ALTON RETAIL PARK PRIME FOODSTORE AND RETAIL WAREHOUSE INVESTMENT WITH RPI LINKED RENT REVIEWS ENTER ALTON, HAMPSHIRE, GU34 2QS

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1 ENTER

2 INVESTMENT SUMMARY Alton is a town in Hampshire, 50 miles from Central London. Affluent population with 44.6% of the 15 minute drive time catchment within the top Acorn Group Affluent Achievers. The subject property provides the only retail warehousing in the town and surrounding area. A modern retail warehouse development providing 32,620 sq ft, GIA. Let to Aldi, Wickes and Pets at Home All 5A1 strength covenants. Very attractive WAULT of approximately 12.0 years (10.9 years including Pets at Home 2025 tenant break option). Aldi benefits from 5 yearly RPI linked rent reviews between 1.5% and 2.5% per annum compounded. Significant RPI related reversion in the Aldi rent in 2019 and potential reversion in the Wickes and Pets at Home rents in 2019 and 2020, respectively. Unrestricted A1 planning consent. Freehold. Potential for the construction of an additional unit. The adjoining site is likely to be developed for A1, A3 and / or Leisure use. We are instructed to seek offers in excess of 10,300,000 (Ten Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.00% (assuming purchaser s costs at 6.70%). An acquisition at the quoting price would see the yield increase to 5.22% in May 2019 following Aldi s RPI linked rent review. Following rental uplifts on the Wickes and Pets at Home OMV rent reviews, to our opinion of ERV, the running yield further increases to 5.37%.

3 LOCATION Alton is an affluent market town located in the county of Hampshire, in the South East of England. The town lies approximately 29 miles north east of Southampton, 26 miles south of Reading and 50 miles south west of Central London. The M3 motorway is 12 miles from the town which connects to the M25 motorway to the north east. The M3 motorway also provides access to the south west and to the M27 motorway which runs east to west along the coast. The town is located along the A31 which provides access to Guildford and Winchester. Alton railway station offers direct train services to London Waterloo, with a journey time of approximately 70 minutes. Other services also run to Woking and smaller surrounding towns Andover Newbury Basingstoke M3 M Winchester Eastleigh Southampton Reading Portsmouth Maidenhead 10 M4 Petersfield Bracknell Chichester M Haslemere HEATHROW Camberley 4 Woking M25 10 Farnborough 5 Aldershot Farnham Guildford A31 Godalming ALTON Slough Staines Littlehampton Bognor Regis Uxbridge Kingston upon Thames Sutton Epsom GATWICK 8 Reigate Crawley 11 Horsham Worthing Hove LONDON 7 M Redhill Croydon M25 Oxted East Grinstead Haywards Heath Brighton Lewes GREENFIELDS AVENUE River Wey OLD OLDHAM ROAD B3349 BASINGSTOKE ROAD SITUATION GILBERT WHITE WAY Alton College WOOTEYS WAY HIGH STREET The subject property is situated approximately 1 mile from the town centre, prominently positioned on the northern side of the A31 (Mill Lane). The A31 connects Alton with Farnham, 10 miles to the north east and with Winchester, 18 miles to the south west. The area surrounding Alton Park to the north and east is predominantly residential, whilst to the west are light industrial, offices and trade counter uses. ADJACENT SITE Alton Museum PLOV ERS WAY EDWARD ROAD ALTON LOWER TURK S TREET ANSTEY LANE Kings Pond ANSTEY MI L LANE Alton Football Club ANSTEY ROAD NEWMAN LANE B3004 MILL LANE The site, immediately to the north east of the subject property, has planning consent for a 66,000 sq ft foodstore. We understand Tesco have recently exchanged contracts to sell the site to a developer and we anticipate further A1, A3 and / or leisure will be constructed. This would further strengthen the area as an attractive retail destination. WILSOM ROAD LONDON ROAD B3004 MONTECCHIO WAY Development Site ALTON RETAIL PARK A31

