Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJINVESTMENT OPPORTUNITY

DRIVE-THRU RESTAURANT

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

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I1IINVESTMENT SUMMARY

• A purpose built Drive-Thru restaurant, trading as KFC

• Prominently located fronting Penn Road and Marston Road

• Let to the strong covenant of Kentucky Fried Chicken (GB) Ltd (D&B 5A1) for an unexpired term of 12.5 years

• 3,200 sq ft (297 sq m) of accommodation, recently refurbished to brand standards

• Established out of town location with surrounding occupiers including Waitrose, Shell, Screwfix and McDonald’s

• Current passing rent of £91,200 pa (c.£28.50 psf) subject to open market reviews

• Freehold

We are instructed to seek offers in excess of £1,433,000, (One Million, Four Hundred and Thirty Three Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00%, assuming purchaser’s costs of 6.07%.

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I2 ILOCATION

WestBromich

Birmingham

Wolverhampton

Walsall

Brownhills

Wednesbury

Dudley

Codsall

Wyken

Seisdon

Wombourne

Bishop’sWood

WestBromich

Birmingham

Wolverhampton

Walsall

Brownhills

Wednesbury

Dudley

Codsall

Wyken

Seisdon

Wombourne

BishopsWood

A449

A459

A461

A4124

A452

A34

A5

A41

A41

A41

A34

A449

A460

A454

A454

A458

A4123

M54

M6 Toll

M6

M6

M5

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

The property is located in Wolverhampton, a large city and metropolitan borough in the West Midlands, with a resident population of approximately 249,470. The city is located approximately 17 miles (27 km) north west of Birmingham, 33 miles (53 km) south east of Shrewsbury, 33 miles (53 km) south of Stoke-on Trent and 140 miles (225 km) north west of London.

The town benefits from excellent road connectivity, with the M5 motorway located 8.3 miles (13.4 km) to the south east of the property, providing access from West Bromwich and Birmingham to Exeter and the south west of England. The M6, located 6 miles (9.9 km) to the east of the property, joins the M40 which provides access from London to Wolverhampton. The M6 further provides access to the wider UK motorway network including the M54, M69 and M1 motorways. Birmingham Airport is located approximately 26 miles (42 km) south of Wolverhampton and rail services run from Wolverhampton to London Euston in approximately 1 hour and 48 minutes.

Junction 2 of the M5 motorway is located 15 miles south east of Wolverhampton. The A449 connects with the A454 which provides access to Junction 10 of the M6, located 5.5 miles (9km)south east of Wolverhampton.

Click here for a Google map function.

A449

A459

A4150

A4123

BIRMINGHAM RD

GRAISELEY HILLPENN RD

MARSTON RD

OAKLANDS RD

LEA RD

Rugby

Birmingham

CoventryKidderminster

Bridgnorth

Walsall

LichfieldCannock

Burtonupon Trent

Shrewsbury

WolverhamptonLeicester

Telford

Stafford

Solihull

nuneaton

SuttonColdfieldWest

Bromich

Rugby

Birmingham

CoventryKidderminster

Bridgnorth

Walsall

LichfieldCannock

Burtonupon Trent

Shrewsbury

WolverhamptonLeicester

Telford

Stafford

Solihull

Nuneaton

SuttonColdfieldWest

Bromich

M40

M42

M42M54

M6 M1

M69

M5

M6M6 Toll

A449

A449

A442

A458

A454

A515

A449

A456

A435

A444A461

A435

A429

A423

A38

A42

A41

A41

A34

A49

A53

A46

A46

A5

A6

A456 M45

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I3 ISITUATION

The property is situated in an extremely prominent position on Penn Road (A449), a busy arterial dual carriageway providing access to the city centre to the north. The property is accessed off Marston Road, sharing access with the adjacent Waitrose and Shell petrol filling station. The development site to the north has been granted planning permission for a Jaguar Land Rover car dealership (planning ref: 16/01081/FUL granted on 10 Feb 2017).

Other occupiers in the surrounding area include McDonald’s to the north, a 74 bedroom Mercure hotel to the west and Screwfix to the south.

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

A449

Stanford Road

Graiseley Hill

Marston Road

Penn Road

Penn Road Island

A4150

A4150Ring Road

Ring Road St Johns Retail Park

Planning for new JLR car dealership

CITY CENTRE

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I4 IDESCRIPTION

The property comprises a single-storey Drive-Thru unit with dedicated car parking. The building is of masonry construction with a mansard roof and a glazed restaurant area to the west elevation. The Drive-Thru lane runs to the south of the building and the collection window lies under a brick porch. The entrance is situated to the north of the unit and the property has been recently refurbished in line with KFC’s current brand standards.

Internally there is a 98 cover restaurant, WC facilities, kitchen area, ancillary offices and storage.

Externally, the property benefits from an extensive road frontage with approximately 37 customer car parking spaces and the Drive-Thru lane.

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

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I5 ISITE AREA

The property has an approximate site area 0.72 acres (0.29 hectares) with a low site coverage of approximately 16.6%.

We have measured the property in accordance with the RICS Code of Measuring Practice (Sixth Edition) to provide the following approximate Gross Internal Areas (GIA):

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

ACCOMMODATION

Accommodation Sq ft Sq m

Front of House 1,770 164

Kitchen Area 1,775 165

Ancillary 315 29

Total GIA 3,865 360

For rent review purposes, the lease states an assumed GIA of 3,200 sq ft (296 sq m).

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I6 ITENURE

The property is held Freehold.

TENANCY

The property is let to Kentucky Fried Chicken (GB) Ltd by way of a 15 year lease on FRI terms from 10th February 2015, with approximately 12.5 years unexpired.

The lease benefits from upwards only 5 yearly rent reviews, to open market value. The current passing rent is £91,200 per annum, equating to £28.50 psf.

Kentucky Fried Chicken (GB) Ltd

The property is let in its entirety to Kentucky Fried Chicken (GB) Limited (company number 00967403), which has a Dun and Bradstreet rating of 5A1 and is the core UK holding company of YUM BRANDS INC.

As of December 2015, there were 784 KFC outlets in the United Kingdom. The British turnover was circa £465 million in 2015, with a pre-tax profit of £55.9 million. It is understood about 70% of outlets are run by franchisees, with the remainder company owned. The company employs 24,000 people and there are plans for a further 500+ new target sites across the UK.

KFC (GB) Ltd latest published accounting information is as follows:

Financial Year End 4 Dec 2016 29 Nov 2015 30 Nov 2014

Sales Turnover 479,870,000 465,334,000 478,123,00

Profit / Loss Before Taxes 58,992,000 55,946,000 47,323,000

Tangible Net Worth 127,739,000 99,149,000 162,889,000

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ COVENANT

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7VAT EPC PROPOSAL FURTHER INFORMATION

I7 IVAT

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

EPC

An Energy Performance Certificate for the property is available upon request. The rating for the property is C 56.

PROPOSAL

We are instructed to seek offers in excess of £1,433,000 (One Million, Four Hundred and Thirty Three Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00%, assuming purchaser’s costs of 6.07%

Unit 4Penn Road Retail ParkPenn RoadWolverhamptonWV2 4NJ

FURTHER INFORMATIONFor further information or to arrange an inspection, please contact:-

Rebecca James 020 7255 8040 rebecca.james@rapleys.com

Jonny Doulton 020 7255 8099 jonny.doulton@rapleys.com

Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey - © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright.

All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. September 2017. Design by carve-design.co.uk 13080.