PARADE, SUTTON COLDFIELDPRIME HIGH STREET RETAIL INVESTMENT LET TO NATIONAL COVENANTS

INVESTMENT SUMMARY

100% prime retail pitch on Parade

Directly opposite main entrance to Gracechurch Shopping Centre

Let to two multinational, 5A1 occupiers: Superdrug Stores Plc and HSBC Bank Plc

Superdrug and HSBC have been in occupation for at least 27 and 16 years respectively

Freehold

Total passing rent of £198,500 pa

WAULT to expiry of 4.34 years (2.68 to break)

Potential redevelopment plan on upper floor (STP)

PROPOSAL

Offers sought in excess of £2,400,000 reflecting a net initial yield of 7.78%.Subject to contract and exclusive of VAT. Yields are net of purchaser’s costs of 6.36%

Sutton Coldfield is the most affluent borough of the West Midlands conurbation with high levels of household income and low unemployment

PARADE, SUTTON COLDFIELD

LOCATION AND DEMOGRAPHICS

Sutton Coldfield is located approximately 8 miles (13 km) north of Birmingham city centre, 11.5 miles (18.5km) east of Walsall and 8.5 miles (13.5km) south west of Tamworth.

The town benefits from excellent road links via the M6 which provides access to Manchester (95 miles) and the North West. The town also has easy access to the M42, to the east of the town, which in turn leads to the M5 and the south and west of England.

By rail there are direct and frequent commuter services from the town to Birmingham New Street (19 mins), which in turn provides direct connections to London (81 mins). Sutton Coldfield railway station is located within a 5 minute walk of the property.

Birmingham International Airport is located 14 miles (22.5 km) south east of the town, providing regular domestic and international flights.

CATCHMENT AND LOCAL ECONOMY

Sutton Coldfield is the most affluent borough within the West Midlands, the second most populous area of the UK after Greater London. The town has a substantial primary catchment population, with a Primary Retail Market Area estimated at 119,000 people and is expected to see above average growth in population over the period 2018-2023.

Reflecting the affluent demographic profile, the town contains a significantly above average proportion of adults of working age categorised within the most affluent AB social group (PROMIS).

In contrast, the least affluent D and E social groups are particularly under represented.

The area is regarded as one of the most desirable and prestigious residential locations within central England and contains eight out of the ten most expensive residential streets in the West Midlands.

The level of owner occupation in Sutton Coldfield is significantly above average ranking the town 11th of the 200 PROMIS Centres on this measure.

As the most affluent district in Birmingham, Sutton Coldfield benefits from high levels of household income and low levels of unemployment. The Service sector accounts for approximately 75% of total employment with manufacturing accounting for 11%. Reflecting the wealth in the local catchment, per capita spending levels are significantly above the PROMIS average for both comparison and retail warehouse goods.

The Langley Sutton Coldfield Consortium recently outlined plans for a 5,500 home housing development on Sutton Coldfield’s green belt, which will also include a new secondary school, three primary schools, a medical centre, a district centre with shops, café, gym, pub, retirement village and sports facilities, as well as linking the site to existing greenways in Sutton Coldfield.

