Neighbourhood mixed-use investmentin an affluent location

C R O S BY / L I V E R P O O L / L 2 3 2 U N

MOOR LANE

02INVESTMENT SUMMARY

• Crosby is an affluent suburb, approximately 6 miles north of Liverpool city centre.

• The scheme comprises 4 buildings which have been arranged into 14 retail and leisure units and 9 office suites. Occupiers include Home Bargains, Superdrug, Peacocks, Village Vets, Crosby Cocktail Bar and Costa Coffee.

• Prominent position with extensive frontage onto Moor Lane, the principal retail pitch in Crosby. The town is anchored by Sainsbury’s with a mix of local and national retailers.

• The scheme has recently been comprehensively refurbished to a high specification and includes new frontages.

• Current income of £526,900 per annum with an ERV of £619,800 per annum.

• WAULT of 7.7 years to expiry and 5.6 years to break.

• Opportunity to improve the income and WAULT through lease regears and renewals.

• Proven reversion set by recent lettings and rent reviews.

• Freehold.

• We are instructed to seek offers in excess of £6,380,000 (Six Million, Three Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT.

• A purchase at this level reflects a net initial yield of 7.75%, an equivalent yield of 8.81%, and a reversionary yield of 9.11%, after allowing for usual acquisition costs of 6.64%.

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03M O O R L A N E / C R O S BY / L I V E R P O O L / L 2 3 2 U N

LOCATION

Crosby is an affluent town in the Metropolitan Borough of Sefton, located approximately 6 miles north of Liverpool city centre, 12 miles south of Southport and 22 miles south west of Preston. The popular coastal town has a population of approximately 28,217.

The area benefits from good road communications with the A565 providing direct access to Southport, Bootle and Liverpool city centre. The A565 route joins the A5758 and in turn provides access to the M58 and M57 motorways, connecting the town to the national road network.

Crosby is also well served by public transport. The town benefits from frequent bus services through Merseyside and is served by three train stations. Hall Road Train Station is approximately 1 mile North West of the town centre, Blundellsands and Crosby is approximately 0.8 miles south west and Waterloo is located 1.3 miles south. Train services run approximately every 15 minutes to Liverpool city centre.

CROSBY HIGHLIGHTS

• The Sunday Times named the suburb within the top 12 Best Places to Live in Britain (North West) 2016.

• The Crosby Investment Strategy published by Sefton Council in 2017 highlights the commitment of the local authority to the area, with the aim of attracting more investment and developing the suburb into a vibrant centre.

• House prices in Crosby are circa 30% higher than the average of Liverpool as a whole.

• The ONS Census data shows that 62% of the population is of social grade AB and C1.

A565

A5758

A565

GREAT CROSBY

MOOR LANEEDGE LANE

LYDIATE LN

BUCKLEY HILL LN

FLEETWOOD’S LN

MANOR RD

HALL RD E

MERSEY RD

CORONATION RD

MOOR LANE

THE NORTHERN RD

Rimrose Valley

Country Park

West Lancashire Golf Club

B5193

GORSEY LN

TO LIVERPOOL

TOM57

SAT NAV: L23 2UN

4

2

6

21a10

3 26

24

BOLTON

ST HELENS

WARRINGTON

ALTRINCHAM

RUNCORN

LIVERPOOL

BIRKENHEAD

WIGAN

BURY

LEIGH

ORMSKIRK

MANCHESTER

M6M61

A580

A565

A565

A5758

A59A570

M6

M6

M58

M57

M62

M62

M56

M56

M60

M62

M66

M53

23

CROSBY

CROSBY

04SITUATION

The property occupies a prime and prominent trading position on Moor Lane, the principal retail pitch in Crosby town centre. The pedestrianised thoroughfare is anchored by Sainsbury’s on Liverpool Road and the newly developed McCarthy and Stone residential development which fronts the northern end of Moor Lane.

Retail in Crosby is focused around two pedestrianised streets, Liverpool Road and Moor Lane. Crosby is a bustling community, offering a range of national and independent retailers. As well as the national retailers represented in the scheme, national retailers in the immediate area include Sainsbury’s, Barclays, Boots, Nat West and Tesco Express. There is also a wide range of independent bars and restaurants.

There is excellent car parking surrounding the subject property, with three council operated car parks providing approximately 330 spaces.

