Secure Long Income Roadside Portfolio

SECURE LONG INCOME ROADSIDE PORTFOLIO

OVER 17 YEARS OF SECURE INCOME TO MCDONALD’S RESTAURANTS LTD ACROSS 5 PROMINENT FREEHOLD ROADSIDE DRIVE-THRU PROPERTIES

RENTS BASED OFF APPROXIMATELY CIRCA 40% OF ERV CREATING A GROUND RENT STYLE INCOME STREAM PORTFOLIO SUMMARY

• Five prominent recently redeveloped freehold roadside drive-thru assets, all located on busy arterial roads. Whitchurch - SY13 1JZ • All assets strategically situated on roundabouts with dual road access generating strong trade for tenants due to increased traffic numbers.

• Securely let to McDonald’s Restaurants Ltd with an AWULT of over 17 years to expiry.

Highly sought after drive-thru planning consent with 24 hour • New Forest - BH24 3HN trading adding significant value to each site. EDINBURGH GLASGOW

• Unique revisionary income with the rent topped up to 2022 reviews producing £264,858 per annum.

• Estimated rental value of £645,830 per annum.

• All five leases benefit from2% per annum fixed uplifts West Lynn - PE34 3LW reviewed five yearly. LEEDS

MANCHESTER • Significant uplift in rental value in 2038 upon lease expiry reflecting a ground rent style income.

BIRMINGHAM • Offers in excess of £7,100,000 (SEVEN MILLION ONE NORWICH HUNDRED THOUSAND POUNDS) subject to contract and exclusive of VAT. A purchase at this level will reflect anet CAMBRIDGE Yarmouth - NR13 5AR initial yield of 3.5% and an ultimate reversionary yield of 8.52% after allowance for purchaser’s costs of 6.8% LONDON BRISTOL

EXETER

Uckfield - TN22 5EP

SECURE LONG INCOME ROADSIDE PORTFOLIO 2 PORTFOLIO TENANCY SUMMARY

The portfolio is entirely let to McDonalds Restaurants ltd on FRI leases producing a current income of £228,800 per annum. Our client will be topping up to the 2022 fixed rental uplifts to provide a purchaser with a rent of £264,858 per annum. The individual tenancies are summarised in the schedule below.

Unexpired Site 2022 Topped Area 2022 Rent ERV ERV No. Location Lease Start Rent Review Lease Expiry Term Area Up Rent Comments (sq ft) (Per sq ft) (Per annum) (Per sq ft) (Years) (Acres) (Per annum)

Fixed 5 yearly rental increases New Forest to 2% pa. 1 25/12/2013 24/12/2038 24/12/2038 18.00 3,686 1.37 £66,550 £18.05 £138,225 £37.50 BH24 3HN From 2028 - £73,205 pa; From 2033 -£80,525 pa.

1) Property element let at £48,400 and based on Fixed 5 yearly rental increases rising From 2027 - £53,240 pa; West Lynn 2 29/09/2012 28/09/2037 28/09/2037 17.00 4,103 0.87 £61,578 £15.01 £143,605 £35.00 From 2032 - £58,564 pa. PE34 3LW 2) Car Park £13,150 per annum on car parking with annual rent reviews linked to RPI (cap of 1% & 4%).

Fixed 5 yearly rental increases Whitchurch 3 24/06/2012 23/06/2037 23/06/2037 16.75 4,404 1.01 £48,400 £10.99 £154,140 £35.00 From 2027 - £53,240 pa; SY13 1JZ From 2032 - £58,564 pa.

Fixed 5 yearly rental increases Uckfield 4 24/06/2012 23/06/2037 23/06/2037 16.75 3,044 1.19 £45,980 £15.11 £106,540 £35.00 From 2027 -£50,578 pa; TN22 5EP From 2032 - £55,635 pa.

Fixed 5 yearly rental increases Yarmouth 5 29/09/2012 28/09/2037 28/09/2037 17.00 2,952 0.96 £42,350 £14.35 £103,320 £35.00 From 2027 - £46,585 pa; NR13 5AR From 2032 - £51,243 pa.

