West Shopping Centre Unique Freehold Foodstore Investment Opportunity c. 69 years unexpired to Asda Stores Ltd West Swindon Shopping Centre Tewkesbury Way, Swindon

Postcode Grid Reference SN5 7DL SU 11967 84482

05 Executive Summary 06 Location 07 Socio-Economic Profile 08 Situation 09 Swindon Foodstore, Retail & Leisure Provision 10 Description 12 Floorspace 12 Tenure 13 Tenancy 14 Covenant Information 14 Planning 15 Estimated Rental Value 16 Asset Management 16 Environmental Considerations 17 VAT 17 Proposal 17 Acquisition Structure 18 Full Tenancy & Sub-Tenancy Schedule 20 Contacts

2 West Swindon Shopping Centre | SWINDON West Swindon Shopping Centre is anchored by a c. 88,600 sq ft Asda foodstore and offers a further 34,337 sq ft of non food retail and service floorspace.

SWINDON | West Swindon Shopping Centre 3 Swindon's food provision has a strong geographical bias to the north and east meaning the subject property benefits from very limited competition within a 15 minute drivetime.

4 West Swindon Shopping Centre | SWINDON Executive Summary

■■ Swindon is a major commercial ■■ The lease is subject to 5 yearly open centre in the county of market reviews and the rent geared to a strategically positioned in the heart of low proportion of ERV (57.2% weighted the M4 corridor approximately 128 km across the income). (80 miles) west of London and 48 km ■■ We consider that the 2006 review (30 miles) east of Bristol. settlement reflecting £18.50 psf on the ■■ The town's primary catchment is foodstore (providing c. 71% of the total estimated to be in the region of 467,000 income) represents a very affordable level people and significant further residential and low base for future rental growth. We development has been targeted for the believe current market value to stand in area in the medium term. the order of £24.00 psf.

■■ The West Swindon Shopping Centre is: ■■ The current lease structure represents –– held Freehold an excellent opportunity to unlock –– extends to around 13,038 sq m significant value moving forwards (140,353 sq ft) GIA through negotiations with Asda. –– is anchored by a c. 88,600 sq ft Asda foodstore

■■ The entire property is let on an over- riding lease to Asda Stores Ltd producing Offers are sought in excess of an annual rent of £1,397,275 pa and has £35,500,000, subject to contract and 69 years remaining on the lease. exclusive of VAT, for the Freehold interest in this property. This reflects an initial capital payment of £28,400,000 together with a further 'top-up' payment at settlement of the forthcoming review in December 2011, based on an initial yield of 4.65% and purchasers costs of 5.8%.

SWINDON | West Swindon Shopping Centre 5 Location

Swindon is a major commercial centre located in the county of Wiltshire, in south east . Strategically situated in the M4 Corridor, the town is approximately 21 km (13 miles) south east of Cirencester, 48 km (30 miles) east of Bristol, 64 km (40 miles) west of Reading and 128 km (80 miles) west of London. A429

CHELTENHAM BICESTER A44 M1 The town benefits from excellent communications with Junctions GLOUCESTER A40 15 and 16 of the M4 Motorway located only around 6.5 km (4 miles) M40 A41 A48 M11

to the south and 6 km (3.75 miles) south west of the town centre A417 respectively. Other major arterial routes in the area include the OXFORD A419 CIRENCESTER A419 to Cirencester and Stroud, the A420 to Oxford and the A436 A420 M25 A449 to Marlborough. SWANSEA A433 A420 M25 A429 A419 M48 DIDCOT M40 NEWPORT Swindon benefits from strong rail links with direct services to A470 SWINDON M4 M49 A46 London Paddington and Bristol Templemeads offering fastest A34 A48 SLOUGH M4 journey times of around 56 and 40 minutes respectively. CARDIFF M32 A350 LONDON CHIPPENHAM BRISTOL A346 M4 READING CLEVEDON A4 BRACKNELL Primarily due to these exceptional transport links, Swindon boasts a NEWBURY M3 BATH M5 M25 very strong commercial base with manufacturing and distribution WESTON-SUPER-MARE A38 A339 A33 making up the main employment sectors (nearly half) within the WOKING A3 A338 workforce. Major employers in the town include Honda, BMW/ BASINGSTOKE A37 GUILDFORD Mini, Motorola, Dolby Labs, Zurich Financial Services, Nationwide ANDOVER M23 A361 A303 Building Society, British Telecom, Inland Revenue and WH Smith. A36 A31 A39 M3 BRIDGEWATER

BARNSTAPLE SALISBURY WINCHESTER A303 TAUNTON SHAFTTESBURY A36 A361 EASTLEIGH A272 A350 A3 A358 A354 A338 A39 YEOVIL M27 A303 A386 SOUTHAMPTON A377 A31 WATERLOOVILLE A27 A30 M5 A259 BRIGHTON A37 PORTSMOUTH BOGNOR REGIS A35 A348 A30 LYME REGIS A35 EXETER DORCHESTER BOURNEMOUTH NEWPORT

