Linen Green Designer Village -...

Linen Green Designer VillageMoygashel, Dungannon Co. Tyrone, BT71 7HB

www.thelinengreen.co.ukOn the instructions of Tom Keenan of Keenan CF, acting as Administrator of Jermon Ltd.

Investment, Asset Management & Development Opportunity

“Opportunity to acquire a thriving, long established and well regarded designer village investment with asset management and further development potential”


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1 The Dye House2 The Workshop, The Cloth Loft & The Weaving Sheds3 The Warehouse & The Glass House4 The Frame House, The Bleach House & Lamont Warehouse5 Former Post Office & Grahams Buildings

Boundaries for indicitive purposes only

1

Right Of Way

“ This was our first trip to Ireland in quite some time. Our family took us to the Linen Green for lunch, a really pleasant surprise. The coffee was good as is the apple pie. Enjoy. Be aware it’s very busy.”

• Comprises a number of buildings extending to approximately 140,434 sq ft (disregarding derelict buildings to rear)

• Entire site measures 11.35 acres (4.59 hectares)

• Retail units are circa 85% let, with a number of new lettings having recently been agreed

• Rental tone now established at £8 -12 psf with new lettings reflecting these levels

• Tenants include PWC, Bedeck and Pavers (40% of current passing rent)

• PWC and Bedeck leases benefit from an RPI and a fixed uplift respectively

• Reposition the scheme to include more multiple national tenants to build on the current retail offer and footfall

• Considerably increase rental income through active asset management

• Refurbishment or redevelopment of vacant and derelict buildings and land

• Provision of additional parking to the rear

• Capable of generating tax allowances through refurbishment utilising Business Premises Renovation Allowances (BPRA)

• The scheme currently produces a gross income of approximately £595,813 per annum and a net income after service charge and vacant rates shortfalls of approximately £534,098 per annum

• We are instructed to seek offers in the region of £5,000,000 (Five Million Pounds) for our client’s freehold interest

• A purchase at this level would reflect a net initial yield after service charge and rates shortfalls of 10% and an attractive capital value of £36 per sq ft overall (disregarding derelict buildings to rear)

Trip Advisor comment. Visited September 2012, Wolverhampton, West Midlands.


Opportunity SummaryThe salient details and opportunities are as follows:

Linen Green situated in Moygashel village which falls within the Dungannon settlement limit, approximately 1 mile south of Dungannon town centre and less than a mile from junction 15 of the M1 motorway.

Linen Green has established itself as a highly popular destination boutique retailing experience. Due to its proximity near the M1 Linen Green is accessible from all over Northern Ireland and has a wide draw, with shoppers travelling from Belfast (40 miles), Lisburn (33 miles), Craigavon (18 miles), Enniskillen (45 miles) and Omagh (30 miles), which are all within 60 minutes’ drive time.

The town serves a large rural hinterland, and the population of the Dungannon Local Government District which includes surrounding settlements such as Coalisland, Donaghmore, Ballygawley and spreading as far west as Clogher, was 57,852.

The town continues to have a strong industrial base, primarily situated at Granville, with occupiers in the area including Linden Foods and Moy Park.

15 Mins Drive 30 Mins Drive 60 Mins Drive

Fair Circular R

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Moygashel Ln / A29

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Jacksonville Road

Jakies Road

Moygashel R

ow Syerta Road

Jacksonville Road

Woodlough Road

A4

A29

M1

M1

M5

M1

M1

N2

A1

A1

N2

A4

A5

N15

N13

N13

A29

A31

A6

A6A26

A36

N12

NEWRY

ARMAGH

PORTADOWN

DUNGANNON

CRAIGAVON

BELFASTNEWTOWNARDS

BANGOR

LARNEBALLYMENA

BALLYMONEY

BALLYCASTLE

COLERAINE

LETTERKENNY

DUNGIVEN

DERRY/LONDONDERRY

COOKSTOWNOMAGH

ENNISKILLEN

M2

A8

A2

A55

A7A3

A27

A28

A28

A32

A24

M2

M22

Dungannon is classified as a medium town in County Tyrone, close to the south western shores of Lough Neagh and approximately 40 miles west of Belfast. The town had a population of 15,889 at the 2011 Census.