Total 17.12 18,189 5.4 £264,858 £14.63 £645,830 £35.50

SECURE LONG INCOME ROADSIDE PORTFOLIO 3 PLANNING COVENANT INFORMATION

Each site in the portfolio benefits form A3 use (E use after 1st Sept 2020) and A5 use McDonald’s is the largest chain of quick service restaurants in the world. It (Sui Generis after 1st Sept 2020), however they also benefit from the highly sought serves tens of millions of customers each day. after roadside drive thru use, with 24 hours trading* Having opened the first UK McDonald’s in Woolwich in 1974, the company now operate We are of the opinion that this will command a higher rental value due to the premium 1,270 restaurants and franchisee operations on high streets, shopping centres, roadside attached to this specific consent. locations, leisure centres, airports, railway terminals and motorway service stations across the UK. *With the exception of Pickets Post which is open 5am – 11pm. For the year ending 31/12/2018 Mcdonald’s Restaurants Limited (Co No. 01002769) reported a turnover of £1.51Bn and pre-tax profits of £306.27M. For the same year they had reported net worth of £1.098Bn.

BACKGROUND Each site in this portfolio was carefully identified by McDonald’s for occupation in 2012 from a substantial roadside portfolio held by administrators. Each site was strategically selected due to the prominence of their location with specific focus on roundabouts and dual road access.

McDonald’s undertook significant investment on each site carrying out redevelopments and in some cases carrying out extensions. This major investment by McDonald’s was in lieu of any capital contribution, but was reflected in the major reduction in rental levels set within the leases.

TENURE All properties are held freehold.

SECURE LONG INCOME ROADSIDE PORTFOLIO 4

ERV The current passing rent of £228,800 per annum equates to an average rent of £12.58 psf across the portfolio, which is extremely low in comparison to the estimated rental value.

We are of the opinion that based on conservative ERV’s of £37.50 psf and £35.00 psf, this produces an overall estimated rental value of £645,830 per annum.

Market comparables are listed below highlighting the reversionary nature of these assets.

Town Address Tenant Size (sq ft) Transaction Rent (pa) Rent (psf)

London Staples Corner Shopping Park McDonald’s 4,199 OML £150,000 £35.72

Cardiff International Sports Village Starbucks 1,800 OML £100,000 £55.56

Cheshire Cheshire Oaks Costa 1,810 OML £100,000 £55.25

Bedfordshire Sandy Costa 1,800 OML £90,000 £50.00

Chelmsford Springfield Starbucks 2,045 OML £102,250 £50.00

Yorkshire Wakefield Costa 1,800 OML £90,000 £50.00

Newbury Newbury Retail Park McDonald's 2,000 RR £90,000 £45.00

Berkshire Newbury McDonald’s 2,000 OML £90,000 £45.00

Lewisham Sydenham McDonald’s 3,500 OML £144,000 £41.14

Slough Buckingham Ave McDonald’s 3,122 RR £123,319 £39.50

Berkshire Slough McDonald’s 3,122 OML £123,319 £39.50

Croydon Waddon Retail Park McDonald’s 2,646 RR £104,517 £39.50

Bicester Bicester Gateway Burger King 4,186 OML £163,600 £39.08

High Wycombe Wycombe Retail Park Pizza Hut 3,434 RR £117,511 £34.22

Malvern Malvern Shopping Park McDonald's 3,180 RR £103,570 £32.57

SECURE LONG INCOME ROADSIDE PORTFOLIO 5 Picket Post, New Forest, BH24 3HN

INVESTMENT SUMMARY • Prominent roadside drive-thru location on a busy road • Located on A31 next to Shell Petrol Filling Station and is the only standalone restaurant at this junction • The site is accessible to traffic from both directions of A31 and is located close to a junction • Leases benefit from 2% per annum fixed uplifts reviewed five yearly • Entirely let to McDonald’s Restaurants Limited until December 2038 • Next guaranteed fixed uplift to take place in 2028 • Rent topped up to 2023 review producing £66,550 per annum • Benefits from on-site parking for approximately 22 cars and children’s play area • ERV of £138,225 per annum

SECURE LONG INCOME ROADSIDE PORTFOLIO 6 d LOCATION a

y r

u Picket Post is a busy road junction and service area in the New Forest National Park of Hampshire,

a Rockford England. It lies on the A31 road which merges into the M27. It is the main road connection between the

S New Forest

Bournemouth and the South East of England.