4 DEMOGRAPHICS Weekly Catchment Expenditure versus CACI Average According to CACI, within the 15 minute drive time catchment: There are 48,871 people, rising to 101,222 people within 20 minutes. Food +5% Catchment CACI Average 44% are classified as Affluent Achievers 105% above the UK average of 21.8%. Mean annual income of 50, % above the UK average. 71% of households are privately owned 11% above the UK average. Pet Food & Pet Care Pet Services +25% +27% Car ownership is 32% higher than the UK average. Unemployment for people aged 16 to 74 stands at 1.4%, significantly less than the UK average of 2.0%. House Repair, Maintenance & Decoration Tools & Equipment for House & Garden +52% +21% Social Grade of Catchment Description Comparison to Base (GB) Average Mean Household Income Farnham AB Higher and intermediate managerial / professional +59% C1 Supervisory / professional +1% C2 Skilled manual workers -13% DE Semi-skilled / unskilled workers / unemployed -42% ALTON Low / Medium High Very High 15 min drive Household Income Profile Bordon Headley 40k to 60k pa 19% above average Catchment = 21.6% Average = 18.1% 60k to 80k pa 49% above average Catchment = 13.0% Average = 8.7% 80k to 100k pa 84% above average Catchment = 8.1% Average = 4.4% 100k+ pa 124% above average Catchment = 10.3% Average = 4.6% Four Marks Whitehill Liphook Liss

5 RETAIL WAREHOUSE PROVISION The subject property provides the only retail warehouse accommodation in Alton and the surrounding area. The lack of retail warehouse supply in the town along with being in a highly accessible location provides Aldi, Wickes and Pets at Home with a competitive trading platform. The nearest retail park to Alton is in Farnham. The scheme has an open A1 (non-food) planning consent and comprises a 36,380 sq ft Homebase let off a rent of per sq ft, a 10,051 sq ft Pets at Home off a rent of per sq ft and a 7,663 sq ft Halfords at a rent equating to per sq ft. FOODSTORE PROVISION Aldi is the town s only out of town foodstore. Waitrose and Sainsbury s both have foodstores in the town centre. Lidl are not represented in the town. The only other substantial food offer is an M&S Foodhall and an Iceland, both located on the main High Street to the south of the town centre. The nearest Aldi store is in Camberley which is circa 35 minutes drive away. The nearest Wickes store is in Basingstoke which is circa 30 minutes drive away.

6 DESCRIPTION The subject property comprises an attractive, modern, purpose built retail warehouse scheme. The units are of steel portal frame construction with part brick, part steel profile clad facade incorporating steel profiled pitched roofs and prominent and highly visible retailer signage. Wickes occupy a unit extending to circa 15,272 sq ft, with an outdoor garden centre to the side. A mezzanine level has been built by the tenants and covers circa 20% of the internal floor space. The mid-terrace unit is occupied by Aldi and extends to circa 15,000 sq ft and has a highly attractive and prominent entrance feature. The third unit comprises circa 6,348 sq ft and is occupied by Pets at Home. This unit also has a mezzanine level that covers circa 25% of the internal floor space. At the front of the development is a tarmacadam customer car park providing 157 parking spaces and 1 trolley bay. This gives a good parking ratio of 1 : 233 sq ft. There is a dedicated service yard situated to the rear and side of the terrace, which is accessed from a dedicated service access road from the A31 (Mill Lane). We believe there may be space to potentially develop an additional small retail unit or pod at the end of the Pets at Home unit, subject to planning consent being granted. SITE AREA Unit Rating 1 B 43 2 D 99 3 A 13 The site extends to approximately 4.16 acres (1.68 hectares), giving a low site cover of 20%.

7 TENURE TWITCHENS The site delineated in red is held freehold. This is provided for indicative purposes only. ROAD PLANNING 35 The property benefits from an unrestricted A1 planning consent. A copy of the planning consent can be provided on request. ASSET MANAGEMENT 0 S WAY 55 to to Units 1 to 3 Alton Park ED & Ward Bdy There is an opportunity to create an additional A1/A3 unit by extending the terrace on land to the north east of the existing Pets at Home unit, subject to planning consent being obtained. This additional unit could be achieved without the loss of any existing car parking spaces. CR s El Sub Sta MILL LANE Bakers Mill Pond Tks FB 25m 50m 75m CR Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1:1250

