FREEHOLD PRIME RETAIL & RESIDENTIAL INVESTMENT33-34 MARKET SQUARE, BROMLEY BR1 1NF

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INVESTMENT SUMMARY

• Prime location in pedestrianised Market Square.• Let to Costa Ltd for a term certain of 9.8 years.• 3 large flats on AST’s with reversionary rents.• Planning consent granted for an additional 3

bed flat.• A combined current rent of £113,800 per

annum.• Guide Price £2,450,000

BROMLEY

Bromley is the administrative centre of the LondonBorough of Bromley and is situated some 13 milessouth-east of central London and 7 miles fromCroydon. The town is an important commercial centreand commuter town.

Road communications are good with the A21 linkingwith Junction 4 of the M25 about 7 miles to the eastand central London to the north-west.

Rail services are excellent with frequent services intoLondon Victoria with a fastest journey time of around16 minutes.

The nearest international airports are Gatwick andLondon City.

The borough comprises a population of 309,400people (2011 Census) which has increased from295,500 people since the previous Census in 2001.

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33-34 MARKET SQUARE, BROMLEY BR1 1NF

RETAILING IN BROMLEY

The prime retail pitch in Bromley is focused on the Glades shopping centre and the pedestrianised sections of High Street and Market Square.

The Glades extends to 463,000 sq. ft. over two levels and is anchored by Marks & Spencer, Debenhams and Boots the Chemist. The centre comprises 135shops in total and provides car parking for 1,530 vehicles. National multiple retailers with representation in the scheme include New Look, River Island, Zara,Massimo Dutti, Superdry, Joules and H&M among others. Prime Zone A rents are circa £220.00 per sq.ft.

The pedestrianised section of High Street runs parallel with the Glades. Multiple retailers located on High Street include Primark, Topshop, Marks & Spencer,Next, Clarks and Gap with entrances at either end into the Glades providing a prime shopping loop.

The High Street also hosts an open air market that operates three days a week, significantly boosting footfall in the locality.

333-34 MARKET SQUARE, BROMLEY BR1 1NF

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The premises are located on a prominent corner position on Market Square,situated close to Primark at the northern end of High Street – It is highlyvisible from the main entrance /exit of the Glades shopping centre.

The property is situated on the north-east corner of an island block with retailfrontages to both the pedestrianised and non-pedestrianised sections ofMarket Square.

The location is indicated on the Goad plan extract.

SITUATION

33-34 MARKET SQUARE, BROMLEY BR1 1NF

DESCRIPTION

The property comprises well configured retail and residential space arranged overfive floors.

The retail accommodation is arranged over the ground floor and basement. Theground floor provides a sales area, an office and WCs to the rear. The basementprovides predominantly sales space but incorporates customer WCs and stores.The premises benefit from a prominent frontage onto the pedestrianised section ofMarket Square together with a return frontage. The current occupier has createdan external seating area to the front of the unit.

The residential accommodation is arranged over first and second floors andcomprises of a combination of three self contained flats (33a, 34a & 34b). The flatsare accessed from the centre of the island block, through a walkway.

The ground floor and basement is let to Costa Ltd, who have been inoccupation since 2001. The current lease commenced in July 2011 for a term of10 years expiring in July 2021 at a rent of £85,000 p.a.

Upon expiration of the lease in July 2021, a new reversionary lease has beencompleted, commencing in July 2021 and expiring March 2028 at a rent of£85,000 pa., incorporating an upward only market rent review on 25 March2023. Securing a term certain of 9.8 years to Costa Ltd.

Costa Limited (01270695) is the largest and fastest growing coffee brand in theUK and is wholly owned subsidiary of Whitbread plc. Costa currently tradesfrom in excess of 2,121 units throughout the UK and 1,280 internationally.Costa Ltd is rated by Experian as ‘Very Low Risk’. For the year ending March2017, the company had a turnover of £886.4 million and a Pre-tax profit of£103.4 million.

533-34 MARKET SQUARE, BROMLEY BR1 1NF

TENURE

TENANT COVENANT

Costa Coffee Areas NIA (m²) NIA (sq. ft.)

Ground Floor Sales 128.4 1,382

ITZA 1,082 units

Basement Sales 45.1 585.5

Basement Ancillary 45.1 585.5

RETAIL DIMENSIONSThe retail aspect of the property has the following approximate dimensions andnet floor areas:-

The property is held freehold.

RETAIL TENANCY

EPCThe Energy Performance Certificate is available upon request.

