location - Wilkinson Williams

Purley Way
230/250 Purley Way
Croydon CR0 4XG
Retail Park
Prime Open A1 Non Food Consent Retail Warehouse Investment

Page 2
Purley Way Retail Park
investment summary
Purley Way
Located in the centre of one of the UK’s
premier retail warehouse locations on
Purley Way in Croydon, which serves a
wide and wealthy catchment.
Situated opposite a Sainsbury’s
superstore with in excess of one million
sq ft of out of town retail accommodation
in the vicinity. The property comprises
a purpose built retail park extending to
approximately 42,123 sq ft occupied by
Easy Living, Carpetright, Paul Simon and
Harveys.
The property benefits from an open A1
non food planning consent, with the
only restriction being against the sale of
DIY goods.
The property is let on full repairing and
insuring leases expiring in 2019-2021
at passing rents between £30.00 and
£40.00 per sq ft.
Potential opportunity to merge the estate
with the adjoining holding and develop a
new unit of up to 12,000 sq ft for which
there is good tenant interest.
Adjacent land available by seperate
negotiations.
We are instructed to seek offers in
excess of £21.59 million, subject to
contract and exclusive of VAT, which
would provide a purchaser with a net
initial yield of 6.25%, rising to 6.42% in
October 2012, assuming purchaser’s
costs of 5.7625%.

Purley Way Retail Park Page 3

Page 4 Purley Way Retail Park
location 1.0 location
A237
Croydon is a major commercial and retail centre
situated approximately 13 miles (21 kilometres) south
of Central London, with an estimated resident population
of approximately 350,000. As well as being an established
major office location, it also benefits from a strong
“in town retail” offer centred around the Whitgift Centre.
To the west of Croydon lies the A23 (Purley Way), which forms
the major arterial road leading from Junctions 7/8 of the M25 into
South and Central London. This carriageway also provides direct
access to Brighton and the South Coast.
It is estimated that approximately 157,000 people live within a
10 minute drive time of the subject property. This figure increases
to approximately 400,000 people within a 15 minute drive time
contour. As may be expected, the catchment population appears
relatively wealthy with 22.1% being classified as ‘educated
urbanities’, as opposed to a national average of 6.8%.
Wallington
Beddington Lane
Croydon Road
VALLEY RETAIL PARK
Plough Lane
Mitcham Road
Purley Way Retail Park
Beddington
A232
A23
Purley Way
Stafford Road
A235
London Road
A236
Waddon
Duppas Hill Road
Thornton
Heath
Broad
Green
Roman Way Old Town
A212
St James Road
Selhur
Croydon

