104996 Hurricane Portfolio by Squeeze Design

CORNERHOUSE RETAIL PARK, BARROW HINDPOOL RETAIL PARK, BARROW CUCKOO BRIDGE RETAIL PARK, DUMFRIES

The HURRICANE PORTFOLIO

CHANNON RETAIL PARK, EASTLEIGH LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD OPPORTUNITY TO ACQUIRE A PORTFOLIO OF 7 WELL SECURED RETAIL WAREHOUSE SCHEMES WITH REVerSIONARY AND ASSET MANAGEMENT POTENTIAL BOTLEY ROAD RETAIL PARK, OXFORD MARSH MILLS RETAIL PARK, PLYMOUTH

Retail park Investment PORTFOLIO

471,425 sq ft

The HURRICANE PORTFOLIO

OVER

Cornerhouse & HINDPOOL Retail ParkS Barrow

Cuckoo Bridge Retail Park Dumfries

Channon Retail Park Eastleigh

London Road Retail Park Hemel Hempstead

BOTLEY ROAD Retail Park Oxford

Marsh Mills Retail Park (phase II) Plymouth

SITES

The HURRICANE PORTFOLIO

EXECUTIVE SUMMARY Main Tenants

Homebase Ltd, DSG Retail Ltd, Halfords Ltd, Comet plc, Pets at Home Ltd, Wickes Building Supplies Ltd AND Matalan

Average Retail Rent

£16.83 per sq ft

Average Retail ERV

£17.80 per sq ft £260 per sq ft

Portfolio Capital Value

14.08 years

Weighted Average Unexpired Term Initial Income

£7,931,994 per annum

Estimated Rental Value

£8,390,880 per annum

PROPOSAL Our client is seeking offers in the region of £122,350,000 (One Hundred and Twenty Two Million and Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. YIELD PROFILE A purchase at this level would provide the following yield profile net of purchaser’s costs at 5.7625%: Initial Yield

6.13%

Equivalent Yield

6.44%

Reversionary Yield

6.48%

VAT All of the properties are elected for VAT. The vendor would expect to treat the portfolio sale as a transfer of a going concern (TOGC).

CORNERHOUSE & HINDPOOL RETAIL PARK

The HURRICANE PORTFOLIO

BARROW

CUCKOO BRIDGE RETAIL PARK

DUMFRIES

CHANNON RETAIL PARK

DESCRIPTION Two Retail Parks let to Homebase, Halfords, Pets At Home, Au Naturale, Iceland, Rosebys, Carpetright, Harveys, Aldi, Blockbuster, Brantano and Next.

DESCRIPTION Retail Park let to Homebase, Dunelm, Texstyle World, Storey Carpets, Laura Ashley, MFI, Aldi (u/o) and KFC

DESCRIPTION Retail Park let to Halfords, Pets at Home, Comet and Matalan

AREA 132,758 sq ft

AREA 128,389 sq ft

AREA 60,397 sq ft

TENURE Freehold

TENURE Freehold / Leasehold

TENURE Freehold

RENT PASSING £1,711,776 per annum (£12.89 per sq ft avg)

RENT PASSING £1,634,384 per annum (£12.74 per sq ft avg)

RENT PASSING £853,036 per annum (£14.12 per sq ft avg)

ERV £1,855,835 per annum (£13.98 per sq ft avg)

ERV £1,699,974 per annum (£13.25 per sq ft avg)

ERV £944,193 per annum (£15.63 per sq ft avg)

PLANNING Open A1 food and non food on part with wide bulky goods on remainder

PLANNING Bulky Goods with Food consent on unit 7 anticipated

PLANNING Open A1 (non food) and bulky goods

CAR PARKING RATIO 1:288 sq ft

CAR PARKING RATIO 1:233 sq ft

CAR PARKING RATIO 1:244 sq ft

ATTRIBUTES n Strongest retail parks in the town n Adjacent to Tesco n Varied planning consents including food and unrestricted units n Improving economic outlook for catchment n Provable tenant demand in excess of ERVs with potential to downsize Halfords and relocate Harveys

ATTRIBUTES n Best scheme in the town n A djacent and linked to highly successful Tesco Extra n R ecent letting to Laura Ashley, Dunelm and unit under offer to Aldi n P rovable tenant demand to demonstrate reversion from the likes of Dreams

ATTRIBUTES n Affluent and mobile catchment population n Dominant scheme for town with lack of competion n Highly prominent location close to M3 motorway n Downsize Halfords unit and re-gear lease on circa 11,000 sq ft and let circa 3,000 sq ft to another retailer such as Dreams, Sleepmasters or Paul Simon n Develop fast food ‘pod’ in car park adjacent to Halfords unit and let to a fast food operator such as Subway

PROPOSAL Cornerhouse Retail Park Price

PROPOSAL Price

£24,730,000

PROPOSAL Price

£13,520,000

Initial Yield Equivalent Yield Reversionary Yield

6.25% 6.57% 6.61%

Initial Yield Equivalent Yield Reversionary Yield

6.25% 6.44% 6.50%

Initial Yield Equivalent Yield Reversionary Yield

Hindpool Retail Park Price

£12,370,000

Initial Yield Equivalent Yield Reversionary Yield

6.25% 6.86% 6.96%

EASTLEIGH

£12,900,000 6.25% 6.87% 6.92%

LONDON ROAD RETAIL PARK

BOTLEY ROAD RETAIL PARK

MARSH MILLS RETAIL PARK (phase II)

DESCRIPTION Retail Park let to Staples ,Halfords, Pets at Home and McDonald’s

DESCRIPTION Retail Park let to Currys, Harveys, Land of Leather, Comet, Multiyork and Maplin

DESCRIPTION Retail Park let to Wickes, Land of Leather and Carphone Warehouse

AREA 36,043 sq ft

AREA 70,601 sq ft

AREA 43,295 sq ft

TENURE Freehold

RENT PASSING £896,657 per annum (£24.88 per sq ft avg)

RENT PASSING £1,892,041 per annum (£26.80 per sq ft avg)

RENT PASSING £944,100 per annum (£21.81 per sq ft avg)

ERV £938,197 per annum (£26.03 per sq ft avg)

ERV £1,951,463 per annum (£27.64 per sq ft avg)

ERV £1,001,218 per annum (£23.13 per sq ft avg)

PLANNING Open A1 (non food) excluding clothing, footwear and toys

PLANNING Open A1 (non food) excluding fashion goods, fashion accessories or leather goods

PLANNING Bulky goods

CAR PARKING RATIO 1:227 sq ft

CAR PARKING RATIO 1:280 sq ft

CAR PARKING RATIO 1:222 sq ft

ATTRIBUTES n Affluent London commuter town n Under supply of retail warehouse floor space n Highly prominent location fronting main A4251 London Road n Potential to extend scheme by acquiring adjoining site n Flexible planning consent

ATTRIBUTES n Affluent Thames Valley town n Main retail warehouse location serving the catchment n D ownsize Currys unit to circa 20,000 sq ft and re-let prominent unit of circa 10,000 sq ft fronting Botley Road, and re-gear Currys unit to fixed increases n A cquire adjoining industrial scheme and integrate with PC World and Carpetright to increase traffic flow and develop additional space and massing n G uaranteed fixed increases on the Comet and Land of Leather units

ATTRIBUTES n Prime pitch, highly accessible n Affluent catchment n Long unexpired term n Development potential on adjacent site n Reversionary following settlement of rent reviews on Marsh Mills Retail Park (Phase I)

PROPOSAL Price

£14,130,000

PROPOSAL Price

£29,820,000

PROPOSAL Price

£14,880,000

Initial Yield Equivalent Yield Reversionary Yield

6.00% 6.24% 6.28%

Initial Yield Equivalent Yield Reversionary Yield

6.00% 6.17% 6.19%

Initial Yield Equivalent Yield Reversionary Yield

6.00% 6.33% 6.36%

HEMEL HEMPSTEAD

OXFORD

PLYMOUTH

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

CORNERHOUSE RETAIL PARK, BARROW & HINDPOOL RETAIL PARK, BARROW CUCKOO BRIDGE RETAIL PARK, DUMFRIES CHANNON RETAIL PARK, EASTLEIGH LONDON ROAD RETAIL PARK, HEMEL HEMPSTEAD BOTLEY ROAD RETAIL PARK, OXFORD MARSH MILLS RETAIL PARK, PLYMOUTH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

132,758 sq ft

BOTLEY ROAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

CORNERHOUSE & HINDPOOL RETAIL PARKS

BARROW-IN-FURNESS, CUMBRIA LA14 2NE 08

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

Key Features/Opportunities n Strongest retail parks in the town n Adjacent to Tesco

A590

n Varied planning consents including food and unrestricted units n Improving economic outlook for catchment n Tenant demand in excess of ERVs with opportunities to downsize Halfords and surrender Harveys

CRAVEN PARK Rugby League

HINDPOOL

RETAIL PARK

CORNERHOUSE RETAIL PARK

A590 To be

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

Cornerhouse and Hindpool Retail Parks are situated directly opposite each other fronting Hindpool Road, to the west of the town centre.

Blawith Broughton-in-furness

A5092

Gawthwalte Greenodd

The Hill

Ulverston

Millom Marton

Lindal

A595

RETAIL PARKS

BARROW-IN-FURNESS

South End

20 minute drive time

As at 2001, Barrow had an urban area population of 47,194. However, the lack of any competing centre for a significant distance means the scheme serves an extensive catchment population which CACI calculate extends to 74,810 persons within 20 minutes drive time of the subject properties. Indeed, in reality, we would expect customers may travel from even further afield.

A590 The town is linked to the M6 by the A590 trunk road, with the motorway being 33 miles north west of the town. There is a rail service to London Euston via Lancaster, with a journey time of approximately 3 hours, 56 minutes.

