Prime Freehold Retail Investment. Poundland, Strand Street, 1-3 Howard Street, Douglas, Isle of Man IM1 2EG

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Prime Freehold Retail Investment Poundland, 32-36

1 Prime Freehold Retail Investment Poundland, Strand Street, 1-3 Howard Street, Douglas, Isle of Man IM1 2EG

INVESTMENT SUMMARY The Isle of Man is a self-governing independent territory of the British Crown with a resident population of 83,737.

Let to Poundland Limited on a lease expiring in November 2021, at a current passing rent of 300,000 per annum ( 10.90 per sq ft).

2 INVESTMENT SUMMARY The Isle of Man is a self-governing independent territory of the British Crown with a resident population of 83,737. Douglas, the capital, is the main commercial centre on the island where the majority of the island s retailing is based. The property comprises 2, sq m (27,530 sq ft) on basement, ground and two upper floors and occupies a 100% prime trading position on Strand Street. Let to Poundland Limited on a lease expiring in November 2021, at a current passing rent of 300,000 per annum ( per sq ft). Offers in excess of 5,860,000 (five million, eight hundred and sixty thousand pounds), subject to contract and exclusive of VAT, which will reflect a net initial yield of 5.00% allowing for purchasing costs of 2.37%. Alternative use potential on the upper floors, subject to planning. PAGE 2

ISLE OF MAN The Isle of Man is an internally self-governing dependent territory of the British Crown and is

The island s parliament, known as the Tynwald makes its own laws and oversees all internal administration,

The Isle of Man has direct air links with more than 20 airports across the UK, Ireland and the Channel

in the north of England, Belfast and Dublin. Journey times are set out below.

3 ISLE OF MAN The Isle of Man is an internally self-governing dependent territory of the British Crown and is a member of the British Commonwealth which lies outside of the United Kingdom and the European Union. The island s parliament, known as the Tynwald makes its own laws and oversees all internal administration, fiscal and social policies. The Isle of Man has direct air links with more than 20 airports across the UK, Ireland and the Channel Islands in addition to which there are a number of ferry services operating from Douglas to various ports in the north of England, Belfast and Dublin. Journey times are set out below. By Plane DESTINATION TIME (HOURS) Belfast 0:35 Manchester 0:50 Birmingham 0:55 Glasgow 1:00 London City 1:10 London Gatwick 1:15 PENDING LICENSE... By Ferry DESTINATION TIME (HOURS) Belfast 2:45 Liverpool 2:45 Dublin 2:55 PAGE 3

ECONOMY With a resident population of 83,737 (2016) the Isle of Man benefits from a diverse economy, with a favourable taxation regime, political stability and a current Moody s credit rating of AA2.

4 ECONOMY With a resident population of 83,737 (2016) the Isle of Man benefits from a diverse economy, with a favourable taxation regime, political stability and a current Moody s credit rating of AA2. Whilst being a recognised provider of financial services, its world class reputation also extends to telecommunications infrastructure and its highly skilled workforce has secured the island s standing as a leading international business centre attracting companies involved in high-tech manufacturing, e-business, e-gaming, ship and superyacht management, film production and space commerce amongst others. The island reports impressive financial statistics with the unemployment rate currently standing at 0.8% (September 2017). It has posted average annual growth of approximately 6% for more than 30 consecutive years, making it one of Europe s most successful economies. Every year the island s economy is boosted when it hosts the Isle of Man TT Festival, which this year entertained around 45,000 motorsport enthusiasts over a two week period. Douglas Douglas is the capital and the largest town on the island with a population of 28,839 (2011). It is located on the east coast, at the mouth of the River Douglas forming part of the town s harbour and main commercial port. Being the capital, Douglas acts as the main hub for business, finance, legal services shipping, transport, retailing and entertainment. Retailing The Isle of Man s main retailing is focused in Douglas where the majority of the island s businesses and population is based. The island s government has resisted out of town development so as a consequence Douglas has grown as the only significant retail centre with limited alternatives for retailers seeking representation in the town and a captive retail catchment. Retail rents as a consequence have remained buoyant and have not experienced the erosion of rental value experienced on the high street in other parts of the UK. Strand Street is the main retailing thoroughfare in Douglas with retailers including Marks and Spencer, Boots, Waterstones, Dorothy Perkins, New Look, TK Maxx, WH Smith and Top Shop. The Strand Centre is the island s only shopping centre at the north end of Strand Street, which was acquired by Sports Direct in 2016 and houses retailers including HMV, Peacocks, Mothercare and Miss Selfridge. The subject property is situated on the pedestrianised Strand Street occupying a prime trading position and benefiting from good pedestrian flows. It is situated on the eastern side of Strand Street close to its junction with Howard Street. Howard Street provides return frontage for the unit and Villiers Street to the rear is the main servicing point to the property. Car parks in close proximity include 300 spaces in the Marks and Spencer s (Drumgold Street), diagonally opposite the subject property, together with additional parking at Shaw s Brow, Chester Street and Bottleneck all of which are within easy walking distance. PAGE 4

DESCRIPTION The property comprises an L shaped building constructed and extended between 1920 s and 1950 s of steel frame with brick and stone elevations under a flat roof.

