The Precinct Coventry Brochure LR

The

Precinct COVENTRY, CV1 1DD

PRIME CITY CENTRE ESTATE | INVESTMENT FOR SALE

Investment Summary • Vibrant, expanding, university city:

13th largest city in the UK, 2nd largest in the West Midlands. Primary catchment: more than 460,000 people. 27,000 resident students;

• Unbroken estate of 81,500 sq ft comprising 33 shops incorporating city’s entire prime retail pitch; • 93% multiple with brands including TopShop, River Island, JD Sports, H Samuel, Boots, Vodafone, Clinton Cards and Footlocker; • Substantially rebased rents throughout: broadly rack rented overall; • Strong tenant demand: recent flagship store letting to JD Sports and renewals and lettings to River Island, TopShop, EE and Moss Bros. Other tenants negotiating to ‘upsize’ existing representation; • Attractive WAULT (to breaks) of 4.67 years;

• Net income approximately £2.63m per annum (rack rented). Passing rents off £45 psf ITZA to £220 psf ITZA. Long dated reversion (River Island) worth +£100,000pa (gross) in 2054; • Long leasehold with right to renew providing 122 years unexpired.

Side-by-side 8.50% ground rent gearing resulting in approximately 7.00% ground rent payable after benefit of extensive permitted deductions; • Immediate asset management opportunities: redevelopment of upper parts for valuable student accommodation, reconfiguration and amalgamation to create new flagship stores, re-gear long dated reversion (River Island) to release marriage value;

Offers in excess of

£32,250,000 subject to contract

Net Initial Yield: 7.66% Equivalent Yield: 7.48% Reversionary Yield: 7.66% Reversionary Yield including long dated reversions: 7.94%

• Medium term large scale redevelopment opportunities; • Dataroom: www.theprecinctcoventry.com

The

Precinct COVENTRY, CV1 1DD

The historic Warwickshire city of Coventry is centrally located in the UK, approximately 24 miles east of Birmingham and 95 miles north west of London. Royal Leamington Spa and Warwick are approximately 22 miles south; Rugby is 15 miles to the east and Nuneaton is 9 miles to the north.

Strategic Location West Coast Mainline

The city is atMotorways the heartand ofMajor the UK motorway Roads network with the A46 linking to junction 2 of the M6 and the start of the M69 just a mile to the north of the city centre. The M6 links the city to junction 19 of the M1, only 11 miles east. The A45 links the city to junction 7 of the M42, 10 miles to the west.

ocation

Coventry is a principal station on the Virgin Trains London West Coast line with a fastest journey time (since the 2008 West Coast Main Line Upgrade) from London Euston of only 59 minutes. Coventry Station is approximately 10 minutes by foot from the property. In recent years, the growth of rail traveller traffic through Coventry Station has been exceptional. Between 2008 and 2012, passenger numbers

500 million ross Europe rail

market d businesses are our travel time

increased by 80% to 5.4 million: the highest rate of growth in the UK outside London over this period. This growth in passenger numbers is anticipated to continue: by a further 40% by 2024 and by 100% by 2043.

To support this, Coventry City’s Station Masterplan contains plans to expand and refurbish the Grade II listed station. The introduction of a new platform will support the NUCKLE project (the Nuneaton, Coventry, Kenilworth, Leamington rail upgrade) which will enhance the rail provision between Coventry and its neighbouring towns to the north and south.

Coventry is served by both Coventry and Birmingham International airports.

Coventry Airport is situated just off the A45 approximately 3 miles to the south of the city centre. Birmingham International is just 12 miles to the west of the city.

The

Cardiff

Precinct

This map is based upon Ordnance

Survey material with the permission of Ordnance Survey on behalf of The

COVENTRY, CV1 1DD

Controller of Her Majesty’s Stationery Office. Coventry City Council.

LA1000026294.2014

Expanding Population and Economy Coventry’s population increased by 5.0% between the 2001 and 2011 Censuses. Subsequent population projections have identified Coventry as being the fastest growing city in the UK outside Greater London. Its growth is projected to be 1.2% pa over the period 2015-2020: just less than double the national average of 0.7%.

