The Saturn Portfolio

CHRISTCHURCH Retail Park, Christchurch // B&Q Warehouse, St Margaret’s Way, Leicester // Dunstable Road Retail Park, Luton // Cairngorm Retail Park, Winterhill, Milton Keynes // Mountbatten Retail Park, Southampton // B&Q/Halfords, Tonbridge THE SATURN PORTFOLIO

A portfolio of institutional retail warehousing located in the southern half of the UK PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 2

CHRISTCHURCH LEICESTER LUTON

M90 MILTON KEYNES SOUTHAMPTON TONBRIDGE

M8 EDINBURGH GLASGOW M77

M74

NEWCASTLE UPON TYNE

CARLISLE SOUTH SHEILDS M6 A1 (M) HARTLEPOOL DURHAM A66 (M) MIDDLESBROUGH

A1 (M) YORK M6 BRADFORD LEEDS BLACKPOOL HULL M65 M62 M62 GRIMSBY LIVERPOOL MANCHESTER M56 SHEFFIELD

STOKE-ON-TRENT NOTTINGHAM M6 DERBY CHRISTCHURCH RETAIL PARK, BARRACK ROAD, CHRISTCHURCH BH23 2BN LEICESTER

M6 BIRMINGHAM B&Q WAREHOUSE, ST MARGARET’S WAY, LEICESTER LE4 0BG COVENTRY MILTON KEYNES DUNSTABLE ROAD RETAIL PARK, LUTON LU4 8EZ M1 M50 M11 LUTON A1 (M) M5 CAIRNGORM RETAIL PARK, WINTERHILL, MILTON KEYNES MK6 1AZ M40 M4 M4 SWINDON LONDON MOUNTBATTEN RETAIL PARK, WESTERN ESPLANADE, SOUTHAMPTON SO15 1BA CARDIFF BRISTOL M25 M2 M3 B&Q/HALFORDS, CANNON LANE, TONBRIDGE, KENT TN9 1BQ GUILDFORD M20 M23 TONBRIDGE SOUTHAMPTON M5 CHRISTCHURCH BRIGHTON EXETER BOURNEMOUTH CHRISTCHURCH LEICESTER LUTON

MILTON KEYNES SOUTHAMPTON TONBRIDGE INVESTMENT HIGHLIGHTS THE SATURN portfolio PAGE 4 INVESTMENT HIGHLIGHTS THE SATURN PORTFOLIO PROVIDES A UNIQUE OPPORTUNITY TO ACQUIRE A SIZEABLE PORTFOLIO OF INSTITUTIONAL QUALITY RETAIL WAREHOUSING LOCATED IN THE SOUTHERN HALF OF THE UK. THE MAJORITY OF THE SCHEMES COMPRISE MODERN PURPOSE BUILT RETAIL PARK ACCOMMODATION PROVIDING A SUCCESSFUL TRADING ENVIRONMENT.

PRIME LOCATIONS WIDE RETAILER BASE STRONG CASHFLOW POTENTIAL FOR CAPITAL AND RENTAL GROWTH All the subject properties are The portfolio is let to a The portfolio is well let with a 48% of the current total income situated within approximately diversified blend of national out current occupancy rate of 98% provides for fixed or RPI related 100 miles of Central London, of town retailers with only one and an average unexpired term income within the next 5 years, with the majority being in void across the portfolio. 68% of of 9.4 years, assuming break while other asset management the South of England. All the portfolio income is made up clauses and 10.5 years ignoring opportunities exist across the the schemes are situated in from the following tenants: break clauses. 87% of the leases portfolio to increase capital and substantial and/or wealthy B&Q 25% have over 8 years to run. grow rents. conurbations benefiting DSG Retail 15% from significant catchment Assuming the sole vacant unit Carpetright 8% Income by Covenant Strength Unexpired Term (years) populations. is let, and with the benefit of the Homebase 8% fixed and RPI linked (assuming DFS 6% <5 a3 RPI at 3%) increases, the annual 5–8 >15 Halfords 6% a2 income will rise from £7,532,182

3a1 to £8,291,946 by the end of 2017. The remaining 32% of the 4a1 11–15 portfolio income is made up of

5a1 14 tenants with no one tenant 8–11 generating more than 5% of the total income. PORTFOLIO OVERVIEW THE SATURN PORTFOLIO PAGE 5 PORTFOLIO OVERVIEW

GIA Unexpired term* Current rent Current rent % of total Comments (Sq ft) (Years) (per annum) (per sq ft) portfolio income

Christchurch 101,107 8.5 £1,943,377 £19.22 26% Wickes fixed uplift in March 2014 and Carpetright fixed uplift in September 2016. CHRISTCHURCH Retail Park

5 yearly compounded rent review linked to RPI capped and collared at 0% and Leicester 77,300 15.0 £1,325,490 £17.15 18% B&Q Warehouse 3% per annum respectively.

Luton 46,850 9.8 £1,015,000 £21.66 13% DSG fixed uplift in September 2017. Vacant unit to let. Dunstable Road Retail Park

Carpetright fixed uplift in December 2014 and DFS fixed uplifts in June 2016 Milton Keynes 57,432 10.0 £1,407,213 £24.50 19% Cairngorm Retail Park & 2021.

Southampton 52,159 9.4 £987,102 £18.92 13% Wren fixed uplift in April 2013 and DSG fixed uplift in October 2016. Mountbatten Retail Park

Tonbridge 57,397 10.7 £854,000 £14.88 11% – B&Q / Halfords

392,245 sq ft 10.5 years £7,532,182 £19.20 100% Institutional quality portfolio of retail warehousing in Southern England

*Excluding break options

TOTAL NUMBER OF ASSETS TOTAL CURRENT INCOME TOTAL GIA AVERAGE UNEXPIRED LEASE TERM 6 £7,532,182 392,245 10.5 years per annum sq ft (ignoring break options) CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 6 CHRISTCHURCH RETAIL PARK BARRACK ROAD CHRISTCHURCH BH23 2BN CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 7

INVESTMENT SUMMARY

Situated in the affluent south coast town of Christchurch, benefiting from a catchment population of over 300,000 people within a 20 minute drive time.

Located in a highly prominent and accessible position just west of Christchurch railway station, Christchurch Retail Park fronts Barrack Road (A35), the main road linking Christchurch to Southampton and Bournemouth.

Purpose built modern retail warehouse park extending to approximately 101,107 sq ft (9,393 sq m).

Restricted A1 (non-food) planning consent.

Freehold.

The property is let to Homebase, Pets at Home, Comet, Harveys, Carpetright, Halfords, Maplin Electronics, Wickes Kitchens & Bathrooms and Pizza Hut.

Average weighted unexpired term of 8.5 years.

The current rent is £1,943,377 per annum (overall rent of £19.22 per sq ft) with fixed uplifts in 2014 and 2016. CHIPPENHAM BRISTOL A346 M4 READING CLEVEDON CHRISTCHURCH Retail A4Park Christchurch THE SATURN PORTFOLIO PAGE 8 NEWBURY BATH M5 WESTON-SUPER-MARE A38 A339 A33

A338 BASINGSTOKE A37 ANDOVER A338 A361 A303 A36 A31 A39 M3 E V F BRIDGEWATER O A R I

A3060 R G R

I E M SALISBURY V H I WINCHESTER E T L A303 R E

W R TAUNTON O SHAFTTESBURY A36 A A EASTLEIGH Y D A350 A3 A358 A354 A338 CA T YEOVIL ST H M27 L E

E G

L R A303 A O

SOUTHAMPTON N V

WATERLOOVILLE E E A31 E CHRISTCHURCH RETAIL PARK AS A338 A27 T A3060 A35

E A37 PORTSMOUTH B A B3073

U R R

N A A348 C CHRISTCHURCH E A35 K V R

A35 A O LYME REGIS BOURNEMOUTH A T D DORCHESTER NEWPORT S SS R D A A35 CHRISTCHURCH P U A Y B H O CH A354 R R N U N H E D C A ST D I A G R L CH WEYMOUTH O N O I R BA H L RR A 35 AC H C I K ROAD L C F B3059 R O H U R IG H D H C L ET T A D S TRE IS N R E A H C O C R D A R A N POKESDOWN S L R O O E R IG U U T H T R R O H O O T B A F D Location Situation O U S Retail Warehouse U A R E N B E Christchurch lies on the south coast Christchurch Retail Park is situated on the R A35 O TUCKTON ROA A UE D D VEN ERY A of England in the county of Dorset, convergence of Barrack Road (A35) and the CARB Pa Provision in B3073, to the west of Christchurch Railway approximately 5 miles east of Bournemouth, rkwood ro a B3059 B 25 miles south west of Southampton Station. The A35 is the main road linking RO d A D B3059 W and 105 miles south west of London. Christchurch to Southampton to the east AY

D A O R Christchurch Christchurch has excellent road and Bournemouth to the west. The B3073 N BE W LLE DC O SOUTHBOURNE OVE VU A HU D communications linking directly to the connects the town north to Bournemouth RCL E O R L IFF DRIVE R CH R I OAD W There is a limited amount of competing D Bournemouth/Poole conurbations via the Airport and to the A338, which travels north A LM EN accommodation in the town, which extends A35, which also connects north east to to Salisbury. Y R O D to the following: Southampton and the M3 via the M27. A The property is located in a mixed use Meteor Retail Park Christchurch is served by a mainline railway area with light industrial, small retail units 70,658 sq ft (6,564 sq m) station with rail services between London and residential dwellings all located within Tenants include PC World and Bathstore Waterloo, Southampton and Bournemouth the vicinity of the retail park. The scheme with top rents at £14.50 per sq ft. The park stopping at Christchurch, with the fastest adjoins a Landrover car dealership. has a bulky goods consent. journey time to London (Waterloo) of approximately 1 hour 50 minutes. Stony Lane Retail Park c.55,000 sq ft (5,110 sq m) Bournemouth International Airport is Tenants include Magnet, Tiles R Us and located only 5 miles to the north of B&Q. Rents range from £7.00 per sq ft to Christchurch providing air travel to and from £10.00 per sq ft. The park has a bulky goods the UK and major European cities. consent with certain exceptions. The town lies at the confluence of the Rivers Currys/Carpetright Stour and Avon, creating a natural harbour 25,052 sq ft (2,327 sq m) and providing the town a thriving focal point Located east of the town centre on Stony for local business that attracts thousands of Lane. Top rents here are £16.50 per sq ft. tourists every year. CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 9

Catchment & Demographics Description Christchurch has a 10 minute drive time Key demographics indicators for Christchurch include: The subject property provides a purpose built “L” shaped terrace catchment population of 84,917 people and of 8 units, let to Homebase, Pets at Home, Comet, Harveys, Maplin a 20 minute drivetime of 307,678 people Christchurch UK Average Electronics, Carpetright, Halfords and Wickes Kitchens & Bathrooms. and is an affluent town highlighted by the % Catchment in AB Social Group 32% 26% Homebase, Comet, Halfords and Harveys benefit from substantial high proportion of the catchment with mezzanine floors used for retail sales. There is also a standalone an AB social grouping, 32%, and the low % Catchment in D or E Social Group 17% 25% A3 unit, which is occupied by Pizza Hut. representation of those classed as D or E The units are of steel portal frame construction with brick elevations, social grade, 17%. % Catchment Owner Occupy 76% 70% glazed frontages and a pitched roof. Access and egress to the park Christchurch benefits from its own harbour, is via Bailey Drive, which itself is accessed off Barrack Road to the and its economy has, therefore, historically north. There is separate servicing to the rear of the terraces, which is been associated with harbour and maritime accessed off the southern end of Bailey Drive. based trade. In the modern era, the harbour The property provides approximately 520 dedicated car parking has helped the town diversify its economy WIMBOURNE ST. GILES A338 spaces, reflecting an attractive car parking ratio of 1 : 194 sq ft to become a thriving tourist destination. A31 VERWOOD LINWOOD LYNDHURST (1 : 18.02 sq m). Within the wider vicinity, Bournemouth The total site area extends to approximately 7.98 acres Airport, and its associated businesses, WITCHAMPTON A35 (3.23 hectares). provides significant employment in and RINGWOOD WEST MOORS A31 BURLEY around the Bournemouth area, specifically BROCKENHURST Christchurch. This sector is earmarked to A338 WIMBORNE expand over the next few years. MINSTER A348 A31 FERNDOWN

CORFE A341 NEW MILTON MULLEN A35 A3060 UPTON CHRISTCHURCH A337 BOURNEMOUTH MILFORD ON SEA A35 POOLE

20 MINUTE DRIVETIME CATCHMENT CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 10 Tenancy Schedule

Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) Date term review rent rent (years) (Per Annum) (sq ft)

1 Homebase Ltd 34,840 29/09/1996 25 28/09/2021 8.95 29/09/2016 £590,000 £16.93 Pets City Ltd 2 10,098 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,960 £20.00 Being assigned to Pets at Home Ltd. t/a Pets at Home

3 Comet Group Ltd 10,095 29/09/1996 25 28/09/2021 8.95 29/09/2016 £201,900 £20.00

4 Harveys Furnishing Ltd 10,000 29/09/1996 25 28/09/2021 8.95 29/09/2016 £200,000 £20.00

5 Maplin Electronics Ltd 5,070 18/09/2007 15 17/09/2022 9.92 18/09/2012 £126,750 £25.00 Outstanding rent review.

6 Carpetright plc 10,102 29/09/1996 25 28/09/2021 8.95 29/09/2016 £242,897 £24.04 Fixed uplift on 20/09/2016 to £268,178 per annum.

