BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE

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BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Blue Oaks
Portfolio
A Portfolio oF six retail and fOUR industrial units across the uK
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary        Property Locations      Tenancy Schedule         The Properties        PROPOSAL & Contacts

Investment Summary

n Unique opportunity to acquire a well secured and diverse           Strong underlying income, with asset management
                                                                    n	
  portfolio of high street retail and industrial assets.              opportunities.

  10 properties geographically spread throughout England
n	                                                                   All the retail properties occupy prominent, high street
                                                                    n	
  and Wales, with approximately 50% of the income derived             positions in busy and affluent towns.
  from properties in the south of England.
                                                                    n All the industrial properties are well positioned in
  Portfolio comprises approximately 131,277 sq ft.
n	                                                                   established trading locations, let to tenants committed
                                                                      to the area.
  Fully let with no vacancies.
n	
                                                                      AWULT of 6.15 years (5.06 years to breaks).
                                                                    n	
  Let on full repairing and insuring terms to a good mix of
n	
  strong covenants including Waterstones, Wilko, EE, Kuoni            Total current rent of £1,123,410 per annum; 47%
                                                                    n	
  Travel Ltd, BSS plc and Sealed Air Limited.                         from the retail and 53% from the industrial.

  9 6.4% of current income is secured from tenants who are
n	                                                                    ffers in excess of £14,600,000 (Fourteen Million,
                                                                    n O
  classified by Dun & Bradstreet as having a ‘minimum’ or             Six Hundred Thousand Pounds) subject to contract
  ‘lower than average’ risk of business failure.                      and exclusive of VAT.

  Eight freehold, one virtual freehold and one long leasehold
n	                                                                 n Attractive net initial yield of 7.27%, assuming
  (120 years unexpired).                                              purchaser’s costs of 5.80%.

                                                                2
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary           Property Locations            Tenancy Schedule   The Properties               PROPOSAL & Contacts

Property Locations

      INCOME BY REGION                             High Street Retail
                                                   1. Bedford
                                                   2. Chester
                                                   3. Scarborough
        NE 16%            SE 19%                   4. St Albans
                                                   5. Swansea

 NW 10%                                            6. Taunton

 WALES
  7%
                                                   Industrial
                             SW 30%                7. Bristol
                                                                                                                                    3
      Midlands                                     8. Farnborough
         18%
                                                   9. Kettering                                                           10
                                                   10. Normanton
                                                                                                                2

 £1,123,410                                        131,277 sq ft                                                            9
                                                                                                                                    1
 Total current rent per annum                      Total area

 6.15 years                                        96.4%                                                5                               4

                                                                                                                    7
                                                                                                                                8
 Average weighted unexpired lease term to expiry   Income from D&B ‘minimum’
                                                   or ‘low risk’ covenants                                  6

 47% / 53%
 Income from retail / industrial

                                                                           3
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary                         Property Locations                    Tenancy Schedule                         The Properties                   PROPOSAL & Contacts

Tenancy Schedule
                                                                     Area sq ft     Start       Break         Next          Expiry         Years     Current        Rent per
Property      Address               Postcode   Tenant                 NIA/GIA       Date        Date       Review Date       Date      Unexpired        Rent    Zone A / sq ft   Comments

                                               Waterstones
Bedford       11/13 Silver Street   MK40 1SY                             4,838    3-Jan-14         -               -       2-Jan-19         3.78     £86,000           £71.56    Recent renewal - no rent free granted.
                                               Booksellers Ltd

                                                                                                                                                                                 18 months rent free - vendor to top
Chester       8 Eastgate Street     CH1 1LE    Kuoni Travel Ltd            965    23-Oct-14    22-Oct-19       23-Oct-19   22-Oct-24        9.59      £70,000         £139.82    up. 6 months notice on break and
                                                                                                                                                                                 penalty of £35,000.

                                                                                                                                                                                 Under offer for 5 year term. See
                                               Under offer to
              6 Eastgate Row        CH1 1LE                               2,064      tbc           -               -                                 £40,000           £69.85    property details. Vendor to top up to
                                               Aslan Jewellery Ltd
                                                                                                                                                                                 £40,000 pa.

                                               Waterstones                                                                                                                       Recent renewal - no rent free granted.
Scarborough   97/98 Westborough     YO11 1LD                              5,229   5-Feb-15     4-Feb-20        5-Feb-20    4-Feb-25         9.87      £92,500          £66.88
                                               Booksellers Ltd                                                                                                                   6 months notice on break - no penalty.

                                                                                                                                                                                 Lease on assignment from Phones 4U
St Albans     37 Market Place       AL3 5DL    EE Ltd                     2,102   17-Sep-06        -               -       16-Sep-16        1.48      £75,000         £135.36    Ltd. Landlord in negotiations for lease
                                                                                                                                                                                 extension.

Swansea       8 Union Street        SA1 3EE    Shoe Zone Ltd              1,817   25-Mar-06    25-Mar-16       25-Mar-16   24-Mar-21        6.00      £74,000         £120.72    6 months notice on break - no penalty.

Taunton       61 East Street        TA1 3LX    Wilko Retail Ltd           3,229   31-July-06       -           31-Oct-15   31-Oct-25       10.61      £92,250          £79.51

              BSS Group,
Bristol                             BS2 0BS    BSS Plc                   39,527   1-Dec-95         -           1-Dec-15    30-Nov-20        5.69    £250,000            £6.32    Virtual freehold - see property details.
              Albert Reach

              21/21a                           Triumph Structures                                                                                                                Long leasehold at peppercorn - see
Farnborough                         GU14 7QU                            20,357    12-Oct-06        -               -       11-Oct-16        1.55     £136,660           £6.71
              Invincible Road                  Farnborough Ltd                                                                                                                   property details.

              Sealed Air Unit,
Kettering                           NN16 8UN   Sealed Air Ltd           30,506    19-Nov-03        -               -       18-Nov-18        3.65     £119,000           £3.90
              Telford Way

              Unit D1                          Acorn Web Offset                                                                                                                  Tenant paying half rent (£44,000 pa)
Normanton                           WF6 1TW                             20,643    25-Oct-13        -           25-Oct-18   24-Oct-28       13.59     £88,000            £4.26
              Loscoe Close                     Ltd                                                                                                                               until April 2016. Vendor to top up.

Total                                                                  131,277                                                                     £1,123,410

                                                                                                           4
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary          Property Locations                   Tenancy Schedule                The Properties                PROPOSAL & Contacts

The Properties

   1                           2                                    3                               4                                    5

         11/13
         11/13 Silver Street
               Silver Street   8 Eastgate
                               8 Eastgate Street
                                          Street &
                                                 &66 Eastgate
                                                     Eastgate Row
                                                              Row          97-98
                                                                           97-98 Westborough
                                                                                 Westborough                37
                                                                                                            37 Market
                                                                                                               Market Place
                                                                                                                      Place                      8
                                                                                                                                                 8 Union
                                                                                                                                                   Union Street
                                                                                                                                                         Street
       Bedford, MK40 1SY              Chester, CH1 1LE                  Scarborough, YO11 1LD            St Albans, AL3 5DL                    Swansea, SA1 3EE

   6                           7                                    8                               9                                   10

          61 East Street            BSS Group, Albert Road                 21/21a Invincible Road       Sealed Air Unit, Telford Way         Normanton Industrial Estate
       Taunton, TA1 3LX              Bristol, BS2 0BS                   Farnborough, GU14 7QU           KETTERING, NN16 8UN                  Normanton, WF6 1TW

                                                                                   5
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary   Property Locations   Tenancy Schedule   The Properties         PROPOSAL & Contacts

1. W
    aterstones
  11/13 Silver Street, Bedford, MK40 1SY                                                                                1 of 4

                                                                            Investment Summary
                                                                              Prime retail investment opportunity.
                                                                            n	

                                                                              Freehold.
                                                                            n	

                                                                              Well configured retail accommodation,
                                                                            n	
                                                                              arranged with sales at ground and
                                                                              first floors.

                                                                              Total area of 4,838 sq ft NIA.
                                                                            n	

                                                                            n	Let to Waterstones Booksellers Limited
                                                                               from 3rd January 2014, expiring 2nd
                                                                               January 2019 (3.75 years unexpired).

                                                                              Re-based passing rent of £86,000 per
                                                                            n	
                                                                              annum (£71.56 per sq ft Zone A).
                                                                              Waterstones have been in occupation
                                                                            n	
                                                                              since 1998.

