P R I M E H I G H S T R E E T R E V E R S I O N A R Y R E T A I L I N V E S T M E N T

INVESTMENT SUMMARY

• Bath is considered to be one of the UK’s best retail destinations• Bath is a UNESCO World Heritage Site and an internationally renowned tourist destination attracting more than

4.8 million tourists in 2017• 100% prime pitch in the heart of Bath’s retailing centre• Mixed-use asset comprising retail and residential• A rare double-fronted unit, offering a wide and fully glazed display directly on to the pedestrianised Stall Street• Let to a strong national covenant with 3.5 years remaining• Total gross rent of £272,800 per annum, with a net rent of £231,880 per annum• Outstanding rent review currently being negotiated with the tenant• Reversionary asset, offering excellent opportunities for rental growth

02

PROPOSAL

Income

£231,880

Offers in the region of

£4,350,000

Net Initial Yield

5.00%

Mixed-used asset located

on Bath’s 100% prime retail pitch

LOCATION

Bath is an attractive and historic city in Somerset, famous worldwide for its impressive architecture and Roman Baths. The city has been designated by UNESCO as a World Heritage Site and is an internationally renowned tourist destination, attracting more than 4.8 million tourists per annum.

The city has excellent road communications, being 8 miles south of the M4 motorway and 20 miles east of the M5 motorway.

Bath benefits from direct links to London with train services to London Paddington leaving from both the mainline station and Bath Spa, with a fastest journey time of 1 hour 25 minutes. The travel time will be reduced by approximately 15 minutes on completion of the electrification of the Great Western Line.

Bristol airport is located just 20 miles south of the city centre, providing flights to a wide range of domestic and international locations.

03

Bristol

BATHCardiff

Swansea

GloucesterCheltenham

Swindon

Oxford

Milton Keynes

Reading

Aylesbury

High Wycombe

Basingstoke

Guildford

Crawley

Maidstone

RoyalTunbridge Wells

Chelmsford

Colchester

Ipswich

Northampton

Bedford

Cambridge

Norwich

Great Yarmouth

Lowe stoft

Felixstowe

London Gateway

King’s Lynn

StevenageStanstedAirport

LONDON

LutonAirport

Leicester

Birmingham

Coventry

Worcester

Telford

Derby

Nottingham

Nottingham CityAriport

BirminghamAirport

A57

A1

Manchester

LeedsBradford

Leeds BradfordInternational Airport

Liverpool

Chester

Preston Burnley

Middlesbr oughDarlington

Stockton-on-Tees

Hartlepool

Sunderland

Newc astleupon Tyne

Edinburgh

Glasgo wFalkirk

Stirling

Aberdeen

Perth

Dundee

Inverness

Plymouth

Exeter

Torquay

Southampton

Portsmouth

Bournemouth

Hastings

Southend-on-Sea

Ramsgate

Scarborough

Grantham

East Midlands Airport

Lincoln

Robin Hood Airport

Skegnes s

Doncaster

Grimsby

Barnsley

Peak District

Manchester Airport

Carlisle

Dumfries

Salisbury WinchesterTaunton

Weston-super-Mare

Newport

M25

A47

A140A148

A146

Eastbourne

BrightonYeovil

HeathrowAirport

M4M5

M5

M4

M3A303

A338

A350

A37

A346

Amesbury

A303

M1

A47

A11

A11

A47

M40

A45

A134

A12

A140

Petersborough

CorbyKettering

M5

A41

M40

M25

GatwickAirport

BristolAirport

DEMOGRAPHICS

Bath has a primary catchment population of 458,000, with an estimated shopping population of 223,000. The catchment population is one of the most affluent in the UK with an above average population of adults within the most affluent AB social group. The population is also supported by the 22,000 student population that attend either Bath University or Bath Spa University.

The regional catchment within one hour is extensive and includes Wiltshire (Swindon and Salisbury), Gloucestershire (Cheltenham and the Cotswolds), Somerset and South Wales (Cardiff).

04

Bath is listed as one of the top performing urban areas outside of London for recent house price growth, with a significant proportion of buyers from London. The city is further expected to outperform the national residential market with an average price growth of 29.4% over the next 5 years.

Bath’s population is one of the most affluent in the UK

RETAILING IN BATH

Bath is one of the UK’s leading retailing destinations, scoring a high 10th out of 200 on the PMA retail score, which is based on the number of multiple retailers located in the city. The total city centre retail floor space in Bath is estimated at 1.43 million sq ft.

The prime pitch in Bath runs along a linear central retail area. The principle shopping street of Milson Street, Union Street, Stall Street and Southgate form a north-south axis running parallel to the River Avon. Centrally located Milsom Street, Old/New Bond Streets and Stall Street are viewed as the high-end retail pitch. The street benefits from a high amount of tourist footfall due to the proximity to Roman Baths, which is located 50 meters from the subject property. The street anchored by M&S and Primark, with other national retailers including Ernest Jones, Whittard, Size? Holland & Barrett and Sole Trader. A number of these stores have recently completed expensive fit-outs or refurbishments, highlighting their dedication to Bath’s retailing core.

Southgate Shopping Centre located to the south of the subject property, opened its final phase in Autumn 2012 and provides over 420,000 sq ft of retail, 724 car parking spaces and a new bus station. The scheme is anchored by Debenhams and other retailers represented include Apple, Hollister, Urban Outfitters, Tommy Hilfiger and All Saints.

