FREEHOLD DEPARTMENT STORE INVESTMENT OPPORTUNITY

On behalf of Joint LPA Receivers

ROBERTSON STREET, HASTINGS, EAST SUSSEX, TN34 1HN

INVESTMENT CONSIDERATIONS ■ Landmark Department Store totalling 96,089 sq ft over

5 floors

■ Prominently located on the primary pedestrianised retailing pitch in Hastings

■ Double frontage with part of the store overlooking Hastings Beach

■ Let on a FRI lease to Debenhams Retail Plc with 14.5 years unexpired

■ Recently revised rent of £415,000 pa (previously £720,325 pa)

■ Site area of 0.53 acres

■ Freehold

■ Numerous asset management opportunities including renegotiating the tenancy with Debenhams or repositioning the asset through change of use

■ We are instructed to seek offers in excess of £2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 14.16% after allowing for standard purchaser’s costs. This equates to a low capital value of £28 psf.

LOCATIONWith a population of 93,000 and a primary catchment area of 171,000

the seaside town of Hastings is located in the south of England,

16 miles north east of Eastbourne, 28 miles south east of Royal

Tunbridge Wells and 63 miles south east of Central London.

The town benefits from excellent road communications, connected by

the A21 and A259. The A21 is a trunk road running through the south

of England that connects to J5 of the M25 and Sevenoaks to the north

and Hastings to the south. The A259 runs along England’s south coast

linking Folkestone to Pevensey via Hastings. The A27, one of the UK’s

busiest roads that connects Portsmouth to Eastbourne via Brighton

lies 16 miles to the west.

South Eastern Railways run from Hastings Station with direct, frequent

services to Eastbourne (26 minutes), Brighton (1 hour 10 minutes) and

London Charing Cross (1 hour 33 minutes).

London Gatwick Airport is located 45 miles to the north east,

accessed via the A21 or alternatively by train with fastest journey

times of 1 hour 26 minutes. The Channel Tunnel is located 35 miles to

the north east, alighting from Folkestone running regular services to

Calais in c. 35 minutes.

GATWICK

HEATHROW

A229

A259

A272A272

A31

A22

A26

A26

A21

A21

A27

A27

A24

A23

A3

A3

A2

M4

M3

M2

M2

M1

M1

M25

M25

M10

M40

M40

M25

M23

M20

M20

M20

M25

M11

M11

M25

A1(M)Epping

WoodfordGreen

Potters Bar

LONDON

Hatfield

DARTFORD

GILLINGHAM

CROYDON

Romford

Barking

Ilford

SEVENOAKS

ROYALTUNBRIDGE

WELLS

MAIDSTONE

EASTGRINSTEAD

CRAWLEY

THREE BRIDGES

HAYWARDSHEATH

BURGESS HILL

HASSOCKS

LEWES

WORTHING

NEWHAVEN

EASTBOURNE

BEXHILL

ROBERTSBRIDGE

CAMBER

HASTINGS

RYE

ASHFORD

LITTLEHAMPTON

GUILDFORD REIGATE

STAINES

Slough

HemelHempstead St Albans

HighWycombe

Watford

WembleyUxbridge

Ruislip BrentCross

Harrow

BRIGHTON

SouthOxney

Rickmansworth

Harefield

Borehamwood Enfield

WINDSOR

WOKING

EPSOM

CLAPHAMHOUNSLOW

KINGSTONUPON THAMES

BillericayWickford

Stanford-le-Hope

Southend-on-SeaBenfleet

Brentwood

Chelmsford

ChippingOngar

Basildon

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

50 metres

Hastings

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011

Experian Goad Plan Created: 11/09/2019Created By: Allsop

Copyright and confidentiality Experian, 2019. © Crown copyright and databaserights 2019. OS 100019885

SITUATIONThe property is situated on the southern side of the pedestrianised Robertson Street, a main

thoroughfare through the town. An additional entrance is located along Robertson Terrace, which

lies adjacent to the A259 and fronting Hastings Beach.

The department store is located within the Towns primary retail pitch, 140 yards from Priory Meadow

Centre, a large scheme anchored by Marks and Spencer’s, Boots, New Look and W H Smith.

Other occupiers within the surrounding area include Tesco Express, Natwest, Lloyds, Costa Coffee

and several residential developments.

DESCRIPTION 1-3 Robertson Street forms the primary entrance to the

store, situated close to the junction of Robertson Street/

Havelock Road and Queens Road. The building is of 1800’s

construction and is arranged over basement ground and

5 upper floors, providing a mix of retail, office and staff

accommodation. The ground floor benefits from three full

height display windows, two sets of double glazed doors

and two fire exits which lead to the basement.

Adjacent to this is a ground and first floor HSBC which

does not form part of the sale. However, the second floor

of 4 Robertson Street is also occupied by Debenhams

and part of the demise by way of flying freehold.

6-9 Robertson Street is located opposite its junction

with Cambridge Street and comprises retail space over

ground and 3 upper floors and also benefits from a

separate entrance. The ground, first and second floor

are let to Debenhams with the first floor being used as

Debenhams Café offering sea views. At ground floor level

to the right hand side is an undercroft driveway through

the building, which leads to a small delivery yard which

includes a vehicle turning table.

The rear of the property comprises a c.1960’s build

arranged over ground and 8 upper floors. The ground,

first and second floors provide retail accommodation and

a café at first floor level. The remaining 6 floors have been

converted into a residential block of flats and sold off on a

long leasehold.

Internally, escalators are provided to serve

customer areas between ground, first and second

floors. There is also a passenger lift that serves the

ground to fourth floor levels as well as two goods

lifts that serve the basement to upper floor levels.

