BROAD WALK - Allsop

BROAD WALK HARLOW CM20 1JF

LONG INCOME RETAIL INVESTMENT WITH REDEVELOPMENT POTENTIAL 78% OF INCOME SECURED FROM BOOTS UK LIMITED


INVESTMENT CONSIDERATIONS▲ Harlow is a New Town (Built: 1951) in the West of Essex

▲ Exceptional transport access close to the M11, M25 and Stansted Airport London

▲ Two large self-contained high street retail units totalling 5,040.6 sq m (54,257 sq ft)

▲ Located adjacent to the Town Centre’s largest multi-storey Car Park, providing strong customer footfall

▲ Distinctive and highly prominent pyramid style roofed area providing a covered mall entrance to both units

▲ 78% of the income is secured from Boots UK Limited for 3.5 years with short term asset management potential

▲ 22% of the income is secured from NewRiver REIT (sub-let to New Look) for 66 years at a very low rent of £2.59 psf

▲ Total passing rent of £318,250 per annum, equating to a very low average rent of £5.87 psf

▲ Average Weighted Unexpired Lease Term (AWULT) of 16.9 years

▲ Medium term potential to re-develop part or the whole of the building to alternative use, subject to vacant possession and necessary consents

▲ Virtual Freehold. 993 years remaining at a peppercorn rent

PROPOSALOffers are sought in excess of £4,000,000 (Four Million Pounds), subject to contract and exclusive of VAT. A purchase price at this level reflects a Net Initial Yield of 7.50%, subject to standard purchaser’s costs and a low capital rate of £73 psf.

DATA ROOMFor access to the Allsop Marketing Data Room, please refer to the following link: https://datarooms.allsop.co.uk/register/broadwalkharlow

LONG INCOME RETAIL INVESTMENT WITH REDEVELOPMENT POTENTIAL

LONDONHeathrow

LondonCity

Gatwick

StanstedLuton

J27J25J23

J21

J20

J19

J16

J15

J2

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A5

A505

A418

A602A131

A130

A138

A130

A127

A217

A331

A322

A339

A232

A264

A229

A120

A404

A355

A404

A413

A4142

A4010

A414

A414

A414

A1

A2

A3

A41

A34

A40

A31

A24

A22

A21

A20

A10

A10

A12

A12

A13

A26

A21

A23

A23

A420

A303

A34

A34

A44

A40

M1

M4

M4

M2

M3

M3

M10

M40

A404(M)

A329(M)

M25

M25

M25

M25

M25

M25

M23

M26

M20

M20

M11

M11

A1(M)

M1

HARLOW

Epping

Hertford

LUTON

Aylesbury

DunstableStevenage

Hatfield

Dartford

Bromley

Gravesend

GillinghamRochester

Sittingbourne

Croydon

Biggin Hill

Romford

WoodfordGreen

Tonbridge

RoyalTunbridge

Wells

Maidstone

Snodland

Sheerness

StaplehurstPaddock

Wood

CrawleyThree Bridges

Horley

Horsham

Witley

Godalming

Cranleigh

HaywardsHeath

Redhill

Oxted

DorkingGUILDFORD Reigate

HemelHempstead

Chesham

St Albans

HighWycombe

Thame

WatfordBorehamwood

WembleyUxbridge

Ruislip

Woking

Harefield

Hampstead

Enfield

Windsor

Aldershot

Alton

BASINGSTOKE

Famham

Fleet

Bracknall

Ascot

Sandhurst

READING

OXFORD

Maidenhead

EpsomSutton

Ashford

Hounslow

Southall

Billericay

Wickford

Southend-on-SeaCanveyIsland

Chelmsford

ChippingOngar

Basildon

Walton-on-Thames

KingstonUpon Thames

Clapham

Harpenden

Eton

Marlow

Egham

HurleySLOUGH

Beaconsfield

TERMINUS RO

AD

A1025

SECOND AVENUE A1025

A102

5

THIRD A

VENUE A10

25

A10

19

VE

LIZY

AV

EN

UE

A10

19

TR

IPTO

NR

OA

D

MA

NST

ON

RO

AD

HA

RB

ER

TS

RO

AD

HA

YD

EN

S R

OA

D

H

ADDOX ROAD

FOURTH AVENUE

FIRST AVENUE MANDELA

HAY

DEN

S RO

AD

FOURTH AVENUE

FOURTH AVENUE

RectoryWood

Stony Wood

NetteswellPlantation

930Spaces

770Spaces

1,200Spaces

3.3 miles

Harlow Town1 miles

M11

LOCATIONHarlow is an affluent London commuter town, located approximately 23 miles north east of Central London and 20 miles west of Chelmsford. The town benefits from excellent road links, with the M11, A10 and M25 located nearby. These routes provide Harlow with direct access to London and Cambridge.

Harlow has 2 railway stations, Harlow Town and Harlow Mill. Both stations provide regular services to London Liverpool Street (35 minutes), Cambridge (35 minutes) and Stansted Airport (20 minutes). London Stansted Airport is located 16 miles north east of the town, with flights to a large number of national and international destinations.