Moygashel


Location

Asset OverviewLinen Green, together with its surrounding land and buildings sits on a site extending to some 11.35 acres. The site benefits from two entrances from Main Road. There is an additional entrance serving Lamont Warehouse and two rights of access serving the rear of the property. A cycle and foot path connects Dungannon Park with Linen Green (to the left of The Dye House).

Linen Green is a retail leisure and office scheme, developed on part of the site of a former linen mill complex. The scheme hosts a range of local and national occupiers including PWC, Bedeck, Pavers and Ulster Weavers.

Linen Green was developed between the early 1990s and mid 2000s as a designer village but has evolved over the years to host a wider range of tenants. As well as boutique fashion and homeware retailers, it now also features a farm shop, restaurants, offices and medical occupiers.

The scheme is served by approximately 180 car parking spaces. In addition there are approximately 50 spaces situated to the rear of The Dye House, which are demised to PriceWaterhouseCoopers. Furthermore, there is surplus land to the site, which may be suitable for future car parking needs.

As well as the retailing and office element of Linen Green, there are a number of vacant and derelict buildings and surplus land to the rear and side of the complex. These elements are suitable for redevelopment and refurbishment and include the former Moygashel Post Office building, subject to planning.

Linen Green is historically important within the Mid Ulster area as a former centre for the linen industry. Linen Green presently hosts a small museum and exhibition centre, as a tribute to the areas industrial past. As a result Linen Green benefits from ‘Brown Signs’ (tourist signage) which give road directions from the surrounding area including from the M1.

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Roa

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Main

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d4 The Frame House, The Bleach

House, Lamont Warehouse

2 The Workshop, The Cloth Loft The Weaving Sheds1 The Dye House

5 Grahams Buildings & Former Post Office


3 The Warehouse & The Glass House

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4 The Frame House & The Bleach House The Frame House is an original element of The Linen Green development and comprises a parade of retail units and office accommodation extending to approximately 14,252 sq ft.

The Bleach House provides warehousing of approximately 20,439 sq ft, which can be accessed separately or internally from the first floor of The Frame House. Units A and B within the Bleach House are in very poor condition and require refurbishment.

3 The Warehouse & The GlasshouseThe Warehouse & The Glasshouse comprise a prominent two storey retail and office building (The Glasshouse) with a single storey parade of retail units to one side (The Warehouse). The property provides ten retail units in total extending to approximately 13,865 sq ft.

The office accommodation at first floor level extends to 6,610 sq ft and is presented in shell condition and requires fitting out.

1 The Dye HouseThe Dye House comprises a newly constructed ‘L’ shaped two storey detached parade of seven retail units, a restaurant, an office suite and surgery unit. We understand the foundations are piled. PWC’s offices (9,162 sq ft) are fitted out to an exceptionally high standard.

The property measures approximately 34,504 sq ft in total and is located to the north east of the Linen Green complex.

2 The Workshop, The Cloth Loft & The Weaving ShedThe Workshop, The Cloth Loft & The Weaving Shed are another original element of The Linen Green development and have been hosting traders for over 15 years. The first floor hosts the Linen Green museum along with an associated function room. The buildings form an ‘L’ shape around the main car parking area and provides approximately 26,963 sq ft of exhibition, retail and office space.

Description of Linen Green

4 Lamont Warehouse The Lamont Warehouse extends to approximately 21,851 sq ft and is accessed separately to Linen Green off Main Road (beside the Former Post Office). The building also intercommunicates with The Bleach House. The building is constructed with a concrete floor and the roof is covered in what appears to be asbestos corrugated panels. It is in a very poor state of repair and requires refurbishment.