A376 A354 LAUNCESTON A386 EXMOUTH SwindonWEYMOUTH boasts an extensive primary A39 A388 A38 A30 catchment population in the region WADEBRIDGE TORBAY of 467,000 people and has been NEWQUAY A38 PLYMOUTH identified by the Government as a ST AUSTELL A390 major population growth area. KINGSBRIDGE TRURO REDRUTH 6 West Swindon Shopping Centre | SWINDON A30

A394 FALMOUTH

PENZANCE 2009 HOUSEHOLDS BY ACORN GROUP

9.4 Flourishing Families 8.0

15.1 Secure Families 14.0

18.7 Blue Collar Roots 8.1 Socio-Economic Profile 5 10 15 20 2009 HOUSEHOLDS BY ACORN GROUP CARS OR VANS BY HOUSEHOLD (2001 CENSUS) Swindon has an urban population in the region of 9.4 155,000 people (Focus) and an extensive primary Flourishing Families 8.0 1 car or van catchment estimated to be in the region of 467,000 15.1 Secure Families 2 cars or vans people (Promis). The town has been identified by 14.0

18.7 the Government as a major population growth area Blue Collar Roots 0 10 20 30 40 50 and in 2007 a target of at least 35,000 new homes to 8.1 5 10 15 20 UK Swindon be constructed before 2027 was set. CARS OR VANS BY HOUSEHOLD (2001 CENSUS) Indeed based on this proposed development it has been forecast that there will be a significant increase in Swindon's urban population over 1 car or van A419 Swindon 5 minute contour this period to around 250,000 people (Gov UK). Swindon 10 minute contour 2 cars or vans GROUNDWELL INDUSTRIAL Swindon 15 minute contour Currently, according to CACI, approximately 77,953 people live within a PURTON 0 10 20 30 40 50 10 drivetime of the subject property and this figure increases to around HAYDON WICK SOUTH MARSTON UPPER STRATTON 166,802 people within a 15 minute drivetime. The statistics shown above UK Swindon A4311 give an indication as to the affluence and make-up of these inhabitants A420 SPARCELLS STRATTON ST MARGARET (10 minute drivetime). PEATMOOR CHENEY MANOR HILLMEAD LYDIARD MILLICENT SWINDON MIDDLELEAZE HAWKESWORTH TRADING ESTATE SHAW WESTMEAD WESTLEA DORCAN M4 BRIDGEMEAD GRANGE PARK A3102 A419 FRESHBROOK A4259

WOOTTON BASSETT BROOME MANOR A3102

WROUGHTON M4

A4361 CHISELDON

A346

SWINDON | West Swindon Shopping Centre 7 Situation

The West Swindon Shopping Centre is positioned approximately 3.2 km (2 miles) to the west of Swindon town centre, at the junction of Whitehill Way and Tewkesbury Way amongst the heavily populated residential suburbs of Toothill, Westlea, Eastleaze, Grange Park, Freshbrook, Shaw, Ramleaze, Middleaze and The Prinnels. The location has exceptional road communications with Junction 16 of the M4 only 2.4 km (1.5 miles) to the south west via the B4534 Whitehill Way and A3102 Great Western Way and the town centre easily accessible via Tewkesbury Way A3102 to the east.

D A 4534 O B R

E G Y

A D

I W

Immediately adjacent to the subject R L

B IL

N H

O E

R IT

 R H A W property, on the western side of the N C Orbital Shopping Park C 5 L site, is the Local Authority owned Shawridge A N A419

G

Leisure centre S

T T E C W OR O Link Centre which incorporates K N Y T E A E O S W W B L N U IL A R H C Y E R Y T W I E 4 H S sports halls, a swimming pool, A C W Y E N 4 3 T 5 E 4 V B I Haydon Wick R theatre and library. To the north, on D A E L Upper Stratton W the other side of Whitehill Way, is the corton crescent Stratton L Shawridge Leisure Park comprising IL EH IT St Margaret Whitehall Way H W Moredon 34 a 6 screen Cineworld Multiplex 45 B RIV ENHALL ROAD B4 A 55 S Pinehurst 3 H I A4311 T N Cinema, Tenpin Bowling Alley, EW G KE T SB O Lower Stratton A420

UR N

Y W W The Link Centre AY A

‘Village’ Hotel (DeVere) and three Y 6 restaurant units. Greenbridge Roughmoor Retail & Leisure Park B45 53 AY TEWKE TH W SBUR HEA Y WAY TON The food and non food offer at ROW B West Swindon Shopping Centre, Te A419 wkesbury Shaw E RIV 3 together with the community and Y D ESA TOK w S ay BRUNEL leisure facilities combine to provide Westmead SHOPPING CENTRE WEST SWINDON an excellent District Centre and the SHOPPING CENTRE A 2 principal retail and leisure offer for 1 the area. 7