The town has developed as a successful port and in particular naval and defence base. Historically, it has been particularly associated with the construction of, and the base for, the UK’s submarine fleet. The main shipyard is now owned by BAE Systems who are the largest employer in the town. More recently, the town has benefited from the commencement of the significant “Waterfront” development providing a business park aiming to create 1,500 jobs linked to a 450 berth marina and a new marina village providing 650 homes. This development will have a beneficial impact on the town which is also an increasingly important power boat centre and stop off point for cruise ships from where passengers disembark to visit the region.

CACI identify a number of the attributes of this catchment population below: CACI Groups

Catchment Area (%)

GB (%)

Aged 15-54

58.20

60.40

Employed in skilled trades

17.00

11.70

Skilled manual workers

23.20

18.30

6.70

On state benefits, unemployed

The relative success of the local economy is reflected by the fact that in October 2007 the claimant count unemployment rate within the travel to work area stood at 2.10%, as compared to a national average of 2.20%.

MARSH MILLS RETAIL PARK PLYMOUTH

Morecambe Bay

Barrow-in-Furness is located on the west coast of Cumbria, approximately 60 miles south of Carlisle, 45 miles west of Lancaster and 70 miles north of Manchester. It is the main administrative and commercial centre within the Lake District.

BOTLEY ROAD RETAIL PARK OXFORD

CORNERHOUSE & HINDPOOL

CATCHMENT/DEMOGRAPHICS

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Soutergate

LOCATION

CHANNON RETAIL PARK EASTLEIGH

Duddon Bridge

The subject developments form the principal provision of retail warehousing in the town. 10

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

SITUATION

DESCRIPTION

The Cornerhouse and Hindpool Retail Parks are situated directly opposite each other fronting Hindpool Road, to the west of the town centre. Hindpool Road (A590), forms part of the main highway from the town leading to the M6 motorway.

Hindpool Retail Park This scheme comprises the original terrace of 4 units constructed in 1995 currently occupied by Rosebys, Carpetright, Harveys and Aldi, with a detached smaller unit situated at the front of the scheme occupied by Blockbuster. There is then the more recent extension to the park comprising two adjoining units constructed in 2004, occupied by Brantano and Next.

The subject developments form the principal provision of retail warehousing in the town. Their position as the strongest retail destination is significantly enhanced by the proximity of the Tesco foodstore, which is situated immediately adjacent to, and which shares the same customer access point, as the Cornerhouse Retail Park. Adjacent to the Hindpool Retail Park in separate ownership is a B&Q, whilst on the other side of the scheme is Craven Park the home ground of the “Raiders” rugby league team.

RETAIL WAREHOUSING IN Barrow To the north west of both developments is the Hollywood Retail and Leisure Park, which is owned by Standard Life, which extends to approximately 125,000 sq ft with occupiers including Comet, Dreams, JJB, Currys, Canons Health & Fitness and a bowling and cinema operator.

HINDPOOL

RETAIL PARK

CORNERHOUSE RETAIL PARK

The strength of the general location is to be further improved by way of the development of a new B&Q, extending to 50,000 sq ft, and JJB Health & Fitness/retail unit on Hindpool Road immediately to the south west of Cornerhouse Retail Park. We understand completion of this development is due in the summer of 2008. The only other collection of existing retail warehousing in the town is located approximately ½ mile north of the town centre and is currently occupied by MFI, Allied Carpets and Matalan. Finally there are proposals for a new scheme of approximately 50,000 sq ft to the rear of Cornerhouse Retail Park part of which, we understand, is under offer to Dunelm.

The original terrace is of steel portal frame construction under a pitched roof, which is set behind a tiled mansard feature. The front elevations are clad with attractive brickwork up to a height of approximately 2 metres, above which is plastic coated steel cladding, whilst the unit occupied by Aldi has extensive glazing. The Blockbuster unit at the front of the scheme is of steel portal frame construction. Units 6 and 7 occupied by Brantano and Next, were constructed at a later date with elevations being clad with attractive masonry, whilst the entrance area of each unit benifits from extensive glazing. Customers access the site directly off Hindpool Road, leading to a customer car park providing approximately 230 spaces, equating to 1 per 258 sq ft. There is a service yard providing access to the rear of each of the units, which is accessed separately from Duke Street.

Cornerhouse Retail Park The Cornerhouse Retail Park has been developed in a L shape formation and comprises two terraces of smaller units and a DIY store occupied by Homebase. All the units are of similar construction, with the Halfords unit having service bays along its side elevation. The Homebase unit benefits from an enclosed garden centre situated at the front of the site.

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

CRAVEN PARK Rugby League

CHANNON RETAIL PARK EASTLEIGH

There is a customer car park situated at the front of the units, which is accessed directly off Hindpool Road, sharing access with the adjacent Tesco foodstore, which provides approximately 285 car parking spaces, equating to a ratio of 1 per 257 sq ft.

|||||||||||||||||||||

Service vehicles access the concrete surfaced service yards at the rear of the scheme via a service road running between Pets at Home and Halfords units.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

HINDPOOL

RETAIL PARK

CORNERHOUSE RETAIL PARK

BOTLEY ROAD RETAIL PARK OXFORD MARSH MILLS RETAIL PARK PLYMOUTH

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

PLANNING Hindpool Retail Park Units 1 and 2 (Rosebys and Carpetright) are restricted to the sale of “furniture, carpets, electrical goods, vehicles, motor spares and accessories and DIY and garden centre goods and equipment”, Units 3 and 4 (Harveys and Aldi) are similarly restricted, but also can be used for the sale of food and drink. Unit 5 (Blockbuster) is restricted to the sale of “pre-recorded visual and musical materials, computer software and hardware, carpets, electrical goods, vehicles, motor spares and accessories, DIY and garden furniture goods and equipment and food and drink”.

HINDPOOL

RETAIL PARK

Units 5 and 6 (Brantano and Next) effectively benefit from an unrestricted open consent allowing food and non food sales.

Cornerhouse Retail Park The scheme is controlled by a number of planning consents, which essentially limit the range of goods to “furniture, furnishing, carpets, electrical goods, motor spares and accessories, DIY goods and garden centre goods and equipment”. A specific consent was granted in respect of the Iceland unit to allow the sale of food and drink. A variation was granted in 1998 to extend the range of goods on the Pets at Home unit to allow the sale of pets and pet products.

CORNERHOUSE RETAIL PARK

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

Unit Tenant

Total Area GIA ft2

Unit 1

Rosebys

Unit 2

Carpetright

Unit 3 Harveys

Lease Term Expiry Start Date

Next Rent Review

Rent (p.a.)

Rent ERV ERV (psf) (psf) (p.a.)

7,524

29/09/95

28/09/20

29/09/10

£98,059

£13.03

£15.50

£116,622

10,088

29/09/95

28/09/20

29/09/10

£131,144

£13.00

£15.25

£153,842

8,212

29/09/95

28/09/20

29/09/10

£117,438

£14.30

£15.50

£127,286

12,701

29/09/95

28/09/20

29/09/10

£176,000

£13.86

£15.00

£190,515

Unit 4

Aldi

Unit 5

Blockbuster

4,009

29/09/96

28/09/21

29/09/11

£56,000

£14.00

£16.00

£64,144

Unit 6

Brantano

6,667

13/10/04

12/10/19

13/10/09

£94,250

£14.14

£15.50

£103,339

Unit 7

10,183

13/10/04

12/10/19

13/10/09

£145,000

£14.24

£15.25

£155,291

£817,891

£911,038

Total

59,384

Unit Tenant

Total Area ft2

Lease Term Expiry Start Date

Next Rent Review

Rent (p.a.)

Rent ERV ERV (psf) (psf) (p.a.)

Unit 1 Homebase

36,245

24/06/90

23/06/15

24/06/10

£425,914

£11.75

£425,914

Unit 2 Halfords

15,023

24/06/90

23/06/15

24/06/10

£200,658

£13.36

£14.00

£210,322

Pets At Home

7,008

29/09/90

28/09/15

29/09/10

£94,608

£13.50

£15.50

£108,624

Unit 4

Au Naturale

6,134

22/07/03

21/07/23

22/07/08

£75,725

£12.35

£15.50

£95,077

Unit 5

Iceland

8,964

01/10/90

30/09/15

01/10/10

£96,980

£13.89

£15.00

£104,860

£893,885

£944,797

Total 1

73,374

Ground floor of 6,004 sq ft and rentalised mezanine of 2,960 sq ft at 33% of ground floor rate.

MARSH MILLS RETAIL PARK PLYMOUTH

Unit 3

BOTLEY ROAD RETAIL PARK OXFORD

Tenancy schedule - CORNERHOUSE RETAIL PARK

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

The properties provides the following approximate gross internal areas measured in accordance with the RICS Code of Measuring Practice (5th Edition) and is let in accordance with the tenancy schedule set out opposite.

Tenancy schedule - HINDPOOL RETAIL PARK

CHANNON RETAIL PARK EASTLEIGH

TENANCIES AND ACCOMMODATION

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

Tenants’ covenants - HINDPOOL RETAIL PARK Tenant Unit Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

- -

451,400 452,700

64,200 67,100

21,700 40,500

4A1

Unit 1 Rosebys Ltd 1

30/04/05 26/04/05

Unit 2 Carpetright plc

29/4/06 30/4/05

Unit 3 Harveys Furnishings Ltd

30/06/07 01/07/06

- -

127,232 127,232

5A2

Unit 4 Aldi Stores Ltd

31/12/06 31/12/05

1,318,258 1,126,597

48,441 67,188

1,022,289 986,029

5A1

Unit 5 Blockbuster Entertainment Ltd

31/12/06 31/12/05

240,621 279,657

(3,529) (13,679)

43,384 46,010

5A1

Unit 6 Brantano (UK) Ltd

31/12/06 31/12/05

108,326 112,882

692 3,681

37,523 37,365

5A1

Unit 7 Next Group plc

27/1/07 28/1/06

150,900 130,800

595,700 17,300

188,200 291,800

5A1

Tenant Unit Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

Unit 1 Homebase Ltd

28/02/06 14/01/05

1,458,984 1,488,665

-17,342 89,658

545,699 566,700

5 A1

Unit 2 Halfords Ltd

31/03/07 31/03/06

744,000 681,700

101,200 77,000

185,500 -56,300

5A1

Unit 3 Pets At Home Ltd

29/03/07 30/03/06

303,152 272,333

38,948 32,169

11,950 7,400

3A2

Unit 4 Internationale Ltd

31/03/07 31/03/06

130,448 124,437

5,033 5,273

15,517 11,308

4A2

Unit 5

- -

- H1 20,000

Tenants’ covenants - CORNERHOUSE RETAIL PARK

Iceland Frozen Foods plc

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

There are a number of potential asset management initiatives which can be undertaken to significantly increase the rental tone across the schemes.