5 Former Post OfficeThe Former Post Office building was originally constructed as a dwelling but was later converted to commercial use. We understand it comprises a commercial unit at ground floor with a kitchen and two reception rooms. At first floor there are three bedrooms and a bathroom.

The property appears to be in poor condition, having been unoccupied for a number of years and now requires modernisation. The building extends to circa 1,950 sq ft.

5 Grahams Buildings (Derelict Outbuildings)Grahams Buildings comprise a series of former textile factory buildings and sheds which are now derelict. The buildings appear to have been vacant for a number of years and are now suitable for demolition. Some of the units were recently used as vehicle repair workshops.

The buildings mostly have asbestos pitched roofs. The gross external foot print of the buildings is circa 25,000 sq ft.

Description of Additional Buildings

The retail, leisure and office elements of the development are constructed using cavity block with rendered and painted exterior and facing brick cavity wall to retail frontage. The floor of the retail units mostly benefit from concrete floors. The roofs are generally pitched steel frame with corrugated metal sheeting or slates. The shop fronts have a mix of timber double glazed and uPVC windows and velux windows are provided at roofline level.

The retail, leisure and office accommodation of Linen Green comprises four elements, namely;

The Dye House

The Workshop, The Cloth Loft The Weaving Shed

The Warehouse, The Glasshouse

The Frame House The Bleach House

Also included within the periphery of the Linen Green are three components suitable for further development or refurbishment and which are included in the sale, namely;

Lamont Warehouse

Former Post Office

Grahams Buildings (Derelict Outbuildings)


The Dye House The Weaving Shed

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5

5a

6

6a

7

8

1

Ground Floor

4

7

4 9c1

First Floor

Unit Tenant Gross Internal Floor Area (Approx)

1 Vacant Bar 275.80m2 2969 ft2

2 / 3 Pavers 288.13m2 3101 ft2

4 Bedeck Ltd 1047.53m2 11276 ft2

5 Vacant Shop 89.30m2 961 ft2

5a A La Mode 89.30m2 961 ft2

6 The Sports Studio 89.79m2 966 ft2

6a Janet McCready 89.52m2 964 ft2

7 Pricewaterhouse 851.18m2 9162 ft2

Coopers

8 Vacant Shop 210.70m2 2268 ft2

9c Oasis Dental Surgery 210.70m2 2268 ft2

Total 3205.53 m2 34504 ft2

The Dye House

Plans & Floor Areas

A complete set of architect’s floor plans has been complied by Des Cairns Architecture. The plans detail internal layouts and corresponding gross internal floor areas. The plans are available within the Purchasers’ Pack.

The Dye House


PriceWaterhouseCoopers offices, The Dye House

First Floor

Ground Floor

7 6

8b 8a

8e 8c8d

8F

6

Vacant A

5 4 3 21

1a

The Frame House

The Frame House

Lamont Warehouse

The Bleach House

First Floor

Ground Floor

7 6

8b 8a

8e 8c8d

8f

Vacant A

5 4 3 21

1a

The Frame House

The Frame House

Lamont Warehouse

The Bleach House

Ground Floor

Plans & Floor Areas

The Framehouse& The Bleach House


The Framehouse Lamont Warehouse

Vacant B


1 Moygashel Post Office 64.46 m2 694 ft2

1a Miss Maggies 18.46 m2 199 ft2

2 Vacant Shop 88.43 m2 952 ft2

3 David Graham 88.36 m2 951 ft2

Hairdessing

4 The Boudoir 89.23 m2 960 ft2

5 Paul’s Boutique 89.22 m2 960 ft2

6 Paperworks 79.20 m2 853 ft2

7 The Lingerie Room 100.07 m2 1077 ft2

8b Vacant Offices 470.96 m2 5069 ft2

8a,c,d Tailored Image Ltd 1143.29 m2 12306 ft2

8e Vacant Warehouse 331.34 m2 3567 ft2

A Vacant Warehouse 522.09 m2 5620 ft2

B Vacant Warehouse 137.81 m2 1483 ft2

Total 3222.92 m2 34691 ft2

The Framehouse& The Bleach House

Lamont WarehouseUnit Tenant Gross Internal Floor Area (Approx)