33-34 MARKET SQUARE, BROMLEY BR1 1NF

RESIDENTIAL TENANCIES

Currently the upper parts contain 3 self contained flats with the following approximate gross internal areas from plans:-

FLAT FLOOR DESCRIPTION GIA (m²) GIA (sq.ft.)

TENURE RENT(£pcm)

RENT(£pa.)

33a 1st & 2nd Arranged over first floor and second floor, the flat contains two doublebedrooms, living room and bathroom.

73.0 784 AST – TenantHolding Over

700 £8,400

34a 1st Arranged entirely over first floor, the flat comprises of two doublebedrooms, kitchen, bathroom and living room.

77.9 839 AST – TenantHolding Over

800 £9,600

34b 2nd Arranged entirely over second floor, the flat comprises of two doublebedrooms, kitchen, two bathrooms and a spacious living room.

85.0 915 AST – TenantHolding Over

900 £10,800

ProposedFlat

3rd Arranged entirely over third floor, the flat will be made up of three doublebedrooms, kitchen, bathroom and a large living room. GIA scaled fromproposed plans **

97.3 1,047 N/A N/A N/A

TOTAL £2,400 £28,800

The current lettings were completed some years ago and rents are all belowmarket rent.

A similar 2 bedroom apartment positioned within this Island block is currentlyon the market at a rent of £1,000 pcm.

A neighbouring apartment is currently for sale at a rate of £400.40 persq. ft.

Residential sales in the David Greig building opposite are achieving inthe region of £530-550 sq. ft.

RESIDENTIAL VALUES ON MARKET SQUARE

33-34 MARKET SQUARE, BROMLEY BR1 1NF

Planning consent has been granted in the attic space to convert it into a three bedroom flat.We can provide full plans, a copy of the planning consent and details of required work uponrequest.

PLANNING CONSENT & RESIDENTIAL CONVERSION EPC

Energy Performance Certificates are available for all three flatsupon request.

Proposed Third Floor

Bromley

Experian Goad Plan Created: 26/04/2018Created By: Smith Price

50 metres

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011Copyright and confidentiality Experian, 2017. © Crown copyright and

database rights 2017. OS 100019885

MISREPRESENTATION ACTThese particulars are intended only as a guide to prospective purchasers to enable them todecide whether to make further inquiries with a view to taking up negotiations but they areotherwise not intended to be relied upon in any way or for any purpose whatever andaccordingly neither their accuracy nor the continued availability of the property is in any wayguaranteed and they are furnished on the express understanding that neither the agent northe vendor is to be, or come, under any liability or claim in respect of their contents. Thevendor does not hereby make or give nor does any Partner or employee of Smith Price LLPhave any authority to make or give any representation or warranty whatsoever as regards theproperty or otherwise. Any prospective purchaser or lessee or other person in any wayinterested in the property should satisfy himself by inspection or otherwise as to thecorrectness of each statement contained in these particulars. In the event of the agentssupplying any further information or expressing any opinions to a prospective purchaser,whether oral or in writing, such information or expression of opinion must be treated as givenon the same basis as these particulars. These particulars do not form part of any contractand, except where expressly otherwise stated, offers will be considered only subject tocontract.

Smith Price LLP is a limited liability partnership registered in England and Wales.Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN

PROPOSAL

• This is an opportunity to purchase a prime mixed use property in a major London suburboutside the entrance of the Glades shopping centre. The property is well let to aninternational multiple retailer for an assured term of 9.8 years and has 3 reversionaryupper floor residential flats. The property benefits from development potential withthird floor planning consent granted.

• For the freehold interest subject to the lettings, we are instructed to seek offers in the regionof £2,450,000 subject to contract to show a net initial yield of 5.00% on the Costa Coffeeand £396 sq. ft. on the residential accommodation allowing for purchasers costs at 6.37 %.

• The property is registered for VAT and the sale will be by way of TOGC

FURTHER INFORMATION

For further information please contact:

Charlie Taylor020 7318 5762charlietaylor@smithprice.co.uk

SUBJECT TO CONTRACT

Smith Price LLP | 5/7 John Princes Street | London W1G 0JN | 020 7409 2100

FREEHOLD PRIME RETAIL & RESIDENTIAL INVESTMENT33-34 MARKET SQUARE, BROMLEY BR1 1NF

John Loveday020 7318 5753johnloveday@smithprice.co.uk

Stephen Powell020 7318 5751stephenpowell@smithprice.co.uk