m
allington
A232
A235
A23
A236
Purley Way Retail Park
Croydon
A222
Purley Way provides
a strong out of town
retail destination
where it is generally
known that the
majority of retailers
trade extremely well.
Beckenham
A214
2.0 situation
The subject property is situated in a highly prominent
position at the junction of Purley Way and Commerce
Way, at the centre of one of the strongest out of town
retail destinations in the country.
Directly opposite the subject property is a very successful
Sainsbury’s foodstore extending to approximately 69,000 sq ft,
which provides an excellent anchor to the immediate
location. In close proximity to Sainsbury’s is the Purley Way
Centre, which is occupied by TK Maxx, Mammas & Pappas,
Hobbycraft and Argos, whilst to the north of the foodstore is a
development which is being fitted out by Best Buy adjacent to
Carphone Warehouse.
To the north of the subject property is a unit occupied by
Comet, which is owned by The Prudential, together with a
number of small industrial units. This scheme benefits from
planning consent to construct up to 16,000 sq ft of retail
accommodation adjacent to the subject property.
A2022
Purley Way Retail Park
To the south of the Purley Way Retail Park are flagship stores
occupied by PC World, Toys “R” Us and Currys, whilst to the
south of this is the recently opened John Lewis at Home
extending to circa 45,000 sq ft.
Approximately a quarter of a mile to the north of the subject
property is an IKEA, together with a B&Q Warehouse and
the Valley Retail Park, which extends to approximately
130,000 sq ft, with occupiers including DFS, Mothercare,
Outfit, Next and Sports World.
Undoubtedly Purley Way provides a strong out of town retail
destination where it is generally known that the majority of
retailers trade extremely well. We estimate there is in excess
of one million sq ft of retail accommodation situated in close
proximity to the subject property.
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Page 6 Purley Way Retail Park
3.0 description 4.0 accommodation
The subject property comprises a purpose built retail
warehouse scheme extending to 42,123 sq ft
(3,914 sq m), currently divided into four units of
between 7,498 sq ft and 14,446 sq ft.
The development is of steel portal frame construction
under a steel clad pitched roof. Elevations are clad with
profile steel sheeting, with each unit benefiting from a semi
circular entrance feature.
Customer access to the scheme from Purley Way is via an
‘all ways’ traffic light controlled junction onto Commerce
Way, leading to a tarmacadam surfaced customer car park
providing approximately 104 spaces to the front and side
of the units. There is a dedicated service road leading from
Commerce Way to a concrete surfaced service yard from
where there is access to the rear of each of the units.
There is an extensive trading mezzanine within Unit 4
occupied by Harveys.
The retail park site extends to 2.51 acres (1.01 hectares).
The vendors own an adjoining cleared site, 2 Commerce
Way which extends to 0.46 acres (0.19 hectares) and can be
acquired by seperate negotiations
The scheme provides four units
totalling 42,123 sq ft.
The property provides the following approximate gross internal
floor areas:
Unit Tenant GIA (sq ft) GIA (sq m)
1 Harveys 14,446 1,342
2 Paul Simon 10,087 937
3 Carpetright 10,092 938
4 Easy Living 7,498 697
Total 42,123 3,914
The development benefits from approximately 104 customer car
parking spaces, equating to a ratio of 1:405 sq ft (1:37.67 sq m).

Furnitureland
Allied
Purley Way
Carpetright
Harveys
Commerce Way
Purley Way Retail Park
5.0 planning
The property benefits from an open A1 planning consent which
allows the sale of any non food goods, save for DIY products.
There are no specific restrictions against the installation of
mezzanine floors or in respect of any further subdivision.
6.0 tenure
The site as outlined in orange is held freehold.
The adjacent site outlined in dotted orange is held freehold.
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Page 8 Purley Way Retail Park
7.0 schedule of tenancies
The property is let on full repairing and insuring leases in accordance with the following:
Unit Tenant Area Lease Lease Next Rent Rent ERV ERV
(sq ft) Start Expiry Rent Review (per annum) (per sq ft) (per annum) (per sq ft)
1 Steinhoff UK Group Properties Ltd 14,446 24/06/2006 23/06/2021 24/06/2011 £476,700 £33.00 £476,318 £33.00
2 Paul Simon (London) Ltd (i) 10,087 02/10/2009 01/10/2019 02/10/2014 £302,610 £30.00 £342,958 £34.00
3 Carpetright plc 10,092 22/12/2006 21/12/2021 22/12/2011 £348,174 £34.50 £348,174 £35.00
4 Sofas UK plc 7,498 16/03/2009 21/12/2021 16/03/2014 £299,920 £40.00 £299,920 £40.00
Total 42,123 £1,427,404 £1,467,340
(i) Rent rises to £342,958 per annum (£34.00 per sq ft) on 02/10/2012

8.0 tenants’ covenants
We summarise the most recent accounts in respect of each of the occupying tenants:
Purley Way Retail Park
Tenant Date Turnover Pre Tax Net Worth D&B
(£’000s) Profit / Loss (£’000s) Rating
(£’000s)
Steinhoff UK Group Properties Ltd 27/06/2009 92,634 (2,950) 7,720
28/06/2008 96,460 (1,281) 8,552
Paul Simon (London) Ltd 31/05/2009 41,387 316 6,478
31/05/2008 35,062 2,301 6,265
Sofas UK Plc 01/05/2010 516,600 22,300 4,000
02/05/2009 £482,800 16,700 4,000
Carpetright Plc 01/05/2010 16,600 22,300 4,000
02/05/2009 482,800 16,700 (4,000)
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3A4
2A2
N4
2A2

Page 10 Purley Way Retail Park
9.0 rental value and evidence
There has been a considerable amount of letting activity
along Purley Way over recent years which has further
established this as one of the premier out of town retail
locations in the South East of England.
The latest lettings on the subject property were in 2009.
Paul Simon took Unit 2 (10,087 sq ft) at an initial rent of
£30.00 per sq ft, rising to £34.00 per sq ft in years four
and five. This letting was subject to a nine month rent free
period. Unit 4 (7,498 sq ft) was then let in March 2009 to
Easy Living at a rent of £40.00 per sq ft, being subject to
four months’ rent free and a £100,000 capital contribution.
Other notable transactions include the following:
The Purley Way Centre, situated directly opposite the
subject property, has been subject to two lettings in
2010. Hobbycraft took a lease in February 2010 on a
unit of 7,500 sq ft at a rent of £39.50 per sq ft, subject
to a package of incentives equivalent to 12 months’
rent. At the same time, Mamas & Papas took a lease
on a unit of 5,219 sq ft at a rent of £40.00 per sq ft,
again being subject to an incentive package
equivalent to 12 months’ rent.
Other than the intrinsic strength of
the location as a retail destination, we
believe there are a number of specific
considerations which should lead to
rental growth in the future.
In close proximity to the subject property, Best Buy are fitting
out a new store in the unit formerly occupied by Mothercare,
extending to 30,000 sq ft. Best Buy took an assignment from
Mothercare at a passing rent of £30.00 per sq ft.
In September 2010, John Lewis at Home opened a store
of 45,000 sq ft, at a rent we understand to be in the region
of £24.00 per sq ft.
The owners of the adjacent holding, which includes the
Comet store, have planning consent for an additional
unit of 12,000 sq ft adjacent to the subject property. We
understand there is good tenant interest at a rent in excess
of £35.00 per sq ft.
There is therefore considerable letting evidence establishing a
general tone of rents in excess of those which were agreed on
the subject property and this, together with the recent addition
of the anchor tenants of Best Buy and John Lewis at Home will,
we believe, provide a stimulus to further growth in the future.

Purley Way Retail Park
10.0 proposal
Page 11
Our clients are seeking offers in excess of £21.59 million
subject to contract and exclusive of VAT, which would reflect
a net initial yield to the purchaser of 6.25%, rising to 6.42% in
October 2012, assuming purchaser’s costs of 5.7625%.

9.0 rental value / asset management
location for more information please contact
Wilkinson Williams
Heathcoat House
20 Savile Row
London W1S 3PR
020 7495 4321
MISREPRESENTATION NOTICE
Wilkinson Williams LLP give notice to anyone who may read these particulars as follows:
1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to
constitute part of an offer or contract.
2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact.
3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order.
4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since
the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made
in respect of parts of the property which are not shown in the photographs.
5. Any areas, measurements or distances referred to herein are approximate only.
Miles Marten
020 7317 3777
m.marten@wilkinsonwilliams.co.uk
www.wilkinsonwilliams.co.uk
6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be
a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser.
7. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact.
8. Plans are published for convenience of identification only and although believed to be correct, their accuracy is no guaranteed and they do not form part of any contract.
Printed on 55% recycled paper
Ellie Kirkby
020 7317 3790
e.kirkby@wilkinsonwilliams.co.uk
Purley Way Retail Park | Croydon | October 2010 | Ref: 104973.003