The total population within the Coventry primary catchment today stands at 462,000, ranking the city 49 out of the PROMIS Centres. The city serves a densely populated catchment area extending from Bedworth in the north to Kenilworth in the south.

It’s estimated shopping population as calculated by PROMIS is 288,000 ranking the town 36 in the UK on this measure.

The city has been identified by the government as a New Growth Point; an initiative designed to support communities who wish to pursue large scale and sustainable growth.

The Local Plan (draft) 2016 identified a need for 42,400 homes between 2011 and 2031. The Local Plan makes provisions for the construction of a minimum of 24,600 additional dwellings inside the city’s boundaries between 2011 and 2031. This implies the construction of 1,300 new homes per year from 2017 to 2031. This is more than double the historic rate of construction dating back to 1991.

Coventry’s economy has been transformed in recent years: only 10% of the city’s employment is now in manufacturing having been successfully replaced by services. The service sector now accounts for 76% of Coventry’s employment with financial and business services accounting for 23% of this total. It is now one of the UK’s 22 ‘Super Connected Cities’ and significant funding has been made available to well over 100 of the city’s small and medium sized businesses to connect them to superfast and ultrafast broadband services.

Major growth sectors include aerospace, energy and renewables and the creative and digital technologies. Companies are being attracted to Coventry because of its central location, accessibility, strong skills and knowledge base and the quality of new developments being delivered.

One of the UK’s most successful car manufacturers, Jaguar Land Rover (JLR) moved its global headquarters to Whitley on the outskirts of Coventry in 2011, bringing more than 4,000 jobs in research and development, design, engineering and administrative functions. Some 8,000 engineers and technologists are now based at JLR’s engineering and design centres at Gaydon and Whitley and at their advanced research centre at the University of Warwick.

In 2015 JLR announced expansion plans to its Advanced Engineering and Design Centre which could see its Coventry workforce double. This is in addition to its new £150m National Automotive Innovation Centre (NAIC) which will open at the University of Warwick in Spring 2017. NAIC will be a state of the art technology hub for JLR’s advanced research team and collaborative partners from the supply chain and academia.

Other major Employers within Coventry include: Coventry City Council (15,600), University Hospital (6,500), Universities of Warwick and Coventry (10,600 employees between them), Barclays Bank (2,400), Royal Mail Group (2,000), Admenta UK (AAH Pharmaceuticals & Lloyds Pharmacy) (1,800) and Rolls Royce plc (1,000).

The city is home to two internationally recognised universities, Coventry and Warwick, attracting in excess of 27,000 full time students. They are investing around £1bn over the next five years on an impressive range of new academic, commercial and accommodation buildings.

This investment in facilities has seen each winning a string of awards which has included Sunday Times/Times University of the Year and Modern University of the Year.

Coventry was one of only 4 UK cities to feature in the 2015 Best Student Cities global league table.

Coventry Cathedral, The National Motorbike Museum, Coventry Transport Museum and the nearby NEC mean that the city is also a popular tourist destination with a reported 5.5 million visitors each year contributing £173 million pa to the local economy and employing an estimated 6,000 people.

The

Precinct COVENTRY, CV1 1DD

Regeneration of

Friargate Council Building – Under Construction

‘The Phoenix City’ Coventry is today seeing an unparalleled level of inward investment, rekindling the name it earned in its 1950’s post war re-building heyday of “The Phoenix City”. An impressive range of innovative and exciting projects to enhance the city’s profile as a sub-regional centre are currently in various stages of planning. Combined, these have an end value of around £8bn. The last 3 years have seen several significant projects come to fruition which have greatly improved the shopping environment and public realm of the city centre.

Friargate View to Coventry Station

£15m was spent on constructing a 100m wide bridge deck over the ring road to extend Greyfriars Green and create a grade level pedestrian boulevard providing direct access from the railway station to the city centre. Greyfriars Green will now be the gateway to Friargate: a transformational 3.2 million sq ft mixed use office led development occupying 37 acres en-route to the city centre from the railway station.

Friargate, currently under construction, will provide over 25 efficient and sustainable new buildings including 14 Grade A office buildings, 2 hotels, and between 250 and 400 new residential dwellings.

