WHITSTABLE 134 CROMWELL ROAD LET TO THE SOUTHERN CO-OPERATIVE LTD ON A NEW 15 YEAR LEASE WITHOUT BREAKS

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1 Sat Nav Ref: CT5 1NQ WHITSTABLE 134 CROMWELL ROAD LET TO THE SOUTHERN CO-OPERATIVE LTD ON A NEW 15 YEAR LEASE WITHOUT BREAKS Artist impression.

2 INVESTMENT SUMMARY Prime convenience store investment in the affluent coastal town of Whitstable Prominent new build development comprising 4,000 sq ft ( sq m) Let to The Southern Co-operative Group Limited on a new 15 year lease without breaks 5 yearly rent reviews linked to RPI (1% - 4% collar and cap) The unit benefits from a Post Office concession in-store Open A1 planning consent Benefitting from a 12 year BLP warranty (underwritten by Allianz) Freehold Total Current Income: 80,000 per annum Price: 1,312,500 Net Initial Yield: 5.75% Artist impression. 2 Fawcett Mead

3 A10 A12 A127 Prime convenience store investment in the affluent coastal town of Whitstable ONDON A13 A2 LOCATION A249 Whitstable Whitstable is an affluent seaside town on the north coast of Kent, approximately 5 miles from Canterbury and 60 miles from London. A22 A21 A28 A2 A2 Whitstable benefits from excellent connectivity to the national railway network. The site lies within a 5 minute walk from Whitstable Railway Station, from which services run direct to London St Pancras (1 hour 10 minutes) and London Victoria (1 hour 25 minutes) in addition to regular Southeastern trains to Ramsgate (30 minutes). A2070 The town is connected to the national motorway network, with immediate access to the M2 which provides direct links to the A2 and the M25 (Junction 2), leading to London. The nearest major airport is London City Airport, located just 58 miles north west of Whitstable. London Gatwick Airport is situated approximately 65 miles from the town centre respectively. SOCIO-ECONOMIC PROFILE Whitstable has an affluent socio-economic profile, as shown by social grade data. Within 20 minutes drive time, 58% of households are categorised as being AB and C1 (Managers/Senior Officials) which is above the national average of 53%. Car ownership is also higher than the national average, with 77% of households owning 1 or more cars, compared to 74%. (Source: CACI) Furthermore, Whitstable s unemployment rate stands at 2.5% which is well below the national average of 3.3%. 3 Fawcett Mead

4 DEMOGRAPHIC Whitstable has a population of 32,100 (2011 census) which is forecast to grow at a rate significantly above the national average, as summarised by the following figures: Projected growth Projected growth minute drive time 10 minute drive time 15 minute drive time 20 minute drive time National Average 3.70% 3.60% 3.50% 3.60% 2.80% 6.20% 6.30% 6.10% 6.20% 5.10% SITUATION The subject property is located on Cromwell Road, a densely populated residential area. It is situated in close proximity to Westmeads Community Infant School and adjacent to Westmeads Recreation Ground. Cromwell Road provides a busy link between the station and harbour. The property is in close proximity to the main retailing area in Whitstable and the station is a 2 minute walk away. The tenant mix is composed of predominantly local retailers, with a variety of national retailers including: In addition to this, Harbour Market is located on the seafront. It is a lively community based market which is currently home to over 30 local traders promoting Kentish goods, fine art and micro eateries. DESCRIPTION The property will comprise a prominent retail unit arranged on the ground floor of a new three storey retail and residential development. The property is constructed around a reinforced concrete frame and provides well configured retail accommodation benefiting from a modern glazed frontage onto Cromwell Road and Wheatley Road. Construction is due to be complete in September The unit comprises 4,000 sq ft (371.6 sq m) as well as 12 designated parking spaces for The Co-op. The property also benefits from a Post Office concession, which, in our opinion, will further improve footfall into the store. 4 Fawcett Mead

5 TENURE Freehold. The residential element, comprising of 22 flats on the upper floors, will be sold off on a new 999 year lease. TENANCY Unit 1 has already been pre-let to The Southern Co-operative Ltd by way of an agreement for lease. Upon completion of construction, the tenant will take up a new effective FRI lease for 15 years without break. The rent of 80,000 per annum is subject to five yearly upwards only rent reviews, linked to RPI (1-4% collar and cap). COVENANT INFORMATION The Southern Co-operative Ltd is an independent, regional co-operative society. They currently operate from over 190 stores in the south of England, with food retail being its largest area of business. The core estate incorporates convenience stores, complemented by a number of community supermarkets in stand-alone village and market town locations; with over 50 sub-post offices within stores. According to the Annual review for , The Southern Co-operative Ltd reported the following figures: 28/01/ /01/2016 Turnover 393,823, ,786,000 Pre-tax Profit 2,365,000 2,352,000 Society Funds 116,059, ,886,000 The property benefits from a 12 year BLP warranty, which is underwritten by Allianz. Further information is available upon request. 5 Fawcett Mead

6 1100 Commercial Refuse 1100 Residential Cycle Storage for 32 bicycles Residential refuse & recycling post Disabled parking Car Park meter cupboard 10 Residential Entrance lobby post Residential Main Entrance Plant 34 Cylinder Store and AC Units UNIT paving Cycle Storage 36 Residential Escape route UNIT 2 To Let Disabled parking Commercial Access Commercial Access Cromwell Road 6 Fawcett Mead

7 Castle Road WHITSTABLE RAILWAY STATION 4 minutes walk HARBOUR STREET 5 minutes walk WHITSTABLE HARBOUR 7 minutes walk HIGH STREET 8 minutes walk THE EAST QUAY WHITSTABLE HARBOUR Harbour Street Tower Parade Tankerton Road THE EAST QUAY 10 minutes walk WHITSTABLE GOLF COURSE 10 minutes walk High Street Cromwell Road Wheatley Rd Railway Ave Old Bridge Rd Whitstable Station Whitstable Golf Course Cromwell Road 7 Fawcett Mead

8 PLANNING The property is to be constructed under planning permission CA/15/01414/FUL. EPC An indicative EPC is available upon request. VAT All sums expressed are exclusive of VAT and the appropriate amount of VAT shall be paid in addition. PROPOSAL We are instructed to seek offers of 1,312,500 (One Million, Three Hundred and Twelve Thousand, Five Hundred Pounds), subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 5.75%, after allowing for purchaser s costs of 6%. FURTHER INFORMATION Graham Fawcett graham@fawcettmead.co.uk Joe Baio joe@fawcettmead.co.uk Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd 2017 SUBJECT TO CONTRACT