A3102 A4259 SWINDON

M4 Toothill

16 A3102 8 A4361

M4

8 West Swindon Shopping Centre | SWINDON  Swindon Foodstore, Retail & Leisure Provision

Swindon’s catchment currently incorporates 8 foodstores of over 3,251 sq m (35,000 sq ft). The nearest store and only one within a 5 minute drivetime of the subject property is the J Sainsburys at Bridgemead around 1.2 km (0.75 miles) to the east. As the plan shows there is a strong geographical bias to the east and north of the town centre and lack of any real competition to the south and west within a 15 minute drivetime of the subject property.

11. J Sainsburys The main components of Swindon’s non food retail offer are The c. 69,000 sq ft Brunel Shopping Centre, Greenbridge Retail & Leisure Park and Orbital Orbital Shopping Park Bridgemead – SN5 7YD C 5 A419 (1.2 km to the east) Shopping Park. The remainder of the provision comprises largely out of town bulky goods space. We have set out below summary information 22. J Sainsburys 4 c. 38,500 sq ft for these three assets and identified their positioning adjacent. Haydon Wick Brunel Centre – SN1 1LF (Town Centre) (3 km and approx. 10 minutes drive to the east) Upper Stratton The Brunel Shopping Centre – SN1 1LF Stratton 33. Tesco ■A■ This scheme dominates the town centre and was originally St Margaret c. 163,000 sq ft (81,842 sq ft sales) Moredon Ocotal Way – SN1 2EH constructed in 1975 and then refurbished in 1994. The centre offers Pinehurst A4311 (3.1 km and over 10 minutes drive to the east) Lower Stratton A420 over 51,000 sq m (550,000 sq ft) of retail space, with anchors including 4. Morrisons 6 4 House of Fraser, M&S, Sainsburys, Argos and Boots. c. 35,000 sq ft Greenbridge Roughmoor Retail & Leisure Park Thames Avenue – SN25 1QQ (Neighborhood Store) (4 km and over 15 minutes drive to the north east) B Greenbridge Retail & Leisure Park – SN3 3SG A419 55. Asda ■B ■ Shaw 3 c. 146,000 sq ft This park, was developed in the early 1990s and is situated only a Orbital Shopping Park – SN25 4BG BRUNEL short distance to the east of the town centre. It extends to around Westmead SHOPPING CENTRE (c. 5.5km and around 15 minutes drive to the north east) WEST SWINDON 27,313 sq m (294,000 sq ft) with key retail tenants including Currys, PC SHOPPING CENTRE A 6. Sainsburys 2 6 1 c. 75,000 sq ft World, Next, JJB, Argos and Boots. The leisure element of the scheme 7 Stratton Margaret – SN3 4EW (c. 7.2 km and over 15 minutes drive to the east). comprises Empire Cinema (12 screens), Gala Bingo, Nuffield Health &

A3102 A4259 Fitness and several restaurant units. 77. Proposed Morrisons & Apollo Cinema SWINDON (c. 47,000 sq ft and 20,000 sq ft respect.) Regent Circus Development – Town centre M4 (Will be 3 km and approx. 10 minutes drive to the east) Toothill Orbital Shopping Park – SN25 4BG ■C ■ 16 88. Sainsburys This District Centre is anchored by the adjacent Asda Wal-Mart A3102 c. 35,000 sq ft 8 A4361 Borough Fields Shopping Centre, Wootton Basset – SN4 7AX Superstore and includes main tenants such as M&S, Homebase, (c. 5.6 km and c. 15 minutes drive to the south west) New Look, Boots and Next with a number of other ‘service type’ retailers. It was constructed in 2002 and arguably serves M4 We consider the combination of foodstore and leisure offer at the subject property to be unique within the Swindon Provision.

SWINDON | West Swindon Shopping Centre 9 Description

The West Swindon Shopping Centre occupies a Freehold site extending to approximately 6.25 hectares (20.5 acres). Constructed in two phases in 1980-1981 and 1982, Phase 1 comprises the foodstore, 12 shop units, various kiosks/stalls, a restaurant and office space within one enclosed building. Phase 2, outside the covered for the foodstore at ground level. We ■■ Ceiling repairs over main sales floor scheme comprises 11 shop/commercial understand that this relates to ground floor ■■ Check-out refurbishment units including a dentist’s surgery and space prior to an extension by the tenant, ■■ Chiller refurbishment covering the former service yard (creating Post Office together with a public house, ■■ New kiosk & News/Magazine shop an additional c. 1,737 sq m/18,700 sq ft together with various new fittings public lavatories and childrens play area. of retail floorspace). Further comment in this regard and concerning the provisions ■■ New internal (Mall) Asda signage The main building sits centrally within the site resulting within the review clause have been set out ■■ Various works to storage areas in two main parks, to the north and south, as well as a in the Tenancy(s) Section. ■■ New compactor area third parking area to the south west. A total of 987 spaces ■■ Supplementing of existing high racking provide a parking ratio of 1:13.2 sq m (142 sq ft) based The Mall has three separate pedestrian on the Centre's GIA. To the east of the foodstore, fronting entrances, one each from the main north in side warehouse Corton Crescent, is a Petrol Filling Station incorporating and south car parking areas and one from Phase 2 16 pumps under a canopy with two drive-thru pay kiosks. the external shopping precinct (Phase 2). The Built in 1982, these 11 retail units and Public Mall itself is configured in an L-Shape with House (Harvester) surround an uncovered, Phase 1 the foodstore on the eastern side and shop paved precinct area and total around 1,453 The foodstore extends to approximately 8,235 sq m units to the west. Segregated rear servicing sq m (15,643 sq ft) GIA. With the exception (88,644 sq ft) including 641 sq m (6,899 sq ft) of first floor (split into two areas) is available from Corton of the public house all have glazed staff space. The Mall Shop units (13) provide c. 1,239 sq m Cresent whilst a shared service yard is frontages and rear servicing facilities. Customer access is available ITZA (13,340 sq ft ITZA) of retail space and there is also available to the rear of the shop units. Furthermore there is also around 84 sq m from two roundabout junctions, around 1,012 sq m (10,893 sq ft) in the form of a first floor A c. £2.8m refurbishment was undertaken (907 sq ft) of first floor office space. positioned to the north and restaurant above these units (access available via stairs or on the main store at the end of 2010. The south of the property, on the public lift). works were carried out over a 4 month B4534 Whitehill Way and B4006 It should be noted that for the purposes of the reviews in period and emphasise Asda's commitment Tewkesbury Way respectively. 1991, 1996, 2001 and 2006, following Counsel Opinion, a to the location. We have highlighted some These main roundabout floor area of 6,497 sq m (69,941 sq ft) has been assumed of the summary works adjacent: junctions together with Corton Crescent and Link Avenue ensure excellent traffic flow across and around the scheme, which is key given the main provisions of car parking to both the north and south of the building.

10 West Swindon Shopping Centre | SWINDON Main opening hours: Mon – Fri: 8am – 10pm Sat: 8am – 9pm Sun 10am – 4pm

Asda 24 hour

Whitehall Way

ay w The Link Shawridge Centre leisure centre

wkesbury Te NHS Building

fiveways Link avenue roundabout

corton crescent Whitehall Way

N

Doctors surgery

SWINDON | West Swindon Shopping Centre 11 Floorspace Tenure

We have set out below our understanding of the actual floor areas as measured at the last review in 2006. The property is held Freehold. The references to First, Second, Third and Fourth Premises mirror those set out in the lease which splits Asda's demise into four distinct areas.

Lease Description sq m sq ft FIVE WAYS gia itZA gia itZA

First Premises Ground Floor Food Sales 7,594 – 81,745 –

CORTON CRESCENT First Floor Staff 641 – 6,899 –

Ground Floor Unit Shops 2,254 1,239 24,266 13,340 PFS WHITEHILL WAY First Floor Restaurant 1,012 – 10,893 – LINK AVENUE

G13 G14

G12

Sub-total 11,501 1,239 123,803 13,340 G11

G10 VACANT

G9 E G8

HEALTH CENTR VACANT

PRICELESS

SHOES

MOTOSAVE

NEWSAGENTSMARTINS G7

Second Premises Bank 141 79 1,519 848 G6 LINK AVENUE GARDEN GOODS G5 G3-G4 ASDA THE LINK CENTRE G16 ENTRANCE G2

PHARMA G1

NEWS & MAGS CY Public House TBC – TBC – ASDA CRESCENT PUB THE HARVESTER B1 COUNTRYWIDE

ESTATE AGENT B2 NATWEST

WHITEHILL WAY BANK B3 HK97 CHINESE CORTON B5 B4 TAKEAWAY RJ HOLMES DOMINOS Sub-total 141 79 1,519 848 OPTICIAN B6 ESTATEHAYWOODS AGENT PIZZA

HAIRDRESSINGPARTNERS B7

CORAL

B8 RACING

B9 LADBROKES BRITZ FISH Third Premises N/A Undeveloped Land. B10 & CHIPS

FORUM

TEWKESBURY WAY THE

DOCTORS Fourth Premises Unit Shops 1,312 790 14,124 8,503

First Premises First Floor Office Space 84 – 907 – WAY ASHINGTON Second Premises

Sub-total 1,396 790 15,031 8,503 Fourth Premises

This plan is published for identification purposes only. Any site boundaries are indicative only and should be checked against Title Deeds. TOTAL 13,038 2,108 140,353 22,691

NB: for the purposes of the review the foodstore (incl. Ground Floor Food, 1st Floor Staff and 1st Floor Restaurant) is assumed to have an area of 8,091 sq m (87,099 sq ft). Third premises represents undeveloped land.