                                                       6
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary                                    Property Locations              Tenancy Schedule                    The Properties            PROPOSAL & Contacts

                                                                                                                                                                                                   2 of 4

                                               A14                 Cambridge
                                                                                 Location
                                       Wellingbourne
                                                                                 Bedford is an attractive and affluent market                 Reflecting the demographic profile and spending
              A 43
                                     A6                   A1                     town, located approximately 50 miles north of                habits of the catchment population, per capita retail
                   Northampton                                                   London and 10 miles east of Milton Keynes.                   spending levels are significantly above the PROMIS
                          A426
                                               A421                              It is strategically located 9 miles to the north             average (Source: PROMIS/CACI - 2013).
                                               Bedford
                                                                                 east of the M1 (Junction 13) and 7 miles to the west
             A5      M1                                                          of the A1.                                                   Estimated prime rents in Bedford are circa
 A43
                                            A10
                                                             A1
                                                                                                                                              £75 per sq ft Zone A, approximately 30% below
                                                                                 By rail, Bedford has a regular service to London             their pre-recession peak of £105 per sq ft Zone A.
       A421
                                                             A1M                 (Blackfriars) and London (St Pancras). The fastest
                                                   Hitchin
                                                                                 journey time to St Pancras is approximately 34 minutes.
                          Leighton                Luton
       A41
                          Buzzard                                                The total population within the Bedford primary
                                                                                 catchment area is 310,000, which is significantly above
M40                                                                        M11
                                                                                 the Average Town average and ranks the town 84th
                  A4010
                                                                                 out of the PROMIS Centres.
                                         M25

                                                  London

                                                                                                             7
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary                   Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

                                                                                                                                 3 of 4

Situation
The property is situated on Silver Street, the prime retail
location, on the pedestrianised section between Primark
and Debenhams, and opposite Beales Department Store.

Other nearby tenants include Marks & Spencer, BHS,
Boots, Next and River Island.

Description
The subject property is a prominent, double-fronted
unit, arranged with sales at ground and first floors
(via a prominent customer staircase), and ancillary
accommodation on the second floor.

The property benefits from loading via the rear yard,
off Hawes Court, and a hoist lift from ground to
first floor. A reciprocal right of escape exists between
the subject property and 9 Silver Street (Thomas Cook)
at first floor level.

The property comprises the following net internal areas:
                                                               PR

                                                                                                                                 N
                                                               IM A
                                                                RK

Floor            Use                      Sq Ft      Sq M
Ground           Sales                    1,891      175.7
Ground           ITZA                     1,035      96.2
Ground           Ancillary                155        14.4
First            Sales                    1,426      132.5
First            Ancillary                167        15.5
Second           Ancillary                1,199      111.4
Total                                     4,838      449.5

                                                                              8
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                            4 of 4

                                                                   Tenure
                                                                   Freehold.

                                                                   Tenancy
                                                                   The property is let to Waterstones Booksellers Limited,
                                                                   on a full repairing and insuring lease, for a term of 5
                                                                   years from 3rd January 2014, expiring 2nd January 2019
                                                                   (3.75 years unexpired). This was achieved by way of a
                                                                   lease renewal with no tenant incentives.

                                                                   The current rent passing is £86,000 per annum which
                                                                   equates to £71.56 per sq ft Zone A.

                                                                   Covenant Strength
                                                                   Waterstones was acquired by A&NN Capital Fund
                                                                   Management (owned by Russian billionaire Alexander
                                                                   Mamut) in June 2011, from HMV Group for £53 million.
                                                                   Waterstones has recently commenced a programme of
                                                                   refurbishment across its estate. Improvements include:
                                                                   creating Wi-Fi hot spots, new cafés within stores and
                                                                   establishing a new staff training programme.

                                                                   The Dun & Bradstreet rating of N2, indicates a financial
                                                                   strength which is ‘negative’ but a ‘lower than average’
                                                                   risk of business failure.

                                                                   Summary account information over the last 3 years
                                                                   is shown below:
                                                                                                  27 April    28 April   30 April
                                                                                                     2013        2012       2011
                                                                    Turnover (£’000’s)             398,464    410,354     477,424

                                                                    Pre-Tax Profit (£’000’s)       (23,046)   (37,314)   (20,597)

                                                                    Net Worth (£’000’s)            (14,179)     8,864      51,676

                                                                   EPC
                                                                   Rating: D(95)
                                                 9
BLUE OAKS PORTFOLIO A PORTFOLIO OF SIX RETAIL AND FOUR INDUSTRIAL UNITS ACROSS THE UK - CAPITA REAL ESTATE
Investment Summary   Property Locations   Tenancy Schedule   The Properties         PROPOSAL & Contacts

2. Kuoni +‘Row Level’ Unit (Under Offer)
   8 Eastgate Street and 6 Eastgate Row, Chester, CH1 1LE                                                            1 of 4

                                                                           Investment Summary
                                                                             Prime retail investment opportunity.
                                                                           n	

                                                                             Two retail units (Street and Row level)
                                                                           n	
                                                                             in historic Chester City Centre, arranged
                                                                             with sales at ground and first floors.

                                                                             Total area of 3,029 sq ft NIA.
                                                                           n	

                                                                             8 Eastgate Street is let to Kuoni Travel
                                                                           n	
                                                                             Limited on a new 10 year lease from 23rd
                                                                             October 2014, expiring 22nd October
                                                                             2024 (9.5 years unexpired), subject to a
                                                                             tenant break option in October 2019.

                                                                             Re-based passing rent of £70,000 per
                                                                           n	
                                                                             annum (£139.82 per sq ft Zone A).

                                                                             6 Eastgate Row is under offer to Aslan
                                                                           n	
                                                                             Jewellery Limited on a stepped rent at an
                                                                             average of £40,000 per annum (£69.85
                                                                             per sq ft Zone A).

                                                                             Potential asset management on second
                                                                           n	
                                                                             and third floors.

                                                      10
Investment Summary                                             Property Locations                Tenancy Schedule                    The Properties             PROPOSAL & Contacts

                                                                                                                                                                                                               2 of 4

                       Blackpool

                                                              A14                   Burnley   Location
                                    Preston
                                                         Blackburn                   A14
                                                                                              Chester is an affluent, historic Cathedral City, located in   Chester City Centre is an important tourist destination
                                         A14             M65                 A14              the North West, approximately 40 miles south east of          attracting over 8 million visitors per annum (2011),
                                                                                              Manchester and 25 miles south of Liverpool. Junction          boosting spending within the city. In 2013, Cheshire
                                    A14        M6                             M56             12 of the M53 motorway is situated 3 miles to the east        West and Chester attracted 29 million visitors with
                                                                    Bolton          M62       of the city centre and provides access to the M56 and         an economic impact (visitor spend) of £1.5 billion.
                     A14
                                         M58                                                  wider motorway network.                                       Specific attractions include; Chester Cathedral, Chester
                                                                                    M60
                                                                                                                                                            Racecourse and Chester Zoo, which was voted the most
                                                                               Manchester
                                                                                              The City benefits from a direct rail service to London        visited large attraction in England outside London in
                                           St Helens
                                                M62
                                                                                              (Euston) with a journey time of approximately 2 hours.        2013 and 2014 (1.4 million visitors). Source: Marketing
                      Liverpool                   WarringtonM6
                                                                             M56
                                                                                              The total population within the Chester primary               Cheshire.
                    M53
                                                                                              catchment area is 804,000, ranking it 15th out of the         Prime rents are estimated at £220 per sq ft Zone A in
                                          M56
       A55                                  Kingsley Norwich
                                                                                              PROMIS Centres.                                               Chester, approximately 5% above their pre-recession
                                                       A49
                                                                                              Per capita retail spending levels are comparable with         peak of £210 per sq ft Zone A.
  Cilcain               Chester                              Winsford
                                               A51
             A494      A55                                                                    the PROMIS average, reflecting the demographic profile
                    Hope   A483
                                                        A51         Crewe
                                                                                              and spending habits of the catchment population
A494                              A453                                                        (Source: PROMIS/CACI - 2013).

                                                                                                                           11
Investment Summary                 Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

                                                                                                                                3 of 4

Situation
The property is a highly prominent, prime unit situated
at ‘The Cross’, where Eastgate Street intersects with
Northgate Street, Bridge Street and Watergate Street.

The property has an Eastgate Street frontage and is
directly opposite Northgate Street. Other nearby tenants
include H Samuel, Cath Kidston, Jack Wills, Zara and Gap.

Description
The subject property is an attractive, Grade II listed,
building arranged as two units; Street and Row level.

The Street level unit is a self-contained retail unit at
lower ground floor level with staff and ancillary space to
the rear. The Row level unit provides sales space at first
floor with two upper floors of ancillary accommodation.

