INVESTMENT OPPORTUNITY Grantham North TRSA A1, Gonerby Moor, Grantham, Lincolnshire NG32 2AB

Prime Trunk Road Service Area • Income guaranteed by plc • Unrestricted RPI rent reviews • Very low site coverage (9.78 acres)

INVESTMENT SUMMARY

Description Tenure & Tenancy Proposal

• A self-contained trunk road service area located • Let in its entirety to MOTO Hospitality Ltd. • Offers sought in excess of £12,865,000 (Twelve in a prime position on the A1 Full Compass Group PLC guarantee. This offers a Million Eight Hundred and Si xty Five Thousand Standard and Poors rating of ‘A’ with a 2014 Pounds) reflecting an attractive net initial yield • Situated in the heart of Lincolnshire, 5km north of turnover of £17.058bn and profit of £1.147bn of 7.00% having allowed for purchaser’s costs Grantham of 5.80%. • The property is let on a 25 year lease without • Central pavilion housing WH Smith, Costa and break options from May 2000, giving an , a BP Petrol Station and a unexpired term of 9.6 years Travelodge Hotel • Current passing rent of £952,768 per annum Guaranteed by • Adjacent to Downtown that comprises Boundary Mill Stores, which is an out-of-town department • Unrestricted RPI uplifts reviewed annually with Compass Group plc superstore, industrial dist ribution units and the next uplift on the 1st April 2016 Downtown Garden Centre • Freehold Unrestricted RPI rent reviews Exceptionally low site cover MM

M6 LEEDSLEEDS

DOONNCCAASTTEERR LIIVERPOOL 19 A529 HOLYHEAD MANCHESTERMANCHESTER SHEFFIELD A55 A158 M6 M1 A523 GRANTHAAMM NOTTIINGHHAM A52 A17 A458 A1 21A BIIRMIINGHAM COVENTRY A11 ABERYSTWYTH 19 4A 16 A483 A49 M1 M11 LOCATION M5 M40 FELFELIIXXSSTTOOWWEE GLOUCESTER OXFORD

Location Communication

Grantham North Trunk Road Service Station (TRSA) is Grantham North TR SA benefits from excellent located at the junction of the A1 and B1174, 5 km north road communications being situated adjacent to SHEFFIELD

of the Lincolnshire market town of Grantham. Newark the A1 at the Gonerby Moor junction. This is the GONE RBY L G ANE R E on Trent is located 20 km (12 miles) to the north along UK’s principal A-road that in 2014 had an average A D T

A

O the A1, Nottingham is 40 km (25 miles) to the west via daily flow of 37,032 cars per day (Department for R N

N R D the A45, Cambridge and London are located 106 km Transport) providing access from London to many O O A T A O

G R D N H (66 miles) and 183 km (114 miles) to the south via the of the major conurbations in East Anglia, the I BEL TO L N G I L H LA A N E A1(M) respectively. North East and the wider UK motorway network.

A1

Situation B 1 17 4 A52 The property is situated on the junction where the A1 A1 meets the Great North Road (B1174) in Gonerby B1174 Moor, which provides access immediately onto the A1

in both northerly and southerly directions. MOTO SERVICES GRANTHAM

D The main entrance to the TRSA is shared with the ROA DYSART G R Downtown development that includes Boundary Mill E A T N Stores, but can be accessed from adjacent roads that O R T T F H I disperse from the Junction of the A1 and the B1174 R R O D A

D E

BO H interchange roundabout. UN M T IL DA C L R S Y T A OR ES S

T

T H O BE L R B VO IR P LONDON 1 1 E RO 7 A 4 D R

O

A

D

1 2 3 4 5 6 7 8 9

1 Sharmans Agricultural AM NTH 2 BP Petrol Station GRA 3 Travelodge Hotel 4 17 4 Grantham B1 Distribution Development Site 5 Boundary Mill Stores 6 Downtown Distribution 7DLS Plastics AD 8Downtown RO TH Garden Centre OR T N 9 Brakes EA GR

Grantham North TRSA

ON LOND

A1

LD FFIE SHE SITUATION DESCRIPTION

Grantham TRSA first opened in 1983 and provides a self-contained service area. The site is accessed via a shared entrance with the Adjacent to Downtown Downtown development or via the Great North Road (B1174). The site is built around a single-storey central pavilion housing that comprises Boundary traditional franchised services, such as WH Smith, , Burger King and a Mill Stores Department cafeteria/restaurant operated as The Eat & Drink Company. The pavilion also provides Superstore, industrial facilities for motorists including WCs, showers, internal and external seating areas, units and garden ATMs and an amusement arcade. The TRSA also houses a BP petrol filling station that centre provides its own retail space, ancillary office accommodation and a 40 bedroom Travelodge hotel. The site is laid out to provide a large volume of car, coach and in particular lorry parking. Downtown is adjacent to the subject property and comprises Boundary Mill Stores, which is an out of town department superstore offering quality fashion and homeware brands, industrial distribution units and Downtown Garden Centre. The land either side of the TRSA is currently on the market as future development sites. The land to the south of the site has planning consent for a new distribution warehouse totalling 214,881 sq ft (19,963 sqm). Site The property is situated on a site with an area of approximately 3.96 hectares (9.78 acres).

