D0342 DBA Square Portfolio_A4_stage 3 6/2/07 14:29 Page 1 SQUARE 5 PORTFOLIO D0342 DBA Square Portfolio_A4_stage 3 6/2/07 14:29 Page 3 Square Portfolio contents Bakewell 6-13 Buckingham 14-21 Buxton 22-29 Leicester 30-35 Syston 36-43 Proposal 44-46 Square Portfolio M62 M1 M18 M61 M6 MANCHESTER LIVERPOOL M60 A6 SHEFFIELD M56 BBUXTONUXTON BBAKEWELLAKEWELL A A6 1 M6 DERBY NOTTINGHAM 6 4 TELFORD East M1 A 8 Midlands 3 M54 A Airport A5 SYSTON NORWICH LEICESTER PETERBOROUGH M69 A6 BIRMINGHAM M6 A1 4 1 1 A A A46 14 M42 A6 A14 NORTHAMPTON A1 M5 M40 A5 M50 M1 M11 BUCKINGHAM STANSTED A40 GLOUCESTER LUTON 2 A1 A34 OXFORD M25 LONDON M4 M4 BRISTOL INVESTMENT SUMMARY • A portfolio of 5 pedestrianised retail assets comprising 3 boutique shopping centres, a high street unit and a neighbourhood shopping centre. • Freehold. • Total area of 5,333.43 sq m (57,410 sq ft) leased on full repairing and insuring terms to 72 tenants on 78 leases. • Well balanced lease expiry profile with 28.89% of the income expiring within 5 years, 35.40% for between 5 and 10 years and, 35.71% in excess of 10 years. • Low zone A rentals ranging from £134.23 zone A per sq m (£12.47 zone A per sq ft) to £514.64 zone A per sq m (£47.81 zone A per sq ft) excluding the Leicester high street unit at £667.38 zone A per sq m (£62.00 zone A per sq ft). • Current passing rental of £956,001 per annum. • Estimated rental value of £1,082,026 per annum. • Significant asset management potential to enhance income and capital value. • Average weighted term certain of approximately 8.87 years. • Strong tenant demand as evidenced through the entire portfolio being 100% let. 4 D0342 DBA Square Portfolio_A4_stage 3 6/2/07 14:30 Page 5 Square Portfolio SALE PROPOSAL CAPITAL ALLOWANCES Offers are invited for the entire issued share capital of As at 31 March 2007 the pool of capital allowances the UK registered Willowlake Properties Limited available is calculated to be £242,974. (Company registration number 1787705). The vendor Further information is available upon request. intends to repay any inter company loans prior to the completion of the sale. VAT The company accounts, for the period ending VAT is not payable on the purchase of shares. 31 December 2006, are available on the DBA web site: www.dbaprop.co.uk. The only activities of this company FUNDING is the investment of the assets within this portfolio as Indicative funding terms are available upon request. detailed in the tenancy schedules. The historic base cost of the portfolio, adjusted for taper relief, is £6,864,753. SQUARE INCOME PROFILE The purchase of the issued share capital will give rise to a stamp duty charge of 0.50%. PURCHASE PRICE Our client is seeking offers for the company based upon a property value in excess of £17,385,000. This would reflect an inherent corporation tax liability of £3,156,000 based upon corporation tax of 30%. The vendor will Term certain (years) reduce the purchase price by £1,578,000 (50% of the uncrystalised tax liability). Expiry in less than 3 years 21.32% The net purchase price payable is £15,500,000 (fifteen Expiry between 3 years and 5 years 7.57% million five hundred thousand pounds) and reflects the Expiry between 5 years and 10 years 35.40% following yield profile net of purchase costs at 2.00%: Expiry between 10 years and 15 years 22.49% Initial: 6.05% Expiry in excess of 15 years 13.22% Reversion (May 2008): 6.30% Reversion (May 2010): 6.82% Equivalent: 6.76% True Equivalent: 7.05% SUMMARY TENANCY SCHEDULE Accommodation Income ERV Address Tenure Tenant/Tenancies sq m sq ft Per Annum Per Annum Portland Square Freehold Leased to 17 tenants on 19 leases. 