PRIME FREEHOLD RETAIL INVESTMENT OPPORTUNITY

17-19 NORTHBROOK STREETNEWBURY RG14 1DJ

INVESTMENT SUMMARY Newbury is an attractive and affluent market and commuter town, located in Berkshire

The property is situated in a 100% prime pitch, on Northbrook Street

Well configured retail and ancillary accommodation, arranged over ground and first floor levels, totalling approximately 1,776.55 sq m (19,123 sq ft) net internal area

Freehold

Let to the excellent covenant of Tesco Stores Limited (Very Low Risk)

Total current rental income of £329,300 per annum exclusive

Seeking offers in excess of £3,850,000 (Three Million, Eight Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level would reflect an attractive Net Initial Yield of 8.03%, allowing for purchaser’s costs of 6.53%.

LOCATIONNewbury is an affluent and attractive market and commuter town, and home to the renowned racecourse. Strategically located within the M4 corridor in Berkshire, the town lies approximately 14 miles west of Reading, 25 miles south of Oxford and 52 miles west of London.

The town benefits from excellent road communications, with Junction 13 of the M4 Motorway located some three miles to the north, accessed via the A34 and A339. The M4 provides direct access to Swindon and Bristol to the west, and Reading, the M25, Heathrow International Airport and Central London, to the east. To the south, the A34 provides direct access to Junction 9 of the M3 motorway.

Newbury Rail Station provides regular direct services to London Paddington, with an approximate journey time of 50 minutes, and to Reading, with an approximate journey time of 25 minutes.

London Heathrow International Airport is located approximately 42 miles to the east, via the M4 motorway.

SITUATIONThe property occupies a 100% prime pitch on the eastern side of Northbrook Street. Key retailers in the immediate vicinity include, Marks & Spencer, River Island, Boots, WH Smith and Wilko. The main entrances to Parkway Shopping Centre, are also nearby.

M3

M4J13

M40M25

M1

M1

M25

M4

M3

ALTON

GUILDFORD

BASINGSTOKE

OXFORD

WINCHESTER

FARNHAM

PETERSFIELD

BRACKNELL

READING

SLOUGH

MARLOWWATFORD

HIGHWYCOMBE

WESTDRAYTON

HEMELHEMPSTEAD

HENLEY-ON-THAMES

AYLESBURY

LUTON

AMERSHAM

MAIDENHEAD

A3A31

A33

A41

A5

A3

A272

A34

A34

A339

A322

A303

NEWBURY

SOUTH DOWNSNATIONAL PARK

LONDON OXFORD

LUTON

HEATHROW

RETAILING IN NEWBURYNewbury provides an attractive and vibrant shopping environment which was further enhanced by the opening of Parkway Shopping Centre in 2011. This development is accessed via Northbrook Street and provides approximately 300,000 sq ft of retail and leisure accommodation, including a Debenhams department store and John Lewis at Home. Other retailers represented include, H&M, Superdry and Jack Wills. The scheme incorporates a 621 space car park and some 147 residential apartments.

The Kennet Centre is located at the southern edge of the town centre and provides approximately 200,000 sq ft of retail and leisure accommodation. Originally constructed in 1972, the scheme was subsequently extended and now includes a 950 seat multiplex Vue cinema with several restaurant units. The nearby Market Place is an historic market square which continues to accommodate Newbury’s market on Thursdays and Saturdays. Market Place also provides a further food and beverage offer, with occupiers including Strada and Pizza Express.

Northbrook Street is fully pedestrianised and provides the town’s prime retail pitch. In addition to the subject property (Tesco Metro), other occupiers represented on Northbrook Street include, Marks & Spencer, River Island, Boots, Camp Hopson department store, Wilko, WH Smith, Superdrug, Pret a Manger, Metro Bank, Vodafone and Crew Clothing.

NO

RTHBRO

OK ST.

N

ORTH

BROO

K ST.

PARK W

AY

PARK W

AY WHARF RD.

PARK WAY

WEST ST.

WEST ST.ALBERT RD.

MARSH LN. MARSH LN.

PARK ST.

VICTORIA PARK

SUBJECT PROPERTY

CATCHMENT & DEMOGRAPHICSNewbury has a resident population of some 39,000 persons (2011 census), with a wider population of approximately 90,000 persons within a 15 minute drive time. The town’s estimated primary catchment population is 120,000 persons and is ranked as one of the UK’s most affluent.

According to the Office of National Statistics, 30% of local residents are categorised within the social group AB – ‘Higher and intermediate managerial, administrative, professional occupations’ (compared to the national average of approximately 23%).

Employment provision in West Berkshire is diverse and Newbury is home to the UK headquarters of the mobile network operator, Vodafone; the town’s largest employer, with a campus covering 30 acres.

