KidderminsterWest Midlands DY10 1EJ

Town Centre Shopping Centre Opportunity gva.co.uk/6552

Wyre Forest Leisure Centre

Kidderminster College

Weavers Wharf

Rowland Hill Shopping Centre

The Swan Shopping Centre

●●

●●

Investment Considerations

●● A prominently situated Shopping Centre in the heart of Kidderminster town centre fronting the prime retail pitch.

●● Recently refurbished covered scheme comprising 21 units.

●● A total net lettable floor area of approximately 3,956 sq m (42,567 sq ft).

●● Let to 17 tenants currently producing a gross income of £521,135 per annum.

●● Average weighted unexpired lease term of circa five years.

●● National multiple retailers provide 60% of gross income.

●● Numerous asset management and leasing opportunities to increase value.

●● We are instructed to seek offers in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds) reflecting a net initial yield of 11.94% after acquisition costs of 5.8% and landlords current shortfalls.

LocationKidderminster is a historic market town in the Wyre Forest district of Worcestershire with a primary catchment population of 129,000. The town is located approximately 18 miles (29 km) south west of Birmingham and 14 miles (23 km) north of Worcester.

Kidderminster’s catchment population is moderately affluent, ranking 75 of the PROMIS Centres (group of 200 centres) on the PMA Affluence Indicator. Census results show that Kidderminster contains a significantly above average proportion of adults within social group C2 (which includes those in skilled manual employment) and an above average car ownership with a particularly high proportion of two car households.

Employment within the town is dominated by the service sector industries. Kidderminster College and Birmingham Metropolitan College have recently invested £10 million in a new Academy which opened late 2012 in the town centre thereby increasing the number of new students by approximately 1,000.

The town benefits from good communication with the M5 approximately 8 miles (13 km) to the east, accessed via the A448. The M5 motorway in turn provides access to the M42 motorway, the M6 motorway and the national motorway network surrounding Birmingham.

The town’s total retail floor area is estimated at 680,000 sq ft and includes three shopping centres; Rowland Hill Shopping Centre, Weavers Wharf Shopping Park and The Swan Centre. The town’s traditional high street pedestrian flow is along Vicar Street fronting Rowland Hill Shopping Centre.

Situation Rowland Hill Shopping Centre occupies a prominent position in the heart of Kidderminster’s town centre. The scheme is bounded by the pedestrianised Vicar Street to the west and Worcester Street to the east. These streets are regarded as the town’s main retail thoroughfares.

The shopping centre benefits from pedestrian street access off both Vicar Street and Worcester Street. Rowland Hill’s Vicar Street entrance is linked to Weavers Wharf via a short walkway that crosses the River Stour and allows shoppers the convenience of using its car park.

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Kidderminster

45 metres

GVA 9/4/2013

ROWLAND HILL

SHOPPING CENTRE

Lower Ground - Vicar Street

Description Named after Sir Rowland Hill, creator of the Penny Postage Stamp, the property is a covered scheme developed in the late 1970’s. It comprises 17 retail units within the covered mall area and four further units with external frontage onto Vicar Street.

The scheme provides a total net lettable area of approximately 3,956 sq m (42,567 sq ft), which includes retail trading area and upper floor storage. Floor areas are contained within the Tenancy Schedule.

Main access to the scheme is from Vicar Street via an internal escalator and the secondary access is from ground level Worcester Street where an additional two retail units have frontage.

The servicing area is at basement level and is accessed from Oxford Street.

Refurbishment The shopping centre was comprehensively refurbished in 2012 to a high specification, and included the following:-

●● New external cladding

●● New enhanced signage to both entrances

●● New floor surface

●● Refurbishment of entrance areas

●● Automatic doors to both entrances

●● New internal and external lighting

●● Relocation of shopping centre toilets

●● Improved secure loading

TenureThe subject property is held leasehold from Wyre Forest District Council for a term of 125 years from 9 June 1978. The current rent payable is £57,500 per annum, and is subject to a 5 yearly upward or downward rent review pattern.

The head rent is calculated as 8% of the estimated rental value. A copy of the headlease is available on the Data Room website.

Tenancies The shopping centre is underlet to 17 tenants and there are four vacant units.

