Broadway Shopping Centre & Broadway Square by Creativeworld

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH, LONDON PRIME RETAIL INVESTMENT OPPORTUNITY

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH ‘A prime 524,100 sq ft shopping centre and high street retail investment opportunity in a major London Borough’

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

INVESTMENT SUMMARY Bexleyheath is only 12 miles from central London and located in the heart of one of Europe’s largest regeneration projects.

• A prime town centre dominant Shopping Centre and Retail Park covering a site of 10.65 acres (4.31 hectares). • Bexleyheath is a south-east London suburb located just 12 miles from the centre of London. • Major commuter hub that will be further strengthened by the opening of Crossrail at Abbey Wood in 2018. • A ffluent catchment population with an above UK average representation of ABC1 demographics. • Total catchment population within 15 minutes drive time of 476,071 with population growth projected to be significantly above the UK average. • At the heart of one of Europe’s largest regeneration and investment projects, the Thames Gateway.

• Broadway Shopping Centre, totalling 387,902 sq ft was developed in 1984 and was refurbished in 2007. • Broadway Square was developed in 2001, providing 139,831 sq ft of modern, large and flexible retail and leisure units. • Strong footfall in excess of 9 million per annum. • Anchored by an 84,000 sq ft M&S. • Large stores let to H&M, New Look, WH Smith, Boots, J Sainsbury, TK Maxx and Bhs (on a peppercorn lease). • Re-based rental tone of £75-110 psf Zone A. • B roadway Square is let off low average passing rents of between £15-30 psf.

• Complete control of the town centre parking with two car parks, offering a total of 1,325 shopper spaces within the ownership. • A WAULT of 13 years to expiry and 12 years to break. • 83% of the current income is secured against national multiple covenants and 9% is generated by the landlord controlled car parks. • 64% of the income is secured beyond 5 years. • Recent new lettings include: Metro Bank, Pandora, Schuh, Peacocks, Select and Foot Asylum. • Contracted income of £10,527,601 per annum and a net operating income of £8,185,401 per annum. • S ignificant asset management potential.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

LOCATION

BIRMINGHAM

Bexleyheath town centre is a London suburb, located in the Borough of Bexley, approximately 12 miles (18 kilometres) south-east of Central London. Bexleyheathâ&#x20AC;&#x2122;s proximity to the worlds leading financial city makes it an attractive residential and commercial location with a high concentration of commuter based residents.

ROAD

LONDON

M3 SOUTHAMPTON

BUS Bexleyheath benefits from a significant number of regular bus routes linking the town to London and the surrounding areas including Greenwich, Woolwich, Thamesmead, Lewisham, Sidcup and Dartford.

Bexleyheath is located on the A2(T) linking with the A102(T) (Blackwall Tunnel) to East London and to Junction 2 of the M25 motorway 6 miles (9 kilometres) to the south-east of the town centre.

RAIL

AIR Bexleyheath railway station offers regular direct rail services to London Victoria, London Charing Cross and London Cannon Street with an average journey time of 35 minutes. London Bridge Station has a fastest journey time of 28 minutes. In 2018 Crossrail will connect to the Borough with a new station at Abbey Wood, 3 miles to the north. This will provide access to Londonâ&#x20AC;&#x2122;s West End in 20 minutes.

London City Airport is located 10 miles (16 kilometres) north-west of Bexleyheath. Gatwick Airport is located 33 miles south-west of the town. These airports provide a variety of domestic and international flights, with City Airport serving 45 European destinations and Gatwick airport serving over 33m passengers to approximately 200 destinations in 90 countries.

M11 M25 M2 M20

DOVER CHANNEL TUNNEL

BEXLEYHEATH

London is the worlds leading financial centre.

KINGSLAND RD

West Ham

A13

East Ham

THA

A13

A13 CITY OF LONDON

A1 3

A1 3 03 A12

A12 61

LONDON BRIDGE

LONDON CITY AIRPORT

BLACKWALL TUNNEL

THE SHARD

WOOLWICH FERRY

RIVER THAMES

Bermondsey

MES GA TE W A

A 12

IT E C WH

D LR PE A H

A13

M11

ROYAL DOCKS RD

CIT YR D

Abbey Wood Crossrail

CANARY WHARF

Belvedere Greenwich A2

Camberwell A202

Woolwich

GREENWICH OBSERVATORY

ER G ARD EN S

A202

MW AY

EL TH

Horn Park

Dulwich Village

A20 7

Eltham

Erith

A20 7

ENC

H ES T ER

BEXLEYHEATH

WAY

J2 M25 RD NSTED STA

Bexley

Sidcup

Crossrail will reduce the journey time to London’s West End to just 20 minutes. 7

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

BROADWAY SHOPPING CENTRE

BROADWAY SQUARE

• Extensive refurbishment in 2007

• Developed in 2001

• Shopper footfall in excess of 9m per annum

• 7 well configured and flexible units

• 387,902 sq ft of retail accommodation

• 139,831 sq ft

• 84,000 sq ft M&S

• 340 car parking spaces

• 985 car parking spaces

• 100% let to strong national covenants

•

Opportunity to: - Re-gear head lease - Increase car park tariffs - Unit and tenant engineering (M&S / Bhs)

BROADWAY SHOPPING CENTRE BROADWAY SQUARE

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

SITUATION

A2 20

Bexleyheath

AM R

A2 0 7

BR O O K

A2 2

E ROCHESTER W AY

ON UP T RD

UR ST

N O

E ROCHESTER WAY BLENDON RD

IO N R D LATH

UP T

H ST

A LB

Barnehurst

BROADWAY SHOPPING CENTRE & SQUARE

A 2 21

A221

SYDNEY RD

LY ND H

A220

A20 7

The schemes form the heart of Bexleyheath town centre and prime shopping location for the Borough of Bexley.

