Prime Retail Warehouse Investment Opportunity. TK Maxx & HomeSense. Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY

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1 Prime Retail Warehouse Investment Opportunity TK Maxx & HomeSense Tollbar Way, Botley Road, Hedge End, Southampton, SO14 7NY Enter

2 investment considerations Prime location in one of the top retail warehouse destinations in the country; Hedge End Southampton New 15 year lease from July 2015 with a break at year 10 Easily accessible via Junction 7 of the Flexible planning consent permitting clothing sales Newly refurbished unit of 45,028 sq ft G.I.A. Benefits from the strong critical mass the location provides, with retailers in the vicinity including Marks & Spencer, Sainsbury s, Currys PC World Megastore and Next Home & Garden 742, per annum, reflecting a relatively low per sq ft Let to the 5A1 covenant of TJX UK One of TK Maxx s new concept stores to include TK Maxx and HomeSense Offers are sought in excess of 5.5% net initial yield, assuming purchaser s costs of 5.8%. This reflects 12,766,000 subject to contract and exclusive of VAT.

3 Location Southampton is a major retail, leisure and commercial city in the south east of the UK, 76 miles south west of London, 20 miles west of Portsmouth and 30 miles north east of Bournemouth. M4 M4 M25 LONDON Hedge End is a dominant regional out of town retail pitch, located 4.8 miles to the east of Southampton city centre. It is one of the most established retail warehouse locations in the South of England. A338 A34 BASINGSTOKE M3 M3 M25 The retail pitch is immediately located on the motorway at Junction 7, which links to Portsmouth, Southampton and the M3 motorway, 5.5 miles north west. As a result, it is an extremely accessible location, which is one of the reasons for its success as a retailing destination. A303 A36 A303 A338 SALISBURY A303 A34 WINCHESTER M3 A31 A31 A3 A3 Southampton International Airport and Parkway rail station are located 5 miles to the north west, at Junction 5 of the. The airport serves almost 50 UK and European destinations, with the passenger numbers approaching 2 million. The station provides a direct service into London Waterloo with the fastest journey time of 1 hour and 11 minutes. A354 A338 A36 A31 M3 SOUTHAMPTON A3 (M) A3 A272 A27 A272 A272 CHICHESTER BRIGHTON A31 A338 PORTSMOUTH BOURNEMOUTH ISLE OF WIGHT

4 Investment Considerations Location Catchment & Demographics Situation Retail Warehousing Description Tenure, Planning & Tenancy Rental Value & Tenant Covenant EPC, VAT & Proposal 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. Previous next

5 Situation The subject property is located in a prominent position on Tollbar Way, which links to the A3051 Botley Road, one of the main routes leading to Southampton city centre to the west. Tollbar Way links to the other retail warehousing in the area to the south and to Junction 7 of the M2 via the A314 Charles Watts Way. Opposite the subject property is 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. ROWNHAMS 4 A M3 5 A335 SOUTHAMPTON AIRPORT EASTLEIGH HORTON HEATH A35 TK Maxx/ HomeSense A3057 A27 A35 A33 A35 CITY OF SOUTHAMPTON A3057 A HEDGE END A33 A27 A3024 8

6 retail warehousing IN HEDGE END Hedge End is an established and substantial retail warehouse destination comprising approximately 750,000 sq ft of retail accommodation. It is anchored by a 130,000 sq ft Marks & Spencer and a 105,000 sq ft Sainsbury s situated adjacent to one another located off the A334 Charles Watts Way. OTLEY ROAD BRADBEERS RETAIL PARK TK MAXX / HOME SENSE TOL WHITES WAY BARFOOT ROAD SHAMBLE HURST LANE SOUTH Hedge End Retail Park comprises 86,000 sq ft of bulky goods accommodation occupied by DFS, Oak Furniture Land and SCS. There is a former Kiddicare unit which Ultimate Outdoors have taken a lease on and this unit totals 35,000 sq ft. Helping the critical mass of the location is a new Next Home & Garden of 86,500 sq ft, which is configured across 3 floors and a garden centre. Other retail warehousing includes a 39,500 sq ft Homebase and a Currys PC World Megastore of 45,033 sq ft adjacent to Marks & Spencer. Opposite the subject property is Bradbeers Retail Park where tenants include Harveys, Carpetright, Bradbeers (the owners of the scheme) and Burger King. This scheme totals 70,000 sq ft and has a bulky goods planning consent. There is also a 105,000 sq ft B&Q on the A334 Charles Watts Way. HEDGE END PARK HEDGE END TRADE PARK BOTLEY ROAD TOLLBAR WAY TOLLBAR WAY BOTLEY ROAD CHARLES WATTS WAY SAINSBURY S AND M&S WICKES SHAMBLE HURST LANE SOUTH A334 B&Q WAREHOUSE DRUMMOND ROAD LOCKE ROA 7 NEXT HEDGE END RETAIL PARK