8f Lamont Warehouse 2030.05 m2 21851 ft2

Total 2030.05 m2 21851 ft2


22 The Linen Mill 208.82 m2 2248 ft2

23 The Linen Mill 101.33 m2 1091 ft2

24 Gareth McFarland 101.00 m2 1087 ft2

25 Ring O’Rosies 101.00 m2 1087 ft2

26 The Art Room 99.75 m2 1074 ft2

27 Linen Green 203.23 m2 2188 ft2

Farm Shop

27a Newbridge Silverware 62.56 m2 673 ft2

28a Vacant Offices 614.13 m2 6610 ft2

28 Mi Mismo 40.02 m2 431 ft2

29 Back on Track 110.98 m2 1195 ft2

30 Deli on the Green 259.30 m2 2791 ft2

Total 1902.12 m2 20475 ft2

The Warehouse& The Glass House

The Warehouse

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28a 28

2727a 26 25 24 23 22

30

29 29

Ground Floor

Vacant Offices

Vacant Offices

Level 1/2

Level 3

The Glass House

First Floor


Plans & Floor Areas

The Warehouse& The Glass House

The Glass House

The Warehouse



9a&b Vacant Offices 243.87 m2 2625 ft2

The Workshop


10,11 Ulster Weavers 645.94 m2 6953 ft2

10a The Coffee Loft 371.00 m2 3993 ft2

10b Exhibition Centre 113.00 m2 1216 ft2

10b Function Room 99.05 m2 1066 ft2

The Cloth Loft


12,18 Panache Shoes 198.37m2 2135 ft2

14 Storey Menswear 69.19 m2 745 ft2

15,16, 19 Foxford 303.83 m2 3270 ft2

17 Anne Storey 91.01 m2 980 ft2


Total 2505.08 m2 26963 ft2

The Weaving Sheds

20

17

15/16

14

12

11

109

18

19

Basement

The Weaving Sheds

The Cloth Loft The Workshop

10a

10b 10b

9a&b

Mezzanine

The Cloth Loft The Workshop

First Floor

Ground Floor


The Workshop,The Cloth Loft &The Weaving Sheds

The Workshop & The Cloth Loft

Unit No. Floor Tenant Gross Internal Lease term Lease Lease End Next Review Break date Current rent (P.A) Total Service Charge PA* Rates (NAV) Rates Payable Comments Area (sqft) (years) Commencement (LL Shortfall) @ 0.538351 (LL Shortfall)

1 G&F Vacant Wine Bar 2,969 — — — — — — £5,417.68 £15,600 £8,398 —

2&3 G Pavers Ltd 3,101 10 21-Jul-08 21-Jul-18 21-Jul-13 — £54,950 £4,673.65 £25,000 £13,459 —

4 G Bedeck Ltd 11,276 15 01-Jan-09 31-Dec-14 — — £60,000 £16,336.20 £58,800 £31,655 Rent increases to £80,000 pa in July 2013 & Mezz then to £100,000 pa in 2014

5 G Vacant Shop 961 — — — — — — £1,487.95 £7,650 £4,118 —

5a G Sandra Tomas Elli 961 5 15-Oct-10 14-Oct-15 — — £13,500 £1,487.95 £7,650 £4,118 Stepped rent to £15,000 in 2014 t/a A LA Mode

6 G The Sports Studio Ltd 966 5 23-Aug-10 22-Aug-15 — 24-Aug-13 £15,000 £1,487.95 £7,650 £4,118 Tenant has exercised break option

6a G Janet Mc Cready Opticians 964 10 19-Dec-08 18-Dec-18 19-Dec-13 — £12,000 £1,487.95 £7,650 £4,118 —

7 G&F PriceWaterHouseCoopers 9,162 10 13-Dec-10 12-Dec-20 13-Dec-15 — £120,000 £13,519.51 £39,000 £20,996 RPI Linked Rent Review in 2015. Services Ltd Cap and Collar at 1-3%.