Ibsley Water

Blashford Picket Post is located on the A31 dual carriageway which passes through the New Forest. It is situated Linford 2.5 miles from the A338 at Ringwood and 8 miles from Junction 1 of the M27 at Cadnam. A minor road 31 to the village of Burley joins with the A31 at Picket Post. McDonald’s is the only standalone restaurant A Shooley at Picket Post as is accessible to traffic flow from both directions of the very busy dual carriage way.

The property is 15 miles north-east of Bournemouth and 19 miles west of Southampton which is serviced by the A31, A338, M27 roads, Brockenhurst Station, Sway Station by rail and Bournemouth A31 Forest Corner International by air. 31 A Ringwood The property is situated to the north of the A31, the main connection road west of Southampton at the same service station as Shell.

SECURE LONG INCOME ROADSIDE PORTFOLIO 7 DESCRIPTION

The property comprises a modern drive-thru restaurant surrounded by woodland and benefits from on-site parking for approximately 22 cars and a small garden with children’s play area facility. The property has a site area of approximately 1.37 acres.

OS Plan B&W

419000 419100

106200 106200

A31

106100 106100

SECURE LONG INCOME ROADSIDE PORTFOLIO 8 419000 419100

Metres 0 5 10 20 30 40 50 Scale: 1:1250

Picket Post Ringwood Supplied by: National Map Centre BH24 3HN Plot centre co-ordinates: 419074,106152 License number: Herts100031961 Download file: lewpart_newforest.zip Produced: 09/01/2019 Project name: lewpart_newforest Serial number: 2067337

INVESTMENT SUMMARY • Entirely let to McDonald’s Restaurants Limited until September 2037 • Annual increases on the car park • Rent topped up to 2022 review producing £61,578 per annum • Leases benefit from 2% per annum fixed uplifts reviewed five yearly • Prominent roadside drive-thru location at the busy intersection of the A47 and • Next guaranteed fixed uplift to take place in 2027 A17 adjacent to a Shell Petrol filling station and a Premier Inn • Benefits from on-site parking for approximately 64 cars • Strong roundabout location accessible to traffic from all directions • ERV of £143,605 per annum

SECURE LONG INCOME ROADSIDE PORTFOLIO 9 C Kings Lynn l e n LOCATION c

a A148

West Lynn forms the part of the town of King’s Lynn in Norfolk that is west of the River Great Ouse.

R d

A The property is located 33 miles north-east of Peterborough and 44 miles north-west of Norwich. By road 17 it is serviced by the A17, A47, A149, A10, by rail Kings Lynn station and Norwich International by air.

The property is situated to the West of Clenchwarton Road, to the North or the A47, which is the trunk road linking Birmingham to Lowestoft, Suffolk and A17, linking Newark-on-Trent in Nottinghamshire,

River Great Ouse England, to King’s Lynn in Norfolk.

The property is located adjacent to a Shell Petrol Filling Station and a Premier Inn with the East Coast

A148 Wisbech Rd Business Park also located nearby. A 47

7 A4

SECURE LONG INCOME ROADSIDE PORTFOLIO 10 DESCRIPTION

The property comprises a modern drive- thru restaurant which operates a 24 hour service and benefits from parking for approximately 36 cars. The property has a site area of approximately 0.87 acres.

OS Plan B&W

560800 560900

318900 318900

A17

318800 318800 A47 560800 560900

SECURE LONG INCOME ROADSIDEMetres PORTFOLIO 11 0 5 10 20 30 40 50 Scale: 1:1250

Clenchwarton Road West Lynn Supplied by: National Map Centre PE34 3LW Plot centre co-ordinates: 560880,318856 License number: Herts100031961 Download file: lewpart_westlynn.zip Produced: 09/01/2019 Project name: lewpart_westlynn Serial number: 2067340

