ASDA DOCK ROAD, GOSPORT, PO12 1SHASDA Supermarket Ground Lease Investment Opportunity with 84 years unexpired

ASDA DOCK ROAD, GOSPORT, PO12 1SH

INVESTMENT CONSIDERATIONS ■ Rare opportunity to acquire a long

dated ground lease to Asda Stores Ltd

■ Freehold

■ Total site area of 1.74 hectares (4.8 acres)

■ Predominantly let to Asda Stores Ltd on a 125 year ground lease from 24 June 1975 on full repairing and insuring terms at a current rent of £249,850 pa (84 years unexpired)

■ Guide Price of £5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds) reflecting a net initial yield of 4.50% net of purchaser’s costs at 5.75%.

WalpolePark

LeeslandPark

Bury Road

Stoke Road

Walpole Rd

Molesw

orth Road

Sp

ring G

arden Lane

Dock R

oad

Willis R

oad

The Anchorage

Cranbourne Road

Shaftsbury Road

Woodstock Rd

Dolman Road

Mayfield Road

Prince Alfred St

Park Road

Alver R

oad

Kensington Road

High Street

Clarence R

oad

Haslar R

oad

Weevil Lane

B3333 South Street

B3333 South Street

B3333 Bury Road

A32 Mumby R

oad

A32 Forton Road

LONDON

A350

A350

A354

A338

A338

A346

A419

A303

A303

A361

A39

A272A23

A22

A4

A358

A339

A27

A24A264

A331

A36

A36A34

A33

A34

A31

A31

A3

A37

A37

A35A35

M27

M48 M40M25

M25

M23

M40

M11

M3

M3

M5

M5

M4

M4

M1

A3(M)

A1(M)

M271M27

M49 M32

Southampton

Gatwick

Heathrow

LondonCity

LutonOxford

Bournemouth

Bristol

SouthamptonSouthampton

WinchesterWinchester

AndoverAndover

EastleighEastleigh

PortsmouthPortsmouth

SalisburySalisbury

NewburyNewbury

BasingstokeBasingstokeGuildfordGuildford

WokingWoking

ChichesterChichester

Bognor RegisBognor RegisSouthseaSouthsea WorthingWorthingBrightonBrighton

SwindonSwindonNEWPORTNEWPORT

GloucesterGloucesterCheltenhamCheltenham

BATH

OXFORD

READINGBRISTOL

DorchesterDorchester

YeovilYeovil

WeymouthWeymouth

BournemouthBournemouthGOSPORT

LOCATIONGosport is a borough town located on the south coast of England approximately 3.2 km (2 miles) south west of Portsmouth, 8.0 km (5 miles) south east of Fareham and 24.1 km (15 miles) south east of Southampton.

The town has a population of 82,622 (2011 Census) and lies on a peninsula on the western side of Portsmouth harbour which is linked via pedestrian ferry that runs all day (journey time 3 minutes). There are 341,827 people living within a 5 mile radius of the property.

Communications are good with the town being located on the A32 which in turn links the town with the M27 and the national motorway network. Portsmouth Harbour station is accessed via ferry from Gosport providing regular direct services to London Waterloo with a fastest journey time of 1 hour 39 minutes. Southampton International airport is located 32.2 km (20 miles) to the north west.

ASDA Supermarket Ground Lease Investment Opportunity

© Crown Copyright, ES 100004106. For identification purposes only.

3.7m

CRANBOURNE ROAD

ElSubSta

Superstore

Works

Garage

Garage

18

Gerard House Depot

THEANCHO

RAGE

DOCK

RO

AD

THE ANCHORAGE

Resolution

3

2

House

4

Depot

7

1

5

Works

1to

15

1to

15

NYR6

12

16

14

24

37

2

26

4

18

0m 25m 50m 75m

ASDA Gosport

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1396

SITUATIONThe property is situated within the Cranbourne Industrial Estate with access to the site coming from the eastern side of Dock Road. The surrounding area is a mixture of both industrial and residential uses. Nearby occupiers include Auto Tyre Centre, Halfords, Iceland and Waitrose.

DESCRIPTION & ACCOMMODATIONThe property comprises a site of approximately 1.74 hectares (4.8 acres) on which stands a supermarket developed in the 1970s together with associated car parking. The property provides the following areas (as agreed at the last rent review):

Area (Sqm) Area (Sq ft)

Main Superstore (GIA) 4,456.2 47,967

Foyer 368.7 3,969

Covered Unloading Area 977.5 10,522

The property has been extended by the tenant over the term of the lease to comprise a circa 70,000 sq ft supermarket with car parking for approximately 275 cars on site.

ASDA DOCK ROAD, GOSPORT, PO12 1SH

KEY: ■ ASDA ■ Car Park Land ■ Right of Way

TENANCYThe property is held via three leases:

1. The main site is let by way of a 125 year ground lease from 24 June 1975 on full repairing and insuring terms to Asda Stores Ltd at a passing rent of £233,000 pa (84 years unexpired). The rent is subject to 5 yearly rent reviews which is reviewed to 35.74% of the market rent. The 2015 rent review is outstanding.

2. The additional car parking land is let by way of a 99 year lease from 24 June 1977 at a passing rent of £12,750 pa.

The rent is subject to 5 yearly open market rent reviews.

3. The right of way is let by way of a 96 year lease from 24/06/1980 at a passing rent of £4,100 pa.

The rent is subject to 5 yearly rent reviews which is reviewed to 28% of the ground rent of the adjoining car park land.

COVENANTAsda was founded in 1949 and became a subsidiary of Wal-Mart, the world’s largest retailer in 1999. Asda are one of the big four UK supermarket chains that dominate the UK grocery market. Wal-Mart, who are a quoted company on the US stock market, currently have a market capitalisation in the order of $200 billion.

Asda Stores Limited is the main trading company of Asda being a wholly owned subsidiary of Wal-Mart Stores Inc. The company currently has a D&B rating of 5A1 representing minimal risk of business failure. The latest financial figures available for the tenant are shown below:

Year Ending 31 Dec 2014

Year Ending 31 Dec 2013

Year Ending 31 Dec 2012

Sales Turnover £23,156,700,000 £23,299,400,000 £22,813,900,000

Profit/(Loss) Before Taxes £609,900,000 £605,100,000 £483,500,000

Tangible Net Worth £5,596,800,000 £5,349,000,000 £5,090,400,000

ASDA Supermarket Ground Lease Investment Opportunity

TENUREFreehold

EPCAn energy performance certificate

(EPC) is available upon request.

VATWe understand the property

is not elected for VAT.

PROPOSAL We are instructed to seek offers in excess of £5,250,000 (Five Million, Two Hundred and Fifty Thousand Pounds), which reflects a net initial yield of approximately 4.50% after purchaser’s costs of 5.8%.Please note there is a pre-emption agreement in favour of the tenant - please refer to Allsop for further information.

We would highlight that the property is to be offered at auction (unless sold prior) on 21 March 2016, at the Berkeley Hotel, Wilton Place, London, SW1X 7RL. Further information can be downloaded at www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 02.16

Alex Butler 020 7543 6722alex.butler@allsop.co.uk

For further information or to make arrangements for viewing please contact:

Jonathan Butcher 020 7543 6755jonathan.butcher@allsop.co.uk

David Hammond 020 7543 6721david.hammond@allsop.co.uk

www.allsop.co.uk