7 Halfords Ltd 7,579 29/09/1996 25 28/09/2021 8.95 29/09/2016 £155,370 £20.50

8 Pizza Hut (UK) Ltd 3,194 23/05/1998 23 28/09/2021 8.95 23/05/2013 £72,000 £22.54

9 Wickes Building Supplies Ltd 10,129 01/03/2010 5 28/02/2015 2.37 01/03/2014 £145,000 £14.32 Fixed uplift on 01/03/2014 to £180,000 per annum.

Sub station SSE Services plc 0 09/01/1998 60 08/01/2058 45.23 – £0 – Southern Electric Power Wayleave 0 24/12/2001 999 01/01/3001 988.19 – £0 – There is no term on the Wayleave. It is terminable on 6 months’ notice by either party. Distribution Ltd ATM Bank Machine Ltd 0 13/04/2007 6 12/04/2013 0.49 – £7,500 –

Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – Initial 5 year term. Agreement rolls over thereafter. Rent payable to equal 20% of advertising revenue.

TOTALS 101,107 8.5 £1,943,377 £19.22 Planning Tenancies

The property benefits from a restricted A1 (non-food) planning The property is let in its entirety in consent, with specific restrictions. These restrictions include the accordance with the above tenancy sale of food for human consumption (except confectionery), schedule and produces a current rental alcohol, tobacco, clothing, footwear and sports goods, chemist income of £1,943,377 per annum, equating goods, jewellery, books and newspapers and magazines (except to an overall rent of £19.22 per sq ft. where ancillary to the types of goods sold from that unit), toys, The property benefits from an average crockery and glassware (except where this is ancillary to the types unexpired lease term of 8.5 years. of goods sold). The leases to Wickes and Carpetright A planning summary can be provided upon request. benefit from fixed rental uplifts in 2014 and 2016 respectively. Ground Conditions An updated Environmental Report is available upon request. CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 11 Tenants’ Covenants

The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below:

UNIT Tenant Year Sales Turnover Profit/Loss Pre Net Worth D&B Ending (000s) Taxes (000s) (000s) Rating 26/02/2011 £1,457,093 £62,094 £396,948 1 Homebase Ltd 5A1 27/02/2010 £1,477,990 £41,322 £364,856 31/03/2011 £511,576 £75,174 £229,976 2 Pets at Home Ltd 5A1 25/03/2010 £462,646 £65,853 £162,401 30/04/2011 £1,478,201 -£39,555 £43,384 3 Comet Group Ltd 5A1 30/04/2010 £1,586,368 -£2,951 £58,837

4 Harveys Furnishing Ltd 5A2

31/12/2011 £205,025 £24,784 £143,711 5 Maplin Electronics Ltd 5A1 01/01/2011 £213,123 £35,709 £126,437 30/04/2011 £486,800 £6,600 £1,200 6 Carpetright plc 1A2 01/05/2010 £516,600 £22,300 £4,000 01/04/2011 £771,400 £122,000 £350,900 7 Halfords Ltd 5A1 02/04/2010 £817,600 £109,200 £261,500 28/11/2010 £346,174 -£22,185 £11,642 8 Pizza Hut (UK) Ltd 3A1 29/11/2009 £362,549 -£12,122 £31,470 31/12/2011 £981,450 £40,375 £230,250 9 Wickes Building Supplies Ltd 5A1 01/01/2011 £969,052 £48,573 £208,590 Tenants’ Profile Trading Profile / The scheme is fully let to substantial retailers with Harveys Maplin Electronics significant exposure to the UK out of town market. Harveys is one of the largest furniture specialists in Maplin is one of the leading retailers of electronic Asset Management A brief summary of these is set out below: the UK with over 150 stores and are wholly owned goods in the UK with nearly 200 stores across This is the prime retail park in Christchurch Homebase by Steinhoff International, who are now one of the the country and over 2,000 employees. In 2004 top 5 furniture groups in Europe and Australasia, Montagu Private Equity purchased 67% of the and we understand that the tenants Homebase is owned by the Home Retail Group and the largest in Africa providing the backing and company from Graphite Capital. trade well. and is one of the 3 largest DIY retailers in the UK infrastructure of a huge global furniture leader. with more than 300 stores. Homebase serves over Wickes The scheme is well configured and provides 65 million customers per year through its stores and Carpetright Wickes is one of the UK’s leading DIY, home a variety of unit sizes across the park. online services. Carpetright is the UK’s leading retailer of floor improvements and building supplies retailers, The scheme benefits from a generous car coverings currently trading from approximately trading from around 200 stores nationwide. Pets at Home parking ratio and subject to the appropriate 703 stores. The company has a London Stock Wickes Building Supplies Ltd is a wholly owned Pets at Home was acquired by private equity house, planning consents, could accommodate a Exchange listing with a current market capitalisation subsidiary of Travis Perkins plc, a significant KKR in 2010 in a deal worth £955 million and has further pod unit, which would bring further of approximately £460 million. FTSE 250 company. more than 300 pet stores across the UK. footfall to the scheme. Halfords Pizza Hut Comet The former QinetiQ site to the rear of Halfords Ltd are the UK’s leading retailer of Comet is one of the UK’s leading electrical goods Pizza Hut is one of the largest restaurant chains in Christchurch Retail Park is currently being automotive, bicycles and associated products and retailers with 240 stores throughout the UK and the UK and is an international franchise that offers considered for a mixed use development, currently trade from in excess of 467 stores in the has benefitted from the recent demise of Best different styles of pizza and side dishes. Pizza Hut is which has recently received foodstore UK and Ireland. Buys UK operations. As of February 2012, Comet a subsidiary of Yum! Brands Inc, the world’s biggest consent, subject to a section 106. Such a is now owned by private investment partnership restaurant company. scheme would benefit the subject property

OpCapita LLP. significantly, making the area a destination location extending beyond the current catchment. More information regarding this proposed scheme is available upon request. Barrack Retail Park Christchurch THE SATURN PORTFOLIO PAGE 12 EPCs

Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate Energy Performance Certificate 338 338 338 338 Non-Domestic Building Non-Domestic Building Non-Domestic Building Non-Domestic Building

This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document. This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.

Homebase Ltd Certificate Reference Number: Pets at Home Certificate Reference Number: Comet Plc Certificate Reference Number: Rosebys Certificate Reference Number: 1 Bailey Drive 0050-5064-0361-9660-0050 2 Bailey Drive 0050-4041-0341-6340-5090 3 Bailey Drive 0050-3045-0301-4640-2024 4 Bailey Drive 0361-3075-0717-0200-6901 CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH BH23 2BN BH23 2BN BH23 2BN BH23 2BN

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd.

0 2 312 7 2 312 7 1 312 7 2 312 0 1 8 6 6 6 8 6

0 5 4 5 0 6 3 6 EnergySK-250421-359663 Performance Asset Rating EnergySK-632010-698643 Performance Asset Rating EnergySK-006232-667620 Performance Asset Rating EnergySK-200111-659210 Performance Asset Rating

More energy efficient More energy efficient More energy efficient More energy efficient 364 364 364 364

1 1 1 1

6 0 -A+0 0 5 0 - 5 0 6 4 - 0 3 6 1 - 9 6 6 0 - 0 0 5 0 - S K 2 5 0 4 2 1 3 5 9 6 6 3 - D C L G x E P C g e n 2 0 0 8 7 1 -A+0 0 5 0 - 4 0 4 1 - 0 3 4 1 - 6 3 4 0 - 5 0 9 0 - S K 6 3 2 0 1 0 6 9 8 6 4 3 - D C L G x E P C g e n 2 0 0 8 7 9 -A+0 0 5 0 - 3 0 4 5 - 0 3 0 1 - 4 6 4 0 - 2 0 2 4 - S K 0 0 6 2 3 2 6 6 7 6 2 0 - D C L G x E P C g e n 2 0 0 8 6 9 -A+0 3 6 1 - 3 0 7 5 - 0 7 1 7 - 0 2 0 0 - 6 9 0 1 - S K 2 0 0 1 1 1 6 5 9 2 1 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 26 B 26-50 26 B 26-50 26 B 26-50 26 B 26-50 This is how energy efficient This is how energy efficient This is how energy efficient 51-75 the building is. 51-75 the building is. 51-75 51-75 the building is. C 60 286 C 71 286 C 286 C 69 286 This is how energy efficient D 76-100 D 76-100 D 76-100 79 the building is. D 76-100 52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125 F 126-150 F 126-150 F 126-150 F 126-150

78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient

260 260 260 260 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Grid Supplied Electricity Buildings similar to this one 130 Main heating fuel: Grid Supplied Electricity Buildings similar to this one Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Air Conditioning could have ratings as follows: Building environment: Air Conditioning could have ratings as follows: 156 156 156 156 2 2 2 2 Total useful floor area (m ): 4558 If newly built Total useful floor area (m ): 1015 If newly built Total useful floor area (m ): 907 If newly built Total useful floor area (m ): 1112 If newly built Building complexity 44 Building complexity 37 Building complexity 60 Building complexity 58 (NOS level): 3 If typical of the (NOS level): 3 If typical of the (NOS level): 3 If typical of the (NOS level): 3 If typical of the 64 existing stock 50 existing stock 100 existing stock 92 existing stock

182 208 234 182 208 234 182 208 234 182 208 234

Carpetright Plc Certificate Reference Number: Halfords Ltd Certificate Reference Number: Pizza Hut (UK) Ltd Certificate Reference Number: Unit 5 Certificate Reference Number: 6 Bailey Drive 0050-5051-0371-1600-9034 7 Bailey Drive 0966-3065-0911-0700-6205 26 Bailey Drive 0050-5084-0381-2630-6050 Bailey Drive 0050-9065-0331-8670-5050 CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH CHRISTCHURCH BH23 2BN BH23 2BN BH23 2BN BH23 2BN

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd.

0 7 312 0 2 312 7 4 312 0 2 312 2 2 0 1 6 3 0 1

5 0 4 0 1 0 5 0 EnergySK-211462-348143 Performance Asset Rating EnergySK-663652-320343 Performance Asset Rating EnergySK-161002-149343 Performance Asset Rating EnergySK-234401-358300 Performance Asset Rating

More energy efficient More energy efficient More energy efficient More energy efficient 364 364 364 364

1 1 1 1

6 7 -A+0 0 5 0 - 5 0 5 1 - 0 3 7 1 - 1 6 0 0 - 9 0 3 4 - S K 2 1 1 4 6 2 3 4 8 1 4 3 - D C L G x E P C g e n 2 0 0 8 6 9 -A+0 9 6 6 - 3 0 6 5 - 0 9 1 1 - 0 7 0 0 - 6 2 0 5 - S K 6 6 3 6 5 2 3 2 0 3 4 3 - D C L G x E P C g e n 2 0 0 8 1 5 0A+- 0 0 5 0 - 5 0 8 4 - 0 3 8 1 - 2 6 3 0 - 6 0 5 0 - S K 1 6 1 0 0 2 1 4 9 3 4 3 - D C L G x E P C g e n 2 0 0 6 0 -A+0 0 5 0 - 9 0 6 5 - 0 3 3 1 - 8 6 7 0 - 5 0 5 0 - S K 2 3 4 4 0 1 3 5 8 3 0 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 26 B 26-50 26 B 26-50 26 B 26-50 26 B 26-50 This is how energy efficient This is how energy efficient This is how energy efficient 51-75 the building is. 51-75 the building is. 51-75 51-75 the building is. C 67 286 C 69 286 C 286 C 60 286 D 76-100 D 76-100 D 76-100 D 76-100

52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125 This is how energy efficient F 126-150 F 126-150 F 126-150 150 the building is. F 126-150

78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient

260 260 260 260 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Air Conditioning could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: 156 156 156 156 2 2 2 2 Total useful floor area (m ): 951 If newly built Total useful floor area (m ): 812 If newly built Total useful floor area (m ): 457 If newly built Total useful floor area (m ): 518 If newly built Building complexity 37 Building complexity 35 Building complexity 55 Building complexity 30 (NOS level): 3 If typical of the (NOS level): 3 If typical of the (NOS level): 4 If typical of the (NOS level): 3 If typical of the 50 existing stock 53 existing stock 104 existing stock 43 existing stock

182 208 234 182 208 234 182 208 234 182 208 234 CHRISTCHURCH Retail Park Christchurch THE SATURN PORTFOLIO PAGE 13 EPCs

Energy Performance Certificate 338 Non-Domestic Building

M F I Furniture Centre Ltd Certificate Reference Number: 5 Bailey Drive 0670-0031-0740-0204-0006 CHRISTCHURCH BH23 2BN

This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd.