WOOLWICH

BE A20 7

Broadway Shopping Centre is serviced from the southern side of the scheme off Albion Road where a designated ramp provides access to the first floor service deck.

CHURCH RD

Broadway Square has designated servicing from Arnsberg Way.

Bexleyheath

TO W N LE Y

Access to Broadway Square is via Broadway, and Broadway Square surface car park.

RS RD

Broadway Shopping Centre’s principal entrance is from the pedestrianised Broadway and Market Place connecting directly into the mall. There are additional entrances at the eastern end of the scheme from Norwich Place, adjacent to M&S, and at the western end of the scheme from Townley Road, adjacent to Bhs.

ALE

Broadway Square is located adjacent to and north-east of Broadway Shopping Centre. Broadway Square is bounded by Arnsberg Way (A221) to the northeast, Market Place to the north-west and Broadway to the south.

A221

Broadway Shopping Centre occupies an ‘island’ site. It is bounded by the town’s principal pedestrianised retail thoroughfare Broadway to the north, Townley Road to the west and Albion Road (A207) to the south.

BROADWAY SQUARE

D TR URS NEH BAR

BROADWAY SHOPPING CENTRE

LVEDER E RD

Broadway Shopping Centre and Broadway Square form the heart of Bexleyheath town centre and the prime shopping location for the Borough.

BEXLEY CIVIC OFFICES

AY W D A

CINEWORLD

MARRIOTT HOTEL

FORMER CIVIC OFFICE DEVELOPMENT SITE BROADWAY SQUARE

BROADWAY SHOPPING CENTRE

BEXLEY MAGISTRATES COURT

AY W D

PRIMARK

ASDA

PREMIER INN

AY W D A

RAINHAM LONDON

BEXLEYHEATH

WOOLWICH GREENWICH

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

DULWICH VILLAGE

HOM PARK BEXLEY

DARTFORD

GRAVESEND

SIDCUP BROMLEY

THORNTON HEATH

SHORNE HIGHAM SWANLEY

LONGFIELD HARTLEY

WEST WICKHAM

ROCHESTER

COBHAM

MEOPHAM

OPRPINGTON

DEMOGRAPHICS & CATCHMENT CROYDON

CHELSFIELD

ADDLINGTON

STANSTED

SHOREHAM

BIGGIN HILL

OTFORD

SEVENOAKS

Bexleyheath is classified as a Metropolitan London Satellite Retail Centre based on its retail offer, geography and demographic profile. The town has a total annual retail expenditure of £289 million, of which comparison goods expenditure consists £130 million. 87% of this expenditure is resident based. CATCHMENT AREA LONDON

HOM PARK BEXLEY

DARTFORD

THORNTON HEATH

LONGFIELD HARTLEY

CROYDON

WEST WICKHAM

DULWICH VILLAGE

GRAVESEND

BEXLEY

COBHAM

DARTFORD

GRAVESEND

SIDCUP

ROCHESTER

MEOPHAM

OPRPINGTON

THORNTON HEATH CROYDON

CHELSFIELD

ADDLINGTON

HOM PARK

SHORNE HIGHAM SWANLEY

BEXLEYHEATH

WOOLWICH GREENWICH

SIDCUP BROMLEY

RAINHAM

LONDON

BEXLEYHEATH

WOOLWICH GREENWICH DULWICH VILLAGE

DRIVE TIMES

RAINHAM

BROMLEY

SHORNE HIGHAM SWANLEY

LONGFIELD HARTLEY

WEST WICKHAM

CHELSFIELD STANSTED

STANSTED

SHOREHAM

SHOREHAM BIGGIN HILL

BIGGIN HILL

OTFORD

SEVENOAKS

Bexleyheath benefits from a shopper population of 476,071 and a primary catchment population of 107,094, rising to a total catchment population of 939,775. The town captures 30.3% of the primary catchment population, highlighting the loyalty of the local catchment. Bexleyheath’s catchment extends north-west to Poplar and the River Thames; west to Lewisham, east to Dartford and south-east to Borough Green. RAINHAM

Catchment LONDON

Population WOOLWICH

Primary

107,094

GREENWICH

DULWICH Secondary VILLAGE

HOM PARK

BEXLEY

Tertiary

DARTFORD

167,035

CROYDON

BROMLEY

WEST WICKHAM

568,970

SWANLEY

30.3% 15.5% GRAVESEND

LONGFIELD

1.0%COBHAM MEOPHAM

939,775

6.6%

CHELSFIELD

STANSTED

SHOREHAM BIGGIN HILL

SHORNE HIGHAM ROCHESTER

Bexleyheath has a population of 213,344 living within a 10 minute drive time which is set to grow by 4.7% to 223,315 in the next 5 years and by 9.2% to 233,019 in the next 10 years, reflecting the rapid population growth of London, the UK’s number one global city. This population growth is anticipated to drive consumer spending and demand for accommodation from retailers.