MANCHESTER

EASTMIDLANDS

LUTON

STANSTED

BIRMINGHAM

GLOUCESTERSHIRE

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Hertford

WelwynGarden

City Ware

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Royston

Biggleswade

EastDereham

Thetford

Stowmarket

Bury St Edmunds

Newmarket

Mildenhall

Ely

SudburySaffronWalden

Haverhill

Swaffham

King'sLynn

Stamford

Boston

WisbechDownham

Market

Spalding

March

St Ives

Huntingdon

St Neots

Rushden

Kettering

Wellingborough

NewportPagnell

Rayleigh

Chelmsford Maldon

Witham

Braintree

Bishop's Stortford

Cirencester

Didcot

Stroud

Witney Kidlington

ChigwellBarnet Enfield

Beaconsfield

HarrowPontypridd

Caerphilly

Cwmbran

Pontypool

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

Daventry

Banbury

Retford

Gainsborough

Newark-on-Trent

Grantham

Leek

Matlock

Bebington

Flint

Kirkby

Evesham

Bromsgrove

GreatMalvern

Tewkesbury

Prestatyn

Oswestry

Nantwich

Newport

Chepstow

Abergavenny

MerthyrTydfil

Hereford

Uttoxeter

Ashbourne

MacclesfieldBuxton

Louth

Aberdare

Hertford

WelwynGarden

City Ware

HatfieldHoddesdon

Royston

Biggleswade

EastDereham

Thetford

Stowmarket

Bury St Edmunds

Newmarket

Mildenhall

Ely

SudburySaffronWalden

Haverhill

Swaffham

King'sLynn

Stamford

Boston

WisbechDownham

Market

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March

St Ives

Huntingdon

St Neots

Rushden

Kettering

Wellingborough

NewportPagnell

Rayleigh

Chelmsford Maldon

Witham

Braintree

Bishop's Stortford

Cirencester

Didcot

Stroud

Witney Kidlington

ChigwellBarnet Enfield

Beaconsfield

HarrowPontypridd

Caerphilly

Cwmbran

Pontypool

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Aylesbury

Daventry

Banbury

Retford

Gainsborough

Newark-on-Trent

Grantham

Leek

Matlock

Bebington

Flint

Kirkby

Evesham

Bromsgrove

GreatMalvern

Tewkesbury

Prestatyn

Oswestry

NantwichWrexham

Newport

Chepstow

Abergavenny

MerthyrTydfil

Hereford

Uttoxeter

Ashbourne

MacclesfieldBuxton

Louth

Aberdare

Wigan

Norwich

Stevenage

Cambridge

Corby

Peterborough

RedditchNorthampton

Southend-on-Sea

Brentwood

Colchester

Basildon

Swindon

Cheltenham

Harlow

Watford

Newport

Luton

Bedford

Amersham

HighWycombe

Oxford

Milton Keynes

Chesterfield

Rotherham

Mansfield

Lincoln

LeamingtonSpa

EllesmerePort

Worcester

Gloucester

Cannock

Newcastle-Under-Lyme

Stafford

Crewe

Chester

Wigan

Norwich

Stevenage

Cambridge

Corby

Peterborough

RedditchNorthampton

Southend-on-Sea

Brentwood

Colchester

Basildon

Swindon

Cheltenham

Harlow

Watford

Newport

Luton

Bedford

Amersham

HighWycombe

Oxford

Milton Keynes

Chesterfield

Rotherham

Mansfield

Lincoln

LeamingtonSpa

EllesmerePort

Worcester

Gloucester

Cannock

Newcastle-Under-Lyme

Stafford

Crewe

Chester

Melton Mowbray

Wigston

Eastwood

Ilkeston

Rugeley

Stone

Halesowen

Telford

West Bromwich

Walsall

Dudley

KidderminsterSolihull

NuneatonHinckley

Burton uponTrent

Rugby

MANCHESTER

LEICESTER

SHEFFIELD

WOLVERHAMPTON

BIRMINGHAM

DERBY

LIVERPOOL

COVENTRY

MANCHESTER

SHEFFIELD

LIVERPOOL

BIRMINGHAM

LEICESTER

WOLVERHAMPTON

NOTTINGHAMNOTTINGHAMDERBY

COVENTRY

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SUTTONCOLDFIELD

NEWHALL WALK RETAIL PARKAND 69-101 THE PARADE

GRACECHURCHCENTRE

SUTTONCOLDFIELD

63-67 PARADE

PARADE, SUTTON COLDFIELD

RETAILING IN SUTTON COLDFIELD

Sutton’s strength and resilience stems from the backcloth of an extensive and largely prosperous catchment area, in conjunction with a compact and easy to use core shopping area; convenient and reasonably priced car parking, along with excellent public transport accessibility.

The town’s retail centre is focussed around Parade, Newhall Retail Park and Gracechurch Shopping Centre, which comprises circa 550,000 sq ft and attracts weekly footfall in excess of 130,000. Anchor tenants within the town include Boots, H&M and TK Maxx.

The Parade, which is pedestrianised, provides a vibrant ‘high street’ offer and accommodates a broad range of national retailers including Aldi, The Entertainer, Waterstones and Card Factory.

Demonstrating its commitment to Sutton Coldfield, M&G Real Estate recently announced it had enlisted the architecture firm Chapman Taylor – a regeneration specialist and renowned for its work on at St Pancras International, Heathrow’s Terminal 2 and 5’s retail section, Brent Cross shopping centre in London and MediaCityUK in Manchester – to draft conceptual plans for the future of Sutton Coldfield’s town centre.

GRA

CECH

URCH

SHO

PPIN

G C

ENTR

E

TRESSPASS

50 metres

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011

Sutton Coldfield

Experian Goad Plan Created: 22/05/2019Created By: Cushman and Wakefield

Copyright and confidentiality Experian, 2019. © Crowncopyright and database rights 2019. OS 100019885

PARADE, SUTTON COLDFIELD

DESCRIPTION

The property comprises two well configured retail units arranged over ground, basement and first floors. 67 Parade utilises ground and basement only.

