BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LUPRIME HIGH STREET RETAIL & LEISURE INVESTMENT OPPORTUNITYANCHORED BY WILKO FOR A FURTHER 10 YEARS

Photo as of August 2016

SCARBOROUGH RAILWAY STATION

THE ROTUNDA MUSEUM

THE BRUNSWICK SHOPPING CENTRE

THE GRAND HOTEL

ROYAL HOTEL

CENTRAL TRAMWAY

Site outlines for indicative purposes only.

WESTBOROUGH

A165

NCP CAR PARK

BALMORAL CENTRE

BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LU

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

INVESTMENT CONSIDERATIONS n Scarborough is a popular seaside town that benefits

from a strong tourism industry driving the local economy

n Limited competing retail destinations in close proximity with the nearest retailing town of York approximately 40 miles from Scarborough

n The total population within the Scarborough primary catchment area is 148,000 (PROMIS)

n Prominent centre located on the prime retailing pitch

n Freehold mixed use investment totalling 57,339 sq ft (5,327 sq m)

n Rental income of £623,035 per annum including top ups and assumed Body Shop rent

n Over 30% of the income is secured to Wilko for a further 10 years

n WAULT of 10.65 years to break and expiry

n Let to strong covenants in the form of Wilko, The Body Shop, EE, Card Factory and The Edinburgh Woolen Mill amongst others

n Limited vacancy on Westborough / Newborough

n Significant NCP Car Park, providing c.450 car parking spaces, forms part of The Balmoral Centre and therefore the property benefits from substantial footfall

n Offers are sought in excess of £6,875,000 (Six Million, Eight Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of approximately 8.50% assuming purchaser’s costs of 6.65%

Photo as of August 2016

BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LU

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

LOCATIONScarborough is a popular north east seaside town located in Yorkshire approximately 40 miles (64 km) north east of York and 42 miles (67 km) north of Hull. Scarborough is the main town on the south side of the North Yorkshire Moors National Park and as such benefits from a strong tourist industry, especially during summer.

The town benefits from good communication links with the A64 providing access to York 40 miles to the south west. The A165 providing access to Hull 42 miles (67 km) to the south, and the A171 providing access to Middlesbrough 47 miles (76 km) to the north west.

Rail services are provided from Scarborough railway station with quickest journey times to York, Leeds and London Kings Cross of 48 minutes, 1 hour 14 minutes, and 3 hours respectively.

The nearest international airport is Leeds Bradford Airport which is located 68 miles (109 km) to the south west. In 2014 the airport handled approximately 3,275,000 passengers.

SITUATIONThe Balmoral Centre is situated in the city centre on the northern side of Westborough opposite its junction with Huntriss Row, occupying a prime retailing pitch with nearby occupiers including Marks & Spencer, Natwest Bank, Clarks and Thorntons. The rear of the centre fronts Aberdeen Terrace, which also provides access to the car park.

DESCRIPTIONThe property, built in the 1970s, totalling 57,339 sq ft (5,327 sq m) comprises a mix of retail and leisure units with retail units situated on ground floor, a vacant first floor nightclub, and a gym located on the second floor. The scheme provides seven retail units with five of the units providing frontage to Westborough, one unit situated within the centre and a Wilko situated to the rear of the centre. There is also an NCP car park located to the rear above the Wilko, providing approximately 450 car parking spaces, with two entrances into the Balmoral Centre.

M1

M6

M62M65

M60

M56

M66

M18

A63

A64

A165

A170

A171

A15

A38

A52

A1(M)

A1(M)

A1(M)

M180

SHEFFIELD

MANCHESTER

LEEDS YORK

■

SUNDERLAND■

CARLISLE

LIVERPOOL■

NEWCASTLE UPON TYNE■

DONCASTER■

North Yorkshire Moors National Park

■BUXTON

BARNSLEY■

■HALIFAX

DERBY■

BOSTON■

■BOLTON

■GAINSBOROUGH

■GRIMSBY

NOTTINGHAM■

NEWARK-ON-TRENT■

CHESTERFIELD■

STOKE-ON-TRENT■

NEWCASTLE-UNDER-LYME■

LINCOLN■

HULL■

SCARBOROUGH

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Scarborough

Experian Goad Plan Created: 04/08/2016Created By: Allsop

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BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LU

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

© Crown Copyright, ES 100004106. For identification purposes only.

