WICKRETAIL PARKWICK KW1 5NW

CLASS 1 NON-FOOD

RETAIL PARKINVESTMENT

EXCEPTIONALLY WELL LET OPEN

SUMMARYINVESTMENT • Dominant Retail Park occupying a

prominent position on South Road, adjacent to a Lidl supermarket.

• Extensive and captive catchment population – over 53,000 people live within a 50 mile radius of the scheme (CACI).

• No competition – the nearest competing

retail park is located in Inverness, some

100 miles to the south of Wick.

• The scheme totals 60,715 sq ft and offers

240 car parking spaces.

• Excellent tenant line up – fully let to

Homebase, Edinburgh Woollen Mill, Carpetright, Argos, New Look, Pets at Home and Superdrug.

• Current passing rent of £684,096 per annum which equates to a low average rate of £11.27 per sq ft.

• 91% of the income is secured to tenants rated 5A1 by Dun & Bradstreet.

• Long WAULT of 9.1 years (8.6 years including break option).

• Heritable interest (Scottish equivalent to English freehold).

• Open Class 1 non-food consent.

• Asset management opportunities.

• We are instructed to seek offers in excess of £8,620,000, reflecting an attractive Net Initial Yield of 7.50%.

LOCATION

Wick is a Royal Burgh Town located on the eastern coast of Caithness in the north of Scotland. The town is located approximately 20 miles south east of Thurso and 100 miles to the north of Inverness. Caithness is one of the UK’s largest geographical regions and the areas principal towns, Wick and Thurso, are located in close proximity to each other.

The town is located on the A99-A9, the main trunk road linking John O’ Groats with southern Britain. The Far North railway line links Wick railway station with southern Scotland and Thurso. Wick John O’Groats Airport is on Wick’s northern outskirts and offers regular scheduled flights to Aberdeen and Edinburgh. The airport experienced a 21.7% growth in passenger numbers during 2013 due to increased activity in the energy sector.

Wick is the hub for the wider Caithness area and as such it provides various administrative and community facilities including the Local Council Offices, Wick Sheriff Court, Caithness General Hospital, Wick Carnegie Library and a public swimming pool.

Wick is also a major tourist attraction with its historic castle, marina and world famous Pulteney Whisky Distillery.

SITUATION

Wick Retail Park is situated to the south of the town centre in a highly prominent position, adjacent to the A99 South Road. The A99 provides direct access to the town centre to the north and Inverness to the south. Immediately adjacent to Wick Retail Park is a solus unit occupied by Lidl.

FORT WILLIAM

WICK

JOHN O' GROATS

KIRKWALL

NEWTON HILL

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ANCI

S ST

REET

HIGH STREET

GEO

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STRE

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HENRIETTA STREET

VICTORIA PLACE

NORTHCOTE STREET

KENNEDY TERRACE

HARR

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ROA

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HARR

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HIL

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H A

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WICK

WICK BAY

A882

A99

A99

HOSPITAL RD

BRIDGE STREET

COAC

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OAD

A99

WICK JOHNO'GROATSAIRPORT

WICKRETAIL PARK

Scrabster to StromnessFerry Route

Gills Bay to St Margaret’s HopeFerry Route

Town Centre

Location & North

IN WICK

RETAIL WAREHOUSE PROVISION

Wick Retail Park is the only retail park in the town and provides the only retail warehousing offer for approximately 100 miles, the retail park is therefore very dominant on its extensive ‘captive’ catchment.

RETAIL

RETAIL PROVISION WITHIN THE TOWN INCLUDES:

Traditional High Street/Town Centre

The traditional retail core offers a mixture of local and national covenants including Boots, Ladbrokes, M&Co, Poundstretcher, The Original Factory Shop & Scottish Hydro Electric.

Supermarkets

There are three modern supermarkets within Wick, the Lidl adjacent to the retail park, a 50,000 sq ft Tesco superstore located on the A99 to the north of the town centre and a smaller Co-op on Thurso Road at the town’s western periphery.

Wick Retail Park provides the only retail warehousing within approximately 100 miles.

“ “

CATCHMENT

The town draws on a significant catchment area, with over 53,000 people resident within a 50 mile radius (CACI). Wick also experiences large levels of passing trade from persons travelling to the Orkney and Shetland Isles, as well as a significant influx of tourists during the summer months.

