berry Lane Matalan occupy a 45,377 sq ft unit located 1 mile south east of the town centre. The subject property is situated within an established out of town retail location with Dunelm trading immediately adjoining and The Range immediately opposite on the east side of Pellon Lane. Page 4 Halifax Retail Park Halifax HX1 5BE

5 Description Halifax Retail Park was originally developed in the late 1990 s and comprises a purpose built three unit retail warehouse terrace. The site is bounded by Bedford Street North to the south, Pellon Lane to the east and a Screwfix trade unit to the north. Customer access and egress is directly to and from Pellon Lane whilst segregated rear servicing for delivery vehicles is to the rear via Bedford Street North. HALIFAXRETAIL PARK The total gross internal floor area is approximately 33,612 sq. ft. (3,123 sq. m) in three units. There is a surface customer car park spread evenly to the front of the units providing a total of 103 spaces. There are a further 20 spaces to the rear giving an overall ratio of 1 space per 273 sq. ft. of GIFA (1 per sq. m). The units are of steel portal frame construction under a pitched roof with external elevations of part brick and part profiled metal cladding. Internally the units have been fitted out to each retailer s corporate orate specification. Each unit has an eaves height of approximately 19 8 (6m). Page 5 Halifax Retail Park Halifax HX1 5BE

6 Planning The original planning permissions were dated 19th October 1999 and 7th February On 11 August 2011 Calderdale Metropolitan Borough Council approved the variation of the original planning permission, to allow the sale of all comparison goods. We understand therefore that the park benefits from an open A1 non-food planning permission. Copies of the relevant documents are available upon request. Tenancies The AWULT is approximately 8.53 years (7.86 years assuming Unit 2 break clause). The property is leased as follows:- Covenant Information Tenant Date for Accounts Sales Turnover Pre Tax Profits (loss) Net Worth Carpetright plc. 28/04/ ,500,000 13,500,000 9,300,000 30/04/ ,800,000 6,600,000 1,200,000 01/05/ ,600,000 22,300,000 4,000,000 British Heart Foundation 31/03/2012 n/a ( 23,281,000) ( 16,629,000) 31/03/2011 n/a ( 57,388,000) 8,886,000 31/03/2010 n/a 49,309,000 50,592,000 Staples UK Retail Limited 28/01/ ,534,000 5,152,000 7,932,000 29/01/ ,896,000 ( 3,607,000) 1,814,000 30/01/ ,415,000 6,167,000 4,184,000 Staples UK Limited 28/01/2012 n/a ( 34,983,000) 23,889,000 29/01/2011 n/a n/a 58,872,000 30/01/2010 n/a n/a 58,872,000 Unit Tenant GIFA (sq ft) GIFA (sq m) Lease Start Date Term Lease Expiry Passing Rent pa Passing Rent psf Next Rent Review Comments 1 Carpetright plc 10, Jun years 2 British Heart Foundation 5, Nov years 3 Staples UK Limited (& Staples International Inc in partnership) 18,000 1, Dec years 23-Jun , Jun-2016 Carpetright is the UK s leading retailer of floor coverings currently trading from approximately 703 stores. The company has a London Stock Exchange listing with a current market capitalisation of approximately 421 million. 08-Nov , n/a There is a mutual break option in the British Heart Foundation lease after 3 years. British Heart Foundaton (BHF) was formed in 1961 and is one of the UK s largest and most recognisable charities. They have 674 retail outlets of which 114 are furniture and electrical stores. Their annual research spend is over 100 million and in the year ending 31 March 2012 they had a total income of million. For additional information, please visit 24-Dec , Dec-2015 Staples UK Ltd is the immediate parent company of Staples UK Retail Ltd. The ultimate parent company is STAPLES, INC. the world s largest office products company with worldwide sales of 27 billion in 27 countries including over 135 stores in the UK. The figures set out above are for both Staples UK Retail Ltd and Staples UK Ltd. 33,612 3, ,125 Page 6 Halifax Retail Park Halifax HX1 5BE

7 Tenure The property is held freehold and the site extends to approximately 1.8 acres (0.73 hectares). Potential Asset Management Initiatives We believe there are opportunities to enhance the value in the short to medium term that could include the following: Staples have closed their store but continue to pay the rent on their unit at 200,000 pa. They are seeking to assign their lease and we understand they may be prepared to pay a reverse premium to the landlord in order to secure a lease surrender. With the open A1 non-food planning permission potential demand for the town exists from retailers including Sports Direct, Smyths Toys and Home Bargains (relocation). We understand British Heart Foundation have traded well since they opened in January. Going forward there may be an opportunity to re-gear their lease. Potential to develop a small pod unit at the front of the car park. Proposal Offers are sought in the region of 3,800,000 subject to contract and exclusive VAT for the freehold interest of this property. Assuming purchaser s costs calculated at 5.80%, an acquisition at this level would reflect an attractive net initial yield of 8.78%. The property is registered for VAT and as such will be payable. It is anticipated however that the sale will be treated as a TOGC. For further information please contact:- Tim Bevan Thomas CWM Out of Town LLP Tel: Tel: O tbt@cwm.co.uk Steve Anderson Clarke Nickolls & Coombs Ltd Tel: Mob: s.anderson@cncagency.co.uk OUT OF TOWN Page 7 Halifax Retail Park Halifax HX1 5BE

8 Energy Performance Certificates L&G performance Certificates have been undertaken for the property as a whole and ratings of between B43 and C58 have been confirmed for each unit. Full copies of these Certificates are available upon request. Position Only Position Only Misrepresentation Act: CWM Out of Town LLP and Clarke Nickolls & Coombs Ltd for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3. No person in the employment of CWM Out of Town LLP or Clarke Nickolls & Coombs Ltd has any authority to make or give any representations or warranty in relation to these properties. April Page 8 Halifax Retail Park Halifax HX1 5BE