PC WORLD, GaLLaGheR RetaiL PaRk | 1

PC World MegastoreJunCtiOn 9, m6, GaLLaGheR RetaiL PaRk, WedNesBUrY WS10 9QY

PRime WeLL Let RetaiL WaRehOuSe inVeStment

2 | PC WORLD, GaLLaGheR RetaiL PaRk

PC WORLD, GaLLaGheR RetaiL PaRk | 3

inVeStment SummaRY � Junction 9 at Wednesbury is one of the

principal retail warehouse locations in the country.

� Excellent communication links and extensive catchment of 1,113,691 within a 20 minute drivetime and 5,019,256 within 1 hour.

� The property comprises a solus retail warehouse unit let to DSG Retail Limited totalling 30,500 sq ft (2,834 sq m).

� Prominently situated in a concentration of retail warehousing totalling 535,000 sq ft anchored by a 185,000 sq ft IKEA Superstore and a 102,000 sq ft B&Q warehouse.

� Immediately opposite the 165,000 sq ft phases 1 & 2 of Gallagher Retail Park and adjacent to a 52,000 sq ft Decathlon store.

� Bulky Goods planning consent.

� 135,000 vehicles pass the site on the M6 everyday.

� 138 car parking spaces providing a ratio of 1:221 sq ft.

� Let to the 5A1 rated covenant DSG Retail Limited.

� Site area of 2.5 acres (1 ha).

� Long unexpired term certain in excess of 16 years.

� Total passing rent of £1,308,241 per annum.

� Fixed increase in 2016 to £1,516,610 per annum.

� Freehold

� Our client is seeking offers in excess of £22,500,000 (Twenty Two Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 5.50%, rising to 6.37% in 2016, assuming acquisition costs of 5.80%.

4 | PC WORLD, GaLLaGheR RetaiL PaRk

LOCatiOnJunction 9 of the M6 at Wednesbury is strategically situated 4 miles to the north of the intersection with the M5 Motorway and 7.5 miles south of the intersection with the M54, between Walsall to the north and West Bromwich to the south. This part of the national motorway network, north of Birmingham, forms a crucial transport corridor due to its central positioning within the UK.

Junction 9 is located 11 miles to the north of Birmingham, 6.5 miles east of Wolverhampton, 36 miles south of Stoke-on-Trent, 51 miles to the west of Leicester and 125 miles north west of London. Bescot Stadium Station, located approximately 1 mile to the east of the property, provides a fastest journey time to London Euston of approximately 2 hours.

The M6 Motorway provides a direct link to Stoke-on-Trent, Manchester, Liverpool and the north west up to Carlisle. It also provides a link to the M54 which provides access to Shrewsbury and northern Wales. The M6 connects with the M1 Motorway approximately 37 miles to the east of J9. The M1 provides the UK’s main arterial north-south route linking the M25, London and South East with Birmingham, Nottingham, Leeds, the A1(M), the North and North East.

The M6 Motorway also connects to the M5 approximately 2 miles south of the property providing access to Worcester, West Bromwich and Bromsgrove to the south of Birmingham.

The M5 also connects to the M42 approximately 14 miles south of the property. The M42 links to the M40, providing access to Banbury and Oxford.

SituatiOnPhase 3 of Gallagher Retail Park is situated within a major concentration of retail warehousing, totalling approximately 535,000 sq ft. It is immediately adjacent to Junction 9 of the M6 Motorway and approximately 1.6 miles to the east of Wednesbury town centre.

The unit has excellent accessibility, with dedicated slip roads on Wood Green Road to the south providing access from the M6 and the local area, whilst Park Lane and Axletree Way offer access from the north.

The unit has excellent frontage to and visibility from the motorway, and is adjacent to a 185,000 sq ft IKEA Superstore and 102,000 sq ft B&Q Warehouse. Also nearby is the 52,000 sq ft Decathlon store which opened in 2010.

Phases 1 and 2 of Gallagher Retail Park, opposite the subject unit, provide approximately 164,000 sq ft of retail warehouse accommodation, with tenants including: Harveys, Furniture Village, ScS, Currys, Pizza Hut, KFC, Burger King, Next, TK Maxx, Outfit, Mamas & Papas and Boots.

WEDNESBURY

M6

M6

J9

M6

A461

Bes

co

t R

d

Broadway W

A4038

Darlaston Rd

A462Black Country New Rd

Manor House

Rd

B4

20

0

A xletree rd

Northampton

Leicester

Worcester

TelfordA1

M1

A47

M1

M69

M6

M54M42

M45

M40

M1

WOLVERHAMPTONWALSALL

WEDNESBURY

OLDBURY

REDDITCHBROMSGROVE

DUDLEY

KIDDERMINSTER

SUTTON COLDFIELD

BIRMINGHAM

SOLIHULL

A4

35

A34

A4

41

A41

A45

A38

M42

M

42

M

42

M6

A3

8(M

)

M5

M6

PhaSe 1

PhaSe 2

PhaSe 3m6

J9

PC WORLD, GaLLaGheR RetaiL PaRk | 7

DeSCRiPtiOnThe PC World store comprises a western facing stand alone retail warehouse unit extending to 30,500 sq ft, situated immediately opposite, and sharing an access road with, Phases 1 and 2 of Gallagher Retail Park. There is a Burger King restaurant pod immediately to the south.