RETAILING IN SCARBOROUGHScarborough is the leading retail destination on the North Yorkshire coast with a primary catchment population of 148,000 (PROMIS). Scarborough has limited competition nearby and ranks 1st on the PMA competition Indicator with the nearest retailing centres of York and Middlesbrough approximately 40 miles away.

The town centre retail floor space totals approximately 1.07 million sq ft which is focussed around a centralised pedestrianised prime retailing pitch on Westborough and Newborough, which runs east from Scarborough railway station (situated approximately 300 metres to the west). Notable retailers on the

prime pitch include Marks & Spencer, Boots, Waterstones, Vodafone and Next. There are two shopping centres within the town centre including The Brunswick Shopping Centre, anchored by Debenhams and the subject property, the Balmoral Centre, which is anchored by Wilko.

Prime retail rents in Scarborough are circa £70 psf Zone A, 30% below the pre-recession peak of £100 psf Zone A (PROMIS).

50 Metres

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Scarborough

Experian Goad Plan Created: 04/08/2016Created By: Allsop

Copyright and confidentiality Experian, 2016. © Crown copyright and databaserights 2016. OS 100019885

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BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LU

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

TENANCY SCHEDULE

Address Unit Tenant Description Area (sq m)

Area (sq ft)

Passing Rent (£ p.a.)

Passing Rent (ITZA)

Lease Start Date

Lease Expiry Date

Next Review

Comments

The Balmoral Centre Unit 1 The Body Shop International Plc GF Retail 83.1 894 £56,600 £91.15 04/04/06 03/04/16 Lease renewal under negotiation, likely to be settled at c.£40,000 p.a.(1)

(ITZA) 51.4 553

FF Storage 177.1 1,906

Total 260.2 2,800

The Balmoral Centre Unit 2 EE Limited GF Retail 84.4 908 £57,500 £101.81 29/01/07 28/01/17 Tenant has served a S.26 notice.

(ITZA) 51.7 556

FF Storage 25.5 274

Total 109.9 1,182

The Balmoral Centre Unit 3a Sportswift Ltd (t/a Card Factory) GF Retail 108.7 1,170 £67,000 £100.41 19/11/01 18/11/16 Tenant has served a S.26 notice.

(ITZA) 58.7 632

FF Storage 101.2 1,089

Total 209.9 2,259

The Balmoral Centre Unit 3b The Edinburgh Woollen Mill Limited GF Retail 246.2 2,651 £89,900 £97.51 29/09/01 28/09/16 Holding over.

(ITZA) 78.2 842

FF Storage 223.0 2,400

Total 469.2 5,051

The Balmoral Centre Unit 4 Vacant GF Retail 159.3 1715 £56,400 £65.00 Vendor will offer an 18 months rents, rates and service charge guarantee at a rent of £56,400 p.a. An offer has been received from a wholesale interior business for a 5 year lease with a break in year 3.(ITZA) 73.1 787

FF Storage 150.5 1,620

Total 309.8 3,335

The Balmoral Centre Unit 5-8 Mohammed Ashraf (Not in occupation)

GF Retail 314.6 3,386 £32,000 £13.31 21/12/12 20/12/17 Tenant is not currently paying their rent. Landlord's break option on the 01/09 and 01/03 of every year of the term on 6 months notice. Vendor will offer an 18 months rents, rates and service charge guarantee at a rent of £32,000 p.a.(ITZA) 210.0 2,260

FF Storage 54.9 591

Total 369.5 3,977

The Balmoral Centre Supermarket Wilko Retail Limited GF Retail 2299.0 24,746 £215,000 £7.14 (overall psf)

25/03/17 24/03/27 25/03/22 Let on a reversionary lease with a rent free period from 25/03/17 to 30/11/17. This will be topped up by the vendor.

FF 198.7 2,139

SF 218.3 2,350

TF 80.6 867

Total 2796.6 30,102

The Balmoral Centre Multi-Storey Car Park NCP Empire No.2 Limited £60,500 25/03/1975 24/03/2074 25/03/17 Under-lease dated 12/05/05 to Stepbranch Ltd, expiring 28/05/37.