7 1 312 6 6

4 3 EnergySK-311332-699420 Performance Asset Rating

More energy efficient 364

1 1 6A+- 0 6 7 0 - 0 0 3 1 - 0 7 4 0 - 0 2 0 4 - 0 0 0 6 - S K 3 1 1 3 3 2 6 9 9 4 2 0 - D C L G x E P C g e n 2 0 0 Net zero CO2 emissions A 0-25 26 B 26-50 51-75

C 286 D 76-100 This is how energy efficient 52 E 101-125 116 the building is. F 126-150

78 G Over 150 Less energy efficient

260 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Air Conditioning could have ratings as follows: 156 2 Total useful floor area (m ): 975 If newly built Building complexity 57 (NOS level): 3 If typical of the 90 existing stock

182 208 234 B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 14 B&Q WAREHOUSE ST MARGARET’S WAY LEICESTER LE4 0BG B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 15

INVESTMENT SUMMARY Situated in the major commercial centre of Leicester, benefiting from a catchment population of 580,298 within a 20 minute drive time.

Located in a highly prominent and accessible position approximately one mile to the north of Leicester city centre, fronting the A6 dual carriageway.

Purpose built modern retail warehouse extending to approximately 77,300 sq ft (7,181 sq m) with associated garden centre.

Restricted planning consent.

Freehold.

The property is let to B&Q plc on a lease expiring in October 2027, with a tenant’s rolling break option from October 2022.

The current rent is £1,325,490 per annum (£17.15 per sq ft), with the lease providing for 5 yearly rent reviews in line with the increase in RPI, subject to a ‘cap’ and ‘collar’ of 3% and 0% per annum respectively. B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 16 Retail Warehouse Provision in Central Leicester The subject property provides the dominant Other than Abbey Road Retail Park DIY store serving central Leicester. The mentioned below the nearest retail nearest competing stores are occupied by warehousing is St Georges Retail Park Wickes (circa 25,000 sq ft) on St George’s (135,000 sq ft) situated 1 mile to the south Retail Park situated approximately 1 mile to of the subject property. This has an open theA563 south, whilst Homebase occupy a store non-food consent with occupiers including R ED A563 H ILL W AY A156 AY W of circa 35,000 sq ft 1 mile south of the city Wickes, Currys/PC World and Toys ‘R’ Us. A563 AD AY ME WA57 TER D WA centre on Welford Road. Planning consent has been obtained for a CHESTERFIELD EL LINCOLN EF M1 CR Tesco of approximately 70,000 sq ft on part CONGLETON E B&Q also have a small store extending to M6 MANSFIELD A46 IV R of the site occupied by Wickes and D E A6 A617 CREWE X N 32,500 sq ft at Wigston on the southern A A F A60 A17 I L PC World. A515 L ST B R A WREXHAM ASB E Y side of the conurbation. Location OU A H E ASHBOURNE RG U STOKE-ON-TRENT DRIVE M B O B N The other major provision of retail A1121 A The city of Leicester is the secondWHITCHURCH largest T A1 A15 L NOTTINGHAM E Directly to the south of the subject property Y A515 Y S A L DERBY AN warehousing comprises approximately W E GRANTHAM conurbation in the East Midlands andA41 the H DONNINGTON

UTTOXETER T I is the Abbey Road Retail Park (32,700 sq ft)

A50 R A46 F A6 N A518 320,000 sq ft of accommodation is at E major commercial centre for Leicestershire. L AC E G HE H which is occupied by The Range, A49 AM I V STAFFORD BURTON UPON TRENT D R Fosse Park and Fosse Park South adjacent Leicester is situated approximately 100 miles NEWPORT LOUGHBOROUGH Carpetright and Halfords. A5 M6 TOLL A6 E A607 M1 KING’S LYNN to Junction 21 of the M1 to the south west. A563 V (160 km) north of London, 40 miles (64 km)A41 A460 I R SHREWSBURY D E A5 CANNOCK R N There are no competing DIY stores in E north east of Birmingham and 30 miles M42 A M54 K L TAMWORTH R A47 A Y this location. M6 TOLL A47 P (48 km) south of Nottingham. A1 E UPPINGHAM A47 WOLVERHAMPTON A5 LEICESTER B A458 M6 A6 PETERBOROUGH B M69 A The city benefits from very good road NUNEATON A605 M1 MARKET CORBY A49 BIRMINGHAM HARBOROUGH communications with the M1 motorway A442 M6 A5 D ROA A46 A1 (M) R D I A6 SOLIHULL B being situated immediately to the west COVENTRY A50 D K KIDDERMINSTER KETTERING AB A RUGBY C BE O Situation M42 R A46 A Y

of the conurbation with direct access L HUNTINGDON S P E

AN B A S T REDDITCH WELLINGBOROUGH TEY R V

ROYAL A45 LA K A The subject property is situated in a highly The immediate vicinity comprises a N M E R R

via Junctions 21 and 21a. Junction 21 and M5 LEAMINGTON SPA A49 M1 A O A G

R D L A46 NORTHAMPTON prominent and accessible position at the mixture of commercial and residential 21a also provide direct access to the M6 A423 G E CAMBRIDGE B WORCESTER M40 A STRATFORD UPON AVON A6 A5 R junction of St Margaret’s Way (A6) and accommodation. In 2007, Leicester City and the West Midland’s conurbation. The A449 A46 E A417 TOWCESTER BEDFORD T G ’ Blackbird Road (A5237) approximately Council adopted the Abbey Meadows city benefits from a direct rail serviceGREAT to MALVERN ROB S EVESHAM Y RD W A43 M11 HEREFORD BANBURY A1 A50 A 1 mile north of Leicester city centre. supplementary planning document, which London St Pancras, with a journey time of A44 MILTON KEYNES Y H A607 T St Margaret’s Way (A6) forms the principal provides for comprehensive redevelopment R approximately 1 hour and 15 minutes. M40 A6 A5 O A47 M5 A424 W A49 N AD dual carriageway RrouteO leading from the of the Abbey Meadows area situated on O NE TO A44 DSTEVENAGE ERS O MB CHELTENHAM A HU M1 D O A1 (M) city centre to the north, which makes the the eastern side of the A6 approximately G GLOUCESTER A40 R E AT T A Y G U E E T NV AYLESBURY S D SA A594 0.25 miles from the subject property. This E location highly accessible to a substantial S O Y R A A47 O R W F O N catchment population. The A6 links to is a large scale redevelopment to provide A H D G U A the A563 (outer ring road) approximately various commercial uses, including a science V A6030 A594 0.75 miles to the north of the subject park, together with substantial residential St Georges

Retail Park property, then onwards onto the intersection development.

T with the A46 to the north, which then

OAD A47 G

DS R E

HAR O IC R provides direct access to the M1 motorway. K G R A47 IN G O E LEICESTER X S F W O A R Y D S T A5460 R E E T A594 A6

L D O N A D O O N R R O A H D G U O R O B R A N D

O R E N O T S E A594 L Y A A6030 A426 A6

E L F O

R D

D A5460 A5199 B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 17

CASTLE DONINGTON BURTON WYSALL A46 WALTHAM ON UPON TRENT THE WOLDS A607 M1 COLSTERWORTH A511 MELTON LOUGHBOROUGH MOWBRAY COALVILLE COTTESMORE A607 MARKFIELD A606 TWYFORD A46

TAMWORTH TWYCROSS M1 M42 LEICESTER A47 WIGSTON M69 UPPINGHAM

HINCKLEY A6 FLECKNEY NUNEATON

M69 M6 CORBY M1 MARKET HARBOROUGH A6 20 MINUTE DRIVETIME CATCHMENT COVENTRY M6 KETTERING Catchment & Demographics Description PROMIS estimate that Leicester’s primary Key demographic data is included in the table below: The subject property provides a prominent The main customer access/exit point is catchment population is approximately purpose built retail warehouse extending to via a traffic light controlled junction on 920,000 people, ranking it the 10th largest Leicester PROMIS approximately 77,300 sq ft (7,181 sq m) GIA. St Margaret’s Way and there is a secondary Catchment Av/GB Av out of the PROMIS 200 centres. This is access point, which is shared by service The property was constructed in 1993 above the regional average and compares Household owner occupiers 2001 74% 70% vehicles off Blackbird Road. and is of steel portal frame construction closely with the likes of Edinburgh and under a pitched roof. Elevations are clad The site extends to a total area of Bristol. Within a 20 minute drive time of Per capita RW expenditure 2001 £427 £476 with flat cladding above masonry. The unit approximately 7.26 acres (2.94 hectares). the subject property there is an estimated benefits from a dominant entrance feature, catchment population of 580,298 people. Estimated population growth 2011-2016 0.8% 0.6% (% per annum) with similar high profile extended signage 24% of the catchment population are zones situated on the 2 front corners of the classified as being within AB social group AB social classification 2001 24% 25% building fronting St Margaret’s Way. On the (more affluent) as compared to the national western side of the building is an enclosed average of 25%. Car ownership is close to garden centre, to the rear of which is a the national average, with 32% owning 2 dedicated service yard. or more cars, as compared to the national At the front of the building is a average of 30%. tarmacadamed customer car park providing The catchment population is predicted to approximately 415 spaces, equating to a benefit from above average population ratio of 1 : 186 sq ft (1 : 17.3 sq m). growth, estimated to be 0.8%, as compared to the 200 PROMIS centres of 0.61%.

In 2010 the service sector accounted for 73% of total employment, with manufacturing standing at 14%, both being close to the national average. Major employers in the town include Santander, Next, Walkers Snack Food and Babcock. B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 18 Tenancy Schedule

Tenant GIA LEase Term Expiry Unexpired Next rent Current Current Comments (sq ft) start (years) Date term review rent rent (years) (Per annum) (per sq ft)

Rent is payable monthly. 5 yearly compounded rent reviews linked to RPI capped and collared at 0% and 3% p.a. B&Q Plc 77,300 19/10/2007 20 18/10/2027 15.00 29/09/2017 £1,325,490 £17.16 respectively. Tenant rolling break option from 19/10/2022. 12 month’s notice required. No penalty if exercised.

TOTALS 77,300 £1,325,490 £17.16

Planning Tenure

The property has planning consent for a The site, as approximately outlined in red, is non-food retail warehouse, garden centre held freehold. and ancillary parking. There is a restriction that no part of the building should be used as a foodstore. The sale of goods is restricted to building and DIY supplies, Tenancy furniture, self-assembly furniture, floor coverings, fabrics and ancillary items, The property is let to B&Q plc on a lease electrical appliances, goods and materials expiring on 18 October 2027 with a tenant’s and fittings, motor vehicles, cycles and spare rolling option to determine from 19 October parts, garden furniture, tools and equipment, 2022 subject to 12 months notice. The lease caravans, tents and camping equipment provides 5 yearly upward only rent reviews and associated items, boats, dinghies and in line with the increase in the Retail Price associated items. A planning summary can Index, subject to a minimum of 0% per be provided upon request. annum and a maximum of 3% per annum.

The current rent is £1,325,490 per annum, which equates to £17.15 per sq ft. Ground Conditions An updated Environmental Report is available upon request. B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 19 Tenant’s Covenant We summarise below the most recent accounts for B&Q plc, together with the latest Dun & Bradstreet rating.

UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s)

29/01/2011 £3,711,700 £144,700 £3,656,700 1 B&Q plc 5A1 30/01/2010 £3,792,400 £400,400 £3,476,400

D&B rating – 5A1 (minimum risk of business failure).

Trading Profile / Tenant Profile Asset Management B&Q plc is a wholly owned subsidiary of This is the dominant DIY store serving the Kingfisher Group plc and is the UK’s market central Leicester conurbation and due to its leading DIY retailer. In recent years, they have accessible location and limited competition, expanded to international markets and now understand that it trades well. In addition, currently trade in excess of 950 stores in we believe the size of the store, being circa 8 countries throughout Europe and Asia. 70,000 sq ft, is likely to provide a highly efficient trading format for B&Q.

