Kidderminster West Midlands DY10 1EJ

Town Centre Shopping Centre Opportunity

gva.co.uk/6552

Wyre Forest Leisure Centre

Kidderminster College Rowland Hill Shopping Centre

The Swan Shopping Centre

Weavers Wharf

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.

S NTON THOR & BIS CONF RS & MYE MAN CHAP S AN OPTICI LATOR ESCA RS & STAI

Lower Ground - Vicar Street

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THE WASH HOUSE ELEC/GAS APPS

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THE WASH HOUSE ELEC/GAS APPS

Kidderminster 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. Kidderminsters 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 towns 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 towns traditional high street pedestrian flow is along Vicar Street fronting Rowland Hill Shopping Centre.
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Rowland Hill Shopping Centre occupies a prominent position in the heart of Kidderminsters 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 towns main retail thoroughfares. The shopping centre benefits from pedestrian street access off both Vicar Street and Worcester Street. Rowland Hills 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.

M6
A449

A38

R I V E R

25
24 1-2
RE BODYCA Y & BEAUT HEALTH

M6 Toll
A34 A460

M54
A41

Tamworth
A451 A452 A5

7-8

23

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STR VICAR

79

22

M6

21

S T O U R

3 - 3A

Wolverhampton
A463 A454 A449 A41

SALLY VICES SALON SER UTY & BEA HEALTH

19 - 20

10

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15 - 16

MAX SPIELMANN FILM DEV

P CARD STO CARDS

Sutton Coldfield
A452

11 - 17

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CLAIRE`S

VACANT

M42

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16

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ROMAN R LADIES WEA

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Dudley
A458 A4036

M6 Toll
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15

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Birmingham
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A452

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KIDDERMINSTER
A456 A448

Solihull
A4177

66
8
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55

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A441 A448 A435

A449

A441

13

14

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Bromsgrove

Redditch

M40

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10

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Description

Named after Sir Rowland Hill, creator of the Penny Postage Stamp, the property is a covered scheme developed in the late 1970s. 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

Tenure

The 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 Passing Rent Zone A Rate ( per sq ft)

39.01 48.22 46.38 33.60

AREAS

OCCUPATIONAL COSTS RATES PAYABLE (UBR 47.1p) ()

6,594.00 21,666.00 14,247.75 17,662.50 10,244.25 13,894.50

Unit
Unit 1 Unit 2 Unit 3 Unit 4 & Part Unit 5 Unit 5 Unit 6A

Tenant
Photographic Retail 2008 Ltd t/a Max Spielmann Santander UK Plc Sally Salon Services Ltd Jonathan Banner and Ann Banner t/a AJ's VACANT Claire's Accessories UK Ltd

Lease Start
09-Aug-12 10-Aug-12 11-Apr-12 31-Aug-12

Lease End
08-Aug-22 25-Dec-20 10-Apr-22 28-Feb-14

Break Date
08-Aug-17

Current Gross Rent ( p a)

11,000 47,500 29,500 25,000

ERV ( p a)
8,460 29,550 19,080 22,320 15,150

ERV Zone A Rate ( per sq ft)

30.00 30.00 30.00 30.00 30.00 30.00

Area ITZA
282 985 636 744 505 580

RATES ()
14,000 46,000 30,250 37,500 21,750 29,500

SERVICE CHARGE ()
2,882.78 20,067.07 11,451.28 19,513.62 4,126.84 9,948.12

Insurance ()
137.35 956.12 545.61 929.75 196.62 473.99

LANDLORDS SHORTFALLS ()

Comments
Half rent from 9/8/12-8/8/14 (5,000). 21 months rent free from 10/8/12. Rent commencement 9/5/2014. Rent capped at 37,500 pa at April 2017 rent review.

20,443.37 14,567.71

Rent inclusive of service charge and insurance rent. 10/10/12 9/10/13 at 3/4s rent (16,500) . 6 months rent free if the tenant doesnt exercise the break option. 6 months notice on the break option.

10-Oct-10

09-Oct-20

10-Oct-15

22,000

37.93

17,400

Unit 6b Unit 7 Unit 8 Unit 9 Unit 10 Unit 11

Customer Toilets First Choice Retail Ltd VACANT VACANT VACANT Roman Originals Plc 25-Feb-13 See comments 16-May-28 See comments 12,000 19.39 28-Nov-06 27-Nov-16 30,000 55.56 16,200 16,740 18,840 18,840 18,570 30.00 30.00 30.00 30.00 30.00 540 558 628 628 619

5,000 30,000 26,500 28,250 28,250 30,250

2,355.00 14,130.00 12,481.50 13,305.75 13,305.75 14,247.75

1,858.44 11,669.92 6,060.99 9,210.22 9,018.90 8,909.58

88.55 556.03 288.78 438.83 429.72 424.50

88.55 18,831.27 22,954.80 22,754.37 23,581.83

Service charge recoverable.

Tenancy at Will. 1,000 per month inclusive of rent, insurance, rates and service charge. Half rent from 17/5/13 - 16/5/2014 (6,250). Guarantee from John Carney for the first five years.

Unit 13B

Premier Shoe Repairs Ltd

17-May-13

12,500

54.35

6,900

30.00

230

11,250

5,298.75

1,585.14

75.53

Unit 14

Partners The Stationers Ltd (t/a Rymans) Centre Managers Office Caversham Trading Ltd (t/a Brighthouse) GR and MM Blackledge Plc (t/a Bodycare) Caf Pacifico Kidderminster Ltd

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. Service charge recoverable. 6 months break notice. Service charge capped at 24,000. Terms agreed for new 10 year lease, 6 months rent free, 34,200 pa. New lease agreed for 1 year with rolling 6 weekly breaks. Landlord received higher offers from other operators. Rolling landlord break option on 3 months notice on or after 24/09/2013. 25/3/2013 - 24/5/2016 at half rent (12,500). 6 months break notice. 18 weeks rent free from completion. Rent commencement 11th July 2013.

Unit 14 (1st Floor) Unit 15/16 Unit 17 Unit 18B & Coffee Shop

931 30-Sep-08 25-Jun-99 01-Mar-12 29-Sep-18 24-Jun-14 28-Feb-13 See comments 30-Mar-14 50,000 43,000 14,000 33.78 38.67 25.41 44,400 33,360 16,530 30.00 30.00 30.00 1,480 1,112 551 58,500 45,750 28,250 27,553.50 21,548.25 13,305.75

5,903.28 29,953.68 33,369.94 17,682.52

281.26 1,427.19 1,589.94 842.50

281.26 5,953.68

Unit 12/18A Unit A (4 Vicar Street) Unit B (5 Vicar Street)

Bon Marche Limited Thorntons Plc John Hemming Chapman and Paul Douglas Meyers t/a Chapman & Meyer Opticans Kenmare Estates Limited (t/a Co-Op Travel) JW Sturman & Sons Ltd (t/a Three Lions Food Company) Zurich Assurance Ltd

25-Mar-12 25-Mar-13 07-Mar-13

23-Jun-15 24-May-18 06-Mar-23

See comments 24-Mar-16

35,000 25,000 50,000

27.65 44.09 67.84

37,980 25,515 33,165

30.00 45.00 45.00

1,266 567 737

62,500 34,250 44,750

29,437.50 16,131.75 21,077.25

20,442.84 5,192.70 8,526.96

974.03 247.41 406.28

Unit C (6 Vicar Street) Unit D (7 Vicar Street)

17-Oct-07 18-Feb-13

16-Oct-17 17-Feb-23

50,000 44,000

86.96 60.36

25,875 32,805

45.00 45.00

575 729

34,250 37,750

16,131.75 17,780.25

7,515.76 5,903.28

358.10 281.26 22,000 pa from 18/2/2013 - 17/2/2015 before reverting to 44,000 pa. Zurich contribution from adjoining ownership. * Income based on actual receipts for a 6 month period from October 2012 to March 2013 from a new contract with Mall Services Ltd.

1,216.23 16,635 16,635

57.94

Mall Income

Mall Services Ltd

TOTALS

Gross Income

521,135

ERV

514,785

353,250.00

273,300.17

13,021.69

147,761.32

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

Asset Management

There are a number of asset management initiatives to improve the income stream and capital value of the scheme. These asset management initiatives include:

EPC

Barry Riley 0121 609 8268 Barry.riley@gva.co.uk

EPC reports are available on the Data Room website.

VAT

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

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

Jonathan Cornwell 020 7911 2369 Jonathan.cornwell@gva.co.uk

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 purchasers costs of 5.8% and landlords current shortfalls.

www.gva.co.uk

gva.co.uk/6552
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