The Balmoral Centre Sub-Station The North Eastern Electricity Board £60 01/01/1975 31/12/2034

The Balmoral Centre Nightclub Vacant FF Nightclub 395.2 4,254 Vendor will offer an 18 month rates and service charge guarantee totalling £21,588 p.a.

The Balmoral Centre 2nd Floor Colin Hogg Gym 406.8 4,379 £4,675£1.07

(overall psf)19/03/13 30/11/16

Excluded from 1954 Act. No service charge is collected from this tenant pursuant to a side letter that is personal to Colin Hogg. A 12 month lease by reference is under negotiation.

The Balmoral Centre (Total) Including Rental Top ups

5,327.0 57,339 £623,035(1)

(1)Assumed rent of £40,000 p.a.

BALMORAL CENTRE WESTBOROUGH, SCARBOROUGH YO11 1LU

THE BODY SHOP INTERNATIONAL PLC

The Body Shop was founded in 1976 in Brighton and has since become a global beauty brand. The Body Shop was acquired by L’Oreal in 2006 and now has more than 3,000 stores in over 60 countries.

31-Dec-2015 02-Jan-2015 28-Dec-2013

Turnover (000’s) £404,100 £428,100 £435,700

Pre-tax Profit (000’s) £44,900 £39,300 £57,000

Total Net Worth (000’s) £321,300 £296,700 £281,300

EE LIMITED

EE is a British mobile network operator and internet service provider and a subsidiary of BT Group. It is the largest mobile network operator in the UK, with around 28 million customers and the largest operator of 4G services in Europe.

31-Dec-2015 31-Dec-2014 31-Dec-2013

Turnover (000’s) £6,311,000 £6,327,000 £6,482,000

Pre-tax Profit (000’s) £416,000 (£255,000) (£101,000)

Total Net Worth (000’s) (£551,000) (£868,000) (£661,000)

SPORTSWIFT LIMITED (CARD FACTORY)

Card Factory is a chain of greeting card and gift stores in the United Kingdom with the first store opening in 1997. Card Factory is now listed on the London Stock Exchange and is part of the FTSE 250 Index.

31-Jan-2015 31-Jan-2014 31-Jan-2013

Turnover (000’s) £336,676 £313,182 £285,957

Pre-tax Profit (000’s) £62,320 £69,243 £66,111

Total Net Worth (000’s) £58,862 £215,073 £180,674

WILKO RETAIL LIMITED

Wilkinson’s was founded in 1930 by JK Wilkinson and is still family owned. Today Wilko has almost 400 stores and employs approximately 23,000 employees. Wilko stores receive more than 4 million visitors per week.

30-Jan-2016 31-Jan-2015 01-Feb-2014

Turnover (000’s) £1,464,475 £1,444,563 £1,462,843

Pre-tax Profit (000’s) £25,955 £5,496 £27,612

Total Net Worth (000’s) £182,398 £160,898 £248,295

THE EDINBURGH WOOLLEN MILL LIMITED

The Edinburgh Woollen Mill has 265 mainstream high street stores, 88 speciality tourist shops and 27 destination sites throughout the UK.

27-Feb-2016 28-Feb-2015 01-Mar-2014

Turnover (000’s) £168,701 £166,230 £168,462

Pre-tax Profit (000’s) £24,680 £24,938 £26,219

Total Net Worth (000’s) £144,097 £125,599 £105,227

PRIME HIGH STREET RETAIL INVESTMENT OPPORTUNITY

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, undertakings 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. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 02.17

www.allsop.co.uk

PROPOSALOffers are sought in excess of £6,875,000 (Six Million, Eight Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of approximately 8.50% assuming purchaser’s costs of 6.65%

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

Scott Tyler 020 7543 6719scott.tyler@allsop.co.uk

Andy Pointon 020 7543 6720andy.pointon@allsop.co.uk

Richard Lea 020 7543 6832richard.lea@allsop.co.uk

EPCsEPCs will be made available on request.

SERVICE CHARGEThe budgeted service charge for the Balmoral Centre for year from 01/10/16 to 30/09/17 is £61,603 which equates to £1.07 psf.

VATThe property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).