PROPOSAL

The tone of the current rents on both schemes are historic. On the Cornerhouse Retail Park reviews from 2005 were set at up to £13.50 per sq ft on the smaller units and £11.75 per sq ft on the Homebase unit. A similar level of rents has been established on Hindpool Retail Park with the highest rents at £14.25 per sq ft being agreed on the letting of the new units to Next and Brantano in 2004. Recently the vendors were in discussion with Dreams to take a unit of 7,500 sq ft created from a downsize of the Halfords unit at a rent in the region of £19.00 psf. Subsequently Dreams took the former Klausner unit on the Hollywood Retail Park.

As indicated, there are a number of potential asset management initiatives which can be undertaken to significantly increase the rental tone across the scheme.

HINDPOOL RETAIL PARK We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £12,370,000.

In our opinion, these two schemes comprise the best retail warehousing in the town and therefore we would expect there to be a significant differential in rental levels which could be achieved here as compared to both the Hollywood Retail and Leisure scheme and the more secondary retail warehousing situated to the north of the town centre.

n Harveys have indicated they are willing relocate from unit 3, subject to a capital payment. We believe there is tenant demand for this unit, albeit some variations to the planning consent may be required for the likes of Mothercare, SCS and Argos. It is important to note that this unit can be used for the sale of food. A planning application has been submitted to allow a change of use to allow Mothercare to trade.

ENVIRONMENTAL RPS have carried out an environmental survey of the site, a copy of this report is available on request.

n Halfords are currently occupying a unit of 15,023 sq ft which is too large for their current requirements that can be easily subdivided to provide two units of circa 7,500 sq ft. Terms have been tentatively agreed with Halfords for a new 15 year lease at a rent of £15.50 per sq ft on a subdivided unit.

n When B&Q open their new store on Hindpool Road, there will clearly be opportunities to acquire and integrate the existing B&Q unit into the Hindpool Retail Park. We also believe that in time there may be the opportunity of widening the planning consent on this property (given its proximity to the town centre) and attract an additional open A1 retailer to the scheme. In summary, we believe there are very real asset management opportunities which can be undertaken in the relatively near future, which will demonstrate a substantial increase in the level of reversion across the scheme.

Initial Yield

6.25%

Equivalent Yield

6.86%

Revisionary Yield

6.96%

Cornerhouse Retail Park We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £13,520,000. Initial Yield

6.25%

Equivalent Yield

6.57%

Revisionary Yield

6.61%

The above yield profiles are based upon standard purchaser’s costs of 5.7625%.

BOTLEY ROAD RETAIL PARK OXFORD

Our current view of rental value as shown on the tenancy schedule has been adopted on a conservative basis and is someway below the levels which may be achieved in the open market.

These are summarised below:

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

ASSET MANAGEMENT

CHANNON RETAIL PARK EASTLEIGH

ESTIMATED RENTAL VALUE

MARSH MILLS RETAIL PARK PLYMOUTH

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

CORNERHOUSE RETAIL PARK, BARROW HINDPOOL RETAIL PARK, BARROW CUCKOO BRIDGE RETAIL PARK, DUMFRIES CHANNON RETAIL PARK, EASTLEIGH LONDON ROAD RETAIL PARK, HEMEL HEMPSTEAD BOTLEY ROAD RETAIL PARK, OXFORD MARSH MILLS RETAIL PARK, PLYMOUTH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

128,389 sq ft

BOTLEY ROAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

CUCKOO BRIDGE RETAIL PARK DUMFRIES DG2 9BF

CUCKOO BRIDGE RETAIL PARK | DUMFRIES

Key Features/Opportunities A75

n Adjacent and linked to highly successful Tesco Extra n Recent lettings to Laura Ashley and Dunelm n Provable tenant demand to demonstrate reversion n Potential tenant demand from relocations from alternative scheme A75

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

Dumfries is an attractive market town situated in the South West of Scotland in the district of Dumfries and Galloway.

CATCHMENT/DEMOGRAPHICS

Dumfries is an attractive market town situated in the South West of Scotland in the district of Dumfries and Galloway. The town lies approximately 75 miles south of Glasgow and 35 miles north west of Carlisle.

CACI calculate that within a 20 minute drive time contour there is a population in excess of 48,200. As at 2001, the town had an urban population of approximately 31,146, however, given the considerable distance to any competing centres, we believe the town serves a wider catchment area. As at 2001, the town had a population in excess of 62,400 within 12 miles of the town centre and a district population in excess of 147,700.

The town lies at the junction of the A75, A76 and A701. The A701 and A75 provide direct access to the A74(M) at Junctions 22 and 15 respectively, which then provide access to the south via the M6 and onwards north towards Glasgow. The A75 then continues in a westerly direction and provides the main access route to Stranraer, which is situated approximately 58 miles to the west. The A76 provides access in a northerly direction to Kilmarnock and Ayr.

CACI identify the following characteristics of the catchment population: CACI Groups

20 minute drive time

A76

A74 (M) A701

CUCKOO BRIDGE RETAIL PARKS

Lockerbie

DUMFRIES

A75

GB (%)

Higher qualifications

24.00

20.40

Economically active

66.50

66.40

Skilled manual workers

26.00

18.30

Aged 15-54

53.00

54.70

The local economy is dominated by light industry, forestry and tourism, with major employers in the town including Dupont and Tesco. As at October 2007 the claimant unemployment rate within the travel to work area stood at 2.40%, as compared to the national average of 2.20%.

BOTLEY ROAD RETAIL PARK OXFORD

As at 2001, the town had a population in excess of 62,400 within 12 miles of the town centre and a district population of in excess of 147,700.

Catchment Area (%)

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Glasgow international airport is approximately 75 miles north of Dumfries.

Thornhill

CHANNON RETAIL PARK EASTLEIGH

LOCATION

Hunsdon

Castle Douglas

Dalbeattie

MARSH MILLS RETAIL PARK PLYMOUTH

Annan

The park has been developed in a classic “L shape” and is currently split into 7 units, with the flexibility to be further subdivided if required. 20

CUCKOO BRIDGE RETAIL PARK | DUMFRIES

CUCKOO BRIDGE RETAIL PARKS

SITUATION

RETAIL WAREHOUSING IN Dumfries

The subject property is situated fronting Glasgow Road (A76), being the main carriageway leading from the A75 bypass to the town centre.

The Cuckoo Bridge Retail Park is one of the three main retail parks in the town. The others are summarised below:

In addition to the subject property, the major attraction of the immediate location is a Tesco Extra foodstore extending to approximately 85,000 sq ft. This foodstore, which adjoins the subject property, is a highly successful trading destination. This is demonstrated by the fact that Tesco are in negotiations with the Local Planning Authority to install a substantial trading mezzanine.

Dumfries Retail Park A purpose built development extending to approximately 85,718 sq ft, being occupied by Wickes, Comet, Harveys, Allied Carpets, Carpetright, Currys and Carphone Warehouse. This is situated approximately 1/4 mile to the north east of the subject property at the junction of the A75 and A76. The property was purchased in 2007 by Curo Property Funds. There are rent reviews outstanding on the unit occupied by Allied Carpets (10,000 sq ft) and Focus (28,000 sq ft) from the passing rents of £10.00 and £12.75 per sq ft. The remaining rent reviews on the scheme are due later in 2008.

In our opinion this is now the best retail park in Dumfries, specifically due to its proximity to the adjacent Tesco foodstore.

Peel Retail Park Situated fronting the A709 to the east of the town centre. The park has an open non food planning consent and occupiers are Matalan, Brantano, Pets at Home, JJB Sports, TK Maxx and Au Naturale. The scheme extends to 85,000 sq ft and was purchased in 2007 by Morley Fund Management. Rents are historic, being between £10.50 per sq ft in respect of Matalan (35,054 sq ft) through to £15.00 per sq ft in respect of Au Naturale (7,540 sq ft). The remainder of the scheme is subject to rent reviews from September 2007 to April 2008. It is our understanding that the landlords are in discussions with regards to a letting on one of the units and are anticipating achieving a rent in the region of £18-19.00 per sq ft. There is a standalone Halfords unit (15,000 sq ft) situated to the south of the town centre where the tenants are currently paying a rent of £11.00 per sq ft.

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

DESCRIPTION The subject property comprises a purpose built retail park, constructed in 2001 providing approximately 128,331 sq ft GIA of accommodation. The park has been developed in a classic “L shape” and is currently split into 7 units, with the flexibility to be further subdivided if required. In addition, there is a fast food restaurant situated at the front of the site.

The scheme is anchored by Homebase who provide the largest DIY offer for the catchment. Dunelm have erected a large trading mezzanine which we estimate extends to approximately 65-70% of the ground floor area. The vendor has submitted Building Warrant applications in respect of units 3, 4, 6, 7a and 7b to secure the right to allow mezzanine accommodation in these units prior to the likely new statutory mezzanine restrictions.

