61/63 HIGH STREET, NEWCASTLE-UNDER-LYME ST5 1PN

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2 High Street location Affluent market town Two units with a total floor area of 11,656 sq.ft. Let to Store Twenty One and Superdrug Average unexpired term of 5 years Income 97,500 per annum Guide Price 1,300,000 Net initial yield 7.09% NEWCASTLE-UNDER-LYME Newcastle-Under-Lyme is a historic, affluent market town located to the west of Stoke-on-Trent, in the county of Staffordshire. The town is situated 40 miles south of Manchester, 35 miles south east of Chester and 45 miles north-west of Birmingham and has a population of approximately 75,000 persons (Census, 2011). The town benefits from excellent communications, being situated at the junction of the A50/A34 and 3 miles north of junction 15 of the M6. The A50 link road provides easy access to the M1 motorway to the east. The nearest railway station is located in Stoke-on-Trent and provides a regular service to London Euston in approximately 1 hour 30 minutes. LOCATION Retailing in Newcastle-Under-Lyme is focused on the pedestrianised sections of the High Street, Ironmarket and Castle Walk, as well as The Roebuck Shopping Centre. The town benefits from both national and local retailer representation, with occupiers including Laura Ashley, Boots the Chemist, WHSmith, New Look and Dorothy Perkins. The subject property occupies an excellent retailing location on the pedestrianised section of the High Street and benefits from good levels of footfall created by the traditional market which operates here. Nearby retailers include Edinburgh Woollen Mill, The Works, Select and Laura Ashley. Further representation in the vicinity comes from Dorothy Perkins, Caffe Nero, and Boots the Chemist. The location is indicated on the attached Goad plan extract. DESCRIPTION The building forms part of a three storey, terraced retail parade, fronting on to High Street and comprises of two retail units. The accommodation is arranged over ground and first floors having rendered elevations under a pitched tiled roof. The properties are arranged to provide open sales space on the ground floor, with ancillary accommodation situated on the first floor. There is a rear service yard accessed by a common corridor, which also provides access on to Scarlett Street, located at the side of the premises. DIMENSIONS The property has the following approximate dimensions and net floor areas:- Unit 1&2 t/a Store Twenty One Ground Floor Sales 3,253 sq.ft m² ITZA 1,327 units units First Floor Ancillary 2,345 sq.ft m² Unit 3 t/a Superdrug Ground Floor Sales 2,860 sq.ft m² ITZA 1,137 units units Ground Floor Ancillary 217 sq.ft m 2 First Floor Ancillary 2,981 sq.ft. 277 m² Total 11,656 sq.ft. 1,082.9 m 2

3 TENANT COVENANT Grabal Alok (UK) Ltd (No ) are a UK based retailing company with 216 stores across England, Scotland and Wales, operating under the Store Twenty One brand. For the year ended 29 March 2014, the company had a turnover of million, with Experian rating the company as Below Average Risk. Superdrug Stores PLC (No ) are part of the A.S. Watson Group, the world s largest international health and beauty retailer. With more than 850 stores in the UK, Superdrug Stores PLC generated a turnover of 1.01 billion and a pretax profit of million for the year ending 28 December Experian rate the company as Very Low Risk. RENTAL COMMENT Store Twenty One took occupation of their unit in October 2014 and so the rent therefore reflects current rebased levels, devaluing to a Zone A rate of per sq ft. The Zone A level is supported by the recent lease renewal of WHSmith at 76 High Street, which reflected Zone A. Superdrug are currently occupying their unit on a 5 year lease expiring in March 2016 at 65,000 per annum. They have also recently agreed a 5 year reversionary lease from expiry, paying a rent of 60,000 per annum. This reflects a Zone A rate of per sq ft, payable until March EPC Available upon request. TENURE The property is freehold. Unit 1&2 is let to Grabal Alok (UK) Ltd (t/a Store Twenty One) on a five year lease from 15 th October 2014 with no breaks at a rent of 37,500 per annum. Unit 3 is currently let to Superdrug Stores PLC on a lease expiring on 9 th March 2016 at a rent of 65,000 per annum. However, they have recently agreed a new 5 year reversionary lease to take effect from 10 th March 2016 at a rent of 60,000 per annum. The tenant has the benefit of a 15 month rent free period which expires on 10 th February 2016 (NB. the vendor will top up the remainder of the rent free period on completion)

4 PROPOSAL For the freehold interest, subject to the benefit of the letting, we are instructed to seek a price of 1,300,000 subject to contract to show a net initial yield of 7.09% having taken purchase costs at 5.8%. This investment provides an opportunity to purchase a two unit scheme, in a well regarded location. The rebased rent of Store Twenty One should provide good potential for future growth, whilst the reversionary lease of Superdrug provides a secure income for another 6 years. We understand the property is registered for VAT and it is anticipated the sale will be undertaken as a TOGC. FURTHER INFORMATION For further information please contact:- Stephen Powell stephenpowell@smithprice.co.uk or John Loveday johnloveday@smithprice.co.uk SUBJECT TO CONTRACT MISREPRESENTATION ACT These particulars are intended only as a guide to prospective purchasers to enable them to decide whether to make further inquiries with a view to taking up negotiations but they are otherwise not intended to be relied upon in any way or for any purpose whatever and accordingly neither their accuracy nor the continued availability of the property is in any way guaranteed and they are furnished on the express understanding that neither the agent nor the vendor is to be, or come, under any liability or claim in respect of their contents. The vendor does not hereby make or give nor does any Partner or employee of Smith Price LLP have any authority to make or give any representation or warranty whatsoever as regards the property or otherwise. Any prospective purchaser or lessee or other person in any way interested in the property should satisfy himself by inspection or otherwise as to the correctness of each statement contained in these particulars. In the event of the agents supplying any further information or expressing any opinions to a prospective purchaser, whether oral or in writing, such information or expression of opinion must be treated as given on the same basis as these particulars. These particulars do not form part of any contract and, except where expressly otherwise stated, offers will be considered only subject to contract. Smith Price LLP is a limited liability partnership registered in England and Wales. Registered number: OC Registered office: 5/7 John Princes Street, London W1G 0JN

5 PoweredbyTCPDF( Newcastle-under-Lyme 50 metres For more information on our products and services: Experian Goad Plan Created: 22/09/2015 Created By: Smith Price Copyright and confidentiality Experian, Crown copyright and database rights Ordnance Survey