8 G&F Vacant Shop 2,268 10 24-Nov-08 23-Nov-18 23-Nov-13 — — £3,396.99 £14,100 £7,591 Tenant recently vacated. Previous rent £21,564.

9 F Oasis Dental Surgery 1,876 — — — — — £14,000 £3,286.94 £7,850 £4,226 —

SUB TOTAL 34,504 £289.450

The Dye House

Schedule of Accommodation & Tenancies


The vast majority of tenancies are drawn on full repairing and insuring terms through the Service Charge. A more detailed tenancy schedule outlining available documentation and salient lease terms is available in the Purchasers’ Pack.

The Workshop, The Cloth Loft & The Weaving Shed



9 G Vacant Shop 3,004 — — — — — — £3,847.90 £12,500 £6,729 —

9a&b F Vacant Offices 2,625 — — — — — — £3,758.87 £8,100 £4,361 — & Mezz

10&11 G Kincull Ltd t/a Ulster Weavers 6,953 10 01-Aug-12 31-Jul-15 — 31-Jul-12 £30,000 £19,028.53 £22,200 £11,951 Rent previously £70,000 pa. Largest retail unit in scheme

10a F The Coffee Loft 3,993 10 01-May-08 30-Apr-18 01-May-13 — £24,000 £5,605.11 £16,100 £8,667 —

10b F Exhibition Centre 2,282 — — — — — — £1,733.46 £10,200 £0 Periodic income generated. & Function Room Rates not payable as exhibition space

12&18 G Gareth & Janice Bell t/a 2,135 10 01-Jan-06 31-Dec-16 01-Jan-11 — £22,500 £3,264.56 £10,000 £5,384 — Panache Shoe Company

14 G Anne Storey t/a 745 3 01-Aug-05 31-Jul-08 — — £9,300 £1,754.55 £6,250 £3,365 — Storey Menswear

15,16 G Belasa Weavers 3,270 10 01-Jun-00 31-May-03 — — £25,000 £6,658.73 £19,300 £10,390 —&19 t/a Foxford International

17 G United Fashion International 980 10 03-Jan-00 02-Jan-03 — — £12,500 £2,455.86 £8,050 £4,334 — t/a Anne Storey

21 G Vacant Shop 976 — — — — — — £1,818.27 £4,000 £2,153 —

SUB TOTAL 26,963 £123,300



1 G Diane McClements 694 10 01-May-09 30-Apr-19 — — £0 £1,025.20 £3,900 £2,100 Sold off on 10 year lease t/a Moygashel Post Office Super reversion 2019

1a G Martina McLaughlin 199 — 30-Oct-12 29-Oct-14 — — £1,650 £202.36 £850 £458 New Letting -

2 G Vacant Shop 952 — — — — — — £1,403.14 £5,250 £2,826 —

3 G David Graham t/a 951 10 14-Sep-10 13-Sep-20 14-Sep-15 14-Sep-15 £10,000 £1,400.16 £5,150 £2,773 Lease provides for annual David Graham Hair Dressing fixed uplifts, which have not t/a The Lingerie Room been effected

4 G Donovan & Teresa Ross 960 10 01-Jun-09 31-May-19 01-Jun-14 31-May-14 £11,900 £1,413.55 £5,250 £2,826 Rent reduction. Contracted t/a The Boudoir to pay £17,000 pa

5 G Paul Coote t/a 960 10 31-Mar-07 30-Mar-17 31-Mar-12 — £14,000 £1,397.18 £5,250 £2,826 — Pauls Boutique

6 G Enterprise Stationary Ltd 853 10 01-Aug-07 31-Jul-17 01-Aug-12 — £13,095 £1,254.34 £4,650 £2,503 — t/a Paperworks

7 G Yvonne Mc Farland 1,077 10 01-Aug-12 31-Jul-17 01-Aug-14 — £8,000 £1,581.69 £5,900 £3,176 Fixed uplift to £8,500 pa in 2014 t/a The Lingerie Room