However, we believe the property could potentially, subject to obtaining the necessary consents, be subdivided to create a small retail park, with the additional benefit of the potential to develop additional accommodation on the garden centre and ‘pod’ units in the car park, should B&Q wish to relocate. Alternatively, we consider it would make an ideal foodstore site, subject to tenant demand and the necessary planning consents.

Due to the nature of the rent review clause and expectation for the increase in the Retail Price Index, this investment provides a secure income stream with the benefit of inflation linked uplifts secured against a successful trading destination. B&Q Warehouse, st margaret’s way Leicester THE SATURN PORTFOLIO PAGE 20 EPC

Energy Performance Certificate 338 Non-Domestic Building

Commercial Union Life Assurance Ltd Certificate Reference Number: B & Q Plc 0744-3045-0119-0800-9091 St Margarets Way LEICESTER LE4 0BT

7 6 312 4 1

6 4 EnergySK-521520-010243 Performance Asset Rating

More energy efficient 364

4 6 -A+0 7 4 4 - 3 0 4 5 - 0 1 1 9 - 0 8 0 0 - 9 0 9 1 - S K 5 2 1 5 2 0 0 1 0 2 4 3 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions A 0-25 This is how energy efficient 26 B 26-50 46 the building is. 51-75

C 286 D 76-100

52 E 101-125 F 126-150

78 G Over 150 Less energy efficient

260 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Heating and Natural Ventilation could have ratings as follows: 156 2 Total useful floor area (m ): 7302 If newly built Building complexity 38 (NOS level): 4 If typical of the 50 existing stock

182 208 234 dunstable road retail park luton THE SATURN PORTFOLIO PAGE 22 DUNSTABLE ROAD RETAIL PARK LUTON LU4 8EZ Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 23

INVESTMENT SUMMARY Situated in the major commercial centre of Luton, benefiting from a catchment population of over 410,000 people within a 20 minute drive time.

Located in a highly prominent and accessible position to the north of Luton town centre, fronting Chaul End Lane, less than a mile from Junction 11 of the M1 motorway, being in close proximity to Hatters Way Retail Park and units occupied by PC World and B&Q.

Modern retail warehouse parade extending to approximately 46,850 sq ft (4,353 sq m).

Part restricted / part open A1, planning consent.

Freehold.

Asset management opportunities available to let newly refurbished vacant unit.

The property is let to DSG Retail Ltd and Next Group plc providing a weighted average unexpired term of just less than 10 years.

The current rent is £1,015,000 per annum (overall rent of £25.38 per sq ft) with a fixed uplift on the Currys unit in 2017. Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 24

LetchworthLetchworth A5 M1 A6

Leighton Buzzard A5

A4146 A505 StevenageStevenage D Dunstable Luton A M1 O A5 A505 E R A1081 Luton Airport A1(M) U N N E I V H A ONTROSE AVENUE C R M T o E I M1 M1 a L N A k Welwyn S L TringTring Garden City l H A S e C R

y W T O

M11

A414 F

11 o O T

Harlow

A1(M) a R

Hemel A505

A10 d C O

HempsteadHempstead d K

St Albans A A41 IN V D

M1 D a G A

A414 U S U o NS T T OA O X A BLE R D r NE ROAD H AbbotsAbbots M25 A1(M) A414 L A

LangleyLangley d E L Cheshunt E A G r L N M25 R

o W A A

L V DUNSTABLED ROAD RETAIL PARK f A E Y D UN

d N S M11 R

Watford Enfield TA

E O

M1 e B L L A

Barnett E b U R M25 A O D H A Brentwood D w C

HATTERS WAY RETAIL PARK e Beaconsfield A406 A505

M25 n

A1 M10 A10 D H A AT A6 O Uxbridge T R ERS A40 W IN A H Y C A13 T Slough I London H M4 A505 LUTON D A D O R U N N E Location E S R G T A Y Luton is located 35 miles north of London, Investment within Luton is evident on the M1 B LE L AW E CR 12 miles north of Hemel Hempstead, 13 miles edge of the town at Putteridge Bury where R O A north of St Albans and 15 miles west of a high-technology office park, Butterfield D t Stevenage. Green, is under construction as well as the c p u ar d former Vauxhall site, which is to be k via The town benefits from good road kim p re-developed as a mixed use scheme called to communications and is strategically located n T Napier Park. E r E o R ad adjacent to Junctions 10 and 11 of the M1 T A505 S

L E IL L

motorway and is well served by a number of H T S

Y E A L primary roads including the A6 trunk road R C A F and the A505 dual carriageway, which links the A1 and the A5. airport way

Luton benefits from a regular train service with a quickest journey time to London Situation Retail Warehouse (St Pancras) of approximately 35 minutes. Dunstable Road Retail Park is situated on Luton possesses one of the fastest growing Chaul End Lane close to its junction with Provision in Luton airports in the UK in Luton International Dunstable Road, approximately 2.5 miles Airport, which offers flights to European and north west of Luton town centre. Junction 11 The subject property is one of 3 main concentrations of retail worldwide destinations. of the M1 motorway is conveniently located warehousing in Luton. We summarise the remaining 2 below: approximately 1 mile directly to the west A major town centre regeneration Gipsy Lane Retail Park of the scheme providing easy access to programme is currently underway in 161,955 sq ft (15,044 sq m) customers from the M1 corridor. Luton, which will include upgrades to the Located south east of the town centre, tenants include B&Q, Comet, town’s bus and railway stations, as well The subject property is located in a cluster Toys ‘R’ Us, Halfords and Argos. The scheme has an open A1 (non- as improvements to the town’s urban of retail warehousing with PC World situated food), with certain exceptions, planning consent and rents range from environment. to the immediate north of the scheme £16.75 – £30.00 per sq ft. while approximately 500 yards to the Hatters Way Retail Park south, is Hatters Way Retail Park, which is 90,635 sq ft (8,425 sq m) occupied by Dreams, Harveys, Paul Simon, Tenants include DFS, Carpetright, Paul Simon, Harveys and Dreams. Carpetright, DFS and ScS. The park has bulky goods consent and is located immediately south of the subject property. Rents range from £25.00 – £30.00 per sq ft. Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 25

20 MINUTE DRIVETIME CATCHMENT A421 A1 M1 A507

MILTON KEYNES FLITWICK A5 HITCHIN A6 A1(M) LEIGHTON TODDINGTON BUZZARD A505 STEVENAGE A5 LUTON A4146 DUNSTABLE M1

A1(M) HARPENDEN WELWYN TRING GARDEN CITY

A41 HEMEL HEMPSTEAD ST. ALBANS

M25 POTTERS BAR M1 AMERSHAM M25

ENFIELD HIGH WYCOMBE M25 WATFORD Catchment & Demographics Description Luton has a catchment population of We summarise the key demographic data in the table below: Dunstable Road Retail Park comprises a 323,000 people and a significant 20 minute terrace of 3 modern retail units located drive time catchment of approximately within a large surface car park. 414,339 people. Luton’s population is PROMIS PROMIS Ranking The units are of steel portal frame forecasted to rise at a higher rate than LUTON Average Out of 200. 1 = best construction with brick and profile metal the national average over the period 2011 cladding under a pitched roof. The 2 to 2016. Average Household Size 2.5 2.3 n/a southernmost units have recently been Luton’s catchment, in terms of affluence, Per Capita in store Comparison £2,463 £2,392 70 refurbished, providing attractive full height is broadly similar to that of the national Expenditure 2011 glass frontages. One of these units has average, whilst per capita retail warehouse been let to Next, which benefits from a expenditure for 2011 was significantly higher Per Capita Retail Warehouse £513 £476 38 full mezzanine floor while the second is Expenditure 2011 than the national average and, furthermore, vacant and available to let. Currys occupy the forecast growth of comparison spend the final unit. The scheme extends to Forecast growth in comparison 1.2% 1.0% 73 for 2011 to 2016 is forecast at a higher rate retail expenditure 2011-16 (% Per Annum) a total of approximately 46,850 sq ft than the national average. (4,353 sq m) GIA. Practical Population 0.9 0.7 33 In 2010, the service sector accounted for Growth 2011-2016 The park is accessed off Chaul End Lane 80% of total employment and within this with rear servicing provided to all of sector, financial and business services the units. accounted for 27% of total employment, The property provides approximately 204 both figures slightly above the retail PROMIS dedicated car parking spaces, reflecting an average. The manufacturing sector at Luton attractive car parking ratio of 1 : 231 sq ft accounts for 8% of total employment slightly (1: 21.5 sq m). below the retail PROMIS average. The total site area extends to approximately 3.03 acres (1.23 hectares). Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 26 Tenancy Schedule

Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) Date term review rent rent (years) (Per Annum) (sq ft)

1A Next Group plc 13,000 19/03/2012 10 18/03/2022 9.42 19/03/2017 £250,000 £19.23 Rent review is capped at £282,852 per annum.

1B To Let 6,850 – – – – – – –

Fixed uplift at 2017 rent review at 3% per annum 2 DSG Retail Ltd 27,000 29/09/2002 20 28/09/2022 9.95 29/09/2017 £765,000 £28.33 compounded. 2017 rent: £887,000 per annum.

Initial 5 year term. Agreement rolls over thereafter. Rent Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – payable to equal 20% of advertising revenue.

TOTALS 46,850 9.8 £1,015,000 £25.38 Tenancies Planning

The property is part let with one vacant The Currys unit benefits from a restricted unit in accordance with the above tenancy A1 (non-food) consent while the Next and schedule and produces a current rental vacant unit benefit from an open A1 (food income of £1,015,000 per annum, equating and non-food) consent. to an overall rent of £25.38 per sq ft. A planning summary can be provided VAUXHALL The property benefits from an average upon request. DEALERSHIP unexpired lease term (ignoring breaks) of 9.8 years.

The lease to DSG Retail Ltd includes a fixed rental uplift in 2017. Tenure Ground The site, as outlined in red on the plan, is held freehold. TO LET Conditions 6,850 SQ FT

An updated Environmental Report is available upon request. Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 27 Tenants’ Covenants

The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below:

UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s)

30/04/2011 £3,858,000 £18,400 £327,600 1 DSG Retail Ltd 5A1 01/05/2010 £4,110,495 -£2,136 £285,700

29/01/2011 £188,400 £590,300 £1,667,000 2 Next Group plc 5A1 30/01/2010 £182,800 £677,000 £1,244,000

Tenants’ Profile Trading Profile / The scheme is let to Currys and Next with one have benefited from the recent demise of unit vacant and available to let. Currys and Best Buy’s UK operations, together with a Asset Management Next are substantial retailers with significant reduction in the number of competing stores exposure to the UK out of town market. A brief operated by Comet. 2 of the units on this scheme have recently PC World site into a food store. The potential summary of these is set out below: Next been refurbished and reclad, with Unit 1A for Currys and PC World to occupy a single now let to Next. There remains a prominent unit may provide the opportunity to regear the Currys Next is one of the best known UK fashion and refurbished unit available to let. The lease on advantageous terms with the tenant. Currys is the UK’s leading retailer of electrical retailers and is listed in the FTSE 100 with a unit benefits from an unrestricted consent goods, being the sister company of PC current market capitalisation of £5.71 billion. and indeed could possibly be extended to World, both of which are subsidiaries of Over recent years, Next have expanded their the rear. Dixons Retail plc which is listed on the Home operation. They currently trade from London Stock Exchange, with a market over 500 stores across the country with With PC World occupying a unit extending capitalisation of approximately £759 million. their last results showing a 3% increase in to approximately 25,000 sq ft (2,323 sq m) Currys and PC World currently trade from turnover to £188.4 million. adjacent to the subject property, we believe over 1,200 stores throughout the UK and Dixons are keen to consolidate both the PC World and Currys fascias into a single store. We understand their preferred option is to retain the store on the subject property, and indeed, there are proposals to redevelop the Dunstable road retail park Luton THE SATURN PORTFOLIO PAGE 28 EPCs Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 30 CAIRNGORM RETAIL PARK SNOWDON DRIVE MILTON KEYNES MK6 1AZ Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 31

INVESTMENT SUMMARY Located in the affluent major commercial and geographically prominent centre of Milton Keynes, which benefits from a primary catchment of over 700,000 people, which is forcasted to grow by 1% per annum by 2016.

Situated in an established cluster of retail warehousing, forming part of the main recognised furniture pitch for Central Milton Keynes.

Modern retail warehouse scheme extending to approximately 57,432 sq ft (5,336 sq m).