The unit is of steel portal frame construction with brickwork and profiled metal cladding to the elevations, together with a glazed entrance lobby. The unit has been fitted out to the tenant’s specification. An eaves height of 6.5 m can accommodate a mezzanine level though one has not been installed.

The car park to the front of the unit comprises 138 spaces (including 7 designated disabled spaces), providing a ratio of 1: 221 sq ft.

The servicing area is adjacent to the northern elevation of the unit. It is accessed from Axeltree Way to the rear, which also forms the eastern boundary to the entire site and provides a link with the B&Q Warehouse and IKEA Superstore to the north.

CatChment anD DemOGRaPhiCS The subject property serves a surrounding catchment of 165,934 people within a ten minute drive time and 1,113,691 within a 20 minute drive time. (Source: Pitney Bowes Business Insight and ONS).

Demographic analysis of this population shows that the households of ‘Stable Income’ are above the national average. The percentage of those in full time employment is in line with the national average.

Drivetime (minutes) Population Number of

Households

10 Minutes 165,934 65,618

20 Minutes 1,113,691 451,277

60 Minutes 5,019,256 2,134,100

The neighbouring Ikea store draws from a larger catchment of up to an hour drive time, encompassing towns such as Stafford, Stoke-on-Trent, Coventry and Wolverhampton.

The level of car ownership is above average with 42.60% of households within a 20 minute drive time owning 1 or more vehicles.

135,000 vehicles pass the site on the M6 everyday. (Source: Department for Transport)

A detailed Catchment demographic report is available upon request.

SiteThe site extends to an area of approximately 2.5 acres (1 hectare).

GaLLaGheR RetaiL PaRk

8 | PC WORLD, GaLLaGheR RetaiL PaRk

Out OF tOWn PROViSiOn at JunCtiOn 9There is a significant retail offer in the Junction 9 vicinity including:

Gallagher Retail ParkThis is the largest retail park in the area and is situated opposite the subject property. It provides 165,000 sq ft of retail warehouse accommodation in two phases. It is owned by KKR and comprises 9 units and 3 pod units. Phase 1 has Open A1 (non food) planning consent, and tenants include: Boots, TK Maxx, Mamas & Papas, Next and Outfit. Planning consent on Phase 2 has recently been widened, with units 1-3 (Furniture Village, ScS and Harveys) being wide Bulky and unit 4 (Currys) being Open A1 non food.

As well as the main park there are also three solus units:

B&QThe nearby B&Q unit provides approximately 102,00 sq ft of retail warehouse accommodation and is owned by B&Q Properties.

DecathlonThe Decathlon unit adjacent to the subject property provides approximately 52,000 sq ft of retail warehouse accommodation and is owned by Decathlon.

ikeaThe Ikea unit provides approximately 185,000 sq ft of accommodation and is owned by Ikea Properties Investments.

eStimateD RentaL VaLueWe outline below a schedule of rents for comparable accommodation:

Scheme Town Tenant Headline Rent

Brent South Brent Cross Betta Living £59.00

Ladymead Guilford Oak Furnitureland £52.50

Fosse (South) Leicester Oak Furnitureland £45.00

Junction 27 Retail Park Leeds Betta Living £45.00

Junction 27 Retail Park Leeds Multi York £45.00

Fosse (South) Leicester Sofaworks £42.50

Purley Way Croydon Furniture Village £40.00

Orbital Swindon Outfit £39.75

Springvale Orpington Wren Kitchens £38.00

Giltbrook Nottingham Homestyle £37.50

Great Cambridge Road Enfield Sofaworks £37.50

tenuReThe property is Freehold

tenanCY anD aCCOmODatiOnThe unit is let in its entirety to DSG Retail Limited, trading as PC World, for a term of 25 years from 6th February 2006. The current passing rent is £1,308,241, equating to £42.89 per sq ft on the area of 30,500 sq ft as stated in the lease.

There is a fixed uplift in February 2016 to £1,516,610 per annum, equating to £49.72 per sq ft.

Further reviews will be upwards only to open market value.

