OCTAGON RETAIL PARK HANLEY, STOKE-ON TRENT

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1 Octagon Retail Park Stoke-on-Trent 1 WELL SECURED RETAIL WAREHOUSE OPPORTUNITY OCTAGON HANLEY, STOKE-ON TRENT CHARTERED SURVEYORS

2 Octagon Retail Park Stoke-on-Trent 2 INVESTMENT SUMMARY Etruria Road, Hanley, Stoke on Trent, ST1 5RR Highly prominent and accessible retail warehouse and leisure park fronting Etruria Road within Hanley, on the edge of Stoke-on-Trent city centre. The property comprises four elements providing 8 units with a total floor area of 10,597 sq m (114,067 sq ft). Car parking ratio of 1:286 sq ft. Freehold. Open A1 non-food and D2 leisure consent. The scheme is well let and benefits from an average weighted unexpired lease term of 11 years and 9.7 years including breaks. STOKE-ON-TRENT Significant asset management angles. The total current rent passing is 1,766,248 per annum ( 8.52 to per sq ft). Postcode: ST1 5RR Grid Reference: SJ We are instructed to seek offers in excess of 21,520,000 (Twenty One Million Five Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.76%, rising to 8.00% through a fixed increase in July 2013, assuming purchasers costs of 5.80%.

3 Octagon Retail Park Stoke-on-Trent 3 LOCATION Stoke-on-Trent lies within the county of Staffordshire, approximately 64 km (40 miles) north west of Birmingham, 48 km (30 miles) south of Manchester and 257 km (160 miles) north west of London. Stoke-on-Trent provides an extensive urban area population of 260,000 persons (2001 census) extending to 612,000 persons within 20 km of the city centre, ranking the town 26 out of the PROMIS Centres. Stoke-on-Trent has excellent communications being easily accessible from the A500, which runs north to south through the heart of the city, providing a direct link to the M6 motorway. Stoke-on-Trent is also situated at the convergence of the A34, A50, A52 and A53. Direct train services run to London Euston, with a journey time of 1 hour 45 minutes.

4 Octagon Retail Park Stoke-on-Trent 4 SITUATION A530 CREWE SANDBACH A533 A34 A523 LEEK A53 MORRISONS FESTIVAL HEIGHTS KIDSGROVE A500 WESTON A500 A53 CHEDDLETON PC WORLD A51 A525 M6 NEWCASTLE UNDER LYME STOKE ON TRENT A525 A520 A52 FESTIVAL DFS A53 COBRIDGE ROAD OCTAGON CENTURY SAINSBURY S MARSH STREET (A5006) A51 A53 A51 A34 FULFORD A50 FESTIVAL LEISURE PARK ETRURIA ROAD (A5010) GENTING CASINO TESCO EXTRA MARKET DRAYTON M6 STONE The property is situated in an accessible and highly visible location fronting Etruria Road within Hanley, on the edge of Stoke-on-Trent City Centre. Hanley is the principal town and commercial centre within the Stoke-on-Trent conurbation know as The Potteries which provides the main concentration of retailing, including strong retail warehouse provisions and the 561,000 sq ft Potteries Shopping Centre. Octagon Retail Park lies in close proximity to Century Retail Park and Festival Retail Park, which contain a number of national retailers including Argos Extra, B&Q, Boots, Mothercare World, Next and Toys R Us. In addition Sainsbury s, Morrisons and Tesco all have foodstores in the locality.

5 Octagon Retail Park Stoke-on-Trent 5 DESCRIPTION Octagon Retail Park was developed by Morrison Developments in The scheme provides a purpose built retail warehouse and leisure park comprising 8 units totalling a gross internal area of 114,067 sq ft with customer car parking. Units A1 and A2 sit on the western boundary of the site; units B&C provide a standalone unit with excellent prominence onto Etruria Road; Units D1&2, currently a bingo and casino unit, flank the southern boundary of the site also with excellent prominence alongside Etruria Road; Units E to H comprise a linear terrace of three retail warehouse units constructed towards the north east corner of the site. The buildings are of steel frame construction with a mixture of lightweight cladding panels, curtain walling and brickwork/ blockwork elevations with lightweight metal roof cladding. Internally, the units are fitted out to the individual tenant s specification. All the units, other than Unit E, benefit from mezzanine floors. Unit E has an eaves height of 6 metres sufficient to accommodate the installation of a mezzanine, subject to planning. There is a tarmacadam surface car park, which provides 398 spaces, providing a ratio of 1:286 sq ft. The site area extends to approximately 2.98 hectares (7.35 acres), providing a low site cover of 35%.

