CHURCH ARCADE, BEDFORD, MK40 1LQHigh yielding town centre retail investment

Bus Station Church

Square

Police Station

Car Park

Greyfriars Road

LIDL

Bedford Library

TESCO

JD Wetherspoon

Silver Street

A4280 Bromham Road

Harpur Shopping

Centre

BEDFORD TOWN CENTRE

Outline for indicative purposes only.

Debenhams

Beales

Superdrug

St Loyes RoadM&S

BHS

High Street (A6)

CHURCH ARCADE

CHURCH ARCADE, BEDFORD, MK40 1LQ

Investment considerations• Busy covered shopping arcade in the heart of Bedford.

• Popular ‘‘cut through’’ from Bedford Bus Station to Harpur Street.

• Multi-let property with 15 retail units and two additional first floor units as well as ancillary accommodation producing a triple net income of £256,234 pa.

• Predominantly freehold.

• Potential to increase passing rent by letting two vacant units.

• Offers are sought in excess of £1,900,000 (One Million Nine Hundred Thousand Pounds) which equates to a triple net yield of 12.75% based on the contracted rent

• Potential reversion to c.15.5% when fully let.

Bedford

Western Street

Alexandra R

oad

Con

duit Road

Commercial Road

Alexandra Place

Brereton R

oad

Maitland Street

Costin Street

Battison Street

Woburn Road

Ford End Road

Mill Street

Cardington Road

Duck Mill Lane

The Embankment

Ne

wnham

Ro

ad

St. C

uthbert’s S

treet

The

Cre

scen

t

Silver Street

St. Loyles Street Harp

ur Street

Lime Street

Midland Road

Priory Street

Hass

ett S

treet

A5141 Ashburnham

Road

A5141

A5141 Prebend Street

A4280A4280 Bromham Road

A4280 Bromham Road

A6

Greyfriars

A6

Greyfriars

A6

St. M

ary’s Street

A6

High S

treet

A6 Tavistock Street

A6

A6

A425

A120

A140

A134

A134

A134

A143

A130

A141

A428

A142

A1065

A45

A47

A11

A12

A14

A14

A14

A11

A10

A10

A10

A6A509

A508

A421

A5

A1

M6

M4M4

M1

M1

M1

M1

M45

M11

M40M25 M25

A1(M)

A1(M)

Heathrow

Luton

Stansted

Norwich

Cambridge

LONDON

BurySt Edmunds

GreatYarmouth

Lowestoft

NORWICH

King’s Lynn

PETERBOROUGH

Leicester

CAMBRIDGENewmarket

Huntington

Thetford

BEDFORD

KetteringRugby

MiltonKeynes

Stevenage

HarlowSt. Albans

Watford Enfield

Maidenhead

Reading

HighWycombe

Luton

Aylesbury

OXFORDHemel

Hempstead

Bishop’sStortford

NORTHAMPTON

IPSWICH

Felixstowe

Harwich

Clacton-on-Sea

Colchester

Chelmsford

BasildonSouthend-on-Sea

CHURCH ARCADE, BEDFORD, MK40 1LQ

LocationBedford is the county town of Bedfordshire and is a strong commercial and retail centre, located 50 miles north of London, 17.8 miles north east of Milton Keynes and 20.9 miles south east of Northampton. The town has a population of 80,000 (2005 census) and a wider borough area of 159,000.

The town benefits from excellent transport links and is strategically located between the major arterial routes of the A1 and M1, both being 10 miles to the east and west respectively. The A421 southern bypass is a primary link between the A1 and M1, with the section between Bedford and junction 13 of the M1 having recently been upgraded to dual carriageway. The A421 additionally links with the A6, which provides direct access to Luton to the south.

The town is well served by rail connections with frequent connections to London St Pancras with a fastest journey time of 35 minutes. International air travel is provided by Luton Airport approximately 20 miles to the south.

DemographicsBedford Borough’s population rose from 148,000 in 2001 to 159,000 in 2012 (increase of 12%). Much of the Borough is situated in the growth areas of the former Milton Keynes and South Midlands (MKSM) Strategy and approximately 9,000 new homes are planned for 2012-2021. As a result the Borough’s population is expected to grow significantly to more than 170,000 by 2021. The town can however draw from a much larger primary catchment of 309,000 (Promis) due to lack of competition and strong retailing provision within the town.

Situation The property is situated within the heart of Bedford town centre and provides a pedestrian only thoroughfare between Church Square and Harpur Street in close proximity to Bedford Bus Station.

The property provides a popular ‘‘cut through’’ and nearby occupiers include Superdrug, Iceland and BHS at the western entrance to the arcade and Poundland and Greggs Baker at the eastern entrance. To the west is a densely populated residential area.

CHURCH ARCADE, BEDFORD, MK40 1LQ

DescriptionThe property comprises a covered retail arcade constructed over ground and first floors to provide 15 retail units of differing sizes on the ground floor with ancillary accommodation on the first floor.

There are only two additional units on the first floor.

The Clarks Shoes unit has frontage onto Harpur Street and the Millman Jewellery unit has frontage onto Church Square. The remainder of the units face the covered arcade.

The property benefits from a loading area to the rear of units 6-10 which is accessed from Harpur Street.

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TenureThe majority of the property is held freehold however units 1, 2, 3, 5 & 7 are held leasehold from Bedford Borough Council for a term of 125 years from 31 March 2006. The rent payable is 5% of ERV less voids and service charge shortfalls. For the previous year the head rent payable was £1,350.34.

CHURCH ARCADE, BEDFORD, MK40 1LQ

Bedford Bus Station Re-developmentA major regeneration of the Bedford Bus Station area is currently taking place and the new Bus Station officially opened on 29 March 2015. The council has invested £4m and the wider scheme includes:

• The demolition and replacement of the existing bus station building.