Drive Time

Population 2015

Population 2020

% Increase to 2020

Population 2025

% Increase to 2025

5 minutes

40,430

42,227

4.4%

43,977

8.8%

10 minutes

213,344

223,315

4.7%

233,019

9.2%

15 minutes

447,735

469,817

4.9%

490,387

9.5%

20 minutes

721,416

757,102

4.9%

789,770

9.5%

HARTLEY

OPRPINGTON

ADDLINGTON

Market Share

6.0%

SIDCUP

THORNTON Quaternary HEATH

Total

BEXLEYHEATH

96,676

ROCHESTER

MEOPHAM

OPRPINGTON

ADDLINGTON

COBHAM

OTFORD

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

Bexleyheath is forecast for rapid population growth driven by its close proximity to the leading global financial centre and UK’s capital city. AFFLUENT ACHIEVERS

30.0

RISING PROSPERITY

COMFORTABLE COMMUNITIES

FINANCIALLY STRETCHED

URBAN ADVERSITY

25.0 Bexley Heath Great Britain

20.0

15.0

10.0

5.0

fe Li

sh vi

st yl es W ea at lth ur C e ity So Mo ne ph C y is C ou tic ar nt e a ry er te si s C de lim C om be Su r s cc m St es un ea sf iti dy ul es N Su ei bu g C rb om hbo s ur fo ho rt ab od le s Se ni St or ar s tin g St O ut ud e M nt od Li es f St tM e riv ea in ns g Fa Po m or ili er Pe es Yo un nsi on g St s H ru D gg ard iff sh ic lin ip ul tC gE st irc at um es st an ce s

0.0

Bexleyheath benefits from an affluent catchment population with a good representation of ABC1 demographics. The town has an above UK average representation of Affluent Achievers and Comfortable Communities CACI social groups. The least affluent D and E demographics are

broadly under-represented. It is anticipated that continued investment by Bexley Council through the “Revitalising Bexleyheath Town Centre” scheme which is supported by the Mayor of London will serve to attract a larger and more affluent catchment population over the medium term.

EMPLOYMENT Bexleyheath has a strong and robust local economy, benefiting from being located within the Borough of Bexley which is at the heart of one of the most significant development areas in the UK, the Thames Gateway.

Employment within Bexleyheath is dominated by the service sector accounting for 74% of total employment in the town. ‘Financial and Business services’ accounts for 23% of total employment and manufacturing 7% of total employment.

Bexleyheath Business Partnership (BBP) has established an active BID (Business Improvement District) enabling the area to benefit from large scale public realm improvement projects and is home to a wide range of multinational and independent businesses.

Major occupiers situated within the Borough of Bexley include Coca Cola Enterprises, Texcel Technology, ADM and British Loose Leaf. These industries illustrate the importance of the Borough for growing business.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

At the heart of one of the most significant development and regeneration projects in the UK, the Thames Gateway.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

INVESTMENT IN BEXLEYHEATH Bexleyheath is the London Borough of Bexley’s strategic town centre and one of the most economically successful town centres in Greater London. Bexleyheath is located within the heart of one of the most significant development and regeneration projects in the UK, the Thames Gateway. Bexley is home to London’s third largest industrial area and some of the capital’s largest cleared sites allowing large scale new build projects to be accommodated. It is anticipated that the opening of Crossrail at Abbey Wood in 2018 which will reduce the journey time to London’s West End to 20 minutes will further drive inward investment and strengthen the town as a major commuter hub. Major projects include: • Proposed extra river crossings including the Lower Thames Link which will improve connectivity to the north of England.

• The Paramount Leisure and Theme Park development has secured initial funding and is anticipated to create 27,000 jobs on the Swanscombe Peninsula. • A new ‘garden city’ at Ebbsfleet has secured funding. • The development of Erith Western Gateway will create 400 new homes. Bexleyheath has recently benefited from the Town Centre Revitalisation project which was funded by Transport for London and focused on transport and public realm improvements around Broadway Shopping Centre and Broadway Square. To date, £3.5 million has been invested and £2.7 million funding confirmed for Phase Two, focusing on improving accessibility and connectivity at the western end of Broadway and from Market Place.

The population of Greater London is expected to increase by approximately 1 million people within the next 5 years. In response to this anticipated growth, the council is encouraging investment in the area to create up to 22,000 new homes and 10,000 new jobs. An Economic Plan for Bexley has been drafted and is at public consultation stage. The focus will be on improving infrastructure, employment and education, supporting local business growth and promoting Bexley. The plan will enable a long term growth strategy to be devised, reaffirming Bexleyheath as a major hub for business and regeneration within London.

The population of London is expected to increase by approximately 1 million people in the next 5 years. 15

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

RETAILING IN BEXLEYHEATH Broadway Shopping Centre and Broadway Square account for over 67% of the towns retail floorspace, dominating retail for Bexleyheath. Bexleyheath has a total of 923,000 sq ft of retail provision and provides 730,000 sq ft of town centre retail floorspace. Broadway Shopping Centre and Broadway Square dominate the retail provision within the town, providing 524,100 sq ft of retail accommodation and accounting for over 67% of the town’s total retail floorspace.

Broadway Leisure Park is located in the heart of the town centre adjacent to Broadway Square. The park provides 78,000 sq ft of leisure accommodation, with tenants including Cineworld, Gala Bingo, Frankie & Benny’s, Bella Italia and Zizzi. Broadway Leisure Park acts as a good footfall driver for the town.