INVESTMENT SUMMARY • Entirely let to McDonald’s Restaurants Limited until June 2037 • Leases benefit from 2% per annum fixed uplifts reviewed five yearly • Rent topped up to 2022 review producing £48,400 per annum • Next guaranteed fixed uplift to take place in 2027 • Prominent roadside drive-thru location at the busy intersection of A525 and A41 • Situated next to Starbucks, Subway and Esso Benefits from on-site parking for approximately 43 cars • Strong roundabout location accessible to traffic from all directions • ERV of £143,130 per annum

SECURE LONG INCOME ROADSIDE PORTFOLIO 12 Brooklands LOCATION Ches ter Rd

A41 Whitchurch is a market town in northern Shropshire, England. It lies 2 miles (3 km) east of the Welsh L ond on border, 20 miles (30 km) north of the county town of Shrewsbury, 20 miles (30 km) south of Chester, Rd and 15 miles (24 km) east of Wrexham, which is the largest town in north Wales and an administrative, commercial, retail and educational centre. Rd brook Small Jubilee Park Whitchurch The property is located 22 miles north of Shrewsbury and 29 miles west of Stoke-on-Trent. Its is serviced by A41, A525, A49 by road, Whitchurch station by rail and Liverpool John Lennon aiport. A525 The property is prominently located at the intersection of the A525 and the A41 and lies adjacent to an Wrexham Rd Esso Petrol Filling Station, Starbucks and Subway. Chemistry A41

SECURE LONG INCOME ROADSIDE PORTFOLIO 13 DESCRIPTION

The property comprises a modern 24 hour drive-thru restaurant and benefits from on-site parking for approximately 43 cars. The property has a site area of approximately 1.01 acres.

OS Plan B&W

352700 352800

341300 341300

341200 341200 352700 352800

SECURE LONG INCOME ROADSIDE PORTFOLIO 14 Metres 0 5 10 20 30 40 50 Scale: 1:1250

525 Wrexham Road Whitchurch Supplied by: National Map Centre SY13 1JZ Plot centre co-ordinates: 352744,341283 License number: Herts100031961 Download file: lewpart_whitchurch.zip Produced: 10/01/2019 Project name: lewpart_whitchurch Serial number: 2067550

INVESTMENT SUMMARY

• Entirely let to McDonald’s Restaurants Limited until June 2037 • Leases benefit from 2% per annum fixed uplifts reviewed five yearly • Rent topped up to 2022 review producing £45,980 per annum • Next guaranteed fixed uplift to take place in 2027 • Prominent roadside drive-thru location at the busy intersection of A22 and A26 • Benefits from on-site parking for approximately 41 cars • Strong roundabout location accessible to traffic from all directions • ERV of £98,930 per annum

SECURE LONG INCOME ROADSIDE PORTFOLIO 15 Mares eld

H i g LOCATION h

A26 S

t Maresfield is a village in the Wealden District of East Sussex, in South East England. The village itself lies Cooper’s Green 1.5 miles (2.4 km) north of Uckfield. A22 A272 A272 The district has the highest proportion of home ownership of the 37 local authorities in Surrey, Sussex A22 and Kent and houses the major trunk road the A22, London to Eastbourne; which is crossed by the A26 Maidstone–Lewes road at Uckfield; and the A267 Tunbridge Wells to Eastbourne road. There are also three west-east roads: the A259 coastal route; the A27 Pevensey–Brighton trunk road; and further to the north, the A272 cross-country route to Winchester. Ringles Cross

A22

Uck eld Rocks Rd

SECURE LONG INCOME ROADSIDE PORTFOLIO 16 DESCRIPTION

The property comprises a modern 24 hour drive- thru restaurant and benefits from on-site parking for approximately 41 cars. The property has a site area of approximately 1.19 acres.