896.21 9,647 £224,883 £238,331 BAKEWELL Tenants include Help The Aged Ltd Derbyshire and G T News Ltd Cornwall Place Freehold Leased to 18 tenants on 19 leases. 1,485.84 15,994 £253,343 £288,565 High Street Tenants include Chiltern Farm BUCKINGHAM Chemicals Ltd, British Red Cross Buckinghamshire Society, TUI UK Ltd, Clark Howes Accountants and Aylesbury Vale District Council Cavendish Arcade Freehold Leased to 17 tenants on 18 leases. 1,161.75 12,505 £263,825 £313,125 The Crescent Tenants include Pizza Express BUXTON (Restaurants) Ltd Derbyshire 15 Market Street Freehold Leased to Toni & Guy (South East) 264.77 2,850 £42,000 £48,055 LEICESTER Ltd with surety from Mascolo Ltd Leicestershire Town Square Shopping Centre Freehold Leased to 20 tenants on 21 leases 1,524.86 16,414 £171,950 £193,950 SYSTON Leicestershire TOTAL 5,333.43 57,410 £956,001 £1,082,026 5 D0342 DBA Square Portfolio_A4_stage 3 6/2/07 14:30 Page 6 INVESTMENT SUMMARY • Located in the heart of the affluent market town of Bakewell. • Adjacent to the tourist information office and the town’s main supermarket. • Freehold. • Prime boutique pedestrianised open air shopping centre. • 13 ground floor retail and restaurant units. Angel House provides 9 self contained first and second floor office suites. • Total accommodation of approximately 896.21 sq m (9,647 sq ft). • Significant active management opportunities to enhance income and capital value. • Low zone A rentals ranging from £367.92 ZA per sq m (£34.18 ZA per sq ft) to £514.64 ZA per sq m (£47.81 ZA per sq ft). • Current rental income of £224,883 per annum. • Estimated rental value of £238,331 per annum. • Strong rental growth prospects as evidenced by a recent letting in the town at £772.66 ZA per sq m (£71.78 ZA per sq ft). • Balanced lease expiry profile with 21.66% between 5 and 10 years term certain and 62.88% for in excess of 10 years term certain. Portland Square BAKEWELL Derbyshire 6 D0342 DBA Square Portfolio_A4_stage 3 6/2/07 14:30 Page 7 PORTLAND SQUARE, BAKEWELL, DERBYSHIRE LOCATION Peak District Bakewell is a historic market town situated in the National Park Offices 9 1 county of Derbyshire on the west bank of the 6 A River Wye. D R The town is located approximately 250 km W B O Riv (155 miles) to the north west of London with U er W L X ye T S O Sheffield approximately 27 km (17 miles) to the A N B north east and Manchester approximately 60 km R D D R N (37 miles) to the north west. A O 6 I T A T Renowned for both its Bakewell Pudding and one S T LL HI COO M of the oldest markets in the area, Bakewell is the AGSHAW B B BATH ST EMARKET S S E R ANCHOR D N SQ IDG only town in the Peak District National Park and is A L ST BR H NORTH CHU TER S C RCH ST WA T a