Due to the lack of competing shopping locations, as demonstrated by the table below, Wick Retail Park forms the central shopping destination for the surrounding region, therefore drawing from a wide catchment.

Wick Retail Park is dominant on a far reaching and captive catchment population of over 53,000.“ “

RETAILERDISTANCE TO

NEAREST STOREADDRESS

Homebase 103 miles Unit 10, Inverness Retail Park, Inverness

EdinburghWoollen Mill

17 miles John O’Groats(T/A John O’ Groats Knitwear Co)

Carpetright 102 miles Unit 2, Interchange Retail Park, Inverness

Argos 103 miles Unit 9, Inverness Retail Park, Inverness

New Look 92 miles Unit 2, 16-17 High Street, Dingwall

Pets at Home 103 miles Unit 7, Inverness Retail Park, Inverness

Superdrug 82 miles 26 High Street, AlnessKW1 5NW 10 MILE RADIUS - POPULATION: 9,802

KW1 5NW 25 MILE RADIUS - POPULATION: 25,981

KW1 5NW 50 MILE RADIUS - POPULATION: 53,924

DESCRIPTION

Wick Retail Park comprises 60,715 sq ft of modern Open Class 1 non-food retail warehouse accommodation which was developed in 2005/6. The purpose built retail scheme comprises 7 units which vary in size from 2,680 sq ft – 25,000 sq ft. The units front on to a customer car park which provides 240 spaces, reflecting an excellent ratio of 1:253 sq ft.

GARDEN CENTRE

A99 SOUTH ROAD

UNIT 1 UNIT 2 UNIT 3 UNIT 4 UNIT 5 UNIT 6 UNIT 7

POTENTIALPOD

POTENTIALEXTENSION

WICK RETAIL PARK ASSET MANAGEMENT INITIATIVES

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HOSPITAL ROAD

EPC

The units have been given the following EPC* ratings:

SITE

The site area extends to approximately 5.2 acres, offering a site coverage of 28%.

TENURE

Heritable (Scottish equivalent to English Freehold).

UNIT TENANT EPC RATING

1 Homebase G

2 Edinburgh Woollen Mill G

3 Carpetright F

4 Argos G

5 New Look G

6 Pets at Home G

7 Superdrug F

* Please note that the EPC regulations and bandings differ between Scotland and England. Whilst the Energy Act 2011 (England) is expected to introduce regulations in 2018 to prohibit the letting of properties in England and Wales with a banding of ‘’F’’ and ‘’G’’, there are no plans to introduce similar regulations to Scotland and if they did the banding would be different because of the way the CO2 usage is calculated.

PLANNING

The Park has an Open Class 1 non-food retail planning consent for 75,640 sq ft.

The Highland Council granted planning permission (reference 04/00577/FULCA) for the “Erection of retail development, car parking and associated infrastructure and landscaping” on 9 May 2005. The consent was subject to the following relevant conditions:

• The gross floor area shall be 75,640 sq ft. The creation of mezzanine flooring in any of the units shall not be permitted without the written approval of the Council.

• The use of the retail units shall be limited to the sale of non-food goods.

As the Park currently provides 62,418 sq ft* of gross floor area, there may be an opportunity to develop a further 13,219 sq ft of gross floor area.

*Measured area

TENANCY

The current passing rent for Wick Retail Park is £684,096 per annum which equates to a low average rate of £11.27 per sq ft based on a total floor area of 60,715 sq ft. The weighted average unexpired lease term is 9.1 years (8.6 years to the break).

The property is let to the following tenants on full repairing and insuring terms:

Fully let to strong national covenants with a long weighted average unexpired lease term of 9.1 years.“ “

UNIT TENANTAREA

(SQ FT)LEASE TERM

LEASE START

LEASE EXPIRY

NEXT RENT REVIEW

BREAK OPTION

PASSING RENT(PER ANNUM)

PASSING RENT

(PER SQ FT)COMMENTS

1 Homebase Limited 25,000* 20 21-Apr-06 20-Apr-26 21-Apr-16 - £246,250 £9.85Tenant has installed a trading mezzanine of 9,110 sq ft.

2 The Edinburgh Woollen Mill Limited 2,680* 20 08-May-06 07-May-26 08-May-11 08-May-16 £33,500 £12.50 2011 rent review outstanding.