UNDER OFFER

ASTOP

BOTTEGA

ITALIAN

RESTAURANT

TELEGRAPH HOUSE

A565

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05DESCRIPTION

The property comprises leisure, retail, office suites and ancillary accommodation. The scheme is made up of 4 buildings; Glen Buildings North, Glen Buildings South, 8 Moor Lane and 12-14 Moor Lane.

The space has recently been refurbished to a high standard by regeneration experts St Modwen.

Telegraph House is not included in the sale but the vendor is currently progressing interest with a national discount food store. Further details can be provided upon request.

There are 14 retail units, predominantly at ground floor level with prominent frontages to Moor Lane. The units benefit from new, fully glazed frontages and provide flexible accommodation fitted out to the occupier’s corporate standard.

There are 9 suites at first and second floor level, accessed via three entrances on Moor Lane. The accommodation has attracted both office and retail occupiers.

TENURE

The property is held freehold.

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06TENANCY SCHEDULE

Unit Use Tenant Area (sq ft)

ITZA (sq ft)

Term (Years)

Lease Start

Lease Expiry (Break) Rent Review Rent p.a. Rent psf ERV ERV (psf) Comments

Unit 3 (Glen Building South) Retail Sportswift Ltd (t/a Card Factory) 1,910 856 5 11/04/18 10/04/23 None £27,500 £32.13 (ITZA) £33,000 £38.55 (ITZA)

Unit 4 (Glen Building South) Retail Wilson & Bailey (t/a Hallmark) 1,544 714 10 29/01/19 28/01/2029

(29/01/2024) 29/01/24 £27,500 £38.52 (ITZA) £27,500 £38.52 (ITZA) 6 months rent free to be topped up by vendor.

Unit 3 (Glen Building North) Retail Vaultex UK Limited 1,298 899 10 14/01/19 13/01/2029 (14/01/2022) 14/01/24 £35,000 £38.93 (ITZA) £35,000 £38.93 (ITZA) 6 months rent free to be topped up by vendor.

12-14 Moor Lane Retail T J Morris Ltd (t/a Home Bargains) 10,608 - 10 16/08/16 15/08/26 16/08/21 £65,000 £6.13 £106,080 £10.00

12-14 Moor Lane Retail John Jones (t/a JK'S E-CIG) 770 561 5 05/06/18 04/06/2023

(05/06/2021) None £13,000 £23.17 (ITZA) £17,000 £30.30 (ITZA) Tenant option to break 05/06/2021.

8 Moor Lane Retail Optimum Coffee Services Ltd (t/a Costa Coffee) 966 565 10 17/05/18 16/05/2028

(17/05/2023) 17/05/23 £22,000 £38.94 (ITZA) £22,000 £38.94 (ITZA)

8A Moor Lane Retail Superdrug Stores Plc 2,804 1493 5 29/09/15 28/09/20 None £40,000 £26.79 (ITZA) £58,000 £38.85 (ITZA)

8B Moor Lane Retail Martin Knibb & Karen Knibb (t/a George's L Access) 584 477 20 31/05/12 30/05/32 31/05/17 £14,000 £29.35 (ITZA) £18,250 £38.26 (ITZA) 2017 rent review outstanding.

Unit 10 GF & Part 1st Moor Lane Retail Peacock Stores Ltd 5,976 - 10 25/05/18 24/05/2028 (25/05/2023) 25/05/23 £60,000 £10.04 £60,000 £10.04 12 months rent free to be topped up by vendor.

Area includes 1,000 sq ft of first floor ancillary accommodation.

Unit 10A Part 1st Moor Lane Sui Generis Village Vets Formby Ltd 3,794 - 10 21/09/18 20/09/28 21/09/23 £38,500 £10.15 £38,500 £10.15 New unit. Tenant has a contractual option to renew.

Unit 1 (Glen Building South) Leisure Crosby Cocktail Bar Ltd 634 - 10 17/08/18 16/08/2028 (17/08/2023) 17/08/23 £15,000 £23.66 £15,000 £23.66 3 months rent free to be topped up by vendor followed

by 6 months half rent.

Unit 2 (Glen Building South) Leisure Osteria Italia Ltd (t/a Bottega Italian Restaurant) 1,997 - 10 12/12/18 11/12/28 12/12/23 £32,750 £16.40 £40,000 £20.03 6 months rent free to be topped up by vendor followed

by 6 months half rent.