7 description The subject property comprises a former Wickes store, which has been fully refurbished by the landlord to an effective shell and TK Maxx have fitted it out to their specification. It is one of the first few combined TK Maxx and HomeSense stores selling both the clothing and home ranges, which are divided separately internally. The refurbishment works incorporated: Overcladding of the roof and walls. For the roof, there is an Ashgrid system, 150 mm insulation quilt and 0.7 mm 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. The ground floor area is of 45,028 sq ft G.I.A. with a sales area of 36,893 sq ft. Internally the unit has been fitted out to TK Maxx s specification, with the clothing range making up circa 60% of the sales area and HomeSense; 40%. TK Maxx occupy the left side of the unit, with HomeSense on the right of the customer entrance. Trading across the ground floor only, but there is sufficient eaves height to install a mezzanine, subject to planning. Car parking is located to the front of the unit and provides 249 spaces, giving a ratio of 1 : 210 sq ft. As part of the refurbishment works, the landscaping has been reduced allowing excellent visibility from Tollbar Way. The total site area is 4.88 acres, giving a low site cover of 21.5%. Access to the unit is via Tollbar Way and the property benefits from separate access to the servicing area, which is located to the rear of the unit.

8 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. The consent permits an area of 37,921 sq ft for the sale of home furnishings, household goods, furniture, carpets and floor coverings, motor and cycle goods, sports goods and equipment, electrical goods (including lighting), kitchen and bathroom goods, toys, seasonal goods, giftware, pet products, DIY and decorating, luggage, books and stationery, fashion items, garden materials and products and ancillary food and drink products. Of the 37,921 sq ft, 56% of this can be used for the sale of fashion items, including clothing, shoes, bags, jewellery, fashion accessories and beauty products. 5% of the area can be used for the sale of ancillary food and drink products (excluding sales from any café). Bradbeers Retail Park The consent is considered similar to various consents granted to Next for their new Lifestyle stores. The full planning consent is available on request. tenancy The property is let on a 15 year full repairing and insuring lease from 6 July 2015 to TJX UK. There is a tenant break in year 10. The current annual rent is 742,846.50, equating to per sq ft, based on the agreed floor area of 45,028 sq ft G.I.A. The reviews are 5 yearly upwards only, subject to a cap at year 5 giving a maximum uplift of 15%.

9 Rental Value The property is let at a rent reflecting per sq ft. We believe this represents excellent value when compared to the other rents in Hedge End, and gives the potential for good rental growth in the future. For their Lifestyle store nearby, Next are paying a rent reflecting per sq ft across a rentalised area of 36,743 sq ft. This rent is subject to 5 yearly reviews to CPI, collared and capped at 1.5% and 3% per annum. On Hedge End Retail Park, Oak Furniture Land took 10,000 sq ft in July 2012 at a rent reflecting per sq ft. More recently, Ultimate Outdoors have taken an assignment of the Kiddicare lease where the rent is per sq ft on 35,000 sq ft. Rents on Hedge End Park Phase III average per sq ft, with Currys PC World paying per sq ft on their 25,844 sq ft and Homebase paying per sq ft for their 40,839 sq ft unit, subject to more restrictive consents. It should be appreciated that the rent was agreed over 2 years ago when the unit was in a poor state and subject to a more restrictive consent. We firmly believe that the unit now fully refurbished and trading should command a higher rental level than that originally agreed. Tenant Covenant TJX UK is the tenant covenant for TK Maxx and HomeSense. TK Maxx is the largest cut price retailer of apparel and home fashions in Europe. There are over 407 TK Maxx stores across the Continent. HomeSense was launched in the UK in 2008 and now has 33 stores across the UK, with plans for many more. HomeSense offers home fashions and gift wear offering the same good value proposition as TK Maxx. Both companies are owned by TJX Companies Inc, which had 29.1 billion of revenues in 2014 and operates across 3,300 stores in 7 countries. TJX UK has a 5A1 covenant and we set out below the most recent company accounts: Tenant TJX UK Year Ending Sales Turnover (000 s) Pre-Tax Profit (000 s) Net Worth (000 s) 01/02/2014 1,995,000 91, ,700 02/02/2013 1,814,600 80, ,400 D&B Rating 5A1

10 Investment Considerations Location Catchment & Demographics Situation Retail Warehousing Description Tenure, Planning & Tenancy Rental Value & Tenant Covenant EPC, VAT & Proposal EPC The property has an EPC rating of C. A copy of the EPC is provided on request. VAT The property has been elected for VAT, however, it is anticipated that the transaction will be treated as a Transfer of Going Concern (TOGC). Proposal We are seeking offers in excess of 12,766,000 (Twelve Million, Seven Hundred and Sixty Six Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 5.5%, assuming purchaser s costs of 5.8%. The vendor would prefer to structure the sale price deducting the value of the rent free period, as opposed to making good the rent free. Further Information Wilkinson Williams Heathcoat House 20 Savile Row London W1S 3PR Paul Wilkinson T: M: E: p.wilkinson@wilkinsonwilliams.co.uk Ellie Kirkby T: M: E: e.kirkby@wilkinsonwilliams.co.uk MISREPRESENTATION NOTICE Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to herein are approximate only. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. Previous next