INVESTMENT OPPORTUNITY · INVESTMENT RATIONALE ... FILLING STATION BRISTOL BS4 1UJ 5TH JAN 2012 (£) 5TH JAN 2013 (£) 4TH JAN 2014 (£) Turnover £12,313,000,000 £12,448,000,000

INVESTMENTOPPORTUNITYCO-OPERATIVE PETROL FILLINGSTATION/CONVENIENCE STOREHENGROVE WAY, BRISTOL BS4 1UJ

PETROL STATION/CONVENIENCE STORE INVESTMENT

LONG UNEXPIREDLEASE TERM

InvestmentSummary• 24 hr modern purpose built petrol filling station and convenience store investment.

• Located on a highly prominent position fronting the A4174 Hengrove Way, 4 miles to the south of Bristol City Centre and opposite Hengrove Leisure Park.

• Large site area of 1.52 acres.

• Entirely let to Co-operative Group Food Limited on a 25 year lease from 21 May 2003 (approximately 13.25 years unexpired).

• Current rent of £202,000 per annum, with 5 yearly open market rent reviews.

• Freehold.

• Offers in excess of £2,635,000 (Two Million, Six Hundred and Thirty Five Thousand Pounds).

• This reflects a net initial yield of 7.25% after allowing for purchaser’s costs of 5.80%.

A3029

A38

A4

A4174

A4174

A37A4174

A37

A38

BEDMINSTERSTATION

PARSONSTREETSTATION

BRISTOL

LOCATIONBristol is the dominant commercial centre of the South West, located 118miles west of London. Bristol is the 5th largest conurbation in the UK and hasan estimated population of 550,000 and an estimated wider urban populationof 1.6 million residents. The city is one of the largest employers outside ofLondon for banking, finance and insurance, whilst other major employmentsectors include defence, aerospace, engineering, ICT and electronicsindustries. As of Q4 2013, Bristol had the highest employment rate of theEnglish Core Cities.

Bristol is served by two mainline train stations, Temple Meads and BristolParkway. The fastest journey time to London is 1 hour 20 minutes, this traveltime will be reduced by approximately 12 minutes following the completion ofthe £1 billion electrification in 2017. Bristol International Airport serves bothdomestic and international locations, passenger numbers rose for the fourthconsecutive year in 2013, with 6.1m people passing through the airport in2013.

SubjectProperty

SITUATIONThe subject property is located on the busy A4174 Hengrove Way at thejunction of Roman Farm Road, approximately 4 miles south of Bristol city centre.The A4174 acts as a major southern ring road linking the A38 Bridgewater Roadand the A37 Bristol Road/Wells Road. The dual carriageway has an annualaverage daily flow of 22,770 vehicles (source: DFT 2013). The property can beaccessed at the traffic light junction via both directions of Hengrove Way.

Hengrove Leisure Park is located immediately opposite the subject property andis home to a number of national occupiers including Premier Inn, Brewers Fayre,McDonald’s, Frankie & Benny’s, Cineworld, Gala Bingo and KFC. A range of tradecounter operators, including Tile Giant, Tile Click Express, Clifton Paints andTopps Tiles are situated adjacent on Hengrove Way. Imperial Retail Park islocated 0.25 miles from the subject property, with occupiers including Iceland,B&Q, Pizza Hut, SCS, Carpet Right, amongst others. A substantial residentialdevelopment is located directly to the rear of the subject site.

SITEThe site area extends to approximately 0.61 hectares (1.52 acres).

TENUREThe property is held freehold.

TENANCYThe entire property is subject to a single lease to Somerfield Stores Ltd,guaranteed by Somerfield plc (both now Co-operative Group Food Ltd) for aterm of 25 years from 21st May 2003 on standard full repairing and insuringterms at a passing rent of £202,000 per annum. The rent is subject to 5 yearlyopen market reviews, with the next review on 21 May 2018.

DESCRIPTIONThe property comprises a generous 1.52 acre site providing a modern petrolfilling station together with a Co-operative convenience store. The site trades24 hours a day.

• Petrol filling station. The forecourt is equipped with 4x6-fuel dispensers.The forecourt has 18 car spaces and includes 2 jet washing facilities, oneroller car washer plus vacuum/air machines.

• Convenience store of approximately 2,077 sq ft NIA which includes an instore bakery, cold store, ATM, staff areas and an external storage facility.

The convenience store is branded as Co-operative, and the petrol fillingstation is branded as Texaco. The Texaco branding is due to the Co-operativehaving a joint venture with Chevron (Texaco’s owner). The site is whollymanaged by the Co-operative.

ACCOMMODATIONAccording to RICS Code of Measuring Practice (6th Edition) the conveniencestore provides a Net Internal Area of 2,077 sq ft (193 sq m).

COVENANT INFORMATIONThe Somerfield Group was acquired by the Co-operative Group in March2008 in a £1.6 billion transaction. As of the period ending January 2014 theCo-operative Group reported revenues of £10.534 bn.

The Co-operative Group which formed in 1844, is the UK’s largest mutualbusiness, owned by nearly eight million members. It operates 4,500 retailoutlets and employs approaching 90,000 people. It is the UK’s 5th largest foodretailer specialising in the convenience store format. It operates over 2,800stores across the UK employing over 74,000 people.

The Co-operative Group has recently appointed a new management teamwhich has focused the business on its core services and stabilised the financialposition of the company. The recent trading figures show an improved capitalposition and stable liquidity. Food is the largest element of the Co-OperativeGroup. There is a strong focus on growing the convenience estate by a further100 new stores in 2014.The Group is improving the format of stores and isanticipated that by the end of 2014 75% of the food store estate will have beenrefurbished since 2012. The Co-Operative Group have a Standard and Poor’srating of B+ and a Risk Disk rating of “Very Low Risk.”

The assets of Somerfield Stores Ltd and Somerfield plc have now beenabsorbed into The Co-Operative Group Food Limited who guarantee the lease.

The Co-operative Group Food Limited (Co No: IP26715R) have published thefollowing financial accounts:

INVESTMENT RATIONALE• 24hr access, highly prominent roadside location

• Located on busy dual carriageway with high passing traffic flow

• Long unexpired term of circa 13.25 years

• Single lease to large covenant of Co-operative Group Food Limited

• Opposite Hengrove Leisure Park and 0.25 miles from Imperial Retail Park

EPC RATINGThe property has an EPC rating of D (87).

VATWe understand this property has been elected for VAT.

PROPOSALWe are instructed to seek offers in excess of £2,635,000 (Two Million, SixHundred and Thirty Five Thousand Pounds). This reflects a net initialyield of 7.25% after allowing for usual purchaser’s costs.

WEB ACCESSwww.cushmanwakefieldinvestmentsales.co.uk/cw/co-opbristol

CO-OPERATIVE PETROLFILLING STATIONBRISTOL BS4 1UJ

5TH JAN 2012(£)

5TH JAN 2013(£)

4TH JAN 2014(£)

Turnover £12,313,000,000 £12,448,000,000 £10,534,000,000

Net Worth £3,100,000,000 £2,669,000,000 £756,000,000

www.cushmanwakefield.com

FURTHER INFORMATION:

DAVID ESTERKINTel: 020 7152 5370Email: [email protected]

CUSHMAN & WAKEFIELD LLP43/45 Portman SquareLondon W1A 3BG

NICK DUFEUTel: 020 7152 5230Email: [email protected]

CUSHMAN & WAKEFIELD LLP

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any partof a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusiveof VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.

Photography, Print & Production by Plus Art Ltd 0115 972 4000

March 2015