Customers access this car park directly from a roundabout from the A76 Glasgow Road and it is important to note that this is also the customer access point for the adjacent Tesco Extra and petrol filling station. There is also customer and vehicle linkage between the retail park and Tesco’s car park. There is a dedicated service road, which leads to a concrete service yard situated at the back of the units from where rear loading access is provided.

UNDER OFFER

BOTLEY ROAD RETAIL PARK OXFORD

To the front of the scheme is a customer car park, which, provides a total of approximately 550 car parking spaces equating to a ratio of 1 per 233 sq ft.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

GARDEN CENTRE

Internally, each unit provides standard retail accommodation with a clear internal eaves height to the underside of the haunch of approximately 6 metres. Unit 7a/b is under offer to Aldi as a single unit.

In summary, the development provides an attractive, modern purpose built retail park which integrates with the adjacent Tesco Extra foodstore.

The majority of the site as outlined in red on the scheme is held Freehold with the area outlined in blue being held on a headlease from Dumfries and Galloway Council for a term of 999 years from 7th July 2000 at a rent of £1.00 per annum.

MARSH MILLS RETAIL PARK PLYMOUTH

TENURE

CUCKOO BRIDGE RETAIL PARK | DUMFRIES

TENANCIES AND ACCOMMODATION The property provides the following approximate gross internal areas measured in accordance with the RICS Code of Measuring Practice (5th Edition) and is let in accordance with the tenancy schedule set out opposite.

Tenancy schedule - CUCKOO BRIDGE RETAIL PARK Unit Tenant

Unit 1 Homebase Unit 2 a/b Dunelm 1 Unit 3 Texstyle World 2 Unit 4 Storey Carpets Unit 5 Laura Ashley 3 Unit 6 MFI Unit 7a/b U/O Aldi 4 Restaurant KFC 5 Total

Total Area ft2

Lease Term Expiry Start Date

Next Rent Review

48,180 26/02/01 25 25/02/26 26/02/11 20,152 01/10/07 15 30/09/22 01/10/12 10,007 11/10/07 15 10/10/22 11/10/12 10,008 24/06/07 15 23/06/22 24/06/12 7,522 14/06/07 15 13/06/22 14/06/12 14,956 03/02/02 21 03/02/23 07/02/13 15,011 TBC 20 TBC TBC 2,553 08/10/01 25 07/10/26 08/10/11 128,389

Rent (p.a.)

£530,000 £11.00 £11.00 £231,748 £11.50 £11.50 £155,109 £15.50 £15.50 £155,124 £15.50 £15.50 £101,547 £13.46 £18.50 £186,950 £12.50 £12.50 £213,906 £14.25 £16.11 £60,000 £23.50 £23.50 £1,634,384

Tenants’ covenants - CUCKOO BRIDGE RETAIL PARK

£530,000 £231,748 £155,109 £155,124 £139,154 £187,000 £241,839 £60,000 £1,699,974

Rent Reviews to lower of OMV or 2.50% p.a. compound over previous 5 years. Tenant’s break clause at YR10. (6 months notice).

Tenant Tenant / Guarantor Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

Unit 1 Homebase Ltd Unit 2 a/b Dunelm (Soft Furnishings) Ltd Unit 3 Texstyle World (Fads) Ltd Unit 3 Strategic Retail plc (Guarantor) Unit 4 Storey Carpets Ltd Unit 5 Laura Ashley Ltd Unit 6 MFI Properties Ltd Unit 7a/b U/O Aldi Stores Ltd Restaurant Mulcroft Ltd Restaurant Fieldrose Ltd (Guarantor)

1,458,984 1,488,665 354,720 315,187 6,268 4,011 21,857 21,923 32,791 30,419 208,180 235,550 9,217 10,439 1,318,258 1,126,597 - 6,058 14,403 14,146

-17,342 89,658 39,752 39,946 251 (90) 74 178 654 1,069 95,200 36,500 19,544 4,933 48,441 67,188 361,820 311 486 375

545,699 566,700 21,684 14,023 (1,832) (2,053) 1,414 919 4,388 4,014 25,070 34,590 117,255 173,166 1,022,289 986,029 367 (418) 1,510 859

5A1

28/02/06 14/01/05 30/06/07 01/07/06 24/02/07 25/02/06 24/02/07 25/02/06 03/03/06 25/02/05 28/01/06 29/01/05 24/12/05 25/12/04 31/12/06 31/12/05 30/09/06 30/09/05 30/09/06 30/09/05

Rent ERV ERV (psf) (psf) (p.a.)

Lease guaranteed by Strategic Retail plc with a right to discharge once pre tax profits equate to twice annual rent for 2 consecutive years.

Uplift to £135,396 from 14/06/09 and to £139,154 from 14/07/12 to 13/06/17. 2017 RR to previous rent increased by the compounded annual change in RPI for previous 5 years plus 1.00% p.a. capped at 2.00% p.a. Tenants break clause at 14/06/12 and 14/06/17 (6 months notice). Tenant to pay landlord £250,000 if the break excercised in 14/06/12.

4A2 N5 1A3

A conditional agreement to lease exchanged subject to planning for change of use. Rent Reviews subject to fixed uplifts at 2.50% p.a. compound over previous 5 years. Tenant’s break clause at YR15 (12 months notice). Vendor to provide rental guarantee at £213,750 pa. for 24 months or until let and income providing which ever is the earlier.

2A1 4A2 5A4

Tenant has break clause in 07/10/16. (9 months notice).

5A1 A5 2A3

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

ASSET MANAGEMENT

The principal planning condition controlling the use of the property states:

The current level of passing rents are between £11.00 per sq ft and £15.50 per sq ft. The letting to Aldi, which is on a subject to planning basis, has been agreed at a headline rent of £14.25 per sq ft.

In our opinion this is now the best retail park in Dumfries, due to the adjacent Tesco Extra foodstore. As such, we believe retailers will continue to seek representation in this location.

Other evidence in the town is historic, with a rent review on the Dumfries Retail Park from May 2006 on the Allied Carpets unit (10,024 sq ft) remaining outstanding from the passing rent of £12.00 per sq ft.

Unit 7/8 is under offer to Aldi at a rent of £14.25 per sq ft, subject to a 6 months’ rent free period. Aldi have submitted an application to allow the sale of discount food. In addition, there is tenant interest in the accommodation on a subdivided basis (the unit is currently constructed as two units). Most particularly, terms have been board approved by Dreams on a unit of 7,500 sq ft at a headline rent of £19.00 per sq ft, subject to a 6 months’ rent free and a capital contribution of £150,000. We calculate that on a devalued basis, this equates to a rent of £16.50 per sq ft. In addition, there is interest in the remaining accommodation from Big Bathroom Shop and Au Naturale as a relocation from the Peel Centre. We believe there are a range of other potential retailers who would take space here subject to obtaining a variation in the existing planning consent such as Mothercare and M&S Simply Food. If as anticipated the letting to Aldi proceeds then Dreams could potentially be accommodated in the MFI unit.

“ The primary use of each retail unit shall be the sale of bulky goods (e.g. DIY, hardware, furniture, carpets, electrical and gardening and not clothing, footwear, toys, sports goods, sportswear, pets/ pet products, books or newspapers/magazines) and that retail floor space for any electrical units shall not exceed 910 sq m and no more than one unit shall be permitted within the development.” The scheme therefore benefits from a reasonably wide bulky planning consent, which has been taken to include the sale of soft furnishings. Unit 7A/B is currently subject to an Agreement for Lease to Aldi being on a subject to planning basis. Aldi has submitted a planning application to allow discount food to be sold from this unit. This has been approved by the local planning committee but is subject to approval by the Planning and Environmental Committee.

At the Peel Centre, the landlords, Morley, face a round of rent reviews from September 2007 to March 2008 with the passing levels of up to £15.00 per sq ft. We understand they are in negotiations with tenants who would utilise the open non food planning consent (7,540 sq ft) at a rent in the region of £18-19.00 per sq ft. As set out in the Asset Management section, we believe there is potential tenant demand for unit 7A/B at rents in excess of the current passing level, which will prove a level of reversion. However, at the present time we would suggest the current ERVs are as set out in the tenancy schedule.

RPS Group have carried out an initial environmental survey of the site, a copy of this report can be made available on request.

PROPOSAL

BOTLEY ROAD RETAIL PARK OXFORD

ENVIRONMENTAL

In summary, we believe the strength of this location as a retail destination is likely to improve and rental levels will increase. In the event that Aldi does not obtain planning consent within the agreed time periods, then there is a possibility of undertaking additional lettings which will improve the level of initial and reversionary rent. In addition, given that we understand the scheme trades well for the existing tenants, we expect other retailers will seek to gain representation in this location.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

ESTIMATED RENTAL VALUE

CHANNON RETAIL PARK EASTLEIGH

PLANNING

We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £24,730,000. 6.25%

Equivalent Yield

6.44%

Revisionary Yield

6.50%

The above yield profile is based upon standard purchaser’s costs of 5.7625%.

MARSH MILLS RETAIL PARK PLYMOUTH

Initial Yield

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

60,397 sq ft

BOTLEY RAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

CHANNON RETAIL PARK

EASTLEIGH SO50 9NA 26

CHANNON RETAIL PARK | EASTLEIGH

Key Features/Opportunities n Affluent and mobile catchment population n Dominant scheme for town with a lack of competing retail warehousing n Highly prominent location close to M3 motorway n Downsize Halfords unit and re-gear lease on circa 11,000 sq ft and let circa 3,000 sq ft to another retailer such as Dreams or Paul Simon n Develop fast food ‘pod’ in car park adjacent to Halfords unit and let to a fast food operator such as Subway

Woodside Avenue

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

CATCHMENT/DEMOGRAPHICS

Eastleigh town centre is situated approximately 2 miles east of Junction 13 of the M3 motorway and 2 miles north of Junctions 4 and 5 of the M27 motorway.

