High Street Retail Investment

221 – 233 HIGH STREET BERKHAMSTEDHP4 1AD

221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD

221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD

Investment Considerations ■ Located in the attractive commuter town of Berkhamsted. ■ Excellent rail connections to London Euston with services every 15 minutes. ■ AWULT of 7.32 years to expiry and 6.07 years to breaks. ■ Large car park to the rear which could present future redevelopment opportunities. ■ No retail vacancy within Berkhamsted. ■ Total Passing Rent of £269,516 pa. ■ Significant recent rental uplifts, with a further review in March 2015. ■ Excellent further rental growth prospects, evidenced by recent transactions

in the immediate vicinity. ■ We are instructed to seek offers in excess of £4,100,000 (Four Million, One Hundred

Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.21% and a reversionary yield of 6.52% in March 2015.

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A4251 Gossoms End

A4251 High Street

A4251 Londons Road

A416 Kings Road

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M20

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M11

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Harlow

Bishop’sStortford

EppingPotters Bar

Knebworth

Hertford

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Aylesbury

Dunstable Stevenage

Hatfield

Dartford

Bromley

Gravesend

Gillingham

Shoreham

Rochester

Sittingbourne

Croydon

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Romford

Sevenoaks

Tonbridge

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Wells

Maidstone

Snodland

Sheerness

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East GrinsteadCrawley Three Bridges

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Horsham

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HemelHempstead

Chesham

St Albans

HighWycombe

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WembleyUxbridge

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Rickmansworth

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Woking

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HarefieldHarrow

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Windsor

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WokinghamBracknall

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Location

Berkhamsted is a historic market town located in the Chiltern Hills to the west of the county of Hertfordshire. The town boasts an excellent mix of leisure and retail occupiers as well as being a popular residential area benefiting from its short commute to London. The town is situated approximately 40 km (25 miles) north west of London and 19 km (12 miles) north west of Watford.

The area benefits from excellent communications with Berkhamsted being located on the London Midland train line which provides regular services into London and connections to the London Underground network.

Road communications are good with Berkhamsted being located 12 km (7 miles) west of the M1 Motorway (J8) providing access to London, the North and the national motorway network. The town is also located 12 km (7 miles) north west of the M25 (J20).

London Luton Airport (currently ranked as the fifth busiest in the UK) is situated approximately 27 km (16 miles) to the north east providing flights to over 100 destinations with over 9.7 million passengers using the airport in 2013. London Heathrow, Gatwick and Stansted airports can all be accessed via the M25.

1 Waitrose Supermarket

4 M&S Simply Food

2 Berkhamsted School

5 Town Hall

3 Library

6 Tesco Metro

7 Police Station

Subject Property

221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD

Berkamsted Travel TimesCrossrailIn 2014, the Transport Secretary announced potential plans for a new branch of Crossrail to be added to the network that would connect Berkhamsted directly with central London and Canary Wharf.

BY TRAIN

Milton Keynes Central 25 mins

London Euston 31 mins

London St Pancras International 51 mins

London Gatwick Airport 89 mins

London Heathrow Airport 91 mins

BY CAR

St Albans 24 mins

Luton 34 mins

Milton Keynes 46 mins

London 60 mins

Oxford 72 mins

AIRPORT DRIVE TIMES

London Luton 27 mins

London Heathrow 28 mins

London Stansted 51 mins

London Gatwick 64 mins

Birmingham 99 mins

DemographicsBerkhamsted is an affluent and attractive market town benefiting from its location within a commutable distance of London. The population within 5 miles of the town is approximately 128,000. 34.3% of residents (aged between 16-74) are employed in higher managerial, administrative and professional occupations compared to the national average of 20.6%. The spending power within the local area is evidenced by the 35% of households within a 5 mile radius of the town that boast an annual income of £50,000 or higher.

Retailing in BerkhamstedBerkhamsted is a popular commuter town offering an attractive high street with a mix of retailers from local covenants to multi-nationals. There are a high number of multiple national occupiers within close proximity to the subject property including Barclays, HSBC, Boots, Carluccio’s, Bill’s, WH Smith, Waitrose, Costa Coffee, Fat Face and Tesco.

Marks & Spencer have recently taken a lease on a unit to the west of the property on the high street.

The current rental levels within the parade offer excellent prospects for rental growth with recent lettings transactions in the immediate vicinity including:

195 High Street, new letting to Mint Velvet at a rent reflecting £86 ZA.

248 High Street (directly opposite), new letting to Jojo Mamman Bebe in June 2013 at a rent reflecting £84.44 ZA.

221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD

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

221 – 233 HIGH STREET, BERKHAMSTED HP4 1ADO

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Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:561© Crown Copyright, ES 100004106. For identification purposes only. right of way

SituationThe property is situated on the southern side of the High Street at its junction with Cowper Road. Located in a strong retailing pitch on the edge of the town’s prime retail supply.

DescriptionThe property consists of a purpose built building known as Callard House arranged over ground, first, second and third floors. There is an additional two storey unit that forms part of the subject property which acts as an infill between Callard House and the adjacent property to the east.