M.A.G acquired Stansted Airport in 2013 with ambitious growth plans for the airport, which currently serves over 20 million passengers annually, employs 10,000 people and generates around £770 million in gross value add. The growth plans for the airport would expand it to serve 35 million passengers per annum by 2025 worth £1.6 billion to the UK economy. This is projected to increase further by 2030 to 45 million passengers per annum, worth £4.6 billion to the economy and generating an additional 10,000 jobs in the area.

AIR

Stansted Airport London 13.3 mins

Luton Airport London 30.6 mins

London City Airport 23.6 mins

London Heathrow 44.1 mins

RAIL

Tottenham Hale 16 mins

Stansted Airport London 17 mins

London Liverpool Street 30 mins

Cambridge 40 mins

ROAD LINKS

A1019 0.2 miles

M11 2.9 miles

M25 7.5 miles

A1(M) 17.3 miles



TRANSPORT & CONNECTIVITY• Harlow is well connected with easy road access to the M11

and M25 motorways.

• Served by two mainline stations providing a direct commute to London Liverpool Street in 30 minutes, Stansted Airport in 17 minutes and 40 minutes to Cambridge. Central London is within 45 minutes through the London Underground connection at Tottenham Hale.

• There are also frequent buses from Harlow to nearby towns and into London.

HARLOW AT A GLANCE

CAMBRIDGE

EUROPE

STANSTED AIRPORT HARLOW

40 min

PARIS 2 hours 46 minAMSTERDAM 4 hours 30 minBRUSSELS 2 hours 30 min

17 min

TOTTENHAM HALE

LONDON LIVERPOOL

STREET

16 min

KING’S CROSS ST PANCRAS

30 min

STRATFORD

35 min

LONDON CITY AIRPORT

49 min

CANARY WHARF

45 min

OXFORD CIRCUS

38 min

30 min

London Boundary

Times indicate length of journey from Harlow to each destination

Excellent transport connectivity to London in 30 minutes, Stansted International Airport in 17 minutes

and Cambridge in 40 minutes.

Located within the UK’s (London-Stansted-Cambridge)

innovation corridor, an economically significant business,

science and technological growth region.

Strong residential capital growth - 132% increase in the average price

paid for a new build home in the 10-years to 2017.

Government-led regeneration and the Harlow Enterprise Zone

will create an increased employment cluster with associated

population growth, propelling demand for retailing.

Average annual residential rental growth of 3.6% or 18%

between 2019 and 2023.

Strong demand for housing fuelled by projected population growth of 22% by 2039 and shortage of

housing supply.

Over 44% of those who moved to Harlow in 2017,

were Londoners.

1.5 times cheaper average house prices compared to neighbouring Epping Forrest and Broxbourne, which are within 3 miles and on

the same travel journey to London.



CLOTHING

HOMEWARE

SITUATIONThe property is situated on a prime prominent pitch on the southern element of the Broad Walk in Harlow Town Centre. The building sits immediately opposite the main entrance for the Harvey Shopping Centre, with nearby occupiers including Starbucks, Halifax, Iceland, EE and WH Smith, amongst many other national brands.

The building also borders the main northern entrance to The Water Gardens Shopping Precinct, a highly popular open air mall hosting a wide range of high street fashion, homeware, food outlets and an ASDA supermarket.

Harlow Town Centre is primarily served by two large multi-storey car parks. The Harvey Shopping Centre benefits from a 770 space car park to the west of the Town Centre whilst the subject property sits within close proximity of the larger 930 space NCP Car Park. From the car park, pedestrians pass immediately past both the New Look and Boots frontages before accessing the remainder of the retailing pitch, providing a strong source of footfall.

VIRTUAL FREEHOLD DEMISE

FREEHOLD (EXCLUDED FROM SALE)



DESCRIPTIONThe property comprises two self-contained retail units arranged over ground, first and part second floors of red brick construction.

The unit frontages face on to the Broad Walk, arranged at a 90 degree angle and highly visible from a variety of incoming viewpoints. The external frontages provide several large glazed areas, which have been fitted in the Boots and New Look corporate style.

Externally, the demise of the property extends to the covered area in front of both buildings, which comprises a distinctive steel frame constructed pyramid structure with glazing, extending out of to the Broad Walk. The structure provides numerous external lights providing a well-lit covered mall-style area. To the rear, the property benefits from a walled and gated rear goods yard, with dual access form both Terminus Road and Crown Gate.

The Freehold demise includes a six storey converted residential building named Redstone House, accessed via Cross Street to the south of the subject property. The building overhangs part of the subject property and is not included in the marketed Virtual Freehold demise.

The site area of the Virtual Freehold demise is 1.15 acres (0.47 hectares).

REAR GOODS YARD



TENUREVirtual Freehold. The property is secured on a long lease commencing in August 2014, thus having some 993 years unexpired at a peppercorn rent.

The Freeholder is Smith Homes 1 Limited.

