Prime Secure Freehold Retail Investment Pret A Manger, 21/23 Northgate Street, Chester CH1 2HA

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1 Prime Secure Freehold Retail Investment Pret A Manger, 21/23 Northgate Street, Chester CH1 2HA

2 Key Investment Criteria Chester is an affluent and historic Cathedral city which attracts over 8 million tourists a year Situated on the prime, pedestrianised retailing pitch of Northgate Street Freehold 11.5 years unexpired to Pret A Manger (Europe) Limited Nearby national retailers include Zara, Gap, White Company, Superdrug, Miss Selfridge, Starbucks and Molton Brown Passing rent of 140,000 per annum exclusive An ERV of 152,000 per annum exclusive Seeking offers in excess of 2,645,000 (Two Million, Six Hundred and Forty Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5% and a reversionary yield of 5.43% (Jul 2015), allowing for purchasers costs of 5.8% Location The affluent and historic cathedral City of Chester is located approximately 17 miles (27 km) south of Liverpool and 72 miles (116 km) north west of Birmingham. The city benefits from good road communications being served by both the M53 & M56, with the M53 situated less than 4 miles from the city centre. In addition the A55 connects Chester to North Wales and the A41, A51 and A483 provide access to the city from the wider catchment. Chester has excellent rail connections with direct services to London Euston (fastest journey time of apporoximately 2 hours), Liverpool (fastest journey time of approximately 40 minutes) and Manchester (fastest journey time of approximately 1 hour). Catchment Chester has a catchment of 182,816 people within a 15 minute drive time and 1.3 million people in a 30 minute drive time. The City attracts over 8 million tourists a year with an annual tourist spend of over 800m (Chester Renaissance). The resident population within a 15 minute drive time are affluent, with 28% of the population having a social grade of AB (High & intermediate management, administration and professional) which is significantly higher than the national average of 23%. (Source: Experian) Financial and business services account for the largest proportion of employment in Chester and major employers include Bank of America, Bristol Myers Squibb, Marks & Spencer s Financial Services & Lloyds Banking Group. M57 A57 Liverpool M62 Widnes Manchester A580 Warrington M60 A41 A41 M53 M56 Chester A533 Northwich A54 A556 M6 A54 A34 A537 A536 A483 A534 A49 A51 Crewe Wrexham A500

3 Situation The subject property occupies a prime trading location on the pedestrianised section of Northgate Street, adjacent to The White Company and close to Oasis, Molton Brown, Superdrug, Gap, Lakeland and Zara. Other key retailers located in Chester City Centre include Marks & Spencer, Browns Department Store, BHS, Boots, Primark, Next, Top Shop and H & M Hennes. The Council has recently completed the purchase of The Forum Shopping Centre and surrounding land and holdings where their stated intention is to develop a 300 million mixed retail and leisure scheme. In our view, this will further strengthen the location of the subject premises. Description & Accommodation The property comprises an attractive retail unit trading on ground and first floors with ancillary accommodation located in the basement and part first floor. The property is Grade II listed and is situated within the Chester City Centre Conservation Area. The property benefits from rear access on to Hamilton Place. The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and has the following net internal areas and dimensions:- ft m Internal Width Shop Depth sq ft sq m Ground floor sales 1, ITZA 938 units Basement First floor (Sales) 1, First floor (Anc) Total 4, Rental Analysis We have analysed the passing rent of 140,000 per annum to show 131 per square foot Zone A, 10 per square foot on first floor sales, 5 per square foot on first floor ancillary and 2 per square foot on basement ancillary.

4 es m NORTHGA PH Northgate Rental Value We are of the view that the subject property has a reversionary rental value of 152,000 per annum. This is in light of the most recent open market letting in July 2013 to Lakeland on 15/17 Northgate at a rent of 215,000 per annum. This letting reflects a headline Zone A of and, after amortising 6 months rent free over the first five years of the term, a net effective rate of 144 Zone A. Tenure Freehold. Tenancy The entire premises is let to Pret A Manger (Europe) Limited on a full repairing and insuring lease for a term of 15 years from 16th July 2010 expiring on 15th July The current passing rent is 140,000 per annum exclusive. The lease provides for five yearly upward only rent reviews to open market rental value and the two reviews are on 16th July 2015 and 16th July Covenant The first Pret A Manger opened in 1986 and they currently trade from over 330 units in the UK, USA, Hong Kong and France. The business has been extremely successful in busy urban locations with its offer promising only natural ingredients, organic coffee and everything being made on site. For the year ending 3rd January 2013, Pret A Manger (Europe) Limited reported a turnover of 360,015,000, pre-tax profits of 40,187,000 and a net worth of 184,244,000.

5 Experian Goad Plan Created: 08/01/2014 Created By: GCW

6 Recent Investment Transactions Examples of recent investment transactions that are comparable to the subject property include: In December 2013 the River Island at High Street, Lincoln sold for 5.75m reflecting an initial yield of 4.5%. There were 15 years remaining on the lease. In October 2013 the Fraser Hart at 52 Coney Street, York sold for 5.2m reflecting an initial yield of 4.6%. There were 9.5 years remaining on the lease. In September 2013 the Ernest Jones at High Street, Guildford sold for 5.675m reflecting an initial yield of 4.75%. There were 8.5 years remaining on the lease. In September 2013 the White Company at 7-8 Queen Street, Oxford sold for 5.565m reflecting an initial yield of 4.5%. There were 10 years remaining on the lease. VAT The purchase of the property will be subject to VAT and it is anticipated that the sale will be dealt with by means of a Transfer of Going Concern. EPC The property has an EPC rating of D (94). A full copy of the EPC is available upon request. Proposal We are seeking offers in excess of 2,645,000 (Two Million, Six Hundred and Forty Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5% and a reversionary yield of 5.43% (Jul 2015), allowing for purchasers costs of 5.8% Further Information James Pearson DD: james.pearson@gcw.co.uk Simon Morris DD: simon.morris@gcw.co.uk 7/10 Chandos Street London W1G 9DQ T: F W: Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC Registered office: 30 City Road, London EC1Y 2AB. January 2014.