ENTER> PATRIOT DRIVE, MILTON KEYNES, MK13 8PU Prime Retail Warehouse Investment Opportunity

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1 ENTER> PATRIOT DRIVE, MILTON KEYNES, MK13 8PU

2 Milton Keynes benefits from an extensive catchment and shopping population, extending as far as Kettering, Luton, Bedford and Daventry. Milton Keynes is designated as one of the largest growth towns in the UK and is anticipated to become the 16th largest city in the country by The subject property is situated in one of the prime retail warehouse locations in Central Milton Keynes with nearby retailers including Hobbycraft, Halfords, Next Home and Pets at Home. The property is highly accessible, situated close to an arterial route roundabout junction, connecting the with the 09. The unit totals 119,067 sq ft together with an external garden centre and builders yard and car parking for 577 vehicles. The property benefits from a long unexpired lease term of over 18.5 years and is let to the secure 5A1 D&B rated covenant of B&Q plc at a rent equating to per sq ft. There is asset management potential, downsizing B&Q and potentially letting to a foodstore operator, subject to planning or subdividing the unit to create several further units. We are instructed to seek offers for the freehold interest in the property of 32,031,000 (Thirty Two Million and Thirty One Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50%, based on purchaser s costs of 5.80%.

3 Shrewsbury venny bran ARDIFF Henleyon-Thames eston- -Mare n-sea water n Newport PATRIOT DRIVE, MILTON KEYNES Telford Milton Lodlow Keynes is located in Buckinghamshire and has developed into a successful commercial and retailing centre. The town is strategically situated just 2 miles west of Junction 14 of the, 54 miles north Droitwich west of Leominster London and 72 miles south east of Birmingham. Milton Keynes enjoys excellent road communications; the links to both the M6 Great and M40 motorways and the also provides access Malvern Evesham to London and to the Hereford outskirts of Birmingham. 30% of the country s population are within a 90 minute drive of Milton Keynes. Tewkesbury Lichfield Tamworth Milton Keynes also benefits from good rail links Cheltenham with the main railway station providing regular services to Gloucester a large number of destinations including London (36 minutes), Birmingham (55 minutes), Manchester (1 hour 38 minutes) and Edinburgh (4 Stroud hours 40 minutes). Cirencester Chepstow Newport BRISTOL Yeovil Kidderminster Bath Frome Stafford WOLVERHAMPTON BRISTOL Cannock West Bromwich Dudley LYNEHAM Chippenham Trowbridge Warminster Walsall Solihull Salisbury Burton upon Trent BIRMINGHAM A45 A A40 13 Swindon Nuneaton A46 3 A420 A44 Andover EAST MIDLANDS COVENTRY 12 2 LEICESTER M6 Banbury Newbury Winchester Romsey Coalville 11 Loughborough 1 A34 A M A40 A14 Leamington Spa Daventry Oxford 8 Abingdon Basingstoke Eastleigh 7 04 (A427) 16 A41 15a Melton Mowbray Stamford Wellingborough Northampton Bicester Alton A428 MILTON KEYNES Aylesbury Reading Thame Petersfield A4010 Farnham A45 4 A Leighton Buzzard Camberley Corby 3 A6116 Kettering A41 High Wycombe 2 Windsor 13 Slough Bracknell A A6 11 Haslemere Peterborough 10 LUTON St 4 8 Albans A40 Spalding A14 St Neots Bedford Newport Pagnell A428 5 HEATHROW A A Letchworth 9 Hitchin Luton 7 GATWICK St Ives Royston Hoddesdon CITY March Bishop's Stortford Richmond Kingston upon Thames Sutton Croydon Epsom Crawley Harlow LONDON GREAT MONKS ST Redhill Oxted East Grinstead Horsham Haywards Heath B&Q Woolwich MONKS WAY PORTWAY PORTWAY FULMER ST WATLING ST GRAFTON STREET SAXON STRRET DANSTEED WAY PATRIOT DRIVE CHILDS WAY LINFORD WOOD PORTWAY 09 GRAFTON GATE SAXON GATE CENTRAL MILTON KEYNES CHILDS WAY CHAFFRON WAY GRAFTON ST MARLBOROUGH S