popular tourist destination providing a base to R ST U BY H C AN R R G explore the numerous attractions and the T K T M iv S IN S e G r H A W 55 C T y B e 0 C R L surrounding landscape. H U U 5 OFT T R B T O C Y Y S NB E A R GR L C D O D R A K R D O H A S COMMUNICATIONS AS D T Y ON A M 6 Bakewell is well located situated on the A6 which provides a direct link to Manchester in the north west. The M1 motorway (Junction 29) is 24 approximately 21 km (13 miles) to the east. A642 HHUDDERSFIELDUDDERSFIELD Macclesfield mainline railway station provides M66 M62 A629 A628 frequent journeys to Manchester Piccadilly and 18 37 M60 8 A1(M) London Euston with fastest journey times of A62 A629 36 MANCHESTERMANCHESTER 12 A628 A 35A 27 minutes and 116 minutes respectively. 616 2/35 M67 24 A61 M1 M18 Manchester International Airport is located 61 km M60 A57 SHEFFIELDSHEFFIELD 5 34 (38 miles) to the north west, Sheffield City Airport A624 32 A6 Sheffield City M56 Airport Peak District approximately 35 km (22 miles) to the north east 1 A631 National Park 62 A523 A A6 with Birmingham International Airport approximately 19 A5004 23 A61 A619 A34 A6 A537 MACCLESFIELDMACCLESFIELD 9 30 109 km (69 miles) to the south west. A61 A CHESTERFIELDCHESTERFIELD A537 A6 619 BUXTONBUXTON A617 A60 18 A34 6 A617 A523 BAKEWELLBAKEWELL 29 A54 A53 A5 A6 1 A53 5 MMANSFIELANSFIELD A38 A34 LEEKLEEK 28 A60 16 A5 A610 A500 A53 23 M1 A52 A34 STOKE-ON-STOKE-ON- 38 TRENTTRENT A A52 26 NOTTINGHAMNOTTINGHAM A515 M6 A50 A52 15 A 25 3 DERBYDERBY 4 to M1 7 P L O A H E N I I S S L K G R I T R L R & E E R E & A Y C S K O M S M O D M R O R T E L R R A R S L F R A T H I O A G M F A J T N G L G C H E F G M U O C H L A E C E I P L OT B E H U H TAXI & T P T REE MARKET ST RE FOODSTO OP EXTRA P CO- O T F KET MAR S ER I N SUP I (59) (ACTUAL) M T E S H I (NOT MONDAYS) C R U E O MARKET SITE H T T S SERVICE YARD T YSHIRE O E O L T M N B B E L A A R R T C U G PPERTOWN & TOOLS I S H D T HARL H A EYS N L FR N T ESH I S E S B S O O Z E F A I T F T I HARDWA D R T E R O L/W E R A & L F S P R L O CAFE A F B N W AK H A EW H I E R / L L E BA S L R & E R R O ES O T M W R M/WR E R S R C G S M E A T FA HE P R S C S C W BUT R PUDDING AKE ENT B PORTL U & AND SQUARE FAC W DER SEARS OF BAKEWELL TORY S O E I G & B R LY) A H (PEDS ON KER N I CARDS & GIF S C TS O A J S R R S V H ? E J E E S S T W T / C E E E N S Y O L Y E C N C O & Y G S Y L I D T A C STEWA T D H RTS R E S T W N W F C W A L R U G S O P A S E E O P R H P D S T O CAR R U C A 5 DS & GIFT M S S H E S - O H L L S R R L S O & H C Y E 4 T R C I W T E S S N E W D S C N G U U E E O N L I E E I K H C E M D A M S A A L C E W U R ILLIA S R M HILL B T G S & D N E M E M E E F N R O I A Y R P TU R I N P P A 3 F N T E F W T A E T O R L E N U E O S T D F K D H E E L O BOOKMA H KERS H R A N A A A J C I H T G C T G P A P B B C C / A 4 E BAKEWELL R T G 1 2 A O A ITIONAL A TR D Y 3 O T Y R B C S S T IPS S B E FISH & CH WATER LANE M E L O N U E A N C L 2 C I O A B T I (PEDESTRIANS ONLY NO V E EH C F ICLES E P R S R R I F W Y E V A G A G O EXCEPT FOT P E V T R ERMI HOLDER V S 10AM - J 4PM) M E Y 1 E L T R L A I R D F H E N S STONE R A E F E Y E P BLOOME S U R F M C A D 6 E A N O AT WES L