Reciprocal rights of emergency escape exist at Row Level
between the subject property and the neighbouring
units (4&8 Eastgate Row).
                                                                                                                                N
Better utilisation of the second and third floor could be
made in conjunction with the adjoining properties and
the incoming tenant.

The property comprises the following net internal areas:

Floor                        Use         Sq Ft     Sq M
Ground (8 Eastgate Street)   Sales       832       77.3
Ground (8 Eastgate Street)   Storage     133       12.4
Ground (8 Eastgate Street)   ITZA        494       45.9
First (6 Eastgate Row)       Sales       893       83.0
First (6 Eastgate Row)       ITZA        533       49.5
Second (6 Eastgate Row)      Ancillary   415       38.5
Third (6 Eastgate Row)       Ancillary   756       70.2
Total                                    3,029     281.4

                                                                             12
Investment Summary   Property Locations   Tenancy Schedule                     The Properties                   PROPOSAL & Contacts

                                                                                                                                       4 of 4

                                              Tenure
                                              Freehold.

                                              Tenancies
                                              8 Eastgate Street is let to Kuoni Travel Limited, on an effective full repairing and insuring
                                              lease, for a term of 10 years from 23rd October 2014, expiring 22nd October 2024 (9.5 years
                                              unexpired). The tenant benefits from a break option on 23rd October 2019 on six months
                                              notice and a penalty payment equivalent to six months rent.

                                              The current rent passing is £70,000 per annum, which equates to £139.82 per sq ft Zone A.
                                              The tenant was given 18 months rent free which the vendor will top up.

                                              6 Eastgate Row is currently under offer to Aslan Jewellery Limited for a 5 year term (subject
                                              to a mutual break option on the 4th anniversary). The agreed stepped rent is as follows:
                                              Year 1 - £35,000 pa         Year 3 - £40,000 pa     Year 5 - £45,000 pa.
                                              Year 2 - £37,500 pa         Year 4 - £42,500 pa.

                                              The vendor proposes to provide a rental top up to £40,000 per annum.

                                              Covenant Strength
                                              Kuoni Travel Limited is a UK based tourism company founded in Switzerland in 1906. In
                                              2013, the Kuoni Group was named “World’s Leading Luxury Tour Operator” at the annual
                                              World Travel Awards.

                                              The Dun & Bradstreet rating of N1, indicates a financial strength which is ‘negative’
                                              but a ‘minimum risk’ of business failure.

                                              Summary account information over the last 3 years is shown below:

                                                                                        31 Dec       31 Dec         31 Dec
                                                                                          2013         2012           2011
                                               Turnover (£’000’s)                       293,125      287,062       300,032

                                               Pre-Tax Profit (£’000’s)                 (3,847)      (7,905)        (6,378)

                                               Net Worth (£’000’s)                     (16,643)      (17,591)      (18,354)

                                              EPC
                                              Rating: 8 Eastgate Street – C (74); 6 Eastgate Row – E (107).
                                                 13
Investment Summary   Property Locations   Tenancy Schedule   The Properties          PROPOSAL & Contacts

3. Waterstones
   97-98 Westborough, Scarborough, YO11 1LD                                                                          1 of 4

                                                                           Investment Summary
                                                                             Prime freehold retail investment
                                                                           n	
                                                                             opportunity.

                                                                             Well configured retail accommodation,
                                                                           n	
                                                                             arranged with sales at ground and first
                                                                             floors and ancillary space at second floor.

                                                                           n Total area of 5,229 sq ft NIA.

                                                                             New 10 year lease to Waterstones
                                                                           n	
                                                                             Booksellers Limited from 5th February
                                                                             2015, expiring 4th February 2025, subject
                                                                             to a tenant break in year 5.

                                                                             Re-based passing rent of £92,500 per
                                                                           n	
                                                                             annum (£66.88 per sq ft Zone A).

                                                      14
Investment Summary                                          Property Locations                   Tenancy Schedule                  The Properties              PROPOSAL & Contacts

                                                                                                                                                                                                                    2 of 4

                        A688              Midlesborough
                                                                                                   Location
            A56
                               A1M
                                                            A171
                                                                                                   Scarborough is an attractive seaside town, located          Scarborough has a high quality of retail provisions
                         A66
                                 Darlington               Danby                                    approximately 46 miles north of Hull and 45 miles           compared to the size of the town, in part due to the
                    Richmond
                                                                          A171                     north-east of Leeds. It is located on the north Yorkshire   significant tourist and visitor numbers attracted to the
                                                  Kirbymoorside
                                                                                                   coast and is accessed by four A roads, including the A171   area.
                                                  A170             A170          Scarborough
                                                                                                   Moor Road.
                                                                     A64
                                                                                    Flamborough                                                                In 2012, it was estimated that 7.8 million tourist day and
                                                                   Malton
                         Harrogate        A1M        York
                                                                                     Bridlington   By rail, Scarborough is at the eastern end of the           overnight trips were made to Scarborough, spending
                             A59
                                                             Pocklington
                                                                                                   Transpennine Express with Liverpool at the western          over £470 million, directly benefiting local business,
                                                                                 Hornsea
                                                                    A614
                                                                             A1035
                                                                                                   end. There are intermediate stops at York, Leeds and        cafes, shops and attractions in Scarborough. (Source:
      M65
                                     Leeds                            Beverley
                                                                                   Albrough        Manchester, all with interconnecting train services to      Discover Yorkshire Coast)
                  Bradford
                                      M62
                                                                                   Hull            London.
                                                                                                                                                               Per capita retail spending levels are comparable with
                  M62
M61                     Huddersfield                                                                The total population within the Scarborough primary         the PROMIS average, reflecting the demographic profile
                                     M1             A1M
                                                                                                   catchment area is 147,000, ranking the town 162 out of      and spending habits of the catchment population
      M60
                  Manchester
                                                                                                   the PROMIS Centres.                                         (Source: PROMIS/CACI - 2013).
M56                             Sheffield
                                             M1                                                                                                                Estimated prime rents in Scarborough are £65-£70 per
                                                                                                                                                               sq ft Zone A, approximately 35% below their pre-
                                                                                                                                                               recession peak of £100 per sq ft Zone A.

                                                                                                                               15
Investment Summary                 Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

                                                                                                                               3 of 4

Situation
The property is situated on the pedestrianised section
of Westborough, the towns prime retail location,
opposite the Brunswick Shopping Centre anchored by
Debenhams, Next and Poundland.

Other nearby tenants include Boots, WH Smith, Next,
Specsavers, Halifax and Poundland.

Description
The subject property is a prominent, double-fronted
unit, arranged with sales at ground and first floors,
via a prominent customer staircase, and ancillary
accommodation on the second floor.

The property benefits from a lift from ground to second
floor and the following net internal areas:

Floor           Use                     Sq Ft      Sq M
Ground          Sales                   2,209      205.3
Ground          ITZA                    1,198      111.3                                                                       N
First           Ancillary (A/12)        1,880      174.7
Second          Ancillary (A/40)        1,140      105.9
Total                                   5,229      485.9

                                                                            16
Investment Summary   Property Locations   Tenancy Schedule               The Properties              PROPOSAL & Contacts

                                                                                                                                  4 of 4

                                                             Tenure
                                                             Freehold.

                                                             Tenancy
                                                             The property is let to Waterstones Booksellers Limited, on a full repairing
                                                             and insuring lease, for a term of 10 years from 5th February 2015, expiring
                                                             4th February 2025. This was achieved by way of a lease renewal with
                                                             no tenant incentives. The tenant benefits from a break option on 4th
                                                             February 2020, on six months notice.

                                                             The current rent passing is £92,500 per annum which equates to £66.88
                                                             per sq ft Zone A.

                                                             We understand Waterstones have been in occupation since 1998.

                                                             Covenant Strength
                                                             Waterstones was acquired by A&NN Capital Fund Management (owned
                                                             by Russian billionaire Alexander Mamut) in June 2011, from HMV Group
                                                             for £53 million. Waterstones recently commenced a programme of
                                                             refurbishment across its estate. Improvements include: creating Wi-
                                                             Fi hot spots, new in-store cafés and establishing a new staff training
                                                             programme.

                                                             The Dun & Bradstreet rating of N2, indicates a financial strength which is
                                                             ‘negative’ but a ‘lower than average’ risk of business failure.

                                                             Summary account information over the last 3 years is shown below:

                                                                                          27 April   28 April   30 April
                                                                                             2013       2012       2011
                                                              Turnover (£’000’s)          398,464    410,354     477,424

                                                              Pre-Tax Profit (£’000’s)    (23,046)   (37,314)   (20,597)

                                                              Net Worth (£’000’s)         (14,179)     8,864      51,676

                                                             EPC
                                                             Rating: D(80)
                                                 17
Investment Summary   Property Locations   Tenancy Schedule   The Properties         PROPOSAL & Contacts

4. EE
   37 Market Place, St Albans, AL3 5DL                                                                                 1 of 4

                                                                           Investment Summary
                                                                             Prime retail investment opportunity.
                                                                           n	

                                                                             Freehold.
                                                                           n	

                                                                             Prominent, well configured retail
                                                                           n	
                                                                             accommodation, arranged with sales at
                                                                             ground floor and ancillary accommodation
                                                                             at first and second floors.

                                                                             Total area of 2,102 sq ft NIA.
                                                                           n	

                                                                             Let to the national covenant of EE Limited
                                                                           n	
                                                                             by way of assignment on a lease expiring
                                                                             17th September 2016 (1.5 years unexpired).

                                                                             Passing rent of £75,000 per annum
                                                                           n	
                                                                             (£135.56 per sq ft Zone A).

                                                                             Discussions regarding a lease extension
                                                                           n	
                                                                             with the tenant are in hand, further
                                                                             information on request.

                                                      18
Investment Summary                                      Property Locations                 Tenancy Schedule                   The Properties               PROPOSAL & Contacts

                                                                                                                                                                                                   2 of 4

                                                                               Location
                                                                               St Albans is an attractive and affluent historic town,        St Albans has a high level of retailer demand for a
                                                                               with city status, located approximately 20 miles north        town of its size and status. The city is ranked 17th of all
                                                                               of London. It is strategically located 9 miles to the north   PROMIS Centres throughout the UK by number of retail
                                                                               east of the M1 (Junction 13) and 7 miles to the west of       requirements (Source: PROMIS/EGI - Jan 2015).
                                                                               the A1.
                                              A1                                                                                             At mid 2014, estimated prime rents in St Albans were
                                                                               By rail, London (Blackfriars) can be accessed in              £135 per sq ft Zone A. This is equal to the pre-recession
                                 A6
                                              A1M                              approximately 27 minutes, with stopping points of St          peak which compares favourably to the PROMIS 200
                                                   Stevenage                   Pancras, Farringdon and City Thames Link, making St           Towns average which remains 28.7% below the pre-
A 41                      A5
                                      Luton
                                                                               Albans an extremely popular commuter town.                    recession peak.
                                         Welwyn
                                         Garden                         M11
                               M1         City
                                                     A10                       The St Albans catchment population is one of the most
                                                     Hatfield
                   A 41
                                              St Albans
                                                               Harlow
                                                                               affluent of the PROMIS catchments, ranking 4th of the
                                                          A503
       A4010    A413
                                                                               PROMIS centres, with per capita retail spending levels
                           M25
                               Watford
                                                    Enfield                     significantly above the PROMIS average.
                                                                         M25
          M40                                      A1

                                          A406 London

                                                                                                            19
Investment Summary                 Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

                                                                                                                               3 of 4

Situation
The property is prominently situated on the corner of
Market Place and Spencer Street, at the start of St Peters
Street. In addition, it provides access to Christopher Place.

Market Place boast several boutique retail units,
including Champneys, Reiss, White Stuff and Jack Wills.

Further along St Peters Street are many large format
national brands including, Boots, H&M and Marks &
Spencer.

Description
The subject property is a prominent retail unit, arranged
with sales at ground floor with first and second floors
providing ancillary accommodation.

The property benefits from a return frontage to
Spencer Street.

The property comprises the following net internal areas:
                                                                                                                               N

Floor            Use                      Sq Ft    Sq M
Ground           Sales                    846      78.57
Ground           ITZA                     504      46.79
First            Ancillary                730      67.83
Second           Ancillary                526      48.83
Total                                     2,102    195.23

                                                                            20
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                              4 of 4

                                                                  Tenure
                                                                  Freehold.

                                                                  Tenancy
                                                                  Let to EE Limited on assignment of a full repairing and
                                                                  insuring lease, expiring 16th September 2016 at a rent of
                                                                  £75,000 per annum (£135.56 per sq ft Zone A).

                                                                  The property was previously occupied by Phones 4 U
                                                                  Limited who went into administration in September 2014.

                                                                  The landlord is in discussions with EE regarding a lease
                                                                  extension for an additional 5 year term extending
                                                                  the expiry to September 2021. Further information is
                                                                  available on request.

                                                                  Covenant Strength
                                                                  EE Limited was launched in April 2010 following the
                                                                  merger of T-Mobile and Orange, and boasts in excess
                                                                  of 30 million customers, 16,500 staff and a turnover of
                                                                  almost £6.5bn.

                                                                  The Dun and Bradstreet rating of N1, indicates a financial
                                                                  strength which is ‘negative’ but a ‘minimum’ risk of
                                                                  business failure.

                                                                  Summary account information over the last 3 years is
                                                                  shown below:
                                                                                                    31 Dec      31 Dec      31 Dec
                                                                                                      2013        2012        2011
                                                                    Turnover (£’000’s)            6,482,000   6,657,000   6,784,000

                                                                    Pre-Tax Profit (£’000’s)      (101,000)   (249,000)   (113,000)

                                                                    Net Worth (£’000’s)           (661,000)   (179,000)      2,000

                                                                  EPC
                                                                  Rating: D(91)
                                                 21
Investment Summary   Property Locations   Tenancy Schedule   The Properties         PROPOSAL & Contacts

5. Shoe Zone
  8 Union Street, Swansea, SA1 3EE                                                                                 1 of 4

                                                                          Investment Summary
                                                                            Well located retail investment
                                                                          n	
                                                                            opportunity.

                                                                          n Freehold.

                                                                            Well configured retail accommodation,
                                                                          n	
                                                                            arranged with sales at ground floor and
                                                                            ancillary at first floor.

                                                                            Total area of 1,817 sq ft NIA.
                                                                          n	

                                                                            Let to Shoe Zone Retail Limited expiring
                                                                          n	
                                                                            24th March 2021 (6 years unexpired),
                                                                            subject to a tenant break option on
                                                                            25th March 2016.

                                                                            National covenant with a D&B rating
                                                                          n	
                                                                            of 5A2.

                                                                            Passing rent of £74,000 per annum
                                                                          n	
                                                                            (£120.72 per sq ft Zone A).

                                                     22
Investment Summary                                                Property Locations                 Tenancy Schedule                  The Properties            PROPOSAL & Contacts

                                                                                                                                                                                                                 2 of 4

                                                                                            M6
                                                                                                   Location
                       A470                                                                        Swansea is the second largest city in Wales, situated in   Swansea City Centre comprises approximately 1.65
                              A483
                                                                              M5
                                                                                                   Glamorgan on the south coast and lies approximately        million sq ft of retail accommodation, of which the
                                                                                                   35 miles west of Cardiff.                                  Quadrant Shopping Centre accounts for circa 300,000
                                                      A49
                                                                                                                                                              sq ft, anchored by Debenhams, the only department
                                                                                                   By road, Swansea is readily accessible from the M4         store in the city. In 2014, the Quadrant Shopping Centre
                                                                   M50
       A483             A40
                                             A65                                            A429
                                                                                                   motorway being located just a few miles south of           attracted over 10.5m visitors.
 A40                                                                                               junctions 44 to 47. By rail, Swansea benefits from a
A48
  M4
        Pontardawe            A465                                                                 regular service from Cardiff (55 minutes) and a direct     Estimated prime rents in Swansea are £100 per sq ft
                               Blackwood
                                                   Chepstow        M5
                                                                                A429
                                                                                                   service to London (Paddington) in approximately 3          Zone A, approximately 37.5% below their pre-recession
          Swansea                                                                                  hours.                                                     peak of £160 ZA.
                               M4           Newport                           M4
                               Cardiff                                                             The total population within the Swansea primary
                              Barry
                                                      A38                                          catchment area is 542,000, significantly above the Sub
                                                                          A350
                                                                                                   Regional Centre average and ranking the town 31st out
                                            M5                                 Warminster
                                                         Wells
                                                                  A361                             of the PROMIS Centres (Source: PROMIS/CACI - 2013).
                                                   A39

                                             Glastonbury
              A361
                                                            Yeovil
                                           A303
        A377                                                     Dorchester
                          M5

              Exeter

                                                                                                                               23
Investment Summary                         Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

                                                                                                                                            3 of 4

Situation
The property is situated on the pedestrianised section
of Union Street at the western end of Oxford Street,
Swansea’s prime retail pitch.

Union Street is Swansea’s second major shopping street,
linking Oxford Street with the Quadrant Shopping
Centre. The Queens Arcade (north) entrance to the
Quadrant has the highest footfall of the four entrances.