8 TENANCIES The scheme is fully let to three market leading 5A1 retailers and benefits from a long weighted average unexpired lease term of 12.0 years (10.9 years including the Pets at Home 2025 tenant break option). Unit Tenant GIA (sq ft) Lease Start Term (years) Expiry Date Break Option Next Rent Review Current Rent (p.a.) Current Rent (psf) ERV (p.a.) ERV (psf) 1 Wickes Building Supplies Ltd 15,272 09/05/ /05/ /05/ , , Aldi Stores Ltd 15,000 09/05/ /05/ /05/ , , Pets at Home Ltd 6,348 30/11/ /11/ /11/ /11/ , , , , , COVENANT INFORMATION 100% of the rental income is secured against 5A1 covenants, as rated by Dun & Bradstreet. Wickes is one of the UK s leading DIY retailers and is owned by Travis Perkins plc, a large builder s merchant, which has approximately 1,900 outlets and 24,000 employees. Wickes trades from approximately 230 stores throughout the UK. The most recent accounts for Wickes Building Supplies Limited are as follows: Year Ending Sales Turnover Pre-Tax Profits/ Loss Net Worth 31/12/2016 1,213,269 65, ,109 26/12/2015 1,104,950 60, ,992 D&B Rating 5A1 Pets at Home is the UK s leading pet supplies retailer with more than 370 stores and 6,000 employees. Within their stores they also operate Vets 4 Pets a veterinary care practice and the groom room offering dog grooming and microchipping. The most recent accounts for Pets at Home Ltd are as follows: Year Ending Sales Turnover Pre-Tax Profits/ Loss Net Worth 31/03/ ,726 81, ,310 26/03/ ,697 79, ,138 D&B Rating 5A1 Aldi is one of two leading global discount supermarkets with over 10,000 stores in over 18 countries. They currently trade in excess of 650 stores in the UK and have plans to increase their store portfolio to 1,000 by The most recent accounts for Aldi Stores Limited are as follows: Year Ending Sales Turnover Pre-Tax Profits/ Loss Net Worth 31/12/2015 7,705, ,621 2,073,988 31/12/2014 6,893, ,584 1,948,445 D&B Rating 5A1

9 RENTAL COMMENTARY Good quality locations, especially in the South East of England, have seen strong levels of tenant demand in recent years. The lack of available sites and the high levels of consumer spending in the more affluent catchment areas has resulted in increasing rental levels. DIY Units The DIY market is particularly strong at present, with good trading performances from established occupiers, being Wickes, B&Q and Homebase, and increased competition following Bunnings acquisition of Homebase in We would highlight the following recent relevant rental transactions: er Town Size (sq ft) Rent (pa) Rent (per sq ft) Year Wickes Burgess Hill 21, , Q Wickes Christchurch 18, , Q Wickes Kingston 25, ,600* Q B&Q St Albans 45,000 1,080, Q Wickes Ashford 28, , Q Aldi The unit let to Aldi is subject to a lease with five yearly upwards only rent reviews equivalent to the increase in RPI over the relevant period of between 1.5% and 2.5% per annum compounded. The Office for Budget Responsibility forecast that RPI will be in excess of 2.5% per annum in 2018 and Assuming the 2.5% cap is reached, and based on the actual RPI figures for years 2015, 2016 and 2017, the rent will increase to 249,624 per annum ( per sq ft) at the May 2019 rent review. Conclusion Based on the recent rental evidence, we are of the opinion that the property benefits from a significant potential rental reversion. * This rent was agreed at review, increasing from per sq ft. Wickes also agreed a 15 year reversionary lease. Smaller Units A number of comparable letting transactions for units, of circa 7,000 to 10,000 sq ft, in the South East of England are provided below: er Town Size (sq ft) Rent (pa) Rent (per sq ft) Year Hobbycraft Farnborough 7, , Q Tapi Hove 10, , Q DFS Ashford 10, , Q Tapi Slough 9, , Q Tapi Ashford 8, , Q1 2016

10 VAT The property has been elected for VAT, however, it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 10,300,000 (Ten Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 5.00% (assuming purchaser s costs at 6.70%). An acquisition at the quoting price would see the yield increase to 5.22% in May 2019 following Aldi s RPI linked rent review. Following rental uplifts on the Wickes and Pets at Home OMV rent reviews, to our opinion of ERV, the running yield further increases to 5.37%. FURTHER INFORMATION Please contact: Wilkinson Williams LLP Heathcoat House 20 Savile Row London W1S 3PR Miles Marten Tel: Mobile: m.marten@wilkinsonwilliams.co.uk Jack Lloyd Tel: Mobile: j.lloyd@wilkinsonwilliams.co.uk 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. Descriptions 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. October Designed and produced by Creativeworld Tel: