KINGSTON-UPON-THAMES — 86-88 EDEN STREETLET TO BANK OF SCOTLAND PLC UNTIL 2026

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On behalf of Charity Trustees

Retail property expertise2 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

INVESTMENT CONSIDERATIONS

• Excellent location in central retail core of Kingston-upon-Thames, close to Heals, Primark, Sainsbury’s and Marks & Spencer

• One of the most affluent catchment areas in Britain

• Let to the undoubted covenant of Bank of Scotland plc until May 2026

• Freehold

• Price: £4,000,000, subject to contract

• Current Income: £200,000 per annum

• A purchase at this level would reflect a net initial yield of 4.75%, potentially rising to 5.15% in 2016, after purchaser’s costs of 5.80%

Retail property expertise3 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

LOCATION

Kingston-upon-Thames is one of only four Royal Boroughs in England and Wales, and is one of the UK’s leading retail and commercial centres. The historic market town is situated 14 miles from central London and within the M25 orbital motorway. The town is also rich in historical tradition, being the earliest Royal Borough and an ancient market town which was once part of a large ancient parish in the county of Surrey.

Kingston-upon-Thames

The town is serviced by excellent road communications, being situated a few kilometres from the A3 dual carriageway and 11km from the M25. Furthermore, the town centre is served by some 40 bus routes with frequent services to all parts of the borough and other areas of Greater London.

Kingston station runs services into London Waterloo with regular services that arrive in London in as little as 20 minutes. Kingston is also ideally situated just under 20km south east of London Heathrow International Airport and 28km north west of London Gatwick International Airport, thus offering unparalleled access to a vast range of domestic and international flights.

More than 40 bus routes serve Kingston Town Centre including eight night buses. These bus routes provide a frequent service to all parts of the borough, other parts of Greater London, Surrey and Heathrow Airport. Furthermore, the excellent bus network links Kingston to key areas such as Kew, Hampton, Richmond, and Wisley, which expands the shopping catchment considerably.

Subject Property

Retail property expertise4 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

DEMOGRAPHICS

Kingston has an estimated primary catchment population of around 875,000, ranking it 13th of the UK’s PROMIS centres. The Kingston primary catchment population is considered one of the most affluent groups in the UK; the population also includes a particularly high proportion of 25-44 year olds and thus a high proportion of those within the working age range.

Kingston has a high number of students from the further and higher education institutions of Kingston College and Kingston University London. Between the two establishments there are over 35,000 students studying in Kingston and around 10% of these students hail from overseas. This goes someway in explaining the high annual tourism expenditure which currently stands at £360 million per annum.

RETAILING IN KINGSTON

Kingston-upon-Thames has the 3rd strongest retail market potential in the UK, closely trailing London’s West End and Princes Street, Edinburgh. Kingston-upon-Thames attracts just under £1 billion of retail spend per annum from the 20.9 million visitors it attracts throughout the town each year. Furthermore, Kingston is also the third largest shopping destination inside the M25 motorway, with an impressive 1.4 million sq ft of retail floor space (PMA PROMIS).

Clarence Street, the prime pedestrian thoroughfare in Kingston, is in immediate proximity to the subject property. Retailers on Clarence Street include Marks & Spencer, Starbucks, River Island and Top Man. John Lewis (incorporating Waitrose) resides on Wood Street, a side street off Clarence Street.

In other areas of Kingston, recent developments along the riverside south of Kingston Bridge, (which is a 5 minute walk from the subject property) have added bars, restaurants and a theatre. Moreover, the ancient market is still held daily in the Market Place.

The popularity of the town and the increasing development spend in the area has attracted a number of higher end and specialist retailers including White Stuff, Hobbs and Jack Wills.

Excellent location in central retail core, close to Heals, Primark, Sainsbury’s and Marks & Spencer

875,000primary retail catchment ranking the city 13th in the UK (PMA).