Union Street also benefits from an entrance to the
popular covered market, which is currently under
refurbishment.

Other nearby tenants includes NatWest, Waterstones,
F Hinds Jewellers, Vodafone, Virgin Media and
Burger King.

Description
The subject property is arranged with ground floor
sales and first floor storage accommodation. There is an
outside structure at the rear of the ground floor which
is used as additional storage.

A reciprocal right of escape exists between the subject
property and 7 Union Street (adjacent) at ground floor
level.

The property comprises the following net internal areas:

 Floor                Use                            Sq Ft       Sq M
                                                                                                                                            N
 Ground               Sales                          1,217       113.06
 Ground               ITZA                           583         54.16
 Ground               External rear store            184         17.09
 First*               Ancillary                      600         55.74
 Total                                               1,817       168.80

*Following tenant works in 2006 the tenant has extended the first floor
 by a further 520 sq ft.

                                                                                         24
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                         4 of 4

                                                                   Tenure
                                                                   Freehold.

                                                                   Tenancy
                                                                   The property is let to Shoe Zone Limited on a full
                                                                   repairing and insuring lease, for a term of 15 years
                                                                   from 25th March 2006, expiring 24th March 2021 (6 years
                                                                   unexpired).

                                                                   The current rent passing is £74,000 per annum,
                                                                   reflecting £120 per sq ft Zone A.

                                                                   There is a tenant break option on 25th March 2016 on six
                                                                   months notice.

                                                                   Covenant Strength
                                                                   Shoe Zone has over 500 stores within the UK
                                                                   and Republic of Ireland, employing approximately
                                                                   4,000 staff.

                                                                   Shoe Zone Retail Ltd has a Dun & Bradstreet rating of
                                                                   5A2. Summary account information over the last 3 years
                                                                   is shown below:
                                                                                                   05 Oct    29 Sep    01 Oct
                                                                                                    2013       2012     2011
                                                                    Turnover (£’000’s)             193,882   189,423   119,898

                                                                    Pre-Tax Profit (£’000’s)         9,529    8,488    (7,627)

                                                                    Net Worth (£’000’s)             45,666   36,609    33,600

                                                                   EPC
                                                                   Rating: D(90)

                                                 25
Investment Summary   Property Locations   Tenancy Schedule   The Properties          PROPOSAL & Contacts

6. W
    ilko
   61 East Street, Taunton TA1 3LX                                                                                       1 of 4

                                                                           Investment Summary
                                                                             Prime retail investment opportunity.
                                                                           n	

                                                                             Freehold.
                                                                           n	

                                                                             Well configured retail accommodation,
                                                                           n	
                                                                             arranged with sales at ground floor and
                                                                             ancillary accommodation at first floor
                                                                             level.

                                                                             The store has been combined with the
                                                                           n	
                                                                             adjacent units also occupied by Wilko.

                                                                             Total area of 3,229 sq ft NIA.
                                                                           n	

                                                                             Let to Wilko Retail Limited expiring 31st
                                                                           n	
                                                                             October 2025 (10.5 years unexpired).

                                                                             Next rent review 31th October 2015.
                                                                           n	

                                                                             National covenant, with a D&B rating
                                                                           n	
                                                                             of 5A1 and an annual turnover of over
                                                                             £1.4bn.

                                                                             Passing rent of £92,250 per annum
                                                                           n	
                                                                             (£79.51 per sq ft Zone A).

                                                      26
Investment Summary                                                Property Locations                 Tenancy Schedule                   The Properties             PROPOSAL & Contacts

                                                                                            M6
                                                                                                                                                                                                                   2 of 4

                       A470

                              A483
                                                                              M5                   Location
                                                                                                   Taunton is an attractive, affluent County Town,              The per capita retail spending levels are comparable
                                                      A49
                                                                                                   approximately 50 miles south of Bristol, 36 miles north      with the PROMIS average, reflective of the demographic
                        A40
                                                                   M50                             west of Exeter, and lies just 4 miles west of Junction 25    profile and spending habits of the catchment
       A483
                                             A65                                            A429   off the M5 Motorway.                                         population (Source: PROMIS/CACI - 2013).
 A40
A48
  M4
        Pontardawe            A465                                                                 Taunton railway station is a junction station, with direct   The town benefits from limited competition within its
                                                   Chepstow
                               Blackwood
                                                                   M5
                                                                                A429               routes to Bristol, Exeter and London. It benefits from a     catchment being 45 minutes drive from Exeter and 60
                                                                                                   regular service to London (Paddington) with a fastest        minutes from Bristol.
                               M4           Newport                           M4                   journey time of approximately 1 hour 43 minutes.
                               Cardiff                                                                                                                          The most recent open market letting to Joules Clothing,
                              Barry
                                                      A38                                          The total population within Taunton’s primary                at 45-46 East Street (June 2014), achieved a headline
                                                                          A350
                                                                                                   catchment area is 206,000, similar to the Sub Regional       rate of £90 per sq ft Zone A – a short distance from the
                                            M5           Wells                 Warminster
                                                                  A361                             Centre average and ranking the town 72nd out of the          subject unit.
                                                   A39
                              Taunton                                                              PROMIS Centres.
                                             Glastonbury
              A361
                                                            Yeovil
                                                                                                   The Taunton catchment population is moderately
                                           A303
        A377                                                     Dorchester
                                                                                                   affluent, ranking 65th of the PROMIS centres on the
                          M5
                                                                                                   PMA Affluence Indicator at 2011.
              Exeter

                                                                                                                               27
Investment Summary                   Property Locations           Tenancy Schedule           The Properties              PROPOSAL & Contacts

                                                                                                                                                            3 of 4

Situation
The property is situated on East Street, which forms part
of the town’s prime retail location.

Other nearby tenants include Marks & Spencer, Primark,
TK Maxx, WH Smith, Waterstones and Sainbury’s.

                                                                                                             AM
                                                                         ING

                                                                                                             PLI
                                                                          H

                                                                                                              TOA
                                                                      LOT
Description

                                                                     C

                                                                                                  VAC
                                                                 LES

                                                                                                    NTA
                                                                JOU
The subject property is a prominent, double-fronted
unit, which has been amalgamated with 62-64 East

                                                                                                                  W USE
                                                                                                                   HO
                                                                                                                   ILK
                                                                                                                       O
Street (adjacent), also occupied by Wilko on a

                                                                                                                         HO
                                                                                                                            LD
                                                                                                                            GO
co-terminus lease, producing an overall store totalling

                                                                                                                               O DS
approximately 25,000 sq ft GIA.

The subject property comprises ground floor sales
accommodation and first floor ancillary space, and
benefits from a rear access service yard. It comprises the
following net internal areas:

Floor            Use                      Sq Ft      Sq M
Ground           Sales                    1,644      152.73
Ground           ITZA                     1,081      100.39                                                                                                 N
First            Ancillary                1,585      147.25
Total                                     3,229      299.98

                                                                                      28
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                            4 of 4

                                                                   Tenure
                                                                   Freehold

                                                                   Tenancy
                                                                   The property is let to Wilko Retail Limited, on a full
                                                                   repairing and insuring lease, for a term of 19 years from
                                                                   31st July 2006, expiring 31th October 2025 (10.5 years
                                                                   remaining). The next rent review is at 31st October 2015.

                                                                   The current rent passing is £92,250 per annum, which
                                                                   equates to £79.51 per sq ft Zone A.

                                                                   Wilko occupy the adjacent retail unit on a co-terminus
                                                                   lease, and fully utilise the combined ground floor spaces.

                                                                   The subject lease benefits from full reinstatement
                                                                   provisions.

                                                                   Covenant Strength
                                                                   Wilkinson Hardware Stores Limited changed their
                                                                   corporate name in June 2014 to Wilko Retail Limited.
                                                                   Established in the 1930’s, Wilko now has over 370
                                                                   stores. The Dun & Bradstreet rating of 5A1 indicates a
                                                                   ‘minimum’ risk of business failure.

                                                                   Summary account information over the last 3 years is
                                                                   shown below:
                                                                                                  27 April   28 April    30 April
                                                                                                     2013       2012        2011

                                                                    Turnover (£’000’s)            1,462,84   1,529,668   1,565,400

                                                                    Pre-Tax Profit (£’000’s)        27,612      27,512     22,736

                                                                    Net Worth (£’000’s)            248,295    230,431     230,479

                                                                   EPC
                                                                   Rating:E (112)

                                                 29
Investment Summary           Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

7.	BSS Group
      BSS Unit, Albert Road, Bristol, BS2 0BS                                                                         1 of 4

 Investment Summary
 n	Established commercial location to the east
    of Bristol City Centre.

 n	Warehouse unit extending to 39,527 sq ft
    GIA benefiting from good road frontage.

 n	Virtual freehold at a peppercorn rent
    (999 years from 12th April 2002).

 n	Let to BSS Group Ltd for a term expiring
    30th November 2020 (approximately
    5.7 years unexpired).

 n	National covenant with a D&B rating of 5A1.

 n	Total passing rent of £250,000 per annum,
    equating to an overall rent of £6.32 per sq ft.

