Prime Single Let Retail Warehouse HUGHES ELECTRICAL, GROVE STREET, REDDITCH, B98 8DX

Prime Single Let Retail Warehouse HUGHES ELECTRICAL, GROVE STREET, REDDITCH, B98 8DX

INVESTMENT SUMMARY n Prominent location in town centre. n Modern detached retail warehouse unit with unrestricted Open A1 consent. n Over 5 years unexpired to Hughes Electrical Ltd. n Low passing rent of 11 per sq.ft. n Offers sought in excess of 1,700,000. n Net initial yield 7.75%, assuming purchaser s costs of 5.80%. LOCATION is a major town located approximately fourteen miles south of Birmingham city centre. Bromsgrove lies six miles to the west and Solihull thirteen miles to the northeast. The town lies approximately four miles south of Junctions 2 and 3 of the M42 motorway via the A441 and the A435, which links into the M5 and M6 forming the orbital motorway network around Birmingham. The M40 links to the M42 at Junction 3a, 5 miles to the north east, providing access to the south east and London. There are frequent rail services to Birmingham New Street with a fastest journey time of approximately 35 minutes. The total population within the primary catchment is 181,000 and rises to 960,000 within 12 miles of its centre.

RETAIL WAREHOUSING IN REDDITCH Retail warehouse supply for is estimated at 378,000 sq.ft with the principal concentration of out of town retail accommodation in close proximity to the subject property. The Trafford Centre is situated to the south of the subject property and provides a 61,000 sq.ft retail park let to Aldi, Home Bargains, Iceland, Pets at Home, Poundstretcher, Maplin and KFC. Also to the south east is a retail warehouse occupied by Halfords. To the east of the property are units occupied by Staples, Lidl and Wickes. Other retail warehouse occupiers in close proximity of the town centre include B&Q, Matalan, Homebase and Argos. SITUATION The property is located in a highly prominent position on Ringway, which is the ring road around the town centre providing access to the Kingfisher Shopping Centre and the A441. Town Hall is immediate to the rear of the property and to the north is the Palace Theatre and Shipley Bingo Hall. The Kingfisher Shopping centre is a short walk to the west of the property.

DESCRIPTION The property comprises a modern detached retail warehouse of steel portal frame construction with part brick and profile clad elevations and a profile clad roof. Internally the unit provides a large open plan retail area with rear storage. There is additional storage at first and second floor levels with an elevator linking the ground and first floors. Externally there is a 50 space car park to the front of the unit and a loading yard to the side of the unit providing access to the rear stores. SITE AREA The site area is 0.38 hectares (0.95 acres) with a site density of 24%. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice and extends to the following Gross Internal Area: AREA sq.m. AREA sq.ft. Ground Floor 939.25 10,110 First Floor 414.79 4,465 Second Floor Total 71.81 773 1,425.85 15,348 PLANNING The property benefits from an unrestricted Open A1 planning consent. A copy of the planning consent is available on request. TENURE The property is held freehold.

TENANCY The property is let to Hughes Electrical Limited (trading as Apollo 2000) on full repairing and insuring terms for a term of 10 years from 10 November 2009, expiring 9 November 2019. The current rent is 140,000 per annum ( 11.00 per sq.ft). The lease is subject to five yearly upward only rent reviews with the next review due on 10 November 2014. COVENANT Hughes Electrical was founded in 1921 and is currently the 4th largest specialist electrical retailer and the 2nd largest provider of home entertainment and kitchen appliance rentals in the UK. The company acquired Apollo 2000 in 2009 and Bennetts Electrical in 2011. Across the three brands the company have 41 stores in the UK. A summary of the tenant s accounts is set out below: Hughes Electrical Ltd (co no 00406069) 31/03/2013 31/03/2012 31/03/2011,000s,000s,000s. Turnover 102,927 100,780 82,052 Pre-tax Profit Shareholders Funds 3,032 3,853 3,743 22,344 22,552 22,787

RENTAL COMMENTARY The current rent of 140,000 per annum reflects a low rent of 11.00 per sq.ft. Set out below are a number of rental comparables in the immediate area: Address Tenant Floor Area sq.ft Lease Terms Planning Rent per sq.ft Ringway Retail Park, Former Currys Unit 9,642 Available A1 non food 15.00 Trafford Retail Park, 6,125 10 year lease from Jan 2013 A1 non food 18.50 (Net 15.73) Ringway Retail Park, Wickes 27,638 15 year lease from Oct 2012 Bulky goods 15.50 Trafford Retail Park, Home Bargains 7,500 15 year lease from April 2011 A1 non food 17.50 (Net 15.50) Trafford Retail Park, Aldi 16,286 20 year lease from Mar 2009 A1 food 18.00 (Net 17.40) Maplin VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC. For further information or if you wish to arrange a viewing, please contact :BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk ANDREW PRICE 0121 513 0892 andrew.price@fspproperty.co.uk PROPOSAL We are instructed to seek offers in excess of 1,700,000 (One Million Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT. Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD A purchase at this level would reflect a net initial yield of 7.75%, assuming usual costs of purchase of 5.8%. Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.