●● The current gross income is £521,135 per annum

●● The current net income less Head Rent and shortfalls is £315,874 per annum

●● The estimated gross rental value is £514,785 per annum

The average weighted unexpired lease term is circa five years and circa 60% of the gross income is secured by national multiple retailers. Dun & Bradstreet Compact Reports are available on the Data Room website.

Please refer to the Tenancy Schedule which includes rates, service charge and insurance information.

ADDRESS & OCCUPIER LEASE DETAILS RENT AREAS OCCUPATIONAL COSTS

CommentsUnit Tenant Lease Start Lease EndBreak Date

Current Gross Rent

(£ p a)

Passing Rent Zone

A Rate (£ per sq ft)

ERV (£ p a)

ERV Zone A Rate

(£ per sq ft) Area ITZA RATES (£)

RATES PAYABLE

(UBR 47.1p) (£)

SERVICE CHARGE

(£) Insurance

(£)

LANDLORDS SHORTFALLS

(£)

Unit 1 Photographic Retail 2008 Ltd t/a Max Spielmann

09-Aug-12 08-Aug-22 08-Aug-17 11,000 39.01 8,460 30.00 282 14,000 6,594.00 2,882.78 137.35 Half rent from 9/8/12-8/8/14 (£5,000).

Unit 2 Santander UK Plc 10-Aug-12 25-Dec-20 47,500 48.22 29,550 30.00 985 46,000 21,666.00 20,067.07 956.12 21 months rent free from 10/8/12. Rent commencement 9/5/2014.

Unit 3 Sally Salon Services Ltd 11-Apr-12 10-Apr-22 29,500 46.38 19,080 30.00 636 30,250 14,247.75 11,451.28 545.61 Rent capped at £37,500 pa at April 2017 rent review.

Unit 4 & Part Unit 5

Jonathan Banner and Ann Banner t/a AJ's

31-Aug-12 28-Feb-14 25,000 33.60 22,320 30.00 744 37,500 17,662.50 19,513.62 929.75 20,443.37 Rent inclusive of service charge and insurance rent.

Unit 5 VACANT 15,150 30.00 505 21,750 10,244.25 4,126.84 196.62 14,567.71

Unit 6A Claire's Accessories UK Ltd 10-Oct-10 09-Oct-20 10-Oct-15 22,000 37.93 17,400 30.00 580 29,500 13,894.50 9,948.12 473.99 10/10/12 – 9/10/13 at 3/4’s rent (£16,500) . 6 months rent free if the tenant doesn’t exercise the break option. 6 months notice on the break option.

Unit 6b Customer Toilets 5,000 2,355.00 1,858.44 88.55 88.55 Service charge recoverable.

Unit 7 First Choice Retail Ltd 28-Nov-06 27-Nov-16 30,000 55.56 16,200 30.00 540 30,000 14,130.00 11,669.92 556.03

Unit 8 VACANT 16,740 30.00 558 26,500 12,481.50 6,060.99 288.78 18,831.27

Unit 9 VACANT 18,840 30.00 628 28,250 13,305.75 9,210.22 438.83 22,954.80

Unit 10 VACANT 18,840 30.00 628 28,250 13,305.75 9,018.90 429.72 22,754.37

Unit 11 Roman Originals Plc 25-Feb-13 See comments

See comments

12,000 19.39 18,570 30.00 619 30,250 14,247.75 8,909.58 424.50 23,581.83 Tenancy at Will. £1,000 per month inclusive of rent, insurance, rates and service charge.

Unit 13B Premier Shoe Repairs Ltd 17-May-13 16-May-28 12,500 54.35 6,900 30.00 230 11,250 5,298.75 1,585.14 75.53 Half rent from 17/5/13 - 16/5/2014 (£6,250). Guarantee from John Carney for the first five years.

Unit 14 Partners The Stationers Ltd (t/a Ryman’s)

23-Oct-12 22-Oct-13 See comments

4,000 2.97 40,470 30.00 1,349 65,500 30,850.50 21,290.08 1,014.40 18,304.48 Pay a total of £4,000 pa for rent and service charge. Rolling break option on one months notice.

Unit 14 (1st Floor)

Centre Managers Office 931 5,903.28 281.26 281.26 Service charge recoverable.

