YORK, 63/73 Goodramgate, YO1 7LSCity Centre Freehold Retail Investment

INVESTMENT CONSIDERATIONS

The city has a large, affluent primary catchment population of 478,000 (Source: PROMIS), and is one of the UK’s major tourist centres with an estimated 6.7 million tourists visiting the city in 2014, adding approximately £573m into the local economy. (Visit York).

RETAILING IN YORKYork is an attractive retailing centre providing approximately 1.5 million sq ft of retail floor space. The historic nature of the city and the numerous listed buildings create a highly desirable retailing environment with an eclectic mix of national multiples, boutiques and upmarket retailers.

There is a strong upmarket fashion offer on streets including Stonegate and Low Petergate where retailers such as LK Bennett, Timberland, Jack Wills, Reiss and White Stuff are located.

The city also boasts three department stores; Fenwicks, Browns and Debenhams.

York is also famous for its leisure offering with one pub in the city for every day of the year as well as a plethora of quality bistros and restaurants located across the city.

LOCATIONThe property is located in a busy trading location on Goodramgate, a pivot point in the heart of the City, linking the major shopping streets of Parliament Street and Low Petergate to the major tourist attraction that is York Minster. Goodramgate meets Low Petergate at Kings Square. The City of York Council has recently spent £500,000 upgrading Kings Square to enlarge and enhance the quality of the space for pedestrians and performers, the Square being one of the most popular areas for street performers in the City.

Multiple retailers with representation on Goodramgate include Savers as well as a relatively newly opened Wagamamas restaurant and the Boyes Department store, whilst Boots, Caffe Nero, Yo Sushi and Pandora are all in close proximity.

It is also close to the busy Low Petergate where a wide range of fashion stores and restaurants are located including Reiss, Mint Velvet, Paul Smith, Noa Noa, Strada and Bella Italia.

DESCRIPTION The property is of modern frame construction (c. 1960’s build), with brick elevations under a flat roof and is arranged on ground and first floors.

The building currently has four tenants:-

63 is a ground floor lock up café.

63a sits above the café and is a self contained first floor restaurant.

65/69 is a triple fronted shop with sales accommodation on the ground floor and full cover at first floor for ancillary accommodation.

71/73 is a double unit providing sales accommodation on the ground floor and full cover at first floor for ancillary accommodation. A service lift connects both floors.

The block was originally designed as 6 units and therefore provides the flexibility to be subdivided again if requirements dictate, a rare commodity in York City Centre. 65/69 Goodramgate (Bon Marche) provides a very well configured unit comprising of almost 10,000 sq ft. There are very few units of this size in the City.

There is an electricity substation in the rear yard.

■ York is one of the UK’s premier tourist cities and a major retailing centre in the north of England

■ Busy trading location linking the prime retailing areas to York Minster

■ 80% of the income secured to the major multiple retailers of Tesco & Bon Marche.

■ New rebased rents giving excellent rental growth prospects.

■ Long term opportunity to create residential accommodation above (subject to planning)

YORK, 63/73 Goodramgate, YO1 7LS City Centre Freehold Retail Investment

YORKThe Cathedral City of York is the principal commercial and retail centre for North Yorkshire. It is renowned for its rich heritage and home to some of the UK’s top tourist attractions, including York Minster, the Jorvik Viking Museum and the National Railway Museum.

The city is located 26 miles north east of Leeds, 22 miles east of Harrogate and 200 miles north of London.

York benefits from excellent road and rail communications with the A19, A59 and A64 providing direct access to the A1(M) motorway approximately 15 miles to the west and in turn linking to the M1 and M62 motorways. The city also benefits from a major national railway station on the east coast mainline with direct services to Leeds, Manchester, Edinburgh and London, with a fastest journey time to London Kings Cross of approximately 1 hour 45 minutes.

YORK, 63/73 Goodramgate, YO1 7LS City Centre Freehold Retail Investment

ACCOMMODATIONWe have measured the property and recorded the following dimensions and net internal floor areas:

63 Goodramgate Café Luca

63a Goodramgate Yak & Yeti

65/69 Goodramgate Bon Marche

71/73 Goodramgate Tesco

Internal width (max) 21’ 8” 6.6m – – 48’ 8” 14.83m 36’ 8” 11.18m

Shop depth 67’ 0” 20.4m – – 100’ 0” 30.48m 84’ 6” 25.77m

Ground floor 1,225 sq ft 113.80 sq m – 4,959 sq ft 460.69 sq m 2,849 sq ft* 264.67 sq ft

ITZA 633 – 1951 1312

First floor – 1,341 sq ft 124.58 sq m 5,009 sq ft 465.34 sq m 1,703 sq ft 158.20 sq m

The block provides a large ground floor footprint in the region of 9,000 sq ft (836 sq m).

The areas in respect of the premises at 65/69 Goodramgate were agreed at the last two rent reviews.

We believe that the property provides flexible accommodation to suit a variety of size requirements from retailers and bars/restaurants alike. Given the growing concentration of leisure uses in the vicinity we feel that the block could prove of interest to a number of major leisure companies if vacant possession could be achieved.