8b F Vacant Offices 5,069 — — — — — — £7,589.05 £19,100 £10,283 —

8a,c,d F Tailored Image Ltd 12,306 3 01-Mar-13 27-Feb-18 — 01-Mar-15 £20,750 £7,684.46 £7,550 £4,065 Offices and Warehouse. Fixed uplift to £21.750 in March 2015

8e F Vacant Warehouse 3,567 — — — — — — N/A Assumed Unrated £0 Poor condition

A G Vacant Warehouse 5,620 — — — — — — N/A Assumed Unrated £0 Very poor condition

B G Vacant Warehouse 1,483 — — — — — — N/A Assumed Unrated £0 Very poor condition

SUB TOTAL 34,691 £79,395

The Frame House & The Bleach House



Unit No. Floor Tenant Gross Internal Lease term Lease Lease End Next Review Break date Current rent (P.A) Total Service Charge PA* Rates (NAV) Rates Payable Comments Area (sqft) (years) Commencement (LL Shortfall) @ 0.538351

8f G Vacant Warehouse 21,851 — — — — — — N/A Assumed Unrated Assumed Unrated Poor condition

SUB TOTAL 21,851 £0

Lamont Warehouse



22 G The Linen Mill House 2,248 10 14-Sep-06 13-Sep-16 14-Sep-11 — — £3,367.23 £18,200 £9,798 Tenant in arrears. Removal process and Garden Ltd on going. Old rent £30,967. Tenant liable for rates while still in occupation

23 G The Linen Mill House 1,091 7.5 01-May-09 13-Sep-16 14-Sep-11 — — £1,633.77 £8,600 £4,630 — and Garden Ltd

24 G Gareth Mc Farland 1,087 5 01-Aug-12 31-Jul-17 — 31-Jul-14 £10,000 £1,633.77 £7,750 £4,172 — Interiors Ltd

25 G Orlagh Moore 1,087 10 28-Feb-06 27-Feb-16 28-Feb-11 — £14,000 £1,633.77 £8,550 £4,603 — t/a Ring O’Rosies

26 G Nigel Flemming 1,074 5 21-Nov-05 20-Nov-10 — — £9,048 £1,633.77 £8,300 £4,468 Rent reduced from £15,000 pa. Rent payed on month t/a The Art Room to month basis and is inclusive of Service Charge

27 G The Linen Green 2,188 10 07-Sep-11 06-Sep-21 — 07-Sep-16 £20,000 £2,975.90 £16,800 £9,044 — Farm Shop Ltd

27a G MCA Retail Ltd t/a Newbridge Silverware 673 3 01-Oct-10 30-Sep-13 — — £10,000 £1,041.56 £5,250 £2,826 —

28a F Vacant Offices 6,610 — — — — — — N/A Assumed Unrated £0 Requires fitting out

28 G To be let to James Malliagh 431 — — — — — — £589.23 £3,000 £1,615 New lease agreed to James Malliagh & & Patricia Devlin & Patricia Devlin at £3,900 p.a. Tenant has not taken occupation due to electrical issue being unresolved.

29 G Julie Mc Cammon 1,195 5 20-Jun-10 19-May-16 — — £13,620 £1,344.76 £8,200 £4,414 — t/a Back on Track

30 G Claire Murray 2,791 10 15-May-06 14-May-16 15-May-11 — £27,000 £4,136.50 £18,400 £9,906 — t/a Deli On The Green

SUB TOTAL 20,475 £103,688

The Warehouse & The Glass House


Unit No. Floor Tenant Gross Internal Lease term Lease Lease End Next Review Break date Current rent (P.A) Total Service Charge PA* Rates (NAV) Rates Payable Comments Area (sqft) (years) Commencement (LL Shortfall) @ 0.538351