OS Plan B&W

546700 546800 546900 547000

123400 123400

123300 123300

123200 A26 123200

A22

123100 123100 546700 546800 546900 547000

SECURE LONG INCOME ROADSIDE PORTFOLIO 17

Metres 0 10 20 40 60 80 100 Scale: 1:2500

Maresfield Bypass Uckfield Supplied by: National Map Centre TN22 5EP Plot centre co-ordinates: 546860,123205 License number: Herts100031961 Download file: lewpart_maresfield2500.z Produced: 09/01/2019 Project name: iplewpart_maresfield2500 Serial number: 2067399

INVESTMENT SUMMARY • Entirely let to McDonald’s Restaurants Limited until June 2037 • Leases benefit from 2% per annum fixed uplifts reviewed five yearly • Rent topped up to 2022 review producing £42,350 per annum • Next guaranteed fixed uplift to take place in 2027 • Prominent roadside drive-thru location at a busy A47 between Norwich • Benefits from on-site parking for approximately 36 cars and Great Yarmouth • ERV of £95,940 per annum • Strong roundabout location accessible to traffic from all directions

SECURE LONG INCOME ROADSIDE PORTFOLIO 18 Witton Witton Run Great LOCATION Yarmouth v A47 Yarmouth Rd Great Yarmouth, often known to locals as Yarmouth, is a seaside town in Norfolk, England. It is located at the mouth of the River Yare, approximately 20 miles (30 km) east of Norwich. A47 Yarmouth Rd It is an aspiring location and is the gateway from the Norfolk Broads to the North Sea recently regenerated

c Norwich by the development of renewable energy sources. Cucumber Lane Cucumber

The property is situated on the busy A47 which is the main road between Norwich and Great Yarmouth to the east. The property lies adjacent to a Shell Petrol Filling Station.

Postwick Lane

Brundall

Brundall Gardens

River Yare Brundall

SECURE LONG INCOME ROADSIDE PORTFOLIO 19 DESCRIPTION

The property comprises a modern 24 hour drive-thru restaurant and benefits from on-site parking for approximately 36 cars. The property has a site area of approximately 0.96 acres.

OS Plan B&W

632000 632100

309400 309400

309300 309300 632000 632100

SECURE LONG INCOME ROADSIDE PORTFOLIO 20

Metres 0 5 10 20 30 40 50 Scale: 1:1250

Yarmouth Road Yarmouth Supplied by: National Map Centre NR13 5AR Plot centre co-ordinates: 632082,309314 License number: Herts100031961 Download file: lewpart_yarmouth.zip Produced: 09/01/2019 Project name: lewpart_yarmouth Serial number: 2067341

Offers in excess of £7,100,000 (SEVEN MILLION The EPCs will be available upon request. All properties are elected for VAT. ONE HUNDRED THOUSAND POUNDS) subject to contract and exclusive of VAT. A purchase at this level will reflect anet initial yield of 3.5% and an ultimate reversionary yield of 8.52% after allowance for purchaser’s costs of 6.8%.

FURTHER INFORMATION Should you wish to view the property or require any further information please contact the sole agents.

Stephen Gevertz Joseph Rantor [email protected] [email protected] 07879 628 646 07976 599 374

Lewis & Partners 15/19 Cavendish Place, London W1G 0QE Tel: 020 7580 4333

SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT

LEWIS & PARTNERS LLP FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY WHOSE AGENT THEY ARE GIVE NOTICE THAT:-

1. These particulars do not constitute any part of the offer for sale or contract for sale. 2. All statements contained in these particulars as to this property are made without responsibility on the part of Lewis & Partners LLP or the vendors or lessors. 3. None of the statements contained in these particulars as to this property are to be relied on as statements or representations of fact. 4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the property. The plans are photographically reproduced and therefore not to scale except where expressly stated. The plans, photographs or drawings are for identification purposes only. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale. 7. Any properties or drawings of the relevant property or part thereof or the neighbouring areas may not depict the property or the neighbouring areas at the date a prospective purchaser or tenant inspects the property. Prospective purchasers are strongly advised to inspect the property and neighbouring areas. 8. Lewis & Partners LLP have not measured the property and have relied upon clients information. Therefore Lewis & Partners LLP give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements. 9. All terms quoted are exclusive of value added tax unless otherwise stated. 10. The vendors do not make nor do Lewis & Partners LLP any person(s) in their employment give any warranty whatsoever in relation to this property. 11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. 12. These details were prepared as of OCTOBER 2020 Adrian Gates Photography & Design 07710 316 991 SECURE LONG INCOME ROADSIDE PORTFOLIO 21