Unit 15/16 Caversham Trading Ltd (t/a Brighthouse)

30-Sep-08 29-Sep-18 30-Mar-14 50,000 33.78 44,400 30.00 1,480 58,500 27,553.50 29,953.68 1,427.19 5,953.68 6 months break notice. Service charge capped at £24,000.

Unit 17 GR and MM Blackledge Plc (t/a Bodycare)

25-Jun-99 24-Jun-14 43,000 38.67 33,360 30.00 1,112 45,750 21,548.25 33,369.94 1,589.94 Terms agreed for new 10 year lease, 6 months rent free, £34,200 pa.

Unit 18B & Coffee Shop

Café Pacifico Kidderminster Ltd

01-Mar-12 28-Feb-13 See comments

14,000 25.41 16,530 30.00 551 28,250 13,305.75 17,682.52 842.50 New lease agreed for 1 year with rolling 6 weekly breaks. Landlord received higher offers from other operators.

Unit 12/18A Bon Marche Limited 25-Mar-12 23-Jun-15 See comments

35,000 27.65 37,980 30.00 1,266 62,500 29,437.50 20,442.84 974.03 Rolling landlord break option on 3 months notice on or after 24/09/2013.

Unit A (4 Vicar Street)

Thorntons Plc 25-Mar-13 24-May-18 24-Mar-16 25,000 44.09 25,515 45.00 567 34,250 16,131.75 5,192.70 247.41 25/3/2013 - 24/5/2016 at half rent (£12,500). 6 months break notice.

Unit B (5 Vicar Street)

John Hemming Chapman and Paul Douglas Meyers t/a Chapman & Meyer Opticans

07-Mar-13 06-Mar-23 50,000 67.84 33,165 45.00 737 44,750 21,077.25 8,526.96 406.28 18 weeks rent free from completion. Rent commencement 11th July 2013.

Unit C (6 Vicar Street)

Kenmare Estates Limited (t/a Co-Op Travel)

17-Oct-07 16-Oct-17 50,000 86.96 25,875 45.00 575 34,250 16,131.75 7,515.76 358.10

Unit D (7 Vicar Street)

JW Sturman & Sons Ltd (t/a Three Lions Food Company)

18-Feb-13 17-Feb-23 44,000 60.36 32,805 45.00 729 37,750 17,780.25 5,903.28 281.26 £22,000 pa from 18/2/2013 - 17/2/2015 before reverting to £44,000 pa.

Zurich Assurance Ltd 1,216.23 57.94 Zurich contribution from adjoining ownership.

Mall Income Mall Services Ltd 16,635 16,635 * Income based on actual receipts for a 6 month period from October 2012 to March 2013 from a new contract with Mall Services Ltd.

TOTALS Gross Income 521,135 ERV 514,785 353,250.00 273,300.17 13,021.69 147,761.32

GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. June 2013 Adrian Gates Design & Photography 07710 316991

Contacts

Should you require further information or arrange a formal inspection of the property please contact:

Michael Comley 020 7911 2452

Michael.comley@gva.co.uk

Barry Riley 0121 609 8268

Barry.riley@gva.co.uk

Jonathan Cornwell 020 7911 2369

Jonathan.cornwell@gva.co.uk

www.gva.co.uk

Asset ManagementThere are a number of asset management initiatives to improve the income stream and capital value of the scheme.

These asset management initiatives include:

●● Potential to restructure headlease / or buy in the freehold interest

●● Let remaining void units

●● Investigate creation of additional kiosk units at Vicar Street entrance

●● Secure improved cafe/A3 offer in central atrium

●● Continue the restructuring of leases

gva.co.uk/6552

EPCEPC reports are available on the Data Room website.

VATThe property is registered for VAT and it is proposed that the sale will be treated as a ‘Transfer of a Going Concern’.

Pricing On the instructions of RS Morgan & RJ Goode Joint LPA Receivers of Rowland Hill Shopping Centre acting as Agent for Amadeus (Kidderminster) Limited and without personal liability.

We are instructed by our client to seek offers in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 11.94% after allowing for standard purchaser’s costs of 5.8% and landlords current shortfalls.