CACI calculate that within a 20 minute drive time of the property there is a resident population of 530,417 persons (2001 census). Eastleigh serves as a sub regional centre for the north Southampton conurbation and, indeed, is a major centre within its own right. The Borough of Eastleigh benefits from a particularly attractive demographic profile as detailed below:

Highclere

A338

CACI Groups





Tidworth A303

Whitechurch





M3 

Alton



A31



J11

A36 J12

Romsey 



Petersfield

EASTLEIGH  J13  



CHANNON  

 Southampton

DARTMOOR

20 minute drive time 



 









 

69.2

66.4

AB Higher and Intermediate

28.3

24.9

Higher Qualifications

21.3

20.4

6.3

5.0

Households with 2 Cars

34.4

23.1

Owner Occupied Homes

81.6

68.3

Higher Professional Occupations

Based upon urban area

An above average proportion of Eastleigh’s population is defined as ‘Economically active’ and the town’s long term unemployment rate is below the national average standing at 2.1% as compared to 3.4%.

Portsmouth



  





 



MARSH MILLS RETAIL PARK PLYMOUTH



Economically active

RETAIL PARK

M27

A31

Ringwood



GB (%)

BOTLEY ROAD RETAIL PARK OXFORD



Winchester

Salisbury

The development is situated fronting Woodside Avenue, approximately 50 metres from its junction with the A335 Leigh Road.

Catchment Area (%)

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

There is a direct rail service to London Waterloo with a fastest journey time A339 of 1 hour and 15 minutes, whilst Southampton International Airport lies 2 miles north ofA34 the town providing both national and international services. Basingstoke 



CHANNON RETAIL PARK EASTLEIGH

LOCATION

The town is well served by the A335 Southampton Road, which in turn provides access to Junctions 12 and 13 of the M3 motorway and further to the M27 motorway.



CUCKOO BRIDGE RETAIL PARK DUMFRIES

Eastleigh is in the county of Hampshire, approximately 5 miles north of Southampton, 35 miles north east of Bournemouth and 7 miles south of Winchester.

Without doubt, the subject property comprises the best retail warehousing in Eastleigh where there is an under supply of good out of town retail floor space. 28

CHANNON RETAIL PARK | EASTLEIGH

SITUATION

OUT OF TOWN RETAIL IN EASTLEIGH

The development is situated fronting Woodside Avenue, approximately 50 metres from its junction with the A335 Leigh Road, which in turn provides direct access to Junction 13 of the M3 motorway, which lies approximately 400 metres to the west of the scheme. The development lies approximately 1 mile to the west of the town centre shopping area where major occupiers include Tesco, Boots, Littlewoods, Safeway and Mothercare.

Without doubt, the subject property comprises the best retail warehousing in Eastleigh where there is an under supply of out of town retail floor space. There are two other retail warehouse developments in the town. About 500 metres to the north of the subject property, also fronting Woodside Avenue but in a less prominent position, is a B&Q unit comprising about 52,000 sq ft.

The other retail warehouse scheme in Eastleigh on Chestnut Avenue occupies a secondary position. There is a Homebase of 35,000 sq ft, whilst the adjoining unit was originally pre-let to Comet, but never occupied by them and comprises 14,138 sq ft underlet to Dreams Beds and Nevada Bob. Prime rents in central Southampton currently lie at about £30.00 per sq ft with the latest letting on the West Quay Retail Park at this level. Around Junction 8 of the M27 at Hedge End, there is good quality retail warehousing anchored by the Sainsbury’s and Marks and Spencer. Here, the highest rent is £37.00 per sq ft. In Winchester there is a standalone Homebase unit together with a small 3 unit scheme, both situated on Easton Lane to the east of the town. The Homebase unit is let off a rent of £22.00 per sq ft whilst the 3 unit scheme is due for review in March 08 and will achieve settlements in excess of this level.

CHANNON

RETAIL PARK

The entire scheme benefits from what we would describe as a relaxed ‘bulky goods’ consent

DESCRIPTION The building was developed as two units constructed of steel portal frame comprising of brick and blockwork walls, together with lined and insulated steel profile cladding to an eaves height of approximately 6.5m, under a pitched insulated steel profile clad roof incorporating translucent roof panels. To the front of the building there is a tarmacadem customer car park, which is accessed directly off Woodside Avenue and also provides access to the service bay facilities to the side of the Halfords unit. There is a separate road access to the service yard at the rear of the units. There is car parking provision for some 251 vehicles providing a ratio of 1:243 sq ft.

TENURE The site as shown red is held freehold.

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

PLANNING The entire scheme benefits from what we would describe as a relaxed ‘bulky goods’ consent excluding the sale of: “ food and drink; clothing; footwear and fashion accessories (except ancillary clothing of footwear for DIY, motoring or cycling activities); musical instruments; china and fashion goods; chemist/ pharmaceutical goods; books; jewellery; toys and sports goods…”

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

The consent does, in our view, potentially permit the sale of some items not sometimes permitted under a bulky goods consent to include office and stationery equipment; pets and pet goods and a travel agency use, together with the standard range of bulky goods items. Unit 1, occupied by Matalan, is subject to the same consent, but subject to a relaxation to also allow the sale of: “ clothing; household goods and textiles; shoes; china; glassware and pottery and seasonal and ancillary items…”

BOTLEY ROAD RETAIL PARK OXFORD MARSH MILLS RETAIL PARK PLYMOUTH

WOODSIDE AVENUE

CHANNON RETAIL PARK | EASTLEIGH

Total Area ft2

Lease Term Expiry Start Date

Next Rent Review

Rent (p.a.)

Rent ERV ERV (psf) (psf) (p.a.)

Unit 1 Halfords

14,398

25/03/89

24/03/14

25/03/09

£201,900

£14.02

£16.00

£230,368

Unit 2

Comet

11,575

25/03/89

24/03/14

25/03/09

£157,700

£13.62

£16.75

£193,881

Unit 3

Pets at Home

6,932

15/02/07

14/02/22

15/02/12

£121,310

£17.50

£121,310

Unit 4

Matalan

27,492

01/11/99

31/10/24

01/11/09

£372,126

£13.54

£14.50

£398,634

£853,036

£944,193

Total

60,397

Tenants’ covenants - CHANNON RETAIL PARK Tenant Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

Halfords Ltd

30/03/07 31/03/06

£744m £682m

£101.2m £77m

£185.5m (£56m)

5A1

Comet Group Plc

31/01/07 31/01/06

£1.6bn £1.45bn

£55.6m £4.8m

£47.28m (£16.42m)

5A1

Pets at Home Ltd

29/03/07 30/03/06

£303.15m £272.23m

£38.95m £32.17m

£11.95m £7.4m

3A2

Matalan Retail Ltd

24/02/07 25/02/06

£1.03bn £1.06bn

£28.1m £25.9m

£87m £75.1m

5A2

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

ASSET MANAGEMENT

We are of the opinion that the scheme has an ERV as set out in the tenancy schedule. In particular, we would draw your attention to the fact that the property is the main scheme serving the substantial catchment of the town as evidenced by the most recent letting to Pets at Home at a rent of £17.50 per sq ft.

Our clients recently received planning consent to substantially refurbish the scheme to include the provision of replacement entrance features for the existing units as well as the provision of a second entrance feature on unit 1 to enable the sub-division of the Halfords unit. Interest in a unit of approximately 4,000 sq ft has been expressed by Sleepmaster.

The B&Q in Eastleigh, which, in our opinion, occupies an inferior position to Channon Retail Park, was let at a rent of £14.00 per sq ft for a unit of approximately 52,000 sq ft in April 2005.

ENVIRONMENTAL RPS Group has undertaken a desktop environmental survey of the site and a copy of their report is available on request.

PROPOSAL We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £12,900,000. 6.25%

Equivalent Yield

6.87%

Revisionary Yield

6.92%

The above yield profile is based upon standard purchaser’s costs of 5.7625%. PROPOSED ELEVATION

BOTLEY ROAD RETAIL PARK OXFORD

Initial Yield

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Further a field at Winchester, the Moorside Retail Park which is due for review in March this year is currently let at rents of circa £18.25 per sq ft and should achieve settlements in excess of £22.00 per sq ft, which is the rent that was agreed on the nearby Homebase unit at last review.

Our client has previously received interest from Subway for a fast food unit on the scheme, and subject to planning this could be built in the over flow car park located at the side of the Halfords unit.

CHANNON RETAIL PARK EASTLEIGH

ESTIMATED RENTAL VALUE

MARSH MILLS RETAIL PARK PLYMOUTH

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

36,043 sq ft

BOTLEY ROAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD HP3 9AA

LONDON ROAD RETAIL PARK | HEMEL HEMPSTEAD.

Key Features/Opportunities n Affluent London commuter town n Under supply of retail warehouse floor space n Highly prominent location fronting main A4251 London Road n Potential to extend scheme by acquiring adjoining site n Flexible planning consent

A4251 London Road

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

CATCHMENT/DEMOGRAPHICS

Hemel Hempstead town centre is situated approximately 1.5 miles west of Junction 8 of the M1 motorway and 5 miles north of Junction 27 of the M25 motorway.

CACI calculate that within a 20 minute drive time of the property there is a resident population of 413,030 persons. The town of Hemel Hempstead benefits from a particularly attractive demographic profile as detailed below: CACI Groups

Luton

Whitchurch

M1 Studham A1(M)

Redbourn

RETAIL PARK

Kings Langley

J19

J6 J20

66.4

AB Higher and Intermediate

35.0

24.9

Higher Qualifications

25.6

20.4

7.2

5.0

32.8

23.1

70.4

68.3

Higher Professional Occupations Households with 2 cars

Owner Occupied Homes 1 1

Based upon urban area

Hemel Hempstead serves as a major commuter town being situated just to the north of the Greater London conurbation, and is a major business centre, with the information and telecommunications sector being particularly prevelent.