The ground floor of Callard House comprises six retail units. Units 227 – 229 have been combined to form one unit. The upper floors comprise flats sold off on long leases. Access to these flats is from a separate entrance located at the western end of the property.

There is a large car park to the rear of the property accessed from Cowper Road comprising 58 spaces.

Service ChargeCallard House Management Limited manages the building and the company will be transferred to the purchaser upon completion. There is approximately £105,000 currently held within a reserve account for long term expenditure, with approximately £15,100 in a current account for day to day expenditure. There is also a contribution from the Retail tenants.

Tenancy Schedule

Address Tenant Floor Area (sq m)

Area (sq ft)

Lease Start Lease Expiry

Break Next Review

Rent Rent psf (ITZA)

Comments

Shop 221 B’Smart Dry Cleaners Ltd

GF Retail 70.5 758 25/12/2014 24/12/2024 25/12/2019 25/12/2019 £40,000 £64.01 Lease in Solicitors hands. Will be finalised by completion of saleUpwards only rent review Director Guarantee3 car parking spaces demised

(ITZA) 53.7 578

GF Storage 10.1 109

Total 80.6 867

Shop 223 Lisa Kay Ltd GF Retail 55.2 594 20/09/2009 19/09/2019 £31,375 £64.28 2 car parking spaces demisedTenant looking to assign. Interest from a tenant willing to pay a premium. Further information available upon request

(ITZA) 42.5 457

GF Storage 5.2 57

Total 60.4 651

Shop 225 Traveltime World Ltd GF Retail 56.0 603 25/03/2010 24/03/2020 25/03/2015 £19,000 £36.88 Projected rent review at 25/03/2015 projected at £32,329 pa2 car parking spaces demised

(ITZA) 42.9 461

GF Storage 5.2 56

Total 61.2 659

Shop 227

Shop 229

Coral Estates Ltd GF Retail 105.9 661 21/07/2004 20/07/2019 £68,500 £65.90 Rental level determined at last rent review was 110% of the market rent as outlined in the lease5 car parking spaces demised

(ITZA) 81.4 876

GF Storage 12.4 134

Total 118.3 1,274

Shop 231 Gorgeous (B'sted) Ltd GF Retail 57.0 613 10/12/2014 24/12/2024 10/12/2020 10/12/2019 £32,160 £64.86 Upwards only rent review2 car parking spaces demised(ITZA) 43.2 465

GF Storage 5.2 56

Total 62.2 669

Shop 233 Christopher John Hamilton (t/a Hamiltons)

GF Retail 47.1 507 24/09/2014 23/09/2024 24/09/2019 £33,500 £75.90 Director Guarantee and rent deposit of £13,5902 car parking spaces demised

(ITZA) 38.6 415

GF Storage 10.1 108

Total 57.2 615

Roofspace Orange Telecommunications Group Ltd

PCN equp 27/02/2002 04/05/2022 27/02/2017 £15,786 Orange have vacated the site RR Indexed

Roofspace Arqiva Ltd PCN equp 19/04/2004 18/04/2024 6 month rolling

18/04/2014 £13,803 Assigned from EE Ltd Tenants right to break on 6 month rolling break. RR Indexed

Callard House

Callard House residential 01/07/2006 30/06/2131 £3,692

Car Parking Spaces

Various (11) £11,700

Total 439.9 4,735 £269,516

CovenantCoral is part of the Gala Coral Group with over 1,700 betting shops across the UK. Coral Estates Ltd in September 2013 reported a turnover of £27,297,000.

Orange Telecommunications Group Ltd is owned by EE Ltd with over 570 stores across the UK. It recorded in December 2013 a total net worth of £9,871,538.

Arqiva is a leading communications infrastructure and media services company. It employs over 2,000 people across the UK. Arqiva Ltd recorded in June 2014 a turnover of £559,000,000, a pre-tax profit of £204,000,000 and a total net worth of £829,400,000.

TenureFreehold.

EPCs

Unit Assessment Rating

221 82 D

223 77 D

225 65 C

227-229 61 C

231 77 D

233 80 D

VATThe property will be subject to VAT although we anticipate the sale will be treated as a Transfer of Going Concern.

221 – 233 HIGH STREET, BERKHAMSTED HP4 1AD

Proposal Offers sought in excess of £4,100,000 (Four Million, One Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 6.21% and a reversionary yield of 6.52% in March 2015.

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 02.15

Andy Pointon020 7543 6720andy.pointon@allsop.co.uk

For further information or to make arrangements for viewing please contact:

Jonathan Butcher020 7543 6755jonathan.butcher@allsop.co.uk

Scott Tyler020 7543 6719scott.tyler@allsop.co.uk www.allsop.co.uk

Asset Management & Further Development ■ Development of the car park (STP)

■ Adding further storeys of residential (STP)

■ Improve tenant mix to help continue strong rental growth

■ Settle imminent rent review on unit 225