LIDL AND B&M12-18 WINSOVER ROAD

SPALDING PE11 1EJ

FREEHOLD TOWN CENTRE RETAIL PARK INVESTMENT

SPALDING LIBRARY

TOWN CENTRE

SUBJECT PROPERTY

SOUTH HOLLAND DISTRICT COUNCIL

SPALDING UNITED FC

SPALDING STATION

CHATTERTON WATER TOWER

WOLSELEY PLUMBING

Site outline for indicative purposes only.

LIDL AND B&M 12-18 WINSOVER ROAD, SPALDING PE11 1EJ TOWN CENTRE RETAIL PARK INVESTMENT

INVESTMENT CONSIDERATIONS ■ Attractive town centre retail investment comprising two

large supermarkets with offices above ■ Situated in the attractive market town of Spalding

adjacent to the Railway Station

■ Let to the excellent covenants of LIDL UK GMBH (6.6 years to expiry) and B & M Retail Limited (2.25 years to expiry)

■ The foodstore units comprise a total of 2,800 sq m (30,139 sq ft) of well configured floor space

■ No breaks

■ Total current rent of £274,152 per annum

■ Open market rent review on the Lidl in November 2020

■ Car Parking for approximately 150 cars

■ Freehold

■ Site Area: 2.25 Acres (0.91 Hectares)

■ Asset management opportunities include letting the vacant office space, regearing the existing leases, developing the site in the medium to long term or separating and selling the units individually

■ Offers are sought in excess of £3,450,000 (Three Million, Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.5%, and a low capital value of £106psf after allowing for purchaser’s costs of 6.50%.

LIDL AND B&M 12-18 WINSOVER ROAD, SPALDING PE11 1EJ TOWN CENTRE RETAIL PARK INVESTMENT

M1

M25

M25

M40

M11

M40

M42

M50

M48

M32

M27

M23M20

M2

M6 TollM54M42

M69

M1

M1

M6

M6

M6M5

M5

M5

M4M4

M3

M62M62

M61

M56

M56

M58

M55

M18

A1(M)

A1(M)

A3(M)

A74(M)

A1(M)

M180

M74

M77

M8M8

M80

M90

M73

A1(M)

GLASGOW●

EDINBURGH●

YORK●

NEWCASTLEUPON TYNE

●

HULL●

LEEDS●

SHEFFIELD

MANCHESTERLIVERPOOL

BLACKPOOL●

BIRMINGHAM

CARDIFF●

SWANSEA●

BRISTOL●

WORCESTER

BATH●

SOUTHAMPTON●

EXTER●

PORTSMOUTH●

MAIDSTONE●

FOLKSTONE●

OXFORD

LUTON

BEDFORD

CHELMSFORD

GRIMSBY

BOSTON

MILTON KEYNES

NORTHAMPTON

LEICESTER

NOTTINGHAM

LOUGHBOROUGH

LINCOLN

CAMBRIDGE

LONDON

BRIGHTON●

PETERBOROUGHNORWICH

KINGS LYNN

BURY STEDMUNDS

SPALDING

LOCATION

Spalding, with a population of approximately 30,000, is an attractive market town situated within Lincolnshire. It is located at the centre of a major region of flower and vegetable cultivation and so it benefits from a thriving agricultural industry and various vegetable packing plants who sell their produce onto supermarkets. The town is located approximately 18.5 miles north of Peterborough, 50 miles south east of Nottingham and 27 miles west of Kings Lynn.

Spalding benefits from excellent road communications being directly adjacent to the A16 (Spalding bypass), which links the A1 (M) to the North East of England and the A151, which provides a direct route to the A17 and Kings Lynn to the east. Rail communications are also good with Spalding Railway station offering regular routes to Peterborough (journey time: 20 minutes), Lincoln (journey time: 54 minutes) and London King’s Cross (journey time: 95 minutes).

The population of the South Holland district, which Spalding forms a large part has increased by 15.40% between 2001 and 2011 and has grown 1.7% annually since then. This represents one of the highest growth rates for a local authority area in England and Wales. South Holland’s population is predicted to increase to over 102,000 by 2021.

*The upper parts fronting Winsover Road are not included in the sale.

SITUATION

The property is situated in a prominent position to the north of Winsover Road on the western edge of the town centre at its junction with Station Street and the town’s main railway station, Spalding Town, immediately to the north.

The main town centre, which boasts all of the usual High Street names, is situated around the semi-pedestrianised Hall Place/Market Place and larger stores are located immediately to the east on the Holland Market Retail Park, where Sainsburys, Wilkos, Halfords, Argos are represented alongside an Iceland, Marks & Spencers and B&Q fronting New Road.

DESCRIPTION

The subject property, which fronts Winsover Road to the front and Spalding Town Railway Station to the rear, comprises the majority of the Winsover Centre. The Winsover Centre was constructed in the 1980’s as a food supermarket for Co-Op but has more recently been sub-divided to provide 2 large retails units (B&M and Lidl) fronting the car park with 6 smaller retail and office units fronting Winsover Road, which do not form part of the sale.