• New public toilets.

• Major refurbishment of Allhallows multi-storey car park.

• Construction of new surface car park at Greyfriars.

• New shop fronts and disabled access for shops.

• External improvements including new parking, seating and other features. The council has committed to spend £9m on the improvements.

This significantly improves this vital gateway to Bedford town centre.

nLeasehold

nFreehold

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

Service ChargeThe service charge budget for the year ending 31/03/16 is £22,500. Full details are available on request from Allsop.

VATThe property is subject to VAT.

Tenancy Schedule

Accommodation and TenanciesYou will see from the attached schedule of accommodation and tenancies that the property comprises a total floor area of 2,299.7 sq m (24,754 sq ft). The current net rent passing amounts to £280,250 pa with a potential reversion to £280,251 pa (on a contracted basis).

Accommodation Tenant Ground Floor Area Sq Ft (Sq M)

First Floor Area Sq Ft (Sq M)

ITZA Lease start Lease expiry (break)

Rent pa Rent ITZA Comments Non-recoverables (Rates and Service Charge)

Unit 1 Ivana & Tania Silvestre t/a Hairdresser 775 (72.0)

934 (86.8)

713 02/10/2014 01/10/2019 (02/10/2017)

£12,000 £17.00 Stepped Rent: Year 1: £12,000, Year 2: 13,000, Years 3-5: £14,000 Rent deposit of £3,500

Unit 2 Millman (Jewellers) Ltd 826 (76.7)

790 (73.4)

949 25/03/2015 24/03/2020 (25/03/2018)

£18,000 £19.00

Unit 3 The ReUse Centre 943 (87.6)

795 (73.9)

860 28/05/2012 - £1.00 £0.00 On a rolling monthly licence paying £1 + service charge ERV of £18,000 pa.

Unit 4 Vacant 446 (41.4)

375 (34.8)

401 - - - - ERV of £8,000 pa. £9,522

Unit 5 DP Clarke Family Butchers Ltd 936 (87.0)

891 (82.8)

695 15/08/2008 18/08/2018 £34,000 £49.00 Tenant currently pays £25,000 pa.

Unit 6 Simi & Lola Ltd 415 (38.6)

476 (44.2)

416 20/03/2015 19/03/2020 (20/03/2018)

£8,000 £19.00 Stepped Rent: Year 1: £8,000, Year 2: £9,000, Years 3-5: £9,500. Rent deposit of £2,000

Unit 7 Vacant 769 (71.4)

769 (71.4)

622 - - - - ERV of £15,000 pa. £13,145

Unit 8 Philip ACS List Ltd t/a EcigWizard 488 (45.3)

531 (49.3)

511 04/08/2014 03/08/2019 £14,000 £27.00 £1,000 rent deposit

Unit 10 Mrs Verma & Mr Mason t/a Arcade News

475 (44.1)

496 (46.1)

442 07/02/2005 06/02/2015 £23,000 £34.00 Tenant currently pays £15,000 pa. New lease discussions ongoing.

Unit 11 Paul & Neelam Verma t/a Paul’s Café 1,354 (125.8)

0 622 08/12/2014 07/12/2024 (08/12/2019)

£16,500 £27.00 Stepped Rent: Year 1: £16,500, Year 2: 17,000 Years 3-5: £18,000. Rent review and tenant break in year 5. 3 month rent deposit

Unit 11a (first floor) Donna Parke t/a Bridal Shop 0 1,237 (114.9)

- 01/07/2015 01/07/2020 (01/01/2017)

£6,500 £5.25 psf 6 months rent-free and tenant break option in 18 months and years 2, 3 and 4.

Unit 12 Timpson Shoe Repairs Ltd 422 (39.2)

486 (45.2)

406 10/08/2005 09/08/2015 £20,000 £49.00

Unit 14 Shenlong UK Ltd 227 (21.1)

313 (29.1)

236 05/11/1999 04/11/2009 £12,250 £52.00 Holding Over. Guarantee from Dr Lin Li

Unit 16 Viroj Sena Ltd t/a Sena Jewellers 299 (27.8)

0 303 23/08/1999 22/08/2009 £14,500 £48.00 Holding Over. Guarantee from Dr Lin Li

Unit 18 Surjit Nandha & Paramjit Jossen t/a Baker’s Best

488 (45.3)

0 440 28/05/2004 27/05/2024 £19,500 £44.00 Tenant currently pays £15,000 pa.

Unit 16/18 (first floor) & 20 Harpur Street

C&J Clark International Ltd 1,215 (112.9)

933 (86.7)

1,235 26/04/2007 25/04/2017 £70,000 £57.00

Dane Street Chambers (second floor)

Luke Levitt t/a Personal Trainer 0 3,064 (284.6)

- 29/04/2015 29/04/2020 (29/04/2017)

£12,000 £3.91 psf 3 month rent free 3 month rent deposit. Landlord works to be completed.

Total 10,078 (936.3)

14,676 (1,363.4)

£280,251 £22,667

Less leasehold (2014) £1,350

Net Rent £256,234

Alex Butler020 7543 6722alex.butler@allsop.co.uk

Dominic Ketteringham020 7543 6833dominic.ketteringham@allsop.co.uk

Mark Dansky020 7543 6813mark.dansky@allsop.co.uk www.allsop.co.uk

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 05.15

ProposalOffers are sought in excess of £1,900,000 (One Million Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT reflecting a net initial yield of 12.75% (based on contracted rents) % and a reversionary yield of c.15.5% when fully let assuming purchasers costs of 5.8%.

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