TENANCY

DEMISE TENANT AREA (SQ M)

AREA (SQ FT)

LEASE START

LEASE EXPIRY

RENT REVIEW

WAULT (EXPIRY)

PASSING RENT (£ PA)

PASSING RENT (£ PSF)

LTA 1954

37 The Broad Walk Boots UK Limited 2,590.3 27,882 17/01/2014 20/01/2024 21/01/2019 3.52 £250,000 £8.97 Y

39 The Broad Walk NewRiver REIT (sub-let to New Look) 2,450.3 26,375 24/06/1987 23/06/2086* 24/06/2022 65.99 £68,250 £2.59 Y

TOTAL 5,040.6 54,257 16.92 £318,250 £2.59

*The tenant benefits from an option to renew for a further 26 year term, post-lease expiry.



NewRiver REIT plcNewRiver REIT plc (‘NewRiver’) is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK.

Their £1.2 billion portfolio covers 9 million sq ft and comprises 33 community shopping centres, 25 retail parks and over 700 community pubs. NewRiver hand-pick assets deliberately focusing on occupiers providing essential goods and services, and avoid structurally challenged sub-sectors such as department stores, mid-market fashion and casual dining.

This focus, combined with affordable rents and desirable locations, delivers sustainable and growing returns for shareholders, while their active approach to asset management and inbuilt 2.5 million sq ft development pipeline provide further opportunities to extract value.

NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.

• Underlying Funds From Operations (‘UFFO’) of £52.1 million (FY19: £55.1 million); includes the impact of £2.8 million of lost income and provisions relating to COVID-19

• IFRS loss after tax of -£121.1 million (FY19: -£36.9 million) mainly due to non-cash reduction in portfolio valuation

• Proportionally consolidated LTV of 47% at 31 March 2020 (31 March 2019: 37%)

• Wholly unsecured balance sheet provides significant flexibility and capacity

• Cash reserves of £82 million at 31 March 2020

• Undrawn revolving credit facilities of £45 million at 31 March 2020

• Eligibility confirmed for CCFF; £50 million facility currently undrawn, but improves available liquidity to £177 million

• No bank refinancing events due until August 2023; £300 million corporate bond is not due for repayment until 2028

• Compliant with all debt covenants

Boots UK Limited (Experian: Very Low Risk)Boots is the UK’s leading pharmacist with over 2,500 stores across the UK and Ireland. The company sells a range of medicines, health and beauty products and have their own ranges in each of these sectors. Optometry and audiology services are offered as well as a range of food and drink.

In December 2014, Walgreens and Alliance Boots merged, bringing together the two leading brands in the sector.

The company is moving swiftly to address the impact of COVID-19 on the Boots business by accelerating the Boots Transformation Plan. Key elements of the proposed plan include a reorganisation of the Boots store employee structure, the closure of 48 Boots Opticians stores and an additional 20 percent headcount reduction in the UK support office. These reorganisation actions will likely impact more than 4,000 positions (7% of the workforce).

In a challenging recent trading environment, lockdown measures have impacted high streets and shopping centres and compelled consumers to consolidate shopping into grocers. Despite this, comparable pharmacy sales in Boots UK remain largely stable recording a decrease of only 1% on a constant currency basis, reflecting lower prescription volume and reduced demand for services during the pandemic, mitigated in part by National Health Service (NHS) reimbursement.

The Boots Transformation Plan also includes increased investment and focus on the Boots omnichannel strategy and is designed to drive future growth in the company’s UK market. Boots UK also significantly boosted its Boots.com capabilities, investing in micro-fulfilment centres and hybrid stores and more than doubling capacity, which helped drive a 78 percent increase in Boots.com sales in Q3 2020, compared with the same quarter a year ago, with continued strong performance in June.

Boots UK Limited has recently recorded the following financial information:

31/08/2017 31/08/2018 31/08/2019

Turnover £6,837,000,000 £6,790,000,000 £6,667,000,000

Pre-Tax Profit £498,000,000 £398,000,000 £217,000,000

Total Net Worth £752,000,000 £875,000,000 £1,107,000,000


COVENANT

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertaking’s and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. The market statistics, rental and investments comparables have been supplied by third parties and their accuracy cannot be guaranteed. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 07.20

Tom Dales020 7543 686607799 [email protected]

Andrew Wise020 7543 673107535 [email protected]

allsop.co.uk

For further information or to make arrangements for viewing please contact:

PROPOSALOffers are sought in excess of £4,000,000 (Four Million Pounds), subject to contract and exclusive of VAT. A purchase price at this level reflects a Net Initial Yield of 7.50%, subject to standard purchaser’s costs and a low capital rate of £73 psf.

VATThe property is elected for VAT and it is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).

EPCThe property has an EPC rating of C(70).

ANTI-MONEY-LAUNDERINGA successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATA ROOMFor access to the Allsop data room please use the following link: https://datarooms.allsop.co.uk/register/broadwalkharlow

BROAD WALK - Allsop

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