LONDON

MARSH MILLS RETAIL PARK PLYMOUTH

M25

Cookham

72.5

Elstree

Hazlemere

Marlow 20 minute drive time

Economically Active

BOTLEY ROAD RETAIL PARK OXFORD

LONDON ROAD

HEMEL HEMPSTEAD

Hemel Hempstead serves as a major commuter town being situated just to the north of the Greater London conurbation.

GB (%)

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

There is a direct rail service to London Euston with a fastest journey time of 20 minutes, Leighton whilst Luton International Airport lies 12 miles north of the town Buzzard providing both national and international services.

Catchment Area (%)

CHANNON RETAIL PARK EASTLEIGH

LOCATION

The town is well served by the A414 St Albans Road, which provides access to Junction 8 of the M1 motorway, the A4146 London Road which provides access to the west of the town, and the A41 Watford Road which leads south from the town to Junction 20 of the M25 motorway.

Princes Risborough

CUCKOO BRIDGE RETAIL PARK DUMFRIES

Hemel Hempstead lies in the county of Hertfordshire, approximately 26 miles north-west of central London and 9 miles north of Watford.

The units can be used for the sale of a wide variety of goods and for retailers such as Argos and Boots as well as traditional bulky occupiers. 36

LONDON ROAD RETAIL PARK | HEMEL HEMPSTEAD.

SITUATION

OUT OF TOWN RETAIL IN HEMEL HEMPSTEAD

The development is situated fronting the A4251 London Road, approximately 100 metres from its junction with the A414 Two Waters Road, which in turn provides access to the A41 Watford Road, which lies approximately 500 metres to the south-west of the scheme. The scheme lies approximately 1 mile to the south of the town centre shopping area.

LONDON ROAD RETAIL PARK

The immediate environ is of a mixed residential and commercial nature, with further food and non-food out of town retailing at Apsley Mills approximately 1/3 mile south east of London Road Retail Park.

Hemel Hempstead is under supplied in terms of out of town retail floor space per capita, with an existing total of approximately 279,000 sq ft.

Hemel Hempstead is under supplied in terms of out of town retail floor space per capita, with an existing total of approximately 279,000 sq ft. Apsley Mills Retail Park Approximately 1/3 mile south east of London Road Retail Park is Apsley Mills Retail Park which comprises circa 60,000 sq ft of food retail and 97,000 sq ft of non-food retail. Occupiers on the scheme include Sainsbury’s, Homebase, Comet, Argos, Carpetright and Currys, with the highest rent currently on the scheme being a letting to Argos at £24.00 per sq ft with effect from February 2005 which is now historic. Dunelm and Wickes Adjacent to Apsley Mills Retail Park are two standalone units of circa 35,000 sq ft and 25,000 sq ft let to Dunelm and Wickes respectively, whilst approximately ¼ mile north of London Road Retail Park fronting the A4114 is a standalone B&Q DIY unit of circa 31,000 sq ft. Jarman Fields Retail Park The Ladbroke Group were recently granted consent for circa 70,000 sq ft of bulky goods retail warehouse floor space at Jarman Fields, fronting the A41 St Albans Road and adjacent to Jarman Fields Leisure Park and a Tesco foodstore.

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

A42

51 L OND

This scheme was developed as two units constructed of steel portal frame comprising brickwork to the front elevations with internal block work walls, together with lined and insulated steel profile cladding to an eaves height of approximately 6m. The McDonald’s unit comprises a former public house of traditional brickwork construction under a tile covered roof.

E RO AD RSID

The site as shown red is held freehold.

Reserved matters planning consent was granted in June 1997 with the property benefiting from a flexible consent subject to a condition excluding the sale of clothing, footwear, toys or food (except ancillary clothing or footwear for DIY, motoring or cycling activities). The retail warehouse units can therefore be used for the sale of a wide variety of goods and for retailers such as Argos and Boots as well as traditional bulky occupiers. The unit occupied by McDonald’s benefits from an A3 food consent.

BOTLEY ROAD RETAIL PARK OXFORD

PLANNING

RIVE

TENURE

ROA

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Externally to the front and side of the retail warehouse units there is a customer car park, which is accessed directly from London Road and also provides service access to the rear of the retail warehouse units. There is car parking provision for some 159 vehicles providing a ratio of 1:227 sq ft.

CHANNON RETAIL PARK EASTLEIGH

DESCRIPTION

MARSH MILLS RETAIL PARK PLYMOUTH

LONDON ROAD RETAIL PARK | HEMEL HEMPSTEAD.

Tenant ft2

Total Area Lease Start

Term Date

Expiry Review

Next Rent (p.a.)

Rent (psf)

ERV (p.a.)

ERV

Unit A

Staples1

11,055

03/02/03

28/09/20

05/02/08

£284,666

£25.75

£284,666

Unit B Halfords

10,098

25/12/95

24/12/20

25/12/20

£218,483

£21.64

£25.75

£260,024

Unit C

Pets at Home

11,010

09/07/07

08/07/22

09/07/12

£283,508

£25.75

£283,508

Restaurant

McDonald’s

3,880

24/06/02

23/06/27

24/06/27

£111,000

£25.77

£28.35

£110,000

£896.657

£938,197

Total 1 2

36,043

2008 Rent Review outstanding. Landlord to provide top up until settlement at a rent of £284,666 pa. Current rent is £187,935 pa. 2007 Rent Review outstnading. Landlord to provide top up until settlement at a rent of £110,000 pa. Current rent is £100,000 pa.

Tenants’ covenants - LONDON ROAD RETAIL PARK Tenant Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

Staples UK Ltd

28/01/06 29/01/07

- £279.16m

- (£4.45m)

£58.87m £57.37m

Halfords Ltd

30/03/07 31/03/06

£744m £682m

£101.2m £77m

£185.5m (£56m)

5A1

Pets at Home Ltd

29/03/07 30/03/06

£303.15m £272.23m

£38.95m £32.17m

£11.95m £7.4m

3A2

McDonald’s Restaurants Ltd

31/12/06 31/12/05

£1.10bn £1.10bn

£28.45m £36.95m

£80.01m £37.63m

5A1

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

PROPOSAL

The rent review on unit 1 which is let to Staples is outstanding with effect from 5th February 2008 and we are of the opinion that the estimated rental value is as stated in the tenancy schedule, being £25.75 per sq ft. This is based on the letting of Unit 3 to Pets at Home in July 2007 at a rent of £25.75 per sq ft.

We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £14,130,000, which assuming the settlement of the outstanding rent reviews at our opinion of ERV will provide the following yield profile:

The rent review on unit 4 which is let to McDonald’s is outstanding from 25th September 2007 and we expect this to be settled at £110,000 per annum equating to £28.35 per sq ft.

Initial Yield

6.00%

Equivalent Yield

6.24%

Revisionary Yield

6.28%

ENVIRONMENTAL

The above yield profile is based upon standard purchaser’s costs of 5.7625%.

RPS Group has undertaken a desktop environmental survey of the site and a copy of their report is available on request.

ASSET MANAGEMENT

BOTLEY ROAD RETAIL PARK OXFORD

Immediately adjacent to unit 3 is a site which is currently in use as a lorry park which subject to planning could provide an extension to the existing site and a new unit of circa 10,000 sq ft. Previous discussions were held with the owners and strong tenant interest at the time was shown by PC World.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

ESTIMATED RENTAL VALUE

CHANNON RETAIL PARK EASTLEIGH

Immediately adjacent to unit 3 is a site which subject to planning could provide an extension to the existing site and a new unit of circa 10,000 sq ft.

MARSH MILLS RETAIL PARK PLYMOUTH

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

70,601 sq ft

BOTLEY ROAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

BOTLEY ROAD RETAIL PARK BOTLEY ROAD, OXFORD OX2 0HH

BOTLEY ROAD RETAIL PARK | OXFORD

Key Features/Opportunities n Affluent Thames Valley town n Main retail warehouse location serving the catchment n Downsize Currys unit to circa 20,000 sq ft and re-let prominent unit of circa 10,000 sq ft fronting Botley Road, and re-gear Currys unit to fixed increases

A420

n Acquire adjoining industrial scheme and integrate with PC World and Carpetright to increase traffic flow and develop additional space and massing n Guaranteed fixed increases on the Comet and Land of Leather units

A420

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

Oxford is a major commercial centre in the Thames Valley, as well as being a renowned university city and is located approximately 56 miles north west of London and 65 miles south of Birmingham.

CATCHMENT/DEMOGRAPHICS

The city is situated immediately adjacent to the M40 motorway with the town centre being approximately 8 miles west of Junction 8 which links to the A40, which forms the northern section of the town centre ring road and which in turn leads west to Cheltenham. Junction 9 of the M40 motorway lies 10 miles to the north and is accessed via the A34.

CACI calculate that within a 20 minute drive time of the property there is a resident population of 255,654 persons (2001 census). The city of Oxford is home to one of the most prestigious universities in England and benefits from a particularly attractive demographic profile as detailed below:

There is a direct rail service to London Paddington with a fastest journey time of 1 hour, whilst Heathrow International Airport lies 45 miles south east of the town.

Chipping Norton

Bicester

A44 J9

A41

A34

Burford A40

OXFORD

BOTLEY ROAD

J8A

RETAIL PARK

M40

GB (%)

Economically active

66.5

66.4

AB Higher and Intermediate

33.3

24.9

Higher Qualifications

32.2

20.4

9.4

5.0

Households with 2 Cars 1

17.9

23.1

Owner Occupied Homes 1

56.6

68.3

Higher Professional Occupations

Based upon urban area

The strength of Oxfordâ&#x20AC;&#x2122;s local economy is also demonstrated by the fact that the unemployment rate as at October 2007 stood at only 0.9% as compared to the GB average of 2.2%.