£360mannual tourism expenditure per annum

Retail property expertise5 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

SITUATION

Eden Street is situated at the opposite end of Clarence Street to the Bentall Centre and houses excellent footfall generators, such as Primark, Sainsbury’s and McDonalds. Furthermore, this property benefits from an extremely close proximity to Eden Walk Shopping centre which boasts 275,000 sq ft of retail floor space. Other multiple retailers close by include: H&M, Boots and Marks & Spencer.

Kingston train station is a 4 minute walk to the subject property. A major bus drop off area is located immediately to the East of Wheatfied Way (2 minute walk from the subject property) with two multi-storey car parks in the vicinity providing a further 900 car parking spaces.

A high profile development in the immediate area is the Eden Quarter Development. The Eden Quarter Development brief supplementary planning document (SPD) was adopted in March 2015 and has been adopted to promote a coordinated approach to development and to secure the most prosperous long-term future for Kingston’s retailers. This will comprise Primark being extended on Eden Street and British Land redeveloping 57-59 Eden Street opposite the subject property.

Kingston-upon-Thames attracts just under £1 bn of retail spend per annum

DESCRIPTION

The property offers an attractive retail unit of brick and stone façade. Arranged over basement, ground and two upper floors.

The property is suitable for retail and fitted out with state of the art open plan banking hall accommodation. Furthermore, the unit benefits from Class A2 planning consent, but lends itself to other users subject to appropriate consents.

Retail property expertise6 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

COVENANT

Bank of Scotland is a wholly owned subsidiary of Lloyds Banking Group plc, which the Chancellor of the Exchequer has just announced will be returned entirely to the private sector.

The Lloyds Banking Group plc was formed in 2009 through the acquisition of Halifax Bank of Scotland plc (HBOS).

The original lease was in the name of Halifax plc. Following the HBOS Group Reorganisation Act 2006 it is now registered under the name of Bank of Scotland plc.

Below, Bank of Scotland recent financial results are as follows:

Year Ending 31.12.14(000’s)

31.12.13(000’s)

31.12.12(000’s)

Turnover £13,192,000 £15,033,000 £16,315,000

Pre-Tax Profit £3,180,000 £1,450,000 -£1,239,000

Tangible Net Worth £20,420,000 £17,925,000 £17,637,000

TENURE

Freehold.

TENANCY

The property is let to Bank of Scotland plc on a 20 year lease from 22nd May 2006. The lease is drawn on Full Repairing and Insuring terms.

The passing rent is £200,000 per annum, subject to 5 yearly rent reviews, the next being due in May 2016.

ACCOMMODATION

Floor Description SQ FT SQ M

Basement Storage/Ancillary 579 53.79

Ground Retail 2,488 231.44

(ITZA) (1,301) (120.87)

First Office 1,282 119.10

Second Office 1,588 147.53

TOTAL 5,937 551.57

Let to the undoubted covenant of Bank of Scotland plc until 2026

RENTAL VALUE

We have analysed the rent passing of £200,000 per annum to £110 Zone A. The most recent transaction on Eden Street was the rent review at number 57, which is the former Santander and now iMobile. The rent increased to £135 Zone A. Applying this rent to the subject property produces a rental value of £218,000 per annum. Further evidence is available on request.

7 | Fawcett Mead 86-88 Eden Street, Kingston-upon-Thames

IMOBILE

FEATHER & BLACKBED AND BEDDINGS

TO BEPRIMARK EXTENSION

CLARENCE STREET

VAT The property has not been elected for VAT therefore VAT will not be payable on the purchase price.

PROPOSAL

We have been instructed to seek offers of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT.

This reflects a net initial yield of 4.75%, rising potentially to 5.15% at review next year, after deductions of standard purchaser’s cost.

EPC

These are available upon request.

SUBJECT TO CONTRACT

Graham Fawcett +44 (0)20 7182 7482graham@fawcettmead.co.uk

Joe Baio020 7182 7489joe@fawcettmead.co.uk

FURTHER INFORMATION

Misrepresentation Act: The particulars in this brochure are believed to be correct, but accuracy cannot be guaranteed and they are expressly excluded from any contract. Designed by Graphic Outlines Ltd October 2015

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