12 West Swindon Shopping Centre | SWINDON Tenancy(s)

The entire property is let on a single lease to Asda Stores Ltd We have set out further information concerning the terms of the lease and the assumptions under the rent for a term of just under 99 years from 1st September 1980, review clause, together with our understanding of the expiring on 31st August 2079. There is a tenant option to renew breakdown of the total rent as at the review in 2006. A on expiry for a further term of 26 years. The current income copy of the lease is available on request. from the property stands at £1,397,275 pa, as at December A full schedule of the current sub-tenancies has been 2010, and the lease is subject to 5 yearly upward only reviews included on page 18. with the next being due on the 1st December 2011.

Demise Divided into Four ‘Premises’ as identified on the adjacent plan. First Premises (Rents Receivable) Repairs Fully repairing and insuring. Deemed Store – GIA 69,941 sq ft £18.50 psf £1,293,908 Alterations Non-structural do not require consent. Any other additions, alterations etc plus Fixtures & Fittings 7.50% £97,043 require LL’s consent (not to be unreasonably withheld). £1,390,951 Alienation Tenant may underlet the development in parts subject to general controls of undertenants paying full market rent, the leases containing service charge Addition as per Deed of Variation 0.60% £8,346 £1,399,298 liability, all with landlord’s approval. Bakery Extension – GIA 1,086 sq ft £18.50 psf £20,091 Other Tenant covenants to keep open (major store) and provide access to the first premises within specified times. Plus Fixtures & Fittings 7.50% £1,507 Tenant covenants to maximize rent receivable on the Second, Third and Fourth Rent Payable (Gearing) 25.00% £21,598 £5,399 premises in a balanced development. Discount for Keep Open Clause -1.25% of £1,404,696 -£17,559 Tenant covenant’s to grant a lease of part of the Third Premises as a Public House/restaurant. Restaurant – GIA 10,259 sq ft £18.00 psf £184,662 £184,662 Tenant covenants not to agree any rent review without LL’s written approval (but is bound by decision of an Arbitrator or expert). Offices (first floor staff) –GIA 6,899 sq ft £18.50 psf £127,631 Rent Payable First Premises 57.41% of aggregate of rents receivable with the following Plus fitted finish 7.50% £9,572 £137,203 assumptions: Unit Shops – ITZA 13,340 sq ft £39.75 psf £530,265 - major store has fixed area of 69,941 sq ft GIA less for 25 Year Lease Assumption 10.00% -£53,026 £477,239 - major store ERV increased by 0.6% - Unlet shops ERV assumed let on FRI terms and divided as at Kiosks & Mall Concessions £76,400 rent review less 7.5% allowance for management of concessions (£35,000 pa) -£2,625 £73,775 - 35 yr lease term (minimum) for the major store - 25 yr lease for the separate unit shops Petrol Filling Station £60,000 £60,000 - 25% of ERV on store extensions Sub-total £2,320,016 Second & 80% of the lessee’s income (defined as yearly ground Rent Payable (Rounded) 57.41% £1,332,500 Third Premises rents and licence fee’s receivable) Second Premises (Rents Receivable) £46,900 80.00% £37,520 (less reasonable cost of recovering bad debts) (excluding insurance rent and service charge) Fourth Premises 15% of the lessee’s income (defined as yearly rents and Fourth Premises (Rents Received) £181,700 15.00% £27,255 licence fees received) Based on the most recent submitted tenancy info by the sub-undertenant. (less the reasonable cost of recovering bad debts) (excluding insurance rent and service charge) Rounded Total £1,397,275

SWINDON | West Swindon Shopping Centre 13 Covenant Information Estimated Rental Value

Originally founded as Associated Dairies and Farm The next review is due on the 1st December 2011 and we have set out on the adjacent Stores Ltd in 1949, ‘Asda’ became a subsidiary of page some comparable evidence relevant to the foodstore element of the income. the American retailer Wal-Mart, the world’s largest Having considered the deals most recently agreed on shop unit space within the First and Fourth premises at the retailer in 1999. The business currently trades over subject property, we believe these give an excellent indication as to appropriate ERVs for these elements of the income. 400 locations in the UK, including 25 ‘super-centres and employs over 125,000 people. Based on this evidence we consider that an achievable settlement value at the 2011 review should be in the order of £1,745,000 pa, primarily based on £24.00 per sq ft on the foodstore. We have set out our view of ERV for the respective elements of income below:

Asda Stores Ltd are considered a ‘very low risk company’ by Experian who First Premises (Rents Receivable) rate them with a Delphi Score of 100. We have set out summary financial Deemed Store – GIA 69,941 sq ft £24.00 psf £1,678,584 information below: plus Fixtures & Fittings 7.50% £125,894 31/12/2009 31/12/2008 31/12/2007 £1,804,478

Turnover/Sales £19,818,594,000 £18,569,839,000 £16,738,670,000 Addition as per Deed of Variation 0.60% £10,827 £1,815,305

Pre-Tax Profit £571,111,000 £497,176,000 £341,677,000 Bakery Extension – GIA 1,086 sq ft £24.00 psf £26,064 Plus Fixtures & Fittings 7.50% £1,955 Total Current Assets £5,211,158,000 £2,652,441,000 £2,500,729,000 Rent Payable (Gearing) 25.00% £28,019 £7,005 Total Shareholder’s Fund £4,016,720,000 £2,759,588,000 £2,639,750,000 Discount for Keep Open Clause -1.25% of £1,822,310 -£22,779

Further information is available on request. Restaurant – GIA 10,259 sq ft £24.00 psf £246,216 £246,216

Offices (first floor staff) –GIA 6,899 sq ft £24.00 psf £165,576 Plus fitted finish 7.50% £12,418 £177,994

Unit Shops – ITZA 13,340 sq ft £41.00 psf £546,940 Planning less for 25 Year Lease Assumption -10.00% -£54,694 £492,246 Kiosks & Mall Concessions £90,000 Planning consent for Phase 1 was granted on 17th January 1978 as less 7.5% allowance for management of concessions (on £35,000 pa) -£2,625 £87,375 part of a wider residential and commercial development in the area. Petrol Filling Station £100,000 £100,000 Subsequent permissions were granted for the construction of the Petrol Filling Station (1980), Phase 2 (1982), an extension to the original Sub-total £2,903,362 superstore with further parking (1980) and ultimately replacement of the Rent Payable (Rounded) 57.41% £1,667,000 Petrol Filling Station (1998). Second Premises (Rents Receivable) £50,000 80.00% £40,000 We understand that the Centre benefits from an open A1 consent without restrictions or caps on the range of goods which can be sold and there Fourth Premises (Rents Received) £235,250 15.00% £35,288 are no restrictions on the total amount of floorspace or the installation of Based on 9,410 sq ft ITZA at £ 25.00 psf mezzanine floors. Copies of the relevant documents are available on request. Rounded Total £1,745,000

14 West Swindon Shopping Centre | SWINDON Foodstore Rental Comparables

TOWN OCCUPIER GIA TRANSACTION DATE OLD RATE RATE COMMENTS sq ft £ psf £ psf SMETHWICK Asda 73,977 RR Aug-10 £11.70 £19.00 Previous rent from A for L agreed in excess of 5 year prior Windmill Shopping Park B66 3EN 450 shared parking spaces as part of Shopping Park BANBURY Sainsbury's 73,352 RR Mar-10 £19.00 £23.00 c. 500 parking spaces and PFS Oxford Road OX16 9XA CAMBRIDGE Sainsbury's 81,983 RR Dec-09 £21.00 £24.00 Plus 10% for fittings. Plus 6.6489% for PFS. Coldhams Lane CB1 3HP 460 parking spaces CHISWICK Sainsbury's 75,569 RR Dec-09 £30.00 £33.25 Plus 10% for fully fitted 31 Essex Place W4 5UT 340 surface parking spaces GLOUCESTER Tesco 51,313 RR Sep-09 £18.00 £22.00 Plus 10% fittings. Quedgeley - Bristol Rd GL2 4PF C. 350 parking spaces LEEDS - COLTON Sainsbury's 67,032 RR Sep-09 £17.50 £21.75 £100,000 pa for PFS Colton Retail Park LS15 9JA 510 parking spaces WALLINGTON Stafford Road SM6 9AA Sainsbury's 60,605 RR Jul-09 £19.80 £23.00 451 parking spaces FOLKESTONE - Park Farm Sainsbury's 68,692 RR Jun-09 £17.70 £21.00 Geared to 40%. 5% part fitted, plus £100k pa for PFS less 10% 81-year term Park Farm Retail Park CT19 5GA 572 parking spaces WESTON SUPER MARE Sainsbury's 73,797 RR Mar-09 £17.00 £21.00 630 parking spaces N. Worle District Centre BS22 6BL HARLOW - Water Gardens Asda 77,004 RR Sep-08 £14.00 £20.05 Previous rent from A for L agreed in July 2001 Southgate CM20 1AN 1,120 parking spaces (decked) BASINGSTOKE Chineham District Centre RG24 8BE Tesco 70,720 RR Sep-08 £18.00 £22.00 Plus 10%; less 2.5% onerous lease terms fittings. WELLING Tesco 71,914 Pre-let Aug-08 N/A £21.00 Being built mid 2010. % yearly RPI increases capped at 3.5% Embassy Court DA16 1TH 256 parking spaces (decked). Tesco paid premium. BIRMINGHAM - KINGS HEATH Sainsbury's 73,572 RR Mar-08 £18.00 £24.66 Demise includes non-food retail, fitness centre and offices Alcester Rd South B14 7PT 502 parking spaces CHELMSFORD Tesco 66,834 RR Feb-08 £14.04 £19.00 523 parking spaces Springfield Road CM2 6QT