BOTLEY ROAD RETAIL PARK OXFORD

Botley Road is the primary arterial road into Oxford and represents the main out of town retail location serving the city

Catchment Area (%)

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Buckingham

CACI Groups

CHANNON RETAIL PARK EASTLEIGH

LOCATION

A4010

A420

Benson

20 minute drive time

Didcot

Wantage

A34

MARSH MILLS RETAIL PARK PLYMOUTH

Faringdon

The scheme benefits from a flexible non food planning consent. This would allow a wide range of occupiers such as Boots, Mothercare World and JJB Sports to trade from the scheme. 44

BOTLEY ROAD RETAIL PARK | OXFORD

OUT OF TOWN RETAIL IN OXFORD

SITUATION Botley Road is the primary arterial road into Oxford and represents the main out of town retail location serving the city, with the subject property forming part of a larger scheme which extends to circa 240,000 with occupiers including Wickes, Dreams, Argos, Toys R Us, Jewson, PC World and Carpetright. Botley Road is generally a mixed use commercial location interspersed with some residential development.

BOTLEY ROAD RETAIL PARK

Immediately to the west of the scheme are a number of small office developments together with light industrial units. Further to the west, adjacent to the junction of Botley Road and the A34 is Seacourt Tower which comprises one of Oxford’s major office developments together with an adjoining retail park.

The city of Oxford is home to one of the most prestigious universities in England and benefits from a particularly attractive demographic profile.

PMA estimate that Oxford has approximately 870,000 sq ft of out of town non food retail floor space, which we summarise below. Botley Road Botley Road Retail Park forms part of the main retail warehouse pitch in the town, accounting for approximately 30% of floor space provision. Immediately adjacent to the scheme are a number of individual units which following recent works now all benefit from an integrated car park. Occupiers include Wickes, Toys “R” Us, Dreams, Argos and Jewson, whilst to the east is a two unit development occupied by PC World and Carpetright. Rents range from between £25.00 per sq ft to £27.50 per sq ft. Seacourt Tower Retail Park Approximately 1/3 mile west of Botley Road Retail Park is Seacourt Tower Retail Park which extends to approximately 83,000 sq ft. The scheme is currently occupied by Habitat, Allied Carpets and Homebase. Rental levels on the scheme currently stand at around £22.00 per sq ft, with reviews outstanding from 2007. Oxford Shopping Park To the south of the city centre at the Cowley Junction of the Eastern Bypass is Oxford Shopping Park which extends to approximately 79,000 sq ft arranged in a ‘L’ shape of 5 units and is occupied by Mothercare, Marks and Spencer, Boots, Next and Sports World. Immediately adjacent is a Tesco foodstore of approximately 70,000 sq ft. Highest rents on the scheme are currently £42.00 per sq ft following the most recent letting to Marks and Spencer. Templars Shopping Park Fronting the B4495 Curch Cowley Road approximately 2/3 mile north east of Oxford Shopping Park is the Templars Shopping Park which extends to circa 138,000 sq ft of non food retail floor space. The scheme is occupied by tenants including B&Q, Halfords, Comet, JJB Sports, Matalan and TK Maxx. Highest rents on the scheme currently stand at around £32.00 per sq ft

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

TENURE

PLANNING

The scheme was originally developed as two units constructed of steel portal frame to an eaves height of approximately 6m, with unit 2 (former Courts) having been recently substantially refurbished.

The site as shown red on the scheme is held freehold.

Planning consent was originally granted in October 1986 for the development of two retail warehouse units of approximately 72,500 sq ft. The scheme benefits from a flexible non food planning consent restricting only the sale of fashion goods, fashion accessories or leather goods. This consent would allow a wide range of occupiers such as Boots, Mothercare World and JJB Sports to trade from the scheme.

The front elevations of the Currys and Harveys units are clad with brickwork and extensive glazing whilst the other units are clad in profiled timber weatherboard.

BOTLEY RO AD

There is car parking provision for some a total of 252 vehicles providing a ratio of 1:280 sq ft.

PROPOSED

BOTLEY ROAD RETAIL PARK OXFORD

GARDEN CENTRE

LAMARSH

ROAD

BOTLEY RO AD

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

The scheme is accessed either directly off Lamarsh Road which leads to Botley Road. The customer car park is fully linked with car park serving the adjacent units occupied by Toys “R” Us, Argos and Comet.

CHANNON RETAIL PARK EASTLEIGH

DESCRIPTION

MARSH MILLS RETAIL PARK PLYMOUTH

TENANCIES AND ACCOMMODATION BOTLEY ROAD RETAIL PARK | OXFORD

The property provides the following approximate gross internal areas measured in accordance with the RICS Code of Measuring Practice (5th Edition) and is let in accordance with the tenancy schedule set out below. Tenancy schedule - BOTLEY ROAD RETAIL PARK Unit Tenant Unit 1

Total Area ft2

DSG Retail Ltd

Unit 1 (Part) Harveys Furnishing Group

Lease Term Start

Expiry Date

Next Rent Review

Rent (p.a.)

Rent (psf)

ERV (psf)

ERV (p.a.)

31,674

22/08/01

21/08/26

22/08/11

£871,035

£27.50

£871,035

7,916

24/06/92

21/03/18

25/03/08

£205,816

£26.00

£205,816

Unit 2

Land of Leather

10,000

28/02/07

27/02/22

28/02/12

£255,000

£25.50

£27.00

£270,000

Unit 3

Comet Group Plc

12,989

09/10/07

08/10/22

09/10/12

£337,714

£26.00

£29.42

£382,136

Unit 4

Multiyork

4,045

29/09/06

28/09/21

29/09/11

£111,237.50

£27.50

£111,250

Unit 5

Maplin

3,977

24/06/06

24/06/21

24/06/11

£111,238

£27.97

£111,238

£1,892,041

£1,951,463

1,2

Total

70,601

Fixed Uplift YR2 @ £255,000p.a.; YR3 @ £260,000p.a.; YR4 @ £265,000p.a.; YR5 @ £270,000p.a. Tenants option to determine on 23/02/2012 subject to 3 months notice and a payment to the landlord of£400.000. 3 Fixed Uplift to £382,136 p.a. at year 5 and to £432,404 pa. at year 10. 1 2

Tenants’ covenants - BOTLEY ROAD RETAIL PARK Tenant Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

DSG Retail Ltd

28/04/07 29/04/06

£4.50bn £4.20bn

£219.53m £77.20m

£861.11m £732.42m

5A1

Harveys Furnishing Group Ltd

10/06/06 10/05/05

- -

(£46.75m) (£46.75m)

Land of Leather Ltd

29/03/07 30/07/06

£239.98m -

£16.13m (£1.04m)

£10.96m £6.30m

3A2

Comet Group Plc

31/01/07 31/01/06

£1.6bn £1.45bn

£55.6m £4.8m

£47.28m (£16.42m)

5A1

Multiyork York Furniture Ltd

01/10/06 02/10/05

£45.40m £49.64m

£0.11m £1.65m

£16.76m £16.80m

4A1

Maplin Electronics Limited

30/12/06 31/12/05

£149.47m £128.29m

£21.84m £16.49m

£36.86m £22.32m

5A1

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

Botley Road Retail Park forms part of the main retail warehouse pitch in the town, accounting for approximately 30% of floor space provision.

We are of the opinion that the scheme has a current ERV as set out in the tenancy schedule.

A420

ENVIRONMENTAL

CHANNON RETAIL PARK EASTLEIGH

ESTIMATED RENTAL VALUE

RPS Group has undertaken a desktop environmental survey of the site and a copy of their report is available for interested parties.

Currently we believe that Currys are over sized and that this presents the opportunity to downsize them into a unit of circa 20,000 sq ft, enabling the landlord to re-let a highly prominent unit adjacent to Botley Road, increasing the overall rental level and potentially agreeing RPI increases with Currys.

We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price in the region of £29,820,000. Initial Yield

6.00%

Equivalent Yield

6.17%

Revisionary Yield

6.19%

MARSH MILLS RETAIL PARK PLYMOUTH

The above yield profile is based upon standard purchaser’s costs. of 5.7625%.

BOTLEY ROAD RETAIL PARK OXFORD

PROPOSAL

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Asset Management

The HURRICANE PORTFOLIO

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES CHANNON RETAIL PARK EASTLEIGH

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

43,295 sq ft

BOTLEY ROAD RETAIL PARK OXFORD

RETAIL PARK INVESTMENT

MARSH MILLS RETAIL PARK PLYMOUTH

(PHASE II)

MARSH MILLS RETAIL PARK PLYMOUTH PL6 8AY

MARSH MILLS RETAIL PARK | PLYMOUTH

Key Features/Opportunities n Prime pitch, highly accessible n Affluent catchment n Long unexpired term n Development potential on adjacent site n Reversionary following settlement of rent reviews on Marsh Mills Retail Park (Phase I)

A38

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW

CATCHMENT/DEMOGRAPHICS

Plymouth is the regional centre of Devon and Cornwall and is the largest conurbation in the South West. It lies 32 miles west of Torquay and 44 miles south west of Exeter.

CACI estimate that there is a population in excess of 287,311 within a 20 minute drive time contour from the subject property. The attractive attributes of this catchment population are highlighted below. CACI Groups

Morwell

Coombe Dupath

Yelverton

A388

DARTMOOR

A386

Derriford Saltash

PLYMOUTH Torpoint

South Brent

Plympton

Ivybridge A38

Hunsdon

65.50

66.40

Skilled manual works

21.7

18.30

On state benefit

6.10

6.70

Retired

13.90

13.60

Aged 15-54

55.00

54.70

Economically active

The subject property is situated in arguably the best out of town retail location serving Plymouth and the surrounding catchment population.