The property benefits from an open A1 (non-food) planning consent on Units 1-4. Unit 5 has a bulky goods consent.

Freehold.

The property is let to DFS, Oak Furniture Land, ScS, Carpetright and Furniture Village providing a weighted unexpired term of 10.0 years.

The current rent is £1,407,213 per annum (overall rent of £24.50 per sq ft) with fixed uplifts to Carpetright in 2014 and DFS in 2016 and 2021. Walsall Sutton A5 West A452 Coldfield M69 A6003 A43 Peterborough Bromwich Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 32 Nuneaton A6 A10 Market Corby Birmingham Harborough Lutterworth A1 (M) A605 A45 M6 Solihull A141 G Coventry A14 Kettering A441 R A M42 A452 F S E A445 Rugby T Kenilworth A14 O C A508 A142 N K A435 A43 Huntingdon L Leamington D Redditch M40 Spa S CENTRALA509 RETAILR PARKO M Wellingborough A45 T A W A A45 V R Rushden LE G L Warwick U D B Daventry A R O BO RD T A A6 A E EV R A5 RY V L O A422 U E U U Northampton A509 G B L O G Stratford-Upon-Avon Cambridge R IL U B Y A5 A428 A S O Y A H B R W F R U S T E B S T M1 O M WI E LD N M V I Towcester Bedford THE PLACEU T A H G S A C A508 M11 B4034 Evesham A ID N A429 Biggleswade T M CHAFFR G ON A43 E WAY MILTON A Banbury A422 Y T A1 A E A46 W S Brackley KEYNES T A A505 X R O Buckingham O MILTON KEYNES N Y P S A M Letchworth CENTRAL AY T R W A W E N Chipping M40 Buntingford S E O R D T R L Norton Hitchin L F F B HI ARGOS & TOYS ‘R’US A

C H O

A44 Bicester C Stevenage R

Luton Under O A418

A41 offer PURE A5 U A40 A1 (M) TO BE WREN & THE RANGE G GYM HOMEBASE G Aylesbury R H

A A40 F S Witney T Y T Carterton O A R Oxford A413 Hemel W WINTERHILL RETAIL PARK N ROUTECO RETAILN PARK E Hempstead E S RO F T Chelmsford Y T F S Cirencester R A A A H E X M25 W C WOUGHTON Amersham M10 E O S T WICKES PARK Faringdon N B4034 M40 Watford D L High I S A420 W T Wycombe H A421 M25 A R A419 Didcot Wallingford T C L E Wantage IN CAIRNGORM RETAIL PARK Marlow E London G A5 Swindon ST T Maidnehead R A421 A34 EE T M A R L Y G B A R O W W A R F O AT N T L O O U IN R G N G F Y Y ST F S A S H A R A T A E R W Retail WarehouseW E H E X S

T C E G O T S T N D N R L I I S E T Y H D E C R WA N E T E E V A RO T G T S Y Location Situation Provision inA MiltonW Keynes Y W A WA TL A5 OVE Y F N IN GR A U O G FURZTON S W L R ST Milton Keynes is located 54 miles (85 km) Cairngorm Retail Park is situated in Routeco Retail Park Other retailY warehousingA in Milton Keynes Winterhill S M F LAKE RE A F A421 X LD E ET W I R A E O H H A421 V north west of London, 72 miles (115 km) a prominent position just off the A5 C W This park extends to 57,217 sq ft (5,315 sq m) includesO the following:N 325,000 sq ft (30,194 sq m) A C R Y G S south east of Birmingham and 2 miles trunk road fronting Snowdon Drive and and is currently occupied by PC World, T The area comprising and surrounding the Central Retail Park A5 W (3.2 km) west of Junction 14 of the M1 Cairngorm Gate. subject property, known as Winterhill, Multiyork, Dreams and Sharps. PureAT Gym A5 LI NG 94,050 sq ft (8,737 sq m) motorway. Designated as a new town have agreed terms on the vacant unit S is the main furniture and DIY retailing TR The scheme is situated within a cluster EE This scheme has open A1 (including in 1967, Milton Keynes benefits from an destination for Milton Keynes and provides and we understand B&M Retail are taking T of other retail warehouse developments food) consent with tenants including integrated grid system of roads that connect approximately 270,000 sq ft (25,083 sq m) an assignment of the PC World unit. The providing in excess of 345,000 sq ft Pets at Home, Halfords, Hobbycraft and the surrounding towns of Bletchley, Stony of retail accommodation in addition to the scheme benefits from open A1 (non food) (32,052 sq m) of retail space. Dwell Clearance. Tops rents have reached Stratford and Wolverton. subject property. The area contains the consent with top rents at £21.00 per sq ft. £23.00 per sq ft. The area is to benefit from the arrival of following: Milton Keynes is easily accessible via rail Homebase & Wickes a number of new occupiers including The The Place with regular services to major towns across Winterhill Retail Park There is a Homebase (81,675 sq ft/ Range, Wren Kitchens and Pure Gym. c.30,000 sq ft (7,432 sq m) the country, including London Euston in This park extends to 66,958 sq ft 7,588 sq m) and a Wickes (36,500 sq ft/ This secondary park has open A1 (non-food) a fastest journey time of approximately (6,220 sq m) and comprises a solus 3,391 sq m) within the Winterhill area consent and tenants including American 35 minutes and Birmingham in a fastest time unit occupied by Harveys and a terrace providing the DIY focal point for Milton Golf Discount, Horsatack, Brantano and of approximately 1 hour. let to Dunelm Mill and Paul Simon. The Keynes. Both have a bulky goods consent and Currys/PC World. Rents are in the range of scheme benefits from open A1 (non food) are let off £17.00 and £17.75 per sq ft. Milton Keynes is a geographically important £16.00 – £17.00 per sq ft. consent and rents range from £14.50 – hub in the United Kingdom and due to its The Range & Wren Kitchens £18.50 per sq ft. We understand that a unit Kingston Centre and MK1 locational attributes and extensive employee The Range and Wren Kitchens have agreed of approximately 13,800 sq ft (1,282 sq m) is These parks are the prime fashion parks base, major employers such as Santander terms on units of 40,000 sq ft (3,716 sq m) under offer to a national furniture retailer. in Milton Keynes top rents reaching up to and the Open University are located in and 10,000 sq ft (929 sq m) respectively £50.00 per sq ft. The tenants include M&S, the town. to the rear of the Dunelm Mill and Paul Next, River Island, Arcadia and Primark. Simon terrace. In addition, major retailers such as Coca Cola, River Island and John Lewis have The arrival of these new tenants will further based their distribution centres in Milton establish Winterhill as a strong retail Keynes to take advantage of the transport destination serving Milton Keynes. infrastructure. Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 33

Under offer

To be

Catchment & Demographics Description Milton Keynes has an extensive primary Milton Keynes PROMIS Regional PROMIS Ranking Cairngorm Retail Park comprises a terrace catchment of 709,000 people and 302,057 Centre Average Out of 200. 1 = best of 4 units and a separate detached unit. within a 20 minute drive time. These Total Catchment Population 2011 709,000 665,000 18 The terrace is occupied by DFS, Oak catchments are projected to see above Furniture Land, ScS and Carpetright while average population growth for the period Population Growth 2011-16 (% Per Annum) 1.0% 0.8% 19 the standalone unit is occupied by Furniture 2011 – 2016. The estimated shopping Village. The development is of steel portal population of Milton Keynes is 465,000 Per Capita RW Expenditure, 2011 £523 £494 21 frame construction with flat steel cladding ranking the city 11 of the PROMIS centres, under pitched roofs. The property totals above the average for regional centres. AB Social Structure (% of catchment) 31% 28% n/a approximately 57,464 sq ft (5,338 sq m) GIA.

Milton Keynes is relatively affluent, with 31% 2+ Cars Owned by Household 41% 33% n/a Customer access and egress is via Snowdon of the population categorised at AB social Drive and Cairngorm Gate respectively while group and 41% of families having 2 or more NORTHAMPTON servicing is accessed to the rear of all of the A1 cars, both of which are above the national A5 CARLTON units via Snowdon Drive. average. Retail warehouse expenditureBYFIELD of M1 A428 Oak Furniture Land, ScS and Furniture £523 compares well to the PROMIS Regional Village have non-rentalised trading centre average of £494 and the forecasted TOWCESTER BEDFORD mezzanine space. growth in comparison retail expenditure A508 NEWPORT for 2011-16 of 1.3% per annum, is above the The large surface level car park provides PAGNELL A421 BIGGLESWADE PROMIS 200 centre average. A43 A5 approximately 216 car spaces, equating to a ratio of 1 : 265 sq ft (1 : 24.6 sq m). The Milton Keynes economy is based M1 A1 A507 primarily around the service sector (80% MILTON The total site area extends to approximately of the total employment), of whichCROUGHTON 31% is BUCKINGHAM KEYNES WOBURN 5.17 acres (2.09 hectares). A421 A421 FLITWICK estimated to be in the financialM40 and business A5 sub-sector. Key demographic indicators for A1(M) LEIGHTON HITCHIN Milton Keynes include: BUZZARD A505 BICESTER LUTON

DUNSTABLE A41 M1 A1(M) M40 20 MINUTE DRIVETIME CATCHMENTAYLESBURY Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 34 Tenancy Schedule Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) Date term review rent rent (years) (Per Annum) (sq ft)

Fixed 5 yearly uplifts to £551,972 per annum in June 2016 and 1 DFS Furniture Co Ltd 20,056 24/06/1996 30 23/06/2026 13.68 24/06/2016 £487,863 £24.33 £624,505 per annum in June 2021. JB Global Ltd 2 10,010 19/06/2009 10 18/06/2019 6.67 19/06/2014 £230,230 £23.00 t/a Oak Furniture Land A Share & Sons Ltd 3 10,110 02/07/1999 20 24/12/2019 7.19 02/07/2014 £280,000 £27.70 Tenant guaranteed by ScS Upholstery Plc. t/a SCS 4 Carpetright plc 8,000 25/12/1994 25 24/12/2019 7.19 25/12/2014 £224,000 £28.00 Fixed uplift in 2014 to £259,865 5 Furniture Village Ltd 9,256 01/11/2004 20 31/10/2024 12.04 01/11/2014 £185,120 £20.00 Substation Powergen Energy plc 0 07/11/1994 99 06/11/2093 81.06 – £0 – Initial 5 year term. Agreement rolls over thereafter. Rent Advertising Redbus Retail Advertising Ltd 0 21/12/2009 5 20/12/2014 2.13 – £0 – payable to equal 20% of advertising revenue.

TOTALS 57,432 £1,407,213 £24.50 Planning Tenancies

The property benefits from an open A1 The property is let in accordance with the (non-food) planning consent on Units 1-4. above tenancy schedule and produces a Unit 5 has a bulky goods consent. current rental income of £1,407,213 per annum, equating to an overall rent of A planning summary can be provided upon £24.50 per sq ft. request. The property benefits from an average unexpired lease term of 10.0 years.

We would highlight the fixed rental increases to Carpetright in 2014 and to DFS Ground in 2016 and 2021. Conditions

An updated Environmental Report is available upon request.