3 Carpetright Plc 4,196* 15 21-Aug-06 20-Aug-21 21-Aug-16 - £62,940 £15.00

4 Argos Limited 10,000* 15 21-Apr-06 20-Apr-21 21-Apr-16 - £106,000 £10.60Tenant has installed a storage mezzanine of 4,300 sq ft.

5 New Look Retailers Limited 7,480* 15 24-Apr-06 23-Apr-21 24-Apr-16 - £93,500 £12.50

6 Pets at Home Limited 6,102* 15 25-Sep-06 24-Sep-21 25-Sep-16 - £79,326 £13.00

7 Superdrug Stores Plc 5,257 15 28-Apr-06 27-Apr-21 28-Apr-16 - £62,580 £11.90

Totals 60,715 £684,096

* Floor area is stated in the leases for rent review purposes. Measured areas can be provided on request.

36

12

14

15

9

59

Homebase Limited

The Edinburgh Woollen Mill Limited

Carpetright Plc

Argos Limited

New Look Retailers Limited

Pets at Home Limited

Superdrug Stores Plc

% INCOME BY TENANT

The Park has an exceptional tenant line-up, with 91% of the income secured against D&B rated 5A1 covenants, which are classed as having a ‘minimum’ risk of business failure.

INFORMATIONCOVENANT

Exceptional tenant line-up, with 91% of the income secured against D&B rated 5A1 covenants.

“ “

TENANTD&B

RATINGYEAR END

SALESTURNOVER

(000’s)

PROFITBEFORE TAX

(000’s)

TANGIBLENET WORTH

(000’s)

Homebase Ltd 5A1 02/03/2013 £1,355,013 - £6,702 £433,722

The EdinburghWoollen Mill Ltd

5A1 02/03/2013 £169,713 £23,130 £187,301

Carpetright Plc 2A2 27/04/2013 £457,600 - £5,100 £4,500

Argos Limited 5A1 02/03/2013 £3,752,634 £84,662 £1,249,775

New LookRetailers Ltd

5A1 30/03/2013 £1,248,464 £121,909 £1,143,242

Pets at Home Ltd 5A1 28/03/2013 £586,350 £77,707 £382,537

Superdrug Stores Plc 5A1 29/12/2012 £1,021,021 - £3,977 £106,905

OPPORTUNITIESASSET MANAGEMENT

• Potential to improve the rental tone through asset management – low average rate per sq ft of £11.27.

• Potential to extend units 2 & 3 into the rear service yard (subject to planning) – there is an opportunity to develop an additional

13,219 sq ft under the current planning consent.

• Attract new occupiers to the Park – We are aware of active requirements for the park from major national retailers.

• Potential to develop a pod unit within the car park (subject to planning).

VAT

The property has been elected for VAT purposes and it is envisaged that the sale will be treated as a TOGC.

PROPOSAL

We are instructed to seek offers in excess of £8,620,000, subject to contract and exclusive of VAT. A purchase at this level provides an attractive Net Initial Yield of 7.50%, net of acquisition costs of 5.80%.

CONTACT

For all enquiries, please contact:

DOUGLAS WOOD 0141 227 466107826 947 231douglas.wood@montagu-evans.co.uk

Important notice relating to the Misrepresentation Act 1967 and the Property Misdescriptions Act 1991. Montagu Evans for themselves and their client give notice that: 1. The information contained in these particulars is for guidance to intending purchasers, licensees or any other third parties and they are for general information purposes only and will be used at the individual purchaser’s own risk. 2. All reasonable endeavours have been taken to ensure the accuracy of information, however, there is no guarantee or warranty as to the accuracy or completeness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties). No liability will be accepted for any errors or omission, including any inaccuracies or typographical errors. 3. Any interested purchasers, licensees or any third parties should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and specific details in the particulars are correct and accurate especially in relation to floor areas and other measurements through inspection or other means, as appropriate, and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject matter of these particulars. 4. No investigations of any issues concerning pollution and potential land, building, air or water contamination have been undertaken. Prospective purchasers, licensees or any third parties must undertake their own enquiries and satisfy themselves in this regard. 5. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. May 2014.

WICKRETAIL PARKWICK KW1 5NW