6 Octagon Retail Park Stoke-on-Trent 6 ACCOMMODATION Unit Use Ground Floor Ground Floor Mezzanine Mezzanine sq m sq ft sq m sq ft A1 Retail 2, , ,423 A2 Retail , ,139 B/C Retail , ,102 D1 Leisure 1, , ,997 D2 Leisure 1, , ,410 E Retail ,089 F Retail , ,297 G/H Retail 1, , ,364 Total GIA 10, ,067 PLANNING The property has the benefit of an Open A1 non-food planning consent, with the exception of restrictions applied to Unit B&C and units D1&2 which have a D2 use. Outline planning for the original scheme was granted by City of Stoke on Trent in 1997, for a leisure, non-food retail, hotel and pub/restaurant development. Unit B&C is subject to the following use restrictions: Not to be used for the sale or storage of food, drink, clothing, footwear, books, toys, audio-visual entertainment media or chemists goods; all except where the sale is ancillary to the principal permitted retail use of the premises. Copies of the relevant consents are available on request. COBRIDGE ROAD (A53) NEW CENTURY STREET CENTURY OPEN A1 NON-FOOD OPEN A1 WITH RESTRICTIONS ETRURIA ROAD (A50) D2 This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds.

7 Octagon Retail Park Stoke-on-Trent 7 GROUND CONDITIONS ENVIRON carried out a Phase 1 Environmental Survey of the property in January The report concluded that the risk of any environmental liability associated with ground conditions at the site is considered to be low whilst it remains in its current use. A copy of the report is available on request. TENURE Freehold. TENANCY DETAILS The property benefits from an average weighted unexpired lease term of 11 years to expiries and 9.7 years to breaks. All leases are drawn on full repairing and insuring terms with 5 yearly upward only rent reviews as follows: Area Unit Tenant GIA sq m sq ft Lease Start Lease Expiry Rent Review Rent ( pa) Rent ( psm) Rent ( psf) Comments A1 BHS Ltd 2,736 29, July July July , Fixed increase at 1st RR to 584,880 pa A2 Next Group Plc 725 7, Nov Nov Nov , RR Capped at 161, pa Service Charge Cap linked to RPI B/C CS Lounge Suites Ltd , Sept Sept Sept , D1/2 Mecca Bingo Ltd 2,866 30, Mar Mar Mar , Lease permits use D2, A1 or A3 subject to consent. A change from D2 to another approved use triggers an immediate rent review to the higher of existing or new use. E Starplan Furniture Ltd , June June June , Tenants break in 2 June 2014 Tenants break option subject to 75,000 penalty. F Mamas & Papas 695 7, Sept Sept Sept , Tenants break in 19 Sept 2014 (Retail) Ltd G/H JJB Sports Plc 1,643 17, Mar Mar Mar , Total 10, ,067 1,766,248

8 Octagon Retail Park Stoke-on-Trent 8 TENANTS FINANCIAL INFORMATION Unit Tenant Company Number D&B Rating Year End Sales Pre-Tax Profit (loss) Net Worth A1 BHS Ltd A2 28/08/10 794,883,000 ( 7,238,000) 2,519,000 A2 Next Group Plc A1 29/01/11 188,400, ,300,000 1,667,000,000 B&C CS Lounge Suites Ltd A1 31/12/10 62,302, ,263 8,556,187 D1&2 Mecca Bingo Ltd A1 31/12/10 213,466,000 41,047, ,109,000 E Starplan Furniture Ltd NI A1 30/04/11 15,697, ,820 13,230,103 F Mamas & Papas (Retail) Ltd A1 03/04/11 99,819,000 (95,000) 8,027,000 G&H JJB Sports Plc A4 30/01/11 362,894,000 (181,365,000) 10,100,000 29% 30% 18% Income by D&B Rating Income by Unexpired Term 18% 23% 82% 5A1 3A1 3A4 2A years years