Grahams G Derelict Outbuildings N/a — — — — — — N/A Assumed Unrated £0 Unuseable. Foot print circa 0.5 acreBuildings

Former G&F Vacant Shop & House 1,950 — — — — — — N/A Assumed Unrated £0 Poor ConditionPO

SUB TOTAL 1,590 £0

Grahams Buildings & Former Post Office


Linen Green Total


Total Floor Area

140,434Total Income

£595,813Total Service Charge Budget

£147,450Service Charge Shortfall

£37,677Rates Shortfall

£24,037Net Income After Landlord Service Charge & Rates Shortfalls

£534,098Landlord Rates calculated at 50% vacant discount. Prospective purchasers must satisfy themselves in this regard.

Service Charge shortfall based on 2012-13 Service Charge Budget, available in the Purchasers’ Pack. The 2013-14 Forecast Budget is also available in the Purchasers’ Pack.

Please note that the tenancy schedule is given strictly subject to contract and without prejudice.

PWCServices Limited Experian gives PriceWaterhouseCoopers Services Limited a Delphi Score of 84/100, classifying it as a Low Risk company.

Bedeck LtdExperian gives Bedeck Ltd a Delphi Score of 81/100, classifying it as a Low Risk company.

Tailored Image Limited Tailored Image Limited are highly successful designers, manufactures and suppliers of made to measure corporateclothing, work wear, staff wear, office uniforms and businesssuits. They have a large client baseacross the UK and ROI and supply uniforms to the Irish Civil Service. They recently expanded their operation at Linen Green and now occupy over 12,000 sq ft.

Experian gives Tailored Image Limited a Delphi Score of 78/100, classifying it as a Low Risk company.

Pavers LtdExperian gives Pavers Ltd a Delphi Score of 89/100, classifying it as a Low Risk company.

Oasis Dental SurgeryOasis is a leading provider of NHS and Private Dental Care, with over 200 practices across England, Wales and Northern Ireland.

National covenants of note include:

The majority of tenants comprise local occupiers and individuals and include a number of long established and successful businesses including, Ulster Weavers, Foxford, The Coffee Loft, Paperworks and Deli On The Green.

Covenant Strength by Income: National & Multiple Covenants – 45% Local Covenants – 55%

45%55%62%

11%

22%

5%

Income Analysis by Sector: Retail Shop – 62% Restaurant – 11% Offices / Warehousing – 22% Medical – 5%

Tenants Covenants


Service Charge & Unrecoverable Costs The service charge for the year commencing 1st May 2012 is budgeted at £147,450 per annum and payable by all tenants. The rate per square foot reflects in the region of £1.50 for most tenants. The 2013 -14 Forecasted Budget is £154,050. Service Charge Budgets are available in the Purchasers’ Pack.

The current landlord annual shortfall is in the region of £37,677 per annum.

The tenants at Linen Green are liable for their own Rates. However, Landlords in Northern Ireland are liable for Rates on vacant properties, after a 3 month vacancy period. The Rate levied is at a 50% discount to the payable rate. We have estimated the Landlord liability to currently be £24,037 per annum. We strongly advise prospective purchasers to satisfy themselves with regard to rating liabilities over the property. For more information visit: www.ipsni.gov.uk.

We calculated the combined Landlord Service Charge and Vacant Rates liability to be £61,714 per annum.

The net income is therefore in the region of £534,098 per annum.

Income Summary and Analysis of Passing Rent The property is let on 32 separate occupational leases, to a broad rangeof occupiers. The retail units are approximately 90% occupied and provide a broad mix of tenants and user types.

The leases are drawn on Full Repairing & Insuring terms via the Service Charge.

Many of the rents have been rebased over the past 2 years and the retail rental tone is now in the region of £8 -12 psf. The latest lettings undertaken during 2012 reflect these levels.

