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91-93 HIGH STREET & 5 COPENHAGEN STREET

Mixed-use Investment in Historic Cathedral City with Development Opportunities

MARMION HOUSE

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INVESTMENT CONSIDERATIONS

• Worcester is an historic Cathedral City• Located in 100% prime pitch on the pedestrianised section of High Street, opposite Cathedral

Square, adjacent to the Guildhall and the former Fire Station (planning for 31 apartments). • Mixed-use income with a number of tenants not exercising breaks.• Triple aspect building providing 16,500 sq ft• Future development potential • Freehold

PROPOSAL

Net Income: £268,268 per annum

Offers in the region of: £3,075,000 (Subject to Contract)

Net Initial Yield: 8.2%

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LOCATION & COMMUNICATION The cathedral city of Worcester is a well-established retail centre and is the administrative hub for the County of Worcestershire. Worcester lies approximately 129 miles north west of London, 29 miles south west Birmingham and 28 miles north of Cheltenham.

The city benefits from excellent road communications, being situated approximately 3 miles to the west of Junctions 6 and 7 of the M5 motorway which in turn links to the M4, M6 and the wider UK road network.

Worcester is serviced by a mainline railway station, Worcester Foregate Street, with a fastest journey time of just over 2 hours and 20 minutes to London Paddington as well as regular services to local destinations with the quickest journey time to Birmingham New Street being 45 minutes.

Birmingham International Airport is located approximately 37 miles to the north east of the city offering scheduled and chartered flights world-wide.

EAST MIDLANDS

3

4

16

4

321

5

6

7

12

131415

15

16

2

1

20

19

18

17

9

856

78

21

2

1

11

1

2

5

6

3

25

24

23

22

26

28

27

10

11

12

13

14

15

2

M1

M1

M1

M6

M6

M6(T)

M5

M5

M42

M40

M42

M69

A429

A448A449

A17

A46

A52

A607

A52

A15

A1

A1

A15

A607 A606

A508 A43

A1

A47

A16

A47

A6

A605

A43

A6116

A606

A43

A5

A428

A45

A6

A428

A6003

A14

A509

Newark-on-Trent

Uttoxeter

Stafford

Stoke-on-Trent

Leicester

Loughborough

Kettering

StratfordUpon Avon

Redditch Northampton

Rugby

Nottingham

Coventry

Melton Mowbray

MarketHarborough

Grantham

Lichfield

SuttonColdfield

Nuneaton

Birmingham

Burton UponTrent

Derby

Corby

Leamington Spa

Solihull

CheltenhamGloucester

8

9

Kidderminster

Bedford

Milton Keyes

A456

A44

A46

A436

M5Hereford Evesham

Peterborough

WORCESTER

Telford

Bridgnorth

A458

A442

A44

A4103

A422

M40

M54

M1

Wolverhampton

Birmingham

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DEMOGRAPHICSWorcester has a primary catchment population of 298,000 persons and a retail catchment of 191,000 persons (Source: Promis). This is further boosted by the tourist economy which Visit Britain estimates approximately 500,000 visitors each year, spending in excess of £160 million per annum with Heritage attractions including Worcester Cathedral, The Commandery, Museum of Royal Worcester, the Guildhall, Worcester City Museum and Art gallery. This is further supported by the city’s sporting venues including Worcestershire County Cricket Ground, and Worcester Warriors Rugby Club. Worcester University also attracts in excess of 10,000 students.

The Worcester area contains a high proportion of adults of working age categorised within the most affluent AB social group (which includes those in managerial and professional occupations). In contrast, the least affluent D and E social groups (which includes those in skilled and unskilled manual employment, the unemployed and those on state benefits) are particularly under-represented within the Worcester area and social group C1 (which includes junior non manual employees) is moderately under-represented (Source: Promis).

RETAILING IN WORCESTERWorcester is an attractive retailing destination with a loyal and affluent catchment population, benefiting from its distance from other competing major retail centres and large wealthy rural surrounding area.

The City Centre provides approximately 1,070,000 sq ft of retail floor space (Source: PROMIS) with the vast majority focused on High Street where national retailers include:

The principal shopping centre in the City is CrownGate which provides approximately 300,000 sq ft of retail space anchored by House of Fraser, Primark and a 750 space multi-storey carpark.

Cathedral Plaza which fronts the southern end of High Street and Pump Street was successfully refurbished and reconfigured in 2017. The scheme is mixed use comprising an 86-bedroom Travelodge, 7 screen Vue Cinema, a gym, flagship retail including Wilko and H&M and restaurants with Cosy Club, Miller & Carter and Pizza Express all present with a 360 space multi-storey carpark.

