Tops Estate PLC - Retail - Worcester, Lychgate Shopping Centre

Date: 14 Feb 2000

Tops, the specialist investor in city and town centre shopping and leisure centres, announces that, in accordance with its policy of selective investment, contracts have been exchanged for the purchase from MEPC of the Lychgate Shopping Centre in Worcester city centre, which is held freehold, together with the adjacent long leasehold parade. The total consideration of £20 million is payable in cash from the Company's resources. Completion is anticipated to take place on 8 March 2000.

The historic Cathedral city of Worcester is situated in the heart of England, within the County of Worcestershire, and has a resident population and a retail catchment exceeding 95,000 and 300,000 respectively. As a major tourist centre, the city draws over half a million visitors a year to attractions that include Worcester Cathedral, The Royal Worcester Porcelain Works, and Worcester Racecourse, all of which are located close to the city centre. According to local authority sources, Worcester is in the top four Centres in the West Midlands and is the fastest growing District in the County.

Worcester has excellent road and rail communications. Home and car ownership, population growth and employment (unemployment of 2.5% against the national average of 4%) are all above average for the city, which has an affluent catchment (ranked 30th on the PMA indicator). Employment in Worcester is provided predominantly by the service sector.

Worcester has a strong retail core with a large number of the UK's multiple retailers being represented. The Lychgate Shopping Centre, located in the High Street, is partially covered and was developed by Worcester City Council in 1969 on a mid 1960's planning consent, altered in 1985 and partially refurbished in 1993 and 1996. The Centre provides 300,000 sq ft of space and comprises 36 shops, a famous independent department store, Russell and Dorrell, The Gifford Hotel (102 bedrooms), a 26,000 sq ft Sainsbury's, and a multi-storey NCP car park. Immediately adjacent at the rear of the Centre, a Warner Village is currently being constructed to provide a 7 screen cinema with ancillary restaurants. Retailers include BT Country Casuals, Edinburgh Woollen Mills, Famous Army Stores, Jaeger, Lunn Poly Travel, Monsoon, Miss Selfridge, Thorn tons, Top Shop, Top Man.

Net rents receivable amount to £1.6 million, with approximately 60 per cent of the current income arising from leases to national and regional multiple covenants, with over 10 years unexpired.

The Board believes the Centre has very considerable growth opportunities. Adam Cohen, a Director, stated "We are confident that the Lychgate Shopping Centre in Worcester - like other Tops-owned shopping centres such as Leeds Shopping Plaza and Clayton Square Shopping Centre in Liverpool - will become a fashion and lifestyle centre following the combination of reconfiguration, extension, upgrading of facilities and improvement in tenant mix that are Tops' hallmark."

DTZ Debenham Tie Leung Jones Lang LaSalle acted for the purchaser and the vendor.

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