4 Milton Keynes was designated a New Town in 1967 and is one of the fastest growing towns in the UK. The town has a primary catchment population of 709,000 people (PMA). CACI predict there are 201,000 and 310,663 people living within a 10 and 20 minute drive time of the subject property respectively. Milton Keynes has been identified by the Government as one of the 3 potential growth centres in the south east (the others being Ashford and the Thames Gateway). The population is anticipated to double in size by 2026 and by 2031 Milton Keynes is estimated to be the 16th largest city in the country. PMA estimate that the shopping population totals 465,000 people, ranking the town 11 out of the top 200 PMA centres. Due to its location and lack of proximity to towns with a comparable and competitive retail offer, it is considered Milton Keynes benefits from a captive catchment which extends far beyond the defined primary catchment area, extending as far as Kettering to the north, Luton and Aylesbury to the south, Bedford and Sandy to the east and Daventry to the west. Milton Keynes also benefits from an affluent catchment population as demonstrated below: Affluence Indicators Milton PMA Regional PMA Retail Top 200 Keynes Centre Average Centre Average AB (most affluent) Social Structure 2001 % adult population Car ownership of 2+ cars % of households Owner occupiers % of households Total in-store comparison retail expenditure 2011 ( m) 1,807 1, Per capita in-store comparison expenditure ,548 2,472 2,392 Per capita retail warehouse expenditure Milton Keynes has attracted a significant amount of investment and employment to the area. Several national and global firms are located in the city; both Volkswagen and Mercedes-Benz have their UK HQs here, Santander is one of the largest employers and Network Rail is relocating its work force here in July, to establish a national hub accommodating over 3,000 staff in new offices close to Milton Keynes station. Other employers in the area of note include The Open University, The Foreign & Commonwealth Office and Unisys. Amazon.co.uk, Coca Cola Enterprises, NYK Logistics and DHL Exel also all have large distribution centres on the outskirts of Milton Keynes, close to both Junctions 13 and 14 of the. Growth in employment from is estimated to be 0.3% per annum, above the PMA average of 0.1% per annum. The quality of employers and large number of managerial and routine based office jobs resulted in total average earnings being 437 per week, above the GB average of 400 per week. TOWCESTER A BUCKINGHAM B&Q 10 minute drive time A minute drive time 00 OLNEY 09 MILTON KEYNES NEWPORT PAGNELL A428 LEIGHTON BUZZARD A6 07

5 B The subject property is situated in a highly accessible location in one of the main retail warehousing pitches within Central Milton Keynes. Access to the property is via Patriot Drive which leads to Grafton Street, a dual carriageway linking to the, close to the roundabout junction connecting to the 09. The 09, which bounds the property to the south, runs east/west across the town and joins the and the. Central Retail Park & Rooksley Retail Park Patriot Drive also provides access to Central Retail Park which has recently been refurbished. Occupiers here include Next Home, Halfords, Dwell, Comet, Hobbycraft and Pets at Home. Opposite this is Rooksley Retail Park. On the opposite side of the 09 to the south, is The Place Retail Park occupied by retailers including Currys, Brantano, Carphone Warehouse, American Golf and McDonald s. The Place Retail Park Homebase (T) Winterhill Retail Park & Cairngorm Retail Park 09 Routeco Retail Park (T) Milton Keynes Shopping Centre CENTRAL MILTON KEYNES B&Q (T) BLETCHLEY 130 Stadium Retail Park IKEA, Asda & DW Sports Beacon Retail Park Rushmere Retail Park Kingston Centre 130 WOBURN SANDS Milton Keynes Station and Milton Keynes Shopping Centre are also in close proximity, being 0.8 miles south and 1.2 miles east respectively. There is also a substantial amount of housing nearby. The majority of retail warehouse supply is located outside the main town centre itself in suburbs including Bletchley and Kingston. Within the town centre there are 2 main retail warehouse locations, of which the subject property is situated in one, which also contains Central Retail Park, Rooksley Retail Park and The Place Retail Park. The other principal pitch is within the Winterhill District, 1.4 miles south east of the subject property, where Winterhill Retail Park, Cairngorm Retail Park and Routeco Retail Park are located. Bletchley lies 4.5 miles south east of the subject property. Here there is Beacon Retail Park, Rushmere Retail Park, an IKEA store, a DW Sports unit, an Asda foodstore and Stadium Retail Park, which is currently under construction. In terms of DIY competition, there is a 36,500 sq ft Wickes unit on Routeco Retail Park and a standalone Homebase unit of 81,675 sq ft located nearby. In Bletchley, opposite Beacon Retail Park there is a standalone 39,400 sq ft unit let to B&Q. The subject property is considered the dominant DIY unit in the town, by nature of it s size, location and the operator.