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DESCRIPTIONMarmion House comprises a relatively modern concrete framed, 5 storey, end of terrace building of brick elevations under a flat roof. The ground floor frontages comprise two prime retail units (Joules being double fascia) facing High Street (one with return frontage to Copenhagen Street) plus one smaller unit fronting Copenhagen Street. The High Street units trade at ground floor with first floor ancillary and sales. The unit on Copenhagen Street is ground floor only.

The entrance to the cocktail bar and upper floors is located on Copenhagen Street.

Given the triple aspect nature of the property, the upper floors which have been sub-divided into a number of self-contained offices provide excellent natural light. There is a lift which provides access to the three upper floors.

The property is not Listed but is located in a Conservation Area.

SITUATIONThe property is prominently situated on the southern section of High Street at the junction of Copenhagen Street opposite Cathedral Quarter and adjacent to Guildhall and therefore benefits from a strong footfall.

Nearby retailers include:

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ACCOMMODATIONThe net internal areas are as follows:

Unit TenantGround Floor

(sq ft)ITZA

(units)Basement

(sq ft)First Floor

(sq ft)Second Floor

(sq ft)Third Floor

(sq ft)Total

(sq ft)

91-92 High Street (plus 1st Floor Suite 1) Joules 2,192 1,383 - 835 - - 3,027

93 High Street (plus 1st Floor Suite 3) Moss Bros 577 445 - 1,445 - - 2,022

1 Copenhagen Street Sub Studio Photography 351 351 - - - - 351

1 Copenhagen Street Keystones Cocktail Bar - - 2,564 - - - 2,564

1st Floor Suite 2 Priority Security - - - 1,160 - - 1,160

1st Floor Suite 4 Vacant - - - 538 - - 538

2nd Floor Suite 1 Fancy Dress Worldwide - - - - 1,184 - 1,184

2nd Floor Suite 2 Big Helping - - - - 1,148 - 1,148

2nd Floor Suite 3 & 4 Thomas Guise LLP - - - - 1,120 - 1,120

3rd Floor Suite 1 Kevin Probert Wealth Management - - - - - 1,220 1,220

3rd Floor Suite 2 GMP Recruitment - - - - - 1,144 1,144

3rd Floor Suite 3 Worcester Family Mediation Practice - - - - - 585 585

3rd Floor Suite 4 Worcester Web Studio - - - - - 529 529

Total 3,120 2,564 3,978 3,452 3,478 16,592

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TENUREThe property is held Freehold.

TENANCIES The property is multi-let on effective full repairing and insuring leases, by way of a service charge, providing a net income of £268,268 per annum. Further information with regards to the service charge upon request.

RENTAL COMMENTARY/ ASSET MANAGEMENTThe retail passing rents range from £87.50 ZA (Joules) and £94.50 ZA (Moss Bros).

The office rents are affordable equating to £6-£7 psf and this is reflected in the number of tenants having renewed their leases and not exercised their break options.

Given the triple aspect nature of the building we are of the opinion that there is the ability to construct further floors. We also believe the property would suit a number of alternative uses including residential, hotel, student accommodation and leisure uses, subject to gaining the necessary consents.

For more information on our products and services:www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601

6011

50 metres

Worcester

Experian Goad Plan Created: 13/01/2020Created By: Kitchen LaFrenais Morgan

Copyright and confidentiality Experian, 2019. © Crowncopyright and database rights 2019. OS 100019885

JOULES

MOSS BROS.

For indicative purpose only.

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TENANCY SCHEDULE

Tenant Unit Area (sq ft)

Term (years)

Lease Start Lease Expiry Rent Review(Break) £ pa £ psf/£ ZA

Rent Deposit (Y/N)

Comment

Joules LimitedGround floor shop - 91 & 92 High Street + 1st Floor Suite 1

3,027 10 22/07/2016 21/07/2026 22/07/2021 £125,000 £87.50 ZA Joules expanded into the adjacent unit and re-geared on a new 10 year lease.

Moss Bros PLCGround floor shop - 93 High Street + 1st Floor Suite 3

2,022 10 01/08/2016 31/07/2026 01/08/2021(31/07/2021) £50,000 £94.50 ZA

Subtone Ltd 1 Copenhagen Street 351 3 23/09/2018 22/09/2021 £10,000 28.49 £6,061 Tenant did not exercise break effective 23/03/2020.

JJPB Limited Basement Premises 2,564 20 24/08/2001 23/08/2021 £18,500 7.22 £4,648 Landlord rolling breaks upon giving 6

months notice.

