LET TO MATALAN RETAIL LTDNEWPORT RETAIL PARK, SEVEN STILES AVENUE,

NEWPORT | NP19 4TX

WELL LET RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY

• Newport is a major commercial city in South East Wales

• More than a 373,000 population within 30 minute drive time

• The unit adjoins Newport Retail Park, the dominant retail park in the City

• Ajoining occupiers include Next, M&S, Boots, New Look and Tesco Extra

• Well let Investment Secured until 15th March 2026 (more than 10 years unexpired) to Matalan Retail Limited

• Low Passing rent of £360,000 pax which equates to only £9 per sq ft

• Open A1 (non food) planning consent with the ability to subdivide.

• Low site cover and a car parking ratio of 1:210 sq ft

• Offers sought in the region of £4,250,000 (four million two hundred fifty thousand pounds)

• This reflects an Attractive net initial yield of 8% after deducting standard purchasers costs at 5.80%

vision express

SEVEN STILES AVENUE

PROPOSED

40,000 sq ft

SITE

CEN

TRA

L A

VEN

UE

CAR PARK 828 SPACES

STAFF PARK 167 SPACES

SPYTTY ROAD

QU

EEN

SWAY

MEA

DO

WS

CAR PARK 540 SPACES

SALLY HAIR & BEAUTY

14,3

24 s

q ft

13,914 sq ft

10,439 sq ft

7,22

4 sq

ft

7,06

4 sq

ft

7,12

5 sq

ft 4,380 sq ft

6,093 sq ft

1,467 sq ft

1,451 sq ft

1,600 sq ft 11b

5,1

94 s

q ft

2,61

6 sq

ft

Secu

rity

Offi

ce

9,76

6 sq

ft

6,08

6 sq

ft

30,0

00 s

q ft

Gro

und

Floo

r

60,0

00 s

q ft

Tot

al

4,14

6 sq

ft

24,129 sq ft

10,071 sq ft

SPORTS

DIRECT.COM

13

12

12a

9,88

9 sq

ft

17/1

8

1a

1b

2

3/4

6

7

8

9

10

11a 1

,444

sq ft

13a

14

15

19a

1,55

7 sq

ft

19b

1,55

7 sq

ft

20 3

,014

sq

ft

21 3

,200

sq

ft

15a

16

1c

1d7,

721

sq f

t

4,66

7 sq

ft

10,0

08 s

q ft

5

1,060 sq ft 11c

CAR PARK 966 SPACES MAJORITY UNDER STORE

3,845 sq ft

1,851 sq ft

11f

11e

11d

– AVAILABLE

– RETAIL/EXCHANGED

DEVELOPMENT SITE

FILLING STATION

SITUATION

Newport Retail Park is Newport’s premier and dominant retail location and South East Wales’ principal Retail Park. The southern distributor road (A455) links junction 24 of the M4 motorway to the east with Junction 28 of the M4 motorway to the west. The subject Retail Park links directly onto Spytty Rd (Southern Distributor Rd).

Newport Retail Park is a regionally dominant fashion park and includes a host of national fashion retailers such as Next, Outfit, Clarks and New Look with recent lettings including Bank, JD Sports, Marks & Spencer and Gap. It sits alongside a 140,000 sq ft Tesco Extra Food Store, a significant driver of footfall to the Park. To the right of the unit behind Newport Retail Park is Newport Leisure Park which includes occupiers such as Cineworld, Pizza Hut and Frankie and Benny’s.

In addition there is a 600 acre regeneration site adjacent to Newport Retail Park which forms part of the district centre where there is a provision for 4,000 new homes and 100 acres of new employment space.

The subject property is located on Seven Stiles Avenue adjacent to Next and Outfit.

LOCATION

Newport is a key commercial City, situated on the M4 corridor in South Wales, approximately 10 miles east of Cardiff and 20 miles west of Bristol. The City can be accessed directly off Junction 24-28 of the M4 motorway, offering excellent access to the road network and UK motorway network in general.

Newport also lies on the First Great Western Line with a journey time to London Paddington of just under 2 hours with this expected to improve with the on going electrification of the line.

The nearest Airport is Cardiff Airport, 28 miles to the south west of Newport and Bristol Airport 33 miles to the south east. Both Airports provide flights to a number of European destinations, serving approximately 7.5 million passengers per year.