The strength of the retailing in Bath is evidenced with several new brands taking their first stores outside London in the centre, including India Jane, Brissi and the Danish brand Hay, the latter two with new ‘townhouse’ style concept stores.

05

DESCRIPTION

The property is an attractive sand stone period property, based over basement, ground, first and second floors.The ground floor offers a fully glazed double fronted and well configured rectangular unit mainly used as sales. With the basement and first floor comprising of ancillary accommodation. On the second floor there are two, 3 bedroom flats that both have access to an internal courtyard.

The property is Grade II listed.

06

SITUATION

The subject property occupies a prime retailing location on the dominant Stall Street. The

unit is situated opposite a newly configured and fully glazed

Holland & Barrett, Size and EE.

Other prominent national retailers on Stall Street include:

are in the process of constructing a newly created,

corner unit, at the southern end of Stall Street directly opposite the

Southgate Shopping Centre.

SOLE | TRADER

The retail market in Bath is significantly

boosted by 4.8 million

tourist visitors each year

ACCOMMODATION & TENANCY SCHEDULE

The property is let to Schuh Limited until 28 March 2022, providing a 3.5 year unexpired term. The passing rent on the retail element is £235,000, which devalues to £152 Zone A.

There is an outstanding rent review from 28 March 2017 which has recently been instigated and is currently being negotiated with the tenant.

The property also has two flats which are both let on AST’s. Each flat has a rental income of £18,900 per annum, providing the property with a total residential income of £37,800 per annum.

The property therefore produces a total income of £272,800 per annum. After the deduction of the head rent, the property produces a net income of £231,880 per annum.

Description Use Area (sq ft) ITZAGround Floor Sales 1,916

ITZA 1,316Ground Floor Ancillary 282Basement Ancillary 2,195First Floor Ancillary 2,276Retail Total 6,669Second Floor Flat A 965* Second Floor Flat B 821* Residential Total 1,786

* gross internal area

TENURE

In common with many retail buildings in Bath, the property is held long leasehold, by way of a 125 year lease from 15th January 1981.

The current rent payable is 15% of rents received, which equates to £40,920 per annum.

07

COVENANT

Schuh Limited (Company No. SC125327), is a footwear retailer from the UK, with 118 stores in the UK and Ireland. In June 2011 Schuh was acquired by Genesco Inc. for £125 million. Genesco Inc. has more than 2,450 retail stores throughout the U.S and has a turnover of $3.02 billion in in 2016.

28/01/2017 30/01/2016 31/01/2015Sales Turnover £280,936,000 £266,808,000 £247,503,000Profit Before Tax £15,800,000 £14,334,000 £11,452,000Net Worth £52,831,000 £39,163,000 £87,547,000

Schuh Limited has a Creditsafe rating of 78 reflecting a “very low risk” of business failure.

08

Reversionary asset, let to a strong national covenant, with “very low risk” of business failure

RENTAL COMMENTARY

We have analysed the passing rent from the retail element totals of £235,000 per annum, to reflect £152 Zone A.

We are of the opinion that the property is reversionary, and offers excellent opportunities for rental growth, as highlighted by the most recent comparable evidence detailed below:

Address Tenant Date Transaction Zone A20 Union Street Dr Martins Apr 2018 OML £180

26 Stall Street Caffe Nero Dec 2017 OML £155

12-13 Union Street Soho Coffee Aug 2017 OML £155

21-22 Union Street Nationwide Jul 2017 OML £207

11 Union Street Tiger Jun 2017 OML £220

27-29 Stall Street Ernest Jones Dec 2016 OML £170

09

INVESTMENT COMPARABLES

The investment market has historically performed strongly in Bath, this is demonstrated by the evidence set out below:

Address Date Tenant WAULT Price NIY21-22 Union Street Dec 2017 Nationwide 10 years £5,900,000 4.00%39 Milsom Street May 2017 The Ivy 25 years £8,019,000 4.17%2 Bath Street Jan 2017 Ecco Shoes 4.7 years £2,750,000 4.30%2 & 3 Milsom Street Oct 2016 East + Mayther Cards 7 years £5,180,000 4.60%

10 VAT

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

EPC

The property has an EPC rating of D (86).

The EPC certificate can be provided, if requested.

50 metres

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Bath

Experian Goad Plan Created: 12/06/2018Created By: Jones Lang LaSalle Ltd

Copyright and confidentiality Experian, 2017. © Crown copyright anddatabase rights 2017. OS 100019885

PROPOSAL

We are instructed to seek offers for our client’s

long Leasehold interest in excess

of £4,350,000 reflecting a Net Initial Yield of

5.00%, allowing for purchasers costs

of 6.56%.

100% prime retail pitch located in the heart of Bath

City Centre

MISREPRESENTATION ACTJLL, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by JLL, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of Jones Lang LaSalle or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to JLL include any joint agents acting with Jones Lang LaSalle.

Designed by Graphic Outlines Ltd. September 2018

Alex Cousins020 3147 1375

alex.cousins@eu.jll.com

Christopher Robinson020 7087 5624

chris.robinson@eu.jll.com

Jonathan Heptonstall020 7318 7843

jonathan.heptonstall@eu.jll.com

FURTHER INFORMATION

For further information or to arrange an inspection of the property, please contact::