Priority Security Academy Ltd

1st Floor, Suite 2 1,160 3 06/01/2020 05/01/2023 (06/01/2021) £9,280 8.00 £2,784

Vacant 1st Floor,Suite 4 538 £- 0.00

DAPV Limited t/a Fancy Dress Worldwide

2nd Floor, Suite 1 1,184 5 16/10/2018 15/10/2023 (15/10/2020) £8,800 7.43 £2,640

Big Helping Ltd 2nd Floor, Suite 2 1,148 9 01/12/2016 30/11/2025 01/12/2019

01/12/2022 £8,000 6.97

Thomas Guise Limited 2nd Floor, Suites 3&4 1,120 6 18/11/2014 17/11/2020 £7,280 6.50

Service Charge Cap of £4.50 excludng utilities. Tenant did not exercise break dated 18/11/2017.

Kevin Probert EM/Droitwich Limited

3rd Floor, Suite 1 1,220 5 13/07/2016 12/07/2021 £8,540 7.00 £2,562

GMP Recruitment Limited 3rd Floor, Suite 2 1,144 5 15/08/2019 14/08/2024 (15/08/2022) £9,152 8.00

Paul Allan Kemp t/a Worcester Family Mediation Practice

3rd Floor, Suite 3 585 9 11/08/2015 10/08/2024 11/08/2018

11/08/2021 £4,000 6.84 £1,440 Tenant not exercised break dated 11/08/2018. Outstanding rent review

Worcester Web Studio Ltd 3rd Floor, Suite 4 529 5 26/08/2019 25/08/2024 £4,232 8.00

Western Power Distribution (Midlands Electricity) plc Substation 0 25 07/10/1998 06/10/2023 07/10/2018 £250 Outstanding rent review

Vodafone Limited Rooftop Mast 0 15 07/05/2008 06/05/2023 07/05/2020 £9,559

Total 16,592 £272,593

Passing Rent

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COVENANTMoss Bros was established in 1851 and is the leading formal menswear specialist in men’s formal wear selling Men’s suits, shirts, coats and accessories. Moss Bros has over 150 retail stores nationwide.

The last 3 years accounts are set out below:

Date of Accounts 28th January 2017 27th January 2018 26th January 2019

Turnover £127,930,000 £131,774,000 £128,987,000Pre-tax Profit £7,146,000 £6,713,000 (£415,000)Total Net Worth £36,056,000 £32,244,000 £26,080,000

Joules is a premium lifestyle brand which designs and sells own branded clothing, accessories and homeware. They currently have 143 stores in the UK and Republic of Ireland.

The last 3 years accounts are set out below:

Date of Accounts 28th May 2017 27th May 2018 26th May 2019Turnover £148,696,000 £174,660,000 £199,370,000Pre-tax Profit £10,287,000 £11,322,000 £12,626,000Total Net Worth £17,069,000 £24,192,000 £36,234,000

The offices tenants are a mixture of wealth managers, media, marketing and solicitors.

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

EPCEPCs for the property can be provided upon request.

PROPOSAL

We are instructed to seek offers for our client’s freehold interest in the region of £3,075,000 (Three Million and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 8.2%, after allowing for purchaser’s costs of 6.46%.

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Langham House302-308 Regent StreetLondon W1B 3AT

MISREPRESENTATION ACT: KLM Retail, for themselves and for the vendors of this property, whose agents they are, give notice that (i) the particulars and any further information communicated by any means to potential purchasers of the property described in the particulars, or their advisers, in connection with the possible sale of the property are provided solely for the purpose of assisting potential purchasers in deciding whether they wish to proceed with further investigation of the property and do not constitute either the whole or any part of an invitation, offer or contract for sale of the property; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct as at the date of the particulars (or the date of the relevant information if earlier). However, potential purchasers are not entitled to rely on them as statements or representations of fact but should satisfy themselves by searches, enquiries, surveys and inspections or otherwise with regard to the accuracy of such details. No responsibility or liability is or will be accepted by KLM Retail, the vendor(s) of the property or any of their respective subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or agents for any loss or damage suffered by any party, resulting from reliance on the particulars or any other information communicated by any means to that party, or its advisers, in connection with the possible sale of the property. No person in the employment of KLM Retail or the vendor(s) has authority to make or give any representation or warranty, express or implied, in relation to the property. References to KLM Retail include any joint agents acting with KLM Retail. Designed by BRAND+OUTLINES Ltd. 2020

FURTHER INFORMATIONFor further information or to arrange an inspection of the property, please contact:

Rupert Guy +44 (0)20 7317 3710+44 (0)7768 865 914rguy@klmretail.com

Ed Gambarini +44 (0)20 7317 3713+44 (0)7825 689 037 egambarini@klmretail.com