                                                                   30
Investment Summary                                             Property Locations                     Tenancy Schedule                               The Properties             PROPOSAL & Contacts

                                                                                                                                                                                                                                 2 of 4

                                                                                                                                                                            Location
                                                                                            M6
                                                                                                                                                                            Bristol is the principal commercial centre in the west
                       A470
                                                                              M5
                                                                                                                                                    Barton Hill             of England. The city is located approximately 118 miles
                              A483
                                                                                                                                                                            west of London, 88 miles south west of Birmingham and
                                                      A49                                                                                                                   78 miles north east of Exeter.

                                                                                                                                                 ST
                                                                                                   Bristol

                                                                                                                                                   PH
                                                                                                   Temple

                                                                                                                                                     IL
                                                                                                                                                       LI
                                                                                                   Meads                                                                    The property is well located on Albert Road, an

                                                                                                                                                         PS
                                                                   M50                                                                    Saint Phillips
       A483             A40

                                                                                                                                                           CA
                                             A65                                            A429

                                                                                                                                                             US
                                                                                                                                                                            established industrial and trade counter area, located

                                                                                                                                                               EW
 A40

                                                                                                                                                                 AY
A48
        Pontardawe                                                                                                                       St Philip’s Marsh
                                                                                                                                                                            approximately one mile east of Temple Meads Station
                              A465
  M4
                                                   Chepstow        M5
                                                                                                                                                                            and Bristol city centre.
                               Blackwood                                        A429

                                                                                                                                                                            The location benefits from good accessibility to the
                                            Newport
                               M4                                             M4
                                                                                                                                                                            A4 Bath Road, which runs to the south of the site and

                                                                                                             A4
                               Cardiff
                              Barry                                Bristol                                                                                                  is just under 2 miles from the southern end of the
                                                      A38
                                                                             A350                                                                                           M32 motorway which provides direct access to the M4
                                            M5           Wells
                                                                  A361
                                                                               Warminster                                      A4                             A4            motorway.
                                                                                                                  Totterdown
                                                   A39

              A361
                                             Glastonbury
                                                                                                                                                                            Situation

                                                                                                                                                                      A4
                                                            Yeovil                                                                            Armo’s Vale
        A377
                                           A303
                                                                                                                                                                            The unit is situated in the St Philip’s Marsh Industrial
                                                                 Dorchester
                          M5
                                                                                                                                                                            area, on the south side of Albert Road. The area
              Exeter                                                                                                                                                        comprises predominantly industrial and trade counter
                                                                                                                                                                            occupiers, with the likes of Travis Perkins being located
                                                                                                                                                                            immediately adjacent to the subject property.

                                                                                                                                                                            The area surrounding St Philip’s Marsh caters for out-
                                                                                                                                                                            of-town retail, with Avonmeads Retail Park located just
                                                                                                                                                                            beyond the eastern end of Albert Road and a large
                                                                                                                                                                            Sainsbury’s supermarket just across the River Avon.

                                                                                                                                    31
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                                                                                                                                                                           3 of 4

Description                                                 Site                                                        Tenancy
The unit comprises an ‘L’ shaped, detached warehouse        A site of approximately 2.22 acres,                         The unit is let in its entirety to BSS Group Limited
extending to 39,527 sq ft.                                  equating to a low site coverage of 36.2%.                   (formerly BSS Plc) on a full repairing and insuring
                                                                                                                        lease for a term of 25 years from 1st December 1995
The property was built in the mid 90’s and is of a steel                                                                (approximately 5.7 years unexpired). The lease is subject
portal frame construction, with part brick and part         Tenure                                                      to 5 yearly open market rent reviews with the next
profiled steel clad exteriors.                              The site is held on a 999 year lease from 12th April 2002   review due on 1st December 2015.
                                                            at a rent of £1 per annum if demanded.
The warehouse is currently trading under two separate                                                                   The passing rent of £250,000 per annum, reflects
brands, BSS and PTS (both part of the BSS Group) with                                                                   £6.32 per sq ft.
the unit benefiting from a central customer reception/
trade counter, ancillary offices and warehouse
accommodation.

The unit benefits from 6m eaves height, 3 roller shutter
doors and a large loading area/car park to the front of
the unit. The site is secured by steel palisade and wire/
post fencing.

The property comprises the following gross internal
areas:

Floor            Use                     Sq ft      Sq m
Ground           Warehouse               28,709     2,667
Ground           Office/reception        6,386      593
First            Offices                 4,432      412

Total                                    39,527     3,672

                                                                                       32
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                           4 of 4

                                                                   Covenant Strength
                                                                   BSS Group Limited is a UK based company specialising
                                                                   in the supply and sale of heating, pipes and ventilation
                                                                   equipment. The company was acquired by Travis Perkins
                                                                   Plc in 2010.

                                                                   The Dun and Bradstreet rating of 5A1 indicates a
                                                                   ‘minimum’ risk of business failure.

                                                                   The latest available accounts for the past 3 years are as
                                                                   follows:
                                                                                                   31 Dec    31 Dec      31 Dec
                                                                                                     2013      2012        2011
                                                                    Turnover (£’000’s)                   -           -          -

                                                                    Pre-Tax Profit (£’000’s)             -      300      (18,700)

                                                                    Net Worth (£’000’s)             97,200    97,200      96,900

                                                                   EPC
                                                                   Rating: C (62).

                                                 33
Investment Summary           Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

8.	Triumph Structures
      21/21a Invincible Road, Farnborough, GU14 7QU                                                                   1 of 4

 Investment Summary
 n	Located just under one mile west of
    Farnborough town centre.

 n	An industrial unit, extending to 20,357 sq ft
    GIA with a site coverage of 46.5%.

 n	Long leasehold interest expiring 19th March
    2135 at a nominal rent.

 n	Let to Triumph Structures – Farnborough
    Limited on a lease expiring 11th October
    2016 (approximately 1.5 years unexpired).

 n	D&B rating of 2A1, and turnover of
    approximately £38m (2012/2013).

 n	Passing rent of £136,660 per annum,
    equating to £6.71 per sq ft.

 n	Well established tenant occupying seven
    units along Invincible Road (at least four
    owner-occupied).

                                                                   34
Investment Summary                                                              Property Locations                      Tenancy Schedule                          The Properties               PROPOSAL & Contacts

                                                                                                                                                                                                                                                          2 of 4

                                          M40                                                           M1
                                                                                                             J1
                                                                                                                                                                                                        Location
                  A404                                                                                                                                                      Farnborough
                                                         J16/1A     J1
                                                                                          Wembley                 A41                                                                                   Farnborough is located along the M3 corridor,
                                                                         Uxbridge
                    Maidenhead
                                                                                          A40                                                                                                           approximately 36 miles south west of London and 46
                  J9B                                Slough                        A312
                             J8/9
                                          J7
                                                J6
                                                                            J4                  J2     J1
                                                                                                                                                                                                        miles north east of Southampton.
                                                           J5      J15/4B           J3

                                               Windsor                            London
                                                                                                                                                                                                        The town benefits from excellent access to both
                                                                  J14
                                                                                  Heathrow
                                                                                  Airport                   A3
                                                                                                                                                                                                        Junctions 4 and 4a of the M3. The subject property is
                                                             J13
                                                                                             Kingston
      J10
        0                                                               A208       J1         Upon
            A329(M)
                                                           J12/2
                                                                                             Thames
                                                                                                                             A23                                                                        located on Invincible Road, within Farnborough’s main
                                                                                          A309
                             A322
                                                                  J11                                                                                                                                   industrial area, which is bounded by Marrowbrook Lane
                                     J3
                                                                  M25                                                                                                                                   to the north and the A327 (Elles Road) to the south.
                                                                                             A243
                                                                            J10
                        J4                               Woking
                                                                                             J9
                                                                                                  J9
                                                                                                                                                                               MEUDON AVE
                                                                                                                                                                                                        Farnborough Airport is located just to the south of
            J4A                                                                                               A217
M3                         Farnborough                                                                                  J7
                                                                                                                                                                                                        Invincible Road with numerous local occupiers involved
                        A331                               A3                                                                J7/8