SITUATION

The subject premises sit in a 100% prime position on the east side of Sutton Coldfield’s main pedestrianised retail thoroughfare, Parade. The property is directly opposite the main entrance to Centre Mall, a significant footfall driver to the immediate locality.

Lower Parade is the focal point for the entire town’s bus stops which is approximately 25 metres from the subject property.

Other retailers in the vicinity include Waterstones, Boots and Beaverbrooks.

To the northern end of Parade, a short distance from the property, Key Land Development and Urban Village are developing a £15m luxury residential complex. The development will boast 63 apartments in total and a new restaurant on the ground floor.

PARADE, SUTTON COLDFIELD

TENURE

63-67 Parade is held freehold as outlined in red on the Title Plan.

TENANCY

Unit Tenant Accommodation Area (sq ft) Area (sq m) Annual Rent (Zone A psf) Lease Start Break Option Lease End

Unit A 63-65 Parade Superdrug

Ground (retail) Ground (ITZA)

Ground Floor (ancillary) First Floor (ancillary) Basement (ancillary)

Basement Void (unused)

4,001 1,271 141 496

1,999 1,830

Total: 8,467

371.7 118.0 13.0 46.1

185.7 170.0

Total: 786.4

£110,000 (£80.50) 29/09/2018 29/09/2020 28/09/2023

Unit B 67 Parade HSBC

Ground (retail) Ground (ITZA)

First Floor (unused) Basement (ancillary)

3,468 1,073 484 1,491

Total: 5,443

322.2 99.7

44.96 138.5

Total: 605.4

£88,500 (£79.00) 31/07/2018 n/a 30/07/2023

Total 13,910 1,391.8 £198,500

50 metres

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011

Sutton Coldfield

Experian Goad Plan Created: 22/05/2019Created By: Cushman and Wakefield

Copyright and confidentiality Experian, 2019. © Crowncopyright and database rights 2019. OS 100019885

The property comprises two well configured retail units with potential asset management

angles on the upper parts (STP)

For indicative purposes only

PARADE, SUTTON COLDFIELD

COVENANT INFORMATION

A summary of the last three years of reported accounts for both tenants is set out below:

Superdrug Stores plc:

Superdrug is the United Kingdom’s second largest beauty and health retailer, currently operating stores in England, Scotland, Wales and Ireland.

Superdrug is owned by AS Watson, the retail division of the Hong Kong based conglomerate CK Hutchinson Holdings Limited.

HSBC Bank plc:

HSBC is one of the world’s largest banking organisations serving more than 37 million customers from 70 countries. The company has approximately 4,000 offices worldwide and is listed on the London, New York, Paris and Bermuda stock exchanges.

Y/E Y/E 30/12/2017 £’000

Y/E 30/12/2016 £’000

Y/E 30/12/2015 £’000

Sales Turnover 1,241,783 1,213,600 1,105,002

Pre-Tax Profit 92,934 80,385 56,842

Total Assets 753,222 745,502 690,928

Y/E Y/E 31/12/2018 £’000

Y/E 31/12/2017 £’000

Y/E 31/12/2016 £’000

Sales Turnover 16,670,000 19,760,000 20,641,000

Pre-Tax Profit 1,974,000 2,370,000 874,000

Total Assets 604,958,000 818,868,000 816,829,000

PARADE, SUTTON COLDFIELD

EPC RATINGSuperdrug – E HSBC – E

Available on request.

VATThe property has been elected for VAT. We anticipate that the transaction will be treated as a Transfer of a Going Concern (TOGC).

PROPOSAL

Offers sought in excess of £2,400,000, reflecting a net initial yield of 7.78%.

Subject to contract and exclusive of VAT. Yields are net of purchaser’s costs at 6.36%.

FURTHER INFORMATIONFor further information please contact:

Andrew Marshall +44 (0) 207 152 5073 andrew.p.marshall@cushwake.com

Fraser Ramage +44 (0) 207 152 5963 fraser.ramage@cushwake.com

Justin Quibell +44 (0) 121 697 7213 justin.quibell@cushwake.com

MISREPRESENTATION ACT: Cushman & Wakefield and AGL gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield and AGL as any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property. June 2019. Designed and Produced by Creativeworld Tel 01282 858200.

43/45 Portman Square, London W1A 3BG