In addition, an independent customer lift within

the terrace buildings links the ground, first and

second floors.

The fourth floor of 1-3 Robertson Street is used

for administrative office purpose and is arranged

in sectioned rooms. The remainder of the fourth

floor provides a staff area.

Most of the remaining areas including the

basements are utilised for storage, maintenance

offices, plant and staff rooms.

The property comprises several interconnecting buildings with a double frontage onto Robertson Street to the north and Robertson Terrace to the south, totalling 8,927 sq m (96,089 sq ft).

ACCOMMODATIONOur client has been provided the following gross internal floor areas:

Floor Description Area (sqm) Area (sq ft)

Ground Sales 2,143.11 23,068

First Sales 2,069.78 22,279

Second Sales & Restaurant 2,366.67 25,475

Third Sales 679.49 7,314

Fourth Offices & Staff Room 461.53 4,968

Fifth Storage & Workshop 383.27 4,125

Basements Storage 823.09 8,860

Total 8,926.94 96,089

SITE AREA0.53 acres (0.214 ha).

TENANCYThe commercial element is let in its entirety to Debenhams Retail Plc on a full repairing and insuring lease for a term of 30 years from 25th March 2004 (expiring 2034) at a recently revised passing rent of £415,000 per annum (subject to the CVA), which equates to a rent of £4.32 psft.

There is a mutual option to determine the lease (subject to the CVA) in March 2021 and March 2022.

There is a residential element (Albany Court, Robertson Terrace) which has been sold on a long lease to Multistates Limited for a term of 199 years from 1st November 2004 expiring 1st October 2204 (c. 185 years unexpired) at a peppercorn ground rent. There is an obligation from the tenant to uphold, cleanse, repair and keep in repair their demise, including the roof, external and load bearing parts of the building.

TENUREFreehold.

COVENANT INFODebenhams is leading, global, multi-channel brand deeply rooted

in British heritage, trading from over 240 stores across 22 countries.

Debenhams offers its global customer base a unique, differentiated and

diverse mix of own brands, international brands and concessions.

More specifically in the UK, Debenhams ranks in the top five in terms

of market share in womenswear and menswear and a top ten share in

childrenswear. It is also a market leader in premium health and beauty.

Debenhams has recently been through a period of restructuring after

being granted a CVA to include 35-50% discounts on rents, business

rate reductions and the closure of 22 stores by early 2020. Although,

22 stores have closed, Debenhams have signed new leases on rebased

rents on their most preferred stores.

In addition, as part of the restructuring, the department store has also

experienced an executive shakeup to streamline store operational

decisions and aid cost cutting as well as a re-design of existing stores,

including their new ‘Beauty Hall of the Future’ campaign, which sets out

to reposition the brand as a leader in cosmetics.

Debenhams Retail Limited reported the previous 3 years financial

figures:

01/09/2018 02/09/2017 03/09/2016

Turnover £2,006,300,000 £2,064,600,000 £2,105,400,000

Pre-Tax Profit -£235,300,000 £97,500,000 £145,200,000

Total Net Worth £1,031,500,000 £1,093,700,000 £1,010,600,000

HASTINGS RESIDENTIAL MARKET Voted as one of the top five ‘heritage assets’ in England, Hastings boasts a

seaside town rich in history. Previously overshadowed by its coastal neighbours,

Eastbourne and Brighton, Hastings has become a desirable alternative for

residents offering affordable homes in a beautiful setting.

Over the years, Hastings has undergone significant redevelopment, most

recently transforming the old pier with a £14 million restoration scheme. In

addition, in April 2019 the town’s council bid for a £25 million investment

towards Hastings High Street to further aid regeneration within the town centre.

Hastings has a population of c.93,000 and rising, driven by an increase in demand

for affordable homes, improved transport links appealing as a commuter town

and a growing student and young working professionals community as a result of

the University of Sussex doubling the size of their Hastings Campus.

The south east continues to prove a popular residential location, with house

prices within the region forecasted to rise in value the most throughout the

whole of the UK by +23.4% from 2015-2019.

MEDIUM TERM DEVELOPMENT POTENTIALThe purchaser has the option to determine the lease in years

2 or 3 and explore the reconfiguration and redevelopment

opportunities (subject to planning) including:

• Converting the upper parts to residential/ student

accommodation. The property would also (subject to

necessary consents) provide scope for conversion and

redevelopment to provide privately rented residential

housing. There appears to be a moderate supply of lower

quality, more affordable rental accommodation in central

Hastings but a lack of good quality modern developments.

With the benefit of sea views, the property offers an

opportunity to provide a unique living opportunity.

• Reconfiguring the property to provide a mixed use offering

incorporating leisure or hotel use

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 09.19

Alex Butler020 7543 6722alex.butler@allsop.co.uk

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

Ronnie Morgan020 7543 6808ronnie.morgan@allsop.co.uk allsop.co.uk

PROPOSALWe are instructed to seek offers in excess of £2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 14.16% after allowing for standard purchaser’s costs. This equates to a low capital value of £28 psf.

VATThe property is elected for VAT and it is anticipated the sale

will be treated as a Transfer of Going Concern (TOGC).

AMLA successful bidder will be required to provide the usual information to satisfy

the AML requirements when Head of Terms are agreed.

DATAROOMFurther information is available on the dataroom which is available at:

https://datarooms.allsop.co.uk/register/DebenhamsHastings

EPCAn EPC is available in the

dataroom.

On behalf of Joint LPA Receivers and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the properties, including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability.

The Receivers are not bound to accept the highest or any offer.