Adjacent to the main Strand Street frontage is a separate entrance providing access to the upper floors, in addition to which is an entrance on Howard Street (currently unused) which also provides

5 DESCRIPTION The property comprises an L shaped building constructed and extended between 1920 s and 1950 s of steel frame with brick and stone elevations under a flat roof. Internally the property is arranged on basement, ground and two upper floors. Adjacent to the main Strand Street frontage is a separate entrance providing access to the upper floors, in addition to which is an entrance on Howard Street (currently unused) which also provides staircase access to the upper parts and basement. There are two lifts; a passenger lift serving all floors and a goods lift serving ground, first and second floors. The goods lift has access from Villiers Street at the rear of the property. The property is not located in a conservation area and is not a protected building. ASSET MANAGEMENT INITATIVES In the future or through negotiation with the existing tenant, the building, subject to necessary planning consents, would lend itself to alternative uses on the upper floors. In addition, there may be scope to add further levels with the possibility of residential apartments, again subject to planning. The property has the following net internal areas FLOOR ACTUAL USE SQ M SQ FT Basement Sales ,682 Mezzanine Stairs Ground floor Sales ,608 First floor Storage/Offices ,424 Second floor Storage ,606 /Staff & Ancillary 50 metres Experian Goad Plan Created: 09 Created By: Lindley Mort TOTAL 2, ,530 Copyright and confidentiality Experian, Crown copyright and For more information on our products an database rights OS goad.sales@uk.experian.com 0845 PAGE 5

There is a schedule of condition, a copy of which is available on request. COVENANT Poundland Limited is a British variety store chain founded in 1990.

6 TENURE & COVENANT TENURE The property is held freehold. TENANCIES The property is let to Poundland Limited on a 10 year full repairing and insuring lease from 15th November 2011 at a current rent passing of 300,000 per annum ( per sq ft). There is a schedule of condition, a copy of which is available on request. COVENANT Poundland Limited is a British variety store chain founded in Today the company operates from over 800 stores and employs approximately 10,000 members of staff. The Isle of Man store trades under the Dealz brand forming part of Poundland s expansion into the Republic of Ireland which began in Poundland Limited is a strong covenant with a Dun & Bradstreet rating of 4A1 representing a tangible net worth of 20,520,000 and a minimum risk of business failure. For the financial year ending March 2016 the retailer reported a sales turnover of 1,214,818,000, and a profit before tax of 34,653,000. EPC Energy Performance Certificates are not a legal requirement on the Isle of Man. VAT The property has been elected for VAT purposes. Corporate & Personal Tax The Isle of Man has its own income tax and Customs & Excise services and is an established low tax area enjoying total independence from the UK on matters of direct taxation. There is low corporate and personal tax and no capital gains, inheritance or wealth tax. Stamp Duty There is no Stamp Duty Land Tax (SDLT) payable on the Isle of Man but there is a charge for registering the conveyance at the Government Registry, currently 5.70 per 1,000 (0.57%) of capital value. Commercial Property Tax The trading income and commercial property rents of Isle of Man resident companies are currently taxed at 20%. Prospective purchasers are recommended to take professional advice concerning the establishment of Isle of Man resident companies, taxation matters and registration of title costs. PAGE 6

PROPOSAL We are instructed to seek a price in excess of 5,860,000 (five million, eight hundred and sixty thousand pounds), subject to contract and exclusive of VAT, which will reflect a net initial

FURTHER INFORMATION For further information or to arrange an inspection of the property please do not hesitate to contact either:- Bruce Mortimer DL: 020 7659 1890 bruce@lindleymortimer.

com Lindley Mortimer 14 Cork Street, London W1S 3NS SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT Misrepresentation Clause Lindley Mortimer LLP for themselves and for the vendors or lessor of this

7 PROPOSAL We are instructed to seek a price in excess of 5,860,000 (five million, eight hundred and sixty thousand pounds), subject to contract and exclusive of VAT, which will reflect a net initial yield of 5.00% allowing for purchasing costs of 2.37%. FURTHER INFORMATION For further information or to arrange an inspection of the property please do not hesitate to contact either:- Bruce Mortimer DL: bruce@lindleymortimer.com or James Lindley DL: james@lindleymortimer.com Lindley Mortimer 14 Cork Street, London W1S 3NS SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT Misrepresentation Clause Lindley Mortimer LLP for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Lindley Mortimer cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii)rents quoted in these particulars maybe subject to VAT in addition; iv) Lindley Mortimer LLP will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings 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 purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements; vi) no employee of Lindley Mortimer LLP (and its subsidiaries and their Joint Agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. November 2017 PAGE 7

442/446 HOLLOWAY ROAD, LONDON N7 6LX

442/446 HOLLOWAY ROAD, LONDON N7 6LX PRIME REVERSIONARY LONDON FOODSTORE RETAIL INVESTMENT INVESTMENT SUMMARY The North London suburb of Holloway is an established residential and commercial centre, located