A further £7m was recently spent by the City Council on pedestrianisation and public realm improvements to Broadgate. This has provided uninterrupted pedestrianised linkage from the prime shopping area to the eastern part of the city centre which includes the Cathedral and a large part of the University. The works have greatly enhanced Broadgate and The Precinct and provided a focal axis for the city centre.

These public realm projects, together with successful hotel and leisure developments at Cathedral Lanes and Belgrade Plaza have contributed significantly to the ongoing transformation of Coventry city centre.

The

Precinct COVENTRY, CV1 1DD

Friargate Masterplan

Shopping in Coventry

Prime pitch is anchored by Marks & Spencer on the western end of The Precinct with Primark to the east on Broadgate. 100% prime is within the subject property and comprises nine units on the south side of The Precinct where headline rental levels have in the past exceeded £200 psf ITZA. The tone here is now £140 psf ITZA. The northern side of The Precinct has traditionally provided a similar retail offer although rental levels are lower at approximately £132 psf ITZA. Bhs have a substantial, prime store on The Precinct with major fashion multiples rumoured to be lining up for it.

Broadgate is a popular retailing and restaurant location with excellent footfall particularly at the junction with The Precinct. Hertford Street, Smithford Way and Market Way all provide a varied secondary retail offer with a mix of multiple and local tenants.

There are three covered shopping centres in the city:

The West Orchards Shopping Centre

Coventry has a relatively compact retail centre providing an estimated 1.33 million sq ft of retail accommodation, ranking the city 51 of the PROMIS Centres on this measure.

opened in 1991 and provides approximately 250,000 sq ft of retail accommodation over three trading levels. West Orchards is anchored by a 100,000 sq ft Debenhams store and Marks and Spencer.

Other retailers within the scheme include WHSmith, Miss Selfridge, The Body Shop, Pep & Co and Bon Marche. West Orchards provides access to The Precinct via Orchard Link at first floor level as well as through Marks & Spencer.

The Lower Precinct

was refurbished in 2000 including the addition of a glazed roof, extension of shop frontages and improvements to floor coverings and fascias.

The 275,000 sq ft scheme is set over two trading levels and is anchored by New Look and TJ Hughes.

Cathedral Lanes Shopping Centre

opened in 1990 on the eastern edge of Broadgate.

It was reconfigured in 1996 to accommodate a large Wilkinson store. It has recently seen a further reconfiguration to provide attractive restaurants facing Broadgate and High Street including Wagamama, Las Iguanas and Cosy Club.

IKEA have one of their rare city centre stores in Coventry comprising approximately 220,000 sqft (and employing 325 people). This is located just beyond the western end of the Lower Precinct. Primark have a 120,000 sqft flag ship store on the north side of Broadgate

and adjacent to the subject property. This serves to anchor the eastern end of the prime pitch.

Like most large cities, there is an extensive retail park offering on the outskirts of Coventry, however, none of them are dominant and as such the competing retail offer is relatively dilute.

The

Precinct COVENTRY, CV1 1DD

1.79 acres

Coventry

in prime pitch

1st Floor Orchard Link to West Orchards Shopping Centre

Description The Precinct was the brainchild of the renowned 20th Century architect, Sir Donald Gibson. Seen as pioneering urban planning when it was completed in 1955, it was the country’s first fully pedestrianised town centre. Coventry had the UK’s first rooftop parking, the first post war civic theatre and the country’s first circular market.

The property occupies a site of approximately 1.789 acres (0.724 hectares) encompassing Coventry’s entire prime retail pitch in the heart of the city centre. It comprises both sides of The Precinct (18 units), 5 units with frontage to Broadgate, 4 units with frontage to Cross Cheaping and 7 units with frontage to Orchard Link which provides access to the West Orchards Shopping Centre. The property also includes the Mercia Lodge student housing accommodation which has been sold off on a long lease and has its main entrance onto Broadgate.

The retail units are provided over a combination of basement, ground and first floor retail sales and storage accommodation (with further ancillary storage at second and third floor levels in a few of the units). There is an external walkway at first floor level with pedestrian access provided by the covered escalators to Orchard Link or the ramp at the eastern end of The Precinct.