6 The property was developed in 2005 and provides a modern purpose built retail warehouse unit, totalling 119,067 sq ft gross internal area. There is also an external garden centre area of circa 30,000 sq ft and a builders yard of approximately 20,000 sq ft. The building is of steel frame construction with the main elevations being clad with attractive masonry below microrib cladding panels. Internally the building is fitted to the tenant s specification with the unit benefiting from both an external garden centre area and a builders yard. The main floor is dedicated to retail sales and provides access to both external compounds. The ground floor totals 117,000 sq ft and there is also a first floor amenity area totalling 2,067 sq ft, providing offices and ancillary accommodation. The unit is well configured, virtually exactly to B&Q s ideal warehouse format. Furthermore the frontage to depth ratio allows the unit to be easily subdivided. The scheme is serviced by a demised open tarmacadam surfaced car park, which provides 577 spaces, giving an ample car parking ratio of 1:206 sq ft. The dedicated service yard is situated to the rear of the unit and is accessed separately and segregated from the customer car park. We calculate the site area extends to approximately acres (4.45 hectares), giving a low site cover of 24.86%.

7 The property is held freehold and the site area is delineated right in red. The property is let to B&Q plc on a full repairing and insuring 25 year lease from 21 October The unexpired term is just over 18.5 years, as at March The lease states that at review the property is assumed to have a ground floor gross internal area of 117,000 sq ft and a first floor gross internal area of 2,067 sq ft, providing a total area of 119,067 sq ft. The passing rent totals 2,202, per annum, reflecting per sq ft, with the next rent review being due on 21 October 2015, with 5 yearly upward only rent reviews thereafter.

8 The property was originally granted planning permission in 2004 for the erection of a non-food retail unit (Class A1) including garden centre, bulk store, car parking, landscaping and associated works and construction of a new vehicular and pedestrian access to highway. There is a Section 106 Agreement, which restricts the sale of retail goods to certain goods including (but not limited to) the following, unless prior consent of the Council is obtained: DIY Electrical and gas appliances Furniture Floor coverings Soft furnishings Car parts / bicycles Hobby / craft goods Pets and pet products Office equipment Camping / boating equipment Therefore, we consider the property to benefit from a wide bulky goods consent. The unit can be subdivided into a maximum of 6 units with a minimum gross internal area of 10,000 sq ft. We believe B&Q are happy with their store and have no plans to downsize. However, it is considered in the medium term there may be the opportunity to agree a downsize with B&Q to provide a smaller unit of circa 60,000 sq ft. With the planned expansion and growth of Milton Keynes, we anticipate there being further demand from retailers wanting to gain representation here. We are also aware of demand in Central Milton Keynes from several of the major foodstore operators who could potentially take part of this store, subject to planning. The unit benefits from being well configured and easily subdivisible and the Section 106 Agreement also enables it to be split into 6 units of 10,000 sq ft and over. The garden centre and builders yard present the opportunity to be developed on. There is also ample car parking to cater for increased footfall here.

9 Tenants Covenants B&Q is the largest operator in the UK DIY and gardening market, trading from over 320 stores across the UK. B&Q are part of the Kingfisher Group, the third largest DIY chain in the world, who have extensive operations in Europe and the Far East. B&Q plc, the main trading company for the fascia, has a current Dun & Bradstreet rating of 5A1. We summarise below B&Q s most recent accounts: YEAR ENDING SALES TURNOVER PRE TAX PROFIT NET WORTH D&B RATING (000s) (000s) (000s) 29/01/2011 3,711, ,700 3,656,700 30/01/2010 3,792, ,400 3,476,400 5A1 31/01/2009 3,683, ,700 3,240,400 VAT The property has been elected for VAT purposes. Proposal We are instructed to seek offers for the freehold interest in the above property of 32,031,000 (Thirty Two Million and Thirty One Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.50%, based on purchaser s costs of 5.80%. Paul Wilkinson Tel: Mob: p.wilkinson@wilkinsonwilliams.co.uk Ellie Kirkby Tel: Mob: e.kirkby@wilkinsonwilliams.co.uk Wilkinson Williams, Heathcoat House, 20 Savile Row, London, W1S 3PR MISREPRESENTATION NOTICE Wilkinson Williams LLP give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation or fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in the particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property, this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by an intending purchaser. 7. s of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement of fact. Plans are published for convenience of identification only and although believed to be correct, their accuracy is not guaranteed and they do not form part of any contract. Designed and Produced by Creativeworld. Tel February 2012.