TENANCIESThe properties are held on effectively full repairing and insuring terms by way of a service charge as follows:-

Address Tenant Lease Start Next Rent Review

Lease Expiry

Passing Rent

Passing £ ZA/£psf

Comments

63 James Oldroyd 02/10/2010 02/12/2015 01/12/2020 £27,500 £43.50 ZA

63a K, J & O Gurung 02/10/2010 02/12/2015 01/12/2020 £14,500 £10.80 psf Tenant Only break operable on 02/12/2015 upon 3 months notice. 6 month rent deposit held

65/69 Bonmarche Ltd 18/06/2012 18/06/2017 17/06/2022 £115,000* £54 ZA 2017 RR to OMRV or RPI linked, capped at £125,000 pa

71/73 Tesco Stores Ltd 12/11/2012 12/11/2017 11/11/2032 £75,000 £53.25 ZA 5 yearly rent reviews to RPI 0% – 4% Tenant only break on 11/11/2022

Substation Northern Powergrid (Northeast) Ltd

30/08/2012 29/08/2072 Peppercorn N/A

£232,000

* In respect of the rent on 65/69 Goodramngate the current passing rent is £110,000 but the rent is due to automatically increase to £115,000 on 18th June 2016. Our client will top up the rent from completion to 18th June 2016.

TENUREThe property is held freehold.

RETAIL RENTAL VALUEWe devalue the current passing rents to Zone A rates of circa £54 psf.

Based upon the current tone of over £85 for the nearby King’s Square and Low Petergate, we believe the rents offer a substantial location discount and should offer an excellent base for future rental growth,

Kings Square and Low Petergate which achieve levels of between £85 - £90 ZA as highlighted below:-

Address Tenant Date £ZA Transaction

1 Kings Square Boots March 2015 £85 ZA Renewal

5 Kings Square Sterling Souvenirs

June 2014 £90 ZA Letting

91/93 Low Petergate

Mint Velvet May 2014 £90 ZA Letting

COVENANT INFORMATIONTenant Date Of

AccountsSales turnover (£’000’s)

Profit Before Tax (£’000’s)

Shareholder Funds (£’000’s)

Creditsafe Rating

Bonmarche Ltd

29/03/2014 £169,294 £9,467 £14,651 Low Risk

Tesco Stores Ltd

22/02/2014 £42,547,000 £1,696,000 £3,169,000 Very Low Risk

The tenants of 63 and 63a Goodramgate are both local traders and therefore no accounts are available.

TOWN PLANNINGThe building lies within the York Central Historic Core Conservation area but is not listed.

PARLIAMENT

STREET

HRH, 3rd Floor, Portland House4 Great Portland Street, London W1W 8QJ

T: 020 7499 5399 | F: 020 7580 6291 | www.hrh.uk.com

ASSET MANAGEMENT OPPORTUNITIES There is air space at second fl oor level above the block and our clients have instructed architects to draw a scheme for the construction of 4 one bedroom and 2 two bedroom apartments with separate access from either Goodramgate or St Andrewgate where there is already signifi cant residential accommodation. These plans are available for inspection on our web site. Currently 2 bedroom apartments on Goodramgate are being marketed in excess of £290,000 and 1 bedroom apartments are being marketed at over £260,000. Purchasers are advised to make their own enquiries of the Local Authority.

VATThe property is elected for VAT.

EPCFull details are available on the website.

PROPOSAL Our clients are seeking offers in excess of £3,375,000 (Three Million Three Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT for our client’s freehold interest.

Based upon the topped up rent in respect of 63/69 Goodramgate, a purchase at this level will show an investor an attractive net initial yield of 6.5% assuming normal purchasers costs of 5.8%. This will improve with the indexed link rent reviews of both Bon Marche and Tesco due in 2017 and the potential uplift achievable in the December 2015 reviews at 63 and 63A.

It may be possible to split the title so that 63 and 63A Goodramgate can be sold independently. Contact the joint selling agents for further information.

CONTACTS To view copies of the leases, information on title, the EPC’s and other information please visit the HRH web site, www.hrh.uk.com/investment-disposals.

To register interest and to carry out an internal inspection please contact the joint agents, HRH or Waterhouse Commercial Surveyors:-

Andrew Hoffbrand Andrew@hrh.uk.comT: 020 7908 7033M: 07889 035 300

Richard Ward richard@hrh.uk.com T: 020 7908 7034M: 07919 118529

Jeremy LovellJeremy@hrh.uk.comT: 020 7908 7037M: 07949 619657

David Waterhousedaw@wcsyork.co.ukT: 01904 622226M: 07970 799909

Charlie Bethellcsab@wcsyork.co.ukT: 01904 622226

DISCLAIMER NOTICE: Whilst every care is taken in the preparation of these particulars Harmer Ray Hoffbrand LLP, any joint

agents involved and the vendor take no responsibility for any error, mis-statement or omission in these details. Measurements

are approximate and for guidance only. These particulars do not constitute an offer or contract and members of the Agent’s

fi rm have no authority to make any representation or warranty in relation to the property. June 2015.

Waterhouse Commercial Surveyors, 46 Bootham, York YO30 7BZ

T: 01904 622226 | www.wcsyork.co.uk

YORK, 63/73 Goodramgate, YO1 7LSCity Centre Freehold Retail Investment

YORK MINSTER