The B&M and Lidl are situated over ground and first floors to provide modern open plan retailing space with loading bays to the side. There are self-contained offices at first floor level with access between the two retail units.

The Car Park, which has a maximum capacity of approximately 150 cars, is access via Station Approach and it provides for 2 hours free parking.

ED &

War

d Bd

y

3.4m

4.9m

4.6m

TCB

LB

LB

Posts

AVENUE

PATR

IOT

CLO

SE

SHORT STREETWINSOVER ROAD

GLENN

2

16

8

18

26

30

45

PH

PH27

32

13

6

20

24

40

7

10

1

PH

35

22

7

13

52to 54

14 to 16

37

8Tank

36

2

51530m 10m 20m 30m

PE11 1EJ

Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

© Crown Copyright, ES 100004106. For identification purposes only.

SITE AREA

Site Area: 2.25 Acres (0.91 Hectares).

TENURE

Freehold.

LIDL AND B&M 12-18 WINSOVER ROAD, SPALDING PE11 1EJ TOWN CENTRE RETAIL PARK INVESTMENT

TENANCY & ACCOMMODATION

Unit Tenant Accommodation Area (sq ft)

Area (sq m)

Lease Start Next Review Lease End Rent (£pa)

Rent (£psf)

Comments

Unit 9 Lidl U.K GMBH Retail 12,639 1,174.2 3rd Nov 2000 3rd Nov 2020 2nd Nov 2025 £130,700 £10.34

Unit 5 B&M Retail Ltd Retail 17,500 1,625.8 6th June 2011 - 5th June 2021 £128,153 £7.32

Unit 8 Vacant Office 2,385 221.5 April 2019 April 2020 £15,500 £6.50Current tenant vacating - vendor will provide a 12 month rent, rates and service charge guarantee

Total 32,524 302.5 £274,353

LIDL AND B&M 12-18 WINSOVER ROAD, SPALDING PE11 1EJ TOWN CENTRE RETAIL PARK INVESTMENT

COVENANT INFORMATION

LIDL

Lidl originated in Germany with its first store opening in 1973 and has grown to become one of Europe’s leading food retailers. The first Lidl UK opened in 1994

and currently has over 740 stores and 13 distribution centres across Great Britain employing over 20,000 people.Lidl is one of the UK’s fastest growing grocery chains with sales increasing by 7.3% in the three months through to the end of January and taking its market share up 0.3% to 5.3%.This growth is set to continue with four more warehouses in the UK set to be opened by 2025. Lidl’s Chief Executive Christian Hartnagel has outlined further plans to open a further 50 stores a year.LIDL UK GMBH has the following financial information:

28/02/2018 28/02/2017 29/02/2016

Turnover £46,086,000,000 £41,526,000,000 £38,277,000,000

Pre-Tax Profit £1,684,000,000 £1,709,000,000 £2,086,000,000

Total Net Worth £10,587,000,00 £9,943,000,000 £8,929,000,000

B&M BARGAINS

B&M was founded in 1978 and bought by Simon and Bobby Arora in December 2004. Since then, the retailer has undertaken a significant store expansion

programme, increasing their outlets from 20 to over 600 across the UK employing over 28,000 members of staff.B&M is one of the leading variety retailers in the UK with their core strategy being to sell top branded products at discounted prices.The company successfully listed on the London Stock Exchange in 2014, helping to fund its continued expansion with turnover having increased substantially over the past few years.B&M Retail Limited has the following financial information:

31/03/2018 25/03/2017 26/03/2016

Turnover £2,629,145,000 £2,252,265,000 £1,902,557,000

Pre-Tax Profit £236,006,000 £198,006,000 £168,121,000

Total Net Worth £600,542,000 £498,412,000 £440,372,000

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 03.19

Ronnie Morgan020 7543 6808ronnie.morgan@allsop.co.uk

For further information or to make arrangements for viewing please contact:

Jonathan Butcher020 7543 6722jonathan.butcher@allsop.co.uk

Alex Butler020 7543 6755alex.butler@allsop.co.uk allsop.co.uk

EPC

The EPC is available upon request.

DATAROOM

For access to the Allsop Dataroom please use the following link: http://datarooms.allsop.co.uk/register/spalding

VAT

We understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

PROPOSAL

Offers are sought in excess of £3,450,000 (Three Million, Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.5%, and a low capital value of £106psf after allowing for purchaser’s costs of 6.50%.

SERVICE CHARGE

The following table sets out the service charge expenditure in recent years:

Year End Expenditure Total Expenditure

2019 (Budget) £17,020

2018 £15,257.07

2017 £16,217.69

Unit 5 (B&M Retail Ltd) – The lease is subject to a service charge cap of £7,500 pa. For the service charge year ending September 2018, actual apportioned expenditure was £7,149.07. For the current service charge budget year ending September 2019, the forecast expenditure is £7,990.95.

Please refer to the Allsop Marketing Data Room for supporting documentation.