PriceWaterhouseCoopers currently pay £120,000 per annum. The lease is subject to a RPI linked rental uplift in December 2015, capped and collared at 3% and 1% respectively. This would give a potential rental uplift to £139,113 pa.

Bedeck’s rent is due to increase to £80,000 pa in July 2013, rising again to £100,000 pa in 2014.

Asset Management PotentialThe Linen Green has been in Administration for a number of yearsand now offers excellent asset management opportunities to include:

• Let vacant units

• Reposition scheme to include more multiple national tenants

• Further establish the scheme as a leisure and boutique fashion brand destination

• Further develop as historical tourist destination, capitalising on Linen Green’s manufacturing history

• Generate income from periodic letting of the Function Room & Exhibition Centre

• Open planning consents to include small grocery store

• Create additional car parking from Grahams Buildings area and land to the rear, subject to planning

• Land to rear would also be suitable for a ‘Lifestyle’ Garden Centre, subject to planning

• Office space in The Glass House is very suitable for gymnasium or retail, subject to planning

• Refurbish or redevelop Lamont Warehouse and Former Post Office

There may be opportunities to Utilise Business Premises Renovation Allowance (BPRA) on Lamont Building and the Former Post Office.

EPCThe individual properties within Linen Green have the following surmised EPC ratings:

The Frame House & The Bleach House (F 132)

The Workshop, The Cloth Loft & The Weaving Shed (C 69)

The Warehouse & The Glasshouse (D 83)

The Dye House (C 67)

Full EPCs are provided in the Purchasers’ Pack.

TenureFreehold

VATThe property has been elected for VAT, as such VAT will be payable on the purchase price. It is envisaged the transaction will be treated as a TOGC.

Purchasers’ PackA Purchasers Pack has been produced for prospective purchasers to review due diligence relating to the property and is available upon request and the completion of a Non-Disclosure Agreement. All information provided is given strictly without warranty, liability and reliance.

Planning History The Linen Green has been developed over a period of time extending to over a decade and as such there is no single planning permission which covers the whole extent of the site.

The various component parts – The Frame House, The Cloth Loft & Weaving Shed & Workshop, The Warehouse & Glasshouse and The Dye House were developed organically in response to the demand from occupiers. The Cloth Loft & Weaving Shed & Workshop were originally developed as a Visitors Centre with this being refined between 1996 and 1998 to allow retailing, craft design and restaurant uses.

The Warehouse & Glasshouse was developed around 2003/2004 as factorymill outlet retail units with a subsequent permission for restaurant in one of the units.

The Dye House was developed around 2007/2008 again as factory/mill outlet retail units with subsequent planning permission for restaurant and office uses.

The Warehouse and The Dye House planning permissions contain restrictions on the types of goods that can be sold.

The Planning (2011 Act) (Commencement No.1) Order came into effect on 1 December 2011. This alters time limits within which the DoE can take planning enforcement action to 5 years from the breach of planning control. The vast majority of tenants in Linen Mill have been in occupations in excess of 5 years.

The Administrator has commissioned a Planning Summary Report, undertaken by Pragma Planning and is available in the Purchasers’ Pack.


Disclaimer : CBRE

These particulars are issued by CBRE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property.

April 2013

We are instructed to seek offers in the region of £5,000,000 (Five Million Pounds) for our client’s freehold interest, subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield after service charge and rates shortfalls of 10% and an attractive capital value of £36 per sq ft overall (disregarding derelict buildings to rear).

Proposal

Telephone028 9043 8555

Fax028 9043 9444

www.cbre.co.uk/ni

CBREImperial HouseDonegall Square EastBelfast BT1 5HD

Tim ReidCapital Markets


[email protected]

Gavin ElliottCapital Markets


[email protected]

“The Linen Green is often a busy place but that’s what I like about it. Plenty of buzz. There are clothes shops, a farm shop, a post office, a sports shop, gift shops and three places to choose to eat from.”Trip Advisor comment. Visited February 2013, Belfast Co. Antrim.

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