Tenure

The site, as outlined in red on the plan, is held freehold. Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 35 Tenants’ Covenants

The tenants’ most recent reported accounts and Dun & Bradstreet ratings are set out below:

UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s) 30/07/2011 £3,200 £100 £38,400 1 DFS Furniture Co Ltd 5A1 31/07/2010 £653,000 £51,800 £41,000 30/09/2011 £34,071 £3,877 £3,036 2 JB Global Ltd 2A3 30/09/2010 £25,913 £1,885 £1,760 30/07/2011 £186,345 -£5,746 £20,109 3 A Share & Sons Ltd 4A2 31/07/2010 £194,158 £1,087 £24,904 30/04/2011 £486,800 £6,600 £1,200 4 Carpetright plc 1A2 01/05/2010 £516,600 £22,300 £4,000 03/04/2011 £180,706 £3,600 £16,045 5 Furniture Village Ltd 4A1 04/04/2010 £172,368 £8,332 £13,774 Trading Profile / Tenants’ Profile Asset Management The scheme is fully let to substantial Carpetright Cairngorm Retail Park forms the strongest retailers with significant exposure to the Carpetright is the UK’s leading retailer scheme within the established out of town UK out of town market. A brief summary of of floor coverings currently trading from furniture ‘pitch’ at Winterhill. It benefits these retailers are set out: approximately 703 stores. The company from the anchor tenant of DFS, who hold a lease which runs to 2026. Traditionally, other DFS has a London Stock Exchange listing with a current market capitalisation of retailers in the furniture sector have sought DFS is one of the UK’s leading furniture approximately £460 million. to be situated adjacent to DFS in order retailers, operating from 85 stores to benefit from their customer base and nationwide. In April 2010 DFS was sold to Furniture Village advertising. private equity firm Advent International. Furniture Village, founded in 1989, is the Whilst this is an established and successful Oak Furniture Land largest privately owned furniture chain in the UK and now has over 40 stores across retail destination, lettings in the recently Oak Furniture Land is a rapidly expanding the country. It reported a 5% increase in refurbished and adjacent Winterhill Park, manufacturer and retailer of solid oak turnover for year end 2011 up by £8.3m together with the arrival of new occupiers furniture. The company is growing by adding to £180.1m. including Pure Gym, The Range and to its successful online retail presence by Wren Kitchens, will only strengthen the opening physical stores in major out of town location further. retail destinations. They will trade from 35 units by the end of We also believe there may be potential for 2012 expect to open a further 15 in the an A3 unit in the car park. next 24 months. There are fixed uplifts to DFS in 2016 and ScS 2021 and to Carpetright in 2014. ScS are one of the most established furniture retailers in the UK with nearly 100 stores nationwide. Cairngorm retail park Milton Keynes THE SATURN PORTFOLIO PAGE 36 EPCs

Unit 1 Certificate Reference Number: Unit 2 Certificate Reference Number: Unit 3 Certificate Reference Number: Unit 4 Certificate Reference Number: Cairngorm Gate 0614-3005-0414-0500-6805 Cairngorm Gate 0150-0431-9290-5697-4002 Cairngorm Gate 0670-0531-9360-9305-8002 Cairngorm Gate 0620-0431-8160-3805-8006 Winterhill Winterhill Winterhill Winterhill MILTON KEYNES MILTON KEYNES MILTON KEYNES MILTON KEYNES MK6 1AZ MK6 1AZ MK6 1AZ MK6 1AZ

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website www.communities.gov.uk/epbd. information on the Government’s website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd.

7 4 312 7 6 312 7 4 312 0 2 312 6 3 4 1 6 3 0 1

4 6 4 0 5 4 5 0 EnergySK-156221-147400 Performance Asset Rating EnergySK-505552-012643 Performance Asset Rating EnergySK-035441-130563 Performance Asset Rating EnergySK-111202-348530 Performance Asset Rating

More energy efficient More energy efficient More energy efficient More energy efficient 364 364 364 364

1 1 1 1

9 5 -A+0 6 1 4 - 3 0 0 5 - 0 4 1 4 - 0 5 0 0 - 6 8 0 5 - S K 1 5 6 2 2 1 1 4 7 4 0 0 - D C L G x E P C g e n 2 0 0 8 4 8 -A+0 1 5 0 - 0 4 3 1 - 9 2 9 0 - 5 6 9 7 - 4 0 0 2 - S K 5 0 5 5 5 2 0 1 2 6 4 3 - D C L G x E P C g e n 2 0 0 8 5 7 -A+0 6 7 0 - 0 5 3 1 - 9 3 6 0 - 9 3 0 5 - 8 0 0 2 - S K 0 3 5 4 4 1 1 3 0 5 6 3 - D C L G x E P C g e n 2 0 0 8 5 6 -A+0 6 2 0 - 0 4 3 1 - 8 1 6 0 - 3 8 0 5 - 8 0 0 6 - S K 1 1 1 2 0 2 3 4 8 5 3 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 This is how energy efficient 26 B 26-50 26 B 26-50 48 the building is. 26 B 26-50 26 B 26-50 This is how energy efficient This is how energy efficient 51-75 51-75 51-75 the building is. 51-75 the building is. C 286 C 286 C 57 286 C 56 286 This is how energy efficient D 76-100 95 the building is. D 76-100 D 76-100 D 76-100 52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125 F 126-150 F 126-150 F 126-150 F 126-150

78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient

260 260 260 260 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Grid Supplied Electricity Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Heating and Mechanical Ventilation could have ratings as follows: Building environment: Air Conditioning could have ratings as follows: Building environment: Heating and Mechanical Ventilation could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: 156 156 156 156 2 2 2 2 Total useful floor area (m ): 1998 If newly built Total useful floor area (m ): 859 If newly built Total useful floor area (m ): 1042 If newly built Total useful floor area (m ): 766 If newly built Building complexity 36 Building complexity 58 Building complexity 36 Building complexity 37 (NOS level): 3 If typical of the (NOS level): 3 If typical of the (NOS level): 3 If typical of the (NOS level): 3 If typical of the 49 existing stock 89 existing stock 48 existing stock 47 existing stock

182 208 234 182 208 234 182 208 234 182 208 234

Energy Performance Certificate 338 Non-Domestic Building

Unit 5 Certificate Reference Number: Cairngorm Gate 0286-3045-0819-0800-6401 Winterhill MILTON KEYNES MK6 1AZ

7 1 312 6 6

4 3 EnergySK-143032-678320 Performance Asset Rating

More energy efficient 364

6 9 -A+0 2 8 6 - 3 0 4 5 - 0 8 1 9 - 0 8 0 0 - 6 4 0 1 - S K 1 4 3 0 3 2 6 7 8 3 2 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions A 0-25 26 B 26-50 This is how energy efficient 51-75 the building is. C 69 286 D 76-100

52 E 101-125 F 126-150

78 G Over 150 Less energy efficient

260 104 Technical information Benchmarks

130 Main heating fuel: Grid Supplied Electricity Buildings similar to this one Building environment: Air Conditioning could have ratings as follows: 156 2 Total useful floor area (m ): 954 If newly built Building complexity 60 (NOS level): 3 If typical of the 95 existing stock

182 208 234 Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 38 MOUNTBATTEN RETAIL PARK WESTERN ESPLANADE SOUTHAMPTON SO14 1BA

HISTORICAL PHOTOGRAPH Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 39

INVESTMENT SUMMARY Situated in the prosperous city of Southampton benefiting from a substantial catchment of approximately 670,000 people within a 20 minute drive time.

Located adjacent to Southampton city centre, close to major retail attractions including West Quay Shopping Centre and West Quay Retail Park, and an IKEA store which together provide a regional retail offer.

Comprises a purpose built retail warehouse scheme, providing approximately 52,159 sq ft (4,845.73 sq m) GIA of accommodation.

Freehold.

Let to Wren Kitchens, Carpetright, Dreams, PC World, Majestic Wine and Oak Furniture Land.

Open A1 (non-food) planning consent

The current rent is £987,102 per annum (£18.92 per sq ft) with a fixed rental uplift in respect of the letting to PC World due in 2016. Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 40

A34 SLOUGH A350 M4 LONDON CHIPPENHAM A346 M4 READING A20 BRACKNELL M3 NEWBURY Retail Warehouse Provision M25 A339 A33 M3 WOKING A3 A338 M25 BASINGSTOKE in Central Southampton GUILDFORD ANDOVER The subject property forms part of a A303 M23 Toys ‘R’ Us A36 A31 concentration of quality retail warehouse 42,300 sq ft (3,930 sq m) M3 A281 provision in Central Southampton, which we This is a standalone unit situated directly SALISBURY WINCHESTER HORSHAM summarise below. to the east of the subject premises and A23 SHAFTTESBURY A36 opposite West Quay Retail Park. EASTLEIGH A272 A350 A3 West Quay Retail Park A354 A338 M27 194,000 sq ft (18,023 sq m) IKEA WATERLOOVILLE A31 SOUTHAMPTON A modern scheme with an open consent 337,000 sq ft (31,308 sq m) A27 A27 BRIGHTON situated directly to the rear of the subject Modern IKEA unit trading on 4 levels PORTSMOUTH A259 property. The scheme is occupied by Staples, BOGNOR REGIS opened in 2009. A348 Halfords, Boots, Brantano, Tesco, Mothercare, BOURNEMOUTH The subject property is therefore highly NEWPORT Furniture Village, JD, First Choice, Next, Argos accessible and visible and complements and SCS. Rents here peaked between £35.00 both the existing retail warehousing and the WEYMOUTH and £40.00 per sq ft. Decathlon are soon due substantial city centre retail offer. Location Situation to open in the former JJB Sports unit. Southampton is a major retail, leisure This is proposed directly opposite the The subject property is situated immediately and commercial centre situated on the subject property creating a new integrated to the east of Western Esplanade (A3024), Hampshire coast approximately 76 miles ‘Gateway’ to the city in and around which joins the A33 immediately to the west. south west of London, 30 miles east Southampton railway station. The A33 is one of the principal carriageways of Bournemouth and 20 miles west of serving central Southampton, connecting the Southampton city centre also provides Portsmouth. The city benefits from very M271 less than 3 miles to the north west. an extensive provision of quality retail good road communications, being situated warehousing, which includes the subject The subject property is directly opposite to the south of Junctions 3-7 of the M27 property, the adjacent West Quay Retail Southampton Central Station and backs motorways and lies immediately adjacent Park, together with standalone units on to West Quay Retail Park and a to the intersection of the M27 and the M3 occupied by IKEA and Toys ‘R’ Us. Toys ‘R’ Us store. motorway, which provides direct access to

the M25 and London conurbation. There are D

R regular rail services from Southampton city S E

centre to London Waterloo with a journey d s

a A3057 l

o l r e

time of approximately 1 hour 25 minutes. es S e a

yn H t a I n p R

e L The city centre has undergone significant E ACE PL Y ND R LA regeneration in recent years, centred O BER A UM around the extended West Quay Shopping D C MMERCIAL ROAD A3024 D M CO A Centre, owned by Hammerson/GIC, which O O U SOUTHAMPTON R A3024 e N CENTRAL NOR M TB a THA provides to approximately 800,000 sq ft A s

T t TE ATTEN N TB WA ew d WAY A33 N Y n roa p U a A33 of accommodation and forms a regional MO r S

k T

t attraction with anchor tenants including M e

A r

John Lewis, Marks & Spencer, Zara, Hollister WEST QUAY a RETAIL R PARK c

W S and Apple. E

S P T L Q U IKEA A The total city centre retail provision is A C MOUNTBATTEN RETAIL PARK Y E

R estimated at 2.18 million sq ft, ranking the city O y

A a

D w

12th out of the top 200 PMA/PROMIS centres. e M

n A

e R t e S

A33 s

The city council are proposing a city centre u H

RIVER TEST h

q g L

i A

‘Gateway’ plan to significantly improve the h

N E d city’s image and physical environment. a o platform r Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 41

MIDDLE WALLOP NEW A30 ALRESFORD STOCKBRIDGE

SALISBURY WINCHESTER M3 A3057 WHADDON A272 A36

EASTLEIGH BISHOPS A338 ROMSEY M3 WALTHAM A36 M27 WOODGREEN A32 SOUTHAMPTON LYNDHURST WICKHAM M27

RINGWOOD BROCKENHURST FAREHAM A35 LEE-ON-THE-SOLENT GOSPORT THE SOLENT LYMINGTON BARTON ON SEA 20 MINUTE DRIVETIME CATCHMENTCOWES Catchment & Demographics Description The subject property is situated in central Key demographic data is included in the table below: The subject property provides a modern Southampton, with the city benefiting from purpose built retail park, constructed in an extensive primary catchment population Southampton PROMIS 1995 which extends to a approximately Catchment Av/GB Av of approximately 670,000 people. Within 52,159 sq ft (4,845.73 sq m) GIA of a 20 minute drive time from the subject AB social classification 2001 29% 25% accommodation. property is a catchment population of The property is divided to provide 6 units in approximately 486,015 people. Per capita RW expenditure 2001 £495 £476 2 terraces, each being of steel portal frame The Southampton catchment is relatively Claimant count (employed) June 2012 3.2% 3.8% construction with attractive steel cladding affluent with 29% of the urban population panels to the elevations. The development classified in the AB social groups, being Household owner occupiers 2001 73% 68% is occupied by Wren Kitchens, Carpetright, above the PROMIS national average of Dreams, PC World, Majestic Wine and Oak 25%. In addition, the age profile population Furniture Land in units with a ground floor of Southampton’s primary catchment GIA of between 3,000 sq ft (278.71 sq m) population includes a particularly high and 15,000 sq ft (1,393.54 sq m). Substantial portion of younger adults in the 15-24 trading mezzanine accommodation has age group. been installed within the units occupied by Wren Kitchens, Dreams, Oak Furniture Land. The city benefits from a diverse and successful economic base, with the service The park is accessed directly from Western sector providing approximately 70% of Esplanade (A3024), leading to a customer employment. In addition, Southampton car park which is situated at the front of the docks and port provide significant unit providing a total of approximately 200 employment. Major employers include car parking spaces, equating to a ratio of Carnival, Ordnance Survey and British 1 : 200 sq ft (1 : 24.15 sq m). To the side of American Tobacco. units occupied by Oak Furniture Land and Majestic and to the rear of the other terrace is a concrete surfaced service yard.