PC WORLD, GaLLaGheR RetaiL PaRk | 9

N R

OAD

ADS ub S ta

1

2a

1

2

30

6

El

7

8

42

119 .5m

122.m5

D ING LE Y R OAD

POPLA R R OAD

AL DER R OAD

E R

OAD

Allotment Gardens

Allotment G ardens

W OOD GR EEN

44

2

5947

12

8

1

20

123

32

32

22

139

13

118124

180

1

25

37

14

13

21

2

121

34

32

39

3

1

43

191

E l S ub S ta

S urgery

20

130

35

105

2

106

40

69

6

129

45

DefB oro C onst & Met Dist B dy

Und

River Tame

T unnel

P os ts

AX

L ET R

E E W

AY

E l S ubS ta

E l S ub S ta

120.1m

145

159

167

191

179

143

161

2

Tank

147

145a

15a 9

Und

Ward Bdy

CR

B oro Const & Met Dist B dy

FF

Def

Def

Und

R iver Tame

R iver T ame

Drain

Drain

LB

FB

TCB

S helter

S he lter

T rack

T rack

P os ts

Track

P os ts

AX LE TR E E W AY

PA

RK

LAE

N

SP

MP 0.5

SP

132

154

20

13

23

30

136

S ta

125

Garage

42

126

33

25

170

E l S ub

Warehouse

7

Tank

Tank

The C hes tnut Tree(P H)

R iver Ta me

Tanks

P os ts

BES

CO

T

MO NTFO R T R OAD

DR

IVE

S LAN E Y R OAD

SL

P leck P ark

E l S ub

TennisCou rts

P utting G reen

B owling G reenCa r P ark

S ta

P layground

38

1

104

100

2

116

62

14

27

Lodge

S aldavian C ourt

31

Frede ric B ullMemorial Hall

(Son s of R est)

P avilion

P avilion

39

66

17

2

78

13

76

5

3939

a

1020

13

1418

19

29

3537

14

E l S ub S ta

747

57

59

15

13

14

16

1817

5149

9 1

2

8

56

7

3

4

41

12

10

43

11Site PLan

M6

axletree Way

axletree W

ay

J9

10 | PC WORLD, GaLLaGheR RetaiL PaRk

PLanninGThe property can be used for the sale of all goods within Class A1 provided that at least 51% of the floorspace is used primarily for the sale of bulky goods (e.g. electrical goods, furniture and furnishings, motor accessories, etc).

The floorspace can be sub-divided to create up to two units (minimum floor area of 929 sq m) and there are no limitations on hours of operation or servicing. A full planning summary is available on request.

aSSet manaGement

� Potential for subdivision and installation of mezzanine

� Consent has been widened on Phase 2 and the Currys unit now has Open A1 (non-food) consent. When this is asset managed it will increase the Open A1 offer and reduce the available bulky goods space, to the benfit of the PC World unit.

� Securing a widening of the planning use following the relaxation of other consents nearby.

tenant COVenantDSG Retail LimitedPC World is the UK’s largest retailer of computers and laptops, and is the sister company of Currys. Both companies are subsidiaries of Dixons Carphone plc, which was formed following the merger on 7th August 2014 of Dixons Retail plc and Carphone Warehouse Group plc. The new company is to joint the FTSE 100 on 22nd September with a market capitalisation of approximately £4.23 billion.

Currys and PC World currently trade from over 1,200 stores throughout the UK and Carphone Warehouse trades from 1,700 stores across Europe.

In the year ending 30th April 2013 DSG Retail Ltd had net worth of £302 million, pre-tax profit of £62 million and turnover of £3,998 million. DSG Retail Ltd has a Dun and Bradstreet rating of 5A1 indicating a minimum risk of business failure.

enViROnmentaLENVIRON’s Phase 1 Environmental Review, dated June 2010, concluded:“It is considered that there is a low risk of the site currently attracting attention of the Regulatory Authorities, or being identified as representing a significant risk to site users, or other environmental receptors, whilst in its current use.” A copy of this report is available on request.

ePC RatinG The unit has an EPC rating of B.

PC WORLD, GaLLaGheR RetaiL PaRk | 11

VatThis property has been elected for VAT purposes and therefore it is expected that the investment sale will be considered as a Transfer of a Going Concern (TOGC).

PROPOSaLOur client is seeking offers in excess of £22,500,000 (Twenty Two Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 5.50%, rising to 6.37% in 2016, assuming acquisition costs of 5.80%.

COntaCtSFor further information or to arrange an inspection please contact

Jaime Dunsterjdunster@savills.com020 7409 9929

Rachael Watsonrjwatson@savills.com020 7409 8012

Jonnie Rayjonnie@cortexpartners.co.uk020 7534 0994

tim Cuzenstim@cortexpartners.co.uk020 7534 0992

33 Margaret StreetLondon W1G 0JG

7 Cork StreetLondon W1S 3LH

CHARTERED SURVEYORS

IMPoRTaNT NoTIceSavills and Cortex Partners LLP and their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, images and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.Designed and Produced by Savills Marketing: 020 7499 8644 | September 2014