Levels of car ownership within the urban area and the wider district area are above the national average with 48.4% of households within the urban area having one car, as compared to the GB average of 43.8% (2001 Census). The ‘Claimant Count Unemployment Rate’ has been consistently below the national average for the past 5 years and as at October 2007 stood at 1.8% as against the national average of 2.2%.

MARSH MILLS RETAIL PARK PLYMOUTH

20 minute drive time

MARSH MILLS

RETAIL PARK

GB (%)

BOTLEY ROAD RETAIL PARK OXFORD

PHASE II

A38

Catchment Area (%)

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

The A38 links to the M5 motorway and national motorway network 40 miles to the north east. As well as being a major port and naval base, the city has now developed a strong and varied economic base.

CHANNON RETAIL PARK EASTLEIGH

LOCATION

The City of Plymouth has developed as the south west region’s principal commercial and economic centre being situated at the intersection of the A38, A388 and A379.

Gunnislake

CUCKOO BRIDGE RETAIL PARK DUMFRIES

The subject property forms the second phase of Marsh Mills Retail Park, which is situated on Longbridge Road, fronting the A38 dual carriageway

The subject property forms part of Plymouth’s largest out of town retail destination with the adjacent Marsh Mills Retail Park Phase I, which extends to approximately 112,269 sq ft 52

MARSH MILLS RETAIL PARK | PLYMOUTH

RETAIL WAREHOUSING IN PLYMOUTH

SITUATION The subject property forms the second phase of Marsh Mills Retail Park, which is situated on Longbridge Road, fronting the A38 dual carriageway, being the principal road leading from the M5 motorway through Devon into Cornwall. The scheme occupies an exceptionally prominent site immediately to the north of the A38 dual carriageway, midway between the Marsh Mills and Forder Valley roundabouts. The subject property forms part of Plymouth’s largest out of town retail destination with the adjacent Marsh Mills Retail Park Phase I, which extends to approximately 112,269 sq ft and is occupied by DFS,

PC World, Carpetright, Halfords, Furniture Village and Homebase. Immediately to the south of the subject property, is a large Vospers Ford dealership. In the longer term there are proposals for additional retail development on this car dealership site. To the north are a number of industrial/warehouse developments. Access/egress is via a roundabout from Longbridge Road, which serves Marsh Mills Retail Park Phases I and II and the adjacent car dealership. In summary, the subject property is situated in arguably the best out of town retail location serving Plymouth and the surrounding catchment population.

Other retail warehousing in Plymouth comprises a variety of cluster and standalone developments and whilst there is a reasonable supply of retail warehousing in Plymouth, the majority of the space is secondary. Detailed below are the city’s out of town retail provision. Crownhill Road Situated approximately 4 miles north west of the city centre is a standalone Matalan unit (48,221 sq ft) adjacent to which is a Tesco foodstore and district centre together with nearby Magnet and Lidl units. Tavistock Road Approximately 2 miles north west of the subject property at Crownhill, there is a B&Q Warehouse (120,000 sq ft) situated on Tavistock Road (A386).

PHASE II

MARSH MILLS

RETAIL PARK

The scheme occupies an exceptionally prominent site immediately to the north of the A38 dual carriageway.

Plymouth Road Situated adjacent to Plymouth Road, east of Marsh Mills are two more secondary schemes being; Coypool Retail Park (115,000 sq ft) arranged as a cluster of retail warehouse units occupied by B&Q, Harveys, Comet and Currys; and Erill Retail Park (65,000 sq ft), occupied by Focus, Allied Carpets and Plymco. Laira Bridge This is an older secondary scheme comprising 2 units extending to circa 59,000 sq ft, currently occupied by MFI and Carpetright. Exeter Street Adjacent to Exeter Street, immediately to the south of the city centre, is a two unit scheme extending to around 79,000 sq ft, comprising a Wickes and former Courts unit.

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

TENURE

PLANNING

The scheme was constructed in 1999/2000 and forms a purpose built, modern retail warehouse development comprising two main attached units, one being occupied by Wickes as a DIY/home improvement centre and the other by Land of Leather, together with a detached smaller “pod” unit at the front of the site occupied by Carphone Warehouse and Bathstore.com.

The site as shown edged in red on the scheme layout plan is held freehold.

The property benefits from a bulky goods planning consent with the range of goods to be sold restricted to DIY, home improvement goods and furnishing, electrical goods, carpets, furniture, auto parts, cycles, garden centre proposed and all accessories or goods associated ancillary to the foregoing uses.

To the front of the scheme is a customer car park providing approximately 195 spaces, equating to an overall ratio of 1 per 222 sq ft. There is a dedicated concrete surfaced service yard situated to the rear of the Land of Leather unit providing access to both stores. To the rear of this is an enclosed builders’ compound area, which is demised to Wickes.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

Wickes benefit from a two-storey amenity block and we are advised that Land of Leather have installed an extensive trading mezzanine. There is also a trading mezzanine extending to approximately 1,400 sq ft in the unit occupied by Bathstore.com.

CHANNON RETAIL PARK EASTLEIGH

DESCRIPTION

BOTLEY ROAD RETAIL PARK OXFORD MARSH MILLS RETAIL PARK PLYMOUTH

MARSH MILLS RETAIL PARK | PLYMOUTH

Total Area ft2

Unit 1

Wickes

Unit 2

Land of Leather

Pod

Carphone Warehouse 1

Total 1

Lease Term Start

Expiry Date

Next Rent Review

Rent (p.a.)

Rent (psf)

ERV (psf)

ERV (p.a.)

28,795

15/08/99

14/08/24

15/08/09

£575,900

£20.00

£21.50

£619,093

10,000

14/02/00

13/02/25

14/02/10

£245,000

£24.50

£25.50

£255,000

4,500

16/08/00

15/08/20

16/08/10

£123,200

£27.38

£28.25

£127,125

£944,100

£1,001,218

43,295

Approximately 2,100 sq ft ground floor GIA sublet to Bathstore on coterminous lease at rent of £71,250 pa. with the 1,400 sq ft mezzanine valued at 33.3% of the ground floor rate at review.

Tenants’ covenants - MARSH MILLS RETAIL PARK Tenant Date

Turnover (£’000s)

Pre Tax Profit (£’000s)

Net Worth (£’000s)

D&B Rating

Wickes Building Supplies Ltd

30/12/06 31/12/05

847,466 964,414

40,163 18,517

82,822 24,131

5A1

Land of Leather Ltd

29/07/07 02/04/06

239,980 193,859

16,126 14,616

10,950 7,383

3A2

Carphone Warehouse UK Ltd

01/04/06 01/04/05

9,018 110,977

3,345 109,531

106,063 132,718

5A1

CORNERHOUSE & HINDPOOL RETAIL PARKS | BARROW CUCKOO BRIDGE RETAIL PARK DUMFRIES

ESTIMATED RENTAL VALUE

ASSET MANAGEMENT

The rental levels set on the main retail units were agreed at rent review in 2004 and 2005 at £20.00 per sq ft on the Wickes unit and £24.50 on the Land of Leather unit.

As indicated above, there have been discussions and proposals to undertake an extension to the subject property by way of the development of up to 80,000 sq ft of retail accommodation on the adjoining Vospers Car Dealership. We believe that in due course this development will proceed adding further retail massing to the location and providing evidence supporting rental growth.

On the basis of the likely settlement of the rent reviews on the Marsh Mills Retail Park, our opinion is that their correct ERV is as shown on the tenancy schedule.

ENVIRONMENTAL

PROPOSAL We are instructed to seek offers on a subject to contract and exclusive of VAT basis at a price inthe region of £14,880,000. Initial Yield

6.00%

Equivalent Yield

6.33%

Revisionary Yield

6.36%

The above yield profile is based upon standard purchaser’s costs of 5.7625%.

BOTLEY ROAD RETAIL PARK OXFORD

Part of the pod unit extending to a ground floor area of 2,100 sq ft, became vacant following the financial failure of Klaussner and this unit has then been let to Bathstore.com at a rent of £71,250 per annum, this unit has the benefit of a 1,400 sq ft mezzanine which is reviewed to 33.3% of the ground floor rate. On this basis the rent paid by the subtenant equates to £27.76 per sq ft.

It is important to note that the unit occupied by Land of Leather benefits from an extensive trading mezzanine. Therefore, if this unit became available we believe it would be highly attractive to a range of retailers, in particular furniture retailers such as SCS who do not yet have representation in Plymouth.

LONDON ROAD RETAIL PARK HEMEL HEMPSTEAD

All of the units on the adjacent main retail park are subject to outstanding rent reviews from March 2006 to June 2007 from passing levels of £20.00 per sq ft on the Homebase unit (37,140 sq ft), up to £23.00 per sq ft on Furniture Village (10,000 sq ft). Whilst none of these rents reviews have currently been settled, on the basis of evidence in other strong locations in the South West, most particularly at Rydon Lane in Exeter where the highest letting was to Land of Leather in 2005 at £35.00 per sq ft, the landlords are anticipating settlements of £28.50 per sq ft in respect of the smaller units of 10,000 sq ft and circa £23.50 per sq ft in respect of the Homebase unit.

CHANNON RETAIL PARK EASTLEIGH

Plymouth is the regional centre of Devon and Cornwall and is the largest conurbation in the South West.

RPS Group have carried out an environmental survey of the site. A copy of this report is available on request. MARSH MILLS RETAIL PARK PLYMOUTH

Wilkinson Williams Mellier House 26a Albemarle Street London W1S 4HY

Miles Marten T 020 7317 3777 F 020 7495 5432 E m.marten@wilkinsonwilliams.co.uk Drew Moore T 020 7317 3789 F 020 7495 5432 E d.moore@wilkinsonwilliams co.uk

www.wilkinsonwilliams.co.uk Hurricane Portfolio | April 08 | Ref: 104996