If you cannot put up buildings of your own time, you might as well forget it. A town must live. You cannot wait until fashions change” Gibson, Sir Donald Evelyn Edward 1908-1991

TCBs

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Ironmonger Row

11

(below)

ping

9 5 3

Retail Unit

6

1

8

Orchard Link (above)

10a

Mercia Lodge

Cross Chea

13

15

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10

66

4 38

28

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24

12

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40 to 44

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El Sub Sta

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The property provides approximately 81,500 sqft (NIA) of retail and ancillary accommodation together with student accommodation in Mercia Lodge comprising 150 rooms let on a long lease.

Upper Precinct The Precinct

Broadgate

TCBs

Lady Godiva

43 1

5 to 11

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15

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36 to 52

13 26

78

28

45

47

39 to 41

29 to 31

34

32

19

30

80

76 75

The head rent is 8.5% of Net Income on an effectively ‘side by side’ basis. The exception is where base and turnover deals are granted. In these circumstances

10m

20m

30m

El Sub Sta 24

0m

25

There is a long list of permitted deductions which include 3% of gross rents received and capital expenditure incurred on alterations, renewal, rebuilding, modernisation and improvement. The effect of the permitted deductions is to reduce the actual gearing. Over the last 3 years the effective gearing after deductions has averaged 7.28%.

18

Broadgate House (above)

Ordnance Survey © Crown Copyright 2016. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1250

PH

The

Precinct COVENTRY, CV1 1DD

72

The long leasehold provides for assignment of part, thereby allowing for the potential to subdivide the asset into separate ownerships in the future.

the head rent is calculated as 8.5% (less permitted deductions) of the Market Value agreed at the date of the last rent review.

The net income is defined as the gross annual income less permitted deductions.

79

The property is held long leasehold from Coventry City Council for a term of 99 years from 25th March 1988. The tenant has an option to extend the lease for a further 51 years to 25th March 2138 thereby providing total unexpired term certain of 122 years.

3

Tenure

Broadgate House

TCBs

Bank

Tenancies The property is let in accordance with the tenancy schedule in the dataroom on effectively Full Repairing and Insuring terms with the recovery of landlord’s costs through a comprehensive service charge.

Tenants include River Island, TopShop, Boots, Costa Coffee, Clinton Cards, H Samuel, JD Sports and Vodafone.

Landlord’s Shortfalls A tenancy schedule is available separately which provides details of landlord’s irrecoverable shortfalls resulting from vacant units and inclusive lettings.

Shortfalls from Vacant Units: Shortfalls from Inclusive Lettings: Total Shortfall:

£184,268 £18,031 £202,299

The total shortfall is a permitted deduction within the head rent calculation.

While the majority of leases now offer unexpired terms of less than 5 years, the recent letting to JD Sports has increased the Weighted Average Unexpired Lease Term (WAULT) to 4.67 years which is commendable for any prime retail property outside London. 93% of the net rent is secured to national multiple retailers. 72% of the income arises from the prime retail units on The Precinct (78% including TopShop) with the remaining 26% arising from the busy retail locations of Broadgate, Cross Cheaping and Orchard Link.

Income Profile The property offers an attractive income profile: the income erosion over the next 5 years is steady with no particularly large falls in any one year:

Contracted Income Erosion by Quarter

Income by

Occupier Type

7%

Local Occupiers

93%

National Multiples

£3,500,000 £3,000,000 £2,500,000 £2,000,000 £1,500,000 £1,000,000 £500,000 £0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

71.9%

Precinct

16.0%

Broadgate

9.9% 2.1%

Income by

Location

Cross Cheaping Orchard Link

5.6% Income

Gross Income (£pa)

£3,048,200

Less Landlord’s Shortfalls

(£202,299)

Less Head rent at 8.5%

(£216,810)

Net Rent

2,629,091

duration to breaks

WAULT to breaks 4.67 years

67.8% 12.1% 14.0% 0.3%

Holding over 0-5 yr income 5-10 yr income 10-15 yr income 15+ yr income

Market Rent

The property has seen a substantial re-basing of its rents following the credit crunch of 2008 and ensuing recession. The gross rent roll has fallen by some 16% since 2008 and all but 4 of the 30 tenancies have been re-based, renewed or re-let since then. The property has an excellent record of retaining and attracting high quality tenants resulting in a consistently low vacancy rate and a strong tenant line up. There are a number of recent rent reviews and lease renewals that support the following rental tone:

Location

ERV (psf ITZA)

The Precinct (south side)

£140

The Precinct (north side)

£132

Broadgate £90 Cross Cheaping

£50

Orchard Link

(Spot Market Rents)

We calculate the Gross Market Rent to be £3,020,000 pa (including the long dated reversion on 5/7 The Precinct, let to River Island).

Leasing Activity & Market Rent The vendor has recently let a 12,350 sqft flagship unit at 38-44 on the north side of The Precinct to JD Sports for £425,000 pa for a 10 year term certain in exchange for 12 months’ rent free with handover due in September 2016. This reflects a headline rent of £134 psf ITZA. Moss Bros took the adjoining unit at 28 The Precinct in November 2015. This unit is obscured by the Orchard Link escalators. They have a personal concession for a base rent of £75,000 pa and a 10% turnover top up. The tenant received 12 months’ rent free.

There is a tenant break at year 5 in exchange for a £18,750 penalty. The breakdown of this transaction is difficult given the adjustment for the escalator but we analyse this to reflect £119 psf ITZA headline on the base rent.

More recently, Unit 12 was under offer to Davison shoes who had agreed terms at £100,000 pa for a five year

term certain with 12 months’ rent free. We analyse this to reflect £132 psf ITZA headline. While this letting did not complete, terms were agreed and in the absence of other more recent evidence, this helps support the view of Market Rent. Indeed, terms are already being discussed with other tenants for this unit.

EE at Unit 24 have recently agreed to renew their lease for a 5 year term certain (no rent free) at a rent of £99,500 pa. Applying a discount of -10% for the masking caused by the escalators, the new rent reflects £149 psf ITZA.

We are of the view that the north side of The Precinct has a Market Rent reflecting £132 psf ITZA. This will shortly be tested with the 23rd June 2016 renewal of the H Samuel at Unit 8 The Precinct.

On the south side of The Precinct, Vodafone took a new lease at Unit 21-23 in August 2013 for £115,000 pa and 3 months’ rent free. This reflected £146 psf ITZA. More recently, River Island renewed their two leases of Units 5-7 & 9-11. Both units were agreed at rents reflecting £140 psf ITZA with 3 months’ rent free.

The south side of The Precinct has always traded at a premium to the north side on grounds of its clear sight lines and slightly higher footfall. We are of the opinion that the south side of The Precinct has a Market Rent reflecting £140 psf ITZA. This will also be tested quite shortly with the re-letting of Bestseller t/a Jack & Jones at Unit 29-33 (break activated effective 8th August 2016).

Again, terms are already being discussed with prospective tenants.

TopShop have very recently renewed for 5 years at their unit at the corner of Broadgate. They agreed a 5 year term certain at £190,000 pa with 12 months’ rent free reflecting £117 psf ITZA headline. This is in line with the evidence from the adjoining unit let to O2 at 2 The Precinct which renewed in November 2014 at £118 psf ITZA. This pitch differs from The Precinct given the slope and the obstruction caused by Ernest Jones, the ramp and colonnade.

We have applied a Market Rent reflecting £90 psf ITZA to the 3 units on Broadgate.

Evidence ranges from the more recent renewals in 2012 of Holland & Barrett and JD Sports at £108 psf ITZA headline, to Game who are holding over at £84 psf ITZA.

The evidence in Cross Cheaping ranges from £45-60 psf ITZA. This enclosed mall slopes and suffers from shallow units. We have applied a Market Rent reflecting £50 psf ITZA. There is no established rental tone at present for Orchard Link. We have applied spot Market Rents on the basis of the recent evidence there.

There is currently only one vacant unit on the ground floor level at Unit 4 which is under the colonnade and obscured by Ernest Jones. The letting prospects of this unit may be improved with the amalgamation of the entrance adjacent and space to rear which currently forms part of Mercia Lodge.

Unit 12 is currently a temporary let and will be topped up by the vendor to £100,000 pa rent plus service charges and rates (it was under offer to Davison shoes until very recently at this level). Bestseller (t/a Jack & Jones) in Unit 29-33 is shortly to become vacant. The quoting rent is £175,000 pa.

There is strong interest in this unit from JD Sports for Tessuti, their branded fashion sister brand. This unit will be topped up by the vendor to £145,000 pa rent plus service charges and rates.

There are 3 vacant units in Orchard Link.

This area should substantially improve with the absorption of 2 other void units by the creation of the new JD Sports flagship unit.

Potential sale of air rights for the extension of Mercia lodge Planned conversion of vacant upper levels for 90 student flats (STP)

Work with the council who wish to resite escalators and ramps to improve sight lines

Immediate as well as medium term asset management and redevelopment opportunities

Potential amalgamation with unused bar area to rear to create two new restaurants / shops

Marriage value on purchasing intermediate lease from council Potential conversion of under-used upper parts to 90 student flats

Asset Management Opportunities

• The creation of 90 student flats above the north side of The Precinct in unused ancillary accommodation. Subject to planning but early discussions with planners (and structural advice) very favourable. One additional floor required, to be set back from existing building line. See plans and appraisal in dataroom; • The creation of 90 student flats above the south side of The Precinct. Similar in size and scale to north side development. Space currently demised to retailers but mostly under-used.

Interest from an operator in potential scheme.

See plans in dataroom; • Acquisition of Coventry City Council’s intermediate lease (expiring 2054 at current rent of £3,500 pa) of Units 5-7 (part of River Island).

Occupational tenant paying £109,000 pa. City Council have requested offer. Marriage value potential; • Amalgamation of 58 to 64 Broadgate. Holland & Barrett (t/a Met-Rx) have had their lease on the market. Game looking to upsize. JD Sports interested in acquiring a larger unit for Tessuti brand in addition to new flagship at Units 38-44.

(Currently discussing Jack & Jones Units 29-33).

• Amalgamation of 58 to 64 (with unused space to rear in part of Mercia Lodge’s demise) could provide large, desirable unit adjacent to TopShop. Good demand for large shops (e.g. Nationwide due to loss of existing site to redevelopment).

• Sale of air rights to Mercia Lodge (who have approached the vendors) to permit extension of accommodation above existing long leasehold demise; • Work with City Council and West Orchards owners to re-work vertical circulation and improve signage and sight lines through The Precinct. Reduce rental blight to its north side caused by current positioning of the escalators.

City Council wish to see removal / repositioning of the escalators and the Ernest Jones ramp (within their ownership); • Redevelop the underused upper areas of the property to create a leisure / restaurant quarter overlooking The Precinct. Indicative plans are available in the dataroom; • Regularise the tenancies / licences of two illegal kiosk occupiers at top of Orchard Link escalators.

Large Scale Redevelopment Potential The property occupies a strategic position within Coventry City centre providing a key link between the west side of the city including (University, Broadgate, Primark and the rest of the city centre). The purchaser will own 100% of the city’s prime retail pitch and have a significant ownership that could form part of a larger redevelopment of the wider city centre. Given its post-war rebuilding, most of Coventry city centre is held in a small number of significant ownerships. These could potentially be acquired to form a major shopping centre / mixed use development site.

For many years, Coventry City Council have been keen to enhance the city’s retail offer and have identified the area of secondary shopping immediately south of the subject property as being suitable for redevelopment. This area, encompassing Market Way, Shelton Square, Bull Yard, Hertford Street and City Arcade is referred to as the ‘City Centre South’ site. The Council have now shortlisted 2 development management partners to work alongside them on the City Centre South proposals and expect to be able to make a formal announcement in late 2016.

The very ambitious plans for Coventry City Centre South promoted pre-recession by the Council and their masterplanner, The Jerde Partnership, have now been shelved and it is likely that whatever is built will be greatly scaled down and will complement rather than seek to compete with the city centre’s existing retail offer.

In May 2012 outline planning permission (Ref OUT/2012/0575) was granted for a redevelopment of the City Centre South site. This permission, which expired in

AEW UK

ROYAL LONDON AM

PENSION INSURANCE CORP

2015, envisaged an additional 175,000 sq ft of retail floorspace being constructed on land immediately to the south of the subject property (the property being outside the development area). The proposals envisaged a “…new vibrant retail-led scheme which incorporates a key anchor store, retail units (use class A1 – A5), public realm improvements, additional public car parking and an ability to provide new leisure uses (cinema and hotel) and residential units”.

REDEFINE

The

Precinct

COVENTRY, CV1 1DD

The latest draft City Centre Area Action Plan (January 2016) envisages 100,000 sq ft minimum of new floor space being delivered “…within or immediately adjacent to the Primary Shopping Area”.

The subject property occupies a key, strategic location within the city centre and is ideally placed to benefit from any improvements made to the secondary retail environment to the rear of it. Opportunities should also arise in the short to medium term to choose to engage in the City Centre South development with the City Council and their development manager. The potential may also arise to acquire the interests of or enter into joint ventures with the other adjacent landowners, in order to bring about wholescale regeneration of the city centre.

Further information about the City Centre South initiatives can be found at www.coventry.gov.uk.

Key CITY CENTRE SOUTH SITE

COVENTRY CITY COUNCIL

FIRST PROPERTY GROUP

TheLASALLE

Precinct IM

COVENTRY, CV1 1DD

AVIVA

(MPPF)

Service Charge & Management

Dataroom

For a tenancy schedule and further information please login at: www.theprecinctcoventry.com

Landlord’s costs are recovered through a service charge provision. Costs are apportioned on a fair and reasonable basis as determined by the landlord. The service charge budget for the year ending March 2017 is £290,305 equating to a low average service charge cost of only £3.56 per sq ft.

Service charge accounts for previous service charge years and the budget for 2017 are within the dataroom.

Actual Service Charges Expenditure for the last three years:

• •

Y/E March 2016 Budget: £330,701 Y/E March 2015 Actual: £319,262 Y/E March 2014 Actual: £377,463 Y/E March 2013 Actual: £293,031

•

The on site management team comprises 5 members of staff: •

A building manager employed by Cushman & Wakefield 2 Security staff employed by VSG 2 Cleaning staff employed by Premier Support TUPE regulations will apply.

Assignable Surveys The following recent, assignable surveys will be made available to the purchaser: Building survey inc. concrete testing Mechanical & Electrical Environmental

Planning

VAT

We understand that the property is neither listed nor sits within a conservation area.

It is envisaged that the sale will take place as a Transfer of a Going Concern (TOGC).

Capital Allowances

EPCs

The vendor will retain the benefit of any capital allowances.

The property’s EPC ratings range from 58 to 100, Cs and Ds. A full list is available in the dataroom.

Measured Survey

The

Precinct COVENTRY, CV1 1DD

Pricing Viewings Inspections are to be arranged strictly by arrangement with the vendor’s sole selling agents. For this and further information please call the sole agents, CWM.

Contact

Offers are invited in excess of

ÂŁ32,250,000

(Subject to contract) for our client’s long leasehold interest.

A purchase at this level would reflect the following yield profile: Net Initial Yield: 7.66% Equivalent Yield: 7.48% Reversionary Yield: 7.66% Reversionary Yield in 2054: 7.94%

John Miles T: 020 7494 6922 / M: 07789 243 998 jhm@cwm.co.uk

Julian Norbury T: 020 7494 6924 / M: 07758 578 664 jpn@cwm.co.uk

Misrepresentations Act: CWM & Partners LLP for themselves and for the vendors/lessors of the property whose agents they are, give notice that: 1. These particulars are set out as a general outline for the guidance of the intended purchasers or lessees, and do not constitute part of, an offer or contract; 2. All descriptions, dimensions, reference to, tenure, tenancies, condition and necessary permissions for the use and occupation, and other details are given without responsibility and any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; 3. No person in the employment of CWM & Partners LLP has any authority to make or give any representations or warranty in relation to this property.

July 2016