The site area extends to approximately 3.12 acres (1.26 hectares). Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 42 Tenancy Schedule

Unit Tenant GIA Lease Start Term Expiry Unexpired Next rent Current Current Comments (sq ft) (years) date term (years) review rent rent (PER ANNUM) (sq ft)

A1 Carpetright plc 6,537 13/12/2004 20 12/12/2024 12.15 13/12/2014 £130,740 £20.00 Fixed increase on 29/04/2013 from to £140,000 per annum. Tenant b/o as at 17/03/2016. 6 months notice required. If A2 Ebuyer Holdings Ltd 6,912 18/03/2011 10 17/03/2021 8.41 18/03/2016 £70,000 £10.13 tenant doesn’t break, Landlord to pay tenant £81,666. B1 DSG Retail Ltd T/A PC World 15,000 16/10/2006 15 15/10/2021 8.99 16/10/2016 £347,700 £23.18 Fixed increase on 16/10/2016 to £403,200 per annum.

B2 Dreams plc 9,812 15/02/2008 14 24/12/2021 9.18 15/02/2013 £235,488 £24.00 Rents paid monthly. Tenant break option as at 03/07/2013. 3 months notice required. Rent from 03/04/2012 - C1 JB Global Ltd 10,898 03/04/2012 10 02/04/2022 9.45 03/04/2017 £141,674 £13.00 02/07/2013: £141,674 per annum Rent from 03/07/2013 – 02/01/2014: Peppercorn Rent from 03/01/2014 - 02/01/2015: £89,909 per annum Rent payable from 03/01/2015: £179,817 per annum. C2 Majestic Wine Warehouses Ltd 3,000 06/03/1995 25 02/03/2020 7.37 06/03/2015 £61,500 £20.50 Lease guaranteed by Majestic Wine plc.

Sub Station SSE Services plc 0 13/11/1996 50 12/11/2046 34.07 - £0 -

TOTALS 52,159 Contracted rent £987,102 £18.92 Planning Tenure

The property benefits from an open A1 The site, as outlined in red, is held freehold. (non-food) use. A planning summary can be provided upon request. Tenancies

The property is let in its entirety in Ground accordance with the tenancy schedule above and produces a current rental income of £987,102 per annum, equating to an Conditions overall rent of £18.92 per sq ft. The property benefits from an average unexpired lease term (ignoring breaks) of 9.4 years. We An Environmental Report is available would highlight the fixed rental increase in the upon request. lease into DSG Retail Ltd in 2016. Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 43 Tenants’ Covenants We set out below a summary of the tenant’s most recent accounts and Dun & Bradstreet rating.

UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s) 30/04/2011 £486,800 £6,600 £1,200 1 Carpetright plc 1A2 01/05/2010 £516,600 £22,300 £4,000 31/12/2010 £259,254 -£3,525 £35,411 2 Ebuyer Holdings Ltd 5A2 31/12/2009 £233,274 -£207 £37,597 30/04/2011 £3,858,000 £18,400 £327,600 3 DSG Retail Ltd 5A1 01/05/2010 £4,110,495 -£2,136 £285,700 24/12/2010 £256,131 £4,433 £26,048 3 Dreams plc 4A1 24/12/2009 £243,570 £17,900 £42,077 28/03/2011 £234,217 £18,571 £36,475 4 Majestic Wine Warehouses Ltd 5A1 29/03/2010 £312,540 £15,620 £29,561 30/09/2011 £34,071 £3,877 £3,036 5 JB Global Ltd 2A3 30/09/2010 £25,913 £1,885 £1,760 Trading Profile / Tenants’ Profile Asset Management The scheme is fully let to substantial PC World Majestic Wine We understand the retailers generally trade We would identify the fixed uplift to be national ‘out of town’ retailers. A brief PC World is the UK’s largest specialist Majestic Wine are a highly successful well from this location. Oak Furniture Land payable by PC World in 2016, which will summary of these is out below. retailer of PCs and related items, being specialist wine retailer, currently trading have a break in July 2013, and following the enhance the income stream. We understand opening of a store at Hedge End, have verbally that in common with many other locations, Carpetright the sister company of Currys, both of from approximately 175 outlets throughout which are subsidiaries of the Dixons Retail the UK and is listed on the London indicated that they may exercise this break PC World would ideally wish to amalgamate Carpetright is the UK’s leading retailer plc, which is listed on the London Stock Stock Exchange with a current market option. Home Bargains have indicated they the PC World and Currys brands in a single of floor coverings currently trading from Exchange, with a market capitalisation of capitalisation of approximately £283 million. would be interested in taking the unit if Oak unit and there may be potential to negotiate approximately 703 stores. The company approximately £759 million. PC World and Furniture Land vacate. We believe interest in a capital payment for the surrender of has a London Stock Exchange listing Oak Furniture Land the other Dixons brands currently trade this unit would be at a higher rental rate than their lease. with a current market capitalisation of Oak Furniture Land is a rapidly expanding from approximately 587 stores throughout is currently being paid. Indeed, we believe that approximately £460 million. manufacturer and retailer of solid oak In addition, given the nature of the retailers the UK, have significantly benefited from the given the flexibility of the planning consent this furniture. The company is expanding on the scheme, we do not believe the Wren Kitchens recent demise of Best Buy’s UK operations, scheme could attract interest from occupiers in by adding to its successful online retail car park is over utilised and there may Wren Kitchens are a privately owned retailer together with a reduction in the number of the active ‘discount’ and food sectors. presence by opening physical stores in be the option of considering a pod/A3 specialising in the manufacture and fully competing stores operated by Comet. major out of town retail destinations. They development here. assembled kitchen units and bedroom Dreams plc will trade from 35 units by the end of 2012 furniture across the UK. The company Dreams are the UK’s leading specialist expect to open a further 15 in the next was founded in 2009 and backed by an retailer of beds, currently trading from in 24 months. experienced management team who have excess of 200 stores throughout the UK previously developed a highly successful mainly in out of town retail locations. kitchen manufacturing business in both the UK and the US and have expanded to exploit the gap in the market following the demise of the likes of MFI and Möben. The brand currently trade from approximately 35 showrooms across the UK and will continue to expand in the coming years. Mountbatten retail park Southampton THE SATURN PORTFOLIO PAGE 44 EPCs

CGNU Life Assurance Ltd Certificate Reference Number: CGNU Life Assurance Ltd Certificate Reference Number: CGNU Life Assurance Ltd Certificate Reference Number: CGNU Life Assurance Ltd Certificate Reference Number: Allied Carpets, Unit A1 0280-0331-2590-2595-8006 Carpetright Plc, Unit A2 0950-3085-0361-6250-6040 PC World, Unit B1 0451-3055-0810-0100-2691 Dreams, Unit B2 0950-5011-0301-5280-1080 Mountbatten Retail Park, Western Esplanade Mountbatten Retail Park, Western Esplanade Mountbatten Retail Park, Western Esplanade Mountbatten Retail Park, Western Esplanade SOUTHAMPTON SOUTHAMPTON SOUTHAMPTON SOUTHAMPTON SO15 1QJ SO15 1QJ SO15 1QJ SO15 1QJ

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd.

7 6 312 0 7 312 7 6 312 7 6 312 4 1 2 2 4 1 4 1

6 5 6 6 4 1 4 4 EnergySK-635332-021753 Performance Asset Rating EnergySK-023632-322520 Performance Asset Rating EnergySK-036510-031400 Performance Asset Rating EnergySK-330450-068353 Performance Asset Rating

More energy efficient More energy efficient More energy efficient More energy efficient 364 364 364 364

1 1 1 1

8 0 -A+0 2 8 0 - 0 3 3 1 - 2 5 9 0 - 2 5 9 5 - 8 0 0 6 - S K 6 3 5 3 3 2 0 2 1 7 5 3 - D C L G x E P C g e n 2 0 0 8 5 6 -A+0 9 5 0 - 3 0 8 5 - 0 3 6 1 - 6 2 5 0 - 6 0 4 0 - S K 0 2 3 6 3 2 3 2 2 5 2 0 - D C L G x E P C g e n 2 0 0 8 8 8 -A+0 4 5 1 - 3 0 5 5 - 0 8 1 0 - 0 1 0 0 - 2 6 9 1 - S K 0 3 6 5 1 0 0 3 1 4 0 0 - D C L G x E P C g e n 2 0 0 8 4 5 -A+0 9 5 0 - 5 0 1 1 - 0 3 0 1 - 5 2 8 0 - 1 0 8 0 - S K 3 3 0 4 5 0 0 6 8 3 5 3 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 A 0-25 A 0-25 This is how energy efficient 26 B 26-50 26 B 26-50 26 B 26-50 26 B 26-50 45 the building is. This is how energy efficient 51-75 51-75 the building is. 51-75 51-75 C 286 C 56 286 C 286 C 286 This is how energy efficient This is how energy efficient D 76-100 80 the building is. D 76-100 D 76-100 88 the building is. D 76-100 52 E 101-125 52 E 101-125 52 E 101-125 52 E 101-125 F 126-150 F 126-150 F 126-150 F 126-150

78 G Over 150 78 G Over 150 78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient Less energy efficient Less energy efficient

260 260 260 260 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Heating and Mechanical Ventilation could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Air Conditioning could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: 156 156 156 156 2 2 2 2 Total useful floor area (m ): 1050 If newly built Total useful floor area (m ): 602 If newly built Total useful floor area (m ): 1373 If newly built Total useful floor area (m ): 1389 If newly built Building complexity 35 Building complexity 38 Building complexity 58 Building complexity 36 (NOS level): 4 If typical of the (NOS level): 3 If typical of the (NOS level): 4 If typical of the (NOS level): 4 If typical of the 46 existing stock 50 existing stock 93 existing stock 45 existing stock

182 208 234 182 208 234 182 208 234 182 208 234

Energy Performance Certificate Energy Performance Certificate 338 338 Non-Domestic Building Non-Domestic Building

Unit C1 Certificate Reference Number: CGNU Life Assurance Ltd Certificate Reference Number: Mountbatten Retail Park 0505-3077-0915-0000-3795 Majestic Wine Warehouses Ltd, Unit C2 0503-9556-4630-2700-3103 Western Esplanade Mountbatten Retail Park, Western Esplanade SOUTHAMPTON SOUTHAMPTON SO15 1QJ SO15 1QJ

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government’s website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd.

7 6 312 0 7 312 4 1 2 2

6 5 4 1 EnergySK-442140-002620 Performance Asset Rating EnergySK-402532-367520 Performance Asset Rating

More energy efficient More energy efficient 364 364

1 1

9 2 -A+0 5 0 5 - 3 0 7 7 - 0 9 1 5 - 0 0 0 0 - 3 7 9 5 - S K 4 4 2 1 4 0 0 0 2 6 2 0 - D C L G x E P C g e n 2 0 0 8 5 9 -A+0 5 0 3 - 9 5 5 6 - 4 6 3 0 - 2 7 0 0 - 3 1 0 3 - S K 4 0 2 5 3 2 3 6 7 5 2 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 26 B 26-50 26 B 26-50 This is how energy efficient 51-75 51-75 the building is. C 286 C 59 286 This is how energy efficient D 76-100 92 the building is. D 76-100 52 E 101-125 52 E 101-125 F 126-150 F 126-150

78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient

260 260 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Air Conditioning could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: 156 156 2 2 Total useful floor area (m ): 1630 If newly built Total useful floor area (m ): 317 If newly built Building complexity 57 Building complexity 37 (NOS level): 4 If typical of the (NOS level): 3 If typical of the 89 existing stock 51 existing stock

182 208 234 182 208 234 B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 46 B&Q/HALFORDS CANNON LANE TONBRIDGE KENT, TN9 IBQ B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 47

INVESTMENT SUMMARY Located in the prosperous commuter town of Tonbridge, approximately 9 miles south of the M25 motorway and 28 miles south east of Central London.

The property is situated in a prominent location fronting the A26, directly opposite the only other retail warehousing serving the town.

The property comprises 2 units occupied by B&Q and Halfords, extending to a total of approximately 57,397 sq ft (5,332 sq m).

Restricted planning consent.

Freehold.

The property is let to B&Q plc and Halfords Ltd on leases expiring in April and November 2023 respectively. The property provides a current rental income of £854,000 per annum, equating to an average of £14.88 per sq ft.

Asset management opportunities include downsizing the Halfords unit. B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 48

A308 2 Gravesend 1 Staines London Bromley Kingston A2 Sunbury Upon Thames A20 1 M3 A23 A309 A3 Chatham 1 A24 Croydon 3 2 A232 Escher M25 M25 A232 Swanley M2 M20 A3 ORPINGTON A21 4 A228 3 A243 Epsom

10 A24 2 A229 M25 4 A23 M26 2A A3 Biggin Hill 6 9 A22 5 Leatherhead A217 5 M20 East Malling 7 8 KINGSWOOD Caterham A25 M25 KINGS HILL 7 Maidstone 8 6 Sevenoaks Oxted A24 Redhill Reigate A26 A229

M23 A21 EAST PECKHAM A22 Edenbridge Horley Lingfield TONBRIDGE Paddock Wood STAPLEHURSRSTAPLEHURST

9 Southborough LONDON GATWICK COWDEN A26

A264 10 East Grinstead

CRANLEIGH Royal Tunbridge A21 A24 Crawley Wells A229 10A Forest Row Lamberhurst M23 A264 Cranbrook

BALCOMBE Crowborough Horsham

A23 A22 A26 Ticehurst A24

Haywards Heath MARESFIELD A272 A21 A272 Uckfield Heathfield e n Location Situation a l e m u Tonbridge is an prosperous commuter town The subject property is situated to the B245 ad a n o h y r e r g v l t bu i a situated approximately 28 miles (45 km) north of Cannon Lane (A26), approximately on h salis h e lis R wal d I rn D co south east of Central London. 1 mile to the east of Tonbridge town o G n E r W centre. The subject property forms part of A o Y ss The town benefits from good road ad a p the centre of retail warehousing serving y communications, being situated immediately d b l park rd a Tonbridge, with competition being limited hil w ry o o to the east of the A21 dual-carriageway, r l d to the development on the opposite side d e a which links directly to the market town of n h

of Cannon Lane, which is owned by a client r

u Sevenoaks and onto Junction 5 of the M25 A26 of PRUPIM and extends to 45,000 sq ft. o

motorway, situated approximately 9 miles b p

This is occupied by Homebase, Carpetright i

h interiors (14 km) to the north west. and Ponden Home. Adjacent to this there s b e o k is a proposed development of retail units r y In addition, the A26 provides access d C

A to Tunbridge Wells, which is situated extending to 8,000 sq ft and 12,000 sq ft N

N approximately 4.5 miles (7 km) to the south respectively, for which a planning A227 O

N west and to Maidstone, approximately application has been submitted. LA NE

15 miles (23.25 km) north west. The town

Ward Homes are currently developing benefits from regular rail connections into v

a A26 TONBRIDGE 200 apartments and houses on the le r London Waterloo and Charing Cross, with a t oad adjacent site to the subject property e journey time of 35 to 45 minutes. e r w which will considerably improve the t o s o d Gatwick Airport is situated approximately immediate location. h g ig a E t h p e e N 35 miles (54 km) to the west of the town, A21 m A w L b a u K whilst Heathrow is easily accessible via the y r A

y O

ROAD M25, being approximately 37 miles (56 km) r E EY o DL a G TU d D to the north west. LO to nb rid ge by pass A2014

A21 tonbridge by pass

A26 B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 49

2 4 BIGGIN M26 2A 5 6 HILL 5 M20 WEST 7 A25 MALLING M25 SEVENOAKS 6 A227 MAIDSTONE OXTED SHIPBOURNE

EAST A229 A26 PECKHAM SOUTH A21 GODSTONE A22 B2027 TONBRIDGE EDENBRIDGE HEVER LINGFIELD B2026 PADDOCK CLAYGATE SOUTHBOROUGH WOOD A26 EAST GRINSTEAD A264 A264 ROYAL TUNBRIDGE WELLS A21

FOREST ROW HARTFIELD LAMBERHURST 20 MINUTE DRIVETIME CATCHMENT CRANBROOK Catchment & Demographics Description Tonbridge benefits from an extensive and 20 minute PROMIS/GB The subject property provides a purpose built The total site area extends to approximately affluent catchment population, estimated catchment population AV retail warehouse development in 2 detached 5.84 acres (2.36 hectares). to be approximately 48,000 people buildings, both of steel portal frame A, B & C1 social grade 2001 68.99% 53.68% Occupiers of an adjacent industrial building living within a 10 minute drive time of the construction, which were built in 1988. share access by an access way through the property, rising to approximately 184,000 Travel to Work Area % unemployed (Jan 11) 1.50% 5.30% At the front of the site is a highly prominent front of the site onto Cannon Lane. people within a 20 minute drive time. unit occupied by B&Q, which provides a Owner occupied households 2001 74.74% 69.81% As may be expected, the town’s catchment total floor area of approximately 38,473 sq ft population includes a high proportion (3,574.2 sq m) gross internal area, including within the A, B and C1 social grades, being first floor amenity accommodation. To the significantly above the national average. rear of the unit is an enclosed garden centre. As at January 2011, the claimant count To the rear of the site is the unit occupied unemployment rate within the Travel to by Halfords, which provides a total gross Work Area stood at only 1.5%, as compared internal area of approximately 18,668 sq ft to the national average of 5.3%. Some (1,734.3 sq m), including a mezzanine, key demographic data is included in the part which is rentalised. Part of the unit table opposite: was subdivided and formerly occupied by the AA for their motor service bay operation. This area is currently not occupied by Halfords.

Customer and service vehicles access the site directly off Cannon Lane and there is a tarmacadamed customer car park situated at the front of the 2 units providing a total of approximately 234 car parking spaces, equating to a ratio of 1 : 247 sq ft (1 : 22.9 sq m). There are concrete surfaced service yards situated to the rear of the B&Q and the side of Halfords. B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 50 Tenancy Schedule

Unit Tenant GIA Lease Start Term Expiry Unexpired Break Current Current Comments (sq ft) (years) Date term Option rent rent (years) (per annum) (per sq ft)

1 B&Q plc 38,505* 25/04/1988 35 24/04/2023 10.52 £569,500 £14.79

4,068 sq ft sublet to the Automobile Association Ltd until 7 2 Halfords Ltd 18,892** 11/11/1988 35 10/11/2023 11.06 £284,500 £15.06 November 2023 at £60,000 per annum.

TOTALS 57,397 £854,000 £14.88

*Includes 2,153 sq ft (200 sq m) of 1st floor accommodation. **Includes 919 sq ft (85.37 sq m) of mezzanine accommodation.

Planning Tenure

The development benefits from a restricted The site, as outlined in red, is held freehold. interiors planning consent, which allows the sale of DIY, home and garden products, hardware, self and pre-assembled furniture, household furniture, household furnishings, floor coverings, electrical goods, motor Tenancies accessories and motor vehicles and any other bulky goods that may be agreed in The property is let in its entirety in writing with the Local Planning Authority accordance with the tenancy schedule and for no other purpose. above and currently produces a rental

A planning report is available upon request. income of £854,000 per annum, equating to an overall rent of £14.88 per sq ft. The occupational leases expire in April and November 2023. Ground Conditions

An Environmental Report is available upon request. B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 51 Tenants’ Covenants

We summarise below the most recent accounts for the tenants together with the latest Dun & Bradsheet rating.

UNIT Tenant Year Sales Profit/Loss Net Worth D&B Ending Turnover Pre Taxes (000s) Rating (000s) (000s)

29/01/2011 £3,711,700 £144,700 £3,656,700 1 B&Q plc 5A1 30/01/2010 £3,792,400 £400,400 £3,476,400

01/04/2011 £771,400 £122,000 £350,900 2 Halfords Ltd 5A1 02/04/2010 £817,600 £109,200 £261,500

Tenants’ Profile Trading Profile / Covenants Asset Management B&Q With an extensive, wealthy catchment and transaction could be agreed whereby, B&Q plc is a wholly owned subsidiary of limited competition, we understand both subject to satisfactory tenant demand, the Kingfisher Group plc and is the UK’s market retailers trade well in this location. Halfords occupancy could be re-geared on leading DIY retailer. In recent years they the basis of the space which they currently Whilst we believe B&Q are content with have expanded to international markets occupy, with remaining accommodation the size of their store, the Halfords unit, and now currently trade from in excess of being let to a third party retailer. Historically, extending to circa 18,668 sq ft, may be 950 stores in 8 countries throughout Europe discussions have taken place with Pets larger than they would ideally like. Part and Asia. at Home, who have had an interest in of the unit (4,068 sq ft/377.92 sq m) is this location. Halfords sublet to the AA who operated the space Halfords Ltd are the UK’s leading retailer as a motor servicing centre. The AA In addition, we believe there may be the of automotive, bicycles and associated have withdrawn from this trading format, possibility of developing a restaurant / pod products and currently trade from in excess however, we understand that they remain on the front of the site subject to obtaining of 467 stores in the UK and the Republic liable for the occupation costs in respect the necessary consents and agreement from of Ireland. of this accommodation. We believe a the tenants. B&Q/Halfords Tonbridge, Kent THE SATURN PORTFOLIO PAGE 52 EPCs

Energy Performance Certificate Energy Performance Certificate 338 338 Non-Domestic Building Non-Domestic Building

B & Q Plc Certificate Reference Number: Halfords Ltd Certificate Reference Number: Cannon Lane 0770-3005-0114-0400-5491 Cannon Lane 0949-3075-0816-0400-5191 TONBRIDGE TONBRIDGE TN9 1PN TN9 1PN

This certificate shows the energy rating of this building. It indicates the energy efficiency of This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website www.communities.gov.uk/epbd. information on the Government's website www.communities.gov.uk/epbd.

7 6 312 0 7 312 4 1 2 2

6 5 4 1 EnergySK-564232-012263 Performance Asset Rating EnergySK-222532-347520 Performance Asset Rating

More energy efficient More energy efficient 364 364

1 1

4 7 -A+0 7 7 0 - 3 0 0 5 - 0 1 1 4 - 0 4 0 0 - 5 4 9 1 - S K 5 6 4 2 3 2 0 1 2 2 6 3 - D C L G x E P C g e n 2 0 0 8 5 0 -A+0 9 4 9 - 3 0 7 5 - 0 8 1 6 - 0 4 0 0 - 5 1 9 1 - S K 2 2 2 5 3 2 3 4 7 5 2 0 - D C L G x E P C g e n 2 0 0 8 Net zero CO2 emissions Net zero CO2 emissions A 0-25 A 0-25 This is how energy efficient This is how energy efficient 26 B 26-50 47 the building is. 26 B 26-50 50 the building is. 51-75 51-75

C 286 C 286 D 76-100 D 76-100

52 E 101-125 52 E 101-125 F 126-150 F 126-150

78 G Over 150 78 G Over 150 Less energy efficient Less energy efficient

260 260 104 Technical information Benchmarks 104 Technical information Benchmarks

130 Main heating fuel: Natural Gas Buildings similar to this one 130 Main heating fuel: Natural Gas Buildings similar to this one Building environment: Heating and Natural Ventilation could have ratings as follows: Building environment: Heating and Natural Ventilation could have ratings as follows: 156 156 2 2 Total useful floor area (m ): 3346 If newly built Total useful floor area (m ): 1664 If newly built Building complexity 36 Building complexity 36 (NOS level): 4 If typical of the (NOS level): 4 If typical of the 49 existing stock 52 existing stock

182 208 234 182 208 234 CONTACT INFORMATION

Heathcoat House Miles R Marten 20 Savile Row Direct Line: 020 7317 3777 London W1S 3PR Mobile: 07770 748 290 Email: [email protected] Main line: 020 7495 4321

Graham A Lind Direct Line: 020 7317 3796 Mobile: 07917 730 061 Email: [email protected]

Property Misrepresentation Act good faith but should not be relied upon as being a statement of representation or fact. Any areas, measurements or distances referred to herein are approximate only. Wilkinson Williams LLP give notice to anyone who may read these particulars Nothing in these particulars shall be deemed to be a statement that the property is in good Where there is reference in the particulars to the fact that alterations have as follows: condition or otherwise nor that any services or facilities are in good working order. been carried out or that a particular use is made of any part of the property. Descriptions of the property are inevitably subjective and the descriptions contained herein The photographs appearing in this brochure show only certain parts of the property at These particulars are prepared for the guidance only of prospective purchasers. They are are given in good faith as an opinion and not by way of statement of fact. intended to give a fair overall description of the property but are not intended to constitute the time when the photographs were taken. Certain aspects may have changed since the part of an offer or contract. photographs were taken it should not be assumed that the property remains precisely as Plans are published for convenience of identification only and although believed displayed in the photographs. Furthermore, no assumptions should be made in respect of to be correct, their accuracy is not guaranteed and they do not form part of Any information contained herein (whether in the text, plans or photographs) is given in parts of the property which are not shown in the photographs. any contract.

10487 October 2012