SWINDON | West Swindon Shopping Centre 15 Asset Management Environmental Considerations

We would make the following comments: WSP Environmental Ltd undertook a Phase 1 Environmental Assessment on behalf of the vendor in January 2011 and concluded ■■ The current lease structure dictates that the majority of the as follows: income (c. 71%), comprising that occupied by Asda as foodstore floorspace, represents only just over 55% of actual market "…with due regard to the continuation of the current commercial rental value. use, it is the opinion of WSPE that the site represents a low/ ■■ As a result of the extension undertaken by the tenant only medium risk with respect to contaminated land liability issues…" around 85% of the actual foodstore floorspace is currently A copy of this report is available on request. rentalised at each review. On this basis we believe there is considerable value which could be released through negotiations with Asda moving forwards by way of regearing the existing terms or working in conjunction with them as joint Freehold owners. This would also create the opportunity to: ■■ Remove existing gearing assumption on the non food space and undertake more intensive asset management ■■ Consider potential development angles for the currently 'undeveloped' Third Premises ■■ Improve the appearance of the precinct area and general signage for the scheme ■■ Introduce further facilities to benefit customers – childrens play area etc.

16 West Swindon Shopping Centre | SWINDON Vat Proposal

The property has been elected for VAT so it will be payable however it is anticipated that the transaction will be treated as a TOGC.

Offers are sought in excess of £35,500,000, subject to contract Acquisition Structure and exclusive of VAT, for the Freehold interest in this property. This reflects an initial capital payment of £28,400,000 The property is held within a JPUT so as an alternative together with a further 'top-up' payment at settlement of the the units in this vehicle could be acquired. Further forthcoming review in December 2011, based on an initial information is available on request. yield of 4.65% and purchasers costs of 5.8%.

SWINDON | West Swindon Shopping Centre 17 Current Tenancy & Sub-Tenancy Schedule

First Premises Foodstore Trading As Sq Ft / lease Start lease Expiry current current ERV ERV comments gearing R rent pa rent psf pa psf Asda Ground Floor Asda 69,941 01/09/1980 31/08/2079 £1,293,908 £18.50 £1,678,584 £24.00 Actual floor area c. 81,745 sq ft plus Fixtures and Fittings - 7.50% £97,043 n/a £125,894 n/a Addition as per lease 0.60% £8,346 n/a £10,827 n/a Asda Bakery Extension - 1,086 01/09/1980 31/08/2079 £20,091 £18.50 £26,064 £24.00 plus Fixtures and Fittings - 7.50% £1,507 n/a £1,955 n/a Rent Payable 25.00% £5,399 n/a £7,005 n/a Deduction for Positive Covenant to Trade -1.25% -£17,599 -£22,779 Asda First Floor (restaurant above shops) McDonalds 10,259 01/09/1980 31/08/2079 £184,662 £18.00 £246,216 £24.00 Franchise to McD's. Asda Offices - 6,899 01/09/1980 31/08/2079 £127,631 £18.50 £165,576 £24.00 plus fitted finish 7.50% £9,572 n/a £12,418 n/a Asda PFS Asda n/a 01/09/1980 31/08/2079 £60,000 n/a £100,000 n/a Asda Kiosks and Mall Concessions Asda n/a 01/09/1980 31/08/2079 £76,400 n/a £90,000 n/a less 7.5% for management on £35,000 (mall concessions) -7.50% -£2,625 -£2,625 Sub-total 81,286 £1,842,737 £2,411,115