            Aldershot
                                                                                                                  J8
                                                                                                                                                                                 Farnborough            within the aerospace sector.
                                                         Guildford
                                                                                                                          M23
                                                                                                                                                            27

A31
                                                 Godalming
                                                                                                              London
                                                                                                                                                          A3
                                                                                                                                                                                                        Situation
                                                                                                              Gatwick   J9A J9
                                                                                                              Airport                                                                                   The subject site is located at the western end of
                                                                                                                             J10

                                A3
                                                                                             A24
                                                                                                             Crawley                                                                                    Invincible Road. To the north of Invincible Road is

                                                                                                                                                                                                 A325
                                                                                                                  J11
                                                                                                                                                                                                        predominantly residential with much of Farnborough’s
                                                                                             Horsham
                                                                                                                                                                         Farnborough Air                commercial space being located to the south.
                                                                                                                                                                      Sciences Trust Museum
                                                                                                                                    Farnborough Airport

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Description                                                  Site                                                       Tenancy
The unit comprises a detached manufacturing unit             The unit is situated on a rectangular site, extending to   The property is let in its entirety on a full repairing
extending to 20,357 sq ft. The building is of a steel        approximately 0.87 acres, with a site coverage of 46.5%.   and insuring lease (subject to limitations with regard
portal frame construction, with part brick and part                                                                     to the roof and cladding) to Triumph Structures –
profiled steel clad exteriors. The 2 storey office content                                                              Farnborough, Limited (formerly St Bernard Composites
is located to the front (eastern) elevation and is of full   Tenure                                                     Limited), at a passing rent of £136,660 per annum,
brick build construction.                                    The property is held on a leasehold basis from             reflecting £6.71 per sq ft.
                                                             Rushmoor Borough Council, due to expire 19 March
Triumph are well established within Farnborough,             2135 (120 years unexpired) at a rent of £100 per annum.    The lease is due to expire on 11th October 2016
occupying a total of seven units along Invincible Road.                                                                 (c.1.5 years unexpired).
Of these seven, we understand that Triumph own the
long leasehold interests in four of the units.

The property comprises the following gross internal
areas:

Floor            Use                      Sq ft      Sq m
Ground           Warehouse                14,953     1,389
Ground           Office                   2,702      251
First            Office                   2,702      251

Total                                     20,357     1,891

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Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                         4 of 4

                                                                   Covenant Strength
                                                                   The tenant is a subsidiary of the Triumph Group
                                                                   Inc, which is headquartered in Pennsylvania. The
                                                                   group consists of 47 specialised manufacturing
                                                                   companies, which concentrate on one of three sectors;
                                                                   Aerostructures, Aerospace Systems and After Market
                                                                   Services.

                                                                   Triumph are well established and committed to
                                                                   Farnborough, occupying a further six units within close
                                                                   proximity to the subject property, four of which they
                                                                   own on a long leasehold basis.

                                                                   Triumph Structures – Farnborough, Limited (formerly
                                                                   St Bernard Composites Limited) has a Dun & Bradstreet
                                                                   rating of 2A1 indicating a ‘minimum’ risk of business
                                                                   failure. The past three years results as follows:

                                                                                                   31 Mar    01 April   31 Dec
                                                                                                     2013       2012      2010
                                                                    Turnover (£’000’s)              37,963    31,400    22,635

                                                                    Pre-Tax Profit (£’000’s)         7,232   (10,795)   (2,024)

                                                                    Net Worth (£’000’s)              6,058       569     7,156

                                                                   EPC
                                                                   Rating: C (62)

                                                                   Asset Management
                                                                   Immediate opportunity to negotiate a regear with the
                                                                   current tenant.

                                                 37
Investment Summary           Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

9.	Sealed Air
      Telford Way, Kettering, NN16 8UN                                                                               1 of 4

 Investment Summary
 n	Well located East Midlands industrial
    investment.

 n	30,506 sq ft GIA warehouse unit on a site
    of 1.85 acres with a low site cover of 36%.

 n	Freehold.

 n	Let to Sealed Air Limited on a lease
    expiring 18th November 2018 (approximately
    3.65 years unexpired).

 n	International covenant with a D&B rating of
    5A1 and a Turnover of £180m (2012/2013).

 n	Current income of £119,000 per annum
    reflecting £3.90 per sq ft.

 n	Excellent opportunity to regear the lease,
    given tenant’s commitment to the location.

 n	The building is connected to two adjoining
    properties at each end, owner occupied by
    Sealed Air and forming a significant estate
    for the tenant.

                                                                  38
Investment Summary                                               Property Locations                            Tenancy Schedule           The Properties              PROPOSAL & Contacts

                                                                                                                                                                                                                                  2 of 4

                            Mansfield                          Lincoln
                                                                                                                                                                Location
                                                                                                                                                                Kettering is an established industrial centre in the East Midlands,
                                       A617
                                                                                                                                                                approximately 75 miles north of London, 15 miles north east of
         A52                                                                                                                  3
                                                                                                                                                                Northampton and 26 miles south east of Leicester.
                                                                                                                            A4
   A50         Derby
                                                               A15                                        7
                                                                                                                                                                The town has excellent road communications, with the A43 and A14
                       M1
                                                                                                                                                                dual carriageways immediately to the west of the town, providing
                                                                     A1175                                        Telford Way
                                      Melton
                                      Mowbray                                                Kings Lynn            Industrial
                                                                                                                                                                links to the M1/M6 (junction 19) approximately 22 miles to the west.
                                             A6003                                                                   Estate                                     The A14 also links with the A1(M) at Huntingdon, 22 miles to the
                   M69                A6            A43
                                                                        Peterborough
                                                                                                                                                                east. Over 85% of the UK population is within 4 hours drive-time.
                                Market                                                                        7
            M6                 Harborough                         M11
            Coventry               A14                 A14
                                                                                                                                  H                             As part of the Milton Keynes and South Midlands Growth Area,
                                                 Kettering
                              M1           A43                                                                                                                  Kettering is expected to see significant growth by 2021 in terms of

                                                                                                              A14
                                                                                                                                                   Kettering
                 Northampton                             A6                                                                                                     population, new homes and new jobs.
                                                              Bedford
                                                                                        Newmarket
Stratford
 upon
  Avon
                 M40                                                                                                                                            The town has a regular rail service to London (St Pancras) with a
                                                              A421
                                                                                                                                                                journey time of less than one hour and is within an hour’s drive
                                Buckingham
                                                                                       M11                                                          Kettering   of Birmingham International, Stansted, East Midlands and Luton
                                              Leighton                A1M
                                              Buzzard                                                                                                           Airports.
                              M40
                                                                                                                                       Kettering
                                                                     M25                                                              Conference
                             Oxford                                                                                        A43          Centre
                                                                                                                                                                Situation
                                                                                                                                                                The property is situated in the heart of the Telford Way Industrial
                                                                                                                                                                Estate, which is considered to be the main industrial area for
                                                                                                                                                                Kettering. The estate benefits from good communications, lying
                                                                                                                                                                within half a mile of the junction of A14 and A43, which is accessed
                                                                                                                                                                via the A4300 at junction 7.

                                                                                                                                                                The tenant occupies both adjoining buildings with the subject
                                                                                                                                                                property central and forming the link between the three buildings.
                                                                                                                                                                Sealed Air Limited own and occupy a number of properties on the
                                                                                                                                                                estate. They own the freehold of the connecting properties and are
                                                                                                                                                                committed to the location.

                                                                                                                                                                Telford Way Industrial Estate is home to a wide range of industrial
                                                                                                                                                                and trade counter occupiers including Travis Perkins, Snap On Tools,
                                                                                                                                                                Hi-Q Tyres, Euroseal Plastics Ltd and Sealed Air Ltd.

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                                                                                                                                                                      3 of 4

Description                                                  Site                                                   Tenancy
The unit comprises a single detached industrial              The site area totals approximately 1.85 acres,         Let to Sealed Air Limited, on a full repairing and
warehouse, with ancillary office accommodation,              with a low site cover of approximately 36%.            insuring lease, for a term of 15 years expiring 18 th
constructed in the 1980’s.                                                                                          November 2018 (approximately 3.65 years unexpired).

The unit benefits from a minimum eaves height of             Tenure                                                 The current passing rent is £119,000 per annum,
4.8 metres. There are 2 loading doors and one dock           Freehold.                                              reflecting £3.90 per sq ft.
leveller to the front. There is a yard to the front of
the unit which has the benefit of 2 access points from
Telford Way.

The unit is currently connected to the two adjoining
units which are both operated by the tenant.