DESCRIPTIONThe property comprises an attractive, mid-terraced, two-storey building, incorporating two units. The units have been combined to provide an open plan ground floor retail area, currently utilised as a Tesco Metro supermarket, together with partially integrated first floor ancillary and office accommodation above.

The building is of concrete frame construction with predominantly facing brickwork elevations, incorporating attractive stonework and full height glazed shop fronts to the ground floor of the Northbrook Street elevation.

Additional shopper access is provided towards the rear of the property, via Jack Street, affording circulation between Northbrook Street and the lift/stair access to the Parkway Shopping Centre car park.

Loading access is provided at the rear of the property, via a shared service yard.

Access to the front offices at first floor level (occupied by Blue Arrow), is provided directly off Northbrook Street.

Internally, the ground floor Tesco Metro sales area has been fitted out attractively, to the tenant’s corporate style.

There is a goods lift at the rear. The first floor accommodation, occupied by Tesco, predominantly comprises storage and ancillary accommodation, including a staff training room, stock management office, CCTV room, staff welfare and secure stores.

The first floor area occupied by Blue Arrow, provides office accommodation, including a small kitchen and separate male and female WC facilities. The accommodation generally has plastered and painted ceilings and walls, with ceiling mounted boxed, “Category 2,” lighting, above carpet tiled floors.

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Copyright and confidentiality Experian, 2017. © Crown copyright and database rights 2017. OS 100019885

ACCOMMODATIONThe property has been measured in accordance with the RICS Professional Statement - RICS Property Measurement 1st Edition, May 2015, and provides total accommodation of approximately 1,776.55 sq m (19,123 sq ft) net internal area, based on the current configuration. The floor areas for the individual retail units are provided below.

Unit 1 sq m sq ft

Ground Floor Retail 461.82 4,971

Ground Floor ITZA 119.85 1,290

Ground Floor Ancillary 39.76 428

First Floor Ancillary 439.43 4,730

Sub Total 941.01 10,129

Unit 2

Ground Floor Retail 443.89 4,778

Ground Floor ITZA 112.97 1,216

Ground Floor Ancillary 108.97 1,173

First Floor Ancillary 154.10 1,659

First Floor Offices (Blue Arrow) 128.58 1,384

Sub Total 835.54 8,994

Total Net Internal Area 1,776.55 19,123

TENUREFreehold.

TENANCYThe property is let to Tesco Stores Limited by way of two separate, 25 year co-terminus leases, drawn on effective full repairing and insuring terms, commencing on 24th June 1994 and expiring on 23rd June 2019.

Unit 1 is let at a current rent of £169,700 per annum exclusive and Unit 2 is let at a current rent of £159,600 per annum exclusive, providing a current combined total rental income of £329,300 per annum exclusive. Part of the first floor is sublet to Blue Arrow, an employment and recruitment agency (further information is available upon request).

COVENANT INFORMATIONTesco Stores Limited (Company Number 519500) is wholly owned by Tesco plc, one of the world’s largest retailers and a FTSE 100 Company. Tesco is also the largest of the UK’s, “Big Four,” supermarket chains.

For the year ended 25th February 2017, Tesco Stores Limited reported a Turnover of £40.134 billion, a Pre-Tax Profit of £266 million and Shareholder’s Funds of £1.265 billion. The company has been ascribed a Creditsafe rating of 73 A (Very Low Risk).

PLANNINGThe local planning authority is West Berkshire Council. The property is not Listed, however, it lies within the Newbury Town Centre Conservation Area.

VATWe understand the property is elected for VAT and therefore VAT will be payable on the purchase price. It is envisaged the sale will be dealt with by way of a Transfer of a Going Concern.

EPCThe property has a rating of C (72).

INVESTMENT RATIONALE Affluent and attractive location

100% prime pitch

Well configured retail and ancillary accommodation totalling approximately 1,776.55 sq m (19,123 sq ft)

Let to the excellent covenant of Tesco Stores Limited

Freehold

Total current rental income of £329,300 per annum

Attractive net initial yield

FURTHER INFORMATIONFor further information or to arrange an inspection, please contact the sole agents:

John Burnside

+44 (0)20 7788 3829+44 (0)7730 817 046john.burnside@htc.uk.com

Will Shortridge

+44 (0)20 7788 3827+44 (0)7493 869 413william.shortridge@htc.uk.com

PROPOSALWe are instructed to seek offers in excess of £3,850,000 (Three Million, Eight Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, for the freehold interest in this property.

A purchase at this level would reflect an attractive Net Initial Yield of 8.03%, allowing for purchaser’s costs of 6.53%.

Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: – These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not

constitute part or whole of an offer or contract; – All descriptions, dimensions, photographs, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but intending

purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; – No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation

or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; – Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or

lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; – All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have

not been tested and we give no warranty as to their condition or operation; – No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn. November 2017

SUBJECT TO CONTRACT

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