The schemes provide the prime shopping pitch for the town and for the Borough of Bexley. Broadway Shopping Centre provides 387,902 sq ft of fashion and convenience retail and is well-anchored by an 84,000 sq ft M&S. Large stores are let to H&M, New Look, WH Smith, Boots, River Island and Bhs (on a peppercorn lease).

Significant development opportunities exist within the immediate vicinity of the property and will further strengthen the town centre:

Broadway Square sits adjacent to Broadway Shopping Centre and provides 139,831 sq ft of retail and leisure accommodation let to strong national multiple covenants including Sainsbury’s, Wilko, Poundworld, Poundland, JD Sports, TK Maxx and JD Wetherspoon. Additional retail provision within the town centre is focussed along the town’s principal retail pitch, Broadway. Tenants include a vibrant mix of national and local retailers with ASDA, Primark, Iceland, Shoe Zone, Brighthouse, Mothercare, ELC, Specsavers, Nandos, Pizza Express and Savers all within close proximity of Broadway Shopping Centre and Broadway Square.

Bexleyheath Magistrates Court - Sits directly adjacent to the property to the south of Broadway Square car park and has previously been proposed for Retail A3 and residential development. Former Civic Offices Site - The 3.6 acre site, located east of Broadway Square car park and fronting onto Arnsberg Way/Highfield Road, was acquired by Tesco and is now a cleared site with consent for an 80,000 sq ft store. Following bids from a number of developers, a party has been chosen for an important retail, leisure and residential development. Dutton Forshaw site, Broadway - Located in Broadway, east of the Cineworld complex, Aldi Supermarkets have an existing planning consent for a 17,000 sq ft store on this site. It is understood that the operators have submitted a revised application for a 30,000 sq ft store located over two levels.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

OUT OF TOWN RETAIL PROVISION Tower Retail Park, Crayford is the nearest out of town retail provision to Bexleyheath. It is situated 3 miles to the east. The 120,963 sq ft retail park has Open A1 Non Food planning permission and offers a predominantly bulky goods offer with tenants including Next, Currys PC World, Boots, Poundworld, Sports World, Hobbycraft and Pets at Home. Cannon Retail Park, Thamesmead is located 5.5 miles north-east of Bexleyheath. The 63,550 sq ft retail park has Open A1 Non Food planning permission and tenants include Argos Extra, Brantano, Next, Peacocks, Wilko and KFC. The out of town retail offer is not considered to provide competition to Broadway Shopping Centre and Broadway Square being sufficient distance from the schemes and providing predominantly a bulky goods offer.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

DESCRIPTION Broadway Shopping Centre and Broadway Square form the premier retail destination in Bexleyheath and the prime shopping pitch for the town providing 524,100 sq ft of retail and leisure accommodation. BROADWAY SHOPPING CENTRE Broadway Shopping Centre was developed in 1984 and was significantly refurbished in 2007. The enclosed centre provides 387,902 sq ft of retail and leisure accommodation at predominantly ground floor level. M&S, WH Smith, Bhs, New Look and River Island trade over ground and first floors. The scheme provides 59 retail units, including 3 cafés and 2 kiosks. The shopping centre benefits from having significant frontage to Bexleyheath’s main pedestrianised retail thoroughfare with 20 units trading onto Broadway. Broadway Shopping centre is anchored by an 84,000 sq ft M&S. MSU’s are let to strong national covenants including H&M, New Look, WH Smith, Boots and Bhs (on a peppercorn lease). The centre provides a mass market retail offer and benefits from a very good representation of national multiple retailers including River Island, Dorothy Perkins / Burton, Monsoon / Accessorize, Claire’s

Accessories, Clarks, Deichmann, Schuh, The Body Shop, Superdrug, Holland & Barrett, Argos, Clintons, Card Factory, O2, Vodafone and Game. The A3 provision includes Starbucks, Costa Coffee, Love Coffee, McDonalds and Burger King, as well as restaurants within Marks & Spencer and Bhs. Broadway Shopping Centre offers a landlord controlled and operated multi storey car park which sits above the shopping centre. It is the principal town centre car park and provides shoppers with 985 car parking spaces over three levels. The centre attracts strong footfall of 9.1 million per annum, equating to an average of 168,000 shoppers per week. The footfall is distributed across various entrances to the scheme, including from the car park, with approximately 19% of the footfall generated from Broadway Mall entrance.

BROADWAY SQUARE Broadway Square was developed in 2001 and sits adjacent to Broadway Shopping Centre. The scheme forms an integral part of the ownership, providing 139,831 sq ft of flexible and well configured retail and leisure accommodation over ground and first floors. The scheme follows a strip mall configuration and comprises 7 units let to

national multiple covenants including Sainsbury’s, Wilko, Poundworld, Poundland, JD Sports, TK Maxx and JD Wetherspoon. Broadway Square has a 340 space car park over two levels, and is the principal surface car park for the town centre.

FOOT PEAC

AS CO

COFFEE LOVE

RA PANDO T MARKE CARD

OUSE ONE W AREH

SELEC

S EMMA

CARPH

OCKS

THE FR AGRA NCE STOR E

THOM

BANK

ASYLU

TO BE METR O

SCHU

THE EM

PORIU

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

A total of 1,325 car parking spaces and 524,100 sq ft of retail and leisure accommodation within the ownership. 19

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

Geddes Place United Reformed Church

Police Station

PLACE

TENURE Bank

96a

ET PL MARK Clock Tower Shelter

Broadway Square

El Sub Sta CW

ACE

Shelter TCBs

BROA DWAY ROMAN ROAD

Broadway Square Shopping Centre

79 71

105

107

93 to

El Sub Sta

69a

104a

104

11 to 15

4 to 5

57.7m El Sub Sta

Library

Broadway Shopping Centre Roof Car Park

Shelter 71

46 10

HIGHL AND RO AD

NORW IC

The Ma ll

55.1m

H PLAC E

ALBIO N ROAD

26 22

Magistrates Court

The ownership plan opposite is an approximate for illustrative purposes with further details available on the website.

ce y Terra

75m

Stanle

50m

VICTOR IA RO

25m

1 to 42

Kingsley Court 4

Surgery

The site totals 10.65 acres (4.31 hectares). Broadway Shopping Centre site area totals 6.89 acres and Broadway Square totals 3.75 acres.

A total site area of 10.65 acres.

Units A-F (outlined green on the plan) are held Freehold under a separate title.

TCBs

Units 80-84 (outlined purple on the plan) are also held leasehold for a term of 125 years expiring 30th August 2104, however the head rent payable on these units is calculated on the basis of 15% of net rents received.

BROADWAY SQUARE The park is held by way of a long leasehold interest from the London Borough of Bexley. The head lease is for a term of 200 years from 22nd June 2001 and expiring 21st June 2201, with approximately 186 years unexpired. The head rent payable is calculated on the basis of 7.5% of net rents received, excluding the car park income.

98a

r lte

ESS

115

113

TCB

BROADWAY SHOPPING CENTRE The principal title is held by way of a long leasehold interest from the Mayor and Burgesses of The London Borough of Bexley. The head lease is for a term of 125 years from 31st August 1979 and expiring 30th August 2104, with approximately 89 years unexpired. The head rent payable is calculated on the basis of 26.45% of net rents received. The principal title is outlined blue on the plan.

100

e Sh

Bank PW

110

110a

122

The property is predominantly held leasehold under four principal interests;

124 126

GEDDES

FRISWELL PLACE

ESS 130 132

This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074.

Grace

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

TENANCIES & INCOME The total contracted gross income including vendor guarantees (on units under offer) and top ups is £10,527,601. After the deduction of landlord irrecoverable costs including head rent, the net operating income is £8,185,401. The investment produces a current estimated value of £10,786,413. BROADWAY SHOPPING CENTRE Broadway Shopping Centre is let on 64 leases. There is currently 1 vacant unit, Unit A & E where an agreement for lease has exchanged with Metro Bank. The total contracted gross income, including vendor guarantees and top ups is £7,731,388 per annum. After the deduction of head rent, landlord costs relating to vacant units and inclusive

leases which amount to £2,045,381 per annum, and the landlords contribution towards marketing costs of £100,000 per annum and commercialisation of £15,000 per annum, the net operating income is £5,571,007 per annum Broadway Shopping Centre has a current estimated rental value of £7,738,568 per annum. The rental

values have been applied based on tenant demand, recent rental evidence and affordability. There is a broad rental tone of £75-£110 per sq ft Zone A. Leasing activity has been positive with 8 lettings and 10 lease renewals being agreed in the last 12 months.

BROADWAY SQUARE Broadway Square is let on a total of 7 leases. The total contracted gross income is £2,796,214 per annum. The scheme is fully let but after the deduction of the head rent of £181,819 per annum, the net operating income is £2,614,394 per annum.

Broadway Square has a current estimated rental value of £3,047,845 per annum. The rental values have been applied on a unit by unit global basis based on tenant demand, recent rental evidence and affordability. The rents range between £15 - £30 per sq ft, providing excellent prospects for rental growth.

The investment has a current estimated rental value of £10,786,413 per annum.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

£9,000,000

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH £8,000,000 Lease Contracted Income Scenario

Lease Contracted Income Scenario (excluding £7,000,000 car park & commercialisation income) £9,000,000 £8,000,000 £7,000,000

National Multiple

£5,000,000

Local Trader

£4,000,000

Miscellaneous

£3,000,000

£6,000,000

INCOME ANALYSIS

£6,000,000

National Multiple

£2,000,000

£5,000,000

Local Trader

£1,000,000

£4,000,000

Miscellaneous

£0

£3,000,000

Yr 1

£2,000,000

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

Yr 24

£1,000,000 £0 Yr 1

OVERALL INVESTMENT The investment has a WAULT of 13 years to expiry and 12 years to break. 83% of the income is secured to national multiple covenants and the combined investment provides excellent security of income with over 64% of the rent secured beyond 5 years. The top 10 tenants by income account for 38.5% of the total gross rent (excluding car park and commercialisation income). Tenant

Rent

Lease Expiry

% of total rent

Sainsbury’s

£780,000

23rd June 2025

8.3%

Wilkinsons

£541,500

19th November 2020

£285,840

24th March 2026

3.0%

Boots

£281,500

24th December 2017

3.0%

H&M

£275,000

20th June 2020

2.9%

Marks & Spencer

Lease Contracted Income Scenario £270,000 28th August 2104

2.9%

JD Sports

£267,000

28th September 2025

2.8%

6th September 2015*

2.1%

£3,610,840

£6,000,000

National Multiple

£5,000,000

Local Trader

£4,000,000

Miscellaneous

*Arcadia are renewing for a further 5 years at £200,000 per annum.

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

Yr 24

Yr 25

40.00%

20.00% Miscellaneous 10.00%Local Trader National Multiple 0.00% Under 5 yrs

Under 5 yrs

5-10 yrs

10-15 yrs

15-20 yrs

Over 20 yrs

1.01%

0.00%

2.58%

1.14%

0.00%

32.23%

48.14%

5.09%

0.00%

9.81%

5-10 yrs

10-15 yrs

15-20 yrs

Over 20 yrs

Miscellaneous

1.01%

0.00%

Local Trader

2.58%

1.14%

0.00%

National Multiple

32.23%

48.14%

5.09%

0.00%

9.81%

Rent by Covenant Type

38.5%

£7,000,000

Yr 11

50.00%

0.00%

TK Maxx

Yr 10

60.00%

10.00%

3.4%

Yr 9

Unexpired Term & Covenant

30.00%

28th September 2019

Yr 8

Unexpired Term & Covenant

40.00%

£320,000

Yr 7

Unexpired Term And Covenant (excluding car park & commercialisation income)

20.00%

WH Smith

£8,000,000

Yr 6

30.00%

4.2%

TOTAL

Yr 5

50.00%

28th December 2104

£200,000

Yr 4

5.8%

£390,000

Burton / Dorothy Perkins

Yr 3

60.00%

Marks & Spencer

£9,000,000

Yr 2

National Multiple 83.4% Local Trader 3.4% Mall Income 3.3%

£3,000,000

Miscellaneous 0.9%

£2,000,000

Car Park 8.9%

83% of the income is secured to national multiple covenants. £1,000,000 £0

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

Yr 24

Yr 25

Lease Contracted Income Scenario (excluding car park & commercialisation income)

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

£8,000,000 BROADWAY SHOPPING CENTRE £7,000,000

Lease Contracted Income Scenario £6,000,000 Lease Contracted Income Scenario (excluding car park & commercialisation income) (excluding car park & commercialisation income) £5,000,000

INCOME ANALYSIS

£8,000,000

£4,000,000

£7,000,000

£3,000,000

£6,000,000

£2,000,000

£5,000,000

£1,000,000

£4,000,000

£0

BROADWAY SHOPPING CENTRE

BROADWAY SQUARE

£3,000,000

• Strong WAULT of 14.9 years to expiry and 13.5 years to break.

• WAULT of 8.1 years to expiry.

£2,000,000

• 86% of the income secured against national multiple covenants.

£1,000,000

• 83% of the income secured against national multiple covenants. • 54% of the rent secured beyond 5 years.

• 91% of the rent secured beyond 5 years (assumes Poundworld hold over for 6 months).

• 6.8% of the rent secured to the car park.

• 14.5% of the rent secured to the car park.

Broadway Shopping Centre and Broadway Square offer a robust income stream, secured on strong national multiple covenants.

National Multiple Local Trader Miscellaneous

National Multiple Local Trader Yr 1

Yr 2

Yr 3

Yr 5

Yr 4

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Miscellaneous Yr Yr Yr Yr 14

Yr 18

Yr 19

Yr 20

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Unexpired Term & Covenant

Unexpired(excluding Term And car Covenant park & commercialisation income) (excluding car park & commercialisation income) 50.00% 40.00%

Unexpired Term & Covenant 35.00% (excluding car park & commercialisation income) 30.00% 25.00% 50.00%

20.00%

40.00%

10.00%

30.00%

0.00%

45.00%

15.00%

35.00%

5.00%

25.00% Miscellaneous 20.00%

5-10 yrs

10-15 yrs

1.41%

0.00%

3.60%

1.60%

41.31%

10.00% Multiple National 5.00% 0.00%

£7,000,000 £6,000,000

National Multiple

£5,000,000

Local Trader

£4,000,000

15-20 yrs

Over 20 yrs

0.00%

38.41%

0.00%

13.68%

15-20 yrs

Over 20 yrs

Under 5 yrs

5-10 yrs

10-15 yrs

Miscellaneous

1.41%

0.00%

Local Trader

3.60%

1.60%

0.00%

National Multiple

41.31%

38.41%

0.00%

0.00% Rent 0.00%

0.00%

0.00% by Covenant Type 13.68%

National Multiple 82.5% Local Trader 4.8%

Miscellaneous

£3,000,000

Mall Income 4.6% Miscellaneous 1.3%

£2,000,000

Car Park 6.8%

£1,000,000 £0 Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

Yr 24

A strong WAULT of 14.9 years to expiry and 13.5 years to break. 26

Under 5 yrs

Local Trader 15.00%

£8,000,000

Yr 25

Yr 22

£0

45.00%

Lease Contracted Income Scenario (excluding car park & commercialisation income)

Yr 21

Yr 23

Yr 24

Yr 25

Yr 23

Yr 24

Yr 25

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

Lease Contracted Income Scenario (excluding car park & commercialisation income) £2,500,000

£2,000,000

National Multiple

Nat

£1,500,000

Car £1,000,000

£500,000

£0 Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Yr 10

Yr 11

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

Yr 24

Yr 25

BROADWAY SQUARE Lease Contracted Income Scenario Unexpired Term & Covenant (excluding car park & commercialisation income) (excluding car park & commercialisation income)