Newport has an estimated urban population in the order of 140,000 (2011 Census) with over 373,000 within 30 minutes drive time of the subject property.

This map was created with Promap

Matalan, Newport

© Collins Bartholomew Limited 2011. All rights reserved. Plotted Scale - 1:175000

MATALAN - NEWPORT RETAIL PARK

DESCRIPTION

The subject property comprises a large standalone purpose built retail warehouse unit constructed in 2000 and occupied by Matalan Retail Ltd on a site extending to approximately 3.113 acres (1.25 hectares)

The retail warehouse unit comprises a steel portal frame building under a pitched steel clad roof providing a Gross Internal Area of 40,000 sq ft ( 3,716 sq m).

The unit benefits from a tarmacadam surface customer car park at the front, which provides a total of approximately 190 spaces equating to 1 space per 210 sq ft.

To the rear of the unit is a self contained loading bay accessed via a service road to the south of the building.

TENURE

Freehold.

PLANNING

Planning permission was granted on 19th July 2000 for a retail warehouse providing 3,828 sq m of A1 non food retail and associated car parking.

Uses are limited to the following:-

• DIY products, auto accessories, furniture, carpets, floor coverings, electrical, household goods, household furnishings, clothing and footwear (including fashion accessories).

• There is no restriction to prevent future sub-division of the unit.

The property falls within the District Centre which will assist any further planning application.

TENANCY

The property is let to Matalan Retail Ltd on a 25 year lease from 16th March 2001 on full repairing and insuring terms, incorporating 5 yearly upward only rent reviews, the next review is due in March 2016. The current passing rent is £360,000 per annum (£9 per sq ft). The lease expires on 15th March 2026.

Drain

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0m 10m 20m 30m

This map was created with Promap

Matalan, Newport

Ordnance Survey © Crown Copyright 2011. All rights reserved. Licence number 100020449. Plotted Scale - 1:1250

ASSET MANAGEMENT OPPORTUNITIES

In our opinion, the subject property is in a location which could attract a number of additional retailers and the ability to sub-divide the current accommodation increases it’s appeal to occupiers. The existing wide planning consent also assists these options.

VAT

The property has been elected for VAT purposes and it is anticipated that the sale will be treated as a transfer of a Going concern.

EPC

EPC is available upon request.

COVENANT

Matalan Retail Ltd for the year to 28th February 2015 reported a pre-tax profit of £20.30 million from a turnover of £1,094 million and a net worth of £300 million. With recent results they have reported expected profits for the year end in the order of £54 million. Lloyds Bank are providing significant help to the business and has reset it’s covenants on loan agreements giving valuable access to it’s banking facilities. It is a significant brand and creates significant cash as a retailer in the UK

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1213

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FURTHER INFORMATIONFor further information, and arrangements to inspect the premises please contact:-

ROSS GRIFFIN Tel: 029 20368961 Email: rgriffin@savills.com

PADDY HALES Tel: 0117 910 2203 Email: phales@savills.com

SUBJECT TO CONTRACT and Exclusive of VAT February 2016

PROPOSAL

Seeking offers for the freehold interest of £4,250,000 (four million two hundred fifty thousand pounds), subject to contract and exclusive of VAT, equating to a net initial yield of 8% assuming purchaser’s costs of 5.8%.

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

Misrepresentation ActMessrs Savills Commercial Ltd for themselves 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 purchasers or lessees and do not constitute, nor constitute part of, an offer or contract.2. All descriptions, 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 should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate.3. No persons in the employment of Messrs Savills Commercial Ltd has any authority to make or give any representation or warranty whatsoever in relation to this property.4. All correspondence regarding this offer is subject to contract.

Design by Martin Hopkins Partnership. Tel: 029 2046 1233 www.martinhopkins.co.uk

12 Windsor Place Cardiff CF10 3BY

Embassy House Queens Avenue Bristol | BS8 1SB

SEVEN STILES AVEN

UE

ASDA LIVINGMATALAN

A48 SOUTHERN DISTRIBUTOR RD

A4810 QUEENSWAY MEADOW

PEACOCKS

NEW LOOK

SPORTS DIRECT

M&S

BOOTS

TESCO EXTRA

CINEWORLD

FRANKIE & BENNY’S

MCDONALD’S

PIZZA HUT

OUTFIT

NEXT

SCS

ICELAND

JD

H&M

GAP