The property comprises the following gross internal
areas:

Floor           Use                     Sq ft      Sq m
Ground          Warehouse               29,919     2,779.5
Ground          Ancillary Office        587        54.5

Total                                   30,506     2,834

                                                                                        40
Investment Summary   Property Locations   Tenancy Schedule   The Properties                    PROPOSAL & Contacts

                                                                                                                        4 of 4

                                                                   Covenant Strength
                                                                   Founded in 1960, Sealed Air Corporation is a world
                                                                   leading packaging company known for the following
                                                                   brands: Cryovac food packaging, Bubble Wrap
                                                                   Cushioning and Diversey cleaning and hygiene.

                                                                   Sealed Air Limited has a Dun & Bradstreet rating of 5A1,
                                                                   indicating a ‘mimimum’ risk of business failure.

                                                                   Summary account information for the last 3 years is as
                                                                   follows:
                                                                                                   31 Dec    31 Dec    31 Dec
                                                                                                     2013      2012      2011
                                                                    Turnover (£’000’s)             180,120   195,840   176,211

                                                                    Pre-Tax Profit (£’000’s)         5,543    42,350   14,802

                                                                    Net Worth (£’000’s)             62,821    53,375     3,792

                                                                   EPC
                                                                   Rating: 94(D)

                                                                   Asset Management
                                                                   n	Regear lease with existing tenant.

                                                                   n	Potential future use as a trade counter
                                                                      given good road frontage.

                                                 41
Investment Summary           Property Locations   Tenancy Schedule   The Properties   PROPOSAL & Contacts

10. Acorn Web Offset
          Unit D1, Loscoe Close, Normanton Industrial Estate, Normanton WF6 1TW                                       1 of 4

 Investment Summary
 n	Normanton is one of the most sought after
    distribution and manufacturing locations
    in the north of England and is located 10
    miles south east of Leeds.

 n	The subject unit is located just 0.5 miles
    south of the M62 motorway.

 n	Freehold.

 n	20,643 sq ft two bay warehouse unit on a
    site of 1.19 acres.

 n	Let to Acorn Web Offset Limited for 15
    years from 25th October 2013, expiring 24th
    October 2028 (13.6 years unexpired).

 n	Recent regear agreed at a rent passing of
    £44,000 per annum, increasing to £88,000
    per annum in April 2016, equating to £4.26
    per sq ft - the vendor will top up.

 n	Acorn Web Offset owner-occupies the
    adjacent unit, forming a significant holding
    for the tenant.

                                                                   42
Investment Summary                                        Property Locations                       Tenancy Schedule              The Properties             PROPOSAL & Contacts

                                                                                                                                                                                                             2 of 4

                                                                                                                                                         Location
                                                       A170
                                                                                                                                                         Normanton is considered to be one of Yorkshire’s main
                                                                                                                                                         distribution and industrial locations.
                                                A19                                       M62                                                            The unit benefits from excellent road links at the heart
                                                               A64
                    Harrogate                                                                                        J31
                                        A1M                                                                                                              of the UK road network. The M62 ‘Trans-Pennine’
                                                                                                                                             J31
                  A59
                                                      York                                                                                               Motorway is located immediately to the north and links
                             Wetherby                                    A614
       A6068
                                                                                                                                                         with the A1(M) 5 miles to the east and the M1, 6 miles
                                                       A19
 M65
                             Leeds
                                                    Selby
                                                                                                                                                         to the west.
                    Bradford
                                                                 M50
                                                                                                                                                         Leeds is approximately 10 miles to the north west and
 A59                                     Normanton
         M62
                                              A1                                                                           Hopetown
                                                                                                                                                         Wakefield is 6 miles to the south west. Normanton is
                                                                M180                                                                                     approximately 180 miles north of London.

                                                                                                                                      A6
               Huddersfield           Barnsley
                                                      A1M

                                                                                                                                        55
                                 M1                          Doncaster                             Normanton
                 A628
M60                                                                                              Industrial Estate

                         Sheffield
                                                                                A483
                                                                                                                                                         Situation
                                          M18
                                                        A614
                                                                                                                                                         The property is on Loscoe Close within Normanton
                                                                                                                                                         Industrial Estate accessed directly off Fox Bridge Way.
                                                                                                                                                         The estate is 0.5 miles from junction 31 of the M62
                                                                                                                                                         which is accessed via the A655, Pontefract Road.

                                                   Nottingham
                                                                                                                                                         Normanton Industrial Estate is an established location
                                                                                                                                                         with numerous national companies located there
                                                                                                                                                         including; ASDA, Haribo, Poundland and DHL.

                                                                                                                                 43
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                                                                                                                                                                             3 of 4

Description                                                  Site                                                         Tenancy
The subject property is a detached industrial warehouse      The unit is on a site of 1.19 acres, with a site cover of
                                                                                                                          The property is let in its entirety to Acorn Web Offset
of two bays constructed in the late 1980’s.                  38%.
                                                                                                                          Limited, on a full repairing and insuring lease (subject
The unit is of steel portal frame construction with a                                                                     to a schedule of condition), for a term of 15 years from
minimum eaves height of 5.5 metres. There are two            Tenure                                                       25th October 2013, expiring 24th October 2028 (13.6 years
loading doors to the front, along with ancillary office                                                                   unexpired). The lease is subject to 5 yearly upward only
                                                             Freehold.
accommodation within the unit.                                                                                            open market rent reviews, with the next review being
                                                                                                                          on 25th October 2018.
The unit benefits from a yard to the front along with
car parking for 17 cars to the side. Following the letting                                                                The tenant is currently benefiting from a rent incentive
to the current tenant, the fencing separating the unit                                                                    period and is paying £44,000 per annum until 24th
from the adjoining property was removed and a ramp                                                                        April 2016, at which point the rent rises to £88,000 per
added by the tenant to combine the yard with the                                                                          annum (£4.26 per sq ft).
neighbouring unit, which is owned, freehold, by the
                                                                                                                          The vendor will top up the rent to £88,000 per annum.
tenant.

The property comprises the following gross internal
areas:

Floor            Use                Sq ft      Sq m
Ground           Warehouse          19,554     1,816.61
First            Office             1,089      101.14

Total                               20,643     1,917.75

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                                                                                                                        4 of 4

                                                                   Covenant Strength
                                                                   Acorn Web Offset Limited is a specialist magazine
                                                                   printer, with their HQ based in Normanton. Acorn Web
                                                                   Offset Limited has a Dun & Bradstreet rating of 2A2,
                                                                   indicating a ‘lower than average’ risk of business failure.

                                                                   Summary account information over the last 3 years is
                                                                   shown below:
                                                                                                   30 Sep    30 Sep    30 Sep
                                                                                                     2013      2012      2011
                                                                    Turnover (£’000’s)              15,930    15,817   15,829

                                                                    Pre-Tax Profit (£’000’s)          506       191       451

                                                                    Net Worth (£’000’s)              4,776    4,472     4,344

                                                                   EPC
                                                                   Rating: 59 (C)

                                                 45
Investment Summary                             Property Locations                            Tenancy Schedule                                The Properties                          PROPOSAL & Contacts

VAT                                                                                                         Proposal
The properties are elected for VAT and it is envisaged                                                      We are instructed to seek offers in excess of £14,600,000,
that the sale will be structured as a TOGC.                                                                 (Fourteen Million, Six Hundred Thousand Pounds) subject to
                                                                                                            contract and exclusive of VAT. An offer at this level would reflect a
                                                                                                            net initial yield of 7.27%, assuming purchaser’s costs of 5.80%.

Contact
Further information is available to view at:
www.thinkcapitarealestate.uk/blueoaks

Ross Hewes                                       Andrew Mitchell                                            John Shaw
T: 020 7544 2198                                 T: 020 7544 2242                                           T: 020 7544 2038
M: 07887 853191                                  M: 07901 518749                                            M: 07808 479289
ross.hewes@capita.co.uk                          andrew.mitchell3@capita.co.uk                              john.shaw2@capita.co.uk

65 Gresham Street, London EC2V 7NQ
+44 (0)20 7709 4500
www.thinkcapitarealestate.uk

Capita Property & infrastructure Ltd (“CPI”), trading as Capita, for itself and as agent for the vendors or lessors (the “Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst
every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on
the part of CPI or the Seller, (b) no such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and
(d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements, particulars (3) The Seller does not make or give, and neither CPI nor any of its employees or agents
makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the
incidence of VAT. (5) No liability is accepted and no representation is made by either CPI or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property,
any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CPI would otherwise have for any fraudulent concealment or for any statements made fraudulently
by it, its employees or agents. Capita: March 2015.

Capita: April 2015
                   46                                                                                                                                                                      © Produced by Barbican Studio: +44(0) 207 634 9573
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