Unit sub-LET Tenants Trading As ITZa lease Start lease Expiry current Actual ERV ERV comment Shops sq ft R rent pa rent psf pa psf G1/1A Asda Stores Ltd Sound & Vision 1,781 £70,795 £39.75 £73,021 £41.00 Assumed notional rents G2 Asda Stores Ltd Pharmacy 857 £34,066 £39.75 £35,137 £41.00 Assumed notional rents G3/4 Asda Stores Ltd News & Mags 1,720 £68,370 £39.75 £70,520 £41.00 Assumed notional rents G5 Martin The Newsagent Ltd Martins 1,660 02/01/2006 01/01/2011 £72,000 £43.37 £68,060 £41.00 c. 3,000 sq ft of first floor space G6 F Goodwin & A Jackson Motorsave 739 02/01/2006 01/01/2011 £29,199 £39.51 £30,299 £41.00 G7 Priceless Shoes Properties Ltd Priceless Shoes 1,055 11/10/2006 10/10/2011 £42,750 £40.52 £43,255 £41.00 G8 Vacant Available - to Let 761 £31,201 £41.00 G9 The Thomas Cook Group Ltd Thomas Cook 749 25/03/1984 24/03/2009 £23,750 £31.71 £30,709 £41.00 Assumed tenant holding over. G10 Clinton Cards (Essex) Ltd Clintons 754 21/12/2005 21/12/2010 £30,000 £39.79 £30,914 £41.00 Assumed tenant holding over. G11 Vacant Available - to Let 754 £30,914 £41.00 G12 Johnson Cleaners UK Ltd Johnsons 721 02/01/2006 01/01/2011 £28,850 £40.01 £29,561 £41.00 G13 Blockbuster Entertainment Ltd Blockbuster 1,635 12/10/1999 11/10/2014 £56,500 £34.56 £67,035 £41.00 G14 Adam Sheppard & M L Sheppard Hair 2 Go 292 14/05/2008 13/05/2012 £12,000 £41.00 £12,000 £41.00 Estimated area. Sub-total 13,478 £468,280 £552,626 Less 10% for 25 yr lease assumption -10.00% -£46,828 n/a -£55,259 n/a FIRST PREMISES TOTAL £2,264,189 £2,908,482

Second & Third Premises G16 Halifax Building Society Halifax 858 01/09/1980 18/08/2079 £7,500 n/a £7,500 n/a Pub Allied Breweries (UK) Ltd Harvester Pub TBC 01/09/1980 18/08/2079 £40,000 n/a £43,100 n/a second & THIRD PREMISES TOTAL 858 £46,900 £50,000

Fourth Premises B1 Countrywide Estate Agents Countrywide 806 29/09/2009 28/09/2014 £19,250 £23.88 £20,150 £25.00 B2 NatWest plc/Bank Natwest 1,593 TBC TBC £32,580 £20.45 £39,825 £25.00 Asda to confirm terms B3 Tony Tang Esq HK 97 800 TBC TBC £20,000 £25.00 £20,000 £25.00 Asda to confirm terms B4 DP Realty Ltd Dominos Pizza 783 18/04/2008 17/04/2018 £19,500 £24.90 £19,575 £25.00 B5 R J Holmes (Opticians) Ltd RJ Holmes Opticians 722 01/03/2008 28/02/2018 £17,125 £23.72 £18,050 £25.00 B6 Prospect Hospice Ltd Prospect Hospice 810 29/09/2010 29/09/2015 £19,000 £23.46 £20,250 £25.00 B7 Mrs Maria Payne Partners 840 01/06/2008 31/05/2018 £21,250 £25.30 £21,000 £25.00 B8 Coral Racing Ltd Coral Racing 711 06/04/2010 05/04/2020 £25,000 £35.16 £17,775 £25.00 B9 Ladbrokes Betting & Games Ladbrokes 717 25/03/2008 24/03/2013 £17,000 £23.71 £17,925 £25.00 B10 Coach Caterers (Southern) Ltd Britz Fish & Chips 721 01/01/2008 31/12/2017 £17,000 £23.58 £18,025 £25.00 B12 Citizens Online Ltd - 907 01/04/2008 31/03/2011 £8,700 £9.59 £22,675 £25.00 FF sublet to Dentist FOURTH PREMISES TOTAL 9,410 £216,405 £235,250

ROUNDED TOTALS £2,527,000 £3,195,000

18 West Swindon Shopping Centre | SWINDON SWINDON | West Swindon Shopping Centre 19 www.cushmanwakefield.com 43/45 Portman Square London WIA 3BG

For further information please contact:

Justin Houlihan Graham Collison T: 020 7152 5670 T: 020 7152 5140 F: 020 7152 5381 F: 020 7152 5381 E: [email protected] E: [email protected]

Misrepresentation Act 1967 and Property Misdescriptions Act Cushman & Wakefield LLP for themselves and for vendors or lessors of this property whose agents they are, give notice that :

1 The particulars are produced 2 No person in the employment of 3 This property is offered subject 4 Nothing in these particulars 5 Unless otherwise stated, no in good faith, are set out as a the agent(s) has any authority to to contract and, floor areas, should be deemed to be a investigations have been made general guide only and do not make or give any representation measurements or distances given statement that the property regarding pollution or potential constitute any part of a contract. or warranty whatever in relation are approximate and unless is in good condition or that land, air or water contamination. to this property. otherwise stated, all rents are any services or facilities are in Interested parties are advised to quoted exclusive of VAT. working order. carry out their own investigations if required.

20 West Swindon Shopping Centre | SWINDON Swindon | West Swindon Shopping Centre| January 2011 | Ref: 106737