Lease Contracted Income Lease Contracted IncomeScenario Scenario (excluding car & park & commercialisationincome) income) (excluding car park commercialisation

Unexpired Term And Covenant (excluding car park & commercialisation income)

£2,500,000

Rent by Covenant Type

80.00%

£2,500,000 £2,000,000 £2,000,000

National Multiple

10.00%

£500,000

0.00%

£500,000

National Multiple

£0 Yr 1 Yr 4

Yr 5

Yr 6

Yr 7

Yr 8

Yr 9

Car Park 14.5%

20.00%

£1,000,000

Yr 3

National Multiple 85.5%

30.00%

£1,000,000

Yr 2

National Multiple 85.5%

40.00%

£1,500,000

Yr 1

60.00% 50.00%

£1,500,000

£0

70.00%

Yr 10

Yr 2 Yr 11

Yr 3 Yr 12

Yr 4 Yr 13

Yr 5 Yr 14

Yr 6 Yr 15

Yr 7 Yr 16

Yr 8 Yr 17

Yr 9 Yr 18

Yr 10 Yr 19

Yr 11 Yr 20

Yr 12

Yr 13

Yr 14

Yr 15

Yr 16

Yr 17

Under 5 yrs

5-10 yrs

10-15 yrs

15-20 yrs

Over 20 yrs

9.22%

72.80%

17.99%

0.00%

Yr 18

Yr 19

Yr 20

Yr 21

Yr 22

Yr 23

(Assumes Poundworld hold over for 6 months)

Yr 21

Yr 22

Yr 23

Yr 24

Yr 25

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

CAR PARKING Broadway Shopping Centre and Broadway Square provide 1,325 shopper spaces and provide a landlord with complete control over town centre parking. BROADWAY SHOPPING CENTRE Broadway Shopping Centre has an integrated landlord controlled and operated 985 space multi storey car park. The car park sits above the shopping centre over two levels and links directly into the shopping mall, via seven passenger lifts. The car park is controlled by barrier entry and exit with pay on foot machines. The car park is accessed via a ramp at the rear of the scheme on Albion Road. The car park has generated an average net income of £454,494 per annum over the last 3 years. The full breakdown is outlined below:

BROADWAY SQUARE CAR PARK Broadway Square car park sits adjacent to Broadway Shopping Centre and directly in front of Broadway Square. The car park provides 340 spaces and is the town’s principal surface car park. The car park is accessed at grade from Highfield Road and benefits from a lower underground level. The car park is controlled by barrier entry and exit and pay on foot machines. The car park has generated an average net income of £371,959 per annum over the last 3 years. The full breakdown is outlined below: Year

Gross Income (Net of VAT)

Operating Costs

£ Refunded to Tenants

Net Income

Year

Gross Income (Net of VAT)

Operating Costs

Net Income

2014

£578,540

£342,508

£108,267

£344,299

2014

£814,934

£371,084

£443,850

2013

£568,861

£309,686

£97,892

£357,067

2013

£815,160

£367,915

£447,247

2012

£592,920

£260,869

£82,461

£414,511

2012

£833,530

£361,145

£472,386

The net operating income for the car park for 2015 is projected to be £509,024. The car park is operated by the Centre Management team and the current tariff is as follows: Length of Stay

Tariff

0-2 hrs

£1.00

2-4 hrs

£1.50

4-6 hrs

£2.70

Over 6 hrs

£5.00

Free after 5.30pm on Thursday (late night opening) The landlord has commissioned a report that illustrates the potential to increase car parking tariffs in order to drive income within the shopping centre. Further information is available on request.

The net operating income from the car park for 2015 is projected to be £315,952. 68% of the income from the car park is distributed back to the tenants, which offsets their contributions to the service charge, with the exception of Sainsbury’s and Poundland who contribute the full amount towards the service charge. The car park is operated by the Centre Management team and the current tariff is as follows: Length of Stay

Tariff

0-1 hrs

£0.50

1-2 hrs

£1.00

2-3 hrs

£1.30

3-4 hrs

£2.30

4-5 hrs

£3.50

5-6 hrs

£4.50

6-7 hrs

£5.50

Plus £1 per hour thereafter 28

The ownership provides a landlord with complete control over town centre parking.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

COMMERCIALISATION Broadway Shopping Centre has a commercialisation contract in place with Space & People. After a 22.5% pay away to Space & People the net income for 2013 was £322,518 and 2014 was £310,634. The landlord contributes £15,000 to the service charge for the benefit of the services enjoyed by RMU operators.

SERVICE CHARGE The operating costs for the asset are covered by two comprehensive service charges. The service charge period runs from January to January and a summary of the service charge audited accounts over the past 3 years, together with budgeted costs for 2015 are as follows: Service Charge Year to 1st Jan

Status

Broadway Shopping Centre Total Expenditure

Broadway Square Total Expenditure

2015

Budget

£1,928,823

£709,907

2014

Reconciled

£1,753,447

£497,078

2013

Reconciled

£1,744,855

£495,366

2012

Reconciled

£1,763,946

£475,395

The service charges are calculated on a weighted gross internal area basis as per the occupational leases. The total current service charge budget for Broadway Shopping Centre is £1,928,823, equating to £4.90 per sq ft. The total current service charge budget for Broadway Square is £709,907, equating to £5.12 per sq ft. The service charge budget for Broadway Square is due to decrease in 2016. This is due to a non recurring charge of £115,000 for the replacement of the car park barriers and equipment which had been budgeted for in 2015.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

MARKETING BUDGET The total marketing budget for Broadway Shopping Centre for 2015 is £200,000 per annum. Marketing is organised through the Tenants Association. Contributions are match funded by the Landlord and fall outside of the service charge. The Landlord contributes £100,000 towards the total marketing budget for Broadway Shopping Centre in 2015. The marketing budget for Broadway Square for 2015/2016 is £5,700 per annum and this is funded through the service charge.

FOOTFALL Broadway Shopping Centre benefits from strong annual footfall with 9.1 million shoppers in 2014. Historic annual footfall for Broadway Shopping Centre has been in excess of 9.8 million. Footfall is forecast to increase following the completion of town centre infrastructure improvements.

In excess of 9 million shoppers per annum.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

ASSET MANAGEMENT OPPORTUNITIES • Progress positive discussions with Bexley Borough Council to extend the head lease for Broadway Shopping Centre. • The landlord has commissioned a report illustrating the potential opportunity to increase car parking tariffs in order to fall in line with Bexley Borough Council’s three principal car parks within the town centre. It is estimated that approximately £150,000 of additional net receipts could be collected by undertaking this initiative. Further information available on the website. • Bhs occupy their 60,000 sq ft store on a peppercorn lease. Although Bhs have invested in their store, plans have been investigated by the landlord demonstrating the potential to split the store to create large units fronting the mall with D2 leisure use at first floor or the creation of a vibrant A3 food court. • M&S currently trade from two stores in Broadway Shopping Centre. A potential plan would be extending the northern unit onto Norwich Place, consolidating M&S, and enabling the remaining store to be re-let to a new retailer. • Magistrates Court – Plans exist which identify the opportunity to redevelop the adjoining site for retail and leisure within the current buildings above. • Improve the prominence of Broadway Shopping Centre from both The Broadway and Townley Road through investment in signage and entrances. • I ncrease and diversify the A3 and D2 offer within the scheme and in the Square in order to increase dwell time. • Investigate the potential to undertake residential development or an extension of the shopping centre. • Complete letting to Metro Bank (in legals).

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

ENTRANCE

The Furze Wren Public House JD Weatherspoon

Extend Head Lease

Create additional A3 pods - drive dwell time

9/15

MARKET PLACE

Consider lease acquisition & split for: Next Plc / Sports Direct

12/15

Pandora

Agree early expiry lease regear / extension

9/15

3 Store

Revive Magistrates Court redevelopment, work-up A3 family dining & residential scheme RAMPS TO & FROM CAR PARK & SERVICE AREA

Work-up plans for split to create large units or food court and leisure

CIVIC SITE

Restructure leases increase sales area & efficiencies

BROADWAY SHOPPING CENTRE Card Market

The Body Shop

The Perfume Shop

Gosh

Emmas

OPTICIAN

improve A3 offer

Carphone Warehouse

BHS

3/15

TOWNLEY ROAD

ENTRANCE

THE MALL

to be TFS

Thomas Cook

Steads

Revitalise Mall Entrance

Peacocks

3/15

ENTRANCE

340

HIGHLAND RO

create retail frontage

Footasylum

to be Metro Bank

9/15

STARBUCKS

Gallery Gifts

H&T

Warren James

Greggs

Thomson

Enhance Entrance Signage

ALBION ROAD

MAGISTRATES COURT

Increase Car Park tariffs

ASSET MANAGEMENT OPPORTUNITY

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

EPCs Energy Performance Certificates for Broadway Shopping Centre and Broadway Square are available on the marketing website.

VAT We understand that the property is elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

OWNERSHIP STRUCTURE The property is held in a Luxembourg Property Unit Trust. Offers are invited for the units of the Trust. A structure chart is available on the marketing website.

PROPOSAL We are instructed to seek offers in excess of £125,000,000 (One Hundred and Twenty Five Million Pounds) for our client’s freehold and leasehold interests in the property, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.19%, an equivalent yield of 6.29% and a reversionary yield of 6.45% assuming purchaser’s costs of 5.8%. Our client would also be open to consider offers on a corporate acquisition basis.

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH

WEBSITE www.broadway-bexleyheath-investment.com

FURTHER INFORMATION For further information, please contact: Adrian Peachey Tel +44 (0)207 318 7810 Email Adrian.Peachey@eu.jll.com Giles Roberts Tel +44 (0)203 147 1584 Email Giles.Roberts@eu.jll.com Jennifer Milne Tel +44 (0)207 087 5397 Email Jennifer.Milne@eu.jll.com

BROADWAY SHOPPING CENTRE & BROADWAY SQUARE BEXLEYHEATH PRIME RETAIL INVESTMENT OPPORTUNITY

MISREPRESENTATION ACT 1967 | DISCLAIMER COPYRIGHT ÂŠ JONES LANG LASALLE IP, INC. 2015. All rights reserved. Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract. b) The information contained in this communication has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither Jones Lang LaSalle nor any of their employees, directors, advisers and / or representatives shall have any responsibility or liability whatsoever for any loss howsoever arising from any use of or reliance upon this communication or its contents or any further communication relating to the subject matter of this communication or otherwise arising in connection with this communication. The information set out herein is confidential and may be subject to updating, completion, revision, verification and amendment and such information may change materially. c) No person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to the subject matter of this communication. November 2015. Designed and produced by Creativeworld. Tel: 01282 858200.