Low site coverage (9.78 acres) ACCOMMODATION

The property has been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice on a Gross Internal Area basis as follows:

Main Building – Main Building – Main Building – Main Building – Total Burger King MOTO Costa Coffee WH Smith Fuel Payment Office Block GIA Travelodge – 115.7 sq m 1,023.7sq m 91.7 sq m 159.9 sq m 48.0 sq m 60.3 sq m 1,499.3 sq m 40 Bedrooms (1,245 sq ft) (11,019 sq ft) (987 sq ft) (1,721 sq ft) (517 sq ft) (649 sq ft) (16,138 sq ft)

Tenancy The property is let and occupied by MOTO Hospitality Ltd on a full repairing and insuring lease with a guarantee from Compass Group PLC (S&P Credit Rating of A) for a term of 25 years from 12th May 2000 without breaks. There is therefore in excess of 9.6 years unexpired. The current passing rent of £952,768 per annum exclusive is subject to annual, unrestricted, upward only increases in line with 100% of the retail price index, with effect from the 1st April every year. The rent review mechanism takes the passing rent and multiplies it by the percentage change in the RPI index over the preceding 12 months, always using the reference index figures for the month of November. Since the start of the lease, the average annual increase has been 2.94% per annum. The retail price index forecast for 2015 is 1.10% (Source: Bloomberg). As at 9th October 2015, the 10 year swap was trading at 3.02%. Tenure The property is held freehold.

MOTO Hospitality Limited Compass Group PLC The UK’s leading operator. They A world leading food service and support services occupy 45 service stations throughout the UK and employ organisation, which operates in 50 countries and employs over 6,000 staff. The name MOTO was adopted in May 2001 over 470,000 people worldwide. The company provides when Granada rebranded following the demerger of the catering at a variety of events around the globe including ultimate parent company earlier in 2001, Granada Compass exhibitions, conferences and sporting occasions, and serves PLC, into Compass Group PLC and Granada Media. an estimated 4 billion meals per year. Universities Superannuation Scheme Ltd (USS) has Compass Group PLC has a Standard and Poors rating of ‘A’ Let to MOTO Hospitality Ltd, announced it has reached a definitive agreement to acquire and an outlook of Stable. 100% interest in the Moto Group, the largest motorway A summary of the financial performance over the last three guaranteed by Compass service station operator in the UK. USS is one of the largest years is as follows: pension schemes in the UK with over £38bn under Group plc Compass Group management. 30/09/2012 ( £) 30/09/2013 ( £) 30/09/2014 ( £) PLC Further information can be found on their website: Turnover 16,905,000,000 17,557,000,000 17,058,000,000 www. moto-way.com Pre-Tax Profit 789,000,000 721,000,000 1,147,000,000

Further information can be found on their website: www.compass-group.co.uk

TENANT COVENANTS Investment Rationale Trunk Road Service Area well located in a prime position on the A1

Leased to MOTO Hospitality Limited for approximately 9.6 years

Full Compass Group PLC guarantee, ‘A’ S&P credit rating

Freehold

Annual upward only unrestricted RPI reviews

The yield profile rises annually as follows:

Year Passing Rent NIY %

2015 £952,768 7.00

2016 £975,634 7.17

2017 £1,005,879 7.39

2018 £1,036,257 7.61

Unexp Address Date Acres Rent pa Price £ Yield Comments 2019 £1,067,552 7.84 Term

Woolley Edge Motorway August 2014 30 £2,534,215.99 11 years £35,100,000 6.8% Purchaser – Orchard Street 2020 £1,099,792 8.08 Service Station Doncaster North Motorway August 2014 15.69 £1,400,023.58 11 years £20,500,000 6.4% Purchaser –CBRE Global Investors 2021 £1,133,005 8.32 Service Station Pease Pottage Motorway January 2011 6.25 £515,057 14 years £8,850,000 5.5% Purchaser –BAE Systems Pension Fund 2022 £1,167,222 8.58 Service Station 2023 £1,202,472 8.83

2024 £1,238,787 9.10 INVESTMENT MARKET 2025 £1,276,198 9.38 * On the basis of the 10 year RPI swap rate. PROPOSAL

We are seeking offers in excess of £12,865,000 (Twelve Million Eight Hundred and Sixty Five Thousand Pounds) . A purchase at this level reflects a net initial yield of 7 %, after allowing for purchaser’s costs of 5.8%.

EPC R ating VAT Web Access Service Pavilion: C-64 The property has been elected for VAT. www. cushmanwakefieldinvestmentsales.co.uk/cw/grantham Office: D-86 Travelodge: B-46 OUR TEAM

William Prewer Nicholas Dufeu Lyndsay Barnes Cushman & Wakefield LLP E: william. prew er@ cushwake.com E: nick. dufeu@ cus hwake. com E: lyndsay.barnes @cushwa ke.com 43/45 Portman Square T: +44 (0) 207 152 5459 T: +44 (0) 207 152 5230 T: +44 (0) 207 152 5295 London W1A 3BG

October 2015 MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Production by PlusArt 0115 972 4000