Unit 1 (Glen Building North) Leisure Keith Downes (t/a Blues Bar) 592 - 10 22/05/18 21/05/28 22/05/23 £12,200 £20.61 £12,200 £20.61

Unit 2 (Glen Building North) Leisure Keith Downes (t/a Blues Bar) 1,028 - 10 22/05/18 21/05/28 22/05/23 £22,500 £21.89 £22,500 £21.89

8D Moor Lane Leisure Hard Times and Misery Ltd 717 - 10 02/08/18 01/08/2028 (02/08/2023) 02/08/23 £6,300 £8.79 £6,600 £9.21 Rent increases to £6,600 pa in years 2-5.

Outside L&T Act 1954.

Unit 5A, 5B & 5C (Glen Building South) Office Capital Developments Waterloo Ltd 1,567 - 5 27/06/18 26/06/2023 (27/06/2021) None £15,000 £9.57 £15,670 £10.00 Guarantor: Capital Bridging Finance Solutions Limited.

Outside L&T Act 1954.

Unit 5D (Glen Building South) Office The Aesthetics Hub Ltd 660 - 10 05/10/18 04/10/2028 (05/10/2023) 05/10/23 £6,600 £10.00 £6,600 £10.00

Unit 6 (Glen Building South) Office Elixir Design Interior (Liverpool) Ltd 2,261 - 5 TBC TBC None (TBO-3rd anniversary) £23,000 £10.17 £23,000 £10.17 Heads of Terms agreed and currently in legals. 5 years at

£23,000 per annum. Tenant option to break on 3rd anniversary.

12-14 Moor Lane Office 1 Office Roy Henry & Co Ltd 750 - 5 26/04/1725/04/2022 (26/04/2019) (26/04/2020)

None £5,500 £7.33 £7,500 £10.00 Outside L&T Act 1954.

12-14 Moor Lane Office 2&4 Office Peter Duffy (t/a Foundd) 670 - 3 14/09/18 13/09/2021 (14/09/2019) None £4,900 £7.31 £6,700 £10.00 Rent increases to £5,400 pa in years 2-3.

Outside L&T Act 1954.

12-14 Moor Lane Office 3 Office Africa Products Ltd 690 - 5 13/09/18 12/09/23 None £5,175 £7.50 £6,900 £10.00 Outside L&T Act 1954.

12-14 Moor Lane Office 5 Office Mark Wadsworth and Karen Wadsworth 1,450 - 10 30/06/17 29/06/2027 (30/06/2022) None £10,000 £6.90 £14,500 £10.00 Outside L&T Act 1954.

12-14 Moor Lane Office 6&7 Office Bliss Radio Ltd 730 - 2 24/05/18 23/05/2020 (24/05/2019) None £5,475 £7.50 £7,300 £10.00 Part 1st & 2nd Floor.

Outside L&T Act 1954.

Unit 4 (Glen Building North) Ancillary LTW Dance Company Ltd (t/a Crosby Events Centre) (U/O) 3,477 - 10 15/02/19 14/02/29 15/02/24 £20,000 £5.75 £20,000 £5.75 Guarantor: William Fox Drinks Ltd. 6 months rent free to be topped

up by vendor. Heads of Terms agreed and currently in legals.

Total 47,477 £526,900 £619,800

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07ASSET MANAGEMENT OPPORTUNITIES

• Ongoing regeneration of Crosby and development of Telegraph House.

• Reversionary rent of £619,800 per annum.

• Improve the income and WAULT by continuing lease re-gears, rent reviews and lease renewals.

• Sell individual buildings or units to investors or occupiers.

DATA SITE

Access to the data site is available on request.

EPC

Energy Performance Certificates are available on request.

VAT

The property is elected for VAT.

PROPOSAL

We are instructed to seek offers in excess of £6,380,000 (Six Million, Three Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.75%, equivalent yield of 8.81%, and a reversionary yield of 9.11%, after allowing for usual acquisition costs of 6.64%.

CONTACT

Ben Robertsbroberts@lsh.co.uk • 0161 242 8002

Lawrence Vaughanlvaughan@lsh.co.uk • 0161 242 7077

Scott Gemmellsgemmell@lsh.co.uk • 0161 242 8001

Katie McManuskmcmanus@lsh.co.uk • 0161 242 8064

© Lambert Smith Hampton Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. February 2019. carve-design.co.uk 13906

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