9 Octagon Retail Park Stoke-on-Trent 9 ASSET MANAGEMENT The introduction of BHS and Next has seen Octagon Retail Park significantly improve as a trading location and it is considered that in the medium term the scheme will continue to strengthen with the introduction of further open A1 non food retailers. The following angles are identified as key opportunities: Enhance tenant mix through reletting of units E to H to open A1 non-food retailers. Pod/A3 Development on car park, subject to planning. Change of use on units D1&D2 to Class A1 retail use providing significant reversion, subject to planning. Improve profile of retail park through re-orientation and inclusion of DFS unit. New A1 unit adjacent to Unit E, subject to planning. VALUE ADDED TAX The property has been elected for VAT purposes. It is anticipated any sale will be treated as a Transfer of a Going Concern.

10 FESTIVAL HEIGHTS FESTIVAL PARK LEISURE SCHEME FESTIVAL OCTAGON CENTURY GENTING CASINO STOKE ON TRENT CITY CENTRE

11 Octagon Retail Park Stoke-on-Trent 11 RETAIL WAREHOUSE PROVISION WITHIN THE LOCALITY Hanley forms the main retailing location within Stoke-on-Trent. In particular, the retail warehousing surrounding the roundabout junction between the A53 and the A5010 totals approximately 500,000 sq ft. Retail Warehouse provision within the locality includes; Festival Retail Park (owned by PRUPIM) comprises approximately 208,500 sq ft of Open A1 non-food accommodation. Principal occupiers include Next, New Look, Outfit, Mothercare World, Argos, Boots, B&Q and Toys R Us. Festival Park is considered a quasi fashion park which is reflected in the rents that have been achieved: In 2009 Brantano agreed per sq ft at rent review and new lettings to both The Outfit and New Look were agreed on turnover rents thought to be in the region of per sq ft. In 2007 Next took the former Apollo 2000 unit paying per sq ft. Festival Heights Retail Park (owned by Legal & General) adjoins Festival Retail Park, comprises approximately 90,000 sq ft. The park has predominantly a bulky goods consent. Tenants include Esporta, Currys, Halfords, Harveys and Pets at Home. The rental tone for the park is currently per sq ft although historically rents agreed in 2006 reached per sq ft. Century Retail Park (owned by Standard Life) is located opposite the entrance to Octagon Retail Park and provides approximately 45,500 sq ft of Open A1 retail warehousing. Staples occupy 12,866 sq ft and are currently paying per sq ft. PC World occupies a solus unit opposite Festival Retail Park. The unit which totals 18,777 sq ft of Open A1 non-food accommodation, is owned by clients of Cushman & Wakefield Investors. DFS occupy a 20,000 sq ft unit next to Octagon Retail Park. Sainsbury s, Morrisons and Tesco all occupy large format stores within the locality. PROPOSAL We are instructed to seek offers in excess of 21,520,000 (Twenty One Million Five Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.76%, rising to 8.00% through a fixed increase in July 2013, assuming purchasers costs of 5.80%.

12 Octagon Retail Park Stoke-on-Trent 12 CHARTERED SURVEYORS Cortex Partners, 7 Cork Street, London W1S 3LH. Further Information: For further information please contact the vendor s sole selling agents; Jonnie Ray T: E: jonnie@cortexpartners.co.uk Tim Cuzens T: E: tim@cortexpartners.co.uk James Welch T: E: james@cortexpartners.co.uk Misrepresentation Act 1967 Cortex Partners, for themselves and the vendors of the property whose agents they are, give notice that: 1. These particulars are a general outline only for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract: 2. Cortex Partners cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions of use and occupation and other details contained herein and therefore prospective purchasers must not rely on them as statements of factor representations and must satisfy themselves as to accuracy: 3. Cortex Partners or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property: 4. Rents and prices quoted may be subject to VAT in addition: 5. Cortex Partners will not be liable in negligence or otherwise for